1st Quarter Investor Update

For immediate
release
                            16 April 2009

                          SERABI MINING plc
                     ("Serabi" or "the Company")


              Release of Investor Update for Quarter 1


Serabi announces  that it  has today  issued its  Investor Update  in
respect of the first quarter of 2009 ending 31 March 2009.

Highlights and operating results reported for the quarter were:


  * Production of 1,973 ounces of gold for the quarter from surface
    oxide mining
  * Positive operational cash flow for the quarter
  * Potential for the identification and continued mining of oxide
    gold deposits at Palito
  * Major reduction of costs following cutback of personnel and
    landholding expenditures
  * Geophysical targets at Palito provide principal focus for future
    exploration to increase resources

    Palito - Operating Results (1)
                       2009       2008
                     Q1    YTD    YTD
Mined Ore       t  17,863 17,863 33,022
(per day)          (200)  (200)  (363)
Milled          t  17,580 17,580 32,479
(per day)          (197)  (197)  (357)
Head Grade 23) g/t  3.78   3.78   4.52
Recovery        %   92.3   92.3  88.97
Gold (3)       oz  1,973  1,973  4.985


(1)  Provisional  (2) Ore feed to the process plant  (3)  For 2008
gold production Includes copper and silver credits


The following is  the text  of the Investor  Update.  A  copy of  the
Investor Update can be  accessed by following the  link in this  news
release and is also available from the company's offices or from  the
company's website  - www.serabimining.com.


MANAGEMENT REVIEW

The first quarter of 2009, saw a modest return to positive cash-flow
for the Palito Operation.  Whilst 2008 was dominated by underground
production difficulties, it was in fact a successful year on the
exploration front, where the Company identified over 16 high priority
exploration targets located in close proximity to Palito, as well as
producing its first mining reserve statement.
Following the suspension of underground mine production in late
December 2008 and in order to reduce costs, the Company has
aggressively reduced all manpower in Brazil and London from over 300
employees in mid-2008 to approximately 60 today.  In parallel with
this, the Company has been able to continue processing oxide ore at a
low level during 2009.  As a result, the operation processed on
average some 200 tonnes per day, and produced 1,973 ounces of gold
for the first quarter.  Combined with a significant reduction in
overheads, a stronger US dollar gold price and the continued relative
weakness of the Brazilian Real, this level of gold production has
been able to meet the costs of the Brazilian operation over the first
quarter.
The operating cash surplus has been used to explore for additional
surface oxide resources and it is now our intention to try and
gradually increase oxide gold production further, but only to levels
that are sustainable.
As previously announced, the Directors have been actively pursuing
strategic options for the Company including the sale in whole or part
of its mining and exploration assets.  The Directors are also
pursuing opportunities that might result in an injection of new
capital either into the Company or directly into its Brazilian
operating subsidiary.  Against a background of difficult market
conditions worldwide, it is helpful that the relative operational
success of the first quarter has provided some respite for the
Company whilst a resolution to these issues is sought.
Considering the operational problems of the past two years, where
equipment delays and lack of skilled manpower resulted in the
ultimate suspension of the Palito underground operation, the
Directors are determined to de-risk the business going forwards and
are of the view that before underground operations at Palito are
fully resumed, the following items are satisfied:
1.       A  return to  selective mining  methods, which  would  bring
reduced ounces, but quality ounces yielding the highest margins.
2.       A larger resource and reserve base is established.
Our near term objective is therefore to focus on maintaining and if
possible expand surface mining activities, along with the necessary
exploration to support this in order to at least continue to cover
costs.
In the medium term, and conditional on securing further funding,
additional ore sources are required.  The experience to date has
shown the risks involved in operating from a single mine whilst
covering overheads in such a remote area.  To overcome this a second
and third mine in the Palito district, feeding the central process
plant has always been and remains the medium term objective.  To
achieve this, a detailed investigation of the 16 principal
geophysical anomalies that were identified from the 2008 airborne
geophysical survey is therefore a priority.  These anomalies exhibit
very similar characteristics to the Palito deposit, and their close
proximity to the Palito infrastructure makes them all the more
important.  The Board believes that these anomalies currently
represent most attractive targets for the early identification of
additional resources within the Palito district which in time could
form part of an expanded and more sustainable mining plan. Third
parties that have been visiting Palito have all been intrigued by the
longer term potential and the possibility of securing an operation
producing significantly more than the previous 30,000 - 40,000 oz
AuEq targeted range.  We believe this could be achieved by testing
and proving up these satellites with a budget of around US$2M over
approximately 18 months.
In response to the problems at Palito we have suspended all regional
exploration activity.  The Company has also reduced its land holdings
and thus costs, to 158,000 hectares from over 300,000 hectares.  A
large part of this reduction came from the Pizon area, where the
Company successfully completed an initial screening programme last
year, resulting in the identification of a large number of highly
anomalous drainage catchments.  Notwithstanding these results, we
currently see this area as non-core, and having added significant
value to this district, we are pursuing partners with whom to advance
this project.  Following similar initial exploration programmes
elsewhere, the company has decided to relinquish the Rio Marupa,
Castanheira and Sucuba tenements.


