Drilling Update - Bonanza Gold Grades Returned ...

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

                                Drilling Update
          Bonanza Gold Grades Returned from Palito Extension Drilling


Serabi  Gold  plc  (AIM:SRB,  TSX:SBI  and  SBI.WT),  the Brazilian focused gold
exploration  company, is pleased to  announce encouraging preliminary analytical
results from shallow extension drilling on the south-eastern strike extension of
the  Palito  deposit  have  returned  Bonanza  grade  gold and high grade copper
results

Preliminary  analytical results set  out below from  shallow infill and step out
drilling on the strike extension of the Palito Main Zone have been returned from
the  onsite analytical laboratory at the Palito mine (see footnote - Preliminary
Assay  Results).  Drilling  commenced  in  late  October  on  the  shallow depth
projection  of  several  interpreted  higher  grade  mineralized  shoots and was
completed  in mid-November. The program completed a total of 8 holes for a total
of  937m of shallow  diamond drill  holes (PDD0519-PDD0526).  Preliminary assays
for  the first five of these holes have now been received.  All eight holes have
been sampled, and submitted to the Company's primary laboratory at ALS Chemex in
Vancouver. The results of this final analysis will be released in due course.


Mike Hodgson, Chief Executive, commented:
"We  are confident  that the  existing Palito  gold resource extends towards the
Espeto  prospect located some 800 metres to the south east, and with Curretela a
further  900 metres  along  strike,  the  potential  continues.  In late 2008 we
undertook  some additional  drilling which  showed significant  extension to the
current  limit of the Palito  resource by some 500 metres  and this new drilling
not only supports this, but adds a further 300 metres.  If this is substantiated
by  further resource drilling it would more add some 80% to the strike length of
the current Palito resource.  The grades are of course very pleasing and suggest
that  the  high  grade  nature  of  the  ore that makes Palito such a compelling
opportunity  continue along the  mineralized zone.  The  relative shallowness of
the  intersections (mostly  between 45 metres  and 80 metres  vertical depth) is
also  indicative of  the possibility  to initially  use open  pit mining methods
which can reduce the complexity and risk of future mining operations."

Significant preliminary results (subject to confirmation by ALS Chemex) returned
to date include:

+------------------------------------------------------------------------------+
|                              Hole                                            |
| Hole    East   North   RL    Depth   Dip/Azm   From    To   Width   Au    Cu |
|                                                                              |
|        (UTM)   (UTM)  (UTM)   (m)              (m)    (m)    (m)   g/t    %  |
+------------------------------------------------------------------------------+
|PDD0519 634410 9300977   204  126.3   -64/211  96.39  97.11  0.72   9.26  0.40|
+------------------------------------------------------------------------------+
|                                               No                             |
|                                               significant                    |
|PDD0520 634367 9300979   209 124.85   -69/211  Assays                         |
+------------------------------------------------------------------------------+
|                                               No                             |
|                                               significant                    |
|PDD0521 634367 9300980   209  75.1    -58/208  Assays                         |
+------------------------------------------------------------------------------+
|PDD0522 634300 9301054   224  150.1   -64/210  104.86 105.76 0.90  20.60  3.56|
+------------------------------------------------------------------------------+
|PDD0523 634270 9301072   223  105.3   -49/210  71.21  72.57  1.36  48.07  2.64|
|                                                                              |
|                                     including 72.00  72.57  0.57  103.94 6.04|
+------------------------------------------------------------------------------+
|                                               assays                         |
|PDD0524 634270 9301073   223   150    -68/211  pending                        |
+------------------------------------------------------------------------------+
|                                               assays                         |
|PDD0525 634339 9300992   215  84.8    -48/225  pending                        |
+------------------------------------------------------------------------------+
|                                               assays                         |
|PDD0526 634339 9301001   215  120.5   -69/211  pending                        |
+------------------------------------------------------------------------------+
|    Previous drilling from 2008 and since last Geological Resource Update     |
+------------------------------------------------------------------------------+
|                              Hole                                            |
| Hole    East   North   RL    Depth   Dip/Azm   From    To   Width   Au    Cu |
|                                                                              |
|        (UTM)   (UTM)  (UTM)   (m)              (m)    (m)    (m)   g/t    %  |
+------------------------------------------------------------------------------+
|PDD0444 634344 9300995   211  220.1   -59/211  55.15  56.12  0.97   3.43  0.04|
|                                                                              |
|                                               58.90  59.83  0.93  34.75  0.24|
+------------------------------------------------------------------------------+
|PDD0447 634307 9301051   219  238.5   -48/211  79.00  79.70   0.7   0.97  0.15|
+------------------------------------------------------------------------------+
|PDD0450 634231 9301082   223  230.9   -50/209  54.25  56.80  2.55   2.43  0.55|
|                                                                              |
|                                     including 55.65  56.80  1.15   3.56  1.10|
+------------------------------------------------------------------------------+
|PDD0452 634416 9300971   203  220.3   -50/210  75.64  76.55  0.91   5.01  0.04|
+------------------------------------------------------------------------------+
Note:         1) Assay intercepts for PDD0519 - PDD0526 are calculated based on
a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average
lower cut and a maximum internal waste interval of 1.2m. All assays were
completed by Serabi's onsite laboratory using a 30gm DIBK aqua regia digest with
an AAS analysis.  Serabi's onsite laboratory is not certificated for analysis
and these results should be considered preliminary in nature (please refer to
the footnote at the end of this release for further details).
  2) Assay intercepts for PDD0444-PDD0452 are calculated based on a minimum
weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut
and a maximum internal waste interval of 1.2m. All assays were completed by an
independent accredited laboratory using a 30gm Fire Assay charge with an AAS
analysis.

