Serabi Gold : delivers improving gold production for the fourth quarter

PRESS RELEASE 15 JANUARY 2021

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

Serabi delivers improving gold production for fourth quarter 2020

Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian focused gold mining and development company, is pleased to provide the results and a review of its fourth quarter operational and development activities in the Tapajos region of Para State, Northern Brazil.

OPERATIONAL and DEVELOPMENT HIGHLIGHTS

• Fourth quarter gold production of 7,254 ounces, a small improvement on the third quarter and resulting in an annual total of 32,003 ounces.
• Production for December 2020 exceeded 3,000 ounces, the best monthly result since the end of April 2020.
• Total ore mined during the quarter of 46,275 tonnes at 5.24 grams per tonne ("g/t") of gold.
• 43,440 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 5.27 g/t of gold, an improvement of 9% compared with Q3.
• 3,353 metres of horizontal development completed during the quarter, the highest since operations commenced, and a 10% increase on the previous quarter. Over 12,200 metres were developed during the year.
• Mine site and regional exploration activities resumed in the fourth quarter. A 32,000 metres drill programme is planned for 2021 with activity underway at the recently acquired Sao Domingos exploration tenement, immediately to the west of Sao Chico as well as Palito.
• Geophysical surveys commenced and remain ongoing at the Company's Calico prospect.
• The much-anticipated award of the Licença Prévia (LP) for the Company's Coringa Gold project, was issued by the state environmental agency ("SEMAS") on 8 October 2020

FINANCIAL AND CORPORATE HIGHLIGHTS

• Cash totalled US$8.1 million at the end of December 2020 (including the initial outstanding proceeds from a December gold sale of US$1.5 million).
• US$3.0 million paid in the quarter to Equinox Gold Corp ("Equinox") under the staged payment plan for the Coringa gold project. Further US$1.0 million paid on 1 January 2021 following which US$4.5 million remains outstanding. Which is planned to have been settled in full during the second quarter of 2021.

No funds drawn down in the quarter from the convertible loan arrangements with Greenstone Resources II LP ("Greenstone") and a total of only US$2.0 million had been drawn down at the end of December 2020.

2021 PRODUCTION GUIDANCE

• With the need to re-establish optionality in the operations by opening up additional mine faces during the early part of 2021, the Company anticipates that production for 2021 from the current Palito Complex operations will be between 33,000 and 36,000 ounces with production in 2022 then increasing to approximately 45,000 ounces.

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 15 JANUARY 2021

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

Mike Hodgson has provided interviews to BRR Media and Crux

BRR Media -https://www.brrmedia.co.uk/broadcasts-embed/600065a659cf24171a328438/copied-from-5ee24bc35e278421d06982fe/?popup=true

Crux Investors -https://youtu.be/jtItFjCUNL4

Key Operational Information

SUMMARY PRODUCTION STATISTICS FOR 2020 AND FOR 2019

		Qtr 1	Qtr 2	Qtr 3	Qtr 4	YTD	Qtr 1	Qtr 2	Qtr 3	Qtr 4	Total
		2020	2020	2020	2020	2020	2019	2019	2019	2019	2019
Gold production	Ounces	9,020	8,504	7,224	7,254	32,003	10,164	9,527	10,187	10,233	40,101
(1) (2)
Mined ore - Total	Tonnes	42,036	43,519	44,097	46,275	175,928	42,609	44,784	44,757	44,092	176,243
	Gold grade	6.54	5.85	4.84	5.24	5.59	7.47	6.72	7.14	6.69	7.00
	(g/t)
Milled ore	Tonnes	40,465	44,235	46,135	43,440	174,276	43,451	43,711	45,378	44,794	177,335
	Gold grade	6.66	5.91	4.75	5.27	5.62	7.69	6.72	6.84	6.81	7.02
	(g/t)
Horizontal
development -	Metres	2,878	3,004	3,037	3,353	12,272	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 39,207 tonnes of flotation tails at a grade of 3.21g/t (2019: 29,976 tonnes @ 4.52g/t).
3. The table may not sum due to rounding.

