Statement re Update on Palito Gold Project

SERABI MINING plc
                          ("Serabi" or "the Company")
                     Update on Palito Gold Project, Brazil

Serabi , the AIM-traded gold exploration and production company is pleased to
provide a progress update on the Company's 100% owned Palito gold project in the
Tapajos region of northern Brazil.

Serabi announce that, in accordance with its 2010 exploration work programme
(set out in the Company's press release of 28 January 2010), the initial
follow-up ground-induced polarisation ("IP") geophysical survey at the Company's
Jardim do Ouro project in Para, Northern Brazil commenced in mid-March.  This is
the next stage of a systematic exploration programme with the objective of
building Serabi's resources to 1.5 million ounces through the identification of
satellite ore deposits in close proximity to its Palito gold mine.

Geophysical contractor, Fugro, mobilised to site in mid-March to undertake this
initial survey totalling 45 line km, which is estimated to be completed during
the latter part of May.  The area covered by this initial survey all lies within
a 3km radius of the Palito Mine.  The planned survey area covers 10 of the 18
prioritised target anomalies identified during the 2008 airborne Electromagnetic
("EM") geophysical survey undertaken by the Company.

The IP survey lines are spaced 200m apart, perpendicular to the dominant
mineralised trends. Further infill lines at 100m spacing maybe required to
better define any anomalous zones, which will be drill-tested in 2010 and 2011.
As at 31 March, 37 line km of the initial 45 line km had been opened for access
and prepared with 19.5 line km pegged and a total of 14 line km having been
surveyed.  Subject to weather conditions, the Company expects that approximately
1.0 line km can be surveyed daily.

The resulting data is being streamed live to the Company's geophysical
consultants off-site for immediate assessment thus enabling the survey programme
to be amended, where appropriate, as results are generated.  Diamond drilling
contractors are currently scheduled to mobilize to Palito in June 2010 to
commence drilling the best integrated geophysical and geological targets.

Background

Palito  and near mine mineralised zones are characterised by quartz-sulphide and
massive sulphide veins. The vast bulk of the ore mined from the underground
Palito mine was hosted in quartz-sulphide veins,  with higher grade bonanza
shoots existing in small diameter, plunge continuous, massive sulphide pods or
shoots.

The nature of the quartz and sulphide content of the ore zones lends itself to
detection via electrical geophysical methods, due to the conductivity in the
sulphides and the resistivity provided by the quartz.  Historically ground
electrical geophysical exploration methods such as EM and IP have yielded good
success in the Palito area reinforcing their importance as a primary exploration
tool in identifying these types of mneralisation.

In 2006, Serabi trialled ground EM surveying at Palito.  The positive results
led to Serabi commissioning the helicopter-borne VTEM geophysical survey over
the Palito deposit and surrounding 6,000 hectare area.

The benefit of the EM technique is that it can highlight the massive sulphide
component of the Palito style of mineralization, and therefore immediately
provides a focus point for exploration within the dense vegetation surrounding
Palito.

The  2008 airborne EM survey indentified  47 discrete anomalies and 19 anomalous
complex  conductive zones.  These geophysical  targets were then integrated with
the  other  geological  datasets  including  soil  geochemistry,  drilling data,
lineament  analysis and geology  for the project.  As a result 18 "target areas"
were defined for further follow-up exploration. These 18 targets now provide the
focal point for discovering potential mineralised zones.

Bearing  in mind that  the bulk of  Palito ore was  sourced from quartz-sulphide
vein  material and not  massive sulphide, the  VTEM survey represented the first
step  in the identification of additional resources whilst the application of IP
should  help  delineate  the  quartz-sulphide  veins.  It  is  expected that the
combination  of both  EM and  IP and  the subsequent  3D modeling will provide a
direct  focus for drilling activities and  the subsequent expansion of resources
at  Palito  and  Jardim  do  Ouro.   Fifteen  of  the  targets  are within three
kilometres  of the  mine and  of these  fifteen, seven  are situated  within the
Company's  existing mine licence.  The remaining targets  are located within the
Company's surrounding exploration licences.

Further information on the Company is available at www.serabimining.com
<

http://www.serabimining.com/>
Enquiries:
Serabi Mining plc

 Mike Hodgson                                              Tel: [phone]

 Chief Executive                                           Mobile: [phone]



 Email: [e-mail]
 <mailto:[e-mail]>

 Website:  www.serabimining.com
 <

http://www.serabimining.com/>



 Beaumont Cornish Limited
 Nominated Adviser and Broker

 Roland Cornish                                            Tel: [phone]

 Michael Cornish                                           Tel: [phone]



 Farm Street Communications

 Simon Robinson                                            Tel: [phone]
 [e-mail]                        Mobile: [phone]
 <mailto:[e-mail]>


Forward-looking statements
This press release includes certain forward-looking statements. All statements,
other than statements of historical fact, included herein, including without
limitation, statements regarding the future plans and objectives of Serabi, are
forward-looking statements that involve various known and unknown risks and
uncertainties as well as other factors. Such forward-looking statements are
subject to a number of risks and uncertainties that may cause actual results or
events to differ materially from current expectations, including delays in
obtaining or failure to obtain required regulatory approvals. There can be no
assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Any forward-looking statements speak only as of the date hereof and, except as
may be required by applicable law, Serabi disclaim any obligation to update or
modify such forward-looking statements, either as a result of new information,
future events or for any other reason.


Qualified Persons Statement

The information contained within this announcement has been reviewed and
verified by Michael Hodgson as required by the AIM Guidance Note on Mining. Oil
and Gas Companies dated March 2006.  Michael Hodgson is an Economic Geologist by
training with 20 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

Ends


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