Serabi Gold : Unaudited Results for the three and nine month periods ended 30 September 2020

PRESS RELEASE 13 NOVEMBER 2020

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

Unaudited Results for the three and nine month periods ended 30 September 2020

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, today releases its unaudited results for the three and nine month periods ended 30 September 2020.

Financial Highlights

• Cash Cost for the year to date of US$1,013 per ounce.
• All-InSustaining Cost for the year to date of US$1,298 per ounce.
• EBITDA for the third quarter of 2020 of US$6.3 million (Q3 2019: US$4.6 million) an improvement of 36 per cent.
• EBITDA for the year to date ("ytd") of US$15.7 million (2019 ytd: US$12.1 million) an improvement of 28 per cent.
• Post tax profit for the year to date of US$7.8 million (2019 ytd: US$2.8 million) an improvement of 175 per cent.
• Earnings per share for the year to date of 13.28 cents.
• Average gold price of US$1,707 received on gold sales in 2020.
• US$5.5 million now paid to date of the remaining US$12 million consideration for purchase of Coringa, due to Equinox Gold Corp. ("Equinox"). The balance will continue to be paid in monthly instalments, until travel restrictions caused by Coronavirus are lifted. US$3.5 million has been settled from cash flow with a total of US$2.0 million drawn down to date of the US$12 million Convertible Loan Notes (the "Loan Notes") being subscribed for by Greenstone Resources II LP ("Greenstone").

Key Financial Information
	9 months to	3 months to	9 months to	3 months to
	30 September	30 September	30 September	30 September
	2020	2020	2019	2019
	US$	US$	US$	US$
Revenue	45,403,793	15,941,963	43,939,510	14,353,771
Cost of sales	(24,908,688)	(8,487,475)	(27,661,873)	(8,496,884)
Gross operating profit	20,495,105	7,454,488	16,277,637	5,856,887
Administration and share based payments	(4,838,661)	(1,168,595)	(4,051,905)	(1,248,405)
EBITDA	15,656,444	6,285,893	12,225,732	4,608,482
Depreciation and amortisation charges	(4,716,809)	(1,484,715)	(6,454,531)	(2,204,030)
Operating profit / (loss) before finance and tax	10,939,635	4,801,178	5,771,201	2,404,452
Profit / (loss) after tax	7,828,409	3,671,944	2,849,341	1,129,701
Earnings per ordinary share (basic)	13.28c	6.23c	4.84c	1.92c
Average gold price received (US$/oz)	US$1,707	US$1,881	US$1,351	US$1,472
		As at	As at	As at
		30 September	31 December	31 December
		2020	2019	2018
		US$	US$	US$
Cash and cash equivalents		10,968,059	14,234,612	9,216,048
Net assets		59,209,072	69,733,388	69,110,287

SERABI GOLD PLC
Mercury House, 117 Waterloo Road, London SE1 8UL	This document is not intended to and does
t [phone] f [phone]	6831 e [e-mail] www.serabigold.com	not amount to an invitation or inducement to
Registered Office 66 Lincoln's Inn Fields,	London, WC2A 3LH Company Number 5131528	subscribe for shares in Serabi Gold plc

PRESS RELEASE 13 NOVEMBER 2020
SERABI GOLD plc ("Serabi" or "the Company")
Cash Cost and All-In Sustaining Cost ("AISC")
		9 months to	9 months to	12 months to	12 months to
		30 September	30 September
		31 Dec 2019		31 Dec 2018
		2020	2019
Gold production for cash cost and AISC
purposes	24,748 ozs	29,878 ozs	40,101 ozs			37,108 ozs
Total Cash Cost of production (per ounce)	US$1,013	US$844	US$832			US$821
Total AISC of production (per ounce)		US$1,298	US$1,078	US$1,081			US$1,093

Operational Highlights

• Third quarter gold production of 7,224 ounces, resulting in 24,748 ounces for the year to date.
• 44,077 tonnes of ore mined during the quarter at 4.84 grams per tonne ("g/t") of gold.
• 46,135 tonnes of run of mine ("ROM") ore were processed through the plant from the combined Palito and Sao Chico orebodies, with an average grade of 4.75 g/t of gold.
• 3,037 metres of horizontal development completed during the quarter, the second consecutive quarter when more than 3,000 metres of development has been achieved.
• Fourth quarter production guidance of 8,000 oz, with full year guidance of 33,000 oz.

