Release of Q1 Financial Results and Managment D...

SERABI MINING plc
                          ("Serabi" or "the Company")



Financial Results for First quarter 2011 and Management DiscUssion and Analysys


Serabi  Mining plc  (AIM:SRB, TSX:SBI  and SBI.WT),  the Brazilian  focused gold
exploration company, advises that it has today published its unaudited financial
results  for the first quarter  of 2011 and at the  same time has also published
its  Management's Discussion and Analysis for  the same period.  Both documents,
together  with this announcement,  have been posted  on the Company's website at
www.serabimining.com and are also available on SEDAR at www.sedar.com.  The full
text  of both the financial results and Management's Discussion and Analysis are
also available by following the links contained in this press release.


Financial Highlights

+--------------------+-------------------+------------------+------------------+
|                    |  Quarter ended 31 | Quarter ended 31 |    Year ended 31 |
|                    |        March 2011 |       March 2010 |    December 2010 |
|                    |        (unaudited)|       (unaudited)|         (audited)|
+--------------------+-------------------+------------------+------------------+
|                    |                US$|               US$|               US$|
+--------------------+-------------------+------------------+------------------+
|Operating Loss for  |                   |                  |                  |
|period              |          (742,642)|         (953,599)|       (5,980,011)|
+--------------------+-------------------+------------------+------------------+
|Loss per ordinary   |                   |                  |                  |
|share (basic and    |                   |                  |                  |
|diluted)            |       (1.65) cents|      (2.91) cents|     (15.21) cents|
+--------------------+-------------------+------------------+------------------+
|                    |                   |                  |                  |
+--------------------+-------------------+------------------+------------------+
|Exploration         |                   |                  |                  |
|expenditures during |                   |                  |                  |
|the period          |          1,639,267|           305,019|         2,481,665|
+--------------------+-------------------+------------------+------------------+
|Cash at end of      |                   |                  |                  |
|period              |         11,100,828|         3,423,326|         8,598,755|
+--------------------+-------------------+------------------+------------------+
|Equity Shareholders |                   |                  |                  |
|funds at end of     |                   |                  |                  |
|period              |         54,097,874|        41,445,493|        44,351,818|
+--------------------+-------------------+------------------+------------------+


For  the three month period ended 31 March  2010 the Company recorded a net loss
of  US$742,642 (1.65 US  cents per share)  compared to a  net loss of US$953,599
(2.91 US cents per share) for the comparative period last year.  The decrease in
the  loss  reflects  reduced  administrative  costs  and a foreign exchange gain
recorded  during the period of US$187,297, compared with a foreign exchange loss
in  the comparative period of  US$1,180.  At the same  time in the corresponding
period  in 2009, the Company  had limited gold  production which yielded a gross
profit  of US$78,866.  There has been no mining operation during the three month
period  ended 31 March 2011 and as a result the Company incurred a gross loss of
US$183,822.


Operational Highlights

  * January 2011 - Completed an additional 8,000 hectare helicopter borne
    electromagnetic ("VTEM") survey over adjacent areas to the original 2008
    mine site survey area within the Jardim do Ouro project.

  * February 2011 - The Company received the positive outcome of its appeal to
    the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovaveis
    ("IBAMA") that the original penalty of Brazilian Reals 3,597,300 (~US$2.2
    million) was cancelled with immediate effect.

  * February 2011 - Positive geochemical results received from trenching over
    the Piaui drill target including 1 metre at 33.6 g/t and 3.2 metres at 16.1
    g/t (see press release 22 February 2011 for all results).

  * April 2011 - Results received for the first five drill holes into the Piaui
    target indicated significant gold mineralization in all five holes including
    1.93 metres at 22.86 g/t and 2.5 metres at 6.22 g/t (see press release 7
    April 2011 for all results).




Corporate Highlights

  * Following the completion of a private placement of 10,070,000 Special
    Warrants on 2 December 2010, for gross proceeds of C$5,538,500, the Company
    completed on 30 March 2011 an Initial Public Offering ("IPO") of 9,000,000
    units in Canada at a price of C$0.55 per share for gross proceeds of C$4.95
    million.


