Exploration Update

Serabi Mining plc
13 September 2006

SERABI MINING: EXPLORATION UPDATE - SEPTEMBER 2006



Serabi rolls out exploration programme.  Results at Jardim do Ouro point to
growing potential near to the Palito operation, while regional exploration gets
underway with a potential new discovery at Sucuba.



Serabi Mining plc ('Serabi' or the 'Company') reports progress and results from
its exploration programme being carried out across the Company's portfolio of
projects in the Tapajos region of northern Brazil.



Highlights include:

Improved exploration facilities, equipment and increased budget provides strong 
basis for expanded exploration programme

Expanded geochemical survey highlights additional targets at Jardim do Ouro 
which are expected to form the basis for new drill targets

Geological survey and geochemistry results indicate new targets at Rio Novo 
South, 5 km directly along strike of the Palito Main Zone mineralisation

Situated near the Palito Mine, drilling of a major coincident geochemical and 
geophysical anomaly at the Bill's Pipe project intersects massive sulphides, 
with anomalous gold and copper grades

Initial drill results at Ruari's Ridge return attractive gold and copper grades

Located 10 km west of Palito, drill results from the recently discovered Sucuba 
project indicate the occurrence of a poly-metallic deposit

Drilling at Pombo confirms the presence of a wide mineralised structure, with 
indications of porphyry associated alteration at depth



This review excludes ongoing geological and drilling work currently being
carried out on the Palito Main Zone, location of the Company's Palito mine,
which will be reported on after the end of the year.





Results and Outlook

The exploration programme is focused on two strategic goals in order to provide
short/medium and longer term growth potential. Corresponding to this approach
the programme is divided into two areas:

1.       Jardim do Ouro - the district immediately adjacent to the Palito mine.
Prior to its listing Serabi had identified a number of advanced projects that
show good resource potential and could become satellite deposits feeding the
Palito operation.

2.       The Tapajos - the region in which Palito is situated has historically
hosted extensive artisanal gold production from alluvial and weathered bedrock
sources. The region exhibits a wide variety of prospective geological settings,
which includes the potential for large tonnage, low-grade style deposits, in
addition to other Palito-type, high-grade gold mineralisation.





Jardim do Ouro



Situated immediately adjacent to the Palito mine, the focus of the current work
programme across the Jardim do Ouro district can be summarised as:

Additional, detailed geochemistry and geology of known anomalies and projects: 
Central Jardim do Ouro area, Ruari's Ridge, Chico do Santo

Extension of established geochemistry to adjacent areas: Buruti and Kubanacan 
situated between Palito Main Zone and Rio Novo South.

Preliminary geochemistry and geological survey of new targets: Rio Novo South

Detailed assessment of known garimpeiro workings: Chico do Santo, Rio Novo South

Preliminary drilling of known targets: Bill's Pipe, Copper Hill, Ruari's Ridge 
and Rio Novo South





Geochemistry

Detailed infill auger sampling across the main Palito and Jardim do Ouro area
has greatly improved the definition of significant gold anomalies, in particular
at Bill's Pipe and Ruari's Ridge.  Further evaluation of the anomalies is being
undertaken and where warranted diamond core drill programmes will then be
undertaken.



    Jardim do Ouro - Project locations, geochemistry and geophysical results


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Some 5 km south-east and on strike from the Palito mine, work has started at the
Rio Novo South project. An area of previous garimpeiro workings, a detailed
assessment and sampling of the old shafts has confirmed the presence of
extensive gold mineralisation.  A 20 line-km geochemical survey has recently
been completed over the area, identifying widespread gold and copper values at
two locations, which remain open and will now be followed up by additional
geochemistry and a short drill programme.



           Rio Novo South - Project location and exploration overview


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Bill's Pipe

Geochemistry, induced polarization and magnetic surveys previously highlighted
the presence of a major anomaly located approximately 0.50 km north of the
Palito Main Zone, known as the Bill's Pipe project. A series of trenches across
the centre of the anomaly returned good gold grades, which included 2.0 m at
17.56 g/t gold and 1.50 m at 10.75 g/t gold:


                                                           Sample
             Trench                        Length (m)               Gold Grade (g/t)
               09                               4.00(1)                   9.43
                                                2.00                      1.11

               21                               1.50                      4.50
                                                3.50(2)                   5.27

               22                               1.00                      2.48

           (1) Includes 2.00m @17.56g/t: (2) Includes 1.50m @10.75g/t



Following the arrival of additional surface rigs, a limited drill programme was
subsequently carried out at Bill's Pipe, with gold mineralisation encountered on
structures similar to that at the nearby Palito mine. This programme will be
continued, subject to interpretation of the results and further geophysical
work.


