Serabi Gold : reports steady gold production for the third quarter

PRESS RELEASE 22 OCTOBER 2020

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

Serabi reports steady gold production for the third quarter

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 third quarter operational and development activities in the Tapajos region of Para State, Northern Brazil. .

OPERATIONAL and DEVELOPMENT 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.
• Licença Prévia (LP) for the Coringa gold project issued by SEMAS on 8 October 2020.
• 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.
• Fourth quarter production guidance of 8,000 oz, with full year guidance of 33,000 oz.
• Regional exploration activities at Calico and Juca prospects resumed during the quarter

FINANCIAL AND CORPORATE HIGHLIGHTS

• Cash balance at end of September 2020 of US$11.0 million an increase of $1.4 million since 30 June 2020.
• US$2.5 million paid in the quarter to Equinox Gold Corp ("Equinox") in settlement of the final acquisition payment due for the Coringa gold project. Further US$1.0 million paid on 1 October 2020 following which US$7.5 million remains outstanding.
• Only US$0.5 million drawn down of convertible loan with Greenstone Resources II LP ("Greenstone"). A total of US$2.0 million drawn down at end of September 2020.

Mike Hodgson has provided interviews to BRR Media and Crux Investors where he answers questions on the Company's third quarter results and activities. These interviews can be accessed using the following links.

BRR Media - https://www.brrmedia.co.uk/broadcasts/5f8efd69c4d0076f2b942e37/serabi-gold---third- quarters-production-results

Crux Investors - https://youtu.be/xR4Wof1BToU

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 22 OCTOBER 2020

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

Key Operational Information

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	10,233	40,101
(1) (2)
Mined ore - Total	Tonnes	42,036	43,519	44,077	129,632	42,609	44,784	44,757	44,092	176,243
	Gold grade	6.54	5.85	4.84	5.73	7.47	6.72	7.14	6.69	7.00
	(g/t)
Milled ore	Tonnes	40,465	44,235	46,135	130,835	43,451	43,711	45,378	44,794	177,335
	Gold grade	6.66	5.91	4.75	5.73	7.69	6.72	6.84	6.81	7.02
	(g/t)
Horizontal
development -	Metres	2,878	3,004	3,037	5,885	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)
3. The table may not sum due to rounding.

Mike Hodgson, CEO, commented:

"Whilst the first wave of the Covid-19 pandemic reached its peak in Europe early in the second quarter of 2020, for South America the cases continued to grow into the third quarter with several mining operations across the continent forced to go into suspension. At Serabi, I believe our remoteness, usually a challenge, was our salvation. We used the second quarter to prepare as best we could and, as previously advised, to take several decisions which we hoped would maintain operations whilst minimising the health risk to our staff from of the pandemic. The on-site labour force was reduced accordingly, keeping only a core of essential workers at site, whilst we ensured there was sufficient stock of all critical supplies and consumables in case of transport and other supply chain interruptions. We introduced regular testing of staff, hunkered down, and produced what was possible within the new operational limitation and managing to stay operational throughout. Considering these challenges, I am very satisfied with the 7,224 ounces of gold produced for the third quarter. Whilst not a spectacular quarter, it remains very satisfactory given the limitation and brings the total gold production for the year to date to a little less than 25,000 ounces. Whilst below our expectation at the start of the year, all things considered, the situation could have been much worse, as it has been for many mining operations both in Brazil and other parts of the world.

"The secret of successful vein mining and maintaining production levels is optionality, which necessitates having multiple faces to call on at any moment. We mine multiple veins simultaneously, and this guarantees enough faces will have acceptable grade and volume, so we can 'cherry pick' the ore and feed the plant with the best material. During the pandemic, the reduction in crews, and services in general meant we had little choice but to shrink and simplify the operation, reducing the number of faces, thereby reducing volume and in so doing reducing the overall level of optionality. This was unavoidable, and we have had to accept a rather more hand to mouth situation in the process. In the third quarter, whilst run of mine (ROM) volumes have just kept pace with the plant capacity this has necessitated mining and processing of lower grade ore that might otherwise have been stockpiled. This reduction in stock has also meant the ore sorter has not, to date, had its planned impact, due to lack of feed. When it has been used, we are seeing its long-term potential with the year to date figures showing grades improved by a factor of 6 times with over 85% of sorted material being separated as low-grade waste. Nonetheless, this hand to mouth scenario has resulted in average mined and processed grades falling to approximately 5 g/t, significantly lower than

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 22 OCTOBER 2020

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

previous quarters. With a cut-off grade of 2.5g/t this material is still profitable, but is some way below the historic grades of 7-8 g/t.

"The combination of six months of continued mining, consuming reserves and resources, and underground and surface drilling to replace those resources and reserves suspended, has had its consequences and it would be unrealistic to think otherwise. We are now addressing this rapidly, and I am pleased to report that by the end of September 2020, operations were returning to something resembling normality something I have been able to witness for myself having just returned from a two week trip to Palito, the first time I have been able to visit for almost seven months. We are now drilling aggressively both on surface and underground and with this, along with an accelerated underground development programme, we intend to have mine output once again exceeding plant capacity, and grades and gold production return to higher levels during 2021.

"Mining activity during the third quarter continued to focus on the Ipe and Mogno veins from the Palito orebody and the -48mRL and 116mRL from the Sao Chico ore zone. However, the reduction in optionality has meant that mining has been from only four faces instead of the usual eight or so. Nevertheless, it has been pleasing that over 3,000 metres of mine development has been achieved for the second consecutive quarter. We will need to further accelerate this in 2021, but the improved rate bodes well, and we have made significant advances in improving fleet availability and utilisation that will help further. We have improved effective hours in the mine by fully equipping underground workshops, introducing fuelling and lubrication trucks, so machines stay underground at the face and do not waste time coming to surface. The change in the shift pattern and going from twice a day to three times per day blasting, along with the introduction of third afternoon shift, will all help development rates improve. What is now needed is an aggressive mine-site drill programme on surface and underground, to provide the necessary direction to this forthcoming development and, in this regard, I am pleased to say all contractors are now back at site, and the drills are turning.

"With respect to exploration, we reported, initially on 3 March 2020 and with a further news release on 11 May 2020, some very exciting exploration results especially for the work being undertaken around and to the west of the Sao Chico orebody, most notably the geophysical anomalies of Abelha, Besouro and Cicada . However, with the pandemic, exploration was put on hold from March until the end of September.

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 22 OCTOBER 2020

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

Figure 1 - Plan view of Sao Chico and geophysical anomalies to the west showing drilling locations -https://bit.ly/2E0tmvN

"Initial intersections into the Cicada prospect returned 3.00m @ 2.09g/t Au at a depth of 169 metres including a zone of 1m @ 5.42g/t Au (drill hole SCRC004). Again, a long section, which shows the location of the reverse circulation drill programme over Cicada and the step out drilling going west from Sao Chico, clearly suggests that as we continue to drill in the gap, the two areas of mineralisation could ultimately connect. Drilling of these prospects is now underway once again.

"I am also excited with the acquisition of two additional exploration tenements close to the Sao Chico mining licence area, being the Fofoca tenement to the north west, and the Sao Domingos exploration tenement to the west.

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