Unaudited interim results for the three and six month

For immediate release

31 August 2022


Serabi Gold plc

(“Serabi” or the “Company”)

Unaudited interim results for the three and six month periods ended 30 June 2022


Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, today releases its unaudited results for the three and six month periods ended 30 June 2022.


A copy of the full interim statements together with commentary can be accessed on the Company’s website using the following link – https://bit.ly/3CFrUvdrUvd


Financial Highlights

  • Gold production for the second quarter of 8,419 ounces an improvement on the first quarter of the year (7,061 ounces) of 19 per cent. Gold production for the first six months of 15,480 ounces.
  • Cash held at 30 June 2022 of US$9.8 million (31 December 2021 : US$12.2 million) with a further US$1.9 million from a delayed gold sale.
  • Post tax profit for the six month period of US$2.1 million, a decrease compared with 2021(US$6.3 million) reflecting US$1.3 million revenue reduction and cost increases for fuel and power and significantly enhanced underground drilling programme.
  • Earnings per share of 2.74 cents compared with 9.06 cents for the same six month period of 2021.
  • EBITDA of US$5.2 million (2021: US$11.1 million).
  • Net cash outflow from operations for the six month period (after mine development expenditure of US$1.85million) of US1.55 million (2021: US$6.47 million inflow).
  • Average gold price of US$1,869 per ounce received on gold sales during the six month period. (2021: US$1,807).
  • Cash Cost for the three month period to June 2022 of US$1,395 per ounce (Q1 2022 : US$1,438 per ounce).
  • All-In Sustaining Cost for the three month period to June 2021 of US$1,637 per ounce (Q1 2022 : US$1,810 per ounce) represents a 10% improvement compared to Q1 2022.
  • US$5.0 million unsecured twelve month loan taken out in May 2022 to provide additional short-term working capital.

Key Financial Information

  6 months to

30 June 2022


6 months to

30 June 2021


3 months to

30 June 2022


3 months to

30 June 2021


Revenue 31,200,863 32,530,473 18,315,843 16,701,661
Cost of sales (23,268,585) (18,357,673) (13,995,113) (9,381,506)
Gross operating profit 7,932,278 14,172,800 4,320,730 7,320,155
Administration and share based payments (2,766,776) (3,122,460) (1,207,634) (1,222,169)
EBITDA 5,165,502 11,050,340 3,113,096 6,097,986
Depreciation and amortisation charges (2,923,245) (2,716,607) (1,751,357) (1,552,805)
Operating profit before finance and tax 2,242,257 8,333,733 1,361,739 4,545,181
Profit after tax 2,072,939 6,352,653 343,336 4,445,747
Earnings per ordinary share (basic) 2.74c 9.06c 0.45c 6.34c
Average gold price received (US$/oz) US$1,869 US$1,810 US$1,870 US$1,816
      As at

30 June



As at

31 December 2021


Cash and cash equivalents     9,819,882 12,217,751
Net assets     84,159,135 79,885,501
Cash Cost and All-In Sustaining Cost (“AISC”)        
  6 months to

30 June


3 months to

30 June


3 months to

31 March


12 months to 31 December 2021
Gold production for cash cost and AISC purposes 15,480 ozs 8,419 ozs 7,061 ozs 33,848 ozs
Total Cash Cost of production (per ounce) US$1,415 US$1,395 US$1,438 US$1,090
Total AISC of production (per ounce) US$1,716 US$1,637 US$1,810 US$1,429

Clive Line, CFO of Serabi commented,


“It is pleasing to report a reduction in cash costs and all-in-sustaining costs in the second quarter compared with the first quarter, driven by improved production levels and despite cost inflation pressures that are being felt worldwide.


“Compared with the same six-month period in 2021, we have incurred a 46 per cent increase in spending on underground drilling to grow the mineral resource inventory and build long term mining plans, a 48 per cent increase in power costs which includes diesel for generators and grid supplied electricity as well as increased costs of reagents and other consumables across both the mining and processing activities.