                                                      Intersection

           Drill Hole                    Length (m)               Gold Grade (g/t)

           PDD 212 *                        0.51                        27.00
                                            0.95                        20.70

            PDD 215                         0.60                        2.14
                                            1.99                        1.56

            PDD 217                         1.50                        3.77

            PDD 236                         0.71                        5.70

            PDD 238                         1..50                       3.33

                             * previously announced



      Bill's Pipe Project - Geochemistry, drill hole and trench locations

            Bill's Pipe Project - Cross section A looking north west


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Ruari's Ridge

Located 0.50 km south-west of the Palito Main Zone, Ruari's Ridge project is the
location of a strong gold geochemical anomaly, situated on the flank of a
significant magnetic geophysical high. Drilling has recently started at this
location, with the first hole encountering massive sulphides at depth and
returning encouraging assay results. The drill programme will be continued to
test the strike and depth extensions of the anomaly.


                                                   Intersection
     Drill Hole             Length (m)          Gold Grade (g/t)        Copper Grade (%)
       PDD 255                 1.00                   6.37                     ns

                               0.62                   2.69                    0.913



      Ruari's Ridge Project - Exploration results and drill hole locations


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Tapajos



For the first time Serabi is able to report progress from the company's
exploration programme outside of the Jardim do Ouro / Palito district in the
Tapajos region.



Sucuba

Detailed geochemistry and follow-up drilling has identified a new project area
approximately 10 km west of Palito.  Although nearby, this area has not
previously been considered part of the established Palito mining district,
though any potential resource could easily be transported to Palito for
processing.



Approximately 14 line-km of multi-element geochemistry has identified a number
of gold and copper anomalies, the most significant being an area striking
East-West, some 800 metres by 150 metres, centred on a small garimpeiro pit.
Subsequent drilling has confirmed the occurrence of a poly-metallic structure,
which will now be further evaluated along strike and at depth.



Regional mapping and geochemistry is underway, with a planned ground magnetics
and radiometric survey to better define the geology and potential for similar
targets situated at the edge of an inferred magnetic basic intrusion.


                                                 Intersection

   Drill Hole       Length (m)       Au g/t        Ag g/t          Pb %            Zn %
     FS 001            1.77(1)        6.43          4.38           0.43            0.57

                       0.50           5.04           ns             ns              ns
                       0.93           3.84           ns             ns              ns

     FS 002            1.82           3.26           ns             ns              ns
                       0.69           5.33           ns             ns              ns
                       0.50           1.17           ns             ns              ns

                          (1) Includes 0.50m @20.42g/t



Sucuba Jardim do Ouro and Rio Novo South - Geochemistry overview

Sucuba Project - Geochemistry and drill hole locations

Sucuba Project - Cross Section looking east


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Pombo

At the end of 2005 Serabi acquired an option over the Pombo project, situated in
the neighbouring state of Mato Grosso, some 500 km south of Palito. Extensive
work had already been undertaken at Pombo, which is considered to have a number
of geological similarities with Palito.  Serabi has been drilling along the main
West-East structure, with results confirming extensive gold-copper
mineralisation across the central section (FP 001), which included gold values
of 0.98 m at 13.99 g/t and 0.62 m at 9.83 g/t.  Unfortunately due to difficult
ground conditions a number of early holes were not completed and a larger
drill-rig was relocated to overcome this problem.



Drilling has now moved west and east of the central mineralised section, where
initial holes completed some 100-150 m along strike indicate continuing strong
alteration with associated sulphide mineralisation.


