Audited Results for the year ended 31 December ...

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


Audited Results for the year ended 31 December 2010

Serabi (AIM:SRB, TSX:SBI and SBI.WT), the gold exploration company, today
releases its audited results for the year ended 31 December 2010.

A PDF version of Serabi's Directors Report and Financial Statements for the year
ended 31 December 2010 together the Chairman's Statement and the Management
Discussion and Analysis, is available from the Company's website -
www.serabimining.com and has been posted on SEDAR at www.sedar.com.

The following information, comprising the Chairman's Statement, the Finance
Review, the Income Statement, the Group Balance Sheet, Group Statement of
Changes in Shareholders' Equity and Group Cash Flow, is extracted from these
financial statements.



The Company has also, in compliance with Canadian regulatory requirements,
posted its Management Discussion and Analysis for the year ended 31 March 2010
and its Annual Information Form on SEDAR at www.sedar.com.  These documents are
also available from the Company's website - www.serabimining.com

CHAIRMAN'S STATEMENT

Serabi has undergone significant change over the past two years which has now
culminated in the listing of the shares on the Toronto Stock Exchange and the
appointment of additional non-executive Board members to help the Company in its
next stage of development.

The Tapajos region of Brazil, where artisanal production is reported as having
been up to 30 million ounces, must be considered to be a highly prospective gold
region.  To date only some 5 million ounces of hard rock resources have been
identified, the majority of which lies along the geologically significant
Tocantinzinho structural trend, implying that a significant level of hard rock
resource still remains to be identified.   The Palito mine and the tenements
that Serabi's exploration activity is focussed on, lie at the south-eastern end
of this structural trend close to the main infrastructure and population areas,
a location that has been described as the "front door to the Tapajos".

Exploration always requires an element of fortune, but the odds can be moved in
your favour by adopting a systematic and structured approach.  Serabi has put
such an approach in place and having already generated a number of drill targets
has followed this up with further programmes that we hope will allow it to
create a pipeline of opportunities within its tenement area from which it can,
over time, add significantly to its existing resource base.  We hope that the
use of airborne geophysics to screen large areas and generate focused ground
based exploration, will prove to be a significant tool to unlock some of the
potential of this region but I am sure that it will not be the only technique
that might be successful in locating deposits in this geologically exciting
area.

I am excited to be involved with the Company at this stage of its development,
and know that the other new members of the Board feel the same.  Bill Clough who
founded the Company has stepped down from the Board and it was his pioneering
spirit and vision that identified the potential of the Tapajos region in the
first instance.  Bill and his team put in place significant foundations on which
Serabi can now build and which will add great value to the exploration success
that we all hope Serabi is now set to achieve.

This is my last address to shareholders as Chairman of the Company as I have
elected to step down in order to assist the Company in fulfilling its Canadian
securities obligations, though I will remain on the Board in a non-executive
capacity.  I welcome Mr Sean Harvey, one of the new non-executive directors as
the new Chairman of the Board.  I have had a long acquaintance with Sean, and
know that his excellent reputation in North America will allow the Company to
maintain a high profile there and maximise the benefits that can be achieved
from its new TSX listing.

FINANCE REVIEW

The data included in the selected annual information table below is taken from
the Company's annual audited financial statements which were prepared in
accordance with International Financial Reporting Standards in force at the
reporting date and their interpretations issued by the International Accounting
Standards Board ("IASB") and adopted for use within the European Union (IFRS)
and with IFRS and their interpretations adopted by the IASB.  There are no
material differences on application to the Group.  The consolidated financial
statements have also been prepared in accordance with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS.



                                                  2010         2009         2008

                                                   US$          US$          US$
                                         ---------------------------------------
Revenues                                     1,229,551    5,512,804   16,523,577

Net loss                                   (5,980,011)  (9,990,502) (10,973,655)

Net loss per share (basic and diluted)    (15.21)cents (61.55)cents  (78.3)cents

Total current assets                        11,174,647    7,030,342    4,864,694

Development and deferred exploration         9,797,406    6,880,038    5,351,921
costs

