Serabi Mining plc (AIM:SRB) announces ongoing exploration success at the Ruari's Ridge and Chico do Santo projects, which now provides a basis for detailed evaluation and preliminary mining to commence during the second half of the year, with the potential for full scale mining to start in 2008.

With increasing facilities coming into place, exploration and evaluation has been escalating during the past year across the Jardim do Ouro district, the area immediately adjacent to Serabi's Palito gold mine.  Resulting from this ongoing drill and trench results from the Ruari's Ridge and Chico do Santo projects now indicate both have good potential to be developed as satellite mines at the Palito operation.              

Ruari's Ridge

Located approximately 500m south-west of the underground mining operation established on the Palito Main Zone (PMZ) mineralisation, the Ruari's Ridge project was originally defined by a strong gold-in-soil geochemical anomaly, situated on the flank of a significant magnetic geophysical high; it is noteworthy that a similar geochemical anomaly has been identified just over 100m to the south-east but is yet to be tested.  Preliminary drill results reported in the Company's Exploration Updates of 13 September, 2006 and 26 March, 2007, identified sub-parallel zones of gold and copper mineralisation extending over 600m strike and 200m down dip.  Initial Phase-2 follow-up drill and trench results now confirm the presence of at least three or four sub-parallel zones of gold-copper mineralisation which has extended the inferred strike extension of high-grade gold/copper mineralisation to 950m along strike and 300m vertically.

Trenching has revealed regular intercepts of gossaniferous (1) veins along the central portion of the main soil geochemistry anomaly, confirming continuity of mineralisation over 400m strike.  In addition, the occurrence of a further gossaniferous altered outcrop returning more than 13 g/t gold some 400m south-east of these trenches and directly along strike, indicates a potential surface exposure of 800m.

Furthermore, positive drill intersections 150m north-west of the gossaniferous trenches, is thought to indicate a further extension of the same mineralisation, indicating a cumulative total of at least 950m of inferred strike extent of the Ruari's Ridge mineralisation.

The results from diamond drilling also indicate high-grade mineralization persists to 300m vertically beneath the mineralised trench intercepts, compared with 200m previously indicated.  This drilling also shows that parallel zones of high-grade mineralization exists in the central part of the strike, with up to 3 additional zones identified parallel to the main zone.

(1) Gossan: mass of weathered material resulting from oxidation by percolating waters of outcrops of sulphide mineral deposits

To date a total of 26 drill holes have been completed along the Ruari's Ridge prospect, with a number of results still outstanding. This drilling is predominately composed of diamond core drilling and some percussion drill holes, for a total of approximately 5,600 metres.

Previously Serabi reported the first 6 diamond drill holes into the northern portion of the prospect (PDD 255, 258, 261, 264, 271 and 289-partial) In addition to these a further 20 holes have been completed or are in progress. Results have been collated for 13 holes with complete assays pending on 7 holes.

Significant new drilling intercepts include:

(*) � core assays from Palito Mine Laboratory only, � core sample results are pending from SGSGeosol Laboratory in Belo Horizonte

(**) Partial results for hole received

Significant trench sampling intercepts include:

Trench samples have been assayed at the Palito Mine Laboratory only.

Results from a further four trenches are pending.

Chico do Santo

Situated some 300m north-east of the current PMZ mine, very early exploration identified three mineralised structures running parallel to the PMZ associated with old garimpeiro workings.  Drilling has continued, with a further 8 holes completed for a total of 1,130m.  In addition, preliminary interpretation of a recently completed ground electromagnetic geophysics survey (EM) has enhanced the understanding of the Chico do Santo prospect. Significantly two (2) more potentially mineralised structures have been defined using the survey, bringing the total to five (5) potentially mineralised structures.  Furthermore, results now indicate that such mineralisation could extend to within just 100m of the existing underground mine at Palito.

Using the new information and with a better understanding of the structures at Chico do Santo, the new interpretation will enable Serabi to better target drilling on the prospect.

Significant new drilling intercepts include:

(*) � core assays from Palito Mine Laboratory only, � core sample results are pending from SGSGeosol Laboratory in Belo Horizonte

(�) RC assays from Palito Mine Laboratory only

Commenting on the results, Graham Roberts, the Chairman of Serabi said:

"The results from both projects are very exciting and confirm the wider potential of the district from which the Palito operation can be expanded.  As a completely new discovery Ruari's Ridge is particularly meaningful, being previously unknown and unworked by the garimpeiros, with major implications for such potential across the rest of the Jardim do Ouro district.

The challenge is now twofold. First, to fully evaluate and hopefully bring to production both these projects as satellite mines of the Palito operation.  In this regard we are fortunate as the topography at Ruaris' Ridge will enable quick underground access to the mineralisation; such development will also provide a platform from which to better exploit the nearby Palito West deposit.  Secondly, in order to ensure we arrive at the best long-term plan for the Palito Operation, it is important to understand better and quantify the full potential of the district from which more significant expansion might be achieved in the future.  In this regard we will now escalate the pace of exploration and evaluation in the area."        

Technical and geological information in this report has been read and approved by Serabi's Chief Geologist, Mr Chris Spurway. Mr Spurway BSc (Honours) is a graduate of the University of Sydney in Geology. He is a member of the AusIMM and has worked for over 16 years in mineral exploration including three years in Brazil.

Enquiries

Serabi Mining plc

Notes to Editors

The Tapajos region of northern Brazil encompasses an area of approximately 100,000 km�, primarily situated in south-west Para State.  It has a significant history of alluvial gold production with estimated gold production of some 30 million ounces having being recovered, primarily from artisanal workings.

Present in the Tapajos since 1999, Serabi has established the only 'hard rock' mine in the region to date at its Palito gold mine, which produced 39,197 ounces of gold equivalent in 2006..  Commercial production was achieved last October at Palito, with cash costs for the fourth quarter of 2006 reported at $252 per ounce of gold equivalent. 

Serabi already has a significant exploration programme focused on the Tapajos region, owns and operates four surface drilling rigs and has its own assay laboratory.