Drilling Report

Serabi Mining plc
01 February 2006

SERABI MINING PLC: DRILLING AND EXPLORATION UPDATE 2005

Important new discoveries made adjacent to the Palito mining operation during
2005, while other drill results continue to confirm the potential for expansion
of the Palito Main Zone

LONDON: Serabi Mining plc ('Serabi' or the 'Company') reports assay and
exploration results from its ongoing drill programmes being carried out at the
100% owned Palito Gold Mine and the Jardim do Ouro District, located in the
Tapajos geological region of northern Brazil. Using the company's own drilling
equipment and crews, Serabi completed a total of 18,235 metres of diamond
drilling from 138 boreholes during 2005, significantly in excess of the
company's target of 12,000 metres of drilling for the year.

Highlights of the results from the 2005 drilling campaign include:

     -    Confirmation of the potential to improve the quality and expand gold 
          resources at the Palito Main Zone ('PMZ') at depth and along strike

     -    Exceptional intersections northwest of the Palito Hill indicate high-
          grade gold mineralisation in this direction, up to 200 metres beyond
          current mine workings

     -    Very high-grade intersections at the newly discovered Compressor Lode 
          provide important near-term mining opportuntity

     -    Continuation at depth of high-grade mineralisation at the Palito West 
          prospect

     -    Discovery of new area of gold mineralisation at the Bill's Pipe
          prospect, located within the Jardim do Ouro District nearby the Palito
          mine

Table 1: Drilling progress summary


                                     Area                       Drillholes (1)            Metres
  To December 31   Palito Main Zone Resource (2)                      74                  9,892
       2004        Chico do Santo                                     7                    993
                   Palito West                                        5                    560
                   Other                                              8                   1,679
                   SUB TOTAL                                          94                  13,124
 From January to   PMZ - Infill (Central Zone)                        27                  4,239
   August 2005     PMZ - Strike Extensions                            12                  1,896
                   PMZ - Depth Extensions                             19                  3,028
                   Compressor Lode                                    4                    982
                   Sterilisation                                      4                    552
                   SUB TOTAL                                          66                  10,697
From September to  PMZ - Infill (Central Zone)                        18                  1,728
  December 2005    PMZ - Infill (North Zone)                          15                  1,038
                   PMZ - Strike Extensions                            3                    527
                   PMZ - Depth Extensions                             7                   1,652
                   Compressor Lode                                    21                  1,904
                   Palito West                                        4                    172
                   Bill's Pipe                                        4                    517
                   SUB TOTAL                                          72                  7,538
                   GRAND TOTAL                                       232                  31,359

(1) Average dip is between 45 degrees and 50 degrees

(2) Used for CPR resource calculation & includes earlier non-Serabi drilling


The accompanying Table 2 shows the results from drilling between September and
December 2005 (beginning with drill hole PDD 152), with the highlights and
comments summarized below. Figure 1 entitled 'Long Section of Palito Main Zone'
illustrates the extent of drilling during 2005 as it relates to the resource
boundary as at December 2004. Figure 2 entitled 'Plan View of Palito Main Zone'
shows the location of the recent drilling along the entire strike length of
mineralisation. Results from other 2005 drilling prior to PDD 152 were the
subject of the company's press release dated 9 September, 2005, copies of which
are available on the company's website www.serabimining.com. All figures
referred to in this press release can be viewed by clicking on the URL at the
bottom of this release.


Palito Main Zone - Infill Drilling (Central resource area)

A total of 5,967 metres of infill drilling within the central December 2004
resource area was completed on the Palito Main Zone during 2005. Serabi expects
that the data from these holes will enable the company to significantly improve
the quality of the resource base. Highlights from the most recent infill
drilling in this area include:

          Drill Hole                                 Intersection
            PDD 154                                 1.80m at 9.2g/t
            PDD 171                                0.55m at 27.1g/t
            PDD 173                                 2.45m at 4.7g/t

Infill drilling of the Palito Main Zone will continue during 2006 to provide
information for effective mine planning, but will shift the focus to the use of
underground drill rigs in order that the surface rigs can be directed towards
resource expansion along strike and at depth at Palito, as well as on other
projects throughout the Jardim do Ouro District and Tapajos Region.