Property plant and equipment                33,951,140   35,327,788   31,620,364

Total assets                                54,923,193   49,238,168   43,589,495

Total liabilities                           10,571,375    6,033,451    5,324,953

Equity shareholders funds                   44,351,818   43,204,717   38,264,542



Results of Operations

Financial Year ended 31 December 2010

For the year ended 31 December 2010 the Company recorded a net loss of
US$5,980,011 (US$0.1521 per share) compared to a net loss of US$9,990,502
(US$0.6155 per share) for the comparative period last year.  The decrease in the
loss in part reflects that no impairment provision was taken in the current year
(2009: US$4,343,048), there were no write-offs in respect of past exploration
activities (2009: US$495,138) and no requirement to increase the provision for
rehabilitation on mine closure (2009: US$346,000).  The combination of these
effects contributed to a year on year reduction in expenses of US$5,184,146.
However, there were increases in the gross loss from operations of US$944,997
and an increase in administration costs of US$414,975 and therefore the overall
improvement in the net loss was US$4,010,491.

The increase in the gross loss from operations is primarily a reflection of
production being subject to a suspension during June and not recommencing
thereafter and therefore revenue was generated for only the first six months of
the year.  There was an initial loss recorded for the first six months of the
year of US$345,387, and whilst there was no subsequent production, costs
continued to be incurred and expensed in respect of maintenance and
refurbishment activities during this second six month period.  It has been
increasingly difficult to identify further adequate surface resources to justify
continuous oxide mining operations and ore processing in the future will only be
undertaken on a campaign basis, running the plant when adequate ore stocks are
available.  Therefore, whilst the plant will continue to be maintained in a
state of readiness, the workforce has been reconfigured to be a more versatile
team that can be deployed for exploration, mining and processing as required.

The increase in administration costs reflects a tax credit received in Brazil in
2009, amounting to US$563,000.  Excluding the effects of this credit,
administration costs were reduced by US$148,000.


Fourth quarter

For the three month period ended 31 December 2010, the Company recorded a net
loss of US$2,005,738 (US$0.0448 per share) compared to a net loss of
US$2,552,618 (US$0.1119 per share for the comparative period of 2009.  Whilst
the gross losses recorded from operations were comparable (2010: US$453,614,
2009: US$467,073) in reality as there was no mining activity during the fourth
quarter of 2010, it is not possible to make any direct comparison with the
corresponding period of 2009.  The costs incurred in the fourth quarter of 2010
are those attributed to ongoing general maintenance and upkeep expenditures
related to the Palito Mine whilst plant and equipment is refurbished and placed
in a state of readiness for any future recommencement of operations.

Administration costs increased compared with the preceding quarter as a result
of an increase in Brazilian labour claim settlements in the quarter of
US$373,000.  With large numbers of staff made redundant at the end of 2008, the
last quarter of 2010 was effectively the cut-off date for former staff to file
claims under prevailing legislation.

In other respects the operating results for the period are in line with
expectations and with prior periods of 2010 and the corresponding period in
2009.  The results of each quarter are affected by the translation of the
results from the activities of the Brazilian subsidiary and the exchange rates
used for each reporting period.  Overall the Brazilian Real has strengthened
during the year which has a negative impact on costs reported in US dollars.  At
30 June 2010 the rate was BrR$1.8015 to US$1, at 30 September 2010, BrR$1.6942
to US$1 and at 31 December 2010, BrR$1.6662 to US$1.  At 31 December 2009 the
rate was BrR$1.7412 to US$1.

Summary of quarterly results

As the Company only became a reporting issuer (as defined by Canadian securities
regulations) in March 2011 and did not previously prepare quarterly financial
statements it is not required to provide a summary by quarter for the last two
financial years.  The following summary information is derived from the existing
available public financial information released by the Company.



