3rd Quarter Investor Update 2008

Serabi Mining plc ("Serabi or "the Company") the AIM listed gold
production and exploration company, with operations in Brazil
(AIM:SRB), announces that it has today issued its 3rd Quarter
shareholder update.

The full pdf file can be accessed directly from the Company's website
www.serabimining.com

The highlights of the update are:

- Production of 5,406 gold equivalent ounces for the quarter

- Strategic review indicates the need to return the Palito mine to an
extended period of development mining in order to achieve stable long
term profitability

- Revised mine planning and improved operating margins indicates
short term production opportunities may be extended

- Drill results indicate a significant expansion of mineralised
structures at Palito

- Detailed assessment of the airborne geophysical survey and other
related exploration results across the Palito district, indicates 66
anomalies, including 16 high priority zones

- Review of preliminary exploration results at Pison confirms the
widespread occurrence of gold and the potential for large areas of
mineralisation

               Palito - Operating Results (1)
                                    2008              2007
                          Q1     Q2     Q3     YTD     YTD
Total Mined          t  57,542 59,772 64,289 181,603 173,721
(per day)               (632)  (657)  (699)   (663)   (636)
Mined Ore            t  33,022 34,829 37,519 105,370 138,029
(per day)               (363)  (383)  (408)   (385)   (506)
Milled               t  32,479 34,027 35,369 101,875 133,004
(per day)               (357)  (374)  (384)   (372)   (487)
Head Grade          g/t  4.52   5.1    4.69   4.77     5.9
Recovery             %  88.97    89    87.4   88.44   90.2
Gold                oz  4,217  4,963  4,658  13,838  22,953
Copper               t  85.81  78.97  81.07  245.85   348.8
Gold Equivalent (2) oz  4,985  5,754  5,406  16,144  26,894


(1)  Provisional  (2)  Includes Copper and Silver

The Management Review presented by the Chairman and Chief Executive
summarises the quarter as follows:

Continued mining problems experienced during the last quarter have
detracted from what has been a successful period on the exploration
front.

- New Reserve and Resources statement on 9th July and, for the first
time, an ore reserve reported for Palito.

- Exploration around Palito has confirmed significant extensions to
the known mineralisation around the Palito Main Zone and Palito West
areas.

- Detailed analysis of the airborne electromagnetic survey over and
around the Palito area has highlighted a total of 66 anomalies,
including 16 high priority zones.

- Stream sediment sampling programme completed over the entire Pison
tenement area identifying a number of large anomalies.

- Limited drill programme commenced on the Rio Marupa prospect some
150 km south-west of Palito.

Operationally, the Strategic Review of 17th September and the
statement that accompanied the Interim Report released on 29th
September set out in detail the issues and some options that we face
at the Palito mine.  What is of greater interest to shareholders now
however, is how we move forward.

Serabi's management has been exploring a number of options but with
global economic factors weighing heavily on decision-making,
solutions are taking more time and proving more difficult to
achieve.  We have completed studies to assist interested parties in
their due diligence and it is clear from these that if the
operational inefficiencies can be overcome - through the introduction
of more experienced day-to-day management and operators - Palito
remains a viable and valuable asset.

To re-establish full scale operations at Palito we consider that the
best plan will require placing the mine into a dedicated phase of
development for a period of some 12 months in order to re-establish
adequate mining faces and stoping panels.  After that it would be
expected that the resulting ratio of stoping-ore to development-ore
would ensure that a higher, optimised grade could be fed to the mills
at all times.  The effect of such a plan, however, is that during the
first six months there would be insufficient ore to feed the plant.
Initially, ore recovered from development mining would therefore be
stockpiled, and the plant restarted after a six month period when a
blend of stockpiled and newly-mined development ore would ensure that
the plant could be kept operating at its optimal rate.  The working
capital required to support such a plan is estimated to be in the
region of US$7million.

Parties that have visited Palito have all been intrigued by the
longer term potential and the possibility to secure an operation
producing significantly more than 30,000 to 40,000 ounces per year
through establishing a number of satellite operations.  A programme
that would put the mine back into full production, whilst continuing
an aggressive exploration programme both at Palito and at Serabi's
other tenement areas, would clearly require an up front commitment of
working capital of more than US$7 million.

