Fratelli Investments Reduces Stake in Serabi Gold as Company Pursues Brazilian Production Expansion

• Fratelli Investments Limited reduced its stake in Serabi Gold from 6.91% to 5.91%, now holding 4,473,536 shares representing 5.91% of voting rights.
• Serabi Gold operates as the first and only hard rock miner in Brazil's Tapajos region, the world's third-largest alluvial gold field covering 100,000 square kilometers.
• The company targets doubling production to 60,000 ounces per annum by 2026, with longer-term goals of reaching 100,000-200,000 ounces annually within 3-5 years.
• Serabi's flagship Palito Complex has been in continuous production since 2012, while the Coringa project is forecast to produce 32,000 ounces per annum when operational.
• The Tapajos region shows significant exploration potential with only 7 million ounces of hard rock resources defined despite 30 million ounces of historical artisanal mining activity.

Serabi Gold Plc is committed to sustainable gold production in Brazil, with a strategy to double output and increase shareholder value through responsible mining practices and ESG focus. The UK-based company operates in Brazil's prolific Tapajos region and has established itself as the first and only hard rock miner in this highly prospective region. Listed on AIM, TSX, and OTCQX markets, Serabi owns the Palito Mining Complex and Coringa Gold Project, with current production of approximately 40,000 ounces per annum. The Company's shorter-term strategy is to increase production to 60,000 oz pa Au by end 2026 and become a 100,000 – 200,000 oz pa Au producer within 3-5 years.

Key Transaction Details

The regulatory filing reveals that Fratelli Investments Limited, a Bermuda-based entity, has reduced its shareholding in Serabi Gold from 6.91% to 5.91% through a disposal of voting rights. The threshold was crossed on 09/09/2025, with the Company notified on 10/09/2025. Following the transaction, Fratelli Investments now holds 4,473,536 shares, representing 5.91% of the total voting rights in the company.

The disposal represents a decrease from the previous notification level of 6.91%, indicating a strategic adjustment in Fratelli's position. The notification was submitted under the standard TR-1 form requirements for major holdings disclosure, which mandates reporting when shareholdings cross certain threshold levels.

Shareholder Profile & Background

Fratelli Investments Limited is registered at c/o MQ Services Ltd., Victoria Place, 31 Victoria Street, Hamilton HM 10, Bermuda and operates as an exempted company limited by shares. The entity's Legal Entity Identifier indicates it has been active since 2015, and operates mainly in the Mining & Metals sector according to business intelligence platforms.

The reduction in Fratelli's stake occurs at a time when Serabi Gold has been gaining momentum in the market, with shares experiencing significant appreciation in recent months. The disposal may reflect portfolio rebalancing or profit-taking following the company's strong performance.

Serabi's Operational Foundation

Serabi's flagship asset, the Palito Complex, is a technically de-risked underground mine that began operating in 2004 and has been in continuous production since 2012. The company's operational base is strategically positioned in the Tapajós region, the world's third-largest alluvial gold field, covering approximately 100,000 square kilometers located 1,300 kilometers southwest of Belém.

The region's geological potential is substantial, with an estimated 30Moz of gold mined by artisanal miners since 1970s from mostly alluvial and surface weathered bedrock deposits. Despite this extensive artisanal mining history, only 7Moz of hard rock resources currently defined, suggesting significant exploration upside for systematic miners like Serabi.

Growth Strategy & Production Targets

The company has outlined an ambitious growth trajectory focused on doubling production capacity. The vision is to become the premier gold growth company in Brazil by working in partnership with stakeholders through responsible stewardship employing best ESG practices. This strategic approach combines operational expansion with environmental and social governance principles.

Serabi's near-term production goals center on the Coringa project, which when in production, is forecast to produce an average of 32,000 ounces per annum. The integration of Coringa with existing Palito operations forms the foundation for achieving the targeted 60,000-ounce annual production by 2026.

Competitive Positioning in Tapajos

The company's competitive advantage stems from its pioneering position in hard rock mining within the Tapajos region. The Region is highly prospective for gold, iron ore, copper, and nickel deposits with significant potential for new discoveries. This geological diversity provides multiple avenues for resource expansion and operational diversification.

Serabi has historically maintained strategic partnerships to enhance its exploration capabilities. The company had an exploration alliance with Vale in the region in 2023, demonstrating the area's attractiveness to major mining companies and validating Serabi's exploration strategy.

Market Context & Regional Advantages

Operating in Brazil's second-largest mining state provides Serabi with favorable regulatory and infrastructure conditions. The region is mining friendly with very little systematic exploration to date, but now attracting interest from major mining companies. This evolving landscape positions Serabi advantageously as a first-mover in systematic hard rock mining.

The Tapajos region's infrastructure continues to develop, supporting mining operations and reducing operational costs. The area's proximity to established transportation networks and mining services enhances the economic viability of current operations and future expansion projects.

Investment Considerations for Serabi

For investors evaluating Serabi Gold, several factors merit consideration. The company's established production track record, combined with clear expansion plans and favorable geological positioning, creates a foundation for potential growth. The reduction in Fratelli's shareholding, while notable, does not necessarily reflect negative sentiment toward the company's prospects but may indicate portfolio management decisions by the Bermuda-based investor.

The company's focus on ESG principles and sustainable mining practices aligns with contemporary investor preferences for responsible resource extraction. Serabi's positioning as the sole hard rock operator in a highly prospective region provides both operational advantages and exploration potential that could drive long-term value creation.

Given the company's production targets and the geological potential of the Tapajos region, Serabi represents an opportunity for investors seeking exposure to Brazilian gold production with defined growth catalysts and operational expertise in an underexplored but promising mining jurisdiction.