Update on Possible Merger Discussions

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

                     update ON Possible MERGER DISCUSSIONS

On  4 March 2010 following activity in the Company's shares and movements in the
Company's  share price, the Board of Serabi announced that it was in preliminary
discussions  with a third party regarding a possible merger (the "Discussions").
As  stated at  that time,  the Discussions  were very  preliminary in nature and
there  could be no certainty that  the potential merger would ultimately proceed
nor  any offer be forthcoming.  Serabi has now been  notified by the third party
that  their Board has agreed  that they are no  longer considering a transaction
that  would or might result in that company  making any form of offer to acquire
the  shares  of  Serabi.  Accordingly,  Serabi  is  no longer in an offer period
pursuant to the Takeover Code.



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
Public Relations

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.



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