Palito Main Zone - Infill Drilling (North resource area)

A significant amount of drilling was carried out along strike to the north of
the Palito Main Zone on the other side of Palito Hill, located up to 200 metres
ahead of the existing mine workings. Results from drilling in this area are very
encouraging, with a number of very high-grade intercepts at shallow depths
encountered. Recent highlights include:

        Drill Hole                                 Intersections
          PDD 200                                 2.31m at 5.2g/t
          PDD 202                                0.50m at 53.2g/t
          PDD 205                                 3.07m at 5.3g/t
          PDD 211                                0.91m at 262.9g/t
          PDD 214                                0.57m at 29.4g/t
          PDD 216                                2.85m at 57.0g/t


Palito Main Zone - Strike Extensions

The drilling focus during 2005 was mainly on infill, strike and depth extensions
and follow-up on the newly discovered Compressor Lode. Drill results obtained
immediately south of the established operation are expected to result in an
extension of the strike length of the Palito Main Zone resource mineralisation
from approximately 900 metres to 985 metres. Mineralisation remains open in both
directions. Highlights during the latter part of the year's drilling programme
include:

        Drill Hole                                 Intersections
          PDD 204                                 1.74m at 9.2g/t
          PDD 208                                0.53m at 18.0g/t

As previously indicated, strongly anomalous gold soil geochemistry indicates
that the Palito Main Zone mineralisation could extend up to 2,000 metres. The
company plans to test the full extent of the strike length of the Palito Main
Zone during 2006.


Palito Main Zone - Depth Extensions

Serabi continued to test the depth extensions of the Palito Main Zone during
2005, with a further 1,652 metres of drilling completed in addition to the 3,028
metres of deep drilling undertaken in the earlier part of 2005.  Highlights from
the most recent deep drilling campaign include:

         Drill Hole                                Intersection
          PDD 153                                0.61m at 25.0g/t
          PDD 159                                0.91m at 83.2g/t
          PDD 159                                0.48m at 69.1g/t
          PDD 165                                0.75m at 14.1g/t
          PDD 219                                0.90m at 26.1g/t

It is noteworthy that there are now a total of 34 drill intersections below
145mRL; the 2004 resource calculation had only included 4 drill intersections
below this elevation. The deepest mineralisation encountered to date has been at
the 56 mRL, which is located approximately 144 metres below the bottom of the
existing shaft. The Palito Main Zone remains open at depth along the entire
strike length.


Compressor Lode

Since the announcement of the discovery of the Compressor Lode adjacent to the
Palito Main Zone in the company's press release dated 9 September 2005, Serabi
has completed an additional 21 drill holes, for a total of 25 drill holes (2,886
metres). Now that additional drilling has been completed, Serabi believes that
the Compressor Lode area actually contains at least four separate high-grade
veins, with a known strike length of 120 metres and a depth of 100 metres
(increased from a previously known depth of 55 metres). Figure 3 entitled 'Plan
View of the Compressor Lode' illustrates the location of these veins as well as
the drill intersections. The mineralisation at the Compressor Lode remains open
at depth. It is expected that the results of this drilling will enable the
company to incorporate the Compressor Lode into the mine plan for 2006.
Highlights from the drilling programme in this area include:

        Drill Hole                                 Intersections
          PDD 163                                0.77m at 40.7g/t
          PDD 163                                0.92m at 25.9g/t
          PDD 183                                1.00m at 58.9g/t
          PDD 185                                0.92m at 66.6g/t
          PDD 187                                2.49m at 20.7g/t
          PDD 191                                1.56m at 42.5g/t
          PDD 193                                1.98m at 19.1g/t
          PDD 196                                2.34m at 12.7g/t
          PDD 197                                0.46m at 134.7g/t


Palito West

The company recently resumed limited testing of the Palito West target, a
parallel structure that lies within 200 metres southwest of the Palito Main
Zone, and from which numerous high-grade results have previously been obtained
from channel sampling. Drill results indicate the continuing occurrence of
high-grade veins within 40 metres of surface.  Noteworthy amongst the 4 drill
holes recently completed at Palito West are:

        Drill Hole                                 Intersections
          PDD 178                                0.79m at 20.3g/t
          PDD 180                                0.64m at 79.5g/t

The very high-grade veins at Palito West have not yet been tested to the south
or at depth and further drilling is planned during 2006 to assess the potential
to extend the mineralisation.


Bill's Pipe

Importantly, Serabi also recently commenced drilling elsewhere in the Jardim do
Ouro District surrounding the Palito Mine. The first area tested by drilling is
the Bill's Pipe target, which is the location of a large gold in soil anomaly
previously identified by the company. Initial trenching of the area had provided
encouraging results.  Trench TC09 encountered 2.0 metres grading 17.6 g/t,
trench TC21 yielded 1.5 metres at 10.8 g/t and trench TC22 returned 1.0 metre at
2.5 g/t gold.

