IBAMA cancels US$2.2 million fine

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

                       IBAMA cancels US$2.2 million fine

Serabi  Mining, the AIM-traded gold exploration  company, is pleased to announce
that it has received confirmation from the Instituto Brasileiro do Meio Ambiente
e  dos  Recursos  Naturais  Renovaveis  ("IBAMA")  that  the original penalty of
Brazilian  Reais 3,597.300 (equivalent to  US$2.2 million) assessed  by IBAMA in
June 2010 has been cancelled.

IBAMA  has assessed  a revised  penalty of  Brazilian Reais 1,500, equivalent to
US$903   (nine  hundred  and  three  US  dollars)  in  respect  of  the  alleged
administrative breaches. The Company has accepted and paid this fine.

Mr Michael Hodgson, the Chief Executive of Serabi, commented:

"I  am very pleased that the matter has now been settled.  Whilst we have always
been  confident that  the penalty  would be  re-assessed it  has clearly  been a
concern  for shareholders  to have  this element  of uncertainty.   Our staff in
Brazil  have worked hard to achieve this  conclusion and I am pleased that IBAMA
are  satisfied  that  Serabi  is  in  compliance  with its current environmental
obligations.   With  this  distraction  now  settled  we  can fully focus on the
execution of our exploration programmes.

The original fine as announced by the Company in June 2010 was raised in respect
of  alleged  administrative  breaches  of  the  Operating Licence held by Serabi
Mineracao SA "(SMSA") (the Company's wholly-owned subsidiary and operator of the
Palito  Mine).  The  suspension notice  imposed by  IBAMA at  the same time, was
lifted  in  September  2010 following  a  decision  by  IBAMA  that  SMSA was in
compliance with the terms of its Operating Licence.


Enquiries:

 Serabi Mining plc

 Clive Line                        Tel: [phone]

 Finance Director                  Mobile: [phone]



 Email: [e-mail]

 Website:  www.serabimining.com



 Beaumont Cornish Limited
 Nominated Adviser

 Roland Cornish                    Tel: [phone]

 Michael Cornish                   Tel: [phone]



 Fraser Mackenzie Limited
 Canadian Broker

 JC St-Amour                       Tel: [phone]



 Hybridan LLP
 UK Broker

 Claire Noyce                      Tel: [phone]



 Farm Street Communications
 Public Relations

 Simon Robinson                    07593 340107


Copies   of   this   release   are   available   from   the   company's  website
www.serabimining.com.






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Source: Serabi Mining plc via Thomson Reuters ONE

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