Final Results

SERABI MINING plc ("Serabi" or "the Company")
 Preliminary un-audited Results for the year ended 31 December 2006

Serabi Mining plc (AIM: SRB), the gold mining and exploration Company with its operations in Brazil, today announces preliminary un-audited results for the year ended 31 December 2006.

Highlights

*   Commercial production at Palito gold mine announced from 1
October 2006
*  2006 production of 39,197 ounces gold equivalent represents a 127%
improvement over 2005
*  Cash operating costs achieved of US$252 per ounce of gold
equivalent production for the final quarter of 2006
*   Serabi reports a loss of US$2.2 million for 2006, with underlying
profit from operations from the Palito mine of US$2.4 million for the
fourth quarter
*   Palito West to be first satellite ore source developed for Palito
*   Improved geological and exploration facilities should allow
considerable progress in exploration in 2007; recent results from the
Jardim do Ouro district already encouraging


Chairman's Statement
Whilst 2005 was a period of discovery for the Company, 2006 has  been
one of consolidation. Substantial strides  were made during the  year
culminating with  the achievement  of  commercial production  at  the
Palito gold mine from 1  October, in addition to numerous  underlying
improvements to operating, support  and exploration facilities. As  a
result production  increased throughout  the year,  reaching  another
record in the fourth quarter of 11,687 ounces of gold equivalent  and
resulting in  a  127% year-on-year  increase  to 39,197  ounces  gold
equivalent.  Furthermore,  the  average  cash  cost  of  US$252   per
equivalent ounce (US$328 per  ounce of gold)  over that last  quarter
reflects very favourably on Serabi's progress.

As a result  of these  activities, Serabi  reports a  loss of  US$2.2
million for 2006 but with underlying profit from operations from  the
Palito mine of US$2.4 million for the fourth quarter since  declaring
commercial production. In considering these results for the year  two
important points need to be borne in mind. Firstly, that the  revenue
and  costs  reported  are  only  for  the  three  months  since   the
declaration of commercial production,  whilst other expenses are  for
the full  twelve  month period.  We  would therefore  expect  to  see
substantial improvement in 2008 over the 2007 figures. Secondly,  the
comparative 2005 period was  only for a  three month period.  Overall
these results  and  other operational  and  exploration  developments
position the  Company  well for  2007,  with targeted  production  of
approximately 50,000 ounces gold equivalent  and cash costs of  below
US$250 per ounce.

The Company  continued  to  make substantial  investments  at  Palito
during the  year, not  only in  terms of  plant, equipment  and  mine
infrastructure  but  also  within  the  mine  itself.  The  escalated
investment in mine development  will eventually provide more  working
areas, thus enabling an  improved mix between  ore produced from  the
stopes and development. The  switch to mechanised underground  mining
has required  us  to spend  much  of the  last  nine months  of  2006
undertaking such  development  in  preparation  for  long-hole  stope
production. This will continue into 2007 and will initially impact on
mining grades, before  the full  benefit of  production from  stoping
becomes apparent later in the year, and through 2008.

Development of our existing portfolio  within the Tapajos remains  at
the forefront  of our  plans for  growing and  developing Serabi.  As
outlined in our September 2005 and March 2006 press releases, we  are
encouraged by  the  early  progress  of  our  exploration  programmes
undertaken throughout the year. The Company has a large portfolio  of
projects where the level  of existing data is  often limited. It  has
therefore sometimes been necessary to focus initially on  preliminary
assessment programmes to improve our understanding of the geology and
potential opportunities, in  order to provide  information that  will
allow us to concentrate future efforts on the most promising  targets
identified. With much improved geological and exploration  facilities
established last year, we expect  considerable progress in this  area
during 2007.  In this regard, we recently reported good results  from
a number  of  prospects in  the  Jardim do  Ouro  district,  situated
immediately adjacent to  Palito.   This area will  initially form  an
important focus for  evaluation during  the early half  of the  year,
with advanced exploration and drilling planned at the Ruari's  Ridge,
Chico do Santo and Palito Main Zone south projects.  The objective of
this work is to expand the Palito resource and so extend the life  of
the operation.

Notwithstanding, we also seek to expand our project portfolio and are
looking at  other opportunities  both  in the  Tapajos and  in  other
regions of Brazil. Management recognises that the long-term future of
the Company  is in  part dependent  on expanding  the resource  base,
accompanied by continuing production growth.  While the Tapajos is  a
highly prospective area  where the Company  has a strong  competitive
advantage, given our growing reputation and achievements to date,  we
believe we should also  now look at opportunities  in other parts  of
Brazil. The  country  has a  diverse  and attractive  geology,  which
remains relatively unexplored with the potential for significant size
deposits.

