2nd Quarter Investor Update

For immediate
release
                            30 July 2009

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


              Release of Investor Update for Quarter 2

Serabi announces  that it  has today  issued its  Investor Update  in
respect of the second quarter of 2009 ending 30 June 2009.

Highlights and operating results reported for the quarter were:


  * Production of 1,802 ounces of gold for the quarter from surface
    oxide mining
  * Continued positive operational cash flow for the year to date
  * Potential for the identification and continued mining of oxide
    gold deposits at Palito - with approval for a US$250,000 surface
    oxide drilling programme
  * Continued reduction in overheads
  * Geophysical targets at Palito provide principal focus for future
    exploration to increase resources




   Palito - Operating Results (1)
                           2009          2008
                     Q1     Q2    YTD    YTD
Milled          t  17,580 19,151 36,731 66,506
(per day)          (197)  (210)  (203)  (365)
Head Grade (2) g/t  3.78   3.09   3.42   4.82
Recovery        %   92.3   94.7   93.6   89.0
Gold (3)       oz  1,973  1,802  3,775  10,738


(1)  Provisional  (2) Ore feed to the process plant  (3)  For 2008
gold production Includes copper and silver credits

The following is  the text  of the Investor  Update.  A  copy of  the
Investor Update can be  accessed by following the  link in this  news
release and is also available from the company's offices or from  the
company's website  - www.serabimining.com.

MANAGEMENT REVIEW

The second quarter of 2009 ("Q2"), saw continued positive cash-flow
for the Palito Operation.  Gold production from surface oxide ore
sources continued much as reported in the first quarter of 2009, with
1,802 ounces produced during Q2.  For the year to date this means
that production has met the costs of the Brazilian operation, a
consequence of the previous dramatic reduction in overheads, a
continued strong US dollar gold price and a favourable Brazilian Real
to US dollar exchange rate over the period.

Considering the continued, albeit very modest success of surface
mining and gold production at Palito, the Directors have approved a
US $250,000 surface oxide drilling programme with the objective of
testing a series of anomalies, that it is hoped can be readily turned
into mineable oxide deposits.  Initial results from this programme
should be available by the Q3 2009 update.

The surface gold production has been a welcome success for the
company, and whilst we have had to take tough decisions in the
process of downsizing the company and its immediate aspirations, the
resultant cash-flow has avoided the need for distressed asset sales
and placed the Company on a better footing to consider a wider range
of options for re-building value.   That said, it is unlikely the
oxide ore sources on their own will be sufficient for us to grow the
business and pursue the direction we wish without additional funding
and we continue therefore to pursue all strategic options for raising
new funds for the Company and/or the projects.  These options include
the sale or joint venture in whole or part of its mining and
exploration assets.  The Directors are also continuing to pursue
opportunities that might result in an injection of new capital either
into the Company or directly into its Brazilian operating
subsidiary.  In this regard we are working with a selection of North
American and UK based groups to identify parties both from within the
industry or as strategic partners that are interested in investing in
the Company, its projects and its strategy.

As reported in Q1 2009 we pursue a strategy going forward that
de-risks the business and are firmly of the view that before
underground operations at Palito are fully resumed, the following
should be in place:
1.       A  return to  selective mining  methods, which  would  bring
reduced ounces, but quality ounces yielding the highest margins.
2.       A larger resource and reserve base is established.
Our near-term objective is therefore to focus on maintaining and if
possible expanding surface mining activities, along with the
necessary exploration to support this in order to at least continue
to cover costs.  This is now in progress with the surface drilling
programme mentioned above, which will be funded from cash flow
supplemented if required, from current cash holdings.

In the medium term, and conditional on securing further funding,
additional underground ore sources are required.  The real value in
the Serabi's land-holdings is the hard rock ore sources that
undoubtedly underlie the area and from which the oxidized ore is
derived that historically the garimpeiros and now Serabi generates
production.  It was this potential that drew Serabi to the Tapajos in
the first place, and this potential has now been enhanced by results
of the airborne geophysical survey flown by the Company in early
2008.
Operations in any remote region of the world bring with them a need
to independently establish infrastructure and support services.   The
success of such ventures is the ability to grow production to
comfortably meet and exceed such costs.  At Palito, the difficulties
encountered expanding production meant that this cost could not be
spread over sufficient ounces resulting in a high and unsustainable
cost per ounce.

To realistically overcome this, a second and third mine in the Palito
district is the best option, and the Directors feel the most
realistic one.  The model is to feed the central process plant, from
a selection of small mines.  The 18 principal anomalies that were
largely identified from the 2008 airborne geophysical survey are
therefore a priority.  These anomalies exhibit very similar
geophysical characteristics to the Palito deposit, and their close
proximity to the Palito infrastructure makes them all the more
important.  We believe testing (through a combination of drilling and
further geophysics, and geochemistry) and advancing these targets
could be achieved with an initial budget of around US$1.4M for the
first 12 months, followed by a further US$2.2M over a subsequent 12
month period.  It is also believed that oxide ore sources are likely
to accompany these targets, and therefore continued low cost surface
oxide ore gold production can be additional benefit from such a
programme.