  * Each of the 9,000,000 units were comprised of one ordinary share and one
    half warrant of one ordinary share purchase warrant of the Company, with
    each warrant being exercisable to acquire one Ordinary Share at an exercise
    price of C$0.75 until 2 December 2012.


  * The completion of the IPO and the listing of the Ordinary Shares and
    Warrants on the TSX on 30 March also resulted in the automatic exercise of
    the 10,070,000 previously issued special warrants of the Company in December
    2010.


  * The appointment on 30 March 2011 of Messrs Sean Harvey and Melvyn Williams
    and Dr Doug Jones as independent directors of the Company.



Outlook

Serabi's  short term strategy for  the JDO Project (phase  1) to be followed for
the  next  6 months  continues  to  focus  on  'head-frame' exploration with the
objective  of discovering  more Palito  style deposits.   In further detail this
will involve:

·          Continuing with the 8,100 metre  discovery drilling programme into 9
high  priority targets within  3km of the plant  (2,700 metres of this programme
had been drilled by the end of April)

  * Follow-up ground geophysics (Induced Polarisation) on the remaining five
    VTEM geophysical anomalies located in the original 2008 airborne survey area
    (6,000 Ha) with the objective of generating further drill targets - this is
    planned to commence July 2011.

  * Conduct a further 7,000 Ha airborne geophysical VTEM survey over further JDO
    tenements  - (an 8,000 Ha survey was completed in January 2011 and results
    from which are expected later in May 2011).

  * Follow-up ground geophysics (Induced Polarisation) on the January
    2011 8,000 Ha airborne geophysical VTEM survey area.


·         Commencing a thorough mine-site deep geochemistry
Geochemical/Trenching/Auger program.


·         The initial phase one of the exploration budget is in the region of
US$8 million and is aimed to investigate the mine site targets as well as some
of the immediate surrounding tenements (within 20km of the operation).

                               SERABI MINING PLC
           Condensed Consolidated Statements of Comprehensive Income



                                          --------------------------------------
                                                For the      For the     For the

                                           Three months Three months        year

                                                  ended        ended       ended

                                               31 March     31 March 31 December

                                                   2011         2010        2010

(expressed in US$)                          (unaudited)  (unaudited)   (audited)
--------------------------------------------------------------------------------
CONTINUING OPERATIONS

Revenue                                               -      840,639   1,229,551

Operating expenses                            (183,822)    (761,773) (2,416,746)
--------------------------------------------------------------------------------
Gross (loss)/profit                           (183,822)       78,866 (1,187,195)

Administration expenses                       (124,946)    (397,634) (2,266,912)

Option costs                                   (30,571)     (25,102)   (103,876)

Loss on asset disposals                        (13,515)     (54,568)   (124,179)

Depreciation of plant and equipment           (567,336)    (509,949) (2,112,445)
--------------------------------------------------------------------------------
Operating loss                                (920,190)    (908,387) (5,794,607)

Foreign exchange gain/ (loss)                   187,297      (1,180)    (27,396)

Finance costs                                  (22,152)     (44,032)   (187,912)

Investment income                                12,403            -      29,904
--------------------------------------------------------------------------------
Loss before taxation                          (742,642)    (953,599) (5,980,011)

Income tax expense                                    -            -           -
--------------------------------------------------------------------------------
Loss for the period from continuing           (742,642)    (953,599) (5,980,011)
operations ((1) (2))
--------------------------------------------------------------------------------


Other comprehensive income (net of tax)

Exchange differences on translating             943,210    (835,842)   1,613,011
foreign operations
--------------------------------------------------------------------------------
Total comprehensive income/(loss) for           200,568  (1,789,441) (4,367,000)
the period ((2))
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Loss per ordinary share (basic and              (1.65c)      (2.91c)    (15.21c)
diluted) ((1))
--------------------------------------------------------------------------------

 (1) All revenue and expenses arise from continuing operations.

(2) The Group has no non-controlling interests and all income / (losses) are
attributable to the equity holders of the Parent Company.


