Progress Update on Palito Gold Project

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

                    update ON PALITO GOLD PROJECT in BRAZIL

Serabi , the AIM-traded gold exploration and production is pleased to provide a
progress update on the Company's 100% owned Palito gold project in the Tapajos
region of northern Brazil.

·            Geophysical and geochemical exploration programme on 18 targets at
Palito gold project now underway
·            Palito district is highly prospective for gold with extensive
artisanal workings
·            Objective of expanding gold resources above 1.5 million ounces
·            Cash on hand year end 2009 of £2.5m
·            Gold production from small scale surface mining operations
continues

Mike Hodgson, Chief Executive comments:
"Serabi has developed considerably over the last twelve months, culminating in
our successful  financing December last year. The Company's prime focus is on
expanding the project's hard rock resource to over one and a half million
ounces, from its present 630,000 ounces of gold equivalent. With a reduced burn
rate, highly prospective targets and an established small scale oxide mining
operation, Serabi is well positioned to see significant further progress in
2010. I look forward to updating shareholders on our exploration results in due
course."

Exploration programme
In 2008 the Company undertook an airborne geophysical survey over the Palito
project area. The electromagnetic survey combined with other exploration data
defined at least eighteen priority targets which exhibit similar geophysical
responses to the existing Palito mine area. Fifteen of the targets are within
three kilometers of the mine and of these fifteen, seven are situated within the
Company's existing mine licence. The remaining targets are located within the
Company's surrounding exploration licences. Serabi is focused on exploring these
initial eighteen targets for quartz vein and massive sulphide hosted gold
resources, with the objective of increasing Palito's global resource to above
one million ounces.

First pass ground geophysics (electromagnetic and induced polarization) will be
undertaken on the ten targets closest to the mine site during the current wet
season, which ends in April. In tandem with the geophysical survey, shallow
(<10m depth) auger drilling will be undertaken to generate geochemical data
below the surface horizon, which otherwise has the potential to be contaminated
by garimpeiro gold mining activities. The results will be used to guide a 4,000
- 5,000m diamond drill programme that is planned to commence in July. The
exploration budget for the Palito project in 2010 is approximately US$1.7
million.

The company's exploration activities over the next 12 months are summarized
below:

+--------------------------------------------------+---------------------------+
|GEOPHYSICS ON ANOMALIES 1 TO 10 (TENDERS,         |JAN 2010 to MAY 2010       |
|MOBILISATION AND SURVEY)                          |                           |
+--------------------------------------------------+---------------------------+
|GEOPHYSICAL INTERPRETATION                        |APRIL 2010 to JUNE 2010    |
+--------------------------------------------------+---------------------------+
|DIAMOND DRILLING OF ANOMALIES                     |JULY 2010 to SEPT 2010     |
+--------------------------------------------------+---------------------------+
|DEEP GEOCHEMISRTY - AUGUR ANOMALIES 1-10 WHERE    |END APRIL 2010 to SEPT 2010|
|REQUIRED                                          |                           |
+--------------------------------------------------+---------------------------+
|PROSPECTING ANOMALIES 11-18                       |OCT 2010 to DEC 2010       |
+--------------------------------------------------+---------------------------+



The Company's exploration assets outside the Palito project remain in good
standing and discussions with third parties in respect of potential joint
ventures or sale of these assets are being advanced in order that the Company
can maintain its focus on expanding resources at Palito.
.

Mining Operations
Gold is presently being produced at Palito from the mining of free-digging
surface oxide deposits.  Generally this ore does not require crushing and is
processed directly through the existing CIP plant. There are no resource figures
for the extent of the oxide ores and while additional areas of potential
continue to be assessed, the Company remains mindful that the quantity of
suitable ore material will be finite.

Mining of the primary (hard rock) gold and copper bearing quartz veins is not
being undertaken and the underground portion of the mine remains on care and
maintenance. The mine has produced 110,000 gold equivalent ounces since 2005 and
has a gold equivalent JORC resource of 660,000 ounces of which 187,000 ounces is
in the reserve category at a grade of 7.3 g/t Au.

By the end of 2009 the company produced 5,500 ounces of gold from surface mining
of veins at the Senna and Palito West zones. The Company is also investigating
the potential for retreatment of gold bearing tailings. Revenues from the
Company's surface oxide mining activities continue to approximately cover the
cost of maintaining the operations and overheads at the Palito project.

 A link to a map showing the geophysical targets is attached to this release
                           Map of Geophysical targets
About Serabi Mining plc
Serabi is a AIM traded gold explorer and producer focused on Brazil. The
Company's flagship asset is its 100% owned Palito gold project in the Tapajos
region of northern Brazil. The Tapajos region is highly prospective for gold and
is estimated to have yielded 30 million ounces in the last 35 years from
artisanal mining activities. The Palito project hosts the Palito mine, which has
a JORC gold equivalent resource of 660,000 ounces within a series of high grade
gold (>5 g/t) and copper bearing quartz veins in granite. The Palito district is
subject to extensive artisanal alluvial gold mining and Serabi is undertaking an
exploration programmes to define new hard rock sources, with an initial
objective of increasing Palito's gold resource beyond one million ounces.
Further information on the company is available at www.serabimining.com
<

http://www.serabimining.com/>

 A pdf version of the full release can be accessed by following the link in this
release

Enquiries:
Serabi Mining plc

 Mike Hodgson                                              Tel: [phone]

 Chief Executive                                           Mobile: [phone]



 Email: [e-mail]
 <mailto:[e-mail]>

 Website:  www.serabimining.com
 <

http://www.serabimining.com/>



 Beaumont Cornish Limited
 Nominated Adviser and Broker

 Roland Cornish                                            Tel: [phone]

 Michael Cornish                                           Tel: [phone]



 Farm Street Communications

 Simon Robinson                                            Tel: [phone]
 [e-mail]                        Mobile: [phone]
 <mailto:[e-mail]>



Forward-looking statements
This press release includes certain forward-looking statements. All statements,
other than statements of historical fact, included herein, including without
limitation, statements regarding the future plans and objectives of Serabi, are
forward-looking statements that involve various known and unknown risks and
uncertainties as well as other factors. Such forward-looking statements are
subject to a number of risks and uncertainties that may cause actual results or
events to differ materially from current expectations, including delays in
obtaining or failure to obtain required regulatory approvals. There can be no
assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Any forward-looking statements speak only as of the date hereof and, except as
may be required by applicable law, Serabi disclaim any obligation to update or
modify such forward-looking statements, either as a result of new information,
future events or for any other reason.



Qualified Persons Statement

The information contained within this announcement has been reviewed and
verified by Michael Hodgson as required by the AIM Guidance Note on Mining. Oil
and Gas Companies dated March 2006.  Michael Hodgson is an Economic Geologist by
training with 20 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


Ends


[HUG#1377880]





    Map showing geophysical target areas: 

http://hugin.info/137617/R/1377880/338559.pdf
    Full PDF version of press release: 

http://hugin.info/137617/R/1377880/338612.pdf