As reported last quarter, regionally the Company has suspended its
activities.  Our outlying tenements are not core assets, and
therefore we are pursuing partners with whom to advance these
properties.

OPERATING REVIEW

Since the beginning of the year, limited gold production has
continued at Palito through the mining of surface oxide ore.  The
operation is mining and processing approximately 6,000 tonnes of
oxide ore per month.

Key points:

  * Since suspension of underground mining at the end of 2008,
    surface oxide operations have produced over 37,000 tonnes (200
    tonnes per day) at grades of approximately 3.4 g/t gold.
  * Mining has to date been limited to the Senna Zone.  Up to 10
    other areas are now being evaluated.
  * Plant has capacity to process over 700 tpd of oxide ore
  * Considering current gold prices and exchange rates, at a 200-250
    tpd production rate, operating cut off grades are between 2.2-2.5
    g/t gold.


The oxide ore is mostly free-dig and therefore does not require
drilling and blasting.  As a result, very little ore requires
crushing.  The feed only requires treatment through the existing CIP
plant and as a result, the flotation circuit is currently idle.

As reported last quarter, the dramatic reduction in overheads has
resulted in gold production from oxides being able to more than meet
the costs of the Brazilian operation year-to-date.  The modest
operating cash surplus has been used for paying down residual
payables from 2008 and also to pursue limited oxide exploration.
More importantly, the success to date has been sufficiently
encouraging for the Directors to approve a US $250,000 surface oxide
drilling programme with the objective of testing a series of known
soil anomalies, which it is hoped can be readily turned into mineable
oxide deposits in the near term.  Initial results from this programme
should be available by the Q3 2009 update.

Conditional upon the success of this oxide drilling programme, it is
our intention to continue to identify additional minable oxide
resources and if sustainable, gradually increase oxide gold
production further.  The process plant has capacity to treat over 700
tonnes per day of oxide ore, and whilst we do not currently envisage
such throughput levels adequate capacity is available to meet any
increase in mining volumes.  The drilling rig required for this type
of evaluation drilling is expected to be on site by early August and
will be operated by an independent contractor experienced in this
type of exploration activity.

The Palito underground mine has been on care and maintenance since
January 2009, but remains in a condition whereby mining operations
could re-commence at relatively short notice.  Any re-establishment
of underground mining at Palito to levels of production similar to
those originally targeted for 2008, would require a phase of
long-term development (up to 12 months), bringing with it a
substantial working capital requirement.  However, in the light of
experience of the past 3 years, the Directors are firmly of the
opinion, that the re-introduction of selective manual mining at
Palito is necessary, and even this would require a significant
working capital outlay and require identification and recruitment of
suitable mining personnel.  Selective mining whilst yielding lower
ore volumes would produce a higher grade ore feed to the plant and
thus be expected to produce lower cost ounces and improved and more
robust economics. The unavoidable higher fixed costs of operating in
a remote location mean that to achieve sustainable profitable ounces
with healthy margins, an increase in geological resource and mineable
reserves are also required.

EXPLORATION REVIEW

Since the beginning of the year, exploration activity has been
largely suspended with the exception of exploration activity designed
to delineate oxide resource amenable to surface mining.  As mentioned
earlier, the board has now approved a US$250,000 surface oxide
drilling programme, which will focus on a combination of targets
which include geochemical, geophysical and historical indications of
further oxide ore potential.

Key points:

  * 10 target areas located within the mine operating license area
  * Targets have been defined by anomalous gold in soil geochemistry,
    trenching and shallow drilling results
  * Further evaluation will be by power auger and shallow percussion
    drilling and follow up trenching
  * 50,000 tonnes at more than 2 g/t gold oxide ore is targeted


Regionally, the Company has suspended its activities.  Our outlying
tenements are not core assets, and therefore we are pursuing partners
with whom to advance these properties.

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
Roland Cornish                  Tel: [phone]
Michael Cornish                 Tel: [phone]


Qualified Persons Statement
The information contained within this announcement has been reviewed
and verified by Michael Hodgson as required by the AIM Guidance Note
on Mining. Oil and Gas Companies dated March 2006.  Michael Hodgson
is an Economic Geologist by training with 20 years experience in the
mining industry.  He holds a BSc (Hons) Geology, University of
London, a MSc Mining Geology, University of Leicester and is a Fellow
of the Institute of Materials, Minerals and Mining and a Chartered
Engineer of the Engineering Council of UK.

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