Serabi Gold Significantly Extends Mine Life at Palito Complex as New 43-101 is Published

• Proven and Probable Reserves increase almost 3x to 206,400 ounces of gold
• Average gold grade of 7.78 g/t is an 11% improvement over 2021 estimates
• 6+ years of mine life at current production levels for Palito mine
• New NI 43-101 Technical Report available on Serabi’s website and SEDAR
• Recent resource update showed 50% increase in Measured & Indicated Resources

About Serabi Gold

Serabi Gold is a Brazil-focused gold mining and development company operating the Palito Complex which includes the Palito underground mine and the São Chico satellite deposit. The company is dual-listed on the London AIM exchange and Toronto TSX exchange. Serabi has established itself as an experienced explorer, developer, and producer with a track record of converting resources to reserves and consistently replenishing resources to extend mine life.

Strong Reserves Growth Extends Mine Life

The main highlight from Serabi’s latest update is the almost 3x increase in Proven and Probable Reserves at the Palito Complex to 206,400 oz gold. The updated reserve estimate was audited by independent engineering firm NCL Ingeniería y Construcción SpA and has an effective date of July 31, 2023. Significantly, the new technical report and updated reserve estimate points to an extended mine life of over 6 years for the Palito underground mine based on current production rates of ~30,000 oz gold per year. This does not yet include the conversion of additional resources which could further lengthen Palito’s operations. For investors, the extended mine life and increase in reserves provides greater production visibility and confidence in the asset.

Higher Grade Reserves Increase Confidence

In addition to larger reserves, the average grade improved 11% to 7.78 g/t gold versus 7.0 g/t gold in the prior December 2021 estimate. The higher grade results from Serabi’s success converting its recent exploration drilling into the reserves estimate, demonstrating the exploration potential for additional resources to reserves conversions over time. The Proven reserve category increased almost 20x while Indicated resources were converted into the new Probable reserves estimate. With strong grades, the reserves should support robust project economics over at least the next 6 years as Serabi continues underground development and exploration from existing infrastructure.

Significant Underground Exploration Success

The driver behind the substantial increase in reserves has been Serabi’s exploration program which has focused on underground drilling around existing operations. This exploration success resulted in the company announcing a 50% increase in Measured and Indicated resources in October 2022 to 377,800 oz gold. The close proximity of these resources to existing underground infrastructure improves both the economics and certainty for future conversion into reserves to further expand mine life at Palito. Ongoing underground drilling also suggests potential for new resources to drive future growth. Investors could see a steadily rising production profile in the coming years as more resources get developed and converted by the experienced Serabi team.

Strong Platform for Growth at Coringa Project

While investors are focused on the improving fundamentals of its producing Palito Complex, Serabi also owns the permitted Coringa gold project located 200km to the south. Coringa already hosts a resource with high-grade zones open along strike and at depth, pointing to exploration upside. The company is currently seeking a development partner which could unlock the value from bringing another operation online to complement Palito. Investors essentially gain exposure to both production and growth from Serabi’s diversified project portfolio in a premier mining jurisdiction.

Conclusion

With the updated reserve estimate and technical report, investors can have greater confidence in both the longevity and economics of Serabi’s Palito operation over at least the next 6 years. The significant conversion of resources to reserves also suggests potential production growth over the coming years as additional underground resources get developed. The company’s exploration success continues to demonstrate the regional potential. Meanwhile, the permitted Coringa project provides additional exposure to resource growth that could become Serabi’s next mining operation with the right development partner. Ultimately, Serabi offers investors production, cash flow growth potential, exploration upside and geographic diversification – all from a seasoned management team focused in the mining-friendly jurisdiction of Brazil.