Unaudited financial results for the 9 months en...

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

  Release of Unaudited Financial Results for the 9 months to 30 September 2010

The  Board of Serabi  announces the unaudited  financial results for the Company
for  the nine months to 30 September 2010.  As announced on 2 December 2010, the
Company  is taking the steps required to apply  to list the Ordinary Shares on a
Canadian stock exchange in early 2011.  As part of this process the Company will
be required to include in its prospectus the financial results of the nine month
period  ended on 30 September 2010 and on an  on-going basis, and if its listing
application is successful, will be required to report its financial results on a
quarterly  basis as  part of  its on-going  reporting obligations under Canadian
requirements.

The  Company is focussed on its exploration  strategy at the Palito Mine and the
surrounding  Jardim do  Ouro district  and commenced  in December 2010, a 7,500
metre discovery drilling programme on nine targets located in close proximity to
the Palito Mine. It has also approved a helicopter borne electro-magnetic survey
covering an 8,000 hectare area to the south and north east of the Palito Mine to
identify  other potentially  mineralised areas  within the  wider region that it
hopes will create additional targets for further evaluation.

Discussion of Results

An  operating loss for the nine-month period ended September 30, 2010 of US$3.84
million  (2009:  US$7.41million)  is  reported,  including  non-cash elements of
US$1.7  million (2009:  US$6.27 million),  being primarily depreciation charges.
The cash expended on operations of the Company during this nine month period, as
shown  in  the  cash  flow  statements,  was approximately US$2.9 million (2009:
US$285,000).

The  suspension of mining operations at  the Palito Mine, following the issuance
of  a suspension notice by  IBAMA in June 2010, contributed  to a gross loss for
the nine month period of US$733,581 compared to a gross profit of US$224,875 for
the nine-month period ended September 30, 2009.  While the suspension notice was
lifted  on  September  23, 2010, it  is  not  foreseen  that  there  will be any
immediate  resumption of mining activities which was in any event limited to the
processing  of  oxide  ore  mined  from  small  scale surface mining activities.
 Personnel   and  equipment  resources  have  been  transferred  to  exploration
activities and, in the future, oxide ore processing will only be undertaken on a
campaign  basis,  with  the  plant  being  run  when  adequate stocks of ore are
available.   It has become  increasingly difficult to  identify further adequate
surface resources at this time to justify a continuous oxide mining operation at
the Palito Mine.

For  the 3 month  period to  September 30, 2010 the  operating loss  was US$1.58
million (2009: US$2.98 million).  The level of the loss for the quarter reflects
the  fact that  there was  negligible revenue  US$22,909 (2009: US$1.19 million)
following the suspension of all mining activities.

The  higher  than  normal  level  of  administrative expenses for the quarter of
US$561,015  (2009:  US$192,978)  reflects  the  recording of settlements of past
labour  claims  in  Brazil  that  have  been  made  in 2010. Overall however the
administration  costs for the  9 month period of  US$1.40 million are comparable
with the costs for same period in 2009 of US$1.37 million.

During  the quarter the Company sold surplus  equipment but realised a book loss
on the sale of US$111,106 (2009: profit of US$33,422).

Over  the nine  month period  ended September  30, 2010, a total  US$1.4 million
(2009:  US$379,000) was capitalised as exploration costs with the major activity
being  the undertaking of a ground-based  induced polarisation survey during the
first  six months of  the year. This  work has been  supplemented by geochemical
sampling  over some  of the  anomalies that  are the  subject of the 7,500 meter
drilling  programme  that  commenced  in  December  2010 and preparatory work in
anticipation of this drill programme.

The  Brazilian Real, has remained relatively stable during the period and having
started  the 2010 at a rate of BrR$1.7412 to the US$ it closed at BrR$1.6942, an
appreciation of 2.7%. As the majority of the assets and liabilities of the group
excluding  cash are historically denominated in Brazilian Real, movements in the
exchange  rate do impact on  the value of the  group and any appreciation of the
Real has a beneficial impact on the net assets of the Company.

Financial Condition
On  September 30, 2010, the  Company's total  assets amounted  to US$51,251,902,
which  compares to US$49,238,168 recorded at December 31, 2009 and US$46,227,376
at  September 30, 2009. Total assets are mostly  comprised of property plant and
equipment  which as at  September 30, 2010 totalled US$34,280,250 (US$35,327,788
at  December 31, 2009), and deferred exploration  and development costs which as
at   September   30, 2010 totalled   US$8,558,842   (US$6,880,038   at  December
31, 2009), of   which   US$   7,079,782 relates   to   capitalised   exploration
expenditures at, or in close proximity to, Palito.

