Serabi Gold & June 2026 AGM Update: 6 Things You Need to Know

• Serabi Gold plc ended the first quarter of 2026 with US$64.4 million in cash and no debt.
• The company is targeting 53,000 to 57,000 ounces of gold production in 2026, following a record 44,169 ounces in 2025.
• A 30,000 metre drilling programme increased consolidated mineral resources from approximately 1 million ounces to 1.4 million ounces.
• Coringa mineral resources increased to approximately 800,000 ounces, including the new Serra South discovery.
• Management is advancing a mill expansion to increase Palito's processing capacity from 650 to 900 tonnes per day.
• Shareholders approved a final dividend of 5 pence per share under the company's capital return policy.

Project Overview

Serabi Gold plc ( LSE: SRB | TSX: SBI | OTC: SRBIF) update combines three themes that directly affect future production potential: a debt-free balance sheet with US$64.4 million of cash, an expanded consolidated mineral resource inventory of 1.4 million ounces, and a planned increase in processing capacity at the Palito Complex. Together, these developments address capital availability, mineral inventory growth and processing capacity.

1. Achieving a Debt-Free Balance Sheet

Serabi entered the second quarter of 2026 with US$64.4 million in cash and no debt after repaying its remaining debt facilities during January and February. The debt repayment removes financing obligations while preserving capital for exploration, permitting activities and operational expansion. Management has already outlined a US$9.0 million exploration programme spanning 2025 and 2026, alongside an estimated US$5.0 million investment to expand processing capacity at Palito.

The debt-free balance sheet also supports shareholder returns. The shareholders approved a final dividend of 5 pence per share, which the company stated aligns with its policy of returning approximately 20% of annual free cash flow (FCF).

Chief Executive Officer of Serabi Gold, Mike Hodgson, discussed the company's capital allocation approach:

"We've looked at a lot of stuff and we haven't done anything yet because we do have a lot of discipline in this, and we're not, we don't have to rush. No, not at all. We've got a very good shareholder base, they're very patient, things are going very well, we're generating a lot of cash."

The combination of cash generation, debt elimination and dividend initiation demonstrates that current operations are funding both growth initiatives and capital returns.

2. Production Guidance Points to Another Year of Growth

Management is targeting 53,000 to 57,000 ounces of gold production in 2026, following a record 44,169 ounces in 2025. The increase is being driven by the integration of Coringa ore into the Palito processing complex. Rather than constructing a standalone processing facility, Serabi transports ore from Coringa into existing infrastructure, allowing production to increase through the current operating platform.

The strategy has already delivered a higher production base and provides the operational rationale for the company's planned processing expansion. Achieving the 2026 production target would be another step in the company's effort to increase output by integrating its production assets.

3. Delivering a 1.4 Million Ounce Consolidated Resource

A 30,000 metre drilling programme increased Serabi's consolidated mineral resource inventory from approximately 1 million ounces to 1.4 million ounces. The increase was achieved through drilling at both the Palito Complex and Coringa. The expanded inventory provides the mineral foundation required to support future production growth and underpins management's decision to continue investing in exploration.

The company is advancing a US$ million exploration programme spanning 2025 and 2026, including 30,000 metre of diamond drilling per year. Management has stated that the objective is to continue increasing the consolidated mineral resource inventory beyond its current level. The increase in resources matters because future expansion of processing capacity requires a sufficient mineral inventory to support higher throughput over time.

4. Coringa Continues to Deliver Resource Growth

Coringa's mineral resource inventory increased to approximately 800,000 ounces following continued drilling success across the project area. One of the most significant exploration outcomes was the delineation of the Serra South zone, located approximately 500 metres from the existing Serra resource. The discovery demonstrates that mineralisation extends beyond the deposits currently included within the resource estimate.

The current resources underlie approximately 1.5 kilometres of artisanal workings within an 8-kilometre mineralised trend, indicating that substantial portions of the corridor remain available for future exploration.

Hodgson provides his assessment of the project's scale potential:

"I look at Coringa and think that can easily be a 1.5 million ounce deposit alone."

The investment implication is that continued exploration success at Coringa could increase the mineral inventory available to support future mine planning and production growth.

5. Permitting Milestones Continue to Advance

Two regulatory milestones advanced during 2026, moving Coringa closer to securing its permanent Installation Licence. Management reported that the Indigenous Component Study (ICS)  was presented to affected indigenous communities and received unanimous approval. The company also announced that the required land-use change had been approved by the National Institute for Colonisation and Agrarian Reform at the state level.

Both approvals form part of the permitting pathway required before issuance of the permanent Installation Licence. Progress on these milestones reduces uncertainty surrounding future operational development at Coringa.

6. Expanding Palito Complex Capacity with a Fourth Ball Mill

Management is advancing a project to increase Palito's processing capacity from 650 to 900 tonnes per day. The expansion centres on installing a fourth ball mill sourced from equipment acquired as part of the Coringa transaction. The project carries an estimated capital cost of US$5 million and is targeting completion during the fourth quarter of 2026.

Hodgson explained the origin of the equipment:

"So it wasn't perfect, but the mills were in good condition, as were the crushing facilities. So, we're moving one of those ball mills to Palito now."

The Bottom Line

Serabi Gold's June 2026 AGM update highlights progress across the three factors most likely to influence future production growth: capital, mineral inventory and processing capacity. The company ended the first quarter of 2026 with US$64.4 million in cash and no debt, increased consolidated mineral resources from approximately 1 million ounces to 1.4 million ounces through drilling, advanced key permitting milestones at Coringa, and is targeting an increase in Palito processing capacity from 650 tonnes per day to 900 tonnes per day during the fourth quarter of 2026. These developments strengthen the financial, operational, and regulatory foundations that support Serabi's next stage of growth.

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