       Drill Hole                                  Intersection
                              Length (m)              Au g/t                 Cu %
         FP 001                16.41(1)                2.28                  0.174

         FP 002                  6.87                  1.12                   ns
                                 0.96                  2.57                   ns

        FP 004A                  1.46                  3.72                  0.040

(1) Includes 9.95m @ 3.5 g/t Au and 0.230% Cu and 4.46m @ 6.69 g/t Au and 0.505% Cu



            Pombo Project - Channel samples and drill hole locations

              Sucuba Project - Cross section A looking north east


http://www.rns-pdf.londonstockexchange.com/rns/8633i_-2006-9-12.pdf


Two kilometres north of the Pombo main vein, at an area named Guido,
hydrothermally altered rocks with disseminated pyrite and chalcopyrite outcrops.
The occurrence of abundant magnetite, goethite, hematite and specularite in the
associated veins, indicates that the area could hold potential for porphyry
copper type mineralization.





Other



Serabi has extensive project interests throughout the Tapajos gold region and is
now embarking on a systematic programme of their evaluation.  In this regard a
further assessment of projects has recently commenced in order to refine project
priorities, using the existing database and, where warranted, on-the-ground
geology and follow-up geochemistry and geophysics. As part of this a preliminary
field assessment of the Jutai project has recently commenced confirming previous
resource estimates in saprolite with preliminary metallurgical work detailing
the metallurgical characteristics of the ore. Previous Rio Tinto work
highlighted a saprolite resource of 4.4 Mt at 0.60g/t gold associated with a
basic igneous intrusion.



Commenting on the exploration progress made during 2006, Graham Roberts,
Chairman of Serabi said:

'With an extensive project portfolio and comprehensive facilities now
established, the expansion of exploration across Jardim do Ouro and the Tapajos
marks an important phase in the development of Serabi, providing growth
potential in the short, medium and long term.  We now expect this programme will
gather pace, with the objectives of continuing resource expansion at the Palito
mine, starting to define resources on other Jardim do Ouro projects and
delivering outline economic potential at other Tapajos projects.'





Enquiries



Serabi Mining plc                          Parkgreen Communications
Graham Roberts       Tel: [phone]    Simon Robinson    020 7493 3713
Chairman             Mobile: [phone]

Clive Line           Tel: [phone]    Ana Ribiero       020 7493 3713
Finance Director     Mobile: [phone]                   [e-mail]

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



For a full version of this press release please visit our website.



NOTES TO EDITORS

General Background Notes

Since listing on the AIM market of the London Stock Exchange last year the work
programme initially focussed on expanding the resource base at the Company's
mining operation at Palito, successfully achieving a 74% increase on the global
resource at December 31 2005 to 825,900 ounces gold equivalent (see Press
Release, 14 February 2006). In the meantime, management has been active putting
in place the facilities to undertake an aggressive exploration and evaluation
programme across the Company's extensive regional project portfolio, which
exceeds 100,000 hectares. By the end of the first quarter 2006 the Company had
increased it's surface diamond drilling capacity and improved the associated
geological and laboratory facilities, in anticipation of an expansion of
exploration activities which is now taking place at a number of projects.

As part of the expanding exploration effort, Serabi took delivery of two new
surface diamond core drilling rigs earlier this year. As a result the company
now owns and operates four rigs, which are currently deployed at Palito, Jardim
do Ouro, the Sucuba project and the Pombo project. Additional crews have been
recruited and trained to increase rig utilisation. In addition, extensive
geological and geochemical work is underway at a number of locations. Ground
magnetics and radiometric surveys will also be utilised in the future to improve
drill targets.



The Tapajos is a major, under-explored mineral province that extends over an
area about the size of Belgium.  Artisanal miners ('garimpeiros') are thought to
have extracted up to 30 million ounces of gold from mostly alluvial and surface
weathered bedrock deposits since the 1970's. The company is currently
establishing production at its 100% owned underground Palito Gold Mine. Serabi
intends to expand resources organically through its existing project portfolio
across the region.

Serabi's portfolio of exploration properties includes a number of relatively
advanced projects in the Jardim do Ouro ('Garden of Gold') district around the
Palito Gold Mine and other projects elsewhere in the Tapajos region, which are
at an earlier stage of assessment. Serabi has access to an extensive exploration
database from Rio Tinto plc ('Rio Tinto') which covers much of the Tapajos
region. This data continues to be assessed and could form the basis of further
acquisitions.




                      This information is provided by RNS
            The company news service from the London Stock Exchange