The   Company's  total  assets  also  included  cash  holdings  of  US$5,247,991
(US$4,081,882 at December 31, 2009).

The  Company's total liabilities at September 30, 2010 of US$5,586,202 (December
31, 2009 US$6,033,451)  included accounts payable to suppliers and other accrued
liabilities   of   US$3,935,912  (December  31, 2009 US$4,361,854).   The  total
liabilities  include  the  fair  value  of US$245,477 including accrued interest
(December  31, 2009 $216,898) attributable to the UK£300,000 loan from a related
party,  Greenwood Investments Limited  which has a  repayment date of 31 October
2014 subject to the right of Greenwood at any time, on one or more occasions, on
or  before the repayment date, to convert any of the outstanding amounts owed by
the  company to Ordinary Shares  at a price of  15 pence per Ordinary Share.  It
also  includes the  amount of  US$1,383,056 (December  31, 2009 US$1,374,200) in
respect of provisions including US$1,055,00 (December 31, 2009 US$1,055,000) for
the cost of remediation of the current Palito Mine site.

Liquidity and Capital Resources
During  the  calendar  year  ended  December 31, 2009, the Company was primarily
reliant  upon its  existing cash  holdings to  finance its activities during the
year  and realised additional  cash resources through  the sale of certain plant
and equipment.

Revenue  from gold  production for  the year  ended December 31, 2009 was US$5.5
million  but  resulted  in  an  overall  gross  loss for the year of US$242,198.
 Overall  the Company's  operating activities  absorbed US$1.5  million, and the
Company  settled obligations under finances leases totalling US$1.18 million and
realised  proceeds  of  US$1.22  million  through  the sale of certain plant and
equipment.
In  the last quarter of 2009, the Company  raised net proceeds of US$4.1 million
through  the issue  of new  Ordinary Shares  and a  further US$477,780 through a
£300,000  convertible  loan  stock  facility  which  was  drawn down on December
14, 2009.

The  Company has been  generating limited revenue  from mining operations and in
order  to  fund  its  exploration  work  during  the  period  ended on September
30, 2010, the  Company was dependent upon  utilising its existing cash resources
and  raising financing through the issuance  of shares. In June 2010 the Company
raised £3,600,000 though a private placement of 120 million Ordinary Shares at a
price of £0.03 per share to Eldorado Gold Corporation.  On December 2, 2010, the
Company  announced the placement  of Special Warrants  raising gross proceeds of
$5,538,500  and  following  the  passing  of  a resolution by Shareholders for a
consolidation  of the Ordinary Shares on the basis of one New Ordinary Share for
every  ten Existing Ordinary  Shares, the net  proceeds of the  issue of Special
Warrants were released to the Company on 23 December 2010.

While  the Company has been able to  fund its past activities from a combination
of  revenue generated from  gold sales and  the issue of  new equity, the future
funding  requirements are  expected to  be generated  from the  issue of further
equity,  although  the  board  of  directors  intends  to  evaluate  alternative
opportunities  for funding  the on-going  exploration activities  of the Company
including  entering into joint  venture arrangements and  the use of development
grants and loans.


                               SERABI MINING PLC
 Report and consolidated financial statements for the 9 month period ended 30
          September 2010, and the six month period ended 30 June 2010
                Consolidated Statements of Comprehensive Income


                    ------------------------------------------------------------
                         For the     For the     For the     For the     For the

                     Nine months       Three        year nine months       Three
                                      months                              months

                           ended       ended       ended       ended       ended

                             30          30  31 December         30          30
                       September   September               September   September

                            2010        2010        2009        2009        2009

(expressed in  Notes (unaudited) (unaudited)   (audited) (unaudited) (unaudited)
US$)
--------------------------------------------------------------------------------
CONTINUING
OPERATIONS

Revenue                1,171,908      22,909   5,512,804   4,792,920   1,191,571

Operating            (1,905,489)   (411,103) (5,755,002) (4,568,045) (1,506,070)
expenses
--------------------------------------------------------------------------------
Gross                  (733,581)   (388,194)   (242,198)     224,875   (314,499)
profit/(loss)

Administration       (1,403,406)   (561,015) (1,851,937) (1,371,913)   (192,978)
expenses