The current market conditions have, for good reason, made many
companies nervous of committing capital to existing projects and they
are therefore even more reluctant to take on new opportunities.  It
also means that many other junior mining groups are seeking joint
venture arrangements for their projects as an alternative to equity
or debt funding.  Competition for the available investment funding is
therefore intense and growing.

In the meantime, and whilst we have significantly reduced the
workforce, we are now looking at options which will allow us to
continue a reduced level of production for a longer period than we
had originally estimated.  We are helped in this by the continued
strength of the gold price (which has not experienced the price fall
of many other commodities) and the depreciation of the Brazilian
Real, which has fallen by some 30% over the last two months.

On the exploration front, whilst we have had to reduce the level of
activity to conserve cash, we have continued with priority programmes
that were already in progress and commenced a limited initial work
programme at the Rio Marupa project.  As noted earlier, we consider
that the results received over the quarter have been very positive.
At Palito we have outlined an extension of the principal G3 vein
structure for a further 400 metres to the south east of the previous
strike extent.  The G3 structure previously had a strike length of
some one kilometre and contributed approximately 25% of the proven
and probable reserve in the recent reserve and resource estimate.
This new extension is therefore considered significant in terms of
being able to add further reserves and resources when a new
estimation is undertaken.

The Palito West high-grade structure was, at the time of the reserve
and resource estimation, confined to a strike extension of 150
metres.  Further drilling has now extended this feature to 300 metres
and, whilst we previously believed the extension to the north-west to
have been closed off, new drill intersections now indicate that the
structures actually remain open in this direction too.

On the Pison prospect we have completed an initial 12 month screening
programme over the entire 120,000 hectare tenement area.  The Pison
area is a target for large volume, low tonnage gold deposits but
there has previously been very little available data over the area.
Only one garimpo operation exists - but this reflects its location
and means that the near- surface oxide material remains intact -
potentially a major benefit for any new operation that might be
established.  The screening results have confirmed the presence of a
number of areas containing widespread gold occurrences.  A number of
these drainage catchments also reported highly anomalous copper, lead
and zinc results, indicative of close proximity to a primary
mineralised source.

Operating Review

Having taken the decision to reduce the level of mining activity at
Palito, the first stage of redundancies was completed at the end of
September.  As a result we have reduced the total Brazilian labour
force to a total of 130 people.  Notwithstanding, mining activities
are continuing, with efforts concentrated on those areas where
development has been completed and the stopes exposed for the mining
of ore.  During the first three weeks of October, we have mined some
7,000 tonnes of ore of which 5,700 has been processed at a grade of
6.1 g/t, realising some 990 ounces of gold production.  Whilst enough
crews have been retained to mine at these rates on a 24 hour basis,
the plant will operate at a reduced number of hours, reflecting the
lower tonnages expected to be available.  Surplus mined ore is being
stockpiled and will then be batch processed.

Meanwhile, the current relative weakness of the Brazilian Real is
having a significant, positive effect on operating margins.  As a
result, we are examining options which will allow us to continue
limited mining activities for a longer period than had originally
been anticipated, thus generating cash flow for the Company whilst we
continue to explore strategic options with other parties.

As previously noted, we are of the view that the way forward for the
continued exploitation of the Palito mine is effectively to treat it
as a new operation.  This would involve putting in place a
significantly greater level of development than has previously been
possible and opening up access to the veins within the currently
defined ore reserve estimate.  The failure during August and
September to make any further meaningful progress on recovering the
metres of development that were lost as a result of the equipment
issues in the first part of the year, meant that it became
increasingly likely that a phase of long term development would
become necessary. This brings with it a significant working capital
requirement.  We considered it prudent to plan for this outcome
rather than having a less attractive fait accompli forced upon us in
the short term.

Exploration Review

Exploration during Q3 has continued, albeit at a reduced pace to
conserve cash resources. Drilling programmes have been executed in
the Palito and near mine area, together with compilation, integration
and re-interpretation of geochemistry, geology and geophysics results
across the Palito district and on the regional projects.

Highlights from this work include:

- Strike extension of the high grade G3 ore zone to the south-east,
demonstrates mineralisation continues for a further 400m strike and
remains open, including an intersection of 0.93m @ 34.75g/t Au &
0.24% Cu.

