Ore Reserve and Mineral Resource Update

PALITO ORE RESERVE & MINERAL RESOURCE UPDATE

Serabi Mining plc ("Serabi" or the "Company") announces an update of
mineral resources at its 100% owned Palito gold mine in Para state,
northern Brazil and, for the first time, reports an ore reserve for
the mine.

*           Mineral resource of 0.67 million total contained gold
  equivalent ounces established at the Palito gold mine
*           Based on 25 mineralised structures, the resource
  definition has expanded to encompass three new mineralised areas
  discovered during the past year
*           Ongoing exploration demonstrates possible further
  significant extension of a number of the mineralised veins, which
  also remain open
*           Contained within the resource estimate, a total proved
  and probable ore reserve of 187,538 ounces gold equivalent
  established
*           Mineral resource and ore reserve reported in this release
  have been reviewed and verified by the mining consultancy group NCL
  Brasil Ltda

Mineral Resources

The total mineral resource at the Palito mining operation, including
all categories as at 31st March 2008, has been estimated at 0.67
million ounces of gold equivalent, assuming a 1.0 g/t cut-off.  These
resources are based on extensive surface and underground drilling
combined with sampling results from underground development.  Within
the 0.67 million ounces of mineral resources, 224,300 ounces of gold
equivalent occur in the higher confidence Measured and Indicated
categories, with the balance in the Inferred resource category.

Details of the resource estimation as at 31st March 2008, are tabled
below with mining depletion up to 31st March 2008 taken into
account.

Table 1: Serabi Mining plc Mineral Resource Statement (1) (2) (3)
(5), as at 31 March 2008

Mineral                                   Contained   Contained Gold
Resource      tonnage   Gold g/t Copper % Gold Ounces Equivalent
                                                      Ounces (4)
Measured
Resources
Palito Main   97,448    9.51     0.26     29,793      32,045
Zone (PMZ)
Palito West   -         -        -        -           -
(PW)
Chico da      -         -        -        -           -
Santa (CS)
Ruari Ridge   -         -        -        -           -
(RR)
Total
Measured      97,448    9.51     0.26     29,793      32,045
Resources
Indicated
Resources
Palito Main   593,175   7.15     0.23     136,417     148,546
Zone (PMZ)
Palito West   46,844    13.16    0.26     19,825      20,902
(PW)
Chico da      78,987    5.91     0.23     15,011      16,681
Santa (CS)
Ruari's Ridge 34,740    4.85     0.22     5,420       6,100
(RR)
Total
Indicated     753,745   7.29     0.23     176,673     192,228
Resources
TOTAL
Measured +    851,193   7.54     0.23     206,466     224,272
Indicated
Inferred
Resources
Palito Main   821,405   6.04     0.18     159,614     172,927
Zone (PMZ)
Palito West   200,256   8.22     0.23     52,934      57,140
(PW)
Chico da      434,664   6.01     0.23     84,036      93,100
Santa (CS)
Ruari's Ridge 631,417   4.74     0.43     96,232      120,789
(RR)
Total
Inferred      2,087,741 5.85     0.27     392,817     443,956
Resources


(1) Mineral resources are reported at a cut-off grade of 1.0 g/t
(2) The Mineral Resources as set out in the table above have been
estimated by Rodrigo Mello, from NCL, who is a competent person under
the JORC Code for mineral deposits such as Palito.  The Mineral
Resources are classified as Measured, Indicated and Inferred, in
compliance with the JORC Code
(3) Numbers may not add up due to rounding
(4) Equivalent gold is calculated using an average long-term gold
price of US$700 per ounce, a long-term copper price of US$2.75 per
pound, average metallurgical recovery of 90.3% for gold and 93.9% for
copper
(5) It should be noted that the definition of the Inferred mineral
resource category typically has lower certainty as to resource
existence and economic viability.