The recent shallow drilling program was undertaken to confirm the strike
continuity of the Palito Main Zone (PMZ) indicated by the last drill holes
completed at the end of 2008 drilling campaign and the initial drill hole
reported from the Espeto prospect (as announced 15 July 2011).

Figure 1 below plots the above results on a longitudinal section of the Palito
Main Zone and illustrates their location relative to the existing physical limit
of mineralization included in the current geological resource.  Intersections
are reported in grammes of gold per metre.

Please access Figure 1 by clicking on the link below

 

http://hugin.info/137617/R/1566260/486321.jpg

FIGURE 1 - LONGITUDINAL SECTION OF THE PALITO MAIN ZONE

These results highlight the prospectivity remaining along strike from Palito and
into the Espeto and Currutela prospects and supported by the geophysical
information gathered by the Company and also confirm the continuing high grade
nature of the mineralisation.  High grade intercepts have now been returned
continuously along the strike of the PMZ for 800m beyond the current limit of
the geological resource at Palito estimated in March 2008.

As noted in the Company's announcement of 23 November 2011, final assay results
have been delayed due to technical issues with an independent laboratory used by
the Company. Results from a certificated analytical laboratory are expected
within the coming months.



Enquiries:

 Serabi Gold plc

 Michael Hodgson                 Tel: [phone]

 Chief Executive                 Mobile: [phone]



 Clive Line                      Tel: [phone]

 Finance Director                Mobile: [phone]



 Email: [e-mail]

 Website:  www.serabigold.com



 Beaumont Cornish Limited
 Nominated Adviser

 Roland Cornish                  Tel: [phone]

 Michael Cornish                 Tel: [phone]



 Fox Davies Capital Ltd
 UK Broker

 Simon Leathers                  Tel: [phone]

 Jonathan Evans                  Tel: [phone]



 Farm Street Communications
 Public Relations

 Simon Robinson                  Tel: [phone]



 Fig House Communications
 Investor Relations

 Rebecca Greco                   Tel: + 1 416 822 6483



Copies of this release are available from the Company's website at
www.serabigold.com.


Forward-looking statements
This press release contains forward-looking statements. All statements, other
than of historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements. Forward-looking
statements are often identifiable by the use of words such as "anticipate",
"believe", "plan", may", "could", "would", "might" or "will", "estimates",
"expect", "intend", "budget", "scheduled", "forecasts" and similar expressions
or variations (including negative variations) of such words and phrases.
Forward-looking statements are subject to a number of risks and uncertainties,
many of differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to differ
materially from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the possibility
that future exploration results will not be consistent with the Company's
expectations, the price of gold and other risks identified in the Company's most
recent annual information form filed with the Canadian securities regulatory
authorities on SEDAR.com. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward-
looking statement.

Qualified Persons Statement
The  information  contained  within  this  announcement  has  been  reviewed and
verified  by Michael Hodgson,  CEO of the  Company.   Mr  Hodgson is an Economic
Geologist by training with over 25 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,
recognizing him as both a Qualified Person for the purposes of Canadian National
Instrument  43-101 and by the AIM Guidance Note on Mining. Oil and Gas Companies
dated March 2006.

Quality Assurance and Quality Control Procedures Disclosure

The  Company has  implemented and  maintains a  Serabi quality assurance/quality
control  (QA/QC)  protocol  at  its  JDO  Project  as defined in its "NI 43-101
Technical  Report for the Jardim Do Ouro  Project, Para State, Brazil" dated 22
December  2010.  This ensures best industry practice in sampling and analysis of
exploration and resource definition samples.  The insertion of field duplicates,
certified  standards and blank samples  into the sample stream  form part of the
Serabi  procedure (these act as an independent check on contamination, precision
and accuracy in the analytical laboratory).

Assay results are reported once rigorous QAQC procedures have been approved.

Preliminary Assay Results

The assay results reported in the table within this release are those provided
by the Company's own on-site laboratory facilities and have not yet been
independently verified although the Company has already despatched duplicate
samples for such verification using fire assay methodology.  Serabi closely
monitors the performance of its own facility against results from independent
laboratory analysis for quality control purposes.  In 2008 NCL(Brasil) Ltda, the
author of the Company's independent technical reports produced in compliance
with Canadian National Instrument 43-101 reviewed and compared over 1,000 sample
results of the Palito laboratory against results obtained by an independent
laboratory using fire assay.  They noted that when discarding from the sample
population all results of less than 0.7g/t "the repeatability improves
significantly reaching the generally accepted limits of variance (90% of the
samples with HARD<20%)".Further details are set out in their report NI 43.101
TECHNICAL REPORT FOR THE JARDIM DO OURO PROJECT, PARA STATE, BRAZIL dated
December 9, 2010 and available on the Company's website.
During 2011 the Company has continued to monitor the performance of its own
laboratory against results reported by the Company's independent laboratory and
have concluded that by eliminating from its sample population all results of
less than 0.3 g/t there remains good correlation and for higher grade gold
values the tendency is for the Company's own results to be under-reported due to
the improved gold recovery that can be obtained using fire assay methods.
The Company would expect that in the preparation of any future independent
Reserve/Resource statement undertaken in compliance with a recognised standard,
the independent authors of such a statement would not use Preliminary assay
results but would only use assay results reported by an appropriately
certificated laboratory.


Neither  the  Toronto  Stock  Exchange,  nor  any  other  securities  regulatory
authority, has approved or disapproved of the contents of this news release.

ENDS




Longitudinal Section of the Palito Main Zone: 


http://hugin.info/137617/R/1566260/486321.jpg




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Source: Serabi Gold plc via Thomson Reuters ONE

[HUG#1566260]