Drilling Update

Serabi Mining plc
09 September 2005

                               SERABI MINING PLC

                                DRILLING UPDATE


Results point to continuing improvements to the Palito mine resource and
------------------------------------------------------------------------
important areas of new mineralisation
-------------------------------------

At the time of the Serabi's public market listing on the London AIM, the
resource assessment by independent consultants Snowden reflected drill results
to the end of 2004. These consisted of 74 drill holes, from which a preliminary
global resource was calculated of 1,176,000t grading 11.0g/t gold and 0.60%
copper estimate (approx. 460,000oz gold equivalent) on the Palito Main Zone
(PMZ). The resource could only be established where there was sufficient drill
density at that time, which resulted in an area defined by approximately 900m
strike and 90m depth; Snowden indicated in their report that the PMZ orebody
remained open at depth and along strike.

Subsequent drilling to improve knowledge of the potential resources is well
ahead of the scheduled 12,000m originally reported in the listing prospectus
for the entire year 2005. Using the company's own drill rigs, an additional 66
boreholes or 10,697m have been completed over the first seven months of the
year.

Given the open nature of mineralisation indicated by the previous assessment,
the main targets for this drilling have been:
    (i) to increase the size, quality and knowledge of the resource with
        infill drilling;
   (ii) to expand the strike and depth extension of the resource beyond the 
        currently established boundaries;
  (iii) to test ground nearby to the PMZ for potential parallel lodes, and
   (iv) sterilisation drilling for planning the construction of new capital
        projects

Table 1: Drilling progress summary at the Palito operation

To December 31, 2004
Area                               Drillholes            Metres
Palito Main Zone Resource (1)              74             9,892
Chico do Santo                              7               993
Palito West                                 5               560
Other                                       8             1,679
-------------------               -------------     -------------
SUB TOTAL                                  94            13,124
-------------------               -------------     -------------

From January to August 2005
Area                               Drillholes            Metres
Palito Main Zone - Infill                  27             4,239
PMZ - Strike Extensions                    12             1,896
PMZ - Depth Extensions                     19             3,028
Compressor Lode                             4               982
Sterilisation                               4               552
-------------------               -------------     -------------
SUB TOTAL                                  66            10,697
-------------------               -------------     -------------
GRAND TOTAL                                160            23,821

(1) Used for CPR resource calculation & includes earlier non Serabi drilling
Average dip is between 45 degrees and 50 degrees

The accompanying Table 2 summarizes the results for the drilling that has taken
place since the previous review by Snowden. These results continue the trends of
earlier drilling, including the intersection of very high-grade values, which it
is anticipated will provide a good basis to improve the resource base. The
drilling has also identified new mineralisation immediately adjacent to the PMZ,
christened the Compressor Lode, which could provide good additional potential
for ore that can be accessed from the infrastructure currently under development
on the PMZ.

As part of the continuing assessment of the Palito resources, these and future
drill results will continue to be reviewed by independent consultants Hellman &
Schofield and Snowden, for incorporation into ongoing mine planning and resource
evaluation.


Palito Main Zone - Infill Drilling (established resource area)
--------------------------------------------------------------

Drilling within the resource area established by the most recent resource
assessment by Snowden up to December 2004 (approx. 900m strike x 90m depth) has
continued to provide good results, which will be incorporated into the next
resource update. Noteworthy amongst these are:

    Drill hole    Intersection
    SER 090       3.84m at 36.8g/t
    SER 092       1.05m at 34.8g/t
    SER 096       1.11m at 56.7g/t
    PDD 100       0.78m at 57.3g/t
    PDD 112       0.94m at 27.5g/t
    PDD 117       5.62m at 26.5g/t
    PDD 127       1.08m at 59.5g/t
    PDD 149       1.0m at 46.9g/t & 1.27m at 27.5g/t

Some of these results came from below the 155mRL elevation (approx. 45m below
ground level at Shaft 1), which previously formed the lowest level for the
majority of the Snowden's resource calculation. In addition, there are numerous
further intersections that exceed the break even cut-off grade of 5.0g/t gold
(6.00g/t gold equivalent) used by Snowden in their Competent Person's Report
(CPR).

