Exploration Release

SERABI MINING plc ("Serabi" or "the Company)
 Exploration results indicate growing resource potential across the
                       Jardim do Ouro district

Serabi Mining plc (SRB: AIM) announces further exploration success at
the Palito mine and adjacent Jardim do Ouro district.

  * Palito West - structural continuity extended from 80 metres to
    200 metres, together with high-grade drill intersections.
    Geophysical tests along strike indicate this structure continues
    to the south-east and may become very significant in the future
    of the Palito operations.
  * Chico da Santa - new interpretation indicates expansion of the
    area of mineralization following successful geophysical survey
    and its close proximity to the existing Palito underground mining
    operation, potentially allowing the project to be incorporated
    into the production schedule earlier than expected; subsequent
    drill follow-up has resulted in positive results.
  * Ruari's Ridge - exploration adit commenced in August from the
    north-west limit of the payable mineralised zone to enable
    detailed investigation of mining potential.
  * Palito Main Zone - down-dip drilling continues to demonstrate
    good grades and depth continuity.
  * Fixed Loop Electromagnetic ("FLEM") geophysical surveys prove to
    be a key exploration tool at Palito. Following this success in
    highlighting potential new mineralisation, Serabi has contracted
    to fly a helicopter electromagnetic survey over the entire Jardim
    do Ouro district during Q4 2007; the benefit of this rapid
    assessment is expected to provide numerous drill ready targets by
    year-end.
  * New potential will be incorporated into a year-end resource
    review.

Since April  2007,  exploration activity  around  the Palito  mine  /
Jardim do Ouro concessions has been accelerated following a number of
key successes (see Exploration Update press release, dated June 4).
These have  included  excellent drill  results  at Palito  West,  the
discovery and continued  success at  the Ruari's  Ridge prospect  and
successful  FLEM  geophysical  surveys  at  Palito  South,  and  most
spectacularly at Chico da Santa.

The recent  discoveries  at the  Ruari's  Ridge and  Chico  da  Santa
prospects and extended success at Palito West  will hopefully provide
the basis for near term production expansion.  Detailed evaluation of
these satellites is  now underway,  through a  12,000 metre  drilling
programme, trenching and aerial geophysics.  This work will culminate
in an updated geological  resource at the  year-end, together with  a
new mine production plan.


Palito West

Located 200 metres to the south-west of the Palito mine, Palito West
was reported in the Exploration Update of March 26.  Since then,
additional drilling has been ongoing and assays received.  Previous
drilling and sampling defined Palito West mineralisation as a single
feature over 80 metres strike length and to a vertical depth of 50
metres.  The previously reported holes were part of a drill programme
designed to test the zone to the south in preparation for an
"on-lode" development.

Recent significant assays returned are as follows:

+-------------------------------------------------------------------+
|                     |  From  |        | Interval  | Au(g/t |  Cu  |
| Hole                |  (m)   | To (m) |    (m)    |  Au)   | (%)  |
|---------------------+--------+--------+-----------+--------+------|
|                     | 23.54  | 24.54  |   1.00    | 24.64  | 0.63 |
|                     |--------+--------+-----------+--------+------|
|      PDD0281*       | 40.40  | 41.30  |   0.75    |  1.81  | 0.11 |
|                     |--------+--------+-----------+--------+------|
|                     | 88.70  | 91.62  |   2.92    |  1.19  | 0.04 |
|---------------------+--------+--------+-----------+--------+------|
|       PDD0298       | 33.73  | 34.40  |   0.67    |  3.18  | 0.65 |
|---------------------+--------+--------+-----------+--------+------|
|       PDD0300       | 38.75  | 40.24  |   1.49    | 24.50  | 0.41 |
|---------------------+--------+--------+-----------+--------+------|
|       PDD0302       | 49.33  | 50.00  |   0.67    | 66.30  | 2.00 |
|---------------------+--------+--------+-----------+--------+------|
|       PDD0305       | 44.82  | 45.44  |   0.62    | 96.50  | 2.20 |
+-------------------------------------------------------------------+