                             Six months ended     Quarter ended    Quarter ended

                                      30 June

                                         2010 30 September 2010 31 December 2010

                                            $                 $                $
--------------------------------------------------------------------------------
Revenues                            1,148,999            22,909           57,643

Operating expenses                (1,494,386)         (411,103)        (511,257)
                            ----------------------------------------------------
Gross loss                          (345,387)         (388,194)        (453,614)

Administration expenses             (842,391)         (561,015)        (863,506)

Option costs                         (50,204)          (25,103)         (28,569)

Write-off of past
exploration  expenditures                   -                 -                -

Increase in rehabilitation
provision                                   -                 -                -

Loss on asset disposals               (4,694)         (111,106)          (8,379)

Impairment                                  -                 -                -

Depreciation of plant and
equipment                         (1,017,458)         (497,439)        (597,548)
                            ----------------------------------------------------
Operating loss                    (2,260,134)       (1,582,857)      (1,951,616)

Exchange                            (272,573)           241,092            4,085

Finance costs                        (55,476)          (44,325)         (58,207)
                            ----------------------------------------------------
Loss before taxation              (2,588,183)       (1,386,090)      (2,005,738)
                            ----------------------------------------------------
Loss per ordinary share
(basic and diluted)              (7.66) cents      (3.10) cents     (4.48) cents









                             Six months ended     Quarter ended    Quarter ended

                                      30 June

                                         2009 30 September 2009 31 December 2009

                                            $                 $                $
--------------------------------------------------------------------------------
Revenues                            3,601,349         1,191,571          719,884

Operating expenses                (3,061,975)       (1,506,070)      (1,186,957)
                            ----------------------------------------------------
Gross loss                          (539,374)         (314,499)        (467,073)

Administration expenses           (1,178,935)         (192,978)        (480,024)

Option costs                         (40,161)          (20,013)         (86,864)

Write-off of past
exploration  expenditures                   -         (476,967)         (18,171)

Increase in rehabilitation
provision                                   -         (346,000)                -

Loss on asset disposals             (209,661)            33,442          (5,018)

Impairment                        (2,422,737)       (1,159,596)        (760,715)

Depreciation of plant and
equipment                         (1,126,106)         (499,788)        (531,132)
                            ----------------------------------------------------
Operating loss                    (4,438,226)       (2,976,399)      (2,348,997)

Exchange                               93,755            73,060        (181,348)

Finance costs                       (157,455)          (32,619)         (22,273)
                            ----------------------------------------------------
Loss before taxation              (4,501,926)       (2,935,958)      (2,552,621)
                            ----------------------------------------------------
Loss per ordinary share
(basic and diluted)             (33.12) cents     (20.95) cents    (11.19) cents







Liquidity and Capital Resources

The Company had a working capital position of US$2,793,046 at 31 December 2010
compared to US$2,656,862 at 31 December 2009. The working capital position
includes cash and cash equivalents of US$8,598,755 (2009: US$4,081,882).  The
Company does not have any asset backed commercial paper investments.  The
working capital position is adversely affected by the accounting treatment of
the net proceeds of the Special Warrant issue that was completed by the Company
on 2 December 2010.  In accordance with International Accounting Standard 32
("IAS 32") it is required that these net proceeds be reflected as a current
liability of the Company as at the balance sheet date of US$5,059,995.
Following the balance sheet date the liquidity conditions relating to these
Special Warrants were satisfied and with effect from the balance sheet of the
Company as at 31 March 2011, this value will form part of the Equity component
of the Company's balance sheet.  Excluding this value from the current
liabilities, the working capital position at 31 December 2010 would have been
US$7,853,041.

During the year ended 31 December 2010, the Company issued a total of
12,000,000 Ordinary Shares for net cash proceeds of US$5,389,061, following the
subscription for shares by Eldorado Gold Corporation ("Eldorado") as a result of
which Eldorado acquired at that time a 26.8% interest in the Company.

On 2 December 2010 the Company also completed a placement of Special Warrants
raising gross cash proceeds of US$5,059,995. Each Special Warrant comprises a
Unit which in turn consists of one Ordinary Share and one half of a Warrant
whereby each whole Warrant entitles the holder to subscribe for one Ordinary
Share at a price of C$0.75 at any time before 2 December 2012.  The Special
Warrants will convert automatically and without any further action on the part
of the holder on the earlier of the Company meeting the liquidity conditions
attaching to the Special Warrants or 2 April 2011 ("the Liquidity Deadline").
The liquidity conditions are (i) the issuance of a receipt by each of the
securities commissions or comparable regulatory authorities in each of the
provinces and territories of Canada in which a final prospectus of the Company
will be filed to qualify the distribution of the Ordinary Shares and Warrants on
exercise of the Special Warrants; and (ii) the Company obtaining a listing of
the Ordinary Shares on the TSX or TSXV.  The liquidity conditions were met on
30 March 2011 when the Company completed an IPO in Canada and the Ordinary
shares commenced trading on the TSX.