“In the first quarter of this year, we experienced a net cash outflow from operation (including mine development) of US$2.5 million, driven by the lower production in the quarter. With the 19% improvement in production achieved in the second quarter, the net cash generation from operations was US$780,000 which is a satisfying improvement in such a short period. As well as the continued investment in underground drilling to grow the mineral resource at Palito, we have continued to update the mining fleet with an additional US$1.5 million spent on capital equipment in the second quarter compared with less than $400,000 in the same period of 2021 and we continue to progress the mine development at Coringa. This capital programme together with the underground drilling activities are the platform for building the future production growth and complement the continued potential presented by the regional exploration that is attracting external interest.”


“Whilst production of 8,419 ounces of gold for the three months to June represented an improvement of 1.358 ounces compared with the quarter to 31 March, sales in the last three months were 9,427 ounces. This sales growth is reflected in the higher level of production costs compared to the first quarter of 2022. Whilst some of this increase reflects the release of inventory, the balance reflects the increased unit costs of consumable items. Headcount has been reduced since the start of 2022 by seven per cent although the costs savings associated with these reductions will only be fully realised in future periods.”


“The cash position remains strong, with cash held at 30 June 2022 of US$9.8 million with a further US$1.9 million received shortly after the month end for a sale of copper/gold concentrate following a small delay to sailing schedules.”



The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

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




Serabi Gold plc  
Michael Hodgson Tel: +44 (0)20 7246 6830
Chief Executive Mobile: +44 (0)7799 473621
Clive Line Tel: +44 (0)20 7246 6830
Finance Director Mobile: +44 (0)7710 151692
Email: contact@serabigold.com  
Website: www.serabigold.com  
Beaumont Cornish Limited

Nominated Adviser and Financial Adviser

Roland Cornish / Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP

Joint UK Broker

Ross Allister / Alexander Allen Tel: +44 (0)20 7418 9000
Tamesis Partners LLP

Joint UK Broker

Charlie Bendon / Richard Greenfield Tel: +44 (0)20 3882 2868

Financial PR

Gordon Poole / Emily Hall Tel: +44(0) 20 3757 4980


See www.serabigold.com for more information and follow us on twitter @Serabi_Gold


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.


The following information, comprising, the Income Statement, the Group Balance Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash Flow, is extracted from the unaudited interim financial statements for the three and six months to 30 June 2022.

Statement of Comprehensive Income

For the three and six month periods ended 30 June 2022

    For the six months ended
30 June
For the three months ended
30 June
    2022 2021 2022 2021
(expressed in US$) Notes (unaudited) (unaudited) (unaudited) (unaudited)
Revenue   31,200,863 32,530,473 18,315,843 16,701,661
Cost of sales   (23,268,585) (18,357,673) (13,995,113) (9,381,506)
Depreciation and amortisation charges   (2,923,245) (2,716,607) (1,751,357) (1,552,805)
Total cost of sales   (26,191,830) (21,074,280) (15,746,470) (10,934,311)
Gross profit   5,009,033 11,456,193 2,569,373 5,767,350
Administration expenses   (2,596,017) (3,006,414) (1,150,064) (1,163,820)
Share-based payments   (213,922) (136,200) (101,797) (68,100)
Gain on asset disposals   43,163 20,154 44,227 9,751
Operating profit   2,242,257 8,333,733 1,361,739 4,545,181
Foreign exchange gain / (loss)   139,105 (43,743) (37,481) (62,757)
Finance expense 2 (66,525) (340,558) (64,686) (125,015)
Finance income 2 152,624 47,844
Profit before taxation   2,467,461 7,949,432 1,307,416 4,357,409
Income tax expense 3 (394,522) (1,596,779) (964,080) 88,338
Profit after taxation   2,072,939 6,352,653 343,336 4,445,747
Other comprehensive income (net of tax)          
Exchange differences on translating foreign operations   1,986,773 2,227,950 (6,872,683) 5,700,308
Total comprehensive profit / (loss) for the period(1)   4,059,712 8,580,603 (6,529,347) 10,146,055
Profit per ordinary share (basic) 4 2.74c 9.06c 0.45c 6.34c
Profit per ordinary share (diluted) 4 2.68c 8.75c 0.44c 6.12c

(1) The Group has no non-controlling interests, and all losses are attributable to the equity holders of the parent company.






