SERABI MINING plc ("Serabi" or "...

Serabi advises that it has today dispatched to shareholders its
investor newsletter for the first quarter of 2007 to 31 March 2007.

The Company has highlighted in its newsletter the following matters.
The full version of the quarterly update is available from Serabi's
offices, Cleary Court, 21-23 St Swithins Lane, London EC4N 8AD, or
from the Company's website: www.serabiming.com.


  * Quarterly production of 9,301 oz gold equivalent, a 17%
    year-on-year increase
  * Palito mine poised to benefit during the rest of 2007 from
    extensive pre-production mine development now completed
  * Major increase in mining productivity achieved following shift to
    trackless mining and the introduction of additional underground
    equipment
  * New mill configuration results in record throughput
  * Development commences at Palito West project
  * Favourable results from initial evaluation of Jardim do Ouro
    projects points to good potential for additional gold resources



+-------------------------------------------------------------------+
| Palito - Operating Results (1)                                    |
|-------------------------------------------------------------------|
|                      |        | 2007      | 2006                  |
|----------------------+--------+-----------+-----------------------|
|                      |        | Q1        | Q1        | Q4        |
|----------------------+--------+-----------+-----------+-----------|
| Total Mined          | t      | 55,251    | 32,820    | 42,007    |
| (per day)            |        | (614)     | (365)     | (457)     |
|----------------------+--------+-----------+-----------+-----------|
| Mined Ore            | t      |   42,217  |   31,555  |   34,072  |
| (per day)            |        | (469)     | (351)     | (370)     |
|----------------------+--------+-----------+-----------+-----------|
| Milled               | t      | 42,705    | 25,514    | 32,760    |
| (per day)            |        | (475)     | (283)     | (356)     |
|----------------------+--------+-----------+-----------+-----------|
| Head Grade           | g/t    | 6.5       | 9.3       | 9.4       |
|----------------------+--------+-----------+-----------+-----------|
| Recovery             | %      | 89.6      | 91.9      | 91.0      |
|----------------------+--------+-----------+-----------+-----------|
| Gold                 | oz     | 8,044     | 7,017     | 8,980     |
|----------------------+--------+-----------+-----------+-----------|
| Copper               | t      | 125.6     | 98.0      | 224.6     |
|----------------------+--------+-----------+-----------+-----------|
| Gold Equivalent      | oz     | 9,301     | 7,927     | 11,687    |
| (2)                  |        |           |           |           |
+-------------------------------------------------------------------+

(1) Provisional   (2) Includes Copper & Silver


Palito Mine

Mining
Mining improvements have continued into the first quarter of 2007
with a 34% increase in tonnage mined compared with the preceding
quarter and a 68% increase on the first quarter of 2006.

With the near depletion of the ore in the upper levels emphasis has
moved to the lower levels accessed from the decline where work has
been on-going throughout 2006.

Over 2,500 metres of on-lode development has been established over
four levels forming a strong foundation for ore production and the
benefits of the extensive pre-production development undertaken over
the past year at Palito will become evident over the remainder of
2007.

Gold production for Q1 has been impacted by this transition to the
lower levels and the need in this quarter to continue to advance
development which has resulted in a higher than normal ratio of lower
grade development to ore production. Production derived from
development is, as a result of dilution, inevitably of lower grade
and as a consequence production has been depressed in the quarter.
Henceforth the development to ore production ratio will improve
resulting in improved grades.

Plant
The commissioning of Mill-4 has had a dramatic impact on throughput
and reliability. Average daily mill rates have increased 33% to 475
tonnes with peak production over 550 tonnes.

Average daily throughput of 480 tonnes is planned for the first half
of 2007 increasing to approximately 550 tonnes during the second half
following the introduction of Mill-3, which is being refurbished.

Planning and Outlook
A combination of increased ore production, higher mining rates and
increased plant throughput will impact positively on production for
the rest of the year.

The target is for approximately 50,000 ounces gold equivalent in 2007
with cash costs below $250 per ounce gold equivalent.

A new jumbo drill and scooptram were delivered in the first quarter
with another scooptram ordered to complete the fleet. This additional
equipment will assist productivity through increased capacity and
availability.

Development of Palito West has commenced and this deposit located 200
metres south-west of the Palito Main Zone (PMZ) will become Serabi's
first satellite ore production at the Palito operation.


Exploration

Expansion of exploration and drilling across the Jardim do Ouro is
highlighting some key targets of which Ruari's Ridge, Chico do Santo
and the southern extension of the Palito Main Zone will be the main
focus for detailed follow-up in the first half of the year.

Ruari's Ridge
Located 500 metres south west of the PMZ hosts two sub-parallel
continuous zones of mineralisation extending over 600 metres strike
and 200 metres down dip. Infill drilling and trenching is now
underway with recent sampling identifying the occurrence of gossan
material coincident with a significant anomaly.

Chico do Santo
Located 300 metres north-east of the PMZ has three parallel
mineralised structures along some 200 metres strike. A programme of
trenching, shallow reverse circulation drilling and deeper diamond
drilling is underway.

Palito Main Zone South
Initial working will be confirmed to the shallower south extension
whilst geophysical work is undertaken to improve the targeting of
deeper drilling.

Tapajos Regional
Initial focus is on follow-up work at Sucuba, the regional strike
extension of the PMZ mineralization along the Tocantanzinho
structural trend and the Pizon and Jutai prospects. Initial
assessments are planned for the Castanheira and Modelo projects later
in the year.


Enquiries


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

Clive Line                      Tel: [phone]
Finance Director                Mobile: [phone]
email:                          [e-mail]
Website:                        www.serabimining.com

Numis Securities Limited
John Harrison                   Tel: [phone]
James Black                     Tel: [phone]

Parkgreen Communications
Simon Robinson                  Tel: [phone]
Clare Irvine                    Tel: [phone]
[e-mail]

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