Early drilling results are promising and the company expects to continue with
further work during 2006 on this exciting target.  Highlights from the Bill's
Pipe drilling campaign thus far include:

        Drill Hole                                 Intersections
          PDD 212                                0.51m at 27.0g/t
          PDD 212                                0.95m at 20.7g/t

Deeper holes PDD 215 and PDD 217 intersected narrow but so far lower grade
mineralised zones. Figure 4 entitled 'Plan View of Bill's Pipe' highlights the
size of the gold in soil anomaly as compared to the Palito Main Zone and Ruari's
Ridge. The figure also plots the location of the trenching and drill holes
completed at Bill's Pipe during 2005.


Commenting on the drill progress made during 2005, Graham Roberts, Chairman of
Serabi said,

'The 2005 drilling results confirm the high-grade nature and growing extent of
gold-copper mineralisation at Jardim do Ouro and the Palito Gold Mine. Both the
Palito Main Zone and the newly discovered Compressor Lodes are returning
exceptional results, while our understanding of the north area at Palito is also
growing where we are pleased to see a number of high-grade intercepts. Overall,
we expect the results from the 2005 drilling will provide a strong basis for
improvement of the resource base at Palito, which will be reported to
shareholders as soon as the year-end review is completed.

We are also pleased to report that we have begun drilling at the company's other
projects in its exploration portfolio. Early results from Bill's Pipe are
encouraging and we will be continuing to test this target as well as other
priority targets within the Jardim do Ouro District and the broader Tapajos
Region during the course of 2006.'


Enquiries: Serabi Mining plc

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

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

Chris Sattler                           Tel: [phone]
Corporate Development                   Mobile: [phone]