Option costs            (75,307)    (25,103)   (147,038)    (60,174)    (20,013)

Write-off of                   -           -   (495,138)   (476,967)   (476,967)
past
exploration
costs

Increase in                    -           -   (346,000)   (346,000)   (346,000)
rehabilitation
provision

Loss on asset          (115,800)   (111,106)   (181,237)   (176,219)      33,442
disposals

Impairment        11           -           - (4,343,048) (3,582,333) (1,159,596)

Depreciation         (1,514,897)   (497,439) (2,157,026) (1,625,894)   (499,788)
of plant and
equipment
--------------------------------------------------------------------------------
Operating loss       (3,842,991) (1,582,857) (9,763,622) (7,414,625) (2,976,399)

Foreign                 (31,481)     241,092    (14,533)     166,815      73,060
exchange
(loss)/gain

Finance costs          (121,595)    (61,016)   (215,916)   (191,822)    (32,886)

Investment                21,794      16,691       3,569       1,748         267
income
--------------------------------------------------------------------------------
Loss before          (3,974,273) (1,386,090) (9,990,502) (7,437,884) (2,935,958)
taxation

Income tax                     -           -           -           -           -
expense
--------------------------------------------------------------------------------
Loss for the         (3,974,273) (1,386,090) (9,990,502) (7,437,884) (2,935,958)
period from
continuing
operations (1)
(2)
--------------------------------------------------------------------------------


Other
comprehensive
income (net of
tax)

Exchange                 955,544   2,193,512  10,072,895   9,374,318   3,254,662
differences on
translating
foreign
operations
--------------------------------------------------------------------------------
Total                (3,018,729)     807,422      82,393   1,936,434     318,704
comprehensive
(loss)/income
for the period
(2)
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Loss per           4     (1.06c)     (0.31c)     (6.16c)     (5.31c)     (2.10c)
ordinary share
(basic and
diluted) (1)
--------------------------------------------------------------------------------
 (1) All revenue and expenses arise from continuing operations.
(2) The Group has no non-controlling interests and all income / (losses) are
attributable to the equity holders of the Parent Company.


                               SERABI MINING PLC
                          Consolidated Balance Sheets

                                         ---------------------------------------
                                                 As at        As at        As at

                                          30 September  31 December 30 September

                                                  2010         2009         2009

(expressed in US$)                  Notes  (unaudited)    (audited)  (unaudited)
--------------------------------------------------------------------------------
Non-current assets

Development and deferred                5    8,558,842    6,880,038    6,478,501
exploration costs

Property, plant and equipment           6   34,280,250   35,327,788   35,922,960
--------------------------------------------------------------------------------
Total non-current assets                    42,839,092   42,207,826   42,401,461
--------------------------------------------------------------------------------
Current assets

Inventories                             7    1,352,402    1,259,764    1,094,059

Trade and other receivables                    251,122      275,538      328,187

Prepayments and accrued income               1,561,295    1,413,158    1,487,400

Cash at bank and cash equivalents       8    5,247,991    4,081,882      916,269
--------------------------------------------------------------------------------
Total current assets                         8,412,810    7,030,342    3,825,915
--------------------------------------------------------------------------------
Current liabilities

Trade and other payables                     3,387,529    4,170,712    4,073,090

Accruals                                       182,091      122,269      311,775

Interest bearing liabilities                         -       80,499      122,957
--------------------------------------------------------------------------------
Total current liabilities                    3,569,620    4,373,480    4,507,822
--------------------------------------------------------------------------------
Net current assets                           4,843,190    2,656,862    (681,907)
--------------------------------------------------------------------------------
Total assets less current                   47,682,282   44,864,688   41,719,554
liabilities
--------------------------------------------------------------------------------
Non-current liabilities

Trade and other payables                       388,049       68,873       90,827

Provisions                                   1,383,057    1,374,200    1,367,577

Interest bearing liabilities                   245,477      216,898            -
--------------------------------------------------------------------------------
Total non-current liabilities                2,016,583    1,659,971    1,458,404
--------------------------------------------------------------------------------
Net assets                                  45,665,699   43,204,717   40,261,150
--------------------------------------------------------------------------------


Equity

Share capital                          10   27,752,834   26,848,814   25,285,679

Share premium                               40,754,032   36,268,991   33,402,649

Option reserve                               1,614,094    1,523,444    3,121,269

Other reserves                                 260,882      260,882            -

Translation reserve                          3,224,701    2,269,157    1,570,580

Accumulated loss                          (27,940,844) (23,966,571) (23,119,027)
--------------------------------------------------------------------------------
Equity shareholders' funds                  45,665,699   43,204,717   40,261,150
--------------------------------------------------------------------------------