The Company has during the year ended on 31 December 2010, paid US$2,481,665 on
mineral property exploration, US$7,225 on asset purchases and used US$3,937,133
on operating activities.

On 31 December 2010, the Company's total assets amounted to US$54,923,193, which
compares to the US$49,238,168 recorded in 31 December  2009. Total assets are
mostly comprised of property, plant and equipment, which as at 31 December 2010
totalled US$33,951,141 (December 2009: US$35,327,788), and deferred exploration
and development cost which as at December 31, 2010 totalled US$9,797,406
(December 2009: US$6,880,038), of which US$8,296,965 relates to capitalized
exploration expenditures at, or in close proximity to, the Palito Mine. The
Company's total assets also included cash holdings of US$8,598,755 (December
2009: US$4,081,882).

Receivables of US$96,143 as at 31 December 2010 have decreased by US$179,395
compared to the prior year's receivables balance of US$275,538.  The receivables
as of 31 December 2010 are primarily deposits paid by the Company.  Prepayments
as of 31 December 2010 were US$1,061,945 compared with US$1,413,158 as at 31
December 2009, a reduction of US$351,213.  The prepayments primarily represent
prepaid taxes in Brazil of US$950,913 of which the majority is federal and state
sales taxes which the Group expects to recover either through offset against
other federal tax liabilities or through recovery directly.

The Company's total liabilities at 31 December 2010 of US$10,571,375 (December
2009: US$6,033,451) included accounts payable to suppliers and other accrued
liabilities of US$3,935,912 (December 2009: US$4,361,854) and in accordance with
IAS32 a liability of $5,059,995 (2009: nil) in respect of the net proceeds of
the Special Warrants as detailed earlier.  The total liabilities include
US$249,176 including accrued interest (December 2009: US$216,898) attributable
to the £300,000 loan from a related party, which has a repayment date of 31
October 2014 subject to the right of the holder at any time, on one or more
occasions, on or before the repayment date, to convert any of the outstanding
amounts owed by the Company to Ordinary Shares at a price of 15 pence per
Ordinary Share.  It also includes the amount of US$1,383,571 (December 2009:
US$1,374,200) in respect of provisions including US$1,055,000 (December 2009:
US$1,055,000) for the cost of remediation of the current Palito Mine site at the
conclusion of operational activity.



Enquiries:



 Serabi Mining plc

 Michael Hodgson                   Tel: [phone]

 Chief Executive                   Mobile: [phone]



 Clive Line                        Tel: [phone]

 Finance Director                  Mobile: [phone]



 Email: [e-mail]

 Website:  www.serabimining.com



 Beaumont Cornish Limited

 Nominated Adviser

 Roland Cornish                    Tel: [phone]

 Michael Cornish                   Tel: [phone]



 Fraser Mackenzie Limited

 Canadian Broker

 JC St-Amour                       Tel: [phone]



 Hybridan LLP

 UK Broker

 Claire Noyce                      Tel: [phone]



 Farm Street Communications

 Public Relations

 Simon Robinson                    Tel: [phone]



 Fig House Communications

 Investor Relations

 Rebecca Greco                     Tel: + 1 416 822 6483





Copies of this release are available from the Company's website at
www.serabimining.com.

Statement of Comprehensive Income

For the year ended 31 December 2010



                                                                  Group
                                                        ------------------------
                                                             For the     For the

                                                          year ended  year ended

                                                         31 December 31 December

                                                                2010        2009

                                                   Notes         US$         US$

CONTINUING OPERATIONS

Revenue                                                    1,229,551   5,512,804

Operating expenses                                       (2,416,746) (5,755,002)
--------------------------------------------------------------------------------
Gross loss                                               (1,187,195)   (242,198)

Administration expenses                                  (2,266,912) (1,851,937)

Share-based payments                                       (103,876)   (147,038)

Write-off of past exploration costs                                -   (495,138)

Increase in rehabilitation provision                               -   (346,000)

Loss on asset disposals                                    (124,179)   (181,237)

Impairment                                                         - (4,343,048)