Balance Sheet as at 30 June 2022

(expressed in US$)    

As at
30 June 2022 (unaudited)

As at
30 June 2021

As at
31 December 2021
Non-current assets          
Deferred exploration costs     39,608,630 31,956,193 34,857,905
Property, plant and equipment     28,254,138 27,277,248 27,575,335
Right of use assets     4,801,117 2,951,714 2,600,631
Taxes receivable     961,290 747,499 1,224,360
Deferred taxation     685,650 1,022,227 605,125
Total non-current assets     74,310,825 63,954,881 66,863,356
Current assets          
Inventories     7,724,300 7,354,165 6,973,207
Trade and other receivables     4,952,331 2,057,413 2,307,458
Prepayments and accrued income     3,883,897 2,376,924 2,316,669
Cash and cash equivalents     9,819,882 18,121,392 12,217,751
Total current assets     26,380,410 29,909,894 23,815,085
Current liabilities          
Trade and other payables     5,626,540 7,418,052 5,624,511
Interest bearing liabilities     5,726,808 238,017 290,060
Accruals     399,970 298,758 397,400
Total current liabilities     11,753,328 7,954,827 6,311,971
Net current assets     14,627,092 21,955,067 17,503,114
Total assets less current liabilities     88,937,917 85,909,948 84,366,470
Non-current liabilities          
Trade and other payables     466,292 91,040 427,663
Interest bearing liabilities     1,152,087 673,971 444,950
Deferred tax liability     381,483 172,837 861,430
Derivative financial liabilities     12,871 412,669 165,495
Provisions     2,766,049 1,534,510 2,581,431
Total non-current liabilities     4,778,782 2,885,027 4,480,969
Net assets     84,159,135 83,024,921 79,885,501
Share capital     11,213,618 11,213,618 11,213,618
Share premium reserve     36,158,068 36,158,068 36,158,068
Option reserve     1,289,270 1,309,244 1,075,348
Other reserves     14,472,400 12,151,873 13,694,731
Translation reserve     (66,661,397) (61,777,008) (68,648,170)
Retained surplus     87,687,176 83,969,126 86,391,906
Equity shareholders’ funds     84,159,135 83,024,921 79,885,501

The interim financial information has not been audited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards (“IFRS”) this announcement itself does not contain sufficient financial information to comply with IFRS. The Group statutory accounts for the year ended 31 December 2021 prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 have been filed with the Registrar of Companies. The auditor’s report on these accounts was unqualified. The auditor’s report did not contain a statement under Section 498 (2) or 498 (3) of the Companies Act 2006.

Statements of Changes in Shareholders’ Equity

For the six month period ended 30 June 2022


(expressed in US$)              
(unaudited) Share
Share option reserve Other reserves (1) Translation reserve Retained Earnings Total equity
Equity shareholders’ funds at 31 Dec 2020 8,905,116 21,905,976 1,173,044 10,254,048 (64,004,958) 79,514,298 57,747,524
Foreign currency adjustments 2,227,950 2,227,950
Profit for the period 6,352,653 6,352,653
Total comprehensive income for the period 2,227,950 6,352,653 8,580,603
Transfer to taxation reserve 1,897,825 (1,897,825)
Share Premium 2,308,502 2,308,502
Share Issued during period 14,252,092 14,252,092
Share incentives expense   136,200 136,200
Equity shareholders’ funds at 30 June 2021 11,213,618 36,158,068 1,309,244 12,151,873 (61,777,008) (83,969,126) 83,024,921
Foreign currency adjustments (6,871,162) (6,871,162)
Profit for the period 3,597,311 3,597,311
Total comprehensive income for the period (6,871,162) 3,597,311 (3,273,851)
Transfer to taxation reserve 1,542,858 (1,542,858)
Share incentives lapsed (368,327) 368,327
Share incentives expense 134,431 134,431
Equity shareholders’ funds at 31 Dec 2021 11,213,618 36,158,068 1,075,348 13,694,731 (68,648,170) 86,391,906 79,885,501
Foreign currency adjustments 1,986,773 1,986,773
Profit for the period 2,072,939 2,072,939
Total comprehensive income for the period 1,986,773 2,072,939 4,059,712
Transfer to taxation reserve 777,669 (777,669)
Share incentives expense 213,922 213,922
Equity shareholders’ funds at 30 June 2022 11,213,618 36,158,068 1,289,922 14,472,400 (66,661,397) 87,687,176 84,159,135