SUMMARY PRODUCTION STATISTICS FOR 2020 AND FOR 2019

		Qtr 1	Qtr 2	Qtr 3	YTD	Qtr 1	Qtr 2	Qtr 3	Qtr 4	Total
		2020	2020	2020	2020	2019	2019	2019	2019	2019
Gold production	Ounces	9,020	8,504	7,224	24,478	10,164	9,527	10,187	10,223	40,101
(1) (2)
Mined ore -	Tonnes	42,036	43,519	44,077	129,632	42,609	44,784	44,757	44,092	176,243
Total
	Gold	6.54	5.85	4.84	5.73	7.47	6.72	7.14	6.69	7.00
	grade (g/t)
Milled ore	Tonnes	40,465	44,235	46,135	130,835	43,451	43,711	45,378	44,794	177,335
	Gold	6.66	5.91	4.75	5.73	7.69	6.72	6.84	6.81	7.02
	grade (g/t)
Horizontal
development -	Metres	2,878	3,004	3,037	8,919	1,868	2,419	2,433	2,908	9,628
Total

1. Gold production figures are subject to amendment pending final agreed assays of the gold content of the copper/gold concentrate and gold doré that is delivered to the refineries.
2. Gold production totals for 2020 include treatment of 30,155 tonnes of flotation tails at a grade of 3.50g/t (Q3 2019: 20,554 tonnes at a grade of 4.13 g/t)
3. The table may not sum due to rounding.

Exploration and Development Highlights

• The acquisition of two new highly prospective tenements to complement the Sao Chico exploration potential including highly prospective Sao Domingos exploration tenement, immediately to the west of Sao Chico. Sao Domingos hosts multiple past and present artisanal working.
• Licença Prévia (LP) for the Coringa gold project issued by SEMAS on 8 October 2020.
• Regional exploration activities at Calico and Juca prospects resumed during the quarter.

SERABI GOLD PLC
Mercury House, 117 Waterloo Road, London SE1 8UL	This document is not intended to and does
t [phone] f [phone]	6831 e [e-mail] www.serabigold.com	not amount to an invitation or inducement to
Registered Office 66 Lincoln's Inn Fields,	London, WC2A 3LH Company Number 5131528	subscribe for shares in Serabi Gold plc

PRESS RELEASE 13 NOVEMBER 2020

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

Key Objectives for 2020

• Continue advancing the licensing process for Coringa along with ongoing engineering studies.
• Advance financing package for the Coringa project to fund plant assembly and other site developments.
• Continue exploration drilling at Sao Chico with a view to producing a new resource estimation.
• Complete exploration discovery drilling programme over the geophysical anomalies to the west and south of Sao Chico.
• Maintain payment programme required to complete acquisition of Coringa gold project.
• The Company hopes to be able to commence an initial drilling programme at Toucano prior to the end of 2020.

2020 Production Guidance

The impact of CV-19 pandemic has resulted in production of 24,748 ounces of gold for the first nine months of the year. The third quarter was probably the worst period for the pandemic, to date, in Brazil, with private operations suspended and listed companies reducing operations significantly. However, the Company has managed to keep its mines operational and maintain production and cash flow throughout. By the end of September 2020, with almost a full workforce complement back at the mine sites, many ancillary activities were resumed. We anticipate fourth quarter production being approximately 8,000 ounces resulting in full year production of approximately 33,000 ounces.

Outlook for 2021

With a successful surface and underground drilling campaign over the next six months to guide a concentrated mine development programme, management are confident that production levels can start to be built up to the levels that were expected prior to the intervention of COVID-19 from the beginning of the second quarter of 2021.

Clive Line, CFO of Serabi has been interviewed by Crux Investors and BRR Media. These interviews can be accessed using the following links

Crux Investors -https://youtu.be/HwchInuUwuk

BRR Media -https://www.brrmedia.co.uk/broadcasts-embed/5fabf3ae39bad9268170c31d/?serabi-gold&popup=true

Clive Line, CFO of Serabi commented,

"Notwithstanding the lower than hoped for production for the third quarter, the strong gold price has meant that the results for the third quarter of 2020 have shown a slight improvement compared with second quarter which itself was one of our best ever quarters.

"Cash flow generation has again been strong with cash flow from operations of US$5.75 million and after accounting for capital expenditures, the net operational cash flow of US$3.74 million, slightly lower than was reported for the second quarter but reflecting an increased level of expenditure on improvements to the mining fleet.

"Operating profit (before finance costs) of US$4.8 million is at the same level as for the preceding quarter and represents a 100 per cent improvement compared to the same quarter in 2019. For the year to date the operating profit (before finance costs) of US$10.94 million represents a 90 per cent improvement year on year.