Depreciation of plant and equipment                      (2,112,445) (2,157,026)
--------------------------------------------------------------------------------
Operating loss                                           (5,794,607) (9,763,622)

Foreign exchange loss                                       (27,396)    (14,533)

Interest payable                                           (187,912)   (215,916)

Interest receivable                                           29,904       3,569
--------------------------------------------------------------------------------
Loss before taxation                                     (5,980,011) (9,990,502)

Income tax expense                                                 -           -
--------------------------------------------------------------------------------
Loss for the period from continuing                      (5,980,011) (9,990,502)
operations((1) (2))



Other comprehensive income (net of tax)

Exchange differences on translating foreign                1,613,011  10,072,895
operations
--------------------------------------------------------------------------------
Total comprehensive (loss)/income for the                (4,367,000)      82,393
period((2))
--------------------------------------------------------------------------------
Loss per ordinary share (basic and diluted)        4        (15.21c)    (61.55c)
--------------------------------------------------------------------------------



(1)        All revenue and expenses arise from continuing operations

(2)        The Group has no non-controlling interests and all income/(losses)
are attributable to the equity holders of the Parent Company



Balance Sheets

As at 31 December 2010



                                                                 Group

                                                               2010         2009

                                                 Notes          US$          US$


--------------------------------------------------------------------------------
Non-current assets

Goodwill                                                          -            -

Development and deferred exploration costs       5        9,797,406    6,880,038

Property, plant and equipment                    6       33,951,140   35,327,788

Investments in subsidiaries                                       -            -

Other receivables                                                 -            -
--------------------------------------------------------------------------------
Total non-current assets                                 43,748,546   42,207,826
--------------------------------------------------------------------------------
Current assets

Inventories                                               1,417,804    1,259,764

Trade and other receivables                                  96,143      275,538

Prepayments                                               1,061,945    1,413,158

Cash and cash equivalents                                 8,598,755    4,081,882
--------------------------------------------------------------------------------
Total current assets                                     11,174,647    7,030,342
--------------------------------------------------------------------------------
Current liabilities

Trade and other payables                                  3,147,258    4,170,712

Accruals                                                    174,348      122,269

Interest bearing liabilities                                      -       80,499

Special warrants                                          5,059,995            -
--------------------------------------------------------------------------------
Total current liabilities                                 8,381,601    4,373,480
--------------------------------------------------------------------------------
Net current assets                                        2,793,046    2,656,862
--------------------------------------------------------------------------------
Total assets less current liabilities                    46,541,592   44,864,688
--------------------------------------------------------------------------------
Non-current liabilities

Trade and other payables                                    552,027       68,873

Provisions                                                1,388,571    1,374,200

Interest bearing liabilities                                249,176      216,898
--------------------------------------------------------------------------------
Total non-current liabilities                             2,189,774    1,659,971
--------------------------------------------------------------------------------
Net assets                                               44,351,818   43,204,717
--------------------------------------------------------------------------------
Equity

Share capital                                            27,752,834   26,848,814

Share premium reserve                                    40,754,032   36,268,991

Option reserve                                            1,648,484    1,523,444

Other reserves                                              260,882      260,882

Translation reserve                                       3,882,168    2,269,157

Accumulated losses                                     (29,946,582) (23,966,571)
--------------------------------------------------------------------------------
Equity shareholders' funds attributable to               44,351,818   43,204,717
owners of the parent
--------------------------------------------------------------------------------



Statements of Changes in Shareholders' Equity

For the year ended 31 December 2010



                                          Share
                   Share      Share      option    Other Translation  Accumulated
                                                                                        Total
                 capital    premium     reserve reserves     reserve       losses      equity

Group                US$        US$         US$      US$         US$          US$         US$
---------------------------------------------------------------------------------------------
Equity
shareholders' 25,285,679 33,402,649   3,061,095        - (7,803,738) (15,681,143)  38,264,542
funds at 31
December 2008

Foreign
currency               -          -           -        -  10,072,895            -  10,072,895
adjustments

Loss for year          -          -           -        -           -  (9,990,502) (9,990,502)
---------------------------------------------------------------------------------------------
Total
comprehensive          -          -           -        -  10,072,895  (9,990,502)      82,393
income for
the year

