Preliminary un-audited results for the year end...

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

Serabi Mining plc (AIM: SRB), the gold production and exploration Company with
operations in Brazil, today announces preliminary un-audited results for the year
ended 31 December 2007.

Highlights:

*           Strong balance sheet with cash holdings of $18.5 million
  at the end of the year
*           Profit before tax and exploration write downs of
  US$633,273 (2006 loss : US$2.2 million)
*           Average operating expenses in H2 reduced by 2.6% in USD
  terms (16.6% in Brazilian Real terms) against Q4 2006.
*           Introduction of key mining equipment is now underway and
  set to underpin significant production improvements during 2008.
*           Initial results from geophysical survey indicate new
  areas of potential mineralisation and drill targets are being
  assessed.

  Commenting on the results, Serabi's Chairman Graham Roberts, noted
  that 2007 had been a challenging year for Serabi despite favourable
  gold and copper prices, largely because of long lead times involved
  in bringing new machinery to the site.  With this equipment now
  arriving he was confident that the Company was in a good position
  to deliver on its objectives for 2008.

  He went on to say that  "production issues have been well reported
  but despite manufacturing and delivery delays, the first of several
  deliveries of the new mining fleet (two mini-scoops and one
  mini-jumbo drill) have arrived and are now on site.  The remaining
  machinery will arrive during the current quarter.  We firmly
  believe that this equipment will play a significant role in
  improving production results this year, principally through the
  reduction of mining dilution that hampered our 2007 production.  It
  is a testament to the quality of the ore-body that notwithstanding
  the excessive dilution, we were still able to attain a head grade
  of 5.8 g/t through 2007. We also anticipate that following last
  year's exploration success, up to 7 ore-bodies should be in
  production by the end of this year compared with 3 last year,
  providing much greater flexibility.  Meanwhile the plant continues
  to perform well with recovery maintained above 90%, despite a 47%
  year on year increase in throughput.  Work has already commenced to
  improve throughput further during the second half of 2008.

  We have continued to concentrate on reducing operating costs.
  Gross average monthly production costs in Brazilian Reais were down
  16.6% in the second half of 2007, compared with the fourth quarter
  of 2006 and 17.3% down against the first half of 2007.  The
  continued strengthening of the Brazilian Real, however, reduces
  this effect when translated in US dollar terms to 2.6% and 8.1%
  respectively.

  Despite the lower levels of production in the second half of the
  year, local unit cash costs increased only marginally from BrR$906
  per gold equivalent ounce to BrR$947, a 4.5% increase compared with
  an 18.6% reduction in production ounces.  A weakening US dollar and
  the lower H2 production resulted in dollar cash costs increasing by
  16.1% for the second half of the year resulting in an overall
  US$474 per gold equivalent ounce for 2007.  The US dollar to
  Brazilian Real exchange rate weakened from 2.14 to 1.77 over the
  twelve months.  In the absence of further dollar to reais weakness,
  we remain confident that with improved production levels and a
  continued effort to reduce local operating costs, our target of sub
  US$400 per gold equivalent ounce remains achievable.

  The Company has a strong financial base, with over $18 million in
  cash at the end of the year and the mining operations generating
  additional cash flow to help finance the future development of
  Serabi.  During 2007 we spent $6.0 million on exploration, of which
  $5.3 million was focused on developing the resources at Palito.
  Our exploration programme continues to deliver good results and
  initial interpretation of the recently completed helicopter-borne,
  geophysical electromagnetic ("EM") survey is in line with our
  expectations, confirming the wider potential of the Palito mineral
  district.  A more detailed assessment of the results is ongoing,
  which is expected to lead to the identification of important new
  drill targets.  A further $2 million was committed during 2007 to
  plant and equipment principally for the mining operations.

  The Board has reviewed its exploration portfolio and decided that
  it should not commit further resources to the Pombo project in Mato
  Grosso, which was originally acquired in 2005.  Accordingly, the
  Company has relinquished its agreement on this property, resulting
  in a write down of past exploration costs of $628,000."

  Mr Roberts concluded by saying, "I look forward to a good year for
  Serabi during 2008.  We had expected the first elements of the new
  mining fleet to be operational during the latter part of quarter
  one.  The delivery delays have impacted plans but we are
  nevertheless optimistic that we will recover this position during
  the remainder of the year, following the introduction of
  specialized new equipment that is now underway, as well as
  extensive development of new ore-bodies.  The Company has a strong
  balance sheet, positive cash flow, attractive projects and a clear
  strategy to increase the value of its assets."

