TIDMSRB 
 
   For immediate release 
 
   23 October 2017 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Strong third quarter production consolidating 2017 production. 
 
   Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining 
and development company, is pleased to report third quarter production 
of 9,657 ounces of gold at its Palito/Sao Chico high grade gold 
operation in the Tapajos region of Para State, Northern Brazil. 
 
   HIGHLIGHTS 
 
 
   -- Third quarter production of 9,657 ounces of gold. 
 
   -- Mine production totalled 41,263 tonnes at 9.80 grammes per tonne ("g/t") 
      of gold. 
 
   -- 44,954 tonnes processed through the plant for the combined mining 
      operations, with an average grade of 7.21 g/t of gold. 
 
 
   -- 2,996 metres of horizontal mine development completed in the quarter. 
 
   -- The Palito orebody saw development and production focus on the Senna, 
      Pipocas, G3 and Mogno veins principally, with three other veins, (Zonta, 
      G1, Jatoba) in development. 
 
   -- The mine ramp accessing the Sao Chico orebody has now reached the 26mRL, 
      approximately 230 vertical metres below surface.   Production is coming 
      from the 128mRL and 100mRL levels with levels 86mRL, 70mRL, 56mRL, 40mRL 
      and now 26mRL all either developed or being development, comfortably 
      ahead of production. 
 
   -- By the end of the third quarter, surface ore stocks were approximately 
      15,000 tonnes (30 June 2017: 12,000 tonnes) with an average grade of 3.2 
      g/t of gold. 
 
   -- An initial 8,000 metre surface drill programme to commence before the end 
      of the year. 
 
 
   Mike Hodgson, CEO, said: 
 
   "Following an excellent first quarter and a moderate second quarter, it 
is very satisfying to report that the operation has bounced back and 
performed very well in the third quarter of the year.  With 
approximately 9,700 ounces of gold produced in the quarter, the 
Company's total production for the year to date is now approximately 
28,000 ounces. 
 
   "Mine production from both the Palito and Sao Chico orebodies progressed 
well, and there were improvements in the average grades mined from both 
orebodies during the third quarter, with average mined grades of over 9 
g/t of gold being reported.  Mine developmentfrom the Sao Chico orebody 
in particular has been very encouraging, especially on the 40mRL, the 
lowest level currently in development.  To date, the 40mRL level 
exhibits greater than forecast payable strike lengths compared with the 
upper levels.  We are eagerly anticipating the next level, the 26mRL, to 
see if this trend continues.  The exciting results from level 40mRL has 
meant mill feed ore from the Sao Chico orebody is predominantly from 
development and relatively little from stoping.  In addition, 
development is now comfortably ahead of stoping, with over two years of 
ore now developed and 'blast ready' at current production rates. 
 
   "At the Palito orebody, seven veins out of the 25 veins that comprise 
the total geological resource, are now in various stages of development 
and production.  The Pipocas, G3, and Senna veins remain the backbone of 
our sources of ore, with smaller contributions from the newly developed 
Jatoba, Mogno, Zonta and G1 veins.  As was reported in the Company's 
second quarter operational update, the G3 vein has been intersected on 
the -50mRL, the lowest level in the mine, and development on this level 
has been on-going through the third quarter.  The mineralised vein 
remains strong, with very good grades being encountered.  The Pipocas 
vein is in development on the 30mRL and 0mRL levels, with deepening 
underway to access the          -30mRL level. 
 
   "In the plant, the performance during the quarter was excellent, with 
approximately 45,000 tonnes of run of mine ore ("ROM") milled.  With 
41,000 tonnes having been mined, the balance of the plant throughput was 
made up by processing the low grade surface stockpiled ore.  However, 
with over 15,000 tonnes of coarse ore still in stockpiles and over 
35,000 tonnes of flotation tails stockpiled (with an average grade of 
around 3g/t of gold) and this level having been fairly static since 
2014, we remain plant constrained, which is both comforting and 
frustrating. 
 
   "With current plant limitations, we have had little success in running 
down the levels of the flotation tails, for two primary reasons.  To 
date we have pumped the tailings 'wet' to the CIP plant, but this has 
proved to be slow and labour intensive.  Passing the material 'dry' 
through the ore feed system is restricted by belt capacity, and 
therefore we would be displacing higher grade ore.  We are now designing 
and constructing an independent conveyor to feed these tails directly 
into the ball mills, which means this material can be added to the 
current dry mill feed, and therefore increase the levels that can be 
treated each month.  We hope to be operational with this solution by 
mid-November. 
 
