Exploration Successes at Palito West

PRESS RELEASE

21st November  2007


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

             Accelerated mine development at Palito West
                 following high-grade drill results


Serabi is pleased to announce that the latest campaign of strike and
extension drilling at Palito West has now been completed and has
yielded significant high-grade gold/copper mineralisation.  A
preliminary mine study has determined that the access to Palito West
should be developed from the existing Palito Main Zone ("PMZ")
underground operations rather than using a separate decline portal.

Palito West lies 200m to the south-west of the Palito Main Zone. This
latest round of drilling has confirmed the previously reported
structural continuity within which it has now been shown exists a
high-grade zone of mineralisation extending over 150 metres along
strike and over 150 metres vertically.  It has also confirmed the
existence of a second high-grade zone 40 metres to the south-east and
a third zone some 100 metres to the south-west coincidental with a
large down-hole electromagnetic anomaly.

The Palito West zone has been drilled on an approximate 40 metres x
40 metres grid over 200 metres strike to a vertical depth of 200
metres   The longitudinal section indicates that the high-grade
structure remains open at depth.  A further drilling campaign to
expand the extent of the mineralisation will be undertaken in the
early part of 2008.

Results returned to date include:



 Hole    East    North   Elevation Dip/Az   From    To    Drill    Au    Cu
          (m)     (m)      (mRL)   (local)  (m)    (m)   Interval (g/t) (%)
PDD0343 9894.02 20364.56   1234.92 -45/270  74.65  75.58     0.93  21.4 0.82
PDD0345 9926.16 20325.55   1219.97 -45/270  20.64  21.23     0.59  2.18 0.07
                                           124.45 125.90     1.45  3.95 0.14
PDD0346 9927.19 20325.64   1220.02 -60/270  29.25  29.92     0.67  1.77 0.10
PDD0348 9941.89 20370.02   1238.99 -50/270  13.90  15.72     1.82  3.08 0.01
                                            77.13  78.10     0.97  1.99 0.08
                                            124.9 126.49     1.59  1.36 0.04
                                           133.67 134.38     0.71  20.8 0.39
PDD0349 9865.92 20323.37   1220.94 -45/270  41.72  42.55     0.83  15.6 0.22
PDD0350 9723.02 20211.39   1240.27 -45/90   19.55  21.04     1.49  6.44 0.05
                                            30.01  30.67     0.66  4.13 0.09
                                            45.38  45.90     0.52  2.11 0.01
                                           245.90 246.97     1.07  2.01 0.17
PDD0352 9807.31 20209.77   1222.00 -45/90                         <1g/t
PDD0353 9802.48 20129.62   1221.96 -45/90                         <1g/t
PDD0354 9950.08 20049.09   1213.30 -45/270                        <1g/t
PDD0356 9781.75 19969.45   1207.04 -50/90                         <1g/t
PDD0357 9929.77 20306.98   1213.72 -50/265  16.37  17.26     0.89  29.2 0.25
                                            36.64  37.18     0.54  6.07 0.09
                                            47.97  48.95     0.98  1.68 0.13
                                            96.65  97.16     0.51  5.18 0.43
                                           122.25 124.35     2.10 14.81 0.18
PDD0358 9920.71 20409.77   1245.75 -62/270   8.30   9.28     0.98  1.11 0.02
                                           110.30 110.94     0.64  7.43 0.12
PDD0360 9929.72 20306.53   1213.79 -60/263 165.52 166.56     1.04  41.2 2.00
PDD0362 9939.41 20449.56   1259.09 -50/270  21.67  22.63     0.96  1.95 0.09
                                           108.45 109.28     0.83  55.9 4.50
PDD0363 9966.33 20370.35   1237.90 -50/270  49.97  50.90     0.93  1.50 0.04
                                           178.55 179.24     0.69  3.40 0.85
PDD0364 9950.94  20408.8   1248.11 -60/270 176.69 177.60     0.92  1.35 0.37
PDD0365 9900.20 20253.79   1213.26 -60/267                        <1g/t
PDD0367 9669.83 19870.13   1213.53 -51/91  212.88 213.65     0.77  2.66 0.00
PDD0369 9778.00 20050.15   1218.43 -60/270                        <1g/t