The  interim financial information has not  been audited and does not constitute
statutory  accounts as defined in Section  434 of the Companies Act 2006. Whilst
the  financial information  included in  this announcement  has been compiled in
accordance  with  International  Financial  Reporting  Standards  ("IFRS")  this
announcement  itself does not contain sufficient financial information to comply
with  IFRS.  The Group statutory accounts  for the year ended 31 December 2009,
prepared  under IFRS as adopted in the EU, have been filed with the Registrar of
Companies.  The  auditors'  report  on  these  accounts  was unqualified but did
contain  an Emphasis of Matter  with respect the ability  of the Company and the
Group  to continue as a  going concern.  The auditors'  report did not contain a
statement under Section 498 (2) or 498 (3) of the Companies Act 2006.




                               SERABI MINING PLC
           Consolidated Statements of Changes in Shareholders' Equity

---------------------------------------------------------------------------------------------
(expressed in      Share      Share       Share    Other Translation  Accumulated
US$)                                     option

(unaudited)      capital    premium     reserve reserves     reserve         loss       Total
                                                                                       equity
---------------------------------------------------------------------------------------------
Equity
shareholders'                                          -
funds at 31   25,285,679 33,402,649   3,061,095          (7,803,738) (15,681,143)  38,264,542
December 2008
---------------------------------------------------------------------------------------------
Foreign
currency               -          -           -
adjustments                                            -   9,374,318            -   9,374,318

Loss for the           -          -           -        -           -  (7,437,884) (7,437,884)
period
---------------------------------------------------------------------------------------------
Total
comprehensive
income  for            -          -           -        -   9,374,318                1,936,434
the period                                                            (7,437,884)

Share option           -          -      60,174        -           -            -      60,174
expense
---------------------------------------------------------------------------------------------
Equity
shareholders'
funds at 30   25,285,679 33,402,649   3,121,269        -   1,570,580 (23,119,027)  40,261,150
September
2009
---------------------------------------------------------------------------------------------
Foreign
currency               -          -           -        -     698,577            -     698,577
adjustments

Loss for the           -          -           -        -           -  (2,552,618) (2,552,618)
period
---------------------------------------------------------------------------------------------
Total
comprehensive                                 -        -     698,577  (2,552,618) (1,854,041)
income for             -          -
the period

Issue of new
ordinary       1,563,135  3,129,079           -        -           -            -   4,692,214
shares

Share issue            -  (262,737)           -        -           -            -   (262,737)
costs

Equity
portion of             -          -           -  260,882           -            -     260,882
convertible
loan stock

Cancellation
of share               -          - (1,705,074)        -           -    1,705,074           -
options

Share option           -          -     107,249        -           -            -     107,249
expense
---------------------------------------------------------------------------------------------
Equity
shareholders' 26,848,814 36,268,991   1,523,444  260,882   2,269,157 (23,966,571)  43,204,717
funds at 31
December 2009
---------------------------------------------------------------------------------------------
Foreign
currency               -          -           -        -     955,544            -     955,544
adjustments

Loss for the           -          -           -        -           -  (3,974,273) (3,974,273)
period
---------------------------------------------------------------------------------------------
Total
comprehensive                                 -        -     955,544  (3,974,273) (3,018,729)
income for             -          -
the period

Issue of new
ordinary         904,020  4,520,100           -        -           -            -   5,424,120
shares

Share issue            -   (35,059)           -        -           -            -    (35,059)
costs

Share option           -          -      90,650        -           -            -      90,650
expense
---------------------------------------------------------------------------------------------
Equity
shareholders'
funds at 30   27,752,834 40,754,032   1,614,094  260,882   3,224,701 (27,940,844)  45,665,699
September
2010
---------------------------------------------------------------------------------------------


                               SERABI MINING PLC
                       Consolidated Cash Flow Statements

                                          --------------------------------------
                                                For the     For the      For the

                                            nine months        Year  nine months

                                                  ended       Ended        ended

                                           30 September 31 December 30 September

                                                   2010        2009         2009

(expressed in US$)                          (unaudited)   (audited)  (unaudited)
--------------------------------------------------------------------------------
Operating activities

