Strong first quarter gold production

For immediate release

15 April 2021

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

Strong first quarter gold production

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 first quarter operational and development activities 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/3atnWqP

OPERATIONAL and DEVELOPMENT HIGHLIGHTS

• First quarter gold production of 8,087 ounces, respectively a 19% and 11% improvement on gold production for Q3 and Q4 of 2020 and 16% ahead of budget driven by improving grades.
• Total ore mined during the quarter of 40,371 tonnes at 6.27 grams per tonne ("g/t") of gold, a 20% improvement in grade compared with the previous quarter.
• 41,462 tonnes of run of mine ("ROM") ore were processed through the plant from the combined Palito and S?o Chico orebodies, with an average grade of 6.27 g/t of gold.
• 3,573 metres of horizontal development completed during the quarter, the highest development rate since current operations commenced.

• Exploration drilling on the Toucano trend at S?o Domingos, five kilometres from the S?o Chico operation, intersected three mineralised structures, all hosted within a mineralised alteration zone with a true width of 50 metres. Significant intersections (previously announced) included:

• 21-SD-010 - 7.40m @ 1.95/t Au from 141.00m, including 1.90m @ 5.12g/t Au
• 21-SD-010 - 7.00m @ 9.68g/t Au from 151.55m, including 1.40m @ 26.24g/t Au
• 21-SD-010 - 7.15m @ 258.24g/t Au from 172.85m, including 3.55m @ 519.45g/t Au
• 21-SD-005 - 4.70m @ 1.42g/t Au from 76.00m
• 21-SD-005 - 0.80m @ 89.03g/t Au from 140.00m
• 21-SD-003 - 0.50m @ 6.22g/t Au from 42.00m
• 21-SD-003 - 1.80m @ 3.77/t Au from 67.25m

• Completion of a terrestrial geophysical survey at the Company's Calico prospect, with results showing a highly encouraging geophysical anomaly coincidental with a previously identified geochemical anomaly.
• A soil sample geochemical survey, undertaken in the eastern area of the S?o Domingos tenement that runs into the western part of the S?o Chico Mining License, has defined multiple areas of anomalous gold in soils. These gold in soil anomalies are coincidental with and supported by other multi-element anomalies.

FINANCIAL AND CORPORATE HIGHLIGHTS

• Completed placing of new Ordinary Shares in March 2021 raising gross proceeds of ?12.5 million. Funds to be used to
  • Redeem US$2.0 million of convertible loan notes together with accrued fees and interest.
  • Settle balance of acquisition payment for the Coringa Gold Project, which as at the date of the placing was US$3.5 million including accrued interest.
  • Part-fund the construction of the Coringa Gold Project which, when in full production, is expected to increase current group annual production by approximately 100 per cent. to approximately 80 kozpa.
  • Undertake further regional exploration, including up to c. 32,000 metres of drilling on priority targets during 2021 as part of the Company's longer term exploration objective of targeting a mineral resource above 3 million ounces of contained gold in aggregate across all of the Company's projects.
• Cash holdings at end March 2020 were US$20.5 million following the redemption of the outstanding Convertible Loan Notes held by Greenstone Resources II LP but before settlement of the remainder of the Equinox debt in respect of the acquisition of Coringa which as of 31 March 2021 was approximately US$3.6 million.

Mike Hodgson has provided an interview to BRR Media which can be accessed using the following link
https://www.brrmedia.co.uk/broadcasts/6077234c0386285386cc8aa8/serabi-gold---strong-first-quarter-gold-production/

Key Operational Information

1. Gold production figures are subject to amendment pending final agreed assays of the gold content of the copper/gold concentrate and gold dor? that is delivered to the refineries. Following reconciliation of assays with gold refineries during the first quarter of 2021, reported gold production for 2020 has been reduced by 435 ounces.
2. The table may not sum due to rounding.

Mike Hodgson, CEO, commented:

"It has been a very encouraging start to 2021 from an operational perspective, with over 8,000 ounces of gold produced, comfortably exceeding our internal forecast. After the challenges of 2020, this first quarter was expected to deliver the lowest level of gold production for 2021 so achieving a 16 per cent improvement on our internal budget represents an excellent result. Last year we experienced a reduction in average mined grades as a consequence of being somewhat restricted in mining areas available following labour reductions, so achieving a 20 per cent improvement in the mined and milled grades compared to the fourth quarter of 2020 is very pleasing. With a total of 3,573 horizontal metres achieved in the quarter, the Company also improved on the previous best level of quarterly development metres which had been set in the preceding quarter. This bodes well for the rest of the year as we continue to accelerate development and recover the metres that were unavoidably delayed in 2020 due to the COVID 19 pandemic.

