Serabi Gold's Palito Reinterpretation Points to a Potentially Larger Mineralized System

• Serabi Gold drilled 20,831 meters in the first half of 2026 across the Palito Complex and Coringa Mine.
• A structural reinterpretation of the G1-G3 corridor at Palito suggests that several previously isolated structures may form a single continuous system.
• Drilling at Piauí returned a 9.93-meter interval, a broader mineralized envelope than the narrow intersections reported elsewhere in the program.
• Coringa results extend mineralization by more than 200 meters beyond the current underground development at Meio.
• Updated Mineral Resource Estimates (MREs) for both operations are targeted for the first quarter of 2027.

What Has Happened

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) has revised its interpretation of the G1-G3 corridor at the Palito Complex in Pará State, northern Brazil. By combining historical drilling, underground mapping and structural modeling, its exploration team now sees structures previously treated as separate as potentially connected parts of a larger mineralized system. The company has designed drilling for the second half of 2026 to test targets generated by that model. Elsewhere at Palito, a 9.93-meter interval at Piauí points to a broader mineralized envelope with narrower, higher-grade zones, although further modeling is needed to establish its geometry and continuity.

Both developments come from the first half of a 2026 brownfield program that completed 11,522 meters across 37 holes at Palito, out of 20,831 meters drilled across Palito and the Coringa Mine. The full program totals 32,000 meters, with 6 drill rigs operating across the 2 sites and completion targeted for October 2026. All validated results will be incorporated into updated Mineral Resource Estimates (MREs) for both operations, targeted for the first quarter of 2027. 

What the G1-G3 Reinterpretation Changes

Serabi previously treated several mineralized structures along the G1-G3 corridor as isolated. The exploration team integrated historical drill data with underground mapping and rebuilt the structural model. The new framework accounts for structural offsets, branching vein systems and dilation zones that earlier interpretations had not recognized. Those features suggest the structures may belong to a single, more continuous system.

The revision changes where Serabi drills. Drilling can target the offsets, branches and dilation zones between known zones instead of treating each structure as a stand-alone target. The company states that the revised model may positively impact future exploration targeting and resource estimation, and the reinterpretation has already produced new structural drill targets.

G3 supplies the most recent data points along the corridor. One hole returned 1.01 meters at 7.41 grams per tonne gold from 431.09 meters downhole, including 0.36 meters at 13.11 grams per tonne, and a second interval of 1.39 meters at 6.13 grams per tonne from 483.61 meters, including 0.25 meters at 23.55 grams per tonne, also an internal result. A second hole returned 0.36 meters at 4.75 grams per tonne, an assay received from ALS. Serabi has planned its G3 drilling around these intercepts.

Piauí & the Wider Palito Results

Piauí is a separate target, and its result does not test continuity across G1-G3. One hole intersected 9.93 meters at 1.06 grams per tonne of gold from 79.07 meters downhole. That interval included 2 internal intervals of 0.25 meters at 6.26 grams per tonne and 0.25 meters at 4.95 grams per tonne. Another Piauí hole added 0.40 meters at 3.20 grams per tonne. With other mineralized intersections from surrounding holes, the result supports the interpretation of a broader mineralized envelope containing discrete higher-grade zones. Ongoing geological modeling is evaluating the geometry and continuity of the Piauí system.

Piauí also stands out for width. The other highlighted Palito intercepts from 2026 range from 0.25 to 1.39 meters, so the 9.93-meter interval describes a different style of mineralization from the narrow high-grade structures reported elsewhere on the complex. Senna, Massa and Tatu all returned narrow high-grade intersections, with continuity still to be established at the early-stage Tatu target. Serabi states that results to date have supported a number of new prospective models and reinterpretations. The exploration team is now concentrating on specific priority trends while maintaining continuous coverage of the main zones.

Testing the Model & Validating the Assays

Serabi has designed a diamond drilling program for the second half of 2026 to test priority targets generated by the revised G1-G3 model. The planned holes will add drill data on whether structures previously treated as separate connect through the offsets, branches and dilation zones the model incorporates. The program is targeting completion in October 2026. The MREs targeted for the first quarter of 2027 will incorporate all validated results from the 2026 program.

The Chief Executive Officer of Serabi, Mike Hodgson, tied the drilling to the company's production plans:

"Today's published high-grade drill results demonstrate the potential to delineate a larger resource at both Palito and Coringa to support production growth."

Assay status determines which results reach the resource estimate. Serabi sends all drill samples to ALS, and a "Palito Result" is an internal assay from the company's on-site laboratory that is still awaiting ALS results. Since mid-2019, more than 10,000 exploration drill core samples have been assayed at both the Palito laboratory and a certified external laboratory, in most cases ALS in Belo Horizonte, Brazil. For assays above 1 gram per tonne, the Palito laboratory over-estimated grade by an average of 6.7% relative to external results over that period. Serabi expects that independent authors of any future resource statement would not use Palito assay results without sufficient duplicates from a certified laboratory. Most 2026 Palito highlights already carry ALS results, and the 2 G3 intervals grading 7.41 and 6.13 grams per tonne are the exception.

The MRE update will build on a base expanded by the 2025 program. That program lifted consolidated Measured and Indicated resources to 730,800 ounces of contained gold and consolidated Inferred resources to 653,300 ounces. Serabi is in the second year of its Phase II organic growth strategy, which targets a total mineral inventory above 1.5 million ounces. Palito has consistently produced 30,000 to 40,000 ounces of gold per year.

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What to Watch Next

The second-half drilling at G1-G3 is the next test of the revised model, alongside ALS results for the 2 internally assayed G3 intervals. At Piauí, ongoing geological modeling will define the geometry and continuity of the broader mineralized envelope.

The 32,000-meter program is targeting completion in October 2026. Updated MREs for Palito and Coringa are targeted for the first quarter of 2027. That update will show whether the revised G1-G3 interpretation carries into Serabi's reported mineral inventory.

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