(1) Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$14,110,939 (31 December 2021: merger reserve of US$361,461 and a taxation reserve of US$13,333,270).

Cash Flow Statement

For the three and six month periods ended 30 June 2022

  For the six months
30 June
For the three months
30 June
  2022 2021 2022 2021
(expressed in US$) (unaudited) (unaudited) (unaudited) (unaudited)
Operating activities        
Post tax (loss) / profit for period 2,072,939 6,352,653 343,336 4,445,747
Depreciation – plant, equipment and mining properties 2,923,245 2,716,607 1,751,357 1,552,805
Net financial expense (225,204) 384,301 54,323 187,772
Provision for taxation 394,522 1,596,779 964,080 (88,338)
Gain / (Loss) on Sale (43,163) (20,154) (44,227) (9,751)
Share-based payments 213,922 136,200 101,797 68,100
Taxation Paid (131,462) (130,701) (3,813) (130,701)
Interest Paid (51,838) (1,282,833) (31,612) (1,071,653)
Foreign exchange (loss) / gain (211,323) 131,590 (71,395) 71,968
Changes in working capital        
  (Increase)/decrease in inventories (394,806) (99,292) 1,504,893 (199,941)
  (Increase) in receivables, prepayments and accrued income (3,912,322) (845,173) (2,164,981) (1,603,731)
  (Decrease)/increase in payables, accruals and provisions (339,994) 90,892 (657,737) 18,195
Net cash inflow from operations 294,516 9,030,869 1,746,021 3,240,472
Investing activities        
Purchase of property, plant and equipment and assets in construction (2,490,502) (741,303) (1,521,615) (364,151)
Mine development expenditure (1,849,462) (2,558,341) (783,577) (1,485,188)
Geological exploration expenditure (692,980) (1,799,969) (223,730) (999,128)
Pre-operational project costs (2,266,252) (1,265,891) (1,124,670) (604,283)
Acquisition payment for subsidiary (5,500,000) (2,500,000)
Acquisition of other property rights (101,386) (1,836)
Proceeds from sale of assets 64,762 25,081 51,605 12,842
Net cash outflow on investing activities (7,234,434) (11,941,809) (3,601,987) (5,941,744)
Financing activities        
Issue of Ordinary share capital (net of costs) 16,560,593
Issue of warrants 333,936 333,936
Drawdown of third party loan 4,923,586 4,923,586
Repayment of convertible loan (2,000,000) (2,000,000)
Payment of convertible loan arrangement fee (300,000) (300,000)
Payment of finance lease liabilities (502,225) (263,278) (314,908) (85,545)
Net cash inflow from financing activities 4,421,361 14,331,251 4,608,678 4,646,034
Net (decrease) / increase in cash and cash equivalents (2,518,557) 11,420,311 2,752,712 1,944,762
Cash and cash equivalents at beginning of period 12,217,751 6,603,620 6,932,625 15,945,065
Exchange difference on cash 120,688 97,461 134,545 231,565
Cash and cash equivalents at end of period 9,819,882 18,121,392 9,819,882 18,121,392


1. Basis of preparation
These unaudited interim condensed consolidated financial statements are for the three and six month periods ended 30 June 2022. Comparative information has been provided for the unaudited three and six month periods ended 30 June 2021 and, where applicable, the audited twelve month period from 1 January 2021 to 31 December 2021. These condensed consolidated financial statements do not include all the disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2021 annual report.
The condensed consolidated financial statements for the periods have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and the accounting policies are consistent with those of the annual financial statements for the year ended 31 December 2021 and those envisaged for the financial statements for the year ending 31 December 2022.

