Quarterly Update

Serabi Mining plc
21 October 2005

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

Serabi Mining plc advises that it has today despatched to shareholders its
quarterly investor newsletter.

The Company has highlighted in its newsletter the following matters:

• Production ramp up continues at Palito

• Focus on short term planning and new operating efficiencies set to benefit
1H 2006

• 2005 drill results highlight long term potential at Palito and the Jardim
do Ouro district

• Acquisition of advanced Pombo Gold Project in southern Tapajos accelerates
regional project development


PALITO OPERATING RESULTS 2005 (1)
---------------------------------

                               Quarter ended     Quarter ended   Year-to-date
                                 June 30 (2)      September 30   September 30
-----------------------------------------------------------------------------
Mined (per day) tonnes              13,689           12,381         36,034
                                      (150)            (135)          (132)
-----------------------------------------------------------------------------
Milled (per day) tonnes              14,006          14,315         36,543
                                       (154)           (156)          (134)
-----------------------------------------------------------------------------
Head grade g/t                          8.63           12.06          10.13
-----------------------------------------------------------------------------
Recovery %                              88.2            90.2           88.3
-----------------------------------------------------------------------------
Gold produced ounces                    3,427          5,005         10,509
-----------------------------------------------------------------------------
(1) Provisional (2) Revised

PALITO
------
The operation has performed well during the quarter, with production continuing
to improve. Against this background, management has recently embarked upon two 
important initiatives:
• Introducing plans to overcome the short-term mining bottleneck discussed in 
the June Investor Update, to ensure mine production matches the planned 
processing plant upgrades currently underway

• A re-assessment of the Palito resource at year-end, in combination with the
development of a more detailed long term mine plan

A programme is in place to enable process capacity to achieve 250tpd by year-end
and further upgrades are planned to take capacity to 300-350 tpd soon
thereafter.

The full text of the quarterly update is available from Serabi's offices or from
the 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

email: [e-mail]



                      This information is provided by RNS
            The company news service from the London Stock Exchange