                               SERABI MINING PLC
                     Condensed Consolidated Balance Sheets


                                         ---------------------------------------
                                                 As at        As at        As at

                                              31 March     31 March  31 December

                                                  2011         2010         2010

(expressed in US$)                         (unaudited)  (unaudited)    (audited)
--------------------------------------------------------------------------------
Non-current assets

Development and deferred exploration        11,679,390    7,058,548    9,797,406
costs

Property, plant and equipment               34,088,905   33,917,842   33,951,140
--------------------------------------------------------------------------------
Total non-current assets                    45,768,295   40,976,390   43,748,546
--------------------------------------------------------------------------------
Current assets

Inventories                                  1,488,737    1,460,550    1,417,804

Trade and other receivables                    168,419      156,494       96,143

Prepayments and accrued income               1,175,068    1,249,760    1,061,945

Cash at bank and cash equivalents           11,100,828    3,423,326    8,598,755
--------------------------------------------------------------------------------
Total current assets                        13,933,052    6,290,130   11,174,647
--------------------------------------------------------------------------------
Current liabilities

Trade and other payables                     3,282,582    3,595,567    3,147,258

Accruals                                       313,577       83,752      174,348

Interest bearing liabilities                         -       31,285            -

Special warrants                                     -            -    5,059,995
--------------------------------------------------------------------------------
Total current liabilities                    3,596,159    3,710,604    8,381,601
--------------------------------------------------------------------------------
Net current assets                          10,336,893    2,579,526    2,793,046
--------------------------------------------------------------------------------
Total assets less current liabilities       56,105,188   43,555,916   46,541,592
--------------------------------------------------------------------------------
Non-current liabilities

Trade and other payables                       340,174      496,103      552,027

Provisions                                   1,396,249    1,367,225    1,388,571

Interest bearing liabilities                   270,891      247,095      249,176
--------------------------------------------------------------------------------
Total non-current liabilities                2,007,314    2,110,423    2,189,774
--------------------------------------------------------------------------------
Net assets                                  54,097,874   41,445,493   44,351,818
--------------------------------------------------------------------------------


Equity

Share capital                               29,291,551   26,848,814   27,752,834

Share premium                               48,282,042   36,268,991   40,754,032

Option reserve                               1,686,032    1,553,661    1,648,484

Other reserves                                 702,095      260,882      260,882

Translation reserve                          4,825,378    1,433,315    3,882,168

Accumulated loss                          (30,689,224) (24,920,170) (29,946,582)
--------------------------------------------------------------------------------
Equity shareholders' funds                  54,097,874   41,445,493   44,351,818
--------------------------------------------------------------------------------



The  interim financial information has not  been audited and does not constitute
statutory  accounts as defined in Section  434 of the Companies Act 2006. Whilst
the  financial information  included in  this announcement  has been compiled in
accordance  with  International  Financial  Reporting  Standards  ("IFRS")  this
announcement  itself does not contain sufficient financial information to comply
with  IFRS.  The Group statutory accounts  for the year ended 31 December 2010,
prepared under IFRS as adopted in the EU and with IFRS and their interpretations
adopted by the International Accounting Standards Board have been filed with the
Registrar  of Companies. The auditors' report  on these accounts was unqualified
but did contain an Emphasis of Matter with respect to the ability of the Company
and  the  Group  regarding  the  future  availability  of  project finance.  The
auditors' report did not contain a statement under Section 498 (2) or 498 (3) of
the Companies Act 2006.




                               SERABI MINING PLC
                  Condensed Consolidated Cash Flow Statements

                                          --------------------------------------
                                                For the      For the     For the

                                           three months three months        Year

                                                  ended        ended       Ended

                                               31 March     31 March 31 December

                                                   2011         2010        2010

(expressed in US$)                          (unaudited)  (unaudited)   (audited)
--------------------------------------------------------------------------------
Operating activities

Operating loss                                (920,190)    (908,387) (5,794,607)

Depreciation - plant, equipment and mining      567,336      509,949   2,112,445
properties

Loss on sale of assets                           13,515       54,568     124,179

Option costs                                     30,571       25,102     103,876

Interest paid                                  (10,326)     (34,542)   (149,439)

Foreign exchange loss                          (48,930)      (1,460)   (175,671)

Changes in working capital

  (Increase) / decrease in inventories         (37,481)     (17,385)    (95,530)

