• The scientific and technical information contained in this news release pertaining to the Palito and Sao Chico gold deposits has been reviewed and approved by Michael Hodgson BSc, MSc FIMMM, who is a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and who has acted as the qualified person under the AIM Rules (“Qualified Person”):
  
  

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

• The Company estimates and discloses mineral reserves and resources using the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with NI 43-101. Further details are available at www.cim.org.

• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

• Mineral Resources are inclusive of Mineral Reserves.

• Proven underground Mineral Reserves are reported within the Measured classification domain, and Probable underground Mineral Reserves are reported within the Indicated classification domain. Proven and Probable underground Mineral Reserves are inclusive of external mining dilution and mining loss and are reported at a cut-off grade of 3.70 g/t gold assuming an underground extraction scenario and metallurgical recovery of 91% for the Palito Mine and at a cut-off grade of 3.45 g/t gold assuming an underground extraction scenario and metallurgical recovery of 95% for the Sao Chico Mine, a gold price of US$1,500/oz and a 5.0:1 Brazilian Real to U.S. Dollar exchange rate.

• Mineral Resources are reported within classification domains inclusive of in situ dilution at cut-off grade of 3.10 g/t gold and metallurgical recovery of 91% for the Palito Mine and at cut-off off grade of 2.85 g/t gold and metallurgical recovery of 95% for the Sao Chico Mine assuming an underground extraction scenario, a gold price of US$1,500/oz and a 5.0:1 Brazilian Real to U.S. Dollar exchange rate.

• Polygonal techniques were used for Resources estimates.

• Figures are rounded to reflect the relative accuracy of the estimates.

• Serabi is the operator and owns 100% of the Palito and Sao Chico Mines such that gross and net attributable mineral reserves and resources are the same.

• The effective date of the Resource estimate is 31 December 2021.
  
  

Mineral Reserves

Proven and Probable Mineral Reserves at the Palito Complex total 67,344 ounces of gold as at 31 December 2021, an increase on the December 2020 MRE of 5,623 ounces. The majority of the Reserves were defined at the Palito orebody with 58,156 ounces with the balance of 9,188 ounces being defined at Sao Chico. As part of the Company’s strategy to mitigate the risks and impacts of the COVID-19 pandemic, exploration and development activity was curtailed for much of 2020. Supply chain issues then hampered exploration and development during 2021. This had a direct impact on the replenishment of Reserves which are delineated by surface and underground drilling and most importantly by underground development. With these issues generally resolved, it is anticipated that the reserves at both Palito and Sao Chico orebodies will be further replenished during 2022.

Mineral Resources

Serabi’s Measured and Indicated Resources of 252,494 ounces remained broadly in line with the December 2020 MRE of 262,956 ounces, with the decrease reflecting mine depletion.

Measured Resources of 10,950 ounces at both Palito and Sao Chico were broadly in line with the previously reported December 2020 MRE of 12,731 ounces. Indicated Resources were also broadly in line at 241,544 ounces compared with 250,225 ounces in the December 2020 MRE. These modest declines were net of mine depletion.

The total Inferred Resources at the Palito Complex at 221,929 ounces remained broadly in line with the December 2020 MRE of 211,821. Inferred Resources at Palito increased slightly to 141,798 ounces at 5.00g/t Au from 117,819 ounces at 3.74g/t Au whereas Sao Chico saw a decrease in the Inferred Resource to 80,131 ounces at 4.55 g/t Au from 94,002 ounces at 4.81g/t Au.

The Palito and Sao Chico orebodies remain open along strike, laterally and at depth and the Company anticipates being able to continue to add to the resource inventory and demonstrate continued resource and reserve replenishment. In 2005, when the mine began operating, the global resource was 49koz of Indicated and 344koz of Inferred Resources. Since then, the Company has mined over 380koz and retains a Measured and Indicated Resource of 252koz and an Inferred Resource of 222koz, demonstrating strong resource replenishment.

The updated Mineral Reserve and Resource Estimates in respect of the Palito and Sao Chico deposits, have been prepared by the Company and are effective as of 31 December 2021.

Qualified Persons and Quality Control

The scientific and technical information contained in this news release pertaining to the Palito and Sao Chico gold deposits has been reviewed and approved by Michael Hodgson BSc, MSc FIMMM, who is a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and who has acted as the qualified person under the AIM Rules (“Qualified Person”).

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

Mineral Reserves and Resources

The Company estimates and discloses mineral reserves and resources using the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with NI 43-101. Further details are available at www.cim.org. See the “Glossary of Geological and Mining Terms” for complete definitions of mineral reserves and mineral resources.

About Mineral Resources

Mineral resources are not mineral reserves and do not have demonstrated economic viability but do have reasonable prospect for economic extraction. They fall into three categories: measured, indicated, and inferred. The reported mineral resources are stated inclusive of mineral reserves. Measured and indicated mineral resources are sufficiently well-defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the mineral resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them. There is no certainty that mineral resources of any category will be upgraded to mineral reserves.

Important Information about Mineral Reserve and Resource Estimates

Whilst the Company takes all reasonable care in the preparation and verification of the mineral reserve and resource figures. the figures are estimates based in part on forward-looking information.

Estimates are based on management’s knowledge, mining experience, analysis of drilling results, the quality of available data and management’s best judgment. They are, however, imprecise by nature, may change over time, and include many variables and assumptions including geological interpretation, commodity prices and currency exchange rates, recovery rates, and operating and capital costs.

There is no assurance that the indicated levels of metal will be produced, and the Company may have to re-estimate the mineral reserves based on actual production experience. Changes in the metal price, production costs or recovery rates could make it unprofitable to operate or develop a particular deposit for a period of time.

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 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.

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

APPENDIX

A comparison of the updated Mineral Reserve and Resource Estimate as at 31 December 2021 with the previously reported Mineral Reserve and Resource Estimate as at 31 December 2020 published on 29 March 2021 is set out below.

GLOSSARY OF TERMS

The following is a glossary of technical terms:

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