Operating loss                              (3,842,991) (9,763,622)  (7,414,625)

Depreciation - plant, equipment and mining    1,514,897   2,157,026    1,625,894
properties

Impairment charges                                    -   4,343,048    3,582,333

Increase in rehabilitation provision                  -     346,000      346,000

Loss on sale of assets                          115,800     181,237      176,219

Option costs                                     75,307     167,423       60,174

Share based payment expense                           -     334,987            -

Write-off of past exploration costs                   -     495,138      476,967

Interest paid                                  (93,016)   (215,916)    (191,822)

Foreign exchange loss                          (53,045)   (650,272)    (770,105)

Changes in working capital

  (Increase) / decrease in inventories         (54,618)         452      118,806

  (Increase) / decrease in receivables,        (73,268)   1,179,755    1,039,725
  prepayments and accrued income

  (Decrease) / increase in payables,          (496,467)    (96,684)      665,091
  accruals and provisions
--------------------------------------------------------------------------------
Net cash flow from operations               (2,907,401) (1,521,428)    (285,343)
--------------------------------------------------------------------------------


Investing activities

Proceeds from sale of fixed assets              246,745   1,220,691    1,169,502

Purchase of property, plant and equipment             -    (74,578)     (71,450)

Exploration and development expenditure     (1,420,722)   (620,490)    (378,998)

Interest received                                21,794       3,569        1,748
--------------------------------------------------------------------------------
Net cash inflow/(outflow) on investing      (1,152,183)     529,192      720,802
activities
--------------------------------------------------------------------------------


Financing activities

Issue of ordinary share capital               5,424,120   4,266,740            -

Capital element of finance lease payments      (78,327) (1,178,381)  (1,134,575)

Issue of convertible loan stock                       -     477,780            -

Payment of share issue costs                   (35,059)   (172,250)            -
--------------------------------------------------------------------------------
Net cash inflow/(outflow) from financing      5,310,734   3,393,889  (1,134,575)
activities
--------------------------------------------------------------------------------


Net increase/(decrease) in cash and cash      1,251,150   2,401,653    (699,116)
equivalents

Cash and cash equivalents at beginning of     4,081,882   1,538,956    1,538,956
period

Exchange difference on cash                    (85,041)     141,273       76,429
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period    5,247,991   4,081,882      916,269
--------------------------------------------------------------------------------



                               SERABI MINING PLC
 Report and consolidated financial statements for the 9 month period ended 30
                                 September 2010
                 Notes to the Consolidated Financial Statements

1. Basis of preparation
These  interim accounts are for the  nine month period ended 30 September 2010.
Comparative  information has been provided  for the unaudited  nine month period
ended  30 September 2009 and the  audited twelve month  period from 1 January to
31 December  2009.  A  statement  of  comprehensive  income  is also included in
respect  of  the  three  month  period  ended  30 September 2010 and comparative
information  has been  provided for  the three  month period  ended 30 September
2009.

The  accounts for the period have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" and the accounting policies
are  consistent with those of the annual financial statements for the year ended
31 December  2009 and those envisaged for the  financial statements for the year
ended 31 December 2010:
  * The  financial statements are presented in  US Dollars. They are prepared on
    the  historical cost basis or the fair value basis where the fair valuing of
    relevant assets and liabilities has been applied.
  * The financial statements have been prepared in accordance with International
    Financial  Reporting  Standards  in  force  at  the reporting date and their
    interpretations  issued by the International  Accounting Standards Board and
    adopted  for use within  the European Union  (IFRS), and those  parts of the
    Companies Act 2006 applicable to companies reporting under IFRS.

  * The  Company has not  adopted any standards  or interpretation in advance of
    the  required implementation dates.  It is not anticipated that the adoption
    in  the future of the new or  revised standards or interpretations that have
    been  issued by  the International  Accounting Standards  Board will  have a
    material impact on the Group's earnings or shareholders' funds.

