Statement re lifting of IBAMA suspension

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

                    Palito update - IBAMA suspension lifted

The  Board of Serabi Mining plc,  the AIM-traded gold exploration and production
company,  is pleased to  announce that it  has received a  notification from the
Belem  office of  IBAMA (Instituto  Brasileiro do  Meio Ambiente  e dos Recursos
Naturais  Renovaveis), the Federal Environmental Agency, that effective from 21
September  2010, the suspension notice that had  been placed on Serabi Mineracao
SA  ("SM SA"), the Company's wholly-owned  subsidiary and operator of the Palito
Mine  has been  lifted on  the basis  that IBAMA  is satisfied  that SM SA is in
compliance with the terms of its Operating Licence.  IBAMA has acknowledged that
two of the conditions of the Operating Licence, specifically a Cadastro Ambiente
Rural (CAR) and a monitoring programme of flora and fauna have been fulfilled.

Mr  Michael Hodgson, Chief Executive of Serabi commented, "this has been a drawn
out  process which has  been frustrating for  management and shareholders but we
are  delighted that this  uncertainty for the  Company has now  been removed and
that  we can move forward with our plans at Palito.  At this stage IBAMA has not
yet made any formal decision regarding the fine that was originally assessed and
our  discussions are continuing, but we understand IBAMA is of the view that the
original  proposed  fine  was  unnecessarily  severe  relative  to  the  alleged
breaches."

"We  have been in regular dialogue with our preferred drilling contractor during
this  period and will now be seeking from them  a date when they will be able to
mobilise  to site  as they  have deployed  drilling equipment to other contracts
pending this decision.  We will inform the market of a commencement date for the
initial 7,500 metre Discovery Drilling programme as soon as the timetable can be
agreed with the contractor."

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



 Beaumont Cornish Limited
 Nominated Adviser and Broker

 Roland Cornish                    Tel: [phone]

 Michael Cornish                   Tel: [phone]



 Hybridan LLP
 Broker

 Claire Noyce                      Tel: [phone]



 Farm Street Communications
 Public Relations

 Simon Robinson                    07593 340107


Copies of this release are available from the company's website
www.serabimining.com.


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Source: Serabi Mining plc via Thomson Reuters ONE