Serabi Gold Reports First Quarter 2026 Production Growth, Debt-Free Balance Sheet & Palito Mill Expansion

• Serabi Gold produced 12,042 ounces of gold in the first quarter of 2026, a 20% increase on the first quarter of 2025, from group ore mined of 54,965 tonnes at 7.06 grams per tonne gold and 54,587 tonnes milled at 7.05 grams per tonne gold.
• The company closed the quarter debt-free with a cash balance of US$64.4 million after repaying US$5.3 million to Itaú Bank during the period, a US$15 million increase in the cash position quarter-on-quarter.
• Installation of a fourth ball mill at the Palito Complex commenced at an estimated capital cost of US$5.0 million, with commissioning targeted for the fourth quarter of 2026 and annual processing throughput expected to increase to 330,000 tonnes per annum in 2027.
• Coringa transitioned from selective open stoping to mechanised sublevel stoping following 12 months of ore-sorting success, with full mechanisation expected by the third quarter of 2026, while the full mining licence remains pending two regulatory approvals from Instituto Nacional de Colonização e Reforma Agrária (INCRA) and Fundação Nacional dos Povos Indígenas (FUNAI).
• Full-year 2026 production guidance is maintained at 53,000 to 57,000 ounces of gold, with output expected to increase sequentially across each quarter of the year.

First Quarter Production & Finance Update

Serabi Gold produced 12,042 ounces of gold in the first quarter of 2026, a 20% increase from the first quarter of 2025. Group ore mined totalled 54,965 tonnes at 7.06 grams per tonne gold, with 54,587 tonnes milled at 7.05 grams per tonne gold.

The company closed the quarter with a cash balance of US$64.4 million after repaying US$5.3 million during the period, leaving the balance sheet debt-free.

Chief Executive Officer of Serabi Gold, Mike Hodgson, is direct about the quarter's results:

"We delivered an excellent first quarter, with over 12,000 ounces of gold produced and a positive cash balance of over $64 million, increasing the cash position by $15 million. We are now debt-free, having repaid the $5.3 million debt facility to Itaú Bank in Brazil during the quarter."

Palito Plant Expansion & Stockpile Strategy

The Palito Complex commenced installation of a fourth ball mill at an estimated capital cost of US$5.0 million, fully financeable from the existing cash balance. Commissioning is targeted for the fourth quarter of 2026, with annual processing throughput expected to increase to 330,000 tonnes per annum in 2027. The expansion directly addresses plant capacity constraints.

The additional capacity permits immediate processing of lower-grade stockpiles currently held on the surface. An assessment is also underway on the potential impact of restarting São Chico on the mine plan. São Chico operations were suspended in 2023 due to economic and plant capacity constraints rather than resource exhaustion; the company is assessing the rehabilitation of the upper levels and a modest restart, noting that ore sorting has not proved successful at the site.

Hodgson is direct about the rationale:

"With gold prices at record highs and viable stockpiles on hand, plant capacity constraints have become more pressing than ever. The company is installing one of the dormant ball mills previously destined for Coringa at Palito to increase plant throughput."

Coringa Operating Changes & Permitting Status

Coringa transitioned from selective open stoping to mechanised sublevel stoping following 12 months of ore-sorting success. Mechanisation is expected to be complete by the third quarter of 2026. The site operates under a 3-year Guia de Utilização (GUIA) licence, expiring on 29 January 2027, with discussions ongoing with ANM regarding an extension.

The full mining licence requires two regulatory approvals: a change of land use from Instituto Nacional de Colonização e Reforma Agrária (INCRA) and Fundação Nacional dos Povos Indígenas (FUNAI) approval for the Estudo de Componente Indígena (ECI). The change-of-land-use application was submitted in its final form, and approval is expected in the first half of 2026. FUNAI has presented the ECI to the indigenous community; ECI approval can follow once a compensation study is agreed.

Mine-by-Mine Operational Detail

Coringa produced 7,450 ounces of gold in the first quarter of 2026 from 29,764 tonnes of ore mined at 8.06 grams per tonne gold and 29,610 tonnes milled at 8.01 grams per tonne gold, with 2,273 metres of horizontal development. The Serra zone delivered production from the 260-metre, 225-metre, 190-metre, and 158-metre levels, with development continuing on the 158-metre, 141-metre, 126-metre, and 106-metre levels. The Meio zone carried stoping on the 310-metre level and development on the 286-metre, 271-metre, and 252-metre levels, and the Galena zone ramp advanced at the 285-metre level.

The Palito Complex produced 4,592 ounces from 25,201 tonnes mined at 5.88 grams per tonne gold and 24,977 tonnes milled at 5.90 grams per tonne gold, with 1,882 metres of horizontal development. Production came from the Barrichello and G3 zones, with development on the Senna, Piquet, and G3 veins from the 167-metre level down to minus 210 metres on G3. Total group horizontal development for the quarter was 4,155 metres, comprising 2,336 metres of ore development with the balance in ramp, crosscuts, and stope preparation.

Drilling conducted during 2025 identified the Serra Sul and Fofão zones at Coringa and the Piauí zone at Palito, providing targets for the 2026 brownfield drilling programme.

Next Steps

Near-term milestones include INCRA change of land use approval expected in the first half of 2026, updated mineral resource releases imminent, an exploration update on the 2026 brownfield drilling programme due in the second quarter of 2026, Coringa mechanisation expected to be complete in the third quarter of 2026, and the fourth ball mill commissioned at Palito in the fourth quarter of 2026. Full-year 2026 production guidance is maintained, with output expected to increase sequentially across each quarter.

Hodgson frames the production profile for the year:

"We continue to take advantage of the economic tailwinds that prevail at this moment in time, and the production profile for the year will see each quarter sequentially increasing production, as we anticipate another record year of production in 2026, with production guidance at 53,000 ounces to 57,000 ounces."