Following the arrival of new underground drill rigs that are on order, it is
expected the rate of infill and general mining control drilling will be
significantly improved later this year.


Palito Main Zone - Depth Extension
----------------------------------

A number of exceptional drill results have been obtained from drilling focussed
mainly on potential mineralisation below the existing resource area, although
good results were also obtained higher up in some of these holes too (see Other
Drilling). Included in these results are:

   Drill hole    Intersection
   PDD 089       0.88m at 66.0g/t
   SER 093       1.87m at 34.6g/t & 1.0m at 70.0g/t
   PDD 095       2.0m at 57.6g/t
   PDD 107       1.51m at 29.4g/t & 0.75m at 29.7g/t
   PDD 113       0.88m at 43.0g/t & 0.92m at 76.5g/t
   PDD 123       2.67m at 22.7g/t
   PDD 126       2.10m at 73.3g/t
   PDD 131       1.28m at 36.5g/t
   PDD 135       1.59m at 41.6g/t & 1.0m at 79.5g/t

While the main control of mineralisation is known to be along structures
trending NW-SE, it was previously postulated that the same mineralised zones
would also plunge steeply to deeper levels. These new holes and some of the
deeper intersections from other holes are considered highly significant in
establishing this trend at depth and, together with ongoing drilling of these
targets, will form the basis for long-term planning of the deeper areas of the
Palito mine. Resulting from this work the number of drill intersections below
the 145mRL depth since the December resource calculation has now increased from
4 to 30.


Palito Main Zone - Strike Extension
-----------------------------------

As previously mentioned, the main control of mineralisation at Palito is a
regional NW-SE trending fracture zone. The initial resource was established over
a strike length of 900m but the PMZ veins and associated alteration system are
known to extend to at least 1,600m. To evaluate this potential, step-out
drilling has now commenced along strike of the established PMZ resource area.
Results from this initial work are very encouraging and include:

   Drill hole    Intersection
   PDD 099       0.66m at 32.7g/t
   PDD 103       0.88m at 20.3g/t & 1.81m at 11.9g/t
   PDD 106       1.00m at 42.9g/t

These results and other intersections extend the strike length of mineralisation
(at a cut-off of 5.0g/t Au and above) by 120m north-west and 100 metres to the
south-east of the established resource area, whilst still remaining open in both
directions.


Other Drilling
--------------

Other drilling has also established a potential area of new mineralisation
nearby to the PMZ, and a series of sterilisation holes have been carried out 
prior to the start of important capital projects.

A combination of intersections from some of the infill drilling and other
specifically targeted boreholes, have identified an important new area of
mineralisation to the southwest of the PMZ orebody, now referred to as the 
Compressor Lode, with the intersections indicating good continuity. Preliminary 
results from this programme include:

   Drill hole    Intersection
   SER 091       0.70m at 33.7g/t
   SER 093       1.87m at 34.6g/t
   PDD 123       2.67m at 22.7g/t
   PDD 135       1.59m at 41.6g/t
   PDD 145       0.84m at 35.0g/t
   PDD 147       0.88m at 29.7g/t

While more drilling needs to be undertaken to evaluate this area, these results
point to a significant new area of mineralisation, within close proximity to the
existing underground mine that could be potentially exploited from the 
underground infrastructure currently being developed. These drill results define
a new high-grade zone over a strike length of 120m and a depth of 55m, with the
mineralisation remaining open in both strike directions and at depth.

The Chairman, Graham Roberts said,
'Drill results from the first half of the year continue to establish and expand
the potential of the Palito mining operation. On the Palito Main Zone the
results are slowly extending the strike of the known orebody, while additional
mineralisation has now been intersected as deep as 200m. Furthermore,
identification of the new Compressor Lode illustrates the potential across the
wider area of the Palito operation.

