2007 Production, 2008 Outlook and New Explorati...

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

                2007 Production and Outlook for 2008

    Discovery of new mineralisation close to the Palito gold mine
          provides new, near term production opportunities

Serabi Mining plc (AIM : SRB) announces that production for the
fourth quarter of 2007 was 7,069 ounces (gold equivalent), making
total production for the year of 33,963 ounces (gold equivalent).

The Company also advises that it has recently commenced underground
development of newly discovered mineralised structures located
immediately east of the Palito Main Zone at its Palito gold mine.  At
the same time, based on the success of an on-going drill campaign, it
is developing on-lode exploration drives as part of the next stage of
evaluation of these new structures.  Ore recovered from these drives
may be processed during 2008.


  * Drill results identify new high-grade mineralised structures
    close to the Palito gold mine
  * Mining development has commenced to access and develop those
    veins closest to the Palito Main Zone ("PMZ") underground
    operation
  * Follow-up on-lode development will soon be underway to evaluate
    these structures and additional zones further.
  * Improved understanding of local geological controls assisted by
    this discovery will be important in locating additional
    mineralisation across the Palito area.



2007 Production and Outlook for 2008

Production for the fourth quarter was 7,069 gold equivalent ounces,
resulting in total production for the year of 33,963 gold equivalent
ounces.  Operating difficulties previously highlighted resulted in
reduced head grades during 2007 and, as was anticipated, continued
during the fourth quarter.  This problem is now being resolved
through the introduction of mini-scoops for use in mining
development, which is then expected to result in improved development
grades.  Two of these machines are on order and are now scheduled to
be released by the manufacturer in mid-February, following a delay in
sourcing key components from a subcontractor.  This delay has had an
effect on the timing of the introduction of the revised mining
method.

Management currently forecasts that following the introduction of the
revised mining methods, production for 2008 will rise to between
40,000 and 45,000 gold equivalent ounces.  Based on the delineation
of known ore availability and current plant capacity, this level of
production represents the optimum balance for profitability and
achievement of sustainable production levels and cost optimisation.

Meanwhile, a number of other opportunities at Palito are progressing
that could impact positively on future production.  As the outcome
from these projects is not yet available their potential has not been
factored into the current production outlook. Serabi will release
further details of fourth quarter production and the prospects for
2008 and beyond in its quarterly review which will be released on
25th January 2008.


Discovery of new mineralisation

Recent drill results have confirmed the presence of three new
high-grade, narrow vein structures lying between 50 metres and 100
metres east of the PMZ.  These veins are located between the PMZ and
the Chico da Santa area (the easternmost vein system identified at
the Palito mine) and are currently the subject of a detailed
evaluation programme.


The three interpreted vein structures moving eastwards from the PMZ
named Cedro, Jatoba, and Munguba all contain significant high-grade
drill results which can be accessed from existing mine levels.  Based
on current results and interpretation, the most significant vein of
the three is Jatoba, with a confirmed strike length of 300 metres and
indications that this feature may extend a further 400 metres to the
north.  By comparison, the main G3 vein of the PMZ currently being
mined has a strike length of one kilometre.  The Jatoba vein also
remains open along strike to the south and down dip. The other two
veins, as currently defined by drilling, have strike lengths of
between 150 metres and 200 metres and also remain open along strike
and down dip.


Mining access to these structures commenced on the 1,178 level by way
of a 44 metre cross-cut from the existing PMZ-G3 mining area and will
intersect the Jatoba structure before the end of January. Similar
development is also planned on the 1,192, 1,163 and 1,144 levels.


Drilling from both surface and underground, combined with underground
mapping, indicates that there is an increased density of mineralised
structures at the 'contact zone' (also referred to as the central
fault) between the Palito and Rio Novo granites which cross the
central mining area.  The density of known mineralisation in the
vicinity of the contact zone has already indicated typical vein
spacing of some 30 metres.  The latest results suggest this trend may
extend across the full extent of the contact zone, although
individual vein strike lengths and depths will vary.  The contact
zone has been traced over 700 metes to date.


Understanding of this control as an important influence on the
deposition of mineralisation and vein density enables improved
identification and prioritization of targets adjacent to existing
mine infrastructure.  This in turn expedites the development of
access and provides greater mining flexibility, with the objective of
optimising production and grade of the existing operations.


Commenting on the announcement, Mike Hodgson, the Chief Executive of
Serabi said:

"Production in 2007 has been disappointing, however, I am confident
that following the implementation of a number of initiatives the
outlook for 2008 will show significant improvement in performance as
we focus on developing sustainable, profitable production and long
term growth.  In 2008 we will have the benefit of working at least
seven separate ore-bodies, a significant improvement on the three
that were available during last year.  The ability to open up new
areas for mining such as represented by these latest discoveries
further provides us with greater production flexibility and should
result in additional opportunities to optimise mining rates and
grades.