"On that note, Brazil is experiencing an aggressive second wave, bringing significant challenges to the country. Several mining operations across the country are being impacted, but I am pleased to say that at the current time we are not amongst them. Serabi's combination of location and being a live-in-camp operation, has so far allowed us to maintain a controlled environment and we have kept COVID 19 infections out of the site, and able to protect the health of the on-site personnel. Our preventative actions have been critical and, going into 2021, allowed the Company to restore the on-site personnel numbers to pre-pandemic levels, which is reflected in the first quarter results.

In the Palito orebody, the Ipe and Mogno veins are bringing some excellent returns in both development and stoping. These veins are relatively young in the history of Palito and are therefore still only being developed and mined at relatively high elevations, allowing use of the existing mine infrastructure to gain access, rather than having to develop older veins at depth. The Pipocas vein continues to contribute much of the remaining run of mine ("ROM"). At the S?o Chico orebody, the deepest level being advanced is currently at -63mRL, approximately 300 metres below surface, with the intention to continue to develop the main ramp to the -78mRL. In the western part of the orebody increased production and development of the Julia vein is ongoing. Levels 116mRL, 128mRL, 139mRL, 156mRL and 170mRL have been or are in development on the Julia vein, and as this zone is relatively distant from the main central ramp, an additional western ramp extension is being developed. This western ramp will over time be extended from the 116mRL to the 0mRL. At the end of the first quarter the ramp had reached the 100mRL.

"Quarterly plant and processing performance was good, averaging over 450 tonnes per day of hard rock ore throughput.

"There was a welcome return of exploration activities during the fourth quarter of 2020 and this activity has continued into the first quarter. There are currently three surface drill rigs in operation, one at Palito, another at S?o Chico and the third at our recently acquired S?o Domingos prospect.

"Drilling results to date over the S?o Domingos prospect located only five kilometres to the west of S?o Chico have been very encouraging. It is a prospect rich in artisanal workings, past and present and where some exceptionally high-grade ore has been mined. We have identified five key prospects, but to date, the focus has centred upon the Toucano prospect. Figure 1 summarises some of the drilling results received to date.

To view the image of the S?o Domingos drill plan, please click on this link - https://bit.ly/2RgVoKp

Figure 1 - S?o Domingos drill plan and results for the Toucano trend

To view the image of the S?o Domingos drill section 1, please click on this link -https://bit.ly/3utPqnu

Figure 2 - S?o Domingos drill section 1 on the Toucano trend.

"The central part of the Toucano prospect over "section 1" has the highest concentration of drilling which has intersected three mineralised structures, all hosted within a 50 metre true width mineralised alteration zone. Hole 21-SD 010 is the current highlight where a drilled width totalling 70 metres of alteration was cut, within which multiple high-grade intersections including 9.68 g/t Au over 7.0 metres, 26.24 g/t Au over 1.40 metres and 258.24 g/t Au over 7.15 metres including 519.45 g/t Au over 3.55 metres were recorded. Visible gold was recorded in this last intersection as shown in figure 3:

To view the image of visible gold from hole 21-SD-010, please click on this link - https://bit.ly/2OplxW4

Figure 3 - Visible Gold from 21-SD-010 @ 175.40m down hole depth.

Mineralisation is already confirmed along at least a 400 metre strike length and remains open at depth and along strike with existing drilling and artisanal activity indicating a potential strike of 600 metres, and the plan is to replicate the drill coverage undertaken on the central section over that entire strike length.

"The second and third rigs are drilling the western extension of the S?o Chico orebody and the strike extensions of the Ipe and Mogno veins at Palito respectively. At S?o Chico we await further assay results but visual intersections of what appears to be the Main Vein are very encouraging.

"Regional exploration continued during the quarter focusing on two areas, the Calico/Juca prospects to the south of Palito and the Fofoca prospect that lies between S?o Domingos and S?o Chico.

"Calico is located just five kilometres from Palito, and in recent months we have completed terrestrial geophysical and geochemical surveys. Soil geochemistry defined a two kilometre by two kilometre anomaly with soil assays as high as 0.8g/t, making this anomaly, in terms of scale and signature, very comparable to the geochemical anomaly over Palito, which is a 600,000 ounce producing orebody. Such high gold in soil levels remain, to date, rare in the Tapajos. Given Calico's proximity to Palito and the fact that it shares many similar characteristics including what seems to be a similar geochemical and geophysical signature, we plan to conduct some initial first pass drilling during the coming months.

To view the image of Regional Exploration at the Palito Complex please click on this link https://bit.ly/3rMAlvR

Figure 4 - Regional Exploration at Palito Complex, showing Palito and S?o Chico, and the Calico and Fofoca prospects.