We are already assimilating this information into operational planning and
expect to commence a review of the resource base at the end of the year. The
pace of evaluation of all these areas and at other regional projects is expected
to increase in the near future, as additional new surface and underground drill
rigs already on order are delivered and deployed.'


Enquiries: Serabi Mining plc
----------------------------

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

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

Chris Sattler, Manager, Corporate Development
Tel: [phone]
Mobile: [phone] 
E-mail: [e-mail]

                                    APPENDIX

Table 2: Drill results at the Palito operation post resource calculation -
January to August 2005


           From      To            Length
Hole ID 1  (metres)  (metres)      (meters) 2   Grade g/t
SER086                             NSI
SER087     20.77     21.63         0.86         4.03
           155.11    155.61        0.50         2.12
SER088                             NSI
PDD089     150.47    151.35        0.88         66.00
SER090     30.62     31.50         0.88         5.61
           49.11     52.11         3.00         9.59
           54.11     57.95         3.84         36.75
           59.78     60.23         0.45         2.09
SER091     19.27     19.97         0.70         33.70
           118.40    119.38        0.98         3.83
           128.47    129.17        0.70         2.03
SER092     39.64     40.60         0.96         2.06
           55.06     56.11         1.05         34.80
           73.38     74.40         1.02         2.91
SER093     61.88     63.16         1.28         7.71
           71.33     73.20         1.87         34.57
           129.43    130.43        1.00         70.00
           150.70    151.97        1.27         2.71
PDD094     49.55     50.15         0.60         3.10
PDD095     46.28     49.26         2.98         3.62
           62.58     63.58         1.00         2.77
           68.43     69.43         1.00         4.08
           99.03     101.03        2.00         57.60
           152.98    153.48        0.50         11.95
PDD096     34.92     35.70         0.78         5.38
           38.92     40.03         1.11         56.70
PDD097     45.51     46.57         1.06         4.84
           109.88    110.67        0.79         2.01
           113.58    114.71        1.13         2.48
           140.78    141.78        1.00         2.27
PDD098     31.20     32.02         0.82         11.65
PDD099     114.83    115.74        0.91         2.78
           131.72    132.38        0.66         32.70
           170.48    171.34        0.86         7.37
PDD100     43.85     44.63         0.78         57.30
           84.28     84.78         0.50         7.53
           98.70     99.70         1.00         5.77
           81.84     82.50         0.66         2.14
PDD101     81.84     82.50         0.66         2.14
           121.52    121.98        0.46         24.90
PDD102                             NSI
PDD103     98.12     98.72         0.60         2.20
           114.16    115.04        0.88         20.30
           125.00    125.70        0.70         2.68
           133.96    135.77        1.81         11.90
PDD104     69.50     70.50         1.00         2.76
PDD105     144.26    146.13        1.87         2.66
           147.12    148.00        0.88         2.09
PDD106     65.72     66.72         1.00         42.90
           124.13    127.00        2.87         2.79
           126.09    127.00        0.91         6.30
PDD107     71.85     73.36         1.51         29.40
           75.31     76.06         0.75         29.70
           98.77     99.33         0.56         2.20
           158.87    159.37        0.50         4.35
           173.08    173.58        0.50         9.81
PDD108     76.20     76.72         0.52         5.42
           89.20     90.20         1.00         2.25
           106.78    107.94        1.16         5.39
PDD109     71.09     72.59         1.50         2.78
           116.43    118.04        1.61         11.00
PDD110     101.20    102.37        1.17         2.37
           110.33    110.97        0.64         5.75
PDD111     37.88     39.12         1.24         6.31
           99.70     100.76        1.06         17.50
           161.46    161.96        0.50         37.20
PDD112     55.05     55.99         0.94         27.50
PDD113     113.82    114.70        0.88         43.00
           149.08    150.00        0.92         76.50
PDD114                             NSI
PDD115     22.58     24.86         2.28         2.33
           139.23    140.23        1.00         5.00
