Mr. Mike Hodgson reports

ROBUST PRODUCTION FOR THIRD QUARTER OF 2023

Serabi Gold PLC has released operational results for the third quarter of 2023 and has provided a review of its development and exploration activities.

Quarter highlights:

• Serabi's operational improvement continues with third quarter gold production totalled 8,738 ounces, a 3-per-cent improvement on the second quarter in 2023 and the highest quarterly total for 2023.
• Mined tonnage was 44,744 tonnes, the highest quarterly total for the year to date, with average grades of 6.69 grams per tonne gold.
• Palito mined grades for the quarter were the highest this year at 6.81 g/t gold.
• Coringa mine development has continued to contribute significantly with mined grades of 5.99 g/t gold. The development ore transported to Palito plant contributed over 1,700 ounces of gold production for the quarter.
• Significant increase in Canadian National Instrument 43-101 compliant resources for Palito (June 30, 2023) confirms production longevity.
  • Measured and indicated (M&I) resource of 377,800 ounces of contained gold, an increase of 50 per cent compared with December, 2021;
  • Inferred resource of 153,900 ounces (682,400 tonnes at an average in situ grade of 7.01 g/t).
• A 93-per-cent increase in average reported grade of the M&I resources at Palito complex from 5.23 g/t to 10.08 g/t.
  • A 45-per-cent increase in average reported grade of the inferred resource 4.83 g/t to 7.01 g/t.
• The Vale exploration alliance continues to progress well with over 11,400 metres of drilling, which included 20 holes now drilled at the Matilda copper target. Other regional targets Calico, Ganso, Forquilla and Cinderella have also had initial drill testing, with results still awaited.
• Cash held on Sept. 30 was $15.3-million (U.S.) ($14.7-million (U.S.) net of cash held under the Vale exploration alliance) compared with $13.3-million (U.S.) as at June 30, 2023.
• Net cash attributable to the group has increased by $2.4-million (U.S.) in the third quarter.

Mike Hodgson, chief executive officer of Serabi, commented:

"An excellent third quarter of 8,738 ounces gold production, our best quarter of the year which builds on the previous two quarters and results in a total for the year of more than 25,000 ounces, keeping the company on course to meet its guidance for this year of between 33,500 to 35,000 ounces. Not only was it a good quarter for production, but our development rates also remained high, so critical for an underground operation, with approximately 3,000 metres of horizontal development reported.

"Coringa development continues to be very significant, now having contributed over 6,100 ounces of gold production this year. The Coringa orebody continues to exceed expectations with payability of the development remaining very high. Simplistically put, we encounter very limited low-grade or waste zones as we advance, and this means the amount of development we need to do per ounce of gold is lower than forecast.

"The results of the updated geological resource announced on Oct. 6, 2023, were excellent. The new geological resource at Palito also means that Serabi has achieved that milestone of breaking through a total mineral resource inventory of one million oz of gold.

"This is also the first time a total mineral resource inventory at Palito has exceeded 500,000 ounces, and the grades in each category have improved significantly. These latest figures illustrate what a long-life asset Palito can be. With a maiden global mineral resource in 2004 of 440,000 ounces mineral resource, and more than 400,000 ounces mined since that time, to still have a total mineral resource inventory of over 500,000 ounces, clearly demonstrates the geological potential of the deposit.

"We remain sharply focused on building to the future which we believe looks very bright, particularly the opportunity to unlock Coringa's potential to deliver meaningful production and cash flow growth. This is coupled with our highly exciting exploration activities in the region. We look forward to providing further updates."

Operational results

Total production for the third quarter of 2023 was 8,738 ounces. Coringa contributed 1,713 ounces to this total.

Total ore mined from the Palito complex during the quarter was 35,219 tonnes at 6.81 g/t compared with 31,652 tonnes at 6.68 g/t of gold for the second quarter of 2023. Palito grades of 6.81 g/t gold are the highest for the year to date. Most of the ore is being generated from the Ipe and Mogno veins, but development of the G3 North block has also now commenced. This looks very encouraging and is expected to be an increased source of production ounces in 2024 to 2025.

Development mining operations at Coringa generated a total of 9,525 tonnes at 5.99 g/t in the quarter. The Coringa ore is being derived from the development of the Serra orebody, part of the Coringa complex, from the 290-metre level and the recently intersected 260-metre level.

