Serabi Gold Reports Record Q4 Production, Strong Cash Position, & Ambitious 2025 Targets

• Serabi Gold's Q4 2024 gold production of 10,022 ounces was the company's highest quarterly production in the past 5 years.
• Serabi ended 2024 with $22.2 million in cash and net cash of $16.2 million, a significant improvement over 2023 year-end.
• The company successfully commissioned the Coringa classification plant in Q4 2024 out of operating cashflow.
• Serabi is guiding for consolidated gold production of 44,000 - 47,000 ounces in 2025, up from 37,520 ounces in 2024.
• Higher grades from the Palito Complex's Barrichello zone are expected to be a key driver of 2025 production growth.

Serabi Gold is a gold exploration, development and production company focused on the Tapajós region of northern Brazil. The company has consistently produced 30,000-40,000 ounces of gold per year from its Palito Complex and is aiming to double production in the coming years with the construction of the Coringa Gold project. Serabi is headquartered in the UK with a secondary office in Toronto.

2024 Operational Highlights

Serabi Gold achieved record quarterly production of 10,022 ounces of gold in Q4 2024, capping off a strong year that saw full-year production increase 13.2% to 37,520 ounces compared to 33,153 ounces in 2023. The Palito Complex processed 52,363 tonnes of ore at an average grade of 6.21 g/t gold in Q4.

Key drivers of the strong Q4 and full-year 2024 performance included:

• Return to selective mining methods at Palito: After ceasing more dilutive bulk mining methods in the Chico da Santa zone, Serabi returned to selective mining which reduced dilution and drove grade improvements.
• High grades from the Palito Complex's Barichello zone: Exceptional grades from the Barichello zone, which is expected to contribute significantly to 2025 production, boosted Q4 production. Mined grades exceeded 6.10 g/t gold.
• Coringa mine development: The Coringa mine saw ore mined at the 260m and 225m levels of the Serra zone, with development advancing on levels 225m, 195m, and 165m. The Serra ramp is now approaching the 130m level. The Meio ramp also commenced development in Q4 and intersected mineralization in December. Meio is expected to be a key contributor to 2025 production.

Successful Coringa Plant Commissioning

In a major milestone, Serabi commissioned the Coringa ore classification plant in December 2024. The plant, which includes crushing and ore sorting capabilities, was constructed out of operating cashflow.

Coringa ore is now being pre-concentrated at site and then trucked approximately 200 km to the Palito Complex for final processing. The economics of this approach were documented in a NI 43-101 compliant PEA Technical Report filed in November 2024.

Strong Financial Position

Serabi ended 2024 with $22.2 million in cash, up from $20.0 million at the end of Q3 2024 and nearly double the $11.6 million on hand at 2023 year-end. The company's net cash position, after accounting for interest-bearing loans and lease liabilities, was $16.2 million compared to net cash of $5.0 million at the end of 2023.

Serabi took out a $5.0 million unsecured loan with an 8.47% interest rate from Itau Bank in January 2024, which was fully repaid in January 2025. The company noted it is in the final stages of executing a new loan facility with more favorable terms.

2025 Production Guidance & Growth Outlook

Serabi is guiding for consolidated gold production of 44,000 to 47,000 ounces in 2025, representing potential growth of 17% to 25% compared to 2024 production of 37,520 ounces. Key elements underpinning this growth outlook include:

• Continued robust performance from Palito: With dilutive bulk mining methods phased out and high grades coming from the Barichello zone, the Palito Complex is well-positioned to maintain strong production rates.
• Ramping Coringa output: With the Serra zone now well-developed and the Meio zone coming online, Coringa is expected to deliver increasing ore tonnages. The ability to now pre-concentrate this ore on site should enhance economics.
• Potential for additional discoveries: Serabi controls a large land package of exploration licenses in the Tapajos region. In 2024, the company announced a copper-gold porphyry discovery on one of these licenses, highlighting the potential for new discoveries to drive longer-term growth.

Key Takeaways

Serabi Gold delivered an excellent fourth quarter to cap a successful 2024. Record quarterly production of 10,022 ounces showcased the potential of the Palito Complex, while the commissioning of the Coringa plant marked a key step in Serabi's growth plans.

With a much stronger balance sheet, ambitious production growth targets for 2025, and exciting exploration potential, Serabi appears well-positioned to create shareholder value in the coming years. Investors may want to keep a close eye on the company's progress in ramping up Coringa, as well as any additional exploration news, as key potential upside catalysts.