Issue of new
ordinary       1,563,135  3,129,079           -        -           -            -   4,692,214
shares

Costs
associated
with issue of          -  (262,737)           -        -           -            -   (262,737)
new ordinary
shares

Equity
portion of             -          -           -  260,882           -            -     260,882
convertible
loan stock

Cancellation
of share               -          - (1,705,074)        -           -    1,705,074           -
options

Share option           -          -     167,423        -           -            -     167,423
expense
---------------------------------------------------------------------------------------------
Equity
shareholders' 26,848,814 36,268,991   1,523,444  260,882   2,269,157 (23,966,571)  43,204,717
funds at 31
December 2009

Foreign
currency               -          -           -        -   1,613,011            -   1,613,011
adjustments

Loss for year          -          -           -        -           -  (5,980,011) (5,980,011)
---------------------------------------------------------------------------------------------
Total
comprehensive          -          -           -        -   1,613,011  (5,980,011) (4,367,000)
income for
the year

Issue of new
ordinary         904,020  4,520,100           -        -           -            -   5,424,120
shares

Costs
associated
with issue of          -   (35,059)           -        -           -            -    (35,059)
new ordinary
shares

Share option           -          -     125,040        -           -            -     125,040
expense
---------------------------------------------------------------------------------------------
Equity
shareholders' 27,752,834 40,754,032   1,648,484  260,882   3,882,168 (29,946,582)  44,351,818
funds at 31
December 2010
---------------------------------------------------------------------------------------------




Cash Flow Statements

For the year ended 31 December 2010



                                                                 Group



                                                            For the     For the

                                                         year ended  year ended

                                                        31 December 31 December

                                                               2010        2009

                                                                US$         US$
-------------------------------------------------------------------------------
Cash outflows from operating activities

Operating loss                                          (5,794,607) (9,763,622)

Depreciation - plant, equipment and mining properties     2,112,445   2,157,026

Impairment charges                                                -   4,343,048

Increase in rehabilitation provision                              -     346,000

Loss on sale of assets                                      124,179     181,237

Option costs                                                103,876     167,423

Share based payment expense                                       -     334,987

Write-off of past exploration costs                               -     495,138

Interest paid                                             (149,439)   (215,916)

Foreign exchange                                          (175,671)   (650,272)

Changes in working capital

(Increase)/decrease in inventories                         (95,530)         452

Decrease in receivables, prepayments and accrued income     569,010   1,179,755

(Decrease)/increase in payables, accruals and             (631,396)    (96,684)
provisions
-------------------------------------------------------------------------------
Net cash flow from operations                           (3,937,133) (1,521,428)
-------------------------------------------------------------------------------
Investing activities

Proceeds of sale of fixed assets                            501,209   1,220,691

Purchase of property, plant and equipment                   (7,225)    (74,578)

Exploration and development expenditure                 (2,481,665)   (620,490)

Capital and loan investments in subsidiaries                      -           -

Interest received                                            29,904       3,569
-------------------------------------------------------------------------------
Net cash inflow/(outflow) on investing activities       (1,957,777)     529,192
-------------------------------------------------------------------------------
Financing activities

Issue of ordinary share capital                           5,424,120   4,266,740

Issue of special warrants                                 5,453,761           -

Capital element of finance lease payments                  (79,303) (1,178,381)

Issue of convertible loan stock                                   -     477,780

Payment of share issue costs                               (35,059)   (172,250)

Payment of special warrant issue costs                    (393,765)          -)
-------------------------------------------------------------------------------
Net cash inflow from financing activities                10,369,754   3,393,889
-------------------------------------------------------------------------------
Net increase in cash and cash equivalents                 4,474,844   2,401,653

Cash and cash equivalents at beginning of period          4,081,882   1,538,956

Exchange difference on cash                                  42,029     141,273
-------------------------------------------------------------------------------
Cash and cash equivalents at end of period                8,598,755   4,081,882
-------------------------------------------------------------------------------


Notes



1.         General Information

The financial information set out above for the years ended 31 December 2010 and
31 December 2009 does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006, but is derived from those accounts. Whilst the
financial information included in this announcement has been compiled in
accordance with International Financial Reporting Standards ("IFRS") this
announcement itself does not contain sufficient financial information to comply
with IFRS. A copy of the statutory accounts for 2009 has been delivered to the
Registrar of Companies and those for 2010 will be posted to shareholders. The
full audited financial statements for the years end 31 December 2010 and 31
December 2009 do comply with IFRS.

