AGM Statement

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

                            AGM Statement

Serabi Mining plc advises that at 11:00 today, it will be holding its
Annual General Meeting.

The following reproduces the text of the statement that will be made
by Graham Roberts, Chairman of the Company:

"The continuing  modest success  of the  oxide mining  operations  at
Palito has made a  valuable contribution to  the Company's cash  flow
this year potentially allowing us the opportunity to benefit from the
improved  markets  and  investor  sentiments,  compared  with   those
prevailing in the earlier part of this year.  The oxide ores had  not
previously formed a significant part  of our production strategy  for
Palito because of processing issues when being treated together  with
the sulphide ore.   For this reason  we had never  focused before  on
establishing significant  oxide resources;  what resources  had  been
identified were  an incidental  consequence of  exploration  targeted
towards the underlying sulphide mineral deposits.

Heavy seasonal  rains  earlier  this  year  have  precluded  us  from
undertaking any more  systematic exploration of  the oxide  potential
and, for this reason,  production has so far  only been derived  from
the  limited  number  of  known  occurrences  previously   outlined.
However, now the rains  have finished I am  pleased to say that  this
month we will start a drill programme  that we hope will lead to  the
identification of  additional oxide  ore feed  and thus  establish  a
longer term source of gold production.  In addition we are  currently
assessing the potential to reprocess  Palito's tailings as a  further
source of gold production.

We consider there are now two paths  that can be pursued in order  to
generate returns for shareholders.  A transaction could be undertaken
that would result in  value being generated  through the disposal  of
the projects in Brazil  or we raise new  funding in order to  advance
identified projects and  thus enhance the  underlying value of  those
assets.  As noted in our investor newsletters, the production  levels
that we are likely to be able to sustain from the oxide gold  sources
and the resulting  cash flow this  will generate, is  unlikely to  be
adequate to allow the  Company to grow and  so new capital is  needed
for this purpose.

Whilst we understand that any new funds raised would be dilutive  for
existing shareholders, the Directors are of the view that this should
be outweighed  by  the potential  for  a successful  outcome  of  the
planned exploration and development programmes, that could result  in
a significant upward  revision of  the project values  and hence  the
Company.  In considering the potential success of this strategy it is
noteworthy  that  some  66  anomalies  were  successfully  identified
following last year's  airborne geophysical survey,  of which 18  are
considered priority targets.   These anomalies  exhibit very  similar
characteristics to the known  Palito mineralisation, and their  close
proximity to  the  Palito  infrastructure makes  them  all  the  more
important.

As has  been noted  in  the recent  quarterly Investor  Updates,  the
Directors believe that the  long term success  for Palito requires  a
return to more selective  mining methods and  the establishment of  a
larger reserve and resource base  to support an expanded  operation.
For this reason we are unlikely  to pursue a strategy that would  see
the early  re-opening of  Palito  and currently  prefer to  focus  on
securing a  larger reserve  and resource  base by  concentrating  the
Company's efforts and  capital on exploration  and evaluation of  the
near mine anomalies that have  already been identified.  We  consider
that it  could take  up to  four years  to fully  undertake the  work
necessary to bring the project to a stage which would permit  project
finance  to  be  used  to   cover  the  cost  of  additional   plant,
infrastructure and mining equipment  required to support an  expanded
operation; the  final  time  frame  will of  course  be  dictated  by
results.  During this time the company's operations will continue  to
focus on the oxide mining  opportunities, which would be expected  to
generate limited cash flow to supplement any new capital raised.

We  are  working  closely  with  our  advisers  on  indentifying  new
potential funding, the levels required  and timing.  In the event  of
successfully pursuing this strategy  it should, however, be  expected
that further funding  would be required  over the evaluation  period,
though in  this event  each further  raising of  new funds  would  be
undertaken with a greater degree of  confidence as to the outcome  of
the programmes being financed.   We  are also working to raise  "soft
loans" from one of the Brazilian development agencies SUDAM.  We have
lodged an initial application which  has been accepted by the  agency
but is still subject to amongst other things, technical and legal due
diligence, approval of the business strategy and financial review  of
the business plan.

An alternative  to  progressing  Palito  on  our  own  would  be  the
introduction of  an industry  partner  as a  means to  achieving  our
objectives.  Accordingly  we are  continuing our  discussions with  a
number of potential partners who are interested in the Tapajos region
and the potential that  the company's asset base  offers.  In such  a
situation we would look to  a partner with sufficient cash  resources
that would  allow  them  to follow  their  initial  investment  right
through to a  project development decision.   Whilst to-date none  of
our discussions have yet resulted in a suitable proposal, we continue
to be  active in  pursuing  this route  as  an alternative  means  of
achieving improved value for shareholders.

It should  be  remembered that  Palito  and the  related  exploration
targets  are  already  a  very  advanced  project,  with  significant
infrastructure in place, that is clearly not reflected in the current
market valuation of the parent company.   Notwithstanding the current
generally depressed  valuations  placed  on  mining  and  exploration
properties worldwide, in  the opinion of  the Directors Serabi  still
represents a significantly undervalued  opportunity.  The success  of
the oxide mining and better markets  now provides us with options  to
secure this value for shareholders.

As matters progress we will  of course continue to keep  shareholders
informed."



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]

---END OF MESSAGE---




This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.