Resource Update

Serabi Mining plc
14 February 2006



SERABI MINING PLC REPORTS 74% INCREASE IN GLOBAL RESOURCES TO 825,900 OUNCES
GOLD EQUIVALENT



   •  Total contained gold equivalent ounces at Palito increased by 74%
      to 825,900 ounces

   •  Improved quality as Indicated Resources comprise 90% of total
      resources, up from 12% a year ago

   •  Strike length and depth of mineralisation continue to increase
      and remain open in all directions

   •  Improved mine economics as gold equivalent ounces per vertical
      metre increase by 50%

   •  Low discovery cost of approximately US$4 per ounce



Serabi Mining plc ('Serabi' or the 'Company') reports the results of its
resource estimate review as at 31 December, 2005 for the Palito Main Zone.
Resource modeling and grade estimation was recently completed to JORC (2004)
guidelines by independent resource consultants Hellman & Schofield Pty Ltd.



The Palito Main Zone resource has been estimated from 200 diamond drill holes
completed prior to the end of December 2005 (a total of 26,886 metres), as well
as from extensive channel sample data obtained from the underground workings.
Full details of the drill results included in the resource estimation were
reported in the Company's press releases dated 9 September, 2005 and 1 February,
2006 and can be viewed at the Company's website www.serabimining.com.



The resource estimate now extends to a maximum depth of 0 mRL, an increase of
approximately 100 metres in depth compared to a year ago. In addition, the
strike length has increased from 900 metres to 1,050 metres.  Due to the
high-grade nature of the mineralisation, a top cut of 200 g/t gold and 10%
copper was applied to the estimate.



The resources at 0.0 g/t, 2.0 g/t and 5.0 g/t cut-off grades are reported below
and represent a 74%, 64% and 48% increase in contained gold equivalent ounces
over the December 2004 estimate, respectively:



Table 1: Palito Main Zone Resources(1,2) (December 2005)


  Cut-off     Category       Tonnes      Gold Grade  Copper Grade Contained Au   Contained Cu  Contained AuEq
Grade (g/t)                                (g/t)         (%)          (ozs)        (tonnes)        (ozs)
    0.0     Indicated       3,857,000       5.27         0.25        653,100        9,560         739,200
            Inferred         779,000        3.20         0.08        81,000          620           86,700
            Total           4,636,000       4.93         0.22        734,100        10,180        825,900

    2.0     Indicated       2,081,000       9.08         0.39        607,300        8,200         681,200
            Inferred         187,000       12.00         0.16        72,300          290           74,900
            Total           2,268,000       9.32         0.37        679,600        8,490         756,100

    5.0     Indicated       1,089,000      14.41         0.59        504,700        6,400         562,400
            Inferred         108,000       18.50         0.16        64,300          170           65,900
            Total           1,197,000      14.79         0.55        569,000        6,570         628,300



(1) Gold equivalent ounces are based on US$550 per ounce gold and US$2.25 per
pound copper; figures have been rounded

(2) Resource has been depleted for mining activity from commencement, comprising
81,053 tonnes for 21,843 ounces of gold and 693,600 pounds of copper



With the significant amount of step-out drilling that took place along the
Palito Main Zone during 2005, Serabi has continued to discover new, parallel
orebodies. As a result, there are now a total of 54 individual veins which have
been included in the resource, compared to 20 individual veins a year earlier.
Taking into account relevant exploration expenditures, the revised global
resource estimate implies a discovery cost for 2005 of approximately US$4 per
ounce, which Serabi believes to be very competitive within the industry.
Furthermore, as a result of the amount of infill drilling which was completed in
2005, there has been a substantial improvement in the quality of the resources,
with Indicated Resources now comprising 90% of the resource ounces (up from 12%
a year ago).



Importantly, the amount of gold equivalent ounces per vertical metre has
increased substantially. Within the main section of the resource, between 150
mRL and 240 mRL elevation, the number of gold equivalent ounces has increased
50% over the December 2004 resource estimate to an average of 5,500 gold
equivalent ounces per vertical metre over the strike length of the Palito Main
Zone. The potential economic impact of this increase is significant as more gold
will now be accessible from each level of mine development at the Palito
operation.



While at a zero cut-off grade the overall grade of the resource has declined,
this is a result of a combination of the inclusion of newly identified, but
lower-grade mineralised zones and changes in core sampling procedures.  Rather
than sampling only the main, central area of mineralisation, the Company now
assays the entire mineralised and associated alteration zones, which often
include lower-grade sections around the central higher-grade areas. This has
resulted in higher tonnage with a coincident reduction in grade.



At the time of the Company's IPO in May 2005, initial production and mine
planning at Palito was based on a 5.0 g/t gold cut-off grade. This cut-off grade
was based on the projected cost profile for the relatively labour intensive
shrinkage stoping mining method. Following the introduction of mechanised
mining, longhole stoping and other cost and efficiency measures currently
underway, this cut-off grade should decline thus enabling a greater proportion
of lower-grade material to be incorporated into the long-term mine plan.



Commenting on the updated resource estimate, Graham Roberts, Chairman of Serabi
said,



'This resource estimate illustrates the potential for the Palito Gold Mine to
grow into a long-life, low cost gold producer in the Tapajos Region of Brazil.
While we have now significantly extended the resource along strike and at depth,
mineralisation continues to remain open in all directions.  Furthermore,
although the increase in the resource is impressive, the improvement in the
quality of the resource is equally as important to the future economics of the
Palito operation. Serabi will continue to test the extent of the deposit during
the course of 2006 with the objective of further increasing total resource
ounces.



We also note that this resource estimate is based on the Palito Main Zone only,
and does not take into consideration adjacent areas such as Palito West, Chico
do Santo and the newly discovered Bill's Pipe where drilling has also
encountered high-grade gold-copper intersections. During the course of 2006, the
company will work towards bringing these and other satellite orebodies within
the Jardim do Ouro District into the resource base.'




Enquiries: Serabi Mining plc



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


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


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


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






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