Drilling Update - Shallow Infill Drilling at Pi...

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

                                Drilling Update
  Shallow Infill Drilling at Piaui Provides Further Encouragement of Potential


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 a shallow infill drilling  programme on the Piaui Prospect located
at its 100% owned Jardim do Ouro project in the Tapajos region.

As previously announced, the Company has been experiencing delays in receiving
assay results from the independent laboratory used by the Company, and the
preliminary analytical results set out below from infill and extension drilling
at the Piaui Prospect have been returned from the Company's own on-site
analytical laboratory at the Palito mine (see footnote - Preliminary Assay
Results). Shallow infill drilling commenced in October on the promising Piaui
propect and 2,600 metres of a shallow diamond drilling programme across 23 drill
holes has been recently completed (PDD0495-PDD0501, PDD0503-PDD0517). All
samples have also been submitted to ALS Chemex of Vancouver and results of this
final analysis will be released in due course.

Mike Hodgson, Chief Executive, commented:
"Piaui represents a previously concealed ore body and as such is unlikely to
have been discovered had it not been for our aerial geophysical programme.
 Previously announced geochemical and drilling results over a 300m strike length
indicated good grades at shallow depths including results of 1.93 metres @
22.86g/t Au, 10.7 metres @ 1.17 g/t Au, 9.1 metres @ 2.24 g/t Au, 3.2 metres @
16.16 g/t Au and 4.5 meters @ 2.75 g/t Au, and highlighted the possibility of
wider intersections than we have encountered at Palito.  The latest preliminary
results continue to confirm the potential of Piaui to host broader width near-
surface mineralization with good gold grades, over a significant strike length".

The recent drilling follows the successful Phase 1 results together with the
highly encouraging results from the ground-based geophysical Induced
Polarisation survey undertaken (as announced on 12 September 2011), which
indicated that the strike length of the Piaui discovery could now extend up to
1,400 metres.  To date, the drilling, which has now been undertaken over two
areas of 600 metres and 350 metres within the overall 1,400 metre potential
strike length of the prospect, continues to intersect broad zones of intense
chlorite/silica/sulfide alteration zones in excess of 40 metres which
demonstrate the passage of a significant amount of mineralized fluid.
 Preliminary on-site analytical results returned to date indicate a very fertile
mineralized system, with indications that the system remains open at depth.