Intercepts calculated using a 0.5g/m Au lower cut, containing maximum
internal waste of 1.2 down hole metres
All samples reported are from half core NQ or BW sized drill core and were
prepared and analysed by SGS Lakefield Geosol Laboratories of Brazil in
accordance with JORC / NI 43-101 compliance guidelines



The preliminary mine design based on these latest results has been
revised and the Company now intends to mine an access from the
existing PMZ ramp allowing the development of the Palito West
mineralisation.

Mr Mike Hodgson, Chief Executive of Serabi, commenting on the results
said that, "Palito West has been taking on a growing importance in
our thinking as the results of this latest campaign have unfolded and
our decision to change the conceptual mine plan is a result of the
excellent results achieved.  This revised plan will permit initial
access to ore at a greater depth and will improve mining efficiency
and flexibility.  The development will intersect the mineralisation
at an elevation of 1150 metres and will involve a cross-cut of some
180 metres.  This work is scheduled for completion by the end of the
first quarter of 2008.  This development plan still provides the
opportunity for rapid future access to the mineralisation of the
Ruari's Ridge prospect.  Our decision to push ahead with this
development is further validated by the recent intersection of
further veins between Palito West and the PMZ.  It is the Company's
intention to evaluate these structures from this underground
development"


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]

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


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

Parkgreen Communications
Simon Robinson     Tel:  [phone]



Notes to Editors

The  Tapajos  region  of  northern  Brazil  encompasses  an  area  of
approximately 100,000  km²,  primarily situated  in  south-west  Para
State.  It has a significant history of alluvial gold production with
estimated gold  production of  some 30  million ounces  having  being
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  and  achieved
commercial production at Palito in October 2006

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

PRESS RELEASE
                                                            20
September 2007





            SERABI MINING plc ("Serabi" or "the Company)
                               Interim
            Results for the six months ended 30 June 2007


Highlights

*
  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 ounces gold equivalent
  represents a 6% year-on-year improvement
*
  Mining volumes and plant throughput are at record levels
*
  Further improvements to mining and mill productivity are
  anticipated during the remainder of 2007
*
  Changes to mining methods introduced with noticeable
  benefits anticipated at the end of the year
*
  Management changes reflect the Company's changing status to
  a producer with significant exploration opportunities
*
  Operating profits being generated by the Palito mine.  EBITDA for
  the six months of US$1.1 million
  (2006 - calendar year loss of US$0.8 million)

Report
of the Chairman and Chief Executive

Having achieved commercial
production at the Palito  gold mine last October,  the first half  of
2007 has brought
with it a number of important successes that highlight the  company's
future
potential and at  the same time  a number of  new challenges.   Taken
together, Serabi has established a
strong platform and is now ready  to move forward to the next  stage,
which is
intended to position the company for significant growth.

Exploration
and Development
Without doubt the exploration
success we  have  previously reported  at  Jardim do  Ouro  over  the
Ruari's Ridge, Chico
da Santa and Palito West prospects,  is one of the highlights of  the
period and
provides tangible evidence of  the wider potential  of the Jardim  do
Ouro
district.  We are confident that as we
step further away  from the  Palito Main  Zone, we  will continue  to
discover new
prospects of similar  character which can  serve as satellite  mining
operations
for a central plant and a basis for resource and production growth.

With this objective in mind, we
successfully completed the placing of new ordinary shares in July  to
raise
gross proceeds of US$25 million.
Combined with cash flow  from current operations,  the funds will  in
part
allow us to  evaluate in detail  the Ruari's Ridge,  Palito West  and
Chico da Santa
prospects.  We would anticipate that a
successful evaluation will enable Serabi to introduce production from
these
prospects into  our  planning  for 2008,  leading  to  an  annualised
production rate
of some 60,000 ounces gold equivalent during the year. .

