Update on Geophysical Survey at Palito

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

          update ON GEOPHYSICAL SURVEY AT PALITO GOLD PROJECT, BRAZIL
Serabi, the AIM-traded gold exploration and production company, announces a
Progress Update Report on the Company's 100% owned Palito gold project in the
Tapajos region of northern Brazil.

Highlights
  * Drilling expected to commence in July 2010
  * 9 drill ready targets identified from initial survey over 14 EM anomalies
  * To the east of Palito a chargeable complex, containing at least 6 discrete,
    sub-parallel, chargeable bodies, has been found
  * Further IP surveys planned to further extend and delineate some of the
    anomalies identified


Further to the Company's press release of 9 April, the initial follow-up
ground-induced polarisation ("IP") geophysical survey at the Company's Jardim do
Ouro project in the state of Para, Northern Brazil, which commenced in
mid-March, has now been completed and the interpretation of the results
undertaken.

This Survey was a follow-up to the company's successful airborne Electromagnetic
("VTEM") geophysical survey, which had highlighted a significant number of
geophysical  targets within close proximity to its Palito mine, of which the
Company had prioritized 18 targets that it believed merited further evaluation.

The IP Survey focused on 3 main areas lying within 5km of the Palito plant and
infrastructure, parts of which fall within the existing mining lease.  These
three areas covered 14 of the18 initial VTEM targets.  Data interpretation and
integration of the recent IP results with all other pre-existing exploration
datasets has delineated at least nine  significant targets warranting drill
testing at the earliest opportunity.  These anomalies exhibit high chargeability
- low resistivity attributes, properties one would expect to find associated
with sulphide bodies and which are characteristics of the gold bearing sulphide
bodies found at Palito.

Mike Hodgson, Chief Executive of Serabi Mining, commented:
"The Company views these results with great optimism and excitement.  To be
rewarded with 9 drill targets from a ground survey testing an initial 14
anomalies was well beyond the expectations we had at this stage.  Furthermore,
it has demonstrated that using EM as a first pass exploration tool and following
up with ground IP, has been shown to be a valid and excellent exploration
process for the identification of sulphide hosted gold bodies in this area of
the Tapajos.  As a result, we are well on schedule to be drilling by July this
year, the outcome of which we will be eagerly anticipating.  Furthermore, the
success of our geophysical exploration means that we will also be extending our
IP surveys to cover the remaining target areas.  We hope that these in turn,
will generate additional drill targets. We hope to be making substantial
progress in our quest to make further discoveries and resource growth at Serabi
by the end of this year. "

The survey was divided into 3 discrete areas, identified as the TZ1, located to
the north of the Palito Mine, TZ2, located south east of Palito and TZ3 located
to the south.  A diagram is appended to this release for reference purposes.

In the TZ1 area 5 significant, highly conductive - low resistivity anomalies
were identified.  One of these is a large anomaly lying within the historical
"Pele" area.  The Pele area has seen significant past garimpeiro surface gold
mining activity and is associated with a geochemical anomalism.  Additionally a
low resistivity anomaly was found with a strike length of 800m which may
represent a different style of mineralisation to Palito.  Significantly, this
corresponds to the historic Tatu Garimpo trend, where the company has previously
discovered rock chip samples with gold grades up to 191g/t from quartz -
magnetite veining considered to be from within a brittle fault zone, with
minimal or no sulphide association.

The results also identified a further three chargeability anomalies which follow
and lie within the dominant regional 070° trending structural corridor which
hosts the main Palito mineralization. These geophysical anomalies potentially
represent chargeable sulphides manifesting along geological structures.

Within the TZ2 area, the most significant zone of IP anomalies were defined at
the Kubanikan prospect area, where a chargeable complex, containing at least 6
discrete, sub-parallel, chargeable bodies, has been found.  This chargeable,
conductive complex, displays very similar geophysical attributes to that of the
Palito Main Zone.  This zone remains open to the east and west, with indications
that the chargeable bodies continue in both strike directions.

In the TZ3 survey area, south of the Palito mine, two (2) significant IP
anomalies were defined, the most significant of which is a high chargeability
anomaly, exceeding 500m in length, and certainly appears to be similar to those
associated with the plunging ore zones and shoots within the Palito Main Zone

Serabi is currently in final negotiations with drilling contractors, and remains
on schedule to commence drilling in July 2010.  Serabi will also take the
opportunity to complete further IP surveys in July, to further extend and
delineate the significant TZ2 and TZ3 anomalies.

A map showing the survey areas and the drill targets is appended to this
release.  The full release including the map is available to download from the
company's website

Further information on the company is available at www.serabimining.com
<

http://www.serabimining.com/>



Enquiries:
Serabi Mining plc

Mike Hodgson                                                Tel: [phone]

Chief Executive                                             Mobile: [phone]



Email: [e-mail]
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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
Public Relations

Simon Robinson                                              Mobile: [phone]
[e-mail]                          Tel: [phone]
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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.




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    Map Showing of survey areas and drill targets: 

http://hugin.info/137617/R/1418132/368449.jpg