2.         Auditor's Opinion

The auditors have issued an unqualified opinion in respect of the financial
statements which does not contain any statements under the Companies Act 2006,
Section 498(2) or Section 498(3).  The Auditors have raised and Emphasis of
Matter in relation to the availability of Project Finance as follows:

"In forming our conclusion, which is not qualified, we have considered the
adequacy of the disclosures made in note 1 a) to the financial statements
concerning the availability of project finance. If the company is unable to
secure such additional funding, this may have a consequential impact on the
carrying value of the related assets and the investment and intercompany debtor
in the company balance sheet. The outcome of any future fundraising cannot
presently be determined, and no adjustments to asset carrying values that may be
necessary should be the company be unsuccessful have been recognised in the
financial statements."


NB : The reference to note 1(a) in the above is a reference to the Basis of
Preparation note contained within the Financial Statements from which the
extracts reproduced below referring to Going Concern and Impairment are taken.

3.             Basis of preparation

The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") in force at the reporting date and their
interpretations issued by the International Accounting Standards Board ("IASB")
as adopted for use within the European Union and with IFRS and their
interpretations adopted by the IASB. The consolidated financial statements have
also been prepared in accordance with those parts of the Companies Act 2006
applicable to companies reporting under IFRS.

Attention is drawn to the detailed disclosures made in the audited Financial
Statements regarding the Basis of Preparation and in particular the following
disclosures extracted directly from the audited Financial Statements in respect
of Going Concern and Impairment.

Going concern and availability of project finance

In common with many companies in the exploration and development stages, the
Company raises its finance for exploration and development programmes in
discrete tranches. The directors have prepared cash flow projections for the
period to June 2012 which indicate that existing funds will be sufficient to
fund the group and its commitments for the foreseeable future. The directors
have therefore concluded that it is appropriate to prepare the financial
statements on a going concern basis.

However, further funds will be required in order to successfully develop any
successful exploration targets and bring the Palito mine back into operation.
Whilst the directors are confident that they are taking all the necessary steps
to ensure that the funding will be available, there can be no certainty that
this will be the case.  Were the funding not to become available in an
appropriate timescale the directors would need to consider alternative
strategies and an impairment review would be required in respect of the
capitalised expenditure on the Palito project.  No adjustments to asset carrying
values that may be necessary should the company be unsuccessful have been
recognised in the financial statements.

Impairment

The Directors have undertaken a review of the carrying value of the mining and
exploration assets of the Group, and considered the implications of the
operational difficulties experienced and the current operational status of
Palito. Following this review they have assessed the value of the existing
assets on the basis of value in use involving a future recommencement of
underground mining operations which is dependent on the ability of the Group to
raise future finance and to operate the mine in line with the mine plan that
forms the basis of the value in use calculation. The carrying values of assets
have not been adjusted to reflect a failure to raise sufficient funds, only
maintaining the current levels of operation or that if a sale transaction were
undertaken the proceeds may not realise the value as stated in the accounts.


4.         Loss per share

The calculation of the basic loss per share of 15.21 cents (2009 loss per share:
61.55 cents) is based on the loss attributable to ordinary shareholders of
US$5,980,011 (2009: loss of US$9,990,502) and on the weighted average number of
ordinary shares of 39,316,525 (2009: 16,230,937) in issue during the period. No
diluted earnings per share is presented as the effect of the exercise of share
options would be to decrease the loss per share.


5.         Development and Deferred Exploration costs



                                               31 December 2010 31 December 2009

                                                              $                $
--------------------------------------------------------------------------------
Cost

Opening balance                                       6,880,038        5,351,921

Exploration and development expenditure               2,502,829          640,875

Write-off of past exploration costs                           -        (495,138)

Exchange                                                414,539        1,570,728

Transfer to tangible assets (plant and                        -        (188,348)
equipment)
--------------------------------------------------------------------------------
Total as at end of period                             9,797,406        6,880,038
--------------------------------------------------------------------------------



The value of these investments is dependent on the development of mineral
deposits.