At the same time we are
significantly stepping up our exploration programme across the  wider
Jardim do
Ouro district and Tapajos region, in order to
identify and evaluate  the extent  of other targets  that we  believe
exist in this
area.  Following from the success of
ground electromagnetic  surveys  ("EM")  in  identifying  mineralised
areas at Chico
da Santa and Palito  South areas, the first  stage of this  programme
will be to
carry out in October a helicopter borne EM survey covering over 5,000
hectares
of the Jardim do Ouro area.  The characteristics
of Palito  mineralisation  are such  that  the EM  survey  highlights
potential
'hotspots'.  Combined with information
obtained from  other  exploration  work,  the  results  are  expected
rapidly to
produce a number of targets for drilling.
We are confident that such an approach should have a high rate of
success in locating the  sulphide mineralisation which is  associated
with the
gold occurrences at Jardim do Ouro.

Meanwhile, evaluation work continues
apace  at  the  Ruari's  Ridge,  Palito  West  and  Chico  da   Santa
prospects.  We are very encouraged in particular by the
strike extension that has recently been identified on the Palito West
prospect,
together with the high-grade intersections that the detailed drilling
programme
is producing.  Additionally, we note that
some of the mineralised structures of the Chico
da Santa prospect are located closer



to the Palito Main Zone mining
operation than had been previously thought.
If this is substantiated  by
further drilling, then it  is likely that we  will be able to  access
the Chico da
Santa ore  veins  for  production  by  the  rapid  development  of  a
cross-cut drive
from the existing  Palito mine,  thus avoiding  the need  for a  more
costly decline
access solely for the exploitation of this area.

Operations
In recent months underground mining
has been adapted to a 'cut-and-fill' method.
Whilst production results  for the  first half of  the year  exceeded
those
for the same  period last year,  it has been  disappointing that  the
long-hole
stope mining method introduced at the end of 2006 has not yielded the
productivity
improvements that were anticipated.  We
have not abandoned this method and continue to look at solutions that
will
allow us to deliver the ore  quantities at the desired feed grade  to
the plant
using this technique.  In the meantime, 'cut
and fill'  enables  more selective  ore  extraction and  reduces  the
unplanned
dilution that occurred with long-hole mining.
The economic benefit of the higher stoping grade that can be achieved
by
the more precise  cut-and-fill technique  substantially offsets  this
slower and
slightly more costly option.

In anticipation of the need for
equipment for the development of Ruari's Ridge, Palito West and Chico
da Santa, and the
lead times  involved,  orders  have  recently  been  placed  for  key
additional
underground equipment.  This includes the
introduction of narrow scooptrams, which  we expect will result in  a
significant
improvement of the  feed grade  achieved from  development drives  by
reducing the
levels of dilution by waste rock still further.
The plant is as a consequence  of lower dilution able to produce  the
same
level of gold whilst treating less ore and in so doing free up  plant
capacity
and reduce plant operating costs.
Current lead times for delivery  indicate that this equipment  should
be
on site towards the end of 2007 with the resultant benefits  becoming
evident
early in 2008.   In the meantime the mine
plan for the  last quarter  of 2007 does  include a  higher ratio  of
stoping ore to
development than we have  seen to date and  at this stage we  project
full year
production to show a small increase on 2006 levels.

The plant continues to function well
with recoveries in excess of 90%.  In
anticipation of  changes  required to  meet  the increased  level  of
production in
2008,  we  are  considering   the  installation  of  additional   CIP
capacity.  At current production levels, studies
indicate that  this would  increase total  recovery by  at least  2%,
generating a
capital pay-back within six months.