To view the detailed image of the Calico/Forquilha/Juca area please click on this link https://bit.ly/3rFWbkQ

Figure 5 - Detailed Image of the Calico/Forquilha/Juca area showing local geology as well as multiple gold and copper geochemical anomalies

To view the detailed image of Calcio please click on the following link https://bit.ly/2Z6eu6r

Figure 6 - Detailed image of Calico showing local Geology, Gold and Copper Geochemistry as well as terrestrial geophysics - IP anomalies

"At Fofoca, the geochemical results from soil sampling delineated multiple areas of anomalous gold in soils. The three-kilometre-long gold in soil "Pedro Trend" is interpreted as a strike extension of the Fofoca mineralisation in the adjacent tenement. Multiple gold in soil anomalies nearby with similar orientations, suggest parallel mineralised structures.

In addition, the one-kilometre-long gold in soil "Messias Trend" is interpreted as a strike extension to the high-grade Messias garimpo in the south east of the S?o Domingos area and also a 1 kilometre by 1.5-kilometre gold in soil anomaly of more than 30ppb, has been identified two kilometres directly west of the Cicada target.

To view the image of the Sao Domingos soil geochemistry please click on this link - https://bit.ly/3ukG0e6

Figure 7 - S?o Domingos gold and multi-element soil geochemistry.

"Following the successful equity raise in March 2021, we now have funds in place to commence the development of the underground mine at Coringa. Since March, we have been busy with finalising mobile fleet preparations and making the few key initial hires we require. We are now in possession of the necessary explosives storage and blasting permits and are hopeful of starting the portal by mid-year.

"With respect to permitting, and with the Licen?a Pr?via (LP) already in our hands, we are working our way through the conditions requested by the State Environmental Agency ("SEMAS") as part of the process to secure the Installation License (LI), which is the permit required to begin construction. One of the main conditions is geotechnical investigation work of the ground conditions below the proposed dry stack tailings pile. I am pleased to say this drilling is underway and Geoestavel, our geotechnical consultants are ready to process the results and supply SEMAS with the findings.

With the successful placing completed during March 2021, raising gross proceeds of approximately ?12.5 million, the Group is now in a very strong position and well placed to achieve its 2021 objectives. We will be undertaking an accelerated mine development programme to recover the 'lost' metres of 2020 and beyond, and this will be accompanied by an aggressive mine site and regional exploration drilling programme targeting an increase in resource inventories at Palito and S?o Chico, as well as numerous satellite prospects awaiting drilling, including S?o Domingos and Calico.

As noted in a news release issued on 1 April 2021, the completion of the Group's annual audit has been delayed, and therefore the publication of the annual financial statements, whilst the Company and its auditors make further enquiries regarding undocumented cash withdrawals amounting to approximately US$80,000 during 2020. These enquiries remain on-going, and we are unable to provide any further comment until these enquiries have been completed.

On a final note, I must comment on the tragic event which occurred on 9 March 2021, when an employee working in the Palito mine was involved in an accident in an active mining area and was fatally injured. The full investigation by all the relevant authorities into the accident remains open and at this stage we can only note that it appears that the individual was not following the appropriate safety procedures set down by the Company. I had hoped that after significant effort was put into Health and Safety training from 2019, which saw a 56% reduction in lost time injuries, we would not need to experience such tragic events. To try and further minimise the risks of a similar event occurring again, the Company has established a Health and Safety Committee which includes myself and Roney Almeida (COO) and is in the process of commissioning an independent safety audit to review all safety protocols and procedures across the entire operation.

Production Results

Total production for the first quarter of 2021 was 8,087 ounces of gold, generated from the processing of 41,462 tonnes of ore with an overall average grade of 6.27 g/t of gold. This processed ore was sourced from hard rock mined ore from the Palito and S?o Chico orebodies, supplemented by the processing of 6,108 tonnes of surface stockpiled flotation tailings grading approximately 2.2 g/t gold. Mined tonnage for the quarter totalled 40,371 tonnes with a grade of 6.27 g/t of gold. Gold production for this quarter represents a 19% and 11% improvement on third and fourth quarters of 2020 respectively.

On 31 March 2020, there were coarse ore stocks of approximately 5,000 tonnes of ore with an average grade of 2.5 g/t of gold. This stockpile continues to be consumed slowly and used as a 'top-up' to ROM ore to keep the plant full.

A total of 3,573 metres of horizontal development has been completed during the quarter, of which 1,975 metres was ore development. The balance is the ramp, cross cuts and stope preparation development.

2021 Production Guidance

The Company maintains its previously stated guidance that production for 2021 from the current Palito Complex operations will be between 33,000 and 36,000 ounces with forecast production in 2022 then increasing to approximately 45,000 ounces.

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.

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.

GLOSSARY OF TERMS

Assay Results
The majority of the assay results reported within this release are those provided by the Company's own on-site laboratory facilities at Palito and have not yet 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 results without sufficient duplicates from an appropriately certificated laboratory.

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