Accounting standards, amendments and interpretations effective in 2022

The Group has not adopted any standards or interpretations in advance of the required implementation dates.

The following Accounting standards came into effect as of 1 January 2022


  Effective Date
Property, Plant and Equipment – Proceeds before Intended Use (amendments to IAS 16) 1 January 2022
Onerous Contracts- Cost of Fulfilling a Contract (Amendments to IAS 37) 1 January 2022
Annual Improvements to IFRS Standards 2018-2020 1 January 2022
Reference to Conceptual Framework (Amendments to IFRS 3) 1 January 2022


The adoption of these standards has had no effect to date on the financial results of the Group. The updated standard Property, Plant and Equipment – Proceeds before Intended Use (amendments to IAS 16) which is effective 1 January 2022 will impact the Group as it develops the Coringa mine. At such time as the Group generates revenues from the processing of ore from Coringa in future periods, this will be reflected as operational revenue of the business and the Group will account for the costs incurred in relation to this income as a cost of sale. Previously, under IAS16, the sales would have been treated as a deduction from the cost of bringing an item (or items) of property, plant and equipment to the location and condition necessary to be capable of operating in the manner intended by management.


There are a number of standards, amendments to standards, and interpretations which have been issued that are effective in future periods and which the Group has chosen not to adopt early.


  Effective Date
IFRS 17 Insurance Contracts, including Amendments to IFRS 17 1 January 2023
Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and Classification of Liabilities as Current or Non-current – Deferral of Effective Date 1 January 2023

These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

(i) Going concern

At 30 June 2022, the Group held cash of US$9.8 million with a further receipt of US$1.9 million for a sale of copper/gold concentrate due to be received in early July having been delayed from June following a small delay to sailing schedules.  The reduction in cash reflects the continued development expenditure of Coringa during the quarter].

The Group has advised that in light of the issues encountered in the mining of the Julia Vein at São Chico, it has reduced its production guidance for the remainder of 2022 whilst it reconfigures the Julia Vein for selective mining and undertakes further evaluation and development of other sectors of the São Chico deposit.  This will reduce revenue for the rest of 2022 and will therefore impact on the ability of the Group to generate positive cash flow for the rest of 2022.  Management have already taken actions to reduce some of the operational costs and is evaluating further options to generate additional gold production to improve cash generation. This includes the transportation and processing of high grade ore recovered from the current mine development being undertaken at Coringa.  The first trucks began transporting ore during May 2022.  In addition, in the short term, the Group has negotiated a US$5 million unsecured loan with a Brazilian bank for an initial 12 month period to ease any immediate working capital pressure.  These funds were received during May 2022.

The Directors prepared, in March 2022, an operational plan and cash flow forecast based on their best judgement of the operational performance of the Group for the next 18 months using economic assumptions that the Directors consider are reasonable in the current global economic climate.  This plan assumes, inter alia, that during the rest of 2022 and for 2023, the Group will be successful in mining higher levels of gold from its Palito orebody than it originally planned for and will continue to generate a limited level of gold production from São Chico, albeit at lower levels than 2021 and those previously planned for 2022, due to the issues encountered at the Julia Vein. In addition, the Group will, as an interim measure, transport Coringa ore for processing at the Palito Complex. To manage costs, discretionary expenditures will be minimised including further regional exploration drilling which has now been suspended.

Although the Group’s operational plan incorporates the processing of some of the ore recovered from the planned development of the Coringa mine at the Palito complex, the Group’s plan is to construct a gold processing plant at Coringa. The estimated cost of the full-scale development of the Coringa project reported in the Coringa PEA, including necessary mine development, the erection of a gold processing plant and other site infrastructure was estimated to be approximately US$24.7 million before sustainable positive cash flow is achieved.

