Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian-focused gold mining and development company, today reported its updated Mineral Reserves and Resources estimate at Palito and Sao Chico as of 31 December 2020.

Highlights

Total Measured and Indicated Resources of 262,956 ounces and Inferred Resources of 211,821 ounces.

Significant increase in the Sao Chico resources with the Measured and Indicated Resource more than doubling to 82,807 ounces and the Inferred Resource almost doubling to 94,002 ounces following successful exploration programme in 2019.

Accelerated mine development and exploration programmes underway to catch up activity that was curtailed in 2020 to mitigate risks and impacts of COVID-19 pandemic and is expected to support further resource growth.

Mike Hodgson CEO commented: 'The Palito Complex has a long history of reserve and resource replenishment and it is pleasing to demonstrate this once again. Our global mineral resources have remained relatively stable despite mine depletion and although the reported reserves are lower than we would normally expect, this is a direct result of the measures we took to safeguard our operation in the face of the COVID-19 pandemic.

'Following the successful equity raise of US$17.5 million announced on 2 March 2021, we are fully funded to complete our 2021 exploration programme which will include 32,000 meters of diamond drilling over the course of the year. Much of this drilling will be focused on extensions to the Palito and Sao Chico orebodies which remain open along strike, laterally and at depth. This exploration programme will be the largest in the Company's history and we are confident that it will deliver resource growth. In addition, we are working hard to catch up the mine development that was put on hold during the COVID-19 pandemic. This development not only opens up new areas of the mines but is an integral part of the conversion of resource blocks into reserve ounces.

'With our workforce back to full strength and our COVID-19 protocols seemingly very effective at keeping the virus out of our camp, we are making excellent progress on both exploration and development. We look forward to updating the market with our exploration results throughout the year and are confident these will lead to a growth in both our reserves and resources and demonstrate that the Palito and Sao Chico deposits remains long-life assets.'

Contact:

Michael Hodgson

Tel: +44 (0)20 7246 6830

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 reect 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.

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