Finance
In reviewing the financial
statements for the period  it is necessary to  bear in mind that  the
comparative
full year  2006  figures  comprise Revenue,  Operating  Expenses  and
Depreciation of
the Mine  Asset for  a 3  month (fourth  quarter) period  whilst  the
remaining
expenses are for the full 12 month period.
This reflects the commencement of Commercial Production at the end of
September  2006  and  the  concurrent  cessation  of  the  policy  of
capitalisation of
costs and revenues associated with  the mining operations up to  that
date.  This principal has been discussed in more
detail in the 2006 Annual Report.

The company is generating operating
profits from  the Palito  mine, with  EBITDA for  the six  months  of
US$1.1 million,
against a loss for the 2006 calendar year of US$0.8 million.   Higher
unit costs than the preceding period
are related to the already reported lower production, rather than  an
escalating
cost base. As is expanded on  below, at a head-line level we  believe
the financial
results for the first 6 months  of 2007 do not reflect the  long-term
outlook or
the continuing efficiency drives that are being implemented.

Operating cash costs for Q4 2006
before accounting for copper and silver credits was BrR$ 10.1 million
compared
with an average quarterly cost in the first half of 2007 of BrR$ 10.2
million.  Notwithstanding the obvious
effect of lower  gold production resulting  from reported lower  feed
grades, two
other  factors  have  also  influenced  our  current  unit  costs  of
production.  In line with industry standards costs per
ounce are calculated after deducting by-product credits from the base
operating
costs.  In Q4 2006 we produced 224.6
tonnes of copper and generated a by-product credit of $1.75  million.
 For the first half of 2007 copper credits were
$1.7 million, based  on production  of 252.6 tonnes.   Secondly,  the
continued appreciation of the
Brazilian Real has increased our US$ denominated costs by 6.3%
against Q4 2006.

In the short term, plans to increase
feed grades are expected to deliver direct bottom line improvements.
If we are able to maintain current ore
volumes at higher  grades there will  be minimal effect  on the  cost
base, which
is primarily linked to volumes processed and not grade.  Our reported
Q4 2006 cost per ounce gold equivalent
was US$252.  On a like-for-like basis
(exchange and by-product credits) the figure would have been $344 per
ounce
gold equivalent.  Given that our
production for the first six months  was below plan and averaged  80%
of the Q4
2006 levels the cash cost of $442 per ounce whilst disappointing does
not
reflect a long-term  trend and  we expect to  see direct  improvement
with better
grade and thus production.  The average
cash costs over the six month period were significantly influenced by
low gold
production in the  first two months  of the year  and since March  we
have seen
improvements with cash costs averaging  $370 per ounce over the  last
four
months.  The short-fall in production in
the early part of  the year also placed  short term pressure on  cash
flow during
this six month  period and required  the Company to  enter into  some
short term
arrangements in Brazil
with a consequent





impact on interest charges in the
period.  These arrangements have been
eliminated and we would expect  a significant reduction in this  cost
in the
second half of the year.

The potential to develop new areas
within Chico da
Santa, Palito  West  and  Ruari's  Ridge  will  increase  flexibility
further and
generate economies of scale as mined volumes increase through 2008.
In the meantime we are, given current prices
and our balance  sheet strength,  in a strong  financial position  to
achieve our
medium term objectives.

Personnel
Finally, shareholders were recently
made aware of significant management  changes that took place at  the
end of
August.  We would like to reiterate our
gratitude to Bill Clough  and Sergio Aquino,  the co-founders of  the
Company, for
their efforts  and  commitment in  bringing  Serabi to  where  it  is
today.  As Serabi enters the next stage in its
development, we are  pleased that  both Bill and  Sergio will  remain
closely
involved with  Serabi  as both  shareholders  and executives.    This
continued contribution is highly valued
and we take this opportunity to express sincere thanks to them both.

