2nd Quarter Results

SERABI MINING plc ("Serabi" or "the Company")
                      QUARTERLY INVESTOR UPDATE

Serabi advises that it has today dispatched to shareholders its
investor newsletter for the second quarter of 2007 ending 30 June
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.serabimining.com


  * Completion of £12.5 million placing provides strengthened
    foundation for resource and production growth
  * Exploration success points to wider potential and basis for
    short-term production expansion
  * First half production of 18,718 oz gold equivalent, a 6%
    year-on-year increase
  * Changes to the mining method are resulting in improved grades at
    the Palito mine
  * Further improvements to mining and mill productivity at Palito
    anticipated during the second half of the year
  * Copper revenue accounts for 15% of gross revenue following a
    resumption of high copper prices




+----------------------------------------------------------------+
|                 Palito - Operating Results (1)                 |
|----------------------------------------------------------------|
|                           |  2007  |  2007  |  2007   |  2006  |
|                           |   Q1   |   Q2   |   YTD   |  YTD   |
|---------------------------+--------+--------+---------+--------|
|     Total Mined     |  t  | 55,251 | 61,567 | 116,818 | 65,610 |
|      (per day)      |     | (614)  | (677)  |  (645)  | (362)  |
|---------------------+-----+--------+--------+---------+--------|
|      Mined Ore      |  t  | 42,217 | 50,058 | 92,275  | 63,419 |
|      (per day)      |     | (469)  | (550)  |  (510)  | (350)  |
|---------------------+-----+--------+--------+---------+--------|
|       Milled        |  t  | 42,705 | 45,245 | 87,950  | 55,365 |
|      (per day)      |     | (475)  | (497)  |  (486)  | (306)  |
|---------------------+-----+--------+--------+---------+--------|
|     Head Grade      | g/t |  6.5   |  6.0   |   6.2   |  9.5   |
|---------------------+-----+--------+--------+---------+--------|
|      Recovery       |  %  |  89.6  |  91.1  |  90.5   |  91.6  |
|---------------------+-----+--------+--------+---------+--------|
|        Gold         | oz  | 8,044  | 7,888  | 15,932  | 15,544 |
|---------------------+-----+--------+--------+---------+--------|
|       Copper        |  t  | 125.6  | 127.0  |  252.6  | 205.1  |
|---------------------+-----+--------+--------+---------+--------|
| Gold Equivalent (2) | oz  | 9,301  | 9,417  | 18,718  | 17,742 |
+----------------------------------------------------------------+



The Company  undertook with  Numis Securities  Limited a  placing  of
shares during the quarter raising gross proceeds of £12.50 million.
Investments from the  funds combined with  cash-flow will  facilitate
the development of new  production, initiate an enhanced  exploration
programme, optimise financial management and  place the company in  a
more competitive position to acquire new opportunities.

Detailed evaluation is underway on the Ruari's Ridge, Chico do  Santo
and  Palito  West  projects  following  recent  discoveries.    Drill
programmes are underway on all the  prospects.  At Ruari's Ridge  the
10,000  metre  programme  will   be  supplemented  with  an   on-lode
development entering from the north-west  end.  An access decline  is
planned  to  commence  during   the  fourth  quarter  assuming   this
evaluation is successful.  This  decline would cross the Palito  West
zone providing immediate ore access.

Exploration  at  Chico  do  Santo  has  indicated  five   high-grade,
gold-copper  mineralised   structures  with   potential  for   future
development  mining  access  from  the  existing  Palito  Main   Zone
operations.

The Company remains confident of the further potential of the  Jardim
do Ouro and has a goal to establish resources over the next 24 months
to support annual production of over 100,000 ounces gold equivalent.

Production for the  quarter has remained  relatively flat after  some
difficulties were  encountered  with the  introduction  of  long-hole
mining, resulting  in lower  than planned  grades.   The Company  has
adapted its mining  technique to  the cut-and-fill  method which  has
brought immediate  grade benefits,  and recent  results point  to  an
improved third quarter  aided also  by an increase  in planned  daily
milling rates to approximately 550 tonnes.

Subject to the detailed evaluation being undertaken at Ruari's Ridge,
Chico do Santo and Palito West, the Company envisages that annualised
production rates could rise to between 60,000 and 70,000 ounces  gold
equivalent during 2008 at a projected capital cost of US$7 million.

The price of copper has risen by 142% since the Company's IPO in  May
2005, and in the light of supply concerns analysts have been  raising
their forecast for the next the next  two years.  Such an outlook  is
positive for Serabi, which at current prices generates 15% of revenue
for copper sales.


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]
Shannon Leano                   Tel: [phone]

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