Coringa Leads Serabi Gold's Production on a License Expiring January 29, 2027

• Coringa produced 14,988 ounces of gold in the first half of 2026, against 8,061 ounces at the Palito Complex.
• Coringa operates under a 3-year Guia de Utilização (GUIA) license that expires on January 29, 2027.
• The full mining license (LI) is issued by the Secretaria de Estado de Meio Ambiente e Sustentabilidade (SEMAS) and requires prior approvals from the Instituto Nacional de Colonização e Reforma Agrária (INCRA) and the Fundação Nacional dos Povos Indígenas (FUNAI).
• Serabi's guidance of more than 53,000 ounces of gold assumes the LI is awarded by the fourth quarter of 2026.
• Chief Executive Officer Mike Hodgson's stated timing range extends beyond that assumption.

Coringa Has Become Serabi Gold's Larger Producer

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) produced 14,988 ounces of gold at the Coringa Mine in the first half of 2026 and 8,061 ounces at the Palito Complex, per the company's second quarter operational release of July 23, 2026. Coringa delivered 7,538 ounces in the second quarter at a milled grade of 7.41 grams per tonne, while Palito delivered 3,469 ounces at 4.62 grams per tonne, down from 6.15 grams per tonne a year earlier. Group production still rose to 11,007 ounces, a 5% increase on the second quarter of 2025. Coringa is now the larger of the two producers and also the asset without a full mining license. It operates under a 3-year Guia de Utilização (GUIA) license that expires on January 29, 2027, and that expiry date now governs the larger share of Serabi's output rather than a secondary development asset.

What Pará State Offers & What It Requires

Serabi ranks Pará first in Brazil for mining and states an effective tax rate of 15.25% under state development incentives. The permitting structure is the cost side of that trade. A full mining license in Pará is issued by Secretaria de Estado de Meio Ambiente e Sustentabilidade (SEMAS), the state environmental agency, but SEMAS cannot issue it until two separate federal bodies have delivered their own approvals. 

One License & a Possible Extension to Reach It

Two approvals must be received by SEMAS before the LI can be issued. The Instituto Nacional de Colonização e Reforma Agrária (INCRA), the land registry body, must grant a change of land use, which has been approved technically at both the state and federal levels and is awaiting final legal sign-off. Fundação Nacional dos Povos Indígenas (FUNAI), the federal Indigenous affairs agency, must formally approve the Estudo de Componente Indígena (ECI), which was presented to the Indigenous communities in March 2026 and was positively received. A second community site visit to Coringa took place on July 17, 2026.

Running alongside that process is a separate discussion with the Agência Nacional de Mineração (ANM) regarding the extension of the current GUIA. The GUIA extension and the final LI represent parallel tracks. While the LI remains the long-term operational objective, a GUIA extension serves to protect ongoing production if LI approval is delayed beyond the January 2027 deadline. FUNAI's approval turns on community consent, and Serabi has handled that engagement at principal level rather than delegating it to advisers alone. 

Chief Executive Officer of Serabi Gold, Mike Hodgson, described the division of work:

"We use a consultancy there, we use our Brazilian management, and our legal counsel gets involved too. I've got involved, I've met the chiefs of both tribes myself."

Where the Company's Timing Sits Against the Guidance Assumption

Serabi maintains full-year consolidated guidance of more than 53,000 ounces of gold on the stated assumption that the LI is awarded by the fourth quarter of 2026. 

Hodgson set out the advice the company was working from: 

"We're anticipating the final permit is going to be awarded at Coringa before the end of this year, maybe the first part of next year. That's what our legal counsel is advising."

The lower end of that range matches the guidance assumption. The upper end falls after it, and after the January 29, 2027 GUIA expiry. That is where the ANM extension discussion becomes material to production rather than to paperwork, and it is the specific reason the extension is worth monitoring as closely as the LI itself.

Capital Committed Ahead of the License

Installation of the fourth ball mill at the Palito Complex is progressing on time and on budget, per the July 23, 2026 release, and is targeted to be operational by the fourth quarter of 2026, raising annual processing throughput to 330,000 tonnes in 2027. The cost is $5 million, and no stand-alone processing plant is planned for Coringa, making the expanded Palito plant the only processing route for both mines under the current plan.

Serabi held $65.7 million in cash as of June 30, 2026, up from $64.4 million as of March 31, 2026, and carries no debt following the repayment of a $5.3 million Banco Santander loan in the first quarter of 2026. The company reports the expansion is on budget and has announced no financing for it. Serabi is therefore adding processing capacity for ore whose permanent operating authorization is still pending.

Palito's own contribution is a second variable. Its year-to-date milled grade of 5.26 grams per tonne compares with more than 6 grams per tonne across 2025, and Serabi is targeting a resumption of stoping at the G3 zone in the second half to support grade recovery. Coringa's transition to mechanized sublevel stoping is targeted for completion by the fourth quarter of 2026.

What to Monitor

Two regulatory announcements determine whether the LI arrives on the assumed schedule: INCRA's final legal sign-off on the land-use change and FUNAI's ECI protocol. SEMAS cannot issue the license until both are delivered, so if either one slips, the LI date moves directly. A third announcement matters only if that happens. The ANM's decision on extending the GUIA is what preserves Coringa's production if the license runs past January 29, 2027, which makes it the item to watch most closely from the fourth quarter of 2026 onward rather than the least.

Three operational milestones sit alongside them. Commissioning of the fourth ball mill, targeted for the fourth quarter of 2026, will increase processing throughput to 330,000 tonnes in 2027. A resumption of stoping at the G3 zone is what Serabi is targeting to recover Palito's milled grade from 5.26 grams per tonne toward the more than 6 grams per tonne it averaged in 2025. Completion of Coringa's transition to mechanized sublevel stoping, also targeted for the fourth quarter of 2026, bears on cost and output at the mine now carrying the larger share of production. Serabi has funded its processing expansion and carries no debt, leaving permitting timing as the principal external dependency for its 2026 production target.

FAQs (AI-Generated)