   "One very encouraging development this year has been our test work on 
ore sorting on the Palito and Sao Chico ores. We are mining narrow veins 
with an approximate width of 0.5 metres, and whilst we employ the most 
selective methods possible, unavoidably our minimum stope mining width 
is generally 1.0 metre. Therefore, despite excellent mining quality, we 
still experience considerable dilution from stope mining with even 
higher levels in the development mining activities. Having undertaken 
test work initially in Brazil and more recently on bulk samples at the 
manufacturer's facilities in Poland, we have achieved excellent results 
using X-ray scanning to physically separate crushed ore between the 
sulphide bearing ore and granite waste.  The contrast and results have 
been quite remarkable.  The intention now is to introduce an X-ray ore 
sorter after the main crushing plant that will separate material ahead 
of milling and remove from the mill feed a significant percentage of the 
waste that would otherwise have formed part of the feed into the plant. 
Not only will this reduce process costs per ounce recovered, it will 
also liberate capacity in a mill constrained operation.  We therefore 
hope we can debottleneck the plant using this technology, elevating mill 
feed grade in the process, and freeing up plant capacity for the future 
organic growth.   This equipment is unfortunately built to order and we 
anticipate it will take between nine months and a year before it can be 
fabricated, installed and commissioned.  Payback of the estimated US$1.2 
million cost is however expected to be less than 12 months. 
 
   "On the subject of organic growth, with improved metal prices and 
exchange rates, we have recently been enjoying better margins and cash 
generation.  We have now been able to commit to an initial 8,000 metre 
surface drill programme, which will focus on drilling the many potential 
vein extensions we have at Palito." 
 
   "The full programme that we would like to undertake is substantially 
greater than 8,000 metres, and, both orebodies could benefit from 
significantly higher levels of strike extension drilling.  The Palito 
orebody hosts a resource that extends over a one kilometre strike length, 
but sits within a trend that now clearly indicates the veins 
mineralisation is traceable over approximately four kilometres.  The 
continuity of the ore payability in these veins remains to be seen, but 
clearly only drilling will determine this.  The Sao Chico orebody is 
completely open along strike with very little information outside the 
immediate mine limits.  Again there are strong indications that 
substantial strike extensions of the principal vein and adjacent veins 
are waiting to be defined. 
 
   "Ultimately, we have plans that would involve a much more ambitious 
drilling programme targeting a two million ounce total mineral resource 
across the two ore-zones, with the full programme, totalling 60,000 
meters, to be completed in two phases.  This initial 8,000 metres forms 
part of phase one and is a programme we can start comfortably and commit 
to out of operational cash flow.  Drilling will get underway in November, 
and I look forward to updating you on this during the first quarter of 
2018. 
 
   http://hugin.info/137617/R/2143365/821257.png 
 
   Indicative locations and allocation of the planned 8,000 metre drill 
programme (Please click on hyperlink to access image) 
 
   "This excellent third quarter has been extremely satisfying, after the 
slight disappointment of the second quarter.  The plant is always full, 
and rarely misses a beat, and with the ore blocks to be mined in this 
current fourth quarter and a healthy stockpile in front of the plant, I 
see every reason to look forward to a good final three months of the 
year." 
 
   Results 
 
   Total production for the third quarter of 2017 was 9,657 ounces of gold, 
generated from the processing of 44,954 tonnes of ore at overall average 
grades of 7.21 g/t of gold, which was sourced from mined ore from the 
Palito and Sao Chico orebodies, supplemented with lower grade surface 
stockpiled ROM and flotation tailings.  Mined tonnage for the quarter 
totalled 41,263 tonnes with a grade of 9.80 g/t of gold. 
 
   At 30 September 2017, there were coarse ore stocks of approximately 
15,000 tonnes of ore with an average grade of 3.20 g/t of gold, and 
approximately 35,000 tonnes of flotation tails with an average grade of 
3.00 g/t of gold. This stock is being consumed, albeit not as quickly as 
forecast, and for now the operation remains plant constrained. 
 