(i)  Going Concern and availability of project finance
In  common with  many companies  in the  exploration and development stages, the
Company  raises  its  finance  for  exploration  and  development  programmes in
discrete  tranches. The  directors have  prepared cash  flow projections for the
period  to June 2012 which  indicates that existing  funds will be sufficient to
fund  the group  and its  commitments for  the foreseeable future. The directors
have  therefore  concluded  that  it  is  appropriate  to  prepare the condensed
financial statements on a going concern basis.
However  further funds  will be  required in  order to  successfully develop any
successful  exploration targets and bring the  Palito mine back into operation.
Whilst  the directors are confident that they are taking all the necessary steps
to  ensure that the  funding will be  available, there can  be no certainty that
this  will  be  the  case.   Were  the  funding  not  to  become available in an
appropriate   timescale   the  directors  would  need  to  consider  alternative
strategies  and  an  impairment  review  would  be  required  in  respect of the
capitalised expenditure on the Palito project.  No adjustments to asset carrying
values  that  may  be  necessary  should  the  company be unsuccessful have been
recognised in the financial statements.
 (ii)  Impairment
The  Directors have undertaken a review of  the carrying value of the mining and
exploration  assets  of  the  Group,  and  considered  the  implications  of the
operational  difficulties  experienced  and  the  current  operational status of
Palito.  Following  this  review  they  have  assessed the value of the existing
assets  on  the  basis  of  value  in  use  involving a future recommencement of
underground  mining operations which is dependent on the ability of the Group to
raise  future finance and  to operate the  mine in line  with the mine plan that
forms  the basis of the value in  use calculation. The carrying values of assets
have  not been  adjusted to  reflect a  failure to  raise sufficient funds, only
maintaining  the current levels of operation or  that if a sale transaction were
undertaken the proceeds may not realise the value as stated in the accounts.
(iii)  Inventories
Inventories  - are valued at the lower of cost and net realisable value.
(iv) Property, plant and equipment
Property, plant and equipment are depreciated over their useful lives.
(v) Mining property
The Group commenced commercial production at the Palito mine effective 1 October
2006. Prior  to this date  all revenues and operating  costs were capitalised as
part  of the  development costs  of the  mine. Effective from 1 October 2006 the
accumulated  development costs of the mine were re-classified as Mining Property
costs  and such cost is being amortised over the anticipated life of the mine on
a  unit of production basis.   As the underground mine  is currently on care and
maintenance and there is no depletion of the reserves and resources attributable
to the mine, no amortization charge has been recorded in the period.
(vi) Revenue
Revenue  represents  amounts  receivable  in  respect  of  sales of gold and by-
products. Revenue represents only sales for which contracts have been agreed and
for  which the product has been delivered to the purchaser in the manner set out
in the contract. Revenue is stated net of any applicable sales taxes. Any unsold
production  and in  particular concentrate  is held  as inventory  and valued at
production cost until sold.

2. Segment Reporting
The Group currently operates with one business segment being mineral exploration
and development and one geographical segment being Brazil.

3. Taxation
Taxation  represents  a  provision  for  corporate  taxes due on taxable profits
arising  in Brazil.  No deferred  tax asset  arising from carried forward losses
incurred  outside  of  Brazil  has  been  recognised in the financial statements
because  of  uncertainty  as  to  the  time  period over which this asset may be
recovered.

4. Earnings per share
The calculation of the basic loss per share of 1.06 cents per share (31 December
2009: loss of 6.16 cents; 30 September 2009: loss of 5.31 cents) is based on the
loss  attributable to  ordinary shareholders  of $3,974,273  (31 December  2009:
loss  of  US$9,990,502;  30 September  2009: loss  of  US$7,437,884)  and on the
weighted  average  number  of  ordinary  shares  in  issue  during the period of
374,773,562 ordinary   shares   (31   December   2009: 162,309,378; 30 September
2009: 140,139,065).

5. Exploration and development costs
                                          30 September 31 December 30 September

                                                  2010        2009         2009

                                           (unaudited)   (audited)  (unaudited)
-------------------------------------------------------------------------------
Cost

Opening balance                              6,880,038   5,351,921    5,351,921

Exploration and development expenditure      1,436,066     640,875      378,998

Write-off of past exploration costs                  -   (495,138)    (476,967)

Exchange                                       242,738   1,570,728    1,412,897

Transfer to property, plant and equipment            -   (188,348)    (188,348)
-------------------------------------------------------------------------------
Balance at end of period                     8,558,842   6,880,038    6,478,501
-------------------------------------------------------------------------------

In  drawing up the results to 30 September 2009, the directors have reviewed the
timing of the impairment charges made during the year ended 31 December 2009 and
determined  that a charge of approximately  US$475,000 should be recorded in the
period  ended 30 June  2009. Originally this  write down  was recorded in the 6
month period ended 31 December 2009.