Mike Hodgson, our new Chief
Executive, and Wanderlan Almeida, our new Managing Director of Serabi
Mineracao, are two  individuals with almost  50 years of  operational
experience
between them, which  bodes well  for Serabi  being able  to meet  its
production
growth plans.


Graham
Roberts                  Mike Hodgson
Chairman                              Chief Executive
19 September 2007






Consolidated
Income Statement


+-------------------------------------------------------------------+
|            | For the six      | For the six      | For the year   |
|            | months           | months           | ended          |
|            | ended            | ended            | 31 December    |
| (Expressed | 30 June 2007     | 30 June 2006     | 2006           |
| in US$)    | (unaudited)      | (unaudited)      | (audited)      |
+-------------------------------------------------------------------+

Revenue                          13,023,940   -           7,256,136
Operating                        (10,268,037) -           (4,846,122)
expenses
Profit from operations           2,755,903    -           2,410,014
Administration                   (1,552,718)  (1,320,150) (2,860,522)
expenses
Share-based                      (73,831)     (331,338)   (331,338)
payments
Depreciation                     (781,733)    (572,364)   (1,426,004)
of plant and equipment
Depreciation                     (344,678)    -           (232,097)
of mine asset
Profit/(Loss) on                 2,943        (2,223,852) (2,439,947)
ordinary    activities    before
interest and other income
Foreign                          145,932      582,390     449,857
exchange gain
Interest                         (518,798)    (116,992)   (339,328)
payable
Interest                         76,201       48,531      120,649
receivable
Loss on ordinary activities      (293,722)    (1,709,923) (2,208,769)
before taxation
Taxation                         (203,800)    -           -
Loss on ordinary                 (497,522)    (1,709,923) (2,208,769)
activities after taxation
Loss per ordinary share          (0.45c)      (1.61c)     (2.04c)
(basic and diluted)








Consolidated
Balance Sheet


+-------------------------------------------------------------------+
|            |       |              | As at             | As at 31  |
|            |       | As at        | 30 June 2006      | December  |
| (expressed |       | 30 June 2007 | (unaudited and    | 2006      |
| in US$)    | Notes | (unaudited)  | restated)         | (audited) |
+-------------------------------------------------------------------+

Non-current assets
Goodwill                         1,752,516   1,752,516   1,752,516
Development                    3 9,666,538   17,934,350  6,454,074
and deferred exploration costs
Property,                      4 24,059,435  7,036,927   22,203,706
plant and equipment
Total non-current                35,478,489  26,723,793  30,410,296
assets
Current assets
Inventories                    5 2,404,669   2,754,891   2,441,783
Trade                            1,448,417   1,431,230   1,128,830
and other receivables
Prepayments                      1,653,412   1,693,165   1,521,347
and accrued income
Cash at                          1,050,644   3,973,212   3,856,878
bank and in hand
Total current assets             6,557,142   9,852,498   8,948,838
Current liabilities
Trade                            3,872,369   3,125,030   4,053,744
and other payables
Accruals                         671,404     106,510     176,252
Interest                         661,765     94,714      582,491
bearing liabilities
Total current                    5,205,538   3,326,254   4,812,487
liabilities
Net current assets               1,351,604   6,526,244   4,136,351
Total assets less                36,830,093  33,250,037  34,546,647
current liabilities
Non-current liabilities
Trade                            124,794     142,441     180,314
and other payables
Provisions                       710,206     448,121     799,749
for liabilities and charges
Interest                         269,079     68,405      368,778
bearing liabilities
Total non-current                1,104,079   658,967     1,348,841
liabilities
Net assets                       35,726,014  32,591,070  33,197,806

Equity
Called                         7 19,401,597  19,170,496  19,338,351
up share capital
Share                            15,383,298  15,045,251  15,351,674
premium reserve
Option                           2,800,205   3,381,121   2,818,722
reserve
Translation                      3,222,686   (693,795)   382,502
reserve
Profit                           (5,081,772) (4,312,003) (4,693,443)
and loss account
Equity shareholders'             35,726,014  32,591,070  33,197,806
funds


The interim financial information has
not been audited  and does not  constitute statutory accounts  within
the meaning
of Section  240 of  the  Companies Act  1985.   The  Group  statutory
accounts
for the year ended 31 December  2006, prepared under IFRS as  adopted
in the EU, has
been filed with the Registrar of Companies.  The auditors' report  on
these
accounts was  unqualified  and  did not  contain  a  statement  under
Section 237 (2)
or 237 (3) of the Companies Act 1985.