Further expansion  of  the Company  is,  we believe,  fundamental  to
obtaining more widespread recognition in the market of the  Company's
already considerable achievements. Serabi remains  one of only a  few
producers  in  the  London  AIM  mining  sector  and  despite   major
operational achievements and a  robust gold price,  up 50% since  the
Company listed  in  2005, there  is  limited evidence  of  an  upward
re-rating of  the  shares  to  reflect  this.  We  continue  to  make
considerable efforts  to raise  the profile  of the  Company but  are
conscious that until we  can further increase the  asset base we  may
continue to  be 'below  the  radar' of  some investors  and  industry
commentators.

Building on  the strong  foundation now  established in  Brazil,  our
strategy for growing the  Company centres on  optimising a number  of
key criteria:
*    unexplored areas with excellent geological potential;
*    strong land title;
*    political and economic stability;
*       projects with  potential  of  more than  500,000  ounces  and
operating costs of US$250 or less; and
*    geographical focus.

The original  decision to  enter Brazil  in 1999  was driven  by  the
country's ability to meet all of the above criteria and this  remains
true today. These advantages are being increasingly recognised within
the mining industry as new opportunities are sought internationally.

Brazil is  often  grouped  with  other  "developing"  countries  when
looking at such potential. These include South American peers such as
Argentina, Bolivia, Chile  and Peru,  the African  nations of  Ghana,
Tanzania, and the DRC, the Eastern European countries such as  Russia
and  Kazakhstan  and  in  the   Far  East  Indonesia,  PNG  and   the
Philippines, amongst  others. Recent  studies*  show that,  with  the
exception of  Chile,  Brazil  is significantly  ahead  of  all  these
countries  when  judged  by  its  mineral  potential,  combined  with
favourable regulatory  and land  use  policies. This  reinforces  the
Company's  strategy  in  Brazil,  which  we  believe  with  its  well
established mining industry  and security of  title, provides one  of
the best balances of risk and  reward in today's world. Against  this
background, combined  with  the improved  operating  and  exploration
foundations now established, Serabi is exceptionally well  positioned
to move  forwards on  all fronts  in 2007  and achieve  it's goal  of
becoming a mid-tier  producer with growing  exploration potential  by
the end of the decade.

For Serabi  2006 marked  the end  of the  beginning, with  profitable
production established, new operational developments taking place and
exploration set to expand.

Acknowledgements
Good mining projects are nothing without good people. In this respect
I would first like to thank all of Serabi's staff for their dedicated
efforts and contributions towards  the considerable progress made  by
the Company last year. I would  also like to welcome Mike Hodgson  to
the Board of the  Company. His experience  will strengthen the  Board
and the executive management and  provide key day-to-day guidance  in
order to optimise and develop our operations further. Finally, thanks
to our  shareholders for  their continuing  interest and  support  in
Serabi. I look forward  to reporting the  continuing success of  your
Company at the end of 2007.

Graham Roberts
Chairman
10 April 2007

* The Fraser Institute Annual Survey of Mining Companies, Vancouver,
Canada


Consolidated Income Statement
for the year ended 31 December 2006


(expressed in US$)                             Group
                                                              For the
                                                          period from
                                           For the  1 October 2005 to
                                        year ended   31 December 2005
                                  31 December 2006         (restated)
Revenue (1)                              7,256,136                  -
Operating expenses (1)                 (4,846,122)                  -
Profit from operations                   2,410,014                  -
Administration expenses                (2,860,522)          (621,452)
Share based payments                     (331,338)          (422,298)
Depreciation of plant and              (1,426,004)          (339,522)
equipment
Depreciation of Mine Asset               (232,097)                  -
Loss on ordinary activities
before interest and other
income                                 (2,439,947)        (1,383,272)
Foreign exchange gain/(loss)               449,857           (35,703)
Interest payable                         (339,328)           (69,929)
Interest receivable                        120,649             21,044
Loss on ordinary activities            (2,208,769)        (1,467,860)
before taxation
Taxation                                         -                  -
Loss on ordinary activities            (2,208,769)        (1,467,860)
after taxation
Loss per ordinary share
(basic and diluted - note 3)               (2.04c)            (1.42c)

(1) Revenue and operating expenses are only for the 3 month period
commencing 1 October 2006 being the date from which mining operations
have been in commercial production.


