Purchase of Option

Serabi Mining plc
14 October 2005

SERABI PURCHASES OPTION TO ACQUIRE POMBO GOLD PROJECT
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Serabi expands into Southern Tapajos Region with advanced exploration project
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Serabi announces that it has purchased an option to acquire 100% of the Pombo
Gold Project ('Pombo') from a subsidiary of US-based Gold Standard Inc. Pombo is
located 33 kilometres north east of the town of Terra Nova do Norte, in the
southern region of the Tapajos, in Brazil's Mato Grosso State. The property
consists of four concessions covering an area totaling approximately 10,800
hectares. Advanced exploration has already identified extensive high-grade,
gold-copper mineralisation but without drilling, which Serabi will now commence
at the earliest practical opportunity.


Overview of the Pombo Gold Project
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The main gold-copper mineralisation at Pombo is found within a major
northeast-southwest trending fracture/shear zone structure, containing several
oreshoots that vary from 2 to 8 metres in width. The structure is set within a
porphyritic-granite host rock and has been mapped in detail along a strike
length of 3.9 kilometres, over which mineralisation has so far been identified
along 700 metres of strike length. In addition, there is associated evidence of
extensive alteration and stockwork type mineralisaion. The oreshoots are made of
silicified granite, with up to 30% sulphide mineralisation. The main sulphide
minerals at Pombo are pyrite and chalcopyrite, with lesser quantities of bornite
and chalcocite.

Following its discovery in July 2002, a number of garimpeiros exploited the
near-surface, mainly oxidized section of the main orebody at Pombo using
rudimentary methods of mining and ore treatment. The garimpeiros reached the
limits of their technical abilities at approximately 14 metres depth before
abandoning the project but leaving exposed a sulphide-rich oreshoot. From July,
2002 to June, 2003 an extensive exploration and evaluation programme was carried
out at Pombo by Gold Standard that included detailed surface geological mapping,
geophysics, soil geochemical analysis for gold and copper, channel sampling of
the garimpeiro workings and trenching. In total, 32 garimpeiro workings were
mapped and sampled for analysis. This programme identified a number of drill
targets, which to-date have not been tested.


Results and planned work programme at Pombo
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Examples of the widespread gold mineralization include results from 38 rock chip
samples taken along the 700 metres of mineralized strike which averaged 6.84 g/t
gold. A trench also displayed one ore zone with a width surpassing 6 metres and
averaging 12.13 g/t gold. In addition, channel sampling from this early
programme returned favourable assay results that included:

2 metres                37.03 g/t
2 metres                22.35 g/t
2 metres                15.25 g/t
3 metres                15.10 g/t

During the company's own due diligence work at Pombo, Serabi sampled the
garimpeiro tailings which returned assay results of 29.2 g/t, 27.5 g/t, 23.2 g/t
and 14.1 g/t gold.

Overall, the trenching results, soil geochemistry and rock sampling appear to
correlate well with induced polarization ('IP') chargeability anomalies and also
with the actual locations of garimpeiro workings. Furthermore, geophysical
profiles indicate the ore shoot structures may expand at depth. Serabi plans to
build on the existing geological work done at Pombo and select drill targets
accordingly. Drilling is expected to begin by January 2006.


Commenting on the transaction, Graham Roberts, Chairman of Serabi said,
'As stated during the recent IPO process, part of the proceeds raised were to be
allocated to new project acquisitions. Pombo represents the first addition of an
advanced exploration project to Serabi's portfolio, in an area of the Tapajos
where the company has not previously been operating that also has distinct
operating and logistical benefits. Serabi's reputation within the Tapajos region
of being able to develop exploration projects into an operating mine like Palito
is beginning to pay dividends, as more and more opportunities such as Pombo are
being presented to the company for consideration.

The similarities between Pombo and our operating Palito Gold Mine are
encouraging and point to the opportunity for Serabi to bring its expertise to
bear on this new project.'


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

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

Chris Sattler Tel: [phone]
Manager, Corporate Development Mobile: [phone]

email: [e-mail]




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