Serabi Gold - Unlocking Value with Innovative Low-Cost Growth Plan

• Serabi Gold is focused on advancing their Coringa project in Brazil with a new low-capex growth plan that utilizes ore sorting to produce a pre-concentrate.
• The company has received a 3-year mining license for Coringa and is close to obtaining the installation license for a full processing plant, providing future optionality.
• Ore sorting at Coringa is expected to significantly boost grades and nearly double production to 60,000 oz/year by sending pre-concentrate to the Palito plant, with potential to expand to 70-100,000 oz/year.
• The growth to 60,000 oz/year will be funded from operating cash flow without additional financing. Brownfield exploration could further expand resources.
• The company feels back in control after receiving permits and is excited to demonstrate the impact of the new ore sorting and growth plans starting in Q3/Q4 2024.

About Serabi Gold

Serabi Gold (LSE:SRB) is a Brazil-focused gold mining and exploration company that operates the Palito Mining Complex and is advancing the Coringa Gold Project, both located in the prolific Tapajos gold province of northern Brazil. The company's leadership team, headed by CEO Mike Hodgson, has extensive experience operating in Brazil and a track record of successfully developing and optimizing high-grade, narrow vein underground gold mines.

Interview with Chief Executive Officer, Mike Hodgson

Navigating Challenges & Seizing Opportunities

Like many mining companies, Serabi Gold has had to navigate its share of challenges in recent years, from the impacts of COVID-19 to evolving permitting requirements in Brazil. However, the company's agility and innovative thinking have allowed it to not just overcome obstacles, but to seize opportunities to unlock value for shareholders.

A key turning point came in February 2024, when Serabi secured a 3-year trial mining license for Coringa. CEO Mike Hodgson views this as a huge endorsement from Brazilian authorities and a sign that the company is back in control of its destiny. The trial mining license has an initial 50,000 tonne per year limit, but importantly this is post ore-sorting - equating to 100,000 tonnes of run-of-mine production. The mining agency has already invited Serabi to expand this to 100,000 tonnes, which would represent 200,000 tonnes of pre-sorted material, more than sufficient for the company's plans.

The Game-Changing Coringa Growth Plan

While Serabi continues progressing the full installation license for Coringa that would allow construction of an on-site processing plant, the real game-changer is the company's low-capex "plan B" for the project. Using the newly paved road access to Coringa and the deposit's exceptional amenability to ore sorting, Serabi plans to produce a high-grade pre-concentrate at Coringa and truck it to the underutilized Palito processing plant.

The beauty of this plan is its simplicity, low capital intensity, and scalability.

As Hodgson explains, "We're just better utilizing the Palito plant. That's the beauty about all this. It's a really cheap, capital light way of literally nearly doubling our production."

The company plans to complete a new preliminary economic assessment (PEA) for Coringa in Q3 2024 based on this revised development plan.

Funded Growth & Exploration Upside

Serabi is fully funded to grow production 60,000 ounces per year under the new plan, with operating cash flow funding all capital requirements. There is potential to further expand production to 75,000 ounces by installing an additional ball mill at Palito and ultimately to 100,000 ounces through resource growth. Hodgson sees "blue sky" potential in brownfield exploration, with opportunities to significantly expand resources at both Coringa and Palito.

As Hodgson sums it up, "First pass, get to 60,000 ounces. Second pass, get to 75,000 ounces. Next pass, go to 100,000 ounces organically." This disciplined, staged approach to growth is expected to maximize value while minimizing dilution and financing risk for shareholders.

The Investment Thesis for Serabi Gold

• Serabi offers a rare combination of near-term production growth to 60,000 ounces per year and significant exploration/resource expansion upside
• The Coringa ore sorting plan enables low-cost, rapid growth and optimizes utilization of existing infrastructure - it's an innovative and value-accretive approach
• The company is fully funded for its growth to 60,000 ounces from operating cash flow, with no additional financing requirements
• The revised Coringa PEA in Q3 2024 and ramp-up of ore sorting in Q4 2024 are near-term catalysts to demonstrate the value of the new plan
• Serabi has a strong operating track record in Brazil, an experienced management team, and assets in a prolific gold district - it checks a lot of boxes for a junior producer

Positioned for Success

With permits in hand, an innovative growth plan in place, and a management team that has navigated challenging times, Serabi Gold appears well positioned for an exciting new chapter. CEO Mike Hodgson sees 2024 as a transformative year as ore sorting comes online and the impact of the Coringa growth plan becomes apparent. For investors looking for a junior producer with near-term growth, fully-funded plans, and significant exploration upside, Serabi Gold is a company that deserves a closer look.