OPERATING REVIEW

As reported in the February 23rd 2009 press release, the company
suspended underground mining activity at its Palito mine at the end
of 2008. However, following from success in mining the near-surface
oxide ores in and around Palito during 2008, initially as a
supplement to the underground sulphide ore, the Palito operation is
now mining and treating approximately 6,000 tonnes of oxide ore per
month.
The mined oxide ore only requires treatment through the existing CIP
plant and as a result, the flotation circuit is currently idle.
Whilst such near-surface oxide resources are currently limited, the
Directors' are confident that an oxide mining operation can continue
for at least the next few months.
Having taken the decision to suspend underground mining activity, the
company aggressively reduced manpower in Brazil.  By the end of the
quarter, the company retained only 60 employees in Brazil.  This
reduction in overheads has meant the gold production from oxides has
been able to more than meet the costs of the Brazilian operation for
the year-to-date.  The resulting operating cash surplus is being used
for exploration to increase surface oxide resources, and it is our
intention to continue to identify additional oxide resources and if
sustainable, gradually increase oxide gold production further.  The
process plant has capacity to treat over 700 tonnes per day of oxide
ore, and whilst we do not currently envisage such throughput levels,
capacity is already in place to support higher production rates as
and when adequate medium term resources can be identified.
In addition to gold production from oxides, the company is also now
assessing a number of other local, near surface sulphide ore sources
to further supplement gold output.  Such ore could be exploited by
surface mining activities but will require processing using the
flotation plant at Palito in order to liberate the gold from the
associated copper mineralisation prior to CIP treatment.
During the first quarter, the Brazilian Real remained weak against
the US dollar relative to last year, which combined with the strong
US dollar gold price has had a significant, positive effect on
operating margins.  As a result, we are investigating all options to
increase surface mining and maximize cash-flow for the Company,
whilst we continue to explore options to move the business forward.
With respect to the Palito underground mine, the operation finally
suspended ore production at the end of December 2008, at which time
the mine was placed on care and maintenance, with a view to
re-commence operations during the year.  The mine remains fully
accessible and available for a re-start with all infrastructure
maintained.
As previously stated, the success of the oxide mining combined with a
better gold price and a favourable Brazilian exchange rate, has
allowed the Company more time than originally anticipated to review
and consider a number of options for the longer term operations at
Palito.
Delays in the arrival of much-needed equipment required to achieve
the 2008 budget, resulted in a need to defer mine development in the
early part of 2008 to concentrate on ore production.  However, by
September 2008 it had become clear that even with increased rock
moving capability it was not financially practical to continue to try
and recover the development metres lost during the early part of the
year.
In order to re-establish underground mining at Palito to levels of
production similar to those originally targeted for 2008, requires a
phase of long-term development, bringing with it a significant
working capital requirement.  Following the operating problems of
2008 and taking into account other issues, such as suitable manpower
and skilled labour, fleet maintenance and continuity of power supply,
we have taken the opportunity to further review the mining options.
As a result current operational objectives are:

 1. in the near term to  maintain and  seek to grow surface oxide ore
    production and resources.
 2. assess the viability of surface mining of sulphide ore sources
    (which would require restart of flotation plant and  production
    of a copper-gold concentrate).

 In the light of experience, it is now our view that for underground
mining to resume at Palito, the re-introduction of selective manual
mining along with more ore sources is necessary.  Re-establishing
underground ore production at Palito is therefore unlikely to be a
near term objective without having in place solutions to these
issues.  Selective mining of narrow vein ore-bodies requires skilled
mining labour not readily found in Brazil, but which is available in
other countries in South and Central America where similar deposits
are mined.

EXPLORATION REVIEW

Following the suspension of underground mining at Palito, exploration
activity has been significantly reduced in order to conserve cash.
Most exploration personnel have been released, though some senior
personnel were retained to compile, integrate and re-interpret
geochemistry, geology and geophysics results across the Palito
district and on the regional projects.  Consequently exploration
activity has been focused solely upon delineating oxide resource
amenable to surface mining at Palito.
The main areas assessed for oxide potential and immediate oxide ore
sources have been:

  * The Mogno and Ipe structures of the Chico da Santa Zone
  * The southern and northern extension of the Senna lode
  * The Palito West Zone south west of the existing portal
  * The G3 lode south of the Palito mine camp

These areas were prioritised on the basis of significant geochemical
and geophysical anomalies and are being tested by Auger drilling on a
nominal 25m X 10m grid, which has now defined broad halos of elevated
gold grades that may be indicative of near vertical gold bearing
quartz structures. By the end of the first quarter 80 holes had been
completed, totaling 488.6m.  The first quarter of the year is also
the rainy season, which has hampered exploration and surface mining
activities.  During the next two months the rains will subside, and
we plan to utilize excavators to trench across the strike of these
targeted zones and complete their assessment.  A total of 75,000
tonnes of potential oxide ore has been provisionally targeted, and
with improved weather conditions we are confident exploration success
can be accelerated and a more robust surface mining plan
established.


Enquiries:

Serabi Mining plc

Graham Roberts                  Tel: [phone]
Chairman                        Mobile: [phone]

Clive Line                      Tel: [phone]
Finance Director                Mobile: [phone]


Email: [e-mail]
Website:  www.serabimining.com

Beaumont Cornish Limited
Roland Cornish                  Tel: [phone]
Michael Cornish                 Tel: [phone]


Qualified Persons Statement
The information contained within this announcement has been reviewed
and verified by Michael Hodgson as required by the AIM Guidance Note
on Mining. Oil and Gas Companies dated March 2006.  Michael Hodgson
is an Economic Geologist by training with 20 years experience in the
mining industry.  He holds a BSc (Hons) Geology, University of
London, a MSc Mining Geology, University of Leicester and is a Fellow
of the Institute of Materials, Minerals and Mining and a Chartered
Engineer of the Engineering Council of UK.

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