  Enquiries

  Serabi Mining plc:
  Graham Roberts       Tel: [phone]
  Chairman             Mobile: [phone]

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

  Clive Line           Tel: [phone]
  Finance Director     Mobile: [phone]

  Robyn Hodson         Tel: [phone]
  Investor Relations

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

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

  Farm Street Communications
  Simon Robinson       Tel: [phone]

  Consolidated Income Statement
  for the year ended 31 December 2007




                                                  For the     For the
                                               year ended  year ended
                                              31 December 31 December
  (expressed in US$)                                 2007        2006
  Revenue                                      25,099,118   7,256,136
  Operating expenses                         (19,708,212) (4,846,122)
  Profit from operations                        5,390,906   2,410,014
  Administration expenses                     (3,446,849) (2,860,522)
  Share-based payments                          (177,913)   (331,338)
  Write-off of past exploration costs           (628,066)           -
  Depreciation of plant and equipment         (1,530,243) (1,426,004)
  Depreciation of mine asset                    (795,878)   (232,097)
  Loss on ordinary activities before          (1,188,043) (2,439,947)
  interest and other income
  Foreign exchange gain                         1,725,397     449,857
  Interest payable                            (1,119,116)   (339,328)
  Interest receivable                             586,969     120,649
  Profit / (loss) on ordinary activities            5,207 (2,208,769)
  before taxation
  Taxation                                      (128,086)           -
  Loss on ordinary activities after taxation    (122,879) (2,208,769)
  Loss per ordinary share (basic and              (0.10)c     (2.04c)
  diluted)



  Consolidated Balance Sheet
  as at 31 December 2007



  (expressed in US$)                                2007        2006
  Non-current assets
  Goodwill                                     1,752,516   1,752,516
  Development and deferred exploration costs  13,254,658   6,454,074
  Property, plant and equipment               25,831,006  22,203,706
  Total non-current assets                    40,838,180  30,410,296
  Current assets
  Inventories                                  3,341,954   2,441,783
  Trade and other receivables                  1,903,452   1,128,830
  Prepayments and accrued income               2,118,158   1,521,347
  Cash at bank and in hand                    18,629,402   3,856,878
  Total current assets                        25,992,966   8,948,838
  Current liabilities
  Trade and other payables                     4,163,638   4,053,744
  Accruals                                        87,111     176,252
  Interest bearing liabilities                   839,986     582,491
  Total current liabilities                    5,090,735   4,812,487
  Net current assets                          20,902,231   4,136,351
  Total assets less current liabilities       61,740,411  34,546,647
  Non-current liabilities
  Trade and other payables                        39,896     180,314
  Provisions                                     920,135     799,749
  Interest bearing liabilities                   376,132     368,778
  Total non-current liabilities                1,336,163   1,348,841
  Net assets                                  60,404,248  33,197,806
  Equity
  Called up share capital                     25,285,679  19,338,351
  Share premium reserve                       33,402,649  15,351,674
  Option reserve                               2,923,543   2,818,722
  Translation reserve                          3,499,865     382,502
  Profit and loss account                    (4,707,488) (4,693,443)
  Equity shareholders' funds                  60,404,248  33,197,806



  Consolidated Statement of Changes in Shareholder's Equity
  for the year ended 31 December 2007

(expressed           Share       Share     Share Translation  Profit and
in US$)                                   option
                   capital     Premium   reserve     reserve        loss       Total
                                                                 account      equity
Equity
shareholders'
funds
at 31 December  17,974,336  11,818,128 2,690,052 (1,273,264) (2,602,080)  28,607,172
2005
Foreign currency         -           -         -   1,655,766           -   1,655,766
adjustments
Loss for year            -           -         -           - (2,208,769) (2,208,769)
Total recognised         -           -         -   1,655,766 (2,208,769)   (553,003)
loss for the
period
Share option             -           -   246,076           -           -     246,076
expense
Issue of         1,282,386   3,698,827                     -           -   4,981,213
ordinary shares
Conversion of       81,629      88,741 (117,406)           -     117,406     170,370
options
Share issue              -   (254,022)         -           -           -   (254,022)
expenses
Equity
shareholders'
funds
at 31 December  19,338,351  15,351,674 2,818,722     382,502 (4,693,443)  33,197,806
2006
Foreign currency         -           -         -   3,117,363           -   3,117,363
adjustments
Loss for year            -           -         -           -   (122,879)   (122,879)
Total                    -           -         -   3,117,363   (122,879)   2,994,484
recognised
loss for the
year
Share option             -           -   213,655           -           -     213,655
expense
Issue of         5,884,593  19,419,158         -           -           -  25,303,751
ordinary
shares
Conversion          62,735      31,368 (108,834)           -     108,834      94,103
of options
Share issue              - (1,399,551)         -           -           - (1,399,551)
expenses
Equity
shareholders'
funds
at 31           25,285,679  33,402,649 2,923,543   3,499,865 (4,707,488)  60,404,248
December
2007