(* previously reported with results from Palito Laboratory only)

The intersections in PDD0298, PDD0300, PDD0302 and PDD0305 and in
PDD0281 of 2.92m @ 1.19g/t gold represent intersections on the
interpreted main Palito West Zone.  Two recent holes, PDD0334 and
PDD0339 have intersected excellent visual sulphide rich
mineralisation, which fit the Palito West projected position and
extend the strike length to at least 200 metres.  A strong
geophysical electromagnetic (EM) conductor a further 200 metres
south-east of PDD0334 indicates further strike extension
potential.

Interpretation also suggests a second parallel lode to Palito West
approximately 40 metres to the north-east, which returned intercepts
in PDD0281 of 1.0 metre @ 24.64g/t gold and 0.63% copper and includes
historical intercepts in PDD0270 of 0.66 metre @ 13.62 g/t gold.

Following these encouraging results the potential to expand the
Palito West resource is being accelerated to optimise capital
development planning required to bring the deposit into production as
quickly as possible.  Initial detailed follow-up consists of an
enlarged programme of 40 x 40 metre spaced resource drilling now
designed to investigate a target zone of 200 meters strike and 150
meters depth, a substantially larger zone than first anticipated.  On
surface the mineralised zone is being exposed for surface sampling
along the strike length.  This will also provide early production in
Q4 of this year.


                [see attached link to access diagram]
               Plan View of Palito West Mineralisation

Ruari's Ridge

The discovery of significant mineralization at Ruari's Ridge was
reported in the Exploration Update, dated June 4.  Initial drilling
and trenching highlighted up to four mineralised zones, with
structural continuity for 3 zones of up to 900 metres and 300 metres
vertical depth, of which the most prominent zone has been confirmed
on surface by trenches for over 600 metres.  Following these
discoveries a detailed exploration and evaluation drilling programme
has commenced over a central targeted area with a strike of 600
metres and 150 metres vertical depth.

Thirty three (33) diamond drill holes have been completed (8,000
metres), 30 assayed to date, 3 awaiting assay and sixteen (16)
trenches have been cut.  The significant results returned from this
campaign are listed below. A further 4,000 metres (15 holes) are now
planned to assess the strike extension.  The revised target block
will be drilled on a 50 x 50 metre grid, to investigate the top 150
metres, with deeper holes below the top 150 metres every 100 to 150
metres along strike.
Ruari's Ridge Significant Drill Sampling Results include:

+-------------------------------------------------------------------+
|      Hole       |  From   |   To   | Interval  | Au     | Cu      |
|                 |   (m)   |  (m)   |    (m)    | (g/t ) |   (%)   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0315     |  83.93  | 84.68  |   0.75    |  1.52  |  0.04   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0317     |  54.48  | 55.48  |   1.00    |  2.35  |  0.13   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  55.06  | 57.95  |   2.89    |  4.58  |  0.60   |
|                 |---------+--------+-----------+--------+---------|
|     PDD0318     | 135.92  | 136.47 |   0.55    |  2.47  |  0.00   |
|                 |---------+--------+-----------+--------+---------|
|                 | 195.30  | 195.89 |   0.59    |  1.44  |  0.03   |
|-----------------+---------+--------+-----------+--------+---------|
|                 | 155.10  | 156.18 |   1.08    |  3.47  |  0.02   |
|                 |---------+--------+-----------+--------+---------|
|     PDD0322     | 156.85  | 157.36 |   0.51    |  1.44  |  0.04   |
|                 |---------+--------+-----------+--------+---------|
|                 | 206.75  | 207.38 |   0.63    |  2.56  |  0.11   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0323     |  81.00  | 82.22  |   1.22    |  2.96  |  0.08   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  42.07  | 42.82  |   0.75    |  1.22  |  1.10   |
|                 |---------+--------+-----------+--------+---------|
|                 |  85.59  | 86.10  |   0.51    |  2.41  |  0.03   |
|                 |---------+--------+-----------+--------+---------|
|     PDD0325     | 193.32  | 194.28 |   0.96    | 10.60  |  0.19   |
|                 |---------+--------+-----------+--------+---------|
|                 | 199.33  | 199.84 |   0.51    |  2.32  |  0.04   |
|                 |---------+--------+-----------+--------+---------|
|                 | 205.00  | 205.70 |   0.70    |  7.54  |  0.51   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0329     |  33.56  | 34.75  |   1.19    |  1.08  |  0.01   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0331     |  23.26  | 24.03  |   0.77    |  1.42  |  0.10   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0332     |  96.55  | 97.04  |   0.49    |  1.35  |  0.03   |
+-------------------------------------------------------------------+