  (Increase) / decrease in receivables,       (158,356)       39,088     569,010
  prepayments and accrued income

  (Decrease) / increase in payables,           (11,749)     (75,840)   (631,396)
  accruals and provisions
--------------------------------------------------------------------------------
Net cash flow from operations                 (575,610)    (408,907) (3,937,133)
--------------------------------------------------------------------------------


Investing activities

Proceeds from sale of fixed assets               40,642      106,851     501,209

Purchase of property, plant and equipment      (27,383)            -     (7,225)

Exploration and development expenditure     (1,639,267)    (305,019) (2,481,665)

Interest received                                12,403            -      29,904
--------------------------------------------------------------------------------
Net cash outflow on investing activities    (1,613,605)    (198,168) (1,957,777)
--------------------------------------------------------------------------------


Financing activities

Issue of ordinary share capital               4,961,179            -   5,424,120

Issue of warrants                               208,229            -           -

Issue of special warrants                             -            -   5,453,761

Capital element of finance lease payments             -     (46,052)    (79,303)

Payment of share issue costs                  (706,564)            -    (35,059)

Payment of special warrant issue costs         (14,900)            -   (393,765)
--------------------------------------------------------------------------------
Net cash inflow/(outflow) from financing      4,447,944     (46,052)  10,369,754
activities
--------------------------------------------------------------------------------


Net increase/(decrease) in cash and cash      2,258,729    (653,127)   4,474,844
equivalents

Cash and cash equivalents at beginning of     8,598,754    4,081,882   4,081,882
period

Exchange difference on cash                     243,345      (5,429)      42,029
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period   11,100,828    3,423,326   8,598,755
--------------------------------------------------------------------------------


Enquiries:

 Serabi Mining plc

 Michael Hodgson                   Tel: [phone]

 Chief Executive                   Mobile: [phone]



 Clive Line                        Tel: [phone]

 Finance Director                  Mobile: [phone]



 Email: [e-mail]

 Website:  www.serabimining.com



 Beaumont Cornish Limited
 Nominated Adviser

 Roland Cornish                    Tel: [phone]

 Michael Cornish                   Tel: [phone]



 Hybridan LLP
 UK Broker

 Claire Noyce                      Tel: [phone]



 Farm Street Communications
 Public Relations

 Simon Robinson                    Tel: [phone]



 Fig House Communications
 Investor Relations

 Rebecca Greco                     Tel: + 1 416 822 6483



Copies of this release are available from the Company's website at
www.serabimining.com


Forward-looking statements
This press release contains forward-looking statements. All statements, other
than of historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements. Forward-looking
statements are often identifiable by the use of words such as "anticipate",
"believe", "plan", may", "could", "would", "might" or "will", "estimates",
"expect", "intend", "budget", "scheduled", "forecasts" and similar expressions
or variations (including negative variations) of such words and phrases.
Forward-looking statements are subject to a number of risks and uncertainties,
many of differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to differ
materially from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the possibility
that future exploration results will not be consistent with the Company's
expectations, the price of gold and other risks identified in the Company's most
recent annual information form filed with the Canadian securities regulatory
authorities on SEDAR.com. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward-
looking statement.


Qualified Persons Statement

The  information  contained  within  this  announcement  has  been  reviewed and
verified  by Michael Hodgson,  CEO of the  Company.   Mr Hodgson  is an Economic
Geologist by training with over 25 years' experience in the mining industry.  He
holds  a  BSc  (Hons)  Geology,  University  of  London,  a  MSc Mining Geology,
University  of Leicester and is a Fellow of the Institute of Materials, Minerals
and  Mining  and  a  Chartered  Engineer  of  the  Engineering  Council  of  UK,
recognizing him as both a Qualified Person for the purposes of Canadian National
Instrument  43-101 and by the AIM Guidance Note on Mining. Oil and Gas Companies
dated March 2006.

ENDS






Q1 2011 Financial Results: 


http://hugin.info/137617/R/1516111/452402.pdf

Q1 2011 Management Discussion and Analysis: 


http://hugin.info/137617/R/1516111/452405.pdf




This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Serabi Mining plc via Thomson Reuters ONE

[HUG#1516111]