Quarterly Investor Update

Serabi Mining plc
19 April 2006


SERABI MINING QUARTERLY INVESTOR UPDATE

Serabi Mining plc advises that it has today despatched to shareholders its
quarterly investor newsletter for the First Quarter of 2006.

The Company has highlighted in its newsletter the following matters. The full
text version of the quarterly update is available from Serabi's offices or from
the Company's website www.serabimining.com.
     
•    Record quarterly production of 7,927 oz gold equivalent, a 43% increase 
     over the fourth quarter of 2005

•    74% year-on-year increase in total resources at Palito Gold Mine to 825,900 
     ounces gold equivalent

•    Set for growth: decline development completed, critical equipment and 
     facilities in place

•    Grid electricity and other important capital projects finished, resulting 
     in major cost savings

•    Regional drilling underway, results imminent


                                   Palito - Operating Results (1)
                                           2005                   2005                 2006
                                            Q1                     Q4                   Q1

Mined                    t                9,964                  23,453               31,555
(per day)                                 (110)                  (255)                 (351)

Milled                   t                8,222                  21,415               25,514
(per day)                                  (92)                  (233)                 (283)

Head Grade              g/t                9.3                    7.7                   9.3

Recovery                 %                 84.2                   91.8                 91.9

Gold                    oz                2,077                  4,837                 7,017

Copper                   t                 22.4                   74.7                 98.0

Gold                    oz                2,262                  5,528                 7,927
Equivalent(2)


(1) Provisional   (2) Includes copper and silver



PALITO MINE

Mining

The improvement in mining rates seen at the end of 2005 continued in the first
quarter of 2006, leading to a 35% increase in tonnes mined over the fourth
quarter of last year. This increase resulted from several factors which included
more efficient ore scheduling and handling, the discovery and mining of new
areas and the use of more productive mining methods.

Phase 1 of the decline, which commenced in December 2005, was completed to
192mRL elevation at the end of February. Development drives along the strike of
the orebody subsequently began in March. The impact of this important initiative
will become more evident during the next two quarters, both in terms of higher
tonnages and eventually grade, although daily mining rates have already shown a
marked improvement to above 400 tonnes by the end of March. Following completion
of the development drives from the decline, initially on the higher 210mRL
elevation, the 'new' longhole mining method will commence and is expected to
have a major impact on production later in the year. However, in the meantime a
hybrid longhole-shrinkage method is already being used in suitable areas of the
existing mine with noticeable benefits to production.

Plant

Phase 2 of the previously outlined process plant upgrade (see September &
December Investor Updates) was completed during the March quarter. Primarily
this involved the introduction of a third ball mill and a number of improvements
throughout other parts of the plant. The resulting daily plant capacity is now
rated at approximately 350 tonnes. With the success in achieving much higher
mining rates, the focus is now back on the process plant. Further
de-bottlenecking projects should lead to daily capacity of 400 tonnes from the
plant by the end of the second quarter of this year.

Commercial Production

At the time of Serabi's IPO, the Board set a variety of operating and financial
targets that the Palito Gold Mine had to achieve over a period of three months
in order to declare 'commercial production'. As an operation in development,
costs associated with mining are currently being capitalised on Serabi's balance
sheet. As a result of investments in grid electricity, the decline, mechanised
mining equipment and other productivity enhancing initiatives, management
expects to declare commercial production in the third quarter of 2006. At that
point, Serabi will report total cash costs under the Gold Institute Standard
methodology and on this basis, is targeting a total cash cost of US$200 per
ounce by the end of 2006.


TAPAJOS EXPLORATION UNDERWAY 

Serabi owns and operates its own exploration drills, which completed a total of
18,235 metres of drilling in 2005. In order to undertake regional project
evaluation, two additional surface drill rigs were ordered in 2005 and, in the
meantime, new drill crews have been trained alongside experienced drillers.
Early in 2006 the two additional surface rigs arrived and for the first time
drilling has commenced at projects other than Palito. In addition, the Company
has significantly expanded its support facilities for exploration and drilling
to deal with the anticipated substantial increase in samples, in particular
within the geology department and the assay laboratory. As a result, Serabi is
now well positioned to evaluate its extensive project portfolio. With several
exciting prospects identified, it has been decided to increase the exploration
budget for 2006 from US$2.6 million by up to a further US$3.0 million.


CORPORATE

Management recently decided to implement several additional optimisation
projects at Palito with a total investment of up to US$3.0 million identified.
In addition, the planned 2006 exploration budget will be increased from US$2.6
million by up to a further US$3.0 million, in order to accelerate the evaluation
of Serabi's portfolio of projects. To assist with the funding of these
initiatives, the Company successfully raised net proceeds of US$4.3 million at
the end of March, through the issue of 6.5 million shares with a number of
institutions, at a price of 40p.



Enquiries: Serabi Mining plc

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

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

Chris Sattler                                Tel: [phone]
Investor Relations                           Mobile: [phone]

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



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