Ruari's Ridge Significant Trench Sampling Results include:

+-------------------------------------------------------------------+
|      Hole       |  From   |  To   | Interval  | Au     | Cu       |
|                 |   (m)   |  (m)  |    (m)    | (g/t ) |   (%)    |
|-----------------+---------+-------+-----------+--------+----------|
|      TC 39      |  15.00  | 21.00 |   6.00    |  7.16  |   0.01   |
|-----------------+---------+-------+-----------+--------+----------|
|    including    |  18.00  | 20.00 |   2.00    | 14.54  |   0.02   |
|-----------------+---------+-------+-----------+--------+----------|
|      TC 38      |  35.00  | 40.00 |   5.00    |  1.41  |   0.01   |
|-----------------+---------+-------+-----------+--------+----------|
|    including    |  38.00  | 39.00 |   1.00    |  4.03  |   0.01   |
|-----------------+---------+-------+-----------+--------+----------|
|                 |  17.30  | 18.75 |   1.45    |  1.11  |   0.01   |
|      TC 34      |---------+-------+-----------+--------+----------|
|                 |  33.60  | 34.10 |   0.50    | 12.24  |   0.01   |
|-----------------+---------+-------+-----------+--------+----------|
|                 |  5.75   | 12.00 |   6.25    |  1.40  |   0.02   |
|      TC 32      |---------+-------+-----------+--------+----------|
|                 |  42.00  | 43.00 |   1.00    |  1.26  |   0.01   |
+-------------------------------------------------------------------+

(Trench samples have been assayed at the Palito Mine Laboratory
only.)

While the zones continue to exhibit structural continuity to the
north-west, gold and copper values decrease, eventually becoming
barren some 150 metres north of the airstrip.  To the south-east the
zones remain very open.  At times, though massive sulphides and
quartz are absent, alteration and disseminated sulphides are always
present in the structures. The current southerly extension
approximately 600 metres south of the runway has good structure, and
remains open with the possibility of continuity towards a
geochemistry anomaly 300 metres further south.  There is currently no
EM survey to the south.

Results have been sufficiently encouraging for an exploration adit
"in-ore" to start at the northern extent of the zone.  This adit will
be mined at the 250m elevation and will be driven south to
investigate in detail the economic viability of the mineralisation.


                [see attached link to access diagram]
   Recent FLEM results in the Chico da Santa and Palito South areas
   highlight strong correlation with known areas of mineralisation


Chico da Santa

Interpretation based on 11 older drill holes had shown three,
high-grade structures at Chico da Santa with limited strike and dip.
During the second quarter this year Serabi undertook a FLEM survey
over the property, with extremely encouraging results that now
suggest Chico da Santa is a much more significant project than
previously thought.  As a result, exploration activity has
accelerated here dramatically.