   A total of 2,996 metres of horizontal development has been completed 
during the quarter, of which approximately 1,489 metres was ore 
development.  The balance is the ramp, cross cuts and stope preparation 
development. 
 
   2017 Guidance 
 
   The Company forecast 40,000 ounces of gold production for the year, with 
an All In Sustaining Cost of between $950 and $975 per ounce, broadly in 
line with the cost guidance of 2016.  Gold production for the first nine 

months remains broadly in line with the Company's forecast. 
 
   With year to date production standing at 27,666 ounces, an additional 
fourth quarter of 10,000 ounces forecast should result in full year 
production of a minimum of approximately 38,000 ounces.  Management hope 
that production for the fourth quarter will improve on prior quarters 
with the addition of increased levels of processing of 2014 flotation 
tails during the final quarter, a benefit which will continue through 
2018 as well. 
 
 
 
 
                        Quarter  Quarter   Quarter 
                           1        2         3       Total    Total    Total 
                         2017      2017      2017     2017     2016     2015 
Horizontal 
 development  Metres      2,251     1,855     2,996    7,102   11,209    9,600 
 
Mined ore     Tonnes     36,918    42,075    41,263  120,256  158,864  135,847 
 Gold grade (g/t)         10.12      7.80      9.80     9.20     9.74     9.80 
 
Milled ore    Tonnes     46,663    43,905    44,954  135,522  158,966  130,299 
 Gold grade (g/t)          7.09      6.26      7.21     6.86     8.11     8.43 
Gold 
 production   Ounces      9,861     8,148     9,657   27,666   39,390   32,629 
 
 
   1. Gold production figures are subject to amendment pending final agreed 
      assays of the gold content of the copper/gold concentrate and the gold 
      bullion when smelting and refining processes are completed. 
 
   2. Gold production totals for 2017 include treatment of 4,941 tonnes of 
      flotation tails (2016 full year: 16,716 tonnes) 
 
 
   This announcement is inside information for the purposes of Article 7 of 
Regulation 596/2014. 
 
   Enquiries: 
 
 
 
 
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                            Tel: +44 (0)20 7628 3396 
Michael Cornish                           Tel: +44 (0)20 7628 3396 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                             Tel: +44 (0)20 7418 8900 
Chris Burrows                             Tel: +44 (0)20 7418 8900 
 
Blytheweigh 
 Public Relations 
Tim Blythe                                Tel: +44 (0)20 7138 3204 
Camilla Horsfall                          Tel: +44 (0)20 7138 3224 
 
 
   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 
 
   The following is a glossary of technical terms: 
 
   "Au" means gold. 
 
   "assay" in economic geology, means to analyze the proportions of metal 
in a rock or overburden sample; to test an ore or mineral for 
composition, purity, weight or other properties of commercial interest. 
 
   "development" - excavations used to  establish access to the mineralised 
rock and other workings 
 
   "DNPM" is the Departamento Nacional de Produção Mineral. 
 
   "grade" is the concentration of mineral within the host rock typically 
quoted as grammes per tonne (g/t), parts per million (ppm) or parts per 
billion (ppb). 
 
   "g/t" means grams per tonne. 
 
   "granodiorite" is an igneous intrusive rock similar to granite. 
 
   "igneous" is a rock that has solidified from molten material or magma. 
 
   "Intrusive" is a body of igneous rock that invades older rocks. 
 
   "on-lode development" - Development that is undertaken in and following 
the direction of the Vein 
 
   "mRL" - depth in metres measured relative to a fixed point - in the case 
of Palito and Sao Chico this is sea-level.  The mine entrance at Palito 
is at 250mRL. 
 
   "saprolite" is a weathered or decomposed clay-rich rock. 
 
   "stoping blocks" - a discrete area of mineralised rock established for 
planning and scheduling purposes that will be mined using one of the 
various stoping methods. 
 
   "vein" is a generic term to describe an occurrence of mineralised rock 
within an area of non-mineralised rock. 
 
   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 
 
   Diagram for drill programme 
http://hugin.info/137617/R/2143365/821257.png 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Serabi Gold plc via Globenewswire 
 
 
  http://www.serabigold.com 
 

(END) Dow Jones Newswires

October 23, 2017 02:00 ET (06:00 GMT)