6.         Tangible Assets



                             Land and
                            buildings                     Plant and
                                                          equipment
                            - at cost  Mine Asset         - at cost        Total

                                    $           $                 $            $
--------------------------------------------------------------------------------
Cost

Balance at 31
December 2009               3,908,600  31,333,417        13,324,874   48,566,891

Additions                           -           -             7,225        7,225

Exchange                      175,936   1,215,620           499,404    1,890,960

Disposals                           -           -       (1,196,380)  (1,196,380)
--------------------------------------------------------------------------------
At 31 December 2010         4,084,536  32,549,037        12,635,123   49,268,696
--------------------------------------------------------------------------------
Depreciation

Balance at 31
December 2009             (2,632,403) (4,237,381)       (6,369,319) (13,239,103)

Charge for period           (556,292)           -       (1,556,153)  (2,112,445)

Exchange                    (148,422)    (86,344)         (302,234)    (537,000)

Eliminated on sale
of asset                            -           -           570,992      570,992
--------------------------------------------------------------------------------
At 31 December 2010       (3,337,117) (4,323,725)       (7,656,714) (15,317,556)
--------------------------------------------------------------------------------
Net book value at
31 December 2010              747,419  28,225,312         4,978,409   33,951,140
--------------------------------------------------------------------------------
Net book value at
31 December 2009            1,276,197  27,096,036         6,955,555   35,327,788
--------------------------------------------------------------------------------



Included in Plant and equipment, are assets acquired under finance leases with
net book value of US$ nil (2009: US$237,282).

7.         Impairment

The Directors have considered each of the Group's exploration and development
assets on a project-by-project basis. It has considered three general cash
generating units for the purpose of this assessment. These are:

·               the Palito mine itself including the pre-operating cost,
exploration expenditures on establishing the current declared reserve and
resource base, land and buildings and plant and machinery associated with the
mining operations

·               exploration expenditures on areas within the Palito environs but
which have not yet been exploited and do not form part of the current declared
reserves and resources; and

·               exploration expenditures on other tenements.

Following this review and making estimates of the value in use, the Directors
have concluded the resulting Net Present Value still supports the carrying value
of US$34.0 million and therefore the Directors have not made any adjustment to
the impairment provision currently carried in the books of the group.

In accordance with IAS 36 - Impairment of Assets, any impairment must first be
applied against any goodwill allocated to the unit that is impaired and
thereafter allocated to the other assets of the unit pro-rata on the basis of
the carrying amount of each asset in the unit.

The carrying value for the Group of the Palito cash generating unit comprises:



                          Carrying Value          Impairment      Carrying value
                       before impairment           provision    after impairment

                                     US$                 US$                 US$
--------------------------------------------------------------------------------
Goodwill                       1,752,516           1,752,516                   -

Mining Property               30,262,994           2,037,682          28,225,312

Land and Buildings               833,551              86,132             747,419

Plant and Equipment            5,414,538             466,718           4,947,820
--------------------------------------------------------------------------------
                              38,263,599           4,343,048          33,920,551
--------------------------------------------------------------------------------

No impairment provision has been made in respect of any of the other cash
generating units.




Annual Report

The Annual Report will be posted to shareholders before 30 April 2011.
Additional copies will be available to the public, free of charge, from the
Company's offices at 2(nd) floor, 30 - 32 Ludgate Hill, London, EC4M 7DR and may
be downloaded from the Company's website at www.serabimining.com.

This press release contains forward-looking statements. All statements, other
than of historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements. Forward-looking
statements are often identifiable by the use of words such as "anticipate",
"believe", "plan", may", "could", "would", "might" or "will", "estimates",
"expect", "intend", "budget", "scheduled", "forecasts" and similar expressions
or variations (including negative variations) of such words and phrases.
Forward-looking statements are subject to a number of risks and uncertainties,
many of differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to differ
materially from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the possibility
that future exploration results will not be consistent with the Company's
expectations, the price of gold and other risks identified in the Company's most
recent annual information form filed with the Canadian securities regulatory
authorities on SEDAR.com. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward-
looking statement.













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Source: Serabi Mining plc via Thomson Reuters ONE

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