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

+-------------------------------------------------------------------------------------+
|Prospect    Hole     East   North    RL     Hole    Dip/Azm  From    To   Width  Au  |
|                                            Depth                                    |
|                                                                                     |
|                    (UTM)   (UTM)  (UTM)     (m)             (m)    (m)    (m)   g/t |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0495   633760 9300260 222.97  244.50   -55/210 111.62 113.50 1.88  0.36 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0497   633246 9300573 235.66  191.05   -52/211 51.50  52.00  0.50  0.94 |
|        |                                                                            |
|        |                                                   66.69  67.22  0.53  1.14 |
|        |                                                                            |
|        |                                                   103.77 104.84 1.07  0.49 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0498   633900 9300105 204.55  111.70   -50/210 40.98  41.70  0.72  3.63 |
|        |                                                                            |
|        |                                                   49.66  50.57  0.91  3.05 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0499   633142 9300633 242.22  188.20   -50/212 110.57 115.78 5.21  3.25 |
|        |                                                                            |
|        |                                 including         110.57 111.56 0.99  4.13 |
|        |                                                                            |
|        |                                 including         114.54 115.78 1.24  8.81 |
|        |                                                                            |
|        |                                                   130.88 131.93 1.04  0.63 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0500   633072 9300673 243.06   97.90   -48/30  50.96  51.75  0.79  0.74 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0501   633072 9300673 243.16   99.45   -51/213 44.94  45.75  0.81  1.35 |
|        |                                                                            |
|        |                                                   45.75  46.63  0.78  0.62 |
|        |                                                                            |
|        |                                                   69.04  69.54  0.50  0.80 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0503   633038 9300693 224.41  112.65   -50/200 102.91 103.91 1.00  0.44 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0504   632998 9300624 240.75   95.05   -50/213 45.14  45.90  0.76  2.17 |
|        |                                                                            |
|        |                                                   48.20  49.34  1.14  0.24 |
|        |                                                                            |
|        |                                                   59.50  60.60  1.10  0.24 |
|        |                                                                            |
|        |                                                   70.94  71.44  0.50  2.16 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0505   633032 9300604 228.22   95.55   -50/213 36.61  37.39  0.78  0.85 |
|        |                                                                            |
|        |                                                   57.85  61.77  3.92  0.58 |
|        |                                                                            |
|        |                                                   62.61  64.30  1.69  0.50 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0506   633067 9300584 228.33   94.40   -49/216 12.05  13.10  1.05  0.60 |
|        |                                                                            |
|        |                                                   40.57  41.44  0.87  2.48 |
|        |                                                                            |
|        |                                                   56.81  60.21  3.40  6.68 |
|        |                                                                            |
|        |                                 including         57.81  58.75  0.94  16.69|
|        |                                                                            |
|        |                                                   64.90  65.83  0.93  0.48 |
|        |                                                                            |
|        |                                                   65.83  66.83  1.00  0.30 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0507   633102 9300564 228.90   92.20   -49/210 19.83  20.56  0.74  0.81 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0508   633136 9300544 228.33   97.60   -49/215  8.77   9.45  0.68  0.96 |
|        |                                                                            |
|        |                                                   12.60  13.82  1.22  0.62 |
|        |                                                                            |
|        |                                                   15.50  18.30  2.80  3.63 |
|        |                                                                            |
|        |                                 including         16.69  17.58  0.89  8.59 |
|        |                                                                            |
|        |                                                   50.21  51.09  0.88  0.53 |
|        |                                                                            |
|        |                                                   63.33  64.43  1.10  2.57 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0509   633171 9300524 228.00   97.85   -49/211 14.40  14.92  0.52  1.07 |
|        |                                                                            |
|        |                                                   20.50  23.20  2.58  0.92 |
|        |                                                                            |
|        |                                                   38.19  38.94  0.75  0.77 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0510   633206 9300504 227.87  140.20   -48/214  8.10  10.29  2.28  1.18 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0511   633240 9300484 228.00  133.60           23.64  24.30  0.66  1.34 |
|        |                                                                            |
|        |                                                   39.57  40.20  0.63  0.51 |
|        |                                                                            |
|        |                                                   64.18  66.18  2.00  7.00 |
|        |                                                                            |
|        |                                 including         65.10  66.18  1.08  10.22|
|        |                                                                            |
|        |                                                   72.12  73.20  1.08  0.31 |
|        |                                                                            |
|        |                                                   73.20  74.13  0.93  2.12 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0512   632962 9300645 228.00   86.20   -50/210 52.85  54.00  1.15  0.27 |
+--------+----------------------------------------------------------------------------+
|Piaui   | PDD0515   633865 9300125 206.00   71.70           28.13  29.23  1.10  0.28 |
|        |                                                                            |
|        |                                                   36.16  36.91  0.75  0.93 |
|        |                                                                            |
|        |                                                   43.11  43.71  0.60  1.66 |
+--------+----------------------------------------------------------------------------+
|Piaui   |PDD0457Ext                220.45   50.50   -50/210 161.50 162.47 0.97  1.26 |
|        |                                                                            |
|        |                                                   182.73 183.58 0.85  0.53 |
+--------+----------------------------------------------------------------------------+
Note:  Assay intercepts are calculated based on a minimum weighted average grade
of 0.3g/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 on-site laboratory
using  a 30gm DIBK  aqua regia  digest with  an AAS  analysis.  Serabi's on-site
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).


As described above, final analysis has been delayed due to technical issues with
the offsite laboratory. Results from a certificated analytical laboratory are
expected within the coming months.

The  initial Phase 1 drilling programme  has now been completed  with a total of
8,169 metres having been drilled.

Results  have previously been  announced for the  Piaui, Panhandle and Currutela
prospects.   Results have now been received from the primary external laboratory
in  Vancouver, Canada for the  samples recovered from the  Tatu, Lazaro and Pele
prospects which are located north of the Palito deposit. Gold intersections were
recovered  at Pele  and Tatu  but the  widths and  grades are  not considered of
sufficient  interest to  warrant further  activity at  this time  given the more
encouraging  potential of  the Piaui,  Espeto and  Currutela prospects.   At the
Lazaro  prospect, as with the earlier  Panhandle prospect, the single drill hole
failed  to return any indication of a causitve body for the targeted geophysical
anomaly.


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






This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Serabi Gold plc via Thomson Reuters ONE

[HUG#1565935]