- Strike extension of the high grade Palito West mineralisation
(Pipoca Zone) for a further 100m to the north-west, including 0.82m @
17.10g/t Au and 0.95m @ 11.46g/t Au continues to indicate the ore
shoot remains open along strike and at depth.

- High grade intersections in Palito West within a parallel vein
structure (Farias Zone) including 0.85m @ 52.15g/t Au, 1.49m @
25.61g/t Au and 0.66 @ 9.51g/t Au improves definition and confidence
in payability of the Palito West prospect.

- Re-interpretation of the recent near-mine geophysics and
integration with geology and satellite imagery has revealed a number
of significant anomalous trends. These trends contain coincident
geochemistry, geology, structural and geophysical features.

- First pass soil and/or deep augur drilling in the Palito near-mine
area indicates the presence of supergene and primary mineralisation
along a number of the anomalous trends.

- At the Pison project, a review of stream sediment sampling results
and integration with the satellite and magnetic lineaments indicates
a number of anomalous multi-element drainages coincident with
regional north-north-west and north-east structural trends.

Palito South - G3 Extensions

In the Exploration Update dated 22 July, Serabi reported the
extension of both the plunge and strike of the G3 ore zone to the
south-east of Palito.  Subsequent to this in Q3 Serabi completed a
six hole drilling programme designed to test for the presence of
shallow mineralisation further along this open south-east extension
of the G3 structure, beyond the boundary of the 2008 Reserve and
Resource estimation.

The results received have confirmed the strike extension of the G3
structure for a further 400 metres, with intersections encountered in
five of the six holes.  The programme has also indicated, within the
structure, the possible existence of a south-east plunging, high
grade ore shoot at shallow depths over some 250 metres. This shoot
had already been encountered in earlier drilling with a reported
intersection in hole PDD0288 of 0.75m @ 8.87g/t Au and 0.41% Cu,
which has now been supplemented with the recent intercepts of drill
holes PDD0444: 0.93m @ 34.75g/t Au and 0.24% Cu, PDD0450: 1.15m @
3.47g/t Au & 1.1% Cu and PDD0452: 0.91m @ 5.01g/t Au and 0.04% Cu.


Table 1: Palito South Drill Hole Assay Intercepts.
  Hole     From        To        Interval  Au    Cu
           (m)         (m)                 g/t   %
 PDD0444  55.15       56.12        0.97   3.43  0.04
           58.9       59.83        0.93   34.75 0.24
 PDD0446         no intersection
 PDD0447  227.7      228.33        0.63   0.36  0.22
 PDD0448  175.23     176.33        1.1    0.99  0.12
          180.08       181         0.92   1.06  0.01
 PDD0450  54.25       56.8         2.55   2.43  0.55
including 55.65       56.8         1.15   3.56  1.1
 PDD0452  75.64       76.55        0.91   5.01  0.04


Note: Assay intercepts are calculated based on a minimum grade 1g/t
Au using a 0.5gm Au low cut and a maximum internal waste interval of
1.2m.

Palito West

In the July Exploration Update, Serabi also reported results
extending the strike and plunge extent of the Palito West ore shoot
to dimensions of approximately 200 metres strike length and 300
metres plunge extent, which remained open both along the north-west
strike and south-east plunge extensions.

Following on from this in Q3, Serabi undertook a further six hole
drill programme on the Palito West prospect.

Drilling results from this programme are very encouraging confirming
the presence of shallow, higher grade intersections to the north-west
along strike within the Pipoca Zone.  The mineralisation was
intersected in the 2 northernmost holes and trends behind historic
drill holes which were collared further along strike to the
north-west and thought to close off the strike. This mineralisation
continues to remain open to the north-west where it trends into a
'data gap' in the drilling and a corresponding induced polarisation
(IP) geophysical anomaly which remains untested.


Table 2: Palito West Drill Hole Assay Intercepts.
   Hole      From     To   Interval    Au    Cu
              (m)     (m)             g/t     %
  PDD0445    22.35   23.2    0.85    52.15  0.88
             57.7   58.63    0.93     1.33  0.08
 PDD0346Ex  177.17  178.2    1.03     1.52  0.32
  PDD0449    15.62  16.28    0.66     9.51  1.74
             93.06   95.2    2.14     9.04  0.16
  PDD0451      7     8.8      1.8     6.01  0.07
             20.81   22.3    1.49    25.61  0.41
             98.74  99.28    0.54     2.02  0.31
  PDD0453    85.84  86.66    0.82     17.1  0.15
  PDD0454    79.5   80.45    0.95    11.46  0.11


Note: Assay intercepts are calculated based on a minimum grade 1g/t
Au using a 0.5gm Au low cut and a maximum internal waste interval of
1.2m.