Current Status:

  * Up until April 2007, 1,326 metres of Reverse Circulation (RC) and
    4,700m of diamond core (DC) drilling were completed, establishing
    continuity of 200 metres strike and 100 metres dip length for 3
    zones.
  * Since April the FLEM survey has been completed and numerous EM
    conductors clearly defined, resulting in a new geological
    interpretation.
  * Since April, 14 holes have been drilled, 8RC and 6DC.  These have
    now identified 5 mineralized zones, highlighted by the holes that
    recorded intersections as follows:

+-------------------------------------------------------------------+
|      Hole       |  From   |   To   | Interval  | Au     | Cu      |
|                 |   (m)   |  (m)   |    (m)    | (g/t ) |   (%)   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  63.28  | 64.20  |   0.92    |  1.07  |  0.03   |
|    PDD0303*     |---------+--------+-----------+--------+---------|
|                 |  73.81  | 74.37  |   0.56    | 10.20  |  0.39   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  78.40  | 79.04  |   0.64    |  0.60  |  0.04   |
|    PDD0308*     |---------+--------+-----------+--------+---------|
|                 | 136.45  | 137.00 |   0.55    | 43.20  |  1.40   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0320     |  58.16  | 60.57  |   2.41    | 19.79  |  1.73   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  70.55  | 73.00  |   2.45    |  2.37  |  0.03   |
|     PDD0328     |---------+--------+-----------+--------+---------|
|                 |  76.04  | 76.59  |   0.55    |  6.14  |  0.03   |
|-----------------+---------+--------+-----------+--------+---------|
|                 | 103.73  | 104.70 |   0.67    |  5.92  |  0.60   |
|     PDD0335     |---------+--------+-----------+--------+---------|
|                 | 120.42  | 120.94 |   0.52    |  1.16  |  0.05   |
|-----------------+---------+--------+-----------+--------+---------|
|     PDD0341     | 188.62  | 189.96 |   1.34    |  3.63  |  0.61   |
|-----------------+---------+--------+-----------+--------+---------|
|    Including    | 189.42  | 189.96 |   0.54    |  6.70  |  0.68   |
|-----------------+---------+--------+-----------+--------+---------|
|    RC-CS-009    |  39.00  | 44.00  |   5.00    |  3.33  |  0.30   |
|-----------------+---------+--------+-----------+--------+---------|
|    Including    |  40.00  | 41.00  |   1.00    | 13.30  |  0.81   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  1.00   |  4.00  |   3.00    |  1.02  |  0.01   |
|    RC-CS-016    |---------+--------+-----------+--------+---------|
|                 |  6.00   |  8.00  |   2.00    |  1.51  |  0.01   |
|-----------------+---------+--------+-----------+--------+---------|
|    RC-CS-018    |  34.00  | 35.00  |   1.00    |  1.42  |  0.01   |
|-----------------+---------+--------+-----------+--------+---------|
|    RC-CS-020    |  29.00  | 31.00  |   2.00    |  2.37  |  0.12   |
|-----------------+---------+--------+-----------+--------+---------|
|   RC-CS-021#    |  79.00  | 81.00  |   2.00    | 10.27  |  0.33   |
|-----------------+---------+--------+-----------+--------+---------|
|   RC-CS-022#    |  28.00  | 29.00  |   1.00    |  9.56  |  0.01   |
|-----------------+---------+--------+-----------+--------+---------|
|                 |  8.00   | 11.00  |   3.00    |  1.30  |  0.01   |
|                 |---------+--------+-----------+--------+---------|
|                 |  71.00  | 72.00  |   1.00    |  1.40  |  0.06   |
|   RC-CS-023#    |---------+--------+-----------+--------+---------|
|                 |  79.00  | 80.00  |   1.00    |  1.87  |  0.02   |
|                 |---------+--------+-----------+--------+---------|
|                 | 101.00  | 102.00 |   1.00    |  1.22  |  0.14   |
+-------------------------------------------------------------------+

((*) previously reported with results from Palito Laboratory only)
((#) full results of holes pending)


  * While intersections are narrow, some very high gold values do
    occur.