While the Group plans to restrict development activity to a level that can be supported by available financial resources, in order to fund the longer term continued development of Coringa including a gold processing facility, and repay the Group’s debt, which comprises a 12 month, US$5 million bank loan maturing in May 2023, the Group intends to obtain additional funding. This funding may be generated from a variety of sources which could include a combination of bank debt, royalty, streaming of gold and copper revenues, new equity capital and cash flow from the current operations.  The Group has been successful in raising funding as and when required in the past and the Directors consider that the Group continues to have strong support from its major shareholders who have been supportive of and provided additional funding when required on previous occasions.

As such, whilst the expenditure on the development of Coringa will be incurred over a period of nine to twelve months it is the intention of management that firm commitments for the majority of this funding must have been secured and there is strong confidence that the balance of any remaining financing requirement is available prior to commencing the full-scale development.

Whilst recognising the uncertainty that has been created by the need to adjust the operational plan during the first half of the year and the lower levels of gold production that are now forecast as a result, the Directors and management are confident of their ability to raise additional finance and that the Group’s operations will perform at the levels that they now anticipate over the next 18 month period. However, an inability to raise new finance, unplanned interruptions or further reductions in gold production, unforeseen reductions of the gold price or appreciation of the Brazilian Real could adversely affect the level of free cash flow available to the Group. 

These material uncertainties may cast significant doubt upon the Group’s ability to continue as a going concern and therefore its ability to settle its debts and realise its assets in the normal course of business. Notwithstanding these material uncertainties, the Directors have a reasonable expectation that the Group has adequate resources to continue in existence for the foreseeable future and have concluded it is appropriate to adopt the going concern basis of accounting in the preparation of the financial statements. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

2.        Finance expense and income

  6 months ended

30 June 2022


6 months ended

30 June 2021 (unaudited)

3 months ended

30 June 2022 2021


3 months ended

30 June 2021 (unaudited)

  US$ US$ US$ US$
Interest expense on convertible loan (47,502)
Interest expense on mineral property acquisition liability (23,854) (5,831)
Interest expense on short term loan (53,859) (53,859)
Interest expense on short term trade loan (12,666) (10,827)
Loss in respect of non-substantial modification (40,469) (40,469)
Loss on revaluation of warrants (78,733) (78,733)
Amortisation of arrangement fee for convertible loan (150,000)
  (66,525) (340,558) (64,686) (125,015)
Gain on revaluation of warrants 152,624 47,844
Net finance income /(expense) 86,099 (340,558) (16,842) (125,015)

3.         Taxation

The Group has recognised a deferred tax asset to the extent that the Group has reasonable certainty as to the level and timing of future profits that might be generated and against which the asset may be recovered. The deferred tax liability arising on unrealised exchange gains has been eliminated in the six-month period to 30 June 2022 reflecting the stronger Brazilian Real exchange rate at the end of the period and resulting in deferred tax income of US$199,222 (six months to 30 June 2021 – charge of US$1,930,025).

The Group has also incurred a tax charge in Brazil for the six month period of US$593,744 (six months to 30 June 2021 – US$889,802).

4.        Earnings per Share

         6 months ended 30 June 2022
6 months ended 30 June 2021
3 months ended 30 June 2022
3 months ended 30 June 2021
Profit attributable to ordinary shareholders (US$) 2,072,939 6,352,653 343,336 4,445,747
Weighted average ordinary shares in issue 75,734,551 70,123,225 75,734,551 70,123,225
Basic profit per share (US cents) 2.74c 9.06c 0.45c 6.34c
Diluted ordinary shares in issue (1) 77,484,551 72,639,895 77,484,551 72,639,895
Diluted profit per share (US cents) 2.68c 8.75c 0.44c 6.12c

(1) Based on 1,750,000 options vested and exercisable as at 30 June 2022 (30 June 2021: 2,516,670 options)

5.        Post balance sheet events

Subsequent to the end of the period, there has been no item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to affect significantly the continuing operation of the entity, the results of these operations, or the state of affairs of the entity in future financial periods.



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 35 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.


Assay Results

The assay results reported within this release include those provided by the Company’s own on-site laboratory facilities at Palito which may not have 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. Based on the results of this work, the Company’s management are satisfied that the Company’s own facility shows good correlation with independent laboratory facilities. 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 but only use assay results reported by an appropriately certificated laboratory.


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.



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