6. Property, plant and equipment
                                   30 September   31 December   30 September

                                           2010          2009           2009

                                    (unaudited)     (audited)    (unaudited)
-----------------------------------------------------------------------------
 Cost

 Balance at beginning of period      48,566,891    38,295,092     38,295,092

 Additions                                    -       283,578        280,450

 Transfer from intangible assets              -       188,348        188,348

 Exchange                             1,179,687    11,564,549     10,607,880

 Disposals                            (543,000)   (1,764,676)    (1,710,203)
-----------------------------------------------------------------------------
 Balance at end of period            49,203,578    48,566,891     47,661,567
-----------------------------------------------------------------------------


 Accumulated depreciation

 Balance at beginning of period      13,239,103     6,674,728      6,674,728

 Charge for period                    1,514,898     2,157,026      1,625,894

 Impairment charge                            -     2,590,532      1,829,817

 Exchange                               349,783     2,380,893      2,165,535

 Eliminated on sale of asset          (180,456)     (564,076)      (557,367)
-----------------------------------------------------------------------------
 Balance at end of period            14,923,328    13,239,103     11,738,607
-----------------------------------------------------------------------------
 Net book value at end of period     34,280,250    35,327,788     35,922,960
-----------------------------------------------------------------------------

7. Inventories
               30 September   31 December   30 September

                       2010          2009           2009

                (unaudited)     (audited)    (unaudited)
---------------------------------------------------------
 Consumables      1,352,402     1,259,764      1,094,059
---------------------------------------------------------
 Inventories      1,352,402     1,259,764      1,094,059
---------------------------------------------------------


8. Cash and cash equivalents
                             30 September   31 December   30 September

                                     2010          2009           2009

                              (unaudited)     (audited)    (unaudited)
-----------------------------------------------------------------------
 Cash at bank and in hand       5,247,991     4,081,882        916,269
-----------------------------------------------------------------------
 Cash and cash equivalents      5,247,991     4,081,882        916,269
-----------------------------------------------------------------------

9. Maturity profile of financial liabilities and commitments
The following table sets of the maturity profile of the financial liabilities as
at 30 September 2010 and commitments under operating leases.
                                           Due October  Due October
               Total at 30     Due by 30       2011 to     2013  to    Due after
                  September     September    September    September    September
                       2010          2011         2013         2015         2015

                (unaudited)   (unaudited)  (unaudited)  (unaudited)  (unaudited)
--------------------------------------------------------------------------------
Balance sheet
liabilities

Trade and         3,775,578     3,387,529      283,815      104,234            -
other
payables

Accruals            182,091       182,091            -            -            -

Interest            245,477             -            -      245,477            -
bearing
liabilities

Provisions        1,383,057             -            -      328,057    1,055,000
--------------------------------------------------------------------------------
Total balance     5,586,203     3,569,620      283,815      677,768    1,055,000
sheet
liabilities
--------------------------------------------------------------------------------


Other
commitments

Operating           233,529       113,262      120,657            -            -
leases
--------------------------------------------------------------------------------

10. Share capital
                 30          30  31 December  31 December         30  30 September
           September   September                            September

                2010        2010        2009         2009        2009         2009

         (unaudited) (unaudited)   (audited)    (audited) (unaudited)  (unaudited)

Ordinary      Number           $      Number            $      Number            $
Shares
----------------------------------------------------------------------------------
Opening  327,740,595   2,827,419 140,139,065   25,285,679 140,139,065   25,285,679
balance

Sub-               -           -           - (24,021,395)           - (24,021,395)
division
of
shares

Issue of 120,000,000     904,020 187,601,530    1,563,135           -            -
shares
for cash
----------------------------------------------------------------------------------
Balance  447,740,595   3,731,439 327,740,595    2,827,419 140,139,065    1,264,284
at end
of
period
----------------------------------------------------------------------------------


                  30          30  31 December        31          30          30
            September   September               December   September   September

                 2010        2010        2009       2009        2009        2009

          (unaudited) (unaudited)   (audited)  (audited) (unaudited) (unaudited)

Deferred       Number           $      Number          $      Number           $
Shares
--------------------------------------------------------------------------------
Opening   140,139,065  24,021,395           -          -           -           -
balance

Sub-                -           - 140,139,065 24,021,395 140,139,065  24,021,395
division
of shares
--------------------------------------------------------------------------------
Balance   140,139,065  24,021,395 140,139,065 24,021,395 140,139,065  24,021,395
at end of
period
--------------------------------------------------------------------------------