  * Following the success of the FLEM survey, the most easterly three
    structures, C1, C2 and C3 will be drilled over a significantly
    larger target area than originally planned, with substantially
    longer strike extensions.  The strike of zones also shows a 290°
    - 310° orientation, indicating the Chico da Santa zones will
    intersect the Palito Main Zone mineralization at current mine
    elevations, thereby providing easier and earlier production
    possibilities.
  * Some 6,000 metres of drilling is now planned over a 40 x 40 metre
    grid, along 450 metres strike and 150 metre depth.  In addition,
    up to 20 trench sections will also be carried out.
  * Trenching in underway to confirm the surface mineralisation on
    coincident FLEM and geochemical anomalies with results from three
    trenches received to date. Results include;

+-------------------------------------------------------------------+
|     Trench      |         |       |           |        |          |
|                 |  From   |  To   | Interval  | Au     | Cu       |
|                 |   (m)   |  (m)  |    (m)    | (g/t ) |   (%)    |
|-----------------+---------+-------+-----------+--------+----------|
|      TC 40      |  10.95  | 12.45 |   1.50    |  6.58  |   0.01   |
|-----------------+---------+-------+-----------+--------+----------|
|      TC 42      |  5.00   | 6.90  |   0.90    | 91.70  |   0.12   |
+-------------------------------------------------------------------+

 (Trench samples have been assayed at the Palito Mine Laboratory
only.)

The Palito Main Zone (PMZ)

The PMZ will continue to be the 'backbone' of production for the
coming year.  The decline ramp is now developing below the 144 metre
level, and with levels 210, 192, 178, 163 and now 144metre levels in
various stages of production and development, the PMZ has over one
year of production stoping 'blocked out'.  Further ore lies in the
existing levels and planned levels to the 100 meter elevation.  In
the southern half of the mine, there are drill indicated and drill
inferred resources to the 50 metre elevation i.e. approximately 150
metres vertical depth.  It is envisaged the decline will be developed
to the 100 metre level by Q1 2008.  During Q4 2007 and Q1 2008, deep
drilling to test the down dip extensions of the PMZ will be
undertaken to test the potential
extension of the PMZ to the 0 m level and also to optimize the
capital development to that level.  Subject to the continuity of the
resource at depth, it is estimated there is approximately 5,000
tonnes per vertical metre of diluted resource. At a current annual
production rate of approximately 200,000 tonnes, approximately 2
levels are exhausted in the PMZ each year.


New Production Potential & Resource Update

With the potential to expand the Palito West resource in the very
near future, a scoping study is now underway to incorporate Palito
West into the proposed capital development of the Ruari's Ridge
deposit, some 100 metres to the south-west via a decline access.

The geological resource has not been updated since January 2006,  and
with exploration success at the Jardim do Ouro prospects, the company
has recently appointed NCL Brazil Ltda to undertake a new  geological
resource and mineral reserve estimate at year-end.

Technical and geological information in this report has been read and
approved by Serabi's  Chief Geologist, Mr  Chris Spurway. Mr  Spurway
BSc (Honours) is a graduate of  the University of Sydney in  Geology.
He is a  member of the  AusIMM and has  worked for over  16 years  in
mineral exploration including three years in Brazil.


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]




                          Notes to Editors

The  Tapajos  region  of  northern  Brazil  encompasses  an  area  of
approximately 100,000  Km2, mainly  located  in the  south-west  Para
State.  It has a significant history of alluvial gold production with
estimated output of  some 30  million ounces  having been  recovered,
primarily from artisanal workings.

Present in the Tapajos  since 1999, Serabi  has established the  only
'hard rock' mine in the region to date at its Palito gold mine, which
produced 39,197 ounces  of gold equivalent  in 2006 from  underground
mining of high-grade, gold/copper mineralisation.

Serabi has a significant exploration programme focused on the Tapajos
region, owns and operates four surface drilling rigs and has its  own
assay laboratory.

---END OF MESSAGE---




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