Coringa Permit Delay Cuts Serabi Gold's 2026 Guidance to 2025 Levels

• Serabi Gold produced 11,008 ounces (oz) of gold in the third quarter of 2026, a 9% decrease from the same quarter of 2025.
• Gold production for 2026 is now expected to be at similar levels to 2025, against previous guidance of over 53,000 oz.
• Permitting delays at the Coringa Mine affected the planned production ramp-up.
• Cash stood at US$63.2 million on September 30, 2026, and the company has no debt.
• The fourth ball mill at the Palito Complex is in final commissioning.

Company Overview

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) is a gold exploration, development, and production company focused on the Tapajós region of Pará State in northern Brazil. The company has consistently produced 30,000 to 40,000 ounces (oz) of gold per year from the Palito Complex and expects production to increase as the Coringa Mine ramps up. Serabi Gold is headquartered in the United Kingdom, with a secondary office in Toronto, Ontario.

Lower Palito Grades Cut Third-Quarter Output 9%

Serabi Gold produced 11,008 oz of gold in the third quarter of 2026, a 9% decrease from 12,090 oz in the same quarter of 2025, driven by lower-than-expected grades from the Palito Complex. Production for the year to date reached 34,057 oz, of which the Coringa Mine contributed 23,089 oz. Production numbers are subject to change pending final assay analysis from refineries.

Palito mined 26,465 tonnes (t) of ore in the quarter, comparable to 26,352 t a year earlier. Its mined grade fell to 4.01 grams per tonne (g/t) gold from 6.29 g/t, below budget. Coringa mined 34,040 t at 7.63 g/t gold, up from 25,273 t a year earlier, now that the Meio zone is fully ramped up. Its grade was slightly below the 8.23 g/t of the third quarter of 2025.

Chief Executive Officer of Serabi Gold, Mike Hodgson, contrasts the year-to-date grades at the 2 operations:

"Operationally, Coringa continued to perform very well with average milled grades of close to 8 g/t Au. Year-to-date milled grade of 7.74 g/t Au has been recorded. In contrast, Palito grades were disappointing with the year-to-date average of 4.90 g/t Au."

Palito grades are expected to improve in the fourth quarter of 2026 as the company increases mine output from the G3 vein, where higher-volume and higher-grade blocks await.

Pending Coringa Approvals Reset the 2026 Production Guidance

Gold production for 2026 is now expected to be at a similar level to 2025, compared with the previous guidance of over 53,000 oz. Group gold production in 2025 was 44,169 oz. Permitting delays at the Coringa Mine affected the planned production ramp-up. The outstanding approvals would have allowed Serabi Gold to process additional Coringa material through the expanded Palito plant in the fourth quarter of 2026, and they have not yet been received.

Coringa operates under a 3-year GUIA trial mining license that permits the transport of up to 100,000 t of ore per year from Coringa to the Palito Complex and expires on January 29, 2027. As of September 30, 2026, 85,602 t had been transported against the current annual allowance. Additional surface-stockpiled material and run-of-mine ore, meaning ore as it comes out of the mine, cannot be transported from Coringa to the Palito Complex until that limit is increased or the operating license is granted.

Two Permitting Routes Advance in Parallel

Serabi Gold is in discussions with the Agência Nacional de Mineração (ANM) to continue operations under the GUIA, supported by a legal petition in support of the request. The operating license requires a change-of-land-use approval from the Instituto Nacional de Colonização e Reforma Agrária (INCRA). It also requires approval of the Estudo de Componente Indígena (ECI) by the Fundação Nacional dos Povos Indígenas (FUNAI), the Brazilian government agency for Indigenous peoples.

Both Indigenous groups have approved the ECI, which is subject to final approval by FUNAI. The change of land use has been technically and legally agreed upon and requires final INCRA approvals at the state and federal levels.

Pará's environmental licensing agency, the Secretaria de Estado de Meio Ambiente e Sustentabilidade do Pará, confirmed after a site visit to Coringa in September 2026 that Serabi Gold may bypass the installation license stage because the operation already operates under the GUIA and will not require a processing plant or a tailings facility at Coringa. Once the approvals from FUNAI and INCRA are received, Serabi Gold can apply directly for the operating license. That license would enable ANM to issue the Portaria de Lavra, the mining concession that completes permitting at Coringa.

Serabi Gold Ends September Debt-Free With US$63.2 Million

Cash stood at US$63.2 million on September 30, 2026, and the company has no debt. The balance compares with US$65.7 million on June 30, 2026, as operational cash generation over the quarter was offset by the payment of Serabi Gold's maiden dividend of US$5.1 million in July 2026. A further US$3.4 million was received on October 1, 2026, from the September 2026 sale of bullion.

Palito Mill Expansion & Coringa Mining Changes

The fourth ball mill at the Palito Complex, a rotating drum that grinds ore into fine particles, is in final commissioning, after installation was completed on time and on budget. It will lift annual processing throughput to 330,000 tonnes per annum in 2027. Plant capacity at Palito has increased from 650 tonnes per day (tpd) to over 900 tpd, enough to support higher production once the Coringa approvals are secured.

At Coringa, the move from manual selective mining to mechanized sublevel open stoping, an underground method that extracts ore in larger blocks between developed levels, is on track for the fourth quarter of 2026. Mining is underway across 4 zones at Coringa: Serra, Serra South, Meio, and Galena. Hodgson ties the 2027 spending outlook to this year's development work:

"The development of Serra South and Galena in 2026 has been substantial on capital expenditures, we therefore expect significantly lower capital expenditures in 2027."

The new Galena zone is in development, with its main ramp currently at the 249-meter level.

Next Steps

Management will provide a further update to production guidance with the third-quarter financial results, expected in late November 2026.

The added capacity from the fourth ball mill also creates the potential to restart mining at São Chico, which has been on care and maintenance since 2023, meaning mining is suspended while the site is maintained. The company is assessing the potential for a restart, including resampling the existing surface stockpile and evaluating re-entry into the upper mine levels. Any decision depends on that assessment and on renewal of the São Chico GUIA license. Brownfield drilling continues at both Palito and Coringa as the company seeks to grow the group's resource base. With a strong financial position and lower capital spending expected in 2027, the company has the flexibility to keep investing in that growth.

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