The following share issues of Ordinary Shares have occurred during the period:
16th June  2010        Placing of 120,000,000 Ordinary shares at a price of 3.0
pence each

The  deferred  shares  carry  no  voting  or  dividend  rights  or  any right to
participate  in the profits or assets of the Company and all the deferred shares
may  be purchased by the Company, in  accordance with the Companies Act 2006, at
any  time for no consideration.  In the event of  a return of capital, after the
holders  of the Ordinary  shares have received  in aggregate the  amount paid up
thereon  plus £100  per ordinary  share, there  shall be distributed amongst the
holders  of deferred shares an amount equal to the nominal value of the deferred
shares  and  thereafter  any  further  surplus  shall be distributed amongst the
holders of ordinary shares.

On 21 December 2010, the shareholders approved the consolidation of the Ordinary
Shares  in issue on  the basis of  one new Ordinary  Share for every 10 Existing
Ordinary  Shares.  As a result  of this consolidation the  number of shares that
would have been in issue at the end of the period would be 44,774,059.

11. Impairment
Consistent  with  the  review  process  performed  as  at  31 December 2009, the
Directors  have  undertaken  an  impairment  review  of the Group's exploration,
development and production assets.
The  Directors note that the carrying value of the assets relating to the Palito
Mine  have reduced compared  with the value  at 31 December 2009.  This  is as a
result  of variation  in exchange  rates, depreciation  charges made  during the
period  and asset  disposals.  At  the same  time the  Net Present  Value of the
Palito  project has reduced in value compared with the calculation undertaken as
of  31 December 2009.  Such reduction  is due to  the variations in the exchange
rates  ruling at the end of the period and changes in assumptions. The resulting
Net  Present  Value  still  supports  the  carrying value of US$34.3 million and
therefore the Directors have not made any adjustment to the impairment provision
currently carried in the books of the group.
In  deriving an estimate of the  value in use in respect  of the Palito mine the
Directors'  have calculated a Net Present Value of the projected cash flow to be
derived  from the exploitation  of the previously  declared reserves of 187,538
gold  equivalent  ounces  as  estimated  at  the  end  of  March  2008.  The key
assumptions  underlying the Net Present Value  are unchanged from those detailed
in  the Annual Report 2009 save that commencement  of operations has been set as
1 October  2013 (eighteen months later than  previously), the exchange rate BrR$
to  US$ has  been set  at 1.6942 (December  2009 - 1.7412), operating costs have
been increased by a factor of 15% to allow for inflationary effects and the long
term  gold price has  been set at  US$1,000.  The value  in use of Palito taking
into  account these parameters  has been estimated  at US$34.3 million (December
2009 - US$35.3 million)

12. Contingent Liability
In  June 2010, the Company's  wholly owned subsidiary  Serabi Mineracao Limitada
("SML")  was held to be in breach of certain conditions of its operating licence
by  the Brazilian Federal Environmental Agency, IBAMA,  as a result of which SML
was  required to suspend activities at the Palito  Mine and a fine was levied of
R$3,597,300  (approximately US$2.2 million).   On 23 September 2010, the Company
announced  that  IBAMA  had  lifted  the  notice  having  acknowledged  that the
conditions  of  the  operating  licence  which  had  given  rise to the original
suspension notice had been fulfilled. IBAMA has not yet made any formal decision
regarding  the fine. The Directors understand that IBAMA is of the view that the
original  proposed  fine  was  unnecessarily  severe  relative  to  the  alleged
breached. Whilst they are confident that the initial fine imposed will be waived
or  significantly reduced, at this stage the  Directors are not in a position to
estimate  with any  certainty what  level of  penalty, if  any, may become due.
Accordingly no provision for any penalty has been accrued at this time.

13. Post Balance Sheet Event
On  3 December 2010 the Company announced  that it had placed 10,070,000 Special
Warrants raising gross proceeds of C$5,538,500. The net proceeds raised from the
Offering  are intended to be applied to Serabi's on-going exploration activities
at  and around the Palito mine and in the evaluation of the wider 60,000 hectare
Jardim  do Ouro tenement holding that surrounds the Palito Mine, and for general
corporate purposes. Following the approval of shareholders to a consolidation of
the  shares on the basis of 1 New  Ordinary Share for every 10 Existing Ordinary
Shares  in  a  General  Meeting  held  on  21 December 2010, the proceeds of the
Offering  which had  been held  in escrow  were released  to the  Company on 23
December 2010.






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

[HUG#1481258]