Mike Hodgson, CEO, commented:

"It goes without saying that 2020 has presented unique challenges, so in that context producing 7,254 ounces in the final quarter to bring annual gold production for the year to over 32,000 ounces was a success. Importantly with over 3,000 ounces being generated in December alone, our best month's production since April, I think we can see the benefits of a return to normality and can look forward to 2021 with great optimism. Whilst we did forecast higher gold production for 2020, pre-pandemic, I believe all things considered, the overall result given the challenges faced has been an excellent outcome. The gold not produced during 2020, has not been lost. It still remains in the ground and will therefore be produced in the future and with the continued strength of the gold price may generate better revenues.

"As I reported last quarter, South America saw the first wave of the pandemic peaking in the third quarter and into the fourth quarter with several mining operations across the continent facing significant challenges. I believe a combination of our location, locking down the camps and initiating mass testing early in the pandemic really helped us maintain operations, whilst minimising the health risk to our staff. Our preventative actions have been critical and has allowed us to restore the on-site personnel numbers to pre-pandemic levels during the fourth quarter. Furthermore, I am pleased to say we have been COVID-free since September.

"During the second and third quarters mining activities had to be reduced in order to lower the numbers of personnel at site, this resulted in lower mine output, which barely met plant capacity and surface stockpiles were consequently rundown. This reduction in mine output unfortunately diminished the benefit we had planned from our ore sorter. Nevertheless, when put to use, the performance of the ore sorter has been remarkable. Over the year, it has

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 15 JANUARY 2021

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

processed over 23,000 tonnes of feed at an average grade of 2.03 g/t Au. The sorter discarded approximately 20,600 tonnes of low-grade material (~0.6g/t of gold) leaving a high-grade product of 2,818 tonnes at 12 g/t of gold. The discarded 20,600 tonnes would have previously been processed through the plant, consuming precious plant capacity. With a post crushing plant process cost of approximately $35/tonne, and excluding tailings process costs, it is clear the sorter has already made a significant contribution to its initial cost, albeit with its restricted use. With development rates climbing and a ramp up in mining activity during the first half of 2021, we hope to see the real benefits from the ore-sorter during the second half of 2021 that had originally been expected in 2020.

"As mentioned, mining rates have improved during this final quarter and over the coming months this will improve optionality and with that, a continued improvement in production grades. The Ipe, Mogno and Pipocas veins continued to contribute the majority of the production tonnage from the Palito orebody. In the Sao Chico orebody, levels -48mRL and -63mRL, the deepest levels were worked, with increased levels of mining from the Julia vein on levels 116mRL and 130mRL. The increase in mining activity has also resulted in a very welcome improvement in development rates. The fourth quarter saw the highest horizontal development rates since operations commenced and was the third consecutive quarter where rates exceeded 3,000 metres per month. These improved development rates have come about with improved fleet availability and utilisation, but principally the introduction of a third underground shift.

"The fourth quarter has also seen the welcome return of exploration activities, with work focusing in three locations namely, the Palito and Sao Chico mine sites, and the newly acquired Sao Domingos prospect with three rigs arriving late in the quarter.

"The first rig was deployed to Sao Chico to pick up the drilling of the 'Western' extension of the Sao Chico orebody and the initial results to date have been very encouraging.

Figure 1 - Plan view of Sao Chico and geophysical anomalies to the west showing selected drilling results -https://bit.ly/2XElKFV

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 15 JANUARY 2021

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

"The second rig has been deployed at the newly acquired Sao Domingos/Fofoca exploration tenement, which lies immediately to the west of Sao Chico. The Sao Domingo tenement is rich in multiple artisanal workings, past and present and where some exceptionally high-grade ore has been mined. Our initial exploration activities are centred upon some of these artisanal workings. Two stand out prospects, Toucano and Atacadao, typify this and are of particular interest. Toucano is a series of artisanal open pits covering a strike length of some 600 metres, which is reported to have produced exceptional grades, some of which have been mined within a 20-metre-wide mineralised zone to depths of 40 metres. At Atacadao, a 11-hole drill programme was completed in 2006, testing the mineralisation under the artisanal workings. The results of this modest programme intersected high grade gold mineralisation ranging from 3 to 60g/t gold at an average true width of between 0.2 to 0.8 metres.

Figure 2 - map showing expanded Jardim do Ouro tenement holdings including new tenements acquired - https://bit.ly/3oEUCT4

"A third rig has recently commenced drilling strike extensions beyond the mine limits of the Palito orebody.

"Regional exploration has also been restarted, with geochemical and geophysical works focusing on Calico and Juca prospects to the south of Palito.

"I look forward to updating the market with all these recent exploration activities in the next weeks.

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