           162.84    163.84        1.00         2.00
PDD116                             NSI
PDD117     86.38     92.00         5.62         26.50
PDD118     87.33     88.54         1.21         6.34
           94.96     95.64         0.68         2.40
           141.32    141.78        0.46         2.30
PDD119     101.66    102.77        1.11         2.25
PDD120                             NSI
PDD121     53.65     54.30         0.65         28.50
           98.00     99.05         1.05         2.85
           100.71    101.63        0.92         2.75
           114.95    115.45        0.50         16.10
PDD122                             NSI
PDD123     62.09     64.76         2.67         22.80
           137.98    138.73        0.75         18.00
           210.11    211.18        1.07         9.80
PDD124     113.00    113.59        0.59         7.40
PDD125     33.42     34.02         0.60         2.30
           47.55     48.05         0.50         3.05
           52.76     53.67         0.91         5.30
           56.25     57.02         0.77         2.30
           103.31    103.87        0.56         3.75
PDD126     89.08     91.69         2.61         6.12
           93.87     95.97         2.10         73.30
PDD127     75.33     76.12         0.79         9.40
           132.00    133.08        1.08         59.50
           170.55    171.55        1.00         6.20
PDD128     29.93     30.76         0.83         2.95
           98.76     99.26         0.50         31.00
           112.04    113.33        1.29         2.75
PDD129     29.05     29.55         0.50         16.80
           80.27     81.08         0.81         4.90
           119.06    120.06        1.00         14.40
           123.50    124.42        0.92         4.70
           165.35    165.85        0.50         3.15
PDD130     107.05    108.05        1.00         2.50
           110.50    111.00        0.50         11.80
           126.75    128.15        1.40         2.55
PDD131     93.98     94.52         0.54         24.30
           120.24    121.22        0.98         6.55
           122.77    123.27        0.50         44.10
           165.00    166.28        1.28         36.50
PDD132     105.10    105.78        0.68         2.00
PDD133     84.48     85.38         0.90         6.10
           162.81    163.81        1.00         4.10
           214.39    215.30        0.91         8.70
PDD134     42.62     43.12         0.50         7.80
           69.64     70.57         0.93         3.25
PDD135     13.78     15.37         1.59         41.60
           45.25     46.57         1.32         4.35
           59.89     60.43         0.54         8.75
           67.59     69.23         1.64         6.25
           87.95     88.76         0.81         5.75
           102.83    103.75        0.92         3.75
           145.38    148.00        2.62         5.43
           149.67    150.55        0.88         9.00
           160.68    161.21        0.53         5.00
           169.98    170.98        1.00         79.50
PDD136     13.86     14.72         0.86         2.15
PDD137                             NSI
PDD138     120.54    122.14        1.60         7.02
PDD139                             NSI
PDD140                             NSI
PDD141                             NSI
PDD142     67.53     68.51         0.98         3.25
PDD143     89.29     90.21         0.92         2.20
PDD144                             NSI
PDD145     153.34    154.18        0.84         35.00
PDD146     34.16     35.03         0.87         3.25
           73.71     74.21         0.50         9.75
           93.08     94.15         1.07         2.65
           108.50    109.48        0.98         5.30
PDD147     46.10     46.98         0.88         29.70
           119.79    120.39        0.60         6.75
PDD148     33.75     34.60         0.85         2.10
           76.34     77.10         0.76         21.30
           126.93    127.60        0.67         5.10
           128.68    129.26        0.58         15.65
           135.30    135.80        0.50         4.75
PDD149     97.12     98.12         1.00         46.90
           127.66    128.46        0.80         10.80
           133.32    134.59        1.27         27.50
           136.30    136.82        0.52         2.55
PDD150     75.55     76.38         0.83         11.95
           143.63    144.13        0.50         36.15
PDD151     191.20    191.93        0.73         2.30
           204.44    204.94        0.50         4.55
           229.05    230.44        1.39         4.38


(1) Average dip -45 degrees to -50 degrees  (2) NSI = no signifcant intersection


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