Update on Strategic Review

Serabi Mining plc ("Serabi" or "the Company")
Update on Strategic Review

Serabi Mining plc ("Serabi" or "the Company") advises shareholders
that the management of its wholly owned subsidiary Serabi Mineracao
Ltda ("SMLtda") has initiated a further reduction of the work-force.
This is part of the ongoing programme of placing the Palito Mine into
a state of care and maintenance as advised in the Company's press
release "Announcement of Strategic Review" (17th September 2008).

As notified in that press release, operations have recently been
concentrated on mining 'blocked out' stopes and it was anticipated at
that time that this work would continue until the end of November. As
a result of this work-force reduction, underground mining activity
will now cease and all equipment will be withdrawn from the mine. The
plant will continue operations at a reduced level for a further few
months treating stockpiled sulphide ore and near surface oxide ore
but it is projected that these sources will probably be depleted in
early 2009.

The management of SMLtda is preparing all the necessary reports that
are required to be submitted to the authorities in conjunction with
this programme.

The Board of Serabi has also approved the recommendation of its
Brazilian management to reduce the level of exploration tenements
that the group holds to focus on high priority projects and in so
doing limit the future cash requirement for maintaining the
exploration portfolio. Exploration work has been on-going at the Rio
Marupa prospect, with scout drilling focused on potential structures
lying below the current garimpo pits. No significant grades have so
far been returned from the drilling programme and it has therefore
been agreed that given the Company's current position, the option
agreement on this property be terminated. SMLtda will also relinquish
the tenements comprising the Castanheira prospect as well as certain
tenements northwest of Palito, where it has undertaken little
exploration work and considers the tenements to have limited
near-term value.

The Company held cash deposits in excess of $2 million at the end of
November and anticipates that the ongoing production will make a
positive contribution to the ongoing wind down costs.

Management continues to pursue longer-term options for Serabi and
several companies have entered into or requested confidentiality
agreements since the Board announced the Strategic Review in
September. The Board notes, however, that in the current market place
there are limited funds available and many companies competing for
those funding opportunities. At the same time, investing groups
continue to be circumspect about committing finance to new projects
given the global market uncertainties. The progress of any potential
transaction will be driven by any investing party and the Board has
limited ability to influence this timetable. The Board will, however,
immediately communicate progress to all shareholders when it is
appropriate to do so.

Serabi also advises that Mr Rich Robinson and Mr Roger Davey have
stood down as directors of the Company.  In addition Mr Graham
Roberts, currently executive Chairman, will become non-executive
Chairman. Mr Bill Clough has also assumed a non-executive role.  The
Company has taken these steps in order to help further reduce its
ongoing cost base.  No compensation is payable in respect of these
changes.


Enquiries:


Serabi Mining plc

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

Mike Hodgson                    Tel: [phone]
Chief Executive                 Mobile: [phone]

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

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

---END OF MESSAGE---




http://hugin.info/137617/R/1275534/283998.pdf


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.