Consolidated
Statements of Changes in Shareholder's Equity


                                                          Profit
(expressed                          Share                 and
in US$)       Share      Share      option    Translation loss        Total
(unaudited)   Capital    Premium    reserve   reserve     account     equity
Equity
shareholders'
funds at 1    17,974,336 11,818,128 2,690,052 (1,273,264) (2,602,080) 28,607,172
January 2006
(restated)
Foreign                                       579,469                 579,469
currency
adjustments
Loss for                                                  (1,709,923) (1,709,923)
the period
Total                                         579,469     (1,709,923) (1,130,454)
recognised
loss for  the
period
Share                               246,076                           246,076
option
expense
Accrual                             444,993                           444,993
for     Share
Issue
Issue of      1,134,055  3,402,165                                    4,536,220
ordinary
shares
Share                    (254,022)                                    (254,022)
issue
expenses
Conversion    62,105     78,980                                       141,085
of options
Equity        19,170,496 15,045,251 3,381,121 (693,795)   (4,312,003) 32,591,070
shareholders'
funds

at  30   June
2006
(restated)
Foreign                                       1,076,297               1,076,297
currency
adjustments
Loss for                                                  (498,846)   (498,846)
the period
Total                                         1,076,297   (498,846)   577,451
recognised
profit    for
the period
Issue of      148,331    296,662    (444,993)                         -
ordinary
shares
Conversion    19,524     9,761      (117,406)             117,406     29,285
of options
Equity        19,338,351 15,351,674 2,818,722 382,502     (4,693,443) 33,197,806
shareholders'
funds

at         31
December 2006
Foreign                                       2,840,184               2,840,184
currency
adjustments
Loss for                                                  (497,522)   (497,522)
the period
Total                                         2,840,184   (497,522)   2,342,662
recognised
profit    for
the period
Share                               90,676                            90,676
option
expense
Conversion    63,246     31,624     (109,193)             109,193     94,870
of options
Equity        19,401,597 15,383,298 2,800,205 3,222,686   (5,081,772) 35,726,014
shareholders'
funds

at  30   June
2007







Consolidated
Cash Flow Statement


                             For the          For the six
                             six months ended months      For the
                             30 June          ended       year ended
                             2007             30 June     31 December
(expressed                   (unaudited)      2006        2006
in US$)                                       (unaudited) (audited)
Cash flows from
operating activities
Operating                    2,943            (2,223,852) (2,439,947)
profit / (loss)
Depreciation                 1,126,411        572,364     1,658,101
-   plant,   equipment   and
mining properties
Option                       73,831           142,443     142,443
costs
Share-based                  -                188,895     188,895
payments
Interest                     (518,798)        (116,992)   (339,328)
paid
Foreign                      (199,216)        1,977,704   (281,231)
exchange
Changes in working
capital
Decrease / (increase)        284,674          (753,002)   (443,136)
in inventories
(Increase) / decrease        (119,824)        (518,212)   399,765
in receivables, prepayments

and accrued income
(Decrease) / increase        (259,780)        770,837     1,314,609
in payables, accruals and
provisions
Net cash flow from           390,241          40,185      200,171
operations

