2nd Quarter Investor Update

Serabi Mining plc ("Serabi or "the Company"), the AIM-listed gold
production and exploration company with operations in Brazil
(AIM:SRB), announces that it has today issued its 2nd Quarter
shareholder update.

The full text of the update can be accessed by following the link at
the end of this announcement or direct from the Company's offices or
the Company's website: www.serabimining.com

The highlights of the update are:

-  improved operating results at the Palito mine evident during June
and July following commissioning of new mining equipment and revised
mine planning;

-  overall production of 5,754 gold equivalent ounces for the
quarter;

-  2H production expected to show marked improvement as a number of
operating initiatives begin to take effect;

-  new resource estimate demonstrates wider ore potential and
operational flexibility at Palito;

-  for the first time Serabi declares an Ore Reserve at the Palito
mine indicating a minimum mine life of 4 years; and

-  exploration success on a number of fronts points to potential for
important expansion of established mineralised structures.


           Palito - Operating Results (1)
                         2008   2008   2008    2007
                          Q1     Q2     YTD     YTD
Total Mined          t  57,542 59,772 117,314 116,818
(per day)               (632)  (657)   (645)   (645)
Mined Ore            t  33,022 34,829 67,851  92,275
(per day)               (363)  (383)   (373)   (510)
Milled               t  32,479 34,027 66,506  87,950
(per day)               (357)  (374)   (365)   (486)
Head Grade          g/t  4.52   5.10   4.82    6.20
Recovery             %  89.00  89.00   89.00   90.50
Gold                oz  4,217  4,963   9,180  15,932
Copper               t  85.80  78.92  164.73  252.60
Gold Equivalent (2) oz  4,985  5,754  10,738  18,718


(1)  Provisional  (2)  Includes Copper and Silver
The Management Review presented by the Chairman and Chief Executive
summarsies the quarter as follows:

As noted in past communications, we had anticipated a much improved
year in 2008 with greater emphasis on production improvements and
also on realizing the wider ore potential of the Palito / Jardim do
Ouro district.  However, despite our best efforts operational
problems reported in Q1 continued well into Q2 and it was not until
June that we finally saw significant improvement, which we are
encouraged to see is continuing into July.  As reported in the Q1
Investor Update, the first items of key new equipment were seriously
delayed and not commissioned until mid-May.  As reported at the time
of the AGM, this had a detrimental effect on Q2 production.

We are pleased to confirm, however, that the majority of the new
mining fleet was at Palito and in operation by the end of the Q2
period.  As a consequence, better results have immediately begun to
flow through and after what has been a delay amounting to
four-and-a-half months, we are now realizing the production levels
that were originally forecast for 2008.  The key equipment procured
include two new mini-jumbos, two mini-scoops and a long-hole drilling
rig.   During Q3 and Q4, we expect to see further operational
improvements as two further mini-jumbos arrive at site, along with
two further mini-scoops and some specialized haulage trucks at the
end of the year.

In the plant, we have a programme of expansion works in place to
increase throughput and improve recovery.  We have completed an
overhaul of mill # 2, and now have three rebuilt ball mills providing
much improved reliability and operating efficiencies.  This has led
to a return to mill throughput of 500 tonnes per day (tpd).
Attention has now turned to mill # 3 which is in the process of being
overhauled and expected to be operational by the middle of Q3.  This
will increase daily milling rates by a further 20% to 600 tpd.  With
flotation capacity sufficient for this volume, the cyanidation plant
(CIP) has also been expanded to accommodate increased throughput when
required.  This increased capacity will be operational during Q3.

As a result we are now confident that the improved performance seen
in June will continue through Q3, and with much of July completed, we
can say that it is on schedule to be the best month for twelve
months.  We continue to remain optimistic that over the next two
quarters we will meet our quarterly targets of approximately 10,000
gold equivalent ounces.   As was advised at the AGM the original 2008
annual target of 40,000 gold equivalent ounces is now not achievable
and we would expect production for 2008 to be no more than 34,000
gold equivalent ounces.

During the quarter, Serabi finalised the "Palito Ore Reserve and
Mineral Resource Update" dated July 9th 2008, for the first time
reporting an ore reserve for Palito.  The highlights of the estimate
were:

-  a mineral resource of 0.67 million total contained gold equivalent
ounces from 25 mineralised structures;

-  a total proven and probable ore reserve of 187,538 gold equivalent
ounces from within the mineral resource; and

-  ongoing exploration demonstrates possible further significant
extension of a number of the mineralised veins which also remain open
at depth and on strike.
Establishing a reserve provides improved confidence for mine planning
and indicates a minimum approximate life of four years.  These
estimates include exploration and evaluation activity only up to the
end of Q1 2008 and, therefore, the entire Q2 drilling activity as
well as a large number of outstanding assays still not received at
the time of the database closure (March 31st 2008) remain outside
this estimate.  Exploration activity in Q2 focused heavily on strike
and depth extensions at the Palito Main Zone (PMZ), Palito West (PW)
and Chico do Santa (CdS). By the end of the June quarter, drilling
supported by assays indicated significant southerly strike and depth
extensions of PMZ G3 lode and Jatoba high-grade gold mineralisation.
Drill results also confirm significant strike and depth extensions to
the PW zone. This drilling, which remains ongoing is likely to
contribute to a significant increase in the recently disclosed
resource.

In addition, drilling into the PMZ and PW strike and depth extensions
confirmed the electromagnetic geophysics (EM) technique as a prime
exploration tool for rapid identification of mineralization. Further
drill testing of eight large EM anomalies is expected to commence
before year-end following detailed interpretation of potential
targets.

Meanwhile, detailed drilling at the Senna oxide prospect (Ruari's
Ridge project) confirmed that the resource potential of shallow
saprolite and oxide mineralisation at the Palito district may be
greater than first thought.  As a result programmes are now underway
to test other potential areas.

With the objective of expanding production in and around Palito, and
with the disclosure of the first ore reserve at Palito now
undertaken, we feel confident that continued near-mine exploration
and evaluation is likely to justify a review of the resource and
reserve position at year-end.  In parallel to this we remain
committed to progressing regional exploration that we believe will
lead to the discovery of a second mineral district in the Tapajos.
This is all with the intention of placing Serabi in a strengthened
position to make investment decisions that will enable it to achieve
its goal of becoming an established and growing producer.

Enquiries

Serabi Mining plc

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

Mike Hodgson                    Tel: [phone]
Chief Executive                 Mobile: [phone]

Robyn Hodson                    Tel: [phone]
Investor Relations

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

Numis Securities Limited
John Harrison                   Tel: [phone]
Nominated Adviser

James Black                     Tel: [phone]
Corporate Broker

Farm Street Communications
Simon Robinson                  Tel:  [phone]
Public and Media Relations

4C-Burvale Limited
Carina Corbett                  Tel: [phone]
John Carrick-Smith              Tel: [phone]
Investor Relations



Notes to Editors

The Tapajos region of northern Brazil encompasses an area of
approximately 100,000 km², primarily situated in south-west Para
State. It has a significant history of alluvial gold production with
estimated gold production of some 30 million ounces having being
recovered, primarily from artisanal workings.

Present in the Tapajos since 1999, Serabi has established the only
'hard rock' mine in the region to date at its Palito gold mine.

Serabi has a significant exploration programme focused on the Tapajos
region, operates four surface drilling rigs and has its own assay
laboratory.

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