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


http://www.rns-pdf.londonstockexchange.com/rns/7262x_-2006-1-31.pdf


Table 2: Drilling results from PDD152 to PDD223


 Hole ID(1)                                             Gold       Copper
                 From          To       Length(2)      Grade        Grade
               (metres)     (metres)     (metres)      (gpt)         (%)
  PDD0152                                  NSI
  PDD0153       53.28        54.15         0.87         4.70        0.16
                59.10        59.88         0.78         3.36        0.11
                138.39       139.00        0.61        25.00        0.14
                143.64       144.47        0.83         8.03        0.10
                179.25       180.28        1.03         4.86        0.44
  PDD0154       30.71        31.68         0.97         2.06        0.01
                88.54        90.34         1.80         9.18        0.40
  PDD0155       21.65        22.15         0.50         2.45        0.04
  PDD0156       87.36        87.87         0.51         2.32        0.04
  PDD0157       70.60        71.15         0.55         9.77        0.21
  PDD0158                                  NSI
  PDD0159       65.89        66.37         0.48        69.10        2.52
                73.00        73.50         0.50         3.80        0.48
                119.22       120.28        1.06         7.25        0.22
                122.74       123.24        0.50         6.00        0.34
                128.54       129.14        0.60         2.53        0.10
                132.73       133.51        0.78         3.77        0.06
                185.59       186.50        0.91        83.20        6.77
                210.40       211.40        1.00         5.54        0.04
                222.87       223.84        0.97         5.58        2.47
  PDD0160                                  NSI
  PDD0161                                  NSI
  PDD0162       40.29        41.07         0.78         2.84        0.14
  PDD0163       21.35        22.96         1.61         5.52        0.19
                47.17        48.09         0.92        25.90        0.45
                93.18        93.68         0.50         3.12        0.03
                95.73        96.23         0.50         8.54        0.03
                126.62       127.39        0.77        40.70        0.26
                135.50       136.22        0.72         5.26        1.12
                234.01       234.99        0.98         2.41        0.30
  PDD0164       31.15        31.82         0.67         2.29        0.08
                32.65        34.44         1.79         8.38        0.14
  PDD0165       127.67       128.30        0.63        11.05        1.38
                160.48       161.07        0.59        13.55        0.23
                176.22       176.72        0.50         5.16        0.29
                182.04       182.54        0.50         5.00        0.05
                185.70       186.43        0.73         4.11        0.17
                207.87       208.62        0.75        14.10        0.25
  PDD0166       44.83        45.33         0.50         3.91        0.16
                48.15        48.65         0.50        10.90        0.10
  PDD0167        0.00         0.92         0.92         4.92        0.05
                 9.02        10.19         1.17         2.85        0.01
                15.65        16.15         0.50         4.18        0.10
  PDD0168       60.40        60.80         0.40         8.75        0.12
  PDD0169        0.00         0.70         0.70         2.73        0.05
                24.93        25.43         0.50        13.45        0.08
  PDD0170                                  NSI
  PDD0171       20.67        21.22         0.55        27.10        0.06
  PDD0172                                  NSI
  PDD0173        7.95        10.40         2.45         4.67        0.03
  PDD0174       26.16        27.03         0.87         3.00        0.26
  PDD0175       17.00        18.63         1.63         2.25        0.12
                35.73        36.23         0.50         3.81        0.11
  PDD0176       20.73        21.23         0.50        14.85        0.43
  PDD0177       44.97        45.43         0.46         5.93        0.08
                52.06        52.88         0.82         4.33        0.08
  PDD0178       35.64        36.43         0.79        20.30        0.43
  PDD0179       20.08        20.64         0.56         6.56        0.43
  PDD0180       35.94        36.58         0.64        79.50        0.64
  PDD0181                                  NSI
  PDD0182                                  NSI
  PDD0183        8.10         9.10         1.00        58.92        0.06
  PDD0184                                  NSI
  PDD0185       14.05        14.97         0.92        66.60        0.21
  PDD0186       26.76        27.38         0.62         5.33        0.14
  PDD0187       29.16        31.65         2.49        20.67        0.53
  PDD0188                                  NSI
  PDD0189       36.13        36.62         0.49         3.63        0.12
                60.88        61.62         0.74         3.85        0.21
  PDD0190       40.46        41.33         0.87         7.35        0.64
  PDD0191       24.35        25.65         1.30         7.62        0.06
                40.02        41.58         1.56        42.47        1.46
                53.50        53.98         0.48         5.41        0.10
                55.27        55.77         0.50         2.10        0.06
  PDD0192       37.98        38.79         0.81         2.95        0.21
                72.13        73.17         1.04         5.73        0.20
                80.07        80.57         0.50         2.03        0.02
  PDD0193       23.79        24.59         0.80         2.61        0.07
                36.92        38.90         1.98        19.14        0.13
  PDD0194                                  NSI
  PDD0195       58.72        59.21         0.49         2.07        0.03
                75.22        76.22         1.00         2.01        0.03
                100.30       101.30        1.00        11.38        0.08
                102.28       102.78        0.50         4.62        0.20
                112.29       113.78        1.49         2.84        0.01
  PDD0196       88.74        89.63         0.89         5.41        0.03
                95.21        95.72         0.51         2.79        0.06
                122.19       124.53        2.34        12.69        0.24
  PDD0197       52.61        53.12         0.51        17.56        0.02
                57.44        57.93         0.49         6.41        0.04
                76.11        76.61         0.50         4.45        0.02
                108.56       109.02        0.46        134.68       0.80
  PDD0198       25.12        26.10         0.98         2.90        0.06
                34.08        34.58         0.50         3.80        0.04
  PDD0199       23.40        24.08         0.68         9.82        0.08
  PDD0200       24.78        27.09         2.31         5.15        0.27
                63.56        64.06         0.50         3.73        0.02
                65.48        65.98         0.50         2.82        0.03
  PDD0201                                  NSI
  PDD0202       27.14        27.64         0.50        53.23        0.14
  PDD0203       43.19        46.68         3.49         2.76        0.05
  PDD0204       152.59       154.33        1.74         9.20        0.14
  PDD0205       24.07        24.57         0.50         8.87        0.33
                39.36        39.88         0.52         5.82        0.08
                45.05        48.12         3.07         5.26        0.04
  PDD0206       45.78        46.30         0.52         6.30        0.08
  PDD0207                                  NSI
  PDD0208       220.52       221.05        0.53        18.00        0.10
  PDD0209                                  NSI
  PDD0210       17.83        18.41         0.58         5.18        0.03
                19.36        19.86         0.50         2.00        0.05
                46.92        47.90         0.98         4.00        0.02
                54.64        55.26         0.62         3.09        0.22
                68.80        69.87         1.07         2.27        0.04
  PDD0211       16.41        17.35         0.94         2.13        0.02
                59.69        62.30         2.61         3.74        0.01
                92.10        93.01         0.91        262.90       0.02
  PDD0212       21.79        22.30         0.51        27.00        0.69
                23.32        24.27         0.95        20.70        0.13
                31.73        32.60         0.87         3.82        0.00
  PDD0213       100.33       100.86        0.53         5.05        0.00
  PDD0214       43.29        43.86         0.57        29.40        0.20
  PDD0215       36.22        36.82         0.60         2.14        0.05
                104.14       105.13        0.99         2.18        0.08
  PDD0216       36.00        38.85         2.85        57.01        0.88
                51.02        51.93         0.91         2.34        0.06
  PDD0217       27.90        29.40         1.50         3.77        0.01
  PDD0218       39.17        39.80         0.63         4.91        0.42
  PDD0219       185.04       185.94        0.90        26.10        0.01
  PDD0220       238.40       238.90        0.50         4.23        0.08
  PDD0221                                  NSI
  PDD0222                                Pending
  PDD0223       26.40        27.33         0.93         4.41        0.07


(1) Average dip -45 degrees to -50 degrees

(2) NSI = no significant intersection



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