Investing activities
Proceeds                     -                -           114,681
of sale  of property,  plant
and equipment
Purchase                     (673,779)        (1,564,509) (2,826,077)
of   property,   plant   and
equipment
Exploration                  (2,410,359)      (1,378,186) (373,568)
and development  expenditure
(1)
Interest                     76,201           48,531      120,649
received
Net cash outflow on          (3,007,937)      (2,894,164) (2,964,315)
investing activities

Financing activities
Issue of                     -                4,536,220   4,536,220
ordinary share capital
Capital                      (322,452)        -           (327,406)
element  of  finance   lease
payments
Conversion                   94,870           141,085     170,370
of options
Payment                      -                (254,022)   (254,022)
of share issue costs
Net cash (outflow) /         (227,582)        4,423,283   4,125,162
inflow    from     financing
activities
Net (decrease) /             (2,845,278)      1,569,304   1,361,018
increase in  cash  and  cash
equivalents
Cash and cash                3,791,202        2,152,452   2,152,452
equivalents at beginning  of
period
Exchange difference on       56,398           251,456     277,732
cash
Cash and cash                1,002,322        3,973,212   3,791,202
equivalents at end of period
(note 6)

(1)   Exploration
and development expenditure of the Group for 2006 is stated net of
pre-operating income of US$2,839,018 ($1,990,800 to 30 June 2006).




Notes
to Interim Financial Statements

1.  Basis of preparation
These interim accounts are for the
six month period ended 30 June 2007. Comparative information has been
provided
for the unaudited six  month period to 30  June 2006 and the  audited
twelve
month period from 1 January to 31 December 2006.

The accounts for the period have
been prepared in accordance  with the policies  which the Group  will
adopt for
its annual accounts, notably:

(i)
the Financial  Statements are  presented  in US  Dollars.   They  are
prepared on the historical cost
basis or the  fair value  basis where  the fair  valuing of  relevant
assets and
liabilities has been applied.  The
financial statements whilst not statutory accounts have been prepared
otherwise
in accordance with  International Financial  Reporting Standards  and
their
interpretations issued by the Accounting Standards Board and  adopted
for use
within the European Union (IFRS);

(ii)
all costs related to the exploration of mineral properties
are  capitalised  and  deferred  until  either  the  properties   are
demonstrated to be
commercially feasible or  until the properties  are sold, allowed  to
lapse or
abandoned, at which time any capitalised costs are written off to the
income
statement.  All costs incurred prior to
obtaining the  legal right  to undertake  exploration and  evaluation
activities on
a project are written off as incurred.
Exploration and evaluation costs
arising following  the  acquisition  of an  exploration  licence  are
capitalised on
a project by  project basis, pending  determination of the  technical
feasibility
and commercial viability of the project.
Costs incurred include appropriate technical and administrative
overheads, but not general overheads.
Deferred exploration costs are carried at historical cost less any
impairment losses recognised.
Property, plant and equipment used
in the Group's exploration activities are separately reported;

(iii)  inventories are valued at the lower of cost
and net realisable value;

(iv)  property, plant and equipment is depreciated
over its useful life;

(v)   the Group commenced commercial production at
the Palito mine effective 1 October 2006.
Prior to this date all revenues and operating costs were  capitalised
as
part of the development costs of the mine.
Effective from 1  October 2006 the  accumulated development costs  of
the
mine were re-classified  as Mining  Property costs and  such cost  is
being
amortised over  the  anticipated  life  of the  mine  on  a  unit  of
production basis;

(vi)  revenues are recognised only at the time of
sale. Any unsold production and in particular concentrate is held  as
inventory
and valued at production cost until sold.


2.  Taxation
Taxation represents a provision for
corporate taxes  due  on  taxable  profits arising  in  Brazil.    No
deferred tax asset arising from carried
forward losses incurred outside of Brazil has been recognised in the
financial statements because  of uncertainty  as to  the time  period
over which
this asset may be recovered.


