Palito Exploration Update

For immediate release

26 September 2022

Serabi Gold Plc
("Serabi" or the "Company")

Palito Exploration Update

Serabi Gold Plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to provide an exploration update from its Palito Mine in the Tapajos region of Para State, Northern Brazil.

A PDF version of this announcement, including all images, can be accessed using the following link - https://bit.ly/3LOzPZF

Highlights

• The Zonta Vein lies some 100 metres further west of the Senna Vein, which is in production, and once developed will be the most westerly production vein at Palito.
  
  

• High grade intercepts from the recent underground drilling and some previous surface and underground drilling include:
  
  
  • 0.55 metres @ 55.99g/t Au from 397.15 metres (PDD0289)
  • 0.75 metres @ 34.75g/t Au from 217.00 metres (PUD0793)
  • 1.00 metres @ 36.46g/t Au from 223.55 metres (PUD0801)
  • 1.20 metres @ 10.65g/t Au from 300.80 metres (PUD0803)
  • 1.00 metres @ 10.69g/t Au from 234.45 metres (PUG009)

• Hole PUD0803 intersected the Zonta Vein at approximately 400 metres below surface and is currently the deepest intersection anywhere within the Palito Mine, boding well for future resource growth.
  
  

Mike Hodgson CEO said

"Underground drilling at the Palito Mine continues to deliver excellent results. This recent phase of drilling has intersected the Zonta Vein, an orebody that we had previously identified with limited surface drilling but had never properly drill tested. Most significantly, Zonta lies west of the Palito mine, meaning this is a new zone discovered between Senna - our most westerly developed vein and the Piaui zone, which was successfully drilled earlier this year. With minimal information between Zonta and Piaui, the possibility of finding multiple veins as we develop the mine to the west is high.

"Of further interest is the depth of some of these intercepts in the Zonta Vein. Hole PUD 0803 is 400 metres below surface, the deepest intercept in all of the Palito veins, recording 10.65 g/t over 1.20 metres and therefore indicating the veins remain robust at depth.

"Access and development of the Zonta vein is already underway with a simple cross-cut from the Senna Vein. and the resulting resource will make a meaningful contribution to our forthcoming mineral resource update and gold production in 2023 and 2024 ."

Results

The Zonta Vein is situated within the Palito Mine lease and extends the strike width of the Senna Sector as the most south-westerly vein identified in this immediate area. The Senna Sector is an area which is already being mined by Serabi and the significant existing mine infrastructure should facilitate rapid development of the Zonta Vein.

A further 500 metres to the southwest lies the Piaui Sector, (see news release dated 18 March 2022), an area that has been successfully drilled but does not have any underground mine development or infrastructure.

To access an image of the Plan of Palito Mine Veins please click on the following link : https://bit.ly/3SydYrs

Figure 1: Plan of Palito Mine veins and underground development

Holes PDD0255 to PDD0313 were drilled from surface in 2006, holes PUG001 to PUG011 were drilled from underground during 2016 and 2017 and holes PUD0793 to PUD0821 were drilled during this recent campaign.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries:

Copies of this announcement are available from the Company's website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

GLOSSARY OF TERMS

Assay Results
Assay results reported within this release include those provided by the Company's own on-site laboratory facilities at Palito and these will not have been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice, the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding 1 g/t gold, comparison between Palito versus external results record an average over-estimation by the Palito laboratory of 6.7% over this period. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay

Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 26 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, recognising him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations, or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

ENDS

Attachment

• Palito exploration update