The mineral resource estimate outlined is based on a total of 25
different veins of a minimum 70cm width, located within the larger
mineralised sections of the Palito Main Zone (PMZ), the Palito West
zone (PW), Chico da Santa area (CS) and the Ruari's Ridge zone (RR).
Each vein has been interpreted and modelled in 3D using Gemcom
modelling software.  Samples contained within, and representative
of these modelled ore envelopes have been selected and variography
performed.  Following this, the ordinary kriging algorithm was used
to interpolate gold and copper block models.  Tonnage and grade have
then been estimated from the modelled ore envelopes and the grade
block models.

The grade block models for the different orebodies were validated by
NCL and Serabi staff, who concluded that these models were consistent
with the original geological data available.

The PMZ resource mostly consists of eight vein structures .  Two of
the eight vein structures, the G3 and G2 veins, make up the bulk of
the resource. These two veins have to date formed the majority of the
95,000 ounces gold equivalent mine production at Palito since the
beginning of 2005.  Significantly there is good evidence that both
mineralised features remain open to the south and at depth. It should
be noted that since the March 31st disclosure date further drilling
of the PMZ as well as the other zones has been completed, though we
await further assays.  To date, over 2,350 drill-hole samples and 750
underground channel samples are outstanding.  However, preliminary
visual interpretation of the drill core indicates the potential for
the PMZ to continue at least a further 300 metres to the south, and
is still open at depth.

Palito West consists of six veins which also remain open to the north
and south.  As with the PMZ, we await assay confirmation of more
recent drilling but visual interpretation of  recent drill core
indicates a potential strike extension of at least 200 metres to the
north on two of the six veins since this estimation was carried out.

The Chico da Santa area to the east of the PMZ consists of five
mineralised vein-type orebodies, and all remain open to the north,
south and at depth.  Finally the Ruari's Ridge zone comprises of
seven mineralised vein structures extending over a strike length of
up to 900 metres and with gold and copper grades down to 300 metres
depth.


Ore Reserves

Within the total mineral resource estimate, NCL Brasil Ltda has
estimated an ore reserve of 187,500 ounces gold equivalent,
comprising of 732,500 tonnes @ 7.34 g/t gold and 0.22% copper.  It
should be noted that these reserves are derived from the Measured and
Indicated resource categories within the Total Mineral Resource of
0.67 million ounces tabulated above, and are NOT additional.

In reporting an ore reserve at Palito for the first time, it is
important to note the parameters adopted at the base of the table.


 Table 2: Serabi Mining plc Ore Reserve Statement (1) (2) (3) (5) as
at 31 March 2008

                        Gold     Copper Contained   Contained Gold
Ore Reserve     tonnage (g/t Au) (% Cu) Gold Ounces Equivalent Ounces
                                                    (4)
Proved Reserves
Palito Main     56,464  9.06     0.29   16,456      17,910
Zone (PMZ)
Palito West     -       -        -      -           -
(PW)
Chico da Santa  -       -        -      -           -
(CS)
Ruari's Ridge   -       -        -      -           -
(RR)
Total Proved    56,464  9.06     0.29   16,456      17,910
Reserves
Probable
Reserves
Palito Main     547,535 6.92     0.22   121,904     132,614
Zone (PMZ)
Palito West     54,642  10.85    0.2    19,063      20,063
(PW)
Chico da Santa  55,485  6.52     0.23   11,639      12,786
(CS)
Ruari's Ridge   18,365  6.39     0.24   3,773       4,166
(RR)
Total Probable  676,028 7.19     0.22   156,379     169,628
Reserves
TOTAL Proved +  732,492 7.34     0.22   172,836     187,538
Probable