Consolidated Balance Sheet
as at 31 December 2006

(expressed in US$)                                       Group
                                                                 2005

                                                  2006     (restated)
Non current assets
Goodwill                                     1,752,516      1,752,516
Development and deferred exploration costs   6,454,074     17,420,146
(note 5)
Property, plant and equipment (note 6)      22,203,706      5,763,233
Total non current assets                    30,410,296     24,935,895
Current assets
Inventories (note 4)                         2,441,783      1,825,479
Trade and other receivables                  1,128,830      1,738,474
Prepayments and accrued income               1,521,347      1,080,077
Cash at bank and in hand                     3,856,878      2,152,452
Total current assets                         8,948,838      6,796,482
Current liabilities
Trade and other payables                     4,053,744      2,320,105
Accruals                                       176,252        131,432
Interest bearing liabilities                   582,491              -
Total current liabilities                    4,812,487      2,451,537
Net current assets                           4,136,351      4,344,945
Total assets less current liabilities       34,546,647     29,280,840
Non current liabilities
Trade and other payables                       180,314        244,724
Provisions for liabilities and charges         799,749        428,944
Interest bearing liabilities                   368,778              -
Total non current liabilities                1,348,841        673,668
Net assets                                  33,197,806     28,607,172
Equity
Called up share capital                     19,338,351     17,974,336
Share premium reserve                       15,351,674     11,818,128
Option reserve                               2,818,722      2,690,052
Translation reserve                            382,502    (1,273,264)
Profit and loss account                    (4,693,443)    (2,602,080)
Equity shareholders' funds                  33,197,806     28,607,172

Consolidated Statement of Changes in Shareholders Equity
for the year ended 31 December 2006

(expressed in US$)

                                       Share              Profit and
                  Share      Share    option Translation        loss       Total
                capital    premium   reserve     reserve     account      equity
Equity
shareholders
funds at 1   17,974,336 11,818,128 1,983,521           - (1,134,220)  30,641,765
October 2005
(restated)
Foreign
currency              -          -         - (1,273,264)           - (1,273,264)
adjustments
Loss for              -          -         -           - (1,467,860) (1,467,860)
period
Total
recognised            -          -         - (1,273,264) (1,467,860) (2,741,124)
loss for the
period
Share option          -          -   706,531           -           -     706,531
expense
Equity
shareholders
funds at 31  17,974,336 11,818,128 2,690,052 (1,273,264) (2,602,080)  28,607,172
December
2005
(restated)
Foreign
currency              -          -         -   1,655,766           -   1,655,766
adjustments
Loss for              -          -         -           - (2,208,769) (2,208,769)
period
Total
recognised            -          -         -   1,655,766 (2,208,769)   (553,003)
loss for the
period
Share option          -          -   246,076           -           -     246,076
expense
Issue of
ordinary      1,282,386  3,698,827         -           -           -   4,981,213
shares
Conversion       81,629     88,741 (117,406)           -     117,406     170,370
of options
Share issue           -  (254,022)         -           -           -   (254,022)
expenses
Equity
shareholders
funds at 31  19,338,351 15,351,674 2,818,722     382,502 (4,693,443)  33,197,806
December
2006



Consolidated Cash flow Statement

(expressed in US$)                                  Group
                                                              For the
                                             For the      period from
                                          year ended                1
                                         31 December  October 2005 to
                                                2006  31December 2005
Operating loss                           (2,439,947)      (1,383,272)
Depreciation - plant and equipment and     1,658,101          339,522
mine asset
Option costs                                 142,443          422,298
Share based payments                         188,895                -
Interest paid                              (339,328)         (69,929)
Foreign exchange                           (281,231)         (55,679)
Changes in working capital
  (Increase) in inventories                (443,136)      (1,003,810)
  Decrease/(increase) in
receivables,                                 399,765      (1,754,743)
  prepayments and accrued income
  Increase in payables,                    1,314,609          709,714
  accruals and provisions
Net cash flow from operations                200,171      (2,795,899)
Investing activities
Purchase of tangible fixed assets        (2,826,077)      (1,627,113)
Exploration and development expenditure    (373,568)        (967,746)
(1)
Sale of tangible fixed assets                114,681                -
Interest received                            120,649           21,044
Net cash outflow on investing activities (2,964,315)      (2,573,815)
Financing activities
Issue of ordinary share capital            4,536,220                -
Conversion of options                        170,370                -
Payment of share issue costs               (254,022)                -
Capital element of finance lease           (327,406)                -
payments
Net cash inflow from investing             4,125,162                -
activities

Increase/(decrease) in cash at bank and    1,361,018      (5,369,714)
in hand
Opening cash holdings                      2,152,452        7,557,138
Exchange                                     277,732         (34,972)
Closing cash holdings (note 7)             3,791,202        2,152,452

(1) Exploration and development expenditure is stated net of
pre-operating income of US$2,839,018

