SERABI GOLD plc

("Serabi" or "the Company")

Drilling Update

Shallow Infill Drilling at Piaui Provides Further Encouragement of Potential

Serabi Gold plc (AIM:SRB, TSX:SBI and SBI.WT), the Brazilian focused gold exploration Company, is pleased to announce encouraging preliminary analytical results from a shallow infill drilling programme on the Piaui Prospect located at its 100% owned Jardim do Ouro project in the Tapajos region.

As previously announced, the Company has been experiencing delays in receiving assay results from the independent laboratory used by the Company, and the preliminary analytical results set out below from infill and extension drilling at the Piaui Prospect have been returned from the Companys own on-site analytical laboratory at the Palito mine (see footnote - Preliminary Assay Results).

Shallow infill drilling commenced in October on the promising Piaui propect and 2,600 metres of a shallow diamond drilling programme across 23 drill holes has been recently completed (PDD0495-PDD0501, PDD0503-PDD0517).

All samples have also been submitted to ALS Chemex of Vancouver and results of this final analysis will be released in due course.

 

Mike Hodgson, Chief Executive, commented:

"Piaui represents a previously concealed ore body and as such is unlikely to have been discovered had it not been for our aerial geophysical programme.

 Previously announced geochemical and drilling results over a 300m strike length indicated good grades at shallow depths including results of 1.93 metres @ 22.86g/t Au, 10.7 metres @ 1.17 g/t Au, 9.1 metres @ 2.24 g/t Au, 3.2 metres @ 16.16 g/t Au and 4.5 meters @ 2.75 g/t Au, and highlighted the possibility of wider intersections than we have encountered at Palito.

 The latest preliminary results continue to confirm the potential of Piaui to host broader width near-surface mineralization with good gold grades, over a significant strike length".

The recent drilling follows the successful Phase 1 results together with the highly encouraging results from the ground-based geophysical Induced Polarisation survey undertaken (as announced on 12 September 2011), which indicated that the strike length of the Piaui discovery could now extend up to 1,400 metres.

 To date, the drilling, which has now been undertaken over two areas of 600 metres and 350 metres within the overall 1,400 metre potential strike length of the prospect, continues to intersect broad zones of intense chlorite/silica/sulfide alteration zones in excess of 40 metres which demonstrate the passage of a significant amount of mineralized fluid.

 Preliminary on-site analytical results returned to date indicate a very fertile mineralized system, with indications that the system remains open at depth.

Significant preliminary results (subject to confirmation by ALS Chemex) returned to date include:

Prospect	Hole	East	North	RL	Hole Depth	Dip/Azm	From	To	Width	Au
		(UTM)	(UTM)	(UTM)	(m)		(m)	(m)	(m)	g/t
Piaui	PDD0495	633760	9300260	222.97	244.50	-55/210	111.62	113.50	1.88	0.36
Piaui	PDD0497	633246	9300573	235.66	191.05	-52/211	51.50	52.00	0.50	0.94
							66.69	67.22	0.53	1.14
							103.77	104.84	1.07	0.49
Piaui	PDD0498	633900	9300105	204.55	111.70	-50/210	40.98	41.70	0.72	3.63