Geophysics - Geology Interpretation and Integration

In Q3, Serabi completed a comprehensive review and reinterpretation
of all available geophysical and geological data sets, along with
lineament analysis of detailed satellite imagery of the Palito
deposit and near-mine district.  This exercise has revealed a number
of important exploration targets with similar characteristics to that
of the known mineralisation at Palito, NW-SE trending lineaments,
corresponding with electromagnetic and/or soil geochemical anomalies
and cross cut by NE to ENE structures.

Within the 6000 hectare airborne geophysical survey area completed in
January 2008, a total of 66 anomalies have now been interpreted,
including 16 high priority points or zones. The nine points
coincidently fall along NW-SE trending lineaments of similar
orientation to the known Palito mineralisation, whilst the seven
anomalous zones appear to broadly correspond with north-east
cross-cutting, structural features.

Integrating the airborne geophysical survey with existing
broader-scale satellite and aeromagnetic imagery, geological mapping
as well as soil and stream sediment geochemical coverage, has
resulted in us being able to elevate the priority of several of the
anomalies previously identified by the airborne survey, where we have
identified coincident results from other exploration data.  Initial
testing of a number of these coincident features in Q3 has returned
promising results from within the saprolite profile.  Drilling of
deep augur traverses has yielded a number of saprolite-hosted gold
intercepts, returning grades of more than 3g/t gold, whilst soil
geochemistry has returned a number of results with grades in excess
0.3g/t gold.

At the same time, a new review has been undertaken of results
obtained from an earlier IP geophysical survey around the Palito
district, as a result of which a number of previously untested
chargeability and conductive anomalies have been identified.  These
anomalies were again coincident with a number of positive indicators
from other datasets and will now require priority testing.

Pison

Situated some 250 km north-west of Palito, the Pison project is
located in volcanics and volcanoclastic sediments of intermediate to
felsic composition with associated high level granitoid intrusions.
Primary exploration targets in this district are large tonnage,
low-grade, gold deposits. In the July exploration update Serabi had
only just received in their totality the results of a stream sediment
sampling programme as part of a 12 month campaign to screen the
entire 123,000 hectare tenement holding.

In Q3 Serabi completed a review and interpretation of these results
and integrated these with existing data sets. The results confirmed
large drainage catchment areas containing widespread gold
occurrences. A number of these catchments also reported highly
anomalous copper, lead and zinc results, indicative of close
proximity to a primary mineralised source.

Integration of these results with lineament analysis and geological
mapping and interpretation has demonstrated that a large number of
these anomalies lie along a NW or ENE trend, within the same
stratigraphic units.

Serabi will continue to prospect these anomalies and programme a
series of detailed geophysical surveys and surface sampling campaigns
to further advance these targets towards drilling.

Rio Marupa

Exploration activity at the Rio Marupa project, located 150 km
south-west of Palito, was started during Q3.  Drilling of the Goiano
prospect commenced mid-August, with a 1,000m diamond drill
programme.  Preliminary results have indicated anomalous
intersections and assaying of the recovered drill core is in
progress.  The program is scheduled for completion in Q4.

Stream sediment coverage is being conducted concurrently with the
drill programme, with approximately 70% of the 50,000 hectare project
area completed.  The programme will be completed by end of Q4.  A
number of highly anomalous drainage catchment trends have been
revealed to date, corresponding to interpreted aeromagnetic
structural features. Significantly, a number of these anomalies are
located away from historical artisanal activity and could therefore
represent new discoveries.

Enquiries

Serabi Mining plc

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

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

Robyn Hodson                    Tel: [phone]
Investor Relations

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

Numis Securities Limited
John Harrison                   Tel: [phone]
Nominated Adviser

James Black                     Tel: [phone]
Corporate Broker

Farm Street Communications
Simon Robinson                  Tel: [phone]
Public and Media Relations

4C-Burvale Limited
Carina Corbett                  Tel: [phone]
John Carrick-Smith              Tel: [phone]
Investor Relations

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