"The financial performance has been assisted by the strong gold price and the continued weakness of the Brazilian Real with the average gold price for the third quarter of approximately US$1,908. For the year to date the Group has averaged a realised price of US$1,707 for the sales completed to the end of September 2020 which compares with the LBMA average for the year to the end September 2020 of US$1,735.

SERABI GOLD PLC
Mercury House, 117 Waterloo Road, London SE1 8UL	This document is not intended to and does
t [phone] f [phone]	6831 e [e-mail] www.serabigold.com	not amount to an invitation or inducement to
Registered Office 66 Lincoln's Inn Fields,	London, WC2A 3LH Company Number 5131528	subscribe for shares in Serabi Gold plc

PRESS RELEASE 13 NOVEMBER 2020

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

"During the quarter the Company has repaid a further US$2.5 million for the outstanding acquisition obligation for the Coringa project and subsequent to the quarter end has settled a further US$2.0 million leaving a balance, of the principal outstanding, of US$6.5 million. Based on the current schedule of monthly repayments this remaining obligation should be settled during in the second quarter of 2021. With the cash flow generated, the Company has been able to fund US$2.0 million of these payments from cash flow drawing down since the start of July 2020 only a further US$0.5 million of the US$12 million Convertible Loan Note facility (the "Loan Note Facility") that was entered into with Greenstone Resources II LP ("Greenstone") in April 2020. Currently only US$2.0 million has been drawn down to date against this facility which was initially put in place when gold prices were weaker and the impacts of CV-19 difficult to assess, to provide certainty that the Company had funding available to it to meet this acquisition obligation. Management will continue to try to pay the on-going instalment payments for Coringa from cash flow generated from operations and minimise the requirement to make further drawdowns against the Loan Note Facility.

"The cash cost per ounce and the AISC per ounce for the year to date need to be viewed in context. Gold production for the year to date has been quite significantly lower than was originally forecast. In the first quarter this was the result of a breakdown of the largest of the three ball mils during February, whilst production levels for the second and third quarters have been affected by the need to reduce the workforce on site to allow socially distanced working conditions. As a result the on-site workforce over the last two quarters has been approximately 65 per cent of the normal staffing complement for much of the time those staff who were at site, voluntarily extended their work rosters with many spending up to three months at site to maintain the mining operations as restrictions on travel and a lack of testing capacity at the time rendered team changes very difficult. Had production for the second and third quarters been at the original levels expected, this would have potentially translated into a 21 per cent improvement in the AISC and Cash Costs.

"Looking at the operational statistics during the first nine months of the 2020, mined tonnage and plant throughput have been at similar levels to the same period in 2019 with lower processed grades being the major contributor to the reduction in gold production. The original plan for 2020 was to increase mining rates compared with 2019, and to use the ore sorter to beneficiate the lower grade material and deliver a sorted higher grade product to the process plant. The mine plan was therefore deliberately designed to undertake more development (more diluted ore given the mining method) as well as more lower grade stopes. The intention was to beneficiate this lower grade material through the ore sorter, screen out the majority of the waste and send the resultant lower volume of higher grade product to the plant. The Company has continued to follow the original mine plan, but with the reduced workforce it has been necessary to simplify the operations, reducing the number of faces available at any one time but this has in turn resulted in a reduction of total volume and in so doing reducing the overall level of optionality for selecting the ore. As a result, lower grade ore that might normally have been stockpiled has been processed whilst there was plant capacity available.

"By the end of September 2020, operations were returning to something resembling normality and an aggressive surface and underground drilling programme is underway, along with an accelerated underground development programme targeted to replenish the reserve and resource base and allow the Company to regain the optionality and flexibility that it has benefitted from in the past. This will not be achieved overnight, and it will take some time to recover the six months that have been lost. With exploration and mine development activity being stepped up together with the usual higher labour expense of settlement of the standard "13th salary" payments that are due in November and December this will impact on the level of cash generation for the rest of the year. Nonetheless I expect that if our production estimates are attained the Company can end in the year in a comfortable financial position."

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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

SERABI GOLD PLC
Mercury House, 117 Waterloo Road, London SE1 8UL	This document is not intended to and does
t [phone] f [phone]	6831 e [e-mail] www.serabigold.com	not amount to an invitation or inducement to
Registered Office 66 Lincoln's Inn Fields,	London, WC2A 3LH Company Number 5131528	subscribe for shares in Serabi Gold plc