  Consolidated Cash flow Statement


                                                  For the     For the
                                               year ended  year ended
                                              31 December 31 December
  (expressed in US$)                                 2007        2006
  Cash outflows from operating
  activities
  Operating loss                              (1,188,043) (2,439,947)
  Depreciation - plant, equipment and mining    2,326,121   1,658,101
  properties
  Option costs                                    177,913     142,443
  Share-based payments                                  -     188,895
  Write-off of past exploration                   628,066           -
  costs
  Interest paid                               (1,119,116)   (339,328)
  Foreign exchange                              (968,729)   (281,231)
  Changes in working capital
         (Increase) in                          (348,915)   (443,136)
         inventories
         (Increase) / decrease in receivables,  (691,942)     399,765
         prepayments and accrued income
         (Decrease) / increase in payables,     (795,730)   1,314,609
         accruals and provisions
  Net cash flow from operations               (1,980,375)     200,171
  Investing activities
  Proceeds of sale of fixed                             -     114,681
  assets
  Purchase of tangible fixed                  (1,155,963) (2,826,077)
  assets
  Exploration and development expenditure     (6,017,472)   (373,568)
  (1)
  Interest received                               586,969     120,649
  Net cash outflow on investing               (6,586,466) (2,964,315)
  activities
  Financing activities
  Issue of ordinary share                      25,303,751   4,536,220
  capital
  Capital element of finance lease              (702,689)   (327,406)
  payments
  Conversion of options                            94,103     170,370
  Payment of share issue costs                (1,399,551)   (254,022)
  Net cash inflow from financing               23,295,614   4,125,162
  activities
  Net increase in cash and cash                14,728,773   1,361,018
  equivalents
  Cash and cash equivalents at                  3,791,202   2,152,452
  beginning of period
  Exchange difference on cash                       9,820     277,732
  Cash and cash equivalents at                 18,529,795   3,791,202
  end
  of period

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


 Notes


  1.     General Information
  The financial  information set  out above  for the  years ended  31
  December 2007 and  31 December 2006  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 2006 has been delivered to the Registrar of Companies and those
  for 2007  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 2007. This announcement has been agreed with the  auditors
  and was  approved  by the  Board  on 16  April  2008.   Whilst  the
  auditors have not yet reported on the financial statements for  the
  year ended 31 December 2007, 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 2006 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 IFRS as adopted for use in  the
  European Union.

  3.  Earnings per share
  The calculation of the basic loss per share of 0.10 cents per share
  is based on the loss attributable to ordinary shareholders of
  $122,879 and on the weighted average number of ordinary shares of
  124,716,130 in issue during the period.

  4.  Inventories

                               31 December 2007 31 December
                                              $        2006
                                                          $
  Bullion and work in progress          948,437     918,269
  Consumables                         2,393,517   1,523,514
                                      3,341,954   2,441,783


  5.   Development and Deferred Exploration costs

                                    31 December 2007 31 December 2006
                                                   $                $
  Cost
  Opening balance                          6,454,074       17,420,146
  Exploration and development              6,017,472          733,298
  expenditure (1)
  Write-off of past exploration            (628,066)                -
  costs
  Exchange                                 1,411,178        1,423,809
  Transfer to tangible assets (mine                -     (13,123,179)
  asset)
  Total as at 31 December 2007            13,254,658        6,454,074


  (1)     Exploration and development expenditure for 2006 is stated
  net of pre-operating income of US$2,839,018

  The value of these investments  is dependent on the development  of
  mineral deposits.


  6.       Property, plant and equipment

                         Land and               Plant and
                        buildings               equipment
                        - at cost  Mine Asset   - at cost       Total
                                $           $           $           $
  Cost
  Balance at 31
  December 2006         2,201,439  13,623,179   8,860,453  24,685,071
  Additions                     -     497,425   1,516,232   2,013,657
  Exchange                452,175   2,341,404   1,835,070   4,628,649
  Disposals                     -           -     (2,131)     (2,131)
  At 31 December 2007   2,653,614  16,462,008  12,209,624  31,325,246
  Depreciation
  Balance at 31
  December 2006         (532,884)   (232,097) (1,716,384) (2,481,365)
  Charge for period     (465,745)   (795,878) (1,064,498) (2,326,121)
  Exchange              (156,049)   (106,118)   (425,688)   (687,855)
  Eliminated on sale
  of asset                                          1,101       1,101
  At 31 December 2007 (1,154,678) (1,134,093) (3,205,469) (5,494,240)
  Net book value at
  31 December 2007      1,498,936  15,327,915   9,004,155  25,831,006
  Net book value at
  31 December 2006      1,668,555  13,391,082   7,144,069  22,203,706



  7.   Cash and cash equivalents

                           31 December 2007 31 December 2006
                                          $                $
  Cash at bank and in hand       18,629,402        3,856,878
  Bank overdrafts                  (99,607)         (65,676)
  Net cash holdings              18,529,795        3,791,202



  Annual Report
  The Annual Report will be sent to shareholders on or around 9th May
  2008. Additional copies will  be available to  the public, free  of
  charge, from the Company's  offices at 2nd floor,  30 - 32  Ludgate
  Hill, London, EC4M 7DR

  

---END OF MESSAGE---




http://hugin.info/137617/R/1210104/250334.pdf