A total of 43,092 tonnes of ROM (run-of-mine) ore were processed through the Palito plant during the quarter, with an average grade of 6.72 g/t of gold, compared with 41,116 tonnes at 6.84 g/t in the second quarter of 2023. This included 8,577 tonnes of Coringa ore at a feed grade of 6.37 g/t gold.

A total of 2,923 metres of horizontal development has been completed across both sites. At Palito, 2,325 metres of horizontal development was recorded, of which 1,256 metres was ore development. The balance is the ramp, crosscuts and stope preparation development. Horizontal development at Coringa totalled 598 metres, of which 268 metres was in ore.

Coringa licensing

In July, 2023, the company signed an agreement with the indigenous communities around Coringa. This has resulted in a six-month suspension of a prior court decision which restricted the ability of government agencies to issue new permits at Coringa before an indigenous study report (ECI) was completed and fully accepted. This July agreement confirmed the willingness of all stakeholders to see the project progress. The ECI will be followed by a plano basico ambiental (PBA) which will define the community programs that the company will undertake over the life of the project. The intention is that the ECI and PBA completion can be achieved in this six-month suspension period. Completion of the ECI itself will allow the court process to be extinguished and clear the way for the installation licence (LI) to be granted.

Exploration update

The Vale exploration alliance continues to progress well with multiple exploration activities continuing across a number of key target areas of the Palito tenement package, including over 11,400 metres of surface drilling now completed. Results of the first seven holes so far received of the initial 20 holes drilled at the Matilda copper target have been very encouraging. Holes 4 and 6 are the highlight holes, with hole 4 recording an intersection of 0.49 per cent Cu over 60 metres. Assay results from the remaining holes are eagerly awaited. During the quarter a terrestrial induced polarization (IP) geophysics program over the Matilda target was commenced, which encompasses the drilled area to date and beyond.

Three contractor diamond drill rigs are in operation, having completed a total of 11,400 metres out of 14,000 metres planned. Twenty holes out of this total have been drilled at Coringa from two rigs, testing the Matilda copper porphyry target.

As reported in September, 2023, results for the first seven holes have been received, with the highlight holes being:

• 23-MT-004 -- 59.45 m at 0.49 per cent Cu and 0.13 part per million Au from 29.85 m (including 6.93 m at 0.95 per cent Cu and 0.28 ppm Au from 78 m);
• 23-MT-006 (full results) -- 13.81 m at 0.47 per cent Cu and 0.10 ppm Au from 200.95 m.

Forty kilometres of IP is continuing at Matilda. The IP lines are covering the initial drilling and beyond, with the lines initially at 400-metre spacing. The objective is to calibrate IP anomalies with drill results, in order to better target the next phase of drilling.

Samples from the remaining holes have been sent to an independent laboratory for multielement assays.

Drilling has also been undertaken on the Ganso, Calico and Cinderella targets.

Systematic auger drilling is being undertaken with 842 metres out of a program of 1,725 metres completed.

A total of 5,500 soil samples are programmed in regional grids of 400 to 800 metres by 100 metres for completion by year-end. To date, 71 per cent of the program has been executed with samples sent for assaying. Soils are being initially tested with a hand-held XRF (X-ray fluorescence) and delivering some interesting results. Following the receipt of results from the external laboratory, further mapping activities and a drilling program will be considered.

Finance update

Cash balances at the end of September, 2023, were $15.3-million (U.S.) which includes $600,000 (U.S.) of funds held for the Vale exploration alliance. This compares with a cash balance of $13.3-million (U.S.) as at June 30, 2023, and $7.2-million (U.S.) at the end of December, 2022. Cash directly attributable to the group was $14.7-million (U.S.) at Sept. 30, an increase of $7.5-million (U.S.) during the first nine months of the year.

Qualified person statement

The scientific and technical information contained within this announcement has been reviewed and approved by Mr. Hodgson, a director of the company. Mr. Hodgson is an economic geologist by training with over 30 years experience in the mining industry. He holds a BSc (honours), geology, University of London, an 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 U.K., recognizing him as both a qualified person for the purposes of Canadian National Instrument 43-101 and by the Alternative Investment Market guidance note on mining and oil and gas companies dated June, 2009.

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