3.  Exploration and development costs


                                                         31 December
                                            30 June 2007 2006
                                            (unaudited)  (audited)
Balance                                     6,454,074    17,420,146
at beginning of period
Additions                                   2,427,204    733,298
(1)
Foreign                                     785,260      1,423,809
exchange
Transfer                                    -            (13,123,179)
to Property,  Plant and  Equipment  (Mining
property)
Balance at end of                           9,666,538    6,454,074
period

(1)   Exploration
and development expenditure of the Group for 2006 is stated net of
pre-operating income of US$2,839,018 ($1,990,800 to 30 June 2006).





4.  Property, plant and equipment


                       30 June     31 December
                       2007        2006
                       (unaudited) (audited)
Cost
Balance                24,685,071  6,531,584
at beginning of period
Additions              896,750     4,539,076
Transfer               -           13,123,179
from intangible Assets
Foreign                2,397,024   642,612
exchange
Disposals              -           (151,380)
Balance at end of      27,978,845  24,685,071
period

Depreciation
Balance                (2,481,365) (768,351)
at beginning of period
Charge                 (1,126,411) (1,658,101)
for period
Foreign                (311,634)   (91,611)
exchange
Eliminated             -           36,698
on sale of asset
Balance at end of      (3,919,410) (2,481,365)
period

Net book value         24,059,435  22,203,706



5.  Inventories


                     30 June                  31 December
                     2007        30 June 2006 2006
                     (unaudited) (unaudited)  (audited)
Bullion              693,023     1,029,596    918,269
and work in progress
Consumables          1,711,646   1,725,295    1,523,514
                     2,404,669   2,754,891    2,441,783



6.
Cash and Cash Equivalents


           30 June     30 June     31 December
           2007        2006        2006
           (unaudited) (unaudited) (audited)
Cash at    1,050,644   3,973,212   3,856,878
Bank
Overdrafts (48,322)    -           (65,676)
           1,002,322   3,973,212   3,791,202



7.  Share capital


                      30 June     30 June     31 December 31 December
                      2007        2007        2006        2006
                      (unaudited) (unaudited) (audited)   (audited)
Called up capital     Number      $           Number      $
Balance at  beginning 110,751,608 19,338,351  102,991,636 17,974,336
of
period
Issue of              -           -           6,500,000   1,134,055
shares
Bonus share           -           -           816,666     148,331
award
Conversion            317,689     63,246      443,306     81,629
of   employee   share
options
Balance at end of     111,069,297 19,401,597  110,751,608 19,338,351
period


On 11th July 2007, the
Company issued 29,069,768 new ordinary  shares pursuant to a  placing
at a price
of 43 pence per share,  which raised gross proceeds of  approximately
US$25
million (UK£12.5 million).





8. Transition to IFRS

The Company adopted the provisions
of IFRS in preparing its financial  statements for the year ended  31
December
2006.  The effect on the Group's
financial statements of the transition  to IFRS was explained in  the
Transition
Document published on 13 March 2007.  For
the purposes of comparison the  financial statements of the group  as
at 30 June
2006 have been restated in accordance with IFRS as follows;



                                     Effect of transition
                                     to
                                     IFRS                 IFRS
                         UK GAAP     (unaudited)          (unaudited)
Non Current Assets       25,690,074  1,033,719            26,723,793
Current Assets           9,852,498                        9,852,498
Current Liabilities      (3,326,254) -                    (3,326,254)
Non Current Liabilities  (658,967)   -                    (658,967)
Net Assets               31,557,351  1,033,719            32,591,070
Equity      Shareholders 31,557,351  1,033,719            32,591,070
Funds














The adjustment between UK GAAP and
IFRS represents  the  need  to  vary the  Group's  previous  UK  GAAP
compliant policy
on  translation  of  non  monetary  assets  denominated  in   foreign
currencies to
comply with IFRS.

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                            Tel: [phone]
Harrison
James                           Tel: [phone]
Black

Parkgreen Communications
Simon                           Tel: [phone]
Robinson
Shannon                         Tel: [phone]
Leano

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