SBI Serabi Gold Plc

Serabi Gold plc (AIM: SRB) (TSX: SBI), the Brazilian focused gold mining and exploration company announces its second operational update on progress with the development and start-up of gold mining operations at its 100 per cent owned high-grade Palito gold mine, located in Para state.

Highlights:

• Completed dewatering of the mine in January 2013
• New mine management and technical team commenced in mid-January
• First items of mining fleet arrived at site on 15 February 2013
• Initial contract mining personnel also arrived at site on 15 February 2013
• Remediation of the crushing and flotation sections of the process plant underway
• Detailed engineering design underway on milling circuit and cyanidation plant

Together with the completion of the mine dewatering in January 2013, the Company finalised the recruitment of an experienced mine management and technical team who will oversee all aspects of the planning, rehabilitation and underground operational mining activities at the Palito Mine. These four key personnel all have proven experience in high grade narrow vein mine management. They arrived at site in mid-January and under their supervision and with the mine dry, reinstatement of the underground mine services is now well underway.

The first items of the mining fleet comprising a drill rig and underground loader have also now been delivered to site at the same time as the arrival of the initial group of mining contractors. As a result remediation of existing underground haulage routes and work on new mine development accesses and galleries is expected to be underway before the end of February.

In parallel with the progress on development of the underground mine, work on the remediation of the process plant is underway. Necessary repairs and overhaul of the crushing plant and flotation sections have commenced, with the crushing plant having been largely dismantled for renovation. The remainder of the process plant -- the milling, cyanidation and elution circuits -- is undergoing a detailed engineering study which should be completed by the end of March 2013 in order for construction to commence shortly thereafter.

In anticipation of a progressive increase in staffing levels over the coming months, new pre-fabricated accommodation units have been ordered and will be functional by mid-year. These will complement the existing accommodation facilities and allow the company to improve the overall standard of accommodation that it provides to its employees. Civil works to locate this accommodation have commenced.

Mike Hodgson CEO said 'Dewatering the mine was the first milestone to be achieved, and being ahead of schedule has allowed the Company to begin, earlier than originally planned, the next key phase of mine remediation and development.

The placing of orders for long lead items and their early arrival along with the first mining contractors gives us the opportunity to commence development mining ahead of the timetable anticipated by the PEA study.

I am delighted that we have been able to recruit an excellent mining management team with a collective experience in narrow vein mining of over 70 years. Their impact is already clearly being seen in the progress that we are making at Palito. Our intention remains to generate a stockpile ahead of starting up the process plant, which we still anticipate will occur during the latter part of the fourth quarter of 2013'

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

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 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.

Qualified Persons Statement The information contained within this announcement has been reviewed and verified 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.

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

Enquiries: Serabi Gold plc Michael Hodgson Chief Executive Tel: +44 (0)20 7246 6830 Mobile: +44 (0)7799 473621 Clive Line Finance Director Tel: +44 (0)20 7246 6830 Mobile: +44 (0)7710 151692 Email: contact@serabigold.com Website: www.serabigold.com Beaumont Cornish Limited Nominated Adviser Roland Cornish Tel: +44 (0)20 7628 3396 Michael Cornish Tel: +44 (0)20 7628 3396 Fox Davies Capital Ltd UK Broker Simon Leathers Tel: +44 (0)20 3463 5010 Jonathan Evans Tel: +44 (0)20 3463 5010 Blythe Weigh Communications Ltd Public Relations Tim Blythe Tel: +44 (0)20 7138 3204 Mobile: +44 7816 924626 Rob Kellner Tel: +44 (0)20 7138 3204 Mobile: +44 7800 554377