Circ re. Q4 Investor Update

Serabi Mining plc
19 January 2006


QUARTERLY INVESTOR UPDATE
-------------------------                                     

Serabi Mining plc advises that it has today despatched to shareholders its 
quarterly investor newsletter for the Fourth  Quarter of 2005.

The Company has highlighted in its newsletter the following matters:
          
•    Continuing operating improvements throughout the year underlies 2005 
     production of 17,261 oz gold equivalent

•    Following new productivity initiatives, Q4 underground mining production 
     was up 54% (89% including open cut material) and Q4 process plant 
     throughput was up 50% over Q3 results

•    Major benefits expected to result from the introduction of decline access 
     and long-hole trackless mining at Palito

•    Introduction of grid electricity and completion of capital projects about 
     to benefit the Palito mine and emphasize Serabi's position as the only 
     established operator in the Tapajos gold province

Palito - Operating Results 2005 (1)

Year-ended
                              Q1       Q2       Q3      Q4     Dec 2005
Mining Rate:
Underground (per day)  t    7,753   13,689   12,381   19,059    54,993
                             (87)    (150)     (135)   (207)     (151)

Open Cut (2) (per day) t                               4,394     4,394
                                                         (48)     (48)
Total Mined (per day)  t    7,753   13,689    12,381   23,453   59,387
                              (87)    (150)    (135)    (255)    (163)

Milling Rate:
Milled (per day)       t    8,222   14,006    14,315   21,415   57,958
                             (92)    (154)      (156)    (233)   (159)
Head Grade            g/t     9.3      8.6       12.1      7.7     9.2
Recovery               %     84.2     88.2       90.2     91.8    89.4

Production:
Gold                   oz   2,077    3,427      5,005    4,837  15,345
Copper                 t     22.4     38.2       81.0     74.7   216.2
Gold equivalent        oz   2,262    3,747      5,724    5,528  17,261

1) Provisional
2) November and December only; includes Compressor Lode oxide material and
surface material from Palito North

PALITO
------
Production levels improved throughout 2005 resulting in total gold equivalent 
production of 17,261 ounces for the year. Significantly, the initial impact of 
plans to overcome the mining bottleneck outlined in the September Investor
Update are already evident in the December quarterly results. Underground mining 
rates reached an average of 207 tpd for the quarter and 232 tpd during November 
and December.

The first de-bottlenecking phase of a three stage process plant improvement plan 
was completed during Q4. Average mill throughput for the quarter rose to 
233 tpd, however this reflected a transitional period and the plant regularly 
achieved between 250 and 300 tpd during the last half of the quarter. The second 
phase of the improvement plan is now underway, which will include the addition 
of a third ball mill.  The completion of this second phase should reduce mill 
downtime and result in sustainable capacity of 300 to 350 tpd.

The full text of the quarterly update is available from Serabi's offices or from
the company's website www.serabimining.com.

Enquiries: Serabi Mining plc

Graham Roberts                             Tel: [phone]
Chairman                                   Mobile: [phone]

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

Chris Sattler                              Tel: [phone]
Manager, Finance and Corporate Development



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