Notes

1.     General Information
The financial  information  set  out  above for  the  year  ended  31
December 2006 and the 3 month period ended 31 December 2005 does  not
constitute statutory  accounts  as  defined in  Section  240  of  the
Companies Act 1985, but  is derived from  those accounts. Whilst  the
financial information included in  this preliminary announcement  has
been compiled in  accordance with  International Financial  Reporting
Standards (IFRS) this announcement itself does not contain sufficient
financial information to comply  with IFRS. A  copy of the  statutory
accounts for 2005 has  been delivered to  the Registrar of  Companies
and those  for 2006  will  be issued  to  shareholders prior  to  the
Company's Annual General Meeting. The Company expects to publish full
financial statements that comply with  IFRS in its Annual Report  and
Accounts 2006. This  announcement has been  agreed with the  auditors
and was approved by the Board on 10 April 2007.  Whilst the  auditors
have not yet reported on the financial statements for the year  ended
31 December 2006, they anticipate issuing an unqualified report which
will not contain statements under the Companies Act 1985, s237 (2) or
(3). The auditors issued an unqualified report in respect of the 2005
Financial Statements.

2.     Basis of preparation
The financial information  has been prepared  in accordance with  the
recognition  and  measurement  criteria  of  International  Financial
Reporting Standards  (IFRS) and  with IFRSs  adopted for  use in  the
European Union.

3.   Earnings per share
The calculation of the basic loss per share of 2.04 cents per share
is based on the loss attributable to ordinary shareholders of
$2,208,769 and on the weighted average number of ordinary shares of
108,412,130 in issue during the period.

4.   Inventories

                             31 December        31 December
                                    2006               2005
                                       $                  $
Bullion and work in progress     918,269            424,950
Consumables                    1,523,514          1,400,529
                               2,441,783          1,825,479


5.     Development and Deferred Exploration costs

                               31 December 2006      31 December 2005
                                              $                     $
Cost
Opening balance (restated)           17,420,146            17,017,111
Exploration and development             733,298             1,221,970
expenditure (1)
Exchange                              1,423,809             (818,935)
Transfer to tangible assets        (13,123,179)                     -
(mine asset)
Total as at 31 December 2006          6,454,074            17,420,146


(1) Exploration and development expenditure is stated net of
pre-operating income of US$2,839,018

6.       Property, plant and equipment

                                                  Plant
                                                    and

                        Land and              equipment
                       buildings                      -
                       - at cost Mine Asset     at cost         Total
                               $          $           $             $
Cost
Balance at 31 December
2005 (restated)        1,237,818          -   5,293,766     6,531,584
Additions                829,625    500,000   3,209,451     4,539,076
Transfer from
intangible assets              - 13,123,179           -    13,123,179
Exchange                 133,996          -     508,616       642,612
Disposals                      -          -   (151,380)     (151,380)
At 31 December 2006
                       2,201,439 13,623,179   8,860,453    24,685,071
Depreciation
Balance at 31 December
2005 (restated)         (93,446)          -   (674,905)     (768,351)
Charge for period
                       (416,956)  (232,097) (1,009,048)   (1,658,101)
Exchange                (22,482)          -    (69,129)      (91,611)
Eliminated on sale of
asset                          -          -      36,698        36,698
At 31 December 2006    (532,884)  (232,097) (1,716,384)   (2,481,365)
Net book value at 31
December 2006          1,668,555 13,391,082   7,144,069    22,203,706
Net book value at 31
December 2005
(restated)             1,144,372          -   4,618,861     5,763,233



7.     Cash Holdings

                         31 December 2006          31 December 2005
                                        $                         $
Cash at bank and in hand        3,856,878                 2,152,452
Bank overdrafts                  (65,676)                         -
Net cash holdings               3,791,202                 2,152,452



Annual Report
The Annual Report  will be sent  to shareholders on  or around 2  May
2007. Additional  copies will  be available  to the  public, free  of
charge, from the Company's offices at Cleary Court, 21-23 St Swithins
Lane, London, EC4N 8AD.

Enquiries
Serabi                                                         Mining
plc                                                              Numis
Securities Limited
Graham Roberts           Tel: [phone]                      John
Harrison              Tel: [phone]
Chairman                                               Mobile:  07768
902475                James Black                 Tel: [phone]

Clive  Line                                          Tel:  020   7220
9553                         Parkgreen Communications
Finance   Director                                    Mobile:   07710
151692                    Simon Robinson              Tel:  [phone]
7480

E-mail:
[e-mail]       Clare Irvine                      Tel:
020 7851 7480
Website:
www.serabimining.com               [e-mail]

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