Initial plant commissioning proceeds according to plan

For immediate release
23 December 2013
Serabi Gold Plc
("Serabi" or the "Company")
Initial plant commissioning proceeds according to plan

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, today announces the progress of its initial plant commissioning, which has been successfully running since 13  December 2013. The entire plant has been operated on five separate occasions of approximately two hours each, culminating with a three hour test on 19 December.  Approximately 800 tonnes of approximately 5grammes per tonne gold Run of Mine development ore has been crushed to a size of less than 8mm, approximately 200 tonnes of which has passed through the entire process plant.  To date, all sections of the current plant comprising the crushing plant, the ball mill, the gravity concentrator and the flotation sections, have been tested and operated in line with the Board's expectations. Gold concentrate has been produced from the gravity plant and copper/gold concentrate from the flotation plant.  Daily operation and testing is continuing in order to identify any operational issues and to further stress test the plant.

Mike Hodgson, CEO of Serabi, is currently at site overseeing the initial commissioning work, and commented: "It is a testament to our project team, led by General Manager Helio Tavares, and the efforts that they have all made over the last twelve months that we will, as announced, be looking to achieve our first gold production in January 2014.  

"I am very proud that we have achieved this significant milestone in accordance with our original timetable.  As is to be expected, there will be some improvements to be made along the way, and prudently we have considered a reasonable ramp-up of production from early January through the first quarter of 2014.  

"Nevertheless, this successful first week of commissioning, together with approximately 27,000 tonnes of ore stockpiled on surface with an average grade in excess of 8 grammes per tonne of gold, suggest we should be able to achieve our aim of reaching 'life of mine' production rates by the second quarter."

The following link is to a short video showing the plant in operation

http://www.brrmedia.co.uk/event/119610/?popup=true

Enquiries:

Copies of this release are available from the Company's website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.

Qualified Persons Statement

The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, CEO of the Company. Mr Hodgson is an Economic Geologist by training with over 25 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold or copper and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

ENDS