This exploration success also strengthens our belief that as we move
away from the Palito Main Zone we will continue to discover
additional, parallel mineralised vein structures that can form the
basis for future production plans.  Whilst these are likely to vary
in size, we expect that several of these structures will be of
sufficient quantity and quality to be economically viable.  For the
long term outlook, the substantial escalation in exploration activity
that Serabi is currently undertaking at Palito is expected to
position the Company well in order to realize fully the long term
production potential of the region".

Recent results that have returned over 1g/m from these zones include:




  Hole    East    North   Elevation   Dip/Az     From    To    Drill    Au    Cu   Zone
           (m)     (m)      (mRL)     (local)    (m)    (m)   Interval (g/t) (%)
PUD0246  10107.9 20332.63    1179.2 -15/57.3     53.56  54.06     0.50  3.09 0.11 Jatoba
                                                 55.27  57.38     2.11 11.41 1.55 Jatoba
                                                 91.00  91.62     0.62  2.20 1.10 Munguba
PUD0248  10107.1 20332.14    1178.8 -43.4/54.8   37.86  39.25     1.39 18.06 0.25 Cedro
                                                 45.31  48.20     2.89  2.35 0.06 Cedro
                                                 93.83  94.42     0.59 99.70 0.14 Jatoba
PUD0251  10107.5  20331.4    1179.4 -17.3/100.6  49.08  49.58     0.50  3.95 0.09 Jatoba
PUD0253  10107.3 20331.47    1178.8 -48.5/98.4   43.33  44.20     0.87  3.33 0.15 Cedro
                                                 58.52  59.52     1.00  1.45 0.19 Cedro
                                                 80.70  81.70     1.00  9.00 0.35 Jatoba
PUD0254  10107.3 20330.76    1179.3 -17.1/139.5  44.86  45.51     0.65  1.87 0.08 Cedro
                                                 69.50  70.05     0.55  1.19 0.03 Jatoba
PUD0256  10107.3 20330.95    1178.8 -34.9/136.3  50.90  51.94     1.04  1.12 0.04 Cedro
                                                 54.23  54.73     0.50 14.30 0.13 Cedro
                                                 79.64  80.43     0.79  0.64 0.66 Jatoba
PDD0335* 10215.3 20180.05    1264.9 -41.1/273   103.73  104.7     0.97  5.92 0.60 Jatoba
                                                120.42 120.94     0.52  1.16 0.05 Cedro
PDD0341* 10275.6 20140.17    1253.2 -47.8/271   188.62 189.96     1.34  3.63 0.61 Jatoba
Including                                       189.42 189.96     0.54   6.7 0.68
PDD0351  10301.1 20199.13    1256.2 -57.4/272   247.49 248.33     0.84  2.01 0.13 Cedro
PDD0359  10250.8 20200.00    1267.5 -44.6/272   143.49 144.44     0.95   8.7 6.50 Jatoba
                                                157.87 158.74     0.87  2.62 0.16 Cedro
PDD0366  10229.4 20241.07    1274.3 -50.8/272    72.25  72.94     0.69  4.22 0.03 Munguba
                                                127.86 129.42     1.56   9.6 0.05 Jatoba
PDD0372  10296.9 20280.45    1269.7 -50.5/273    165.8  166.3      0.5  4.14 0.14 Munguba
                                                227.74 228.58     0.84  1.34 0.18 Jatoba
RCCS021  10184.7 20219.82    1263.8 -60/270      38.00  39.00     1.00  2.32 0.01 Munguba
                 `                               79.00  81.00     2.00 10.27 0.33 Jatoba
Intercepts calculated using a 0.5g/m Au lower cut, containing maximum internal waste of
1.2 downhole metres
All samples reported are from half core NQ or BW sized drill core and analysed by SGS
Lakefield Geosol Laboratories of Brazil
(*) Previously reported



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

Please note that Serabi  Mining plc is  currently moving offices  and
has temporary telephone numbers in place:

Telephone:      [phone]
Fax:                 020 7936 9100



Serabi Mining plc

Graham Roberts       020 7936 9040
Chairman                   Mobile: [phone]

Mike Hodgson           020 7936 9040
CEO                          Mobile: [phone]

Clive Line                 020 7936 9040
Finance Director         Mobile: [phone]

Robyn Hodson          020 7936 9040
Investor Relations

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


Numis Securities Limited

John Harrison         Tel: [phone]
James Black           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.

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