First day of Dealing

Serabi Mining plc
10 May 2005



                               Serabi Mining plc

                    First Day of Dealings on AIM and Placing

Serabi Mining plc ('Serabi' or 'the Company') is pleased to announce its
flotation on the Alternative Investment Market ('AIM') of the London Stock
Exchange. The Placing has raised approximately £7 million (net of expenses) for
the Company. The proceeds will be used to fund the expansion and development of
the Company's assets in Brazil, including the expansion of the Palito Gold Mine
and the evaluation of the Company's exploration project portfolio.

Serabi shares are to be traded on AIM under the symbol SRB.


Graham Roberts, Chairman of Serabi, said:


'Admission to AIM is the culmination of more than 5-years private development by
the Company's founders, that recently led to the commissioning of the Palito
Gold Mine. Following admission to AIM Serabi will escalate the development of
its projects in the Tapajos region of Brazil, principally through:
          
     -    expanding resources and production at the Palito underground gold
          mine;
          
     -    introducing productivity and efficiency measures at the Palito Gold
          Mine;
          
     -    further evaluating the Company's project portfolio at the Palito Mine, 
          the neighbouring Jardim do Ouro district and the mineral potential of 
          the Tapajos region; and
          
     -    assessment and acquisition of additional projects in the Tapajos
          region

The combination of a strong financial position through the Placing and growing
operating cash flow, an attractive asset base and a proven operating team, bodes
well for further success and the creation of value for Serabi's shareholders in
the near as well as longer term'.

Details of the Placing:

Placing Price                                                     30 pence
Number of new Ordinary Shares being issued pursuant to the        26,666,667
Placing   
Market capitalisation at the Placing Price                        £30.9 million
Number of Ordinary Shares in issue on Admission                   102,991,636
Percentage of enlarged issued share capital subject to the        25.9%
Placing   
Gross proceeds of the Placing                                     £8 million
Net proceeds of the Placing                                       £7 million

Background


   • Serabi was formed in May 2004 as the holding company of Serabi Mineracao, 
     a Brazilian company with an operating gold mine and over 100,000 hectares 
     of gold exploration project interests in the Tapajos region of
     northern Brazil.

   • It has been estimated that extensive artisanal operations carried out until 
     recently across the Tapajos region, may have extracted up to 30 million 
     ounces of gold, making this one of the world's most significant gold
     provinces but with hard rock mining hitherto remaining largely undeveloped.

   • Brazil produces over 70 mineral based commodities and Brazilian gold
     reserves are estimated to be approximately 1,170 tonnes.

   • In 2001 Serabi acquired the Palito gold project in the Tapajos region of
     northern Brazil and in 2002 built a new retreatment plant to process the
     tailings from previous artisanal mining in the area. In 2003 the plant
     produced about 3,000 oz of gold bullion.

   • Subsequently Serabi has established the Palito Gold Mine, a newly
     commissioned underground mine extracting high-grade gold and copper 
     sulphide ore. Development of the underground mine commenced in late 2003, 
     with regular gold sales recommencing in late 2004.

   • The processing plant at the Palito Gold Mine is currently being upgraded
     and expanded, increasing potential gold production from approximately 
     20,000 to 25,000 oz in 2005 to in excess of 45,000 oz in 2006, with the 
     objective of increasing this further in 2007 subject to results and 
     additional detailed mine planning.

   • The Company also has interests in eight exploration projects in the Jardim 
     do Ouro district adjacent to the Palito Gold Mine and a further nine
     projects elsewhere in the Tapajos region of northern Brazil.

   • The Directors believe there is considerable potential to find and exploit 
     further gold resources across the Company's established project portfolio.

   • Further information is available at www.serabimining.com


KBC Peel Hunt is acting as Nominated Adviser and Joint Broker and Ambrian
Partners is acting as Financial Adviser and Joint Broker to Serabi. Copies of
the AIM Admission Document are available from KBC Peel Hunt Ltd, 111 Old Broad
Street, London EC2N 1PH.

10 May 2005


Enquiries:

Serabi Mining plc
Graham Roberts, Executive Chairman           Tel: [phone]
                                             Mobile: [phone]
Clive Line, Finance Director                 Tel: [phone]
                                             Mobile: [phone]

KBC Peel Hunt
David Davies / Matt Goode                    Tel: [phone]

Ambrian Partners
Richard Chase / Roger Clegg                  Tel: [phone]



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