Release of Q1 Financial Results and Managment Discussion and Analysis

SERABI MINING plc

("Serabi" or "the Company")

Serabi Mining plc (AIM:SRB, TSX:SBI and SBI.WT), the Brazilian focused gold exploration company, advises that it has today published its unaudited financial results for the first quarter of 2011 and at the same time has also published its Management's Discussion and Analysis for the same period.  Both documents, together with this announcement, have been posted on the Company's website at www.serabimining.com and are also available on SEDAR at www.sedar.com.  The full text of both the financial results and Management's Discussion and Analysis are also available by following the links contained in this press release.

Financial Highlights

For the three month period ended 31 March 2010 the Company recorded a net loss of US$742,642 (1.65 US cents per share) compared to a net loss of US$953,599 (2.91 US cents per share) for the comparative period last year.  The decrease in the loss reflects reduced administrative costs and a foreign exchange gain recorded during the period of US$187,297, compared with a foreign exchange loss in the comparative period of US$1,180.  At the same time in the corresponding period in 2009, the Company had limited gold production which yielded a gross profit of US$78,866.  There has been no mining operation during the three month period ended 31 March 2011 and as a result the Company incurred a gross loss of US$183,822.

Operational Highlights

Corporate Highlights

• Following the completion of a private placement of 10,070,000 Special Warrants on 2 December 2010, for gross proceeds of C$5,538,500, the Company completed on 30 March 2011 an Initial Public Offering ("IPO") of 9,000,000 units in Canada at a price of C$0.55 per share for gross proceeds of C$4.95 million. 

• Each of the 9,000,000 units were comprised of one ordinary share and one half warrant of one ordinary share purchase warrant of the Company, with each warrant being exercisable to acquire one Ordinary Share at an exercise price of C$0.75 until 2 December 2012. 

• The completion of the IPO and the listing of the Ordinary Shares and Warrants on the TSX on 30 March also resulted in the automatic exercise of the 10,070,000 previously issued special warrants of the Company in December 2010. 

• The appointment on 30 March 2011 of Messrs Sean Harvey and Melvyn Williams and Dr Doug Jones as independent directors of the Company.

Outlook

Serabi's short term strategy for the JDO Project (phase 1) to be followed for the next 6 months continues to focus on 'head-frame' exploration with the objective of discovering more Palito style deposits.  In further detail this will involve:

�         Continuing with the 8,100 metre discovery drilling programme into 9 high priority targets within 3km of the plant (2,700 metres of this programme had been drilled by the end of April)

�         Commencing a thorough mine-site deep geochemistry Geochemical/Trenching/Auger program.

�         The initial phase one of the exploration budget is in the region of US$8 million and is aimed to investigate the mine site targets as well as some of the immediate surrounding tenements (within 20km of the operation). 

SERABI MINING PLC

Condensed Consolidated Statements of Comprehensive Income

 (1) All revenue and expenses arise from continuing operations.

(2) The Group has no non-controlling interests and all income / (losses) are attributable to the equity holders of the Parent Company.           

SERABI MINING PLC

Condensed Consolidated Balance Sheets

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 2010, prepared under IFRS as adopted in the EU and with IFRS and their interpretations adopted by the International Accounting Standards Board have been filed with the Registrar of Companies. The auditors' report on these accounts was unqualified but did contain an Emphasis of Matter with respect to the ability of the Company and the Group regarding the future availability of project finance.  The auditors' report did not contain a statement under Section 498 (2) or 498 (3) of the Companies Act 2006.

SERABI MINING PLC

Condensed Consolidated Cash Flow Statements

Enquiries:

Copies of this release are available from the Company's website at www.serabimining.com

Forward-looking statements

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Qualified Persons Statement

The information contained within this announcement has been reviewed and verified by Michael Hodgson, CEO of the Company.   Mr Hodgson is an Economic Geologist by training with over 25 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, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining. Oil and Gas Companies dated March 2006.

ENDS