(1) Ore reserves are reported at a cut-off grade of 4.7 g/t.  2007
and 2008 year to date costs have been assumed.  An exchange rate of
US$1 = R$1.90 has been considered over the reserve life
(2) Minimum mining widths of 1.2m have been assumed
(3) The Ore Reserves as set out in the table above have been
estimated by Carlos Guzmán, from NCL, who is a competent person under
the JORC Code.  The Ore Reserves are classified as Proved and
Probable, in compliance with the JORC Code
(4) Equivalent gold is calculated using an average long-term gold
price of US$700 per ounce, a long-term copper price of US$2.75 per
pound, average metallurgical recovery of 90.3% for gold and 93.9% for
copper
(5) Numbers may not add up due to rounding

Commenting on the resource and reserve update Mike Hodgson, Chief
Executive Officer of Serabi Mining plc said:

"This is the first disclosure of an ore reserve at the Palito
Operations, and it better positions the company to plan future
production, and at current production rates indicates a minimum
approximate mine life of a further 4 years.  NCL Brasil Ltda have
been working with Serabi at Palito since last year in order to review
the Company's resources, related practices and mine planning.  Their
expertise, combined with that of our in-house technical team, applied
in this resource and reserve estimation, further underpins our
production planning and outlook.

Meanwhile, exploration success is continuing at Palito and
significant drilling undertaken since the 31 March review
demonstrates strike and dip extensions of known orebodies already in
production at the mine and we  are therefore confident that both
the mineral resource and ore reserve can continue to grow.  As all
the known structures at Palito are sub-vertical dipping mineralized
veins, it makes commercial sense to drill these structures to a
limited depth and then further evaluate from underground mine
workings at a later date once the relevant upper levels have been
developed.  It is therefore unrealistic to drill out these types of
deposits to completion but it is not unusual to see them continue to
operate over many years."


Qualified Person's Statement

The information contained within this press release has been reviewed
and verified by Mr Rodrigo Melo for the resource estimate and by
Carlos Guzmán for the reserve estimate, both of NCL Brasil Ltd.

Both meet the requirements as the Qualified Person for the purposes
of the AIM Guidance Note on Mining, Oil and Gas Companies dated March
2006.  Mr Melo is a Bachelor of Geology for the University of Minas
Gerais, Brazil (1985).  He is a member of the Australasian Institute
of Mining and Metallurgy (membership number 209332) and a registered
Geologist with the Regional Council of Engineering.  He has worked as
a geologist and project manager in the minerals industry for 22
years.  Mr Guzmán is a Mining Engineer for the Universidad de Chile,
Santiago, Chile (1995).  He is a member of the Australasian Institute
of Mining and Metallurgy (membership number 220036). He has worked as
a mining engineer for 13 years.

NCL is a consulting company formed in Santiago, Chile in 1985. Its
main objective is to provide focused advice and solutions for mining
companies requiring specialised services mainly in the fields of ore
resources estimation, mine design and planning (for open pit and
underground methods), mine equipment selection, optimisation of
mining operations and mining cost estimation. In 2001, NCL formed NCL
Brazil Ltda, a company established in Belo Horizonte, Brazil.

A PDF version of this release can be accessed by clicking on the link
at the end of this release

Enquiries

Serabi Mining plc
Graham Roberts       Tel: [phone]
Chairman                     Mobile: [phone]

Mike Hodgson          Tel: [phone]
Chief Executive            Mobile: [phone]

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

Numis Securities Limited
John Harrison            Tel: [phone]
Nominated Adviser

James Black              Tel: [phone]
Corporate Broker

Farm Street Communications
Simon Robinson         Tel: [phone]



Notes to Editors

The Tapajos region of northern Brazil encompasses an area of
approximately 100,000 km², primarily situated in south-west Para
State. It has a significant history of alluvial gold production with
estimated gold production of some 30 million ounces having being
recovered, primarily from artisanal workings.

Present in the Tapajos since 1999, Serabi has established the only
'hard rock' mine in the region to date at its Palito gold mine.

Serabi has a significant exploration programme focused on the Tapajos
region, operates four surface drilling rigs and has its own assay
laboratory.

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