Mr. Mike Hodgson reports

Q4 & FULL YEAR 2023 PRODUCTION RESULTS AND OPERATING HIGHLIGHTS

Serabi Gold PLC has released the company's fourth quarter (Q4) 2023 and full-year (FY) 2023 production results, operating highlights and FY 2024 production guidance, provided an update on exploration progress and appointed a Toronto-based vice-president, investor relations and business development. All financial amounts are expressed in U.S. dollars unless otherwise indicated.

Quarter highlights:

• Q4 2023 gold production of 7,891 ounces; FY 2023 gold production of 33,153 ounces, a 4.2-per-cent improvement to FY 2022.
  • Coringa contributed 2,694 ounces of gold production in Q4 at mined grades of 6.33 grams per tonne gold.
• Cash held on Dec. 31 was $11.6-million, a 60-per-cent increase over end of year 2022.
• Early exploration success at Matilda under the exploration alliance with Vale yielded an exploration target with an initial conceptual resource potential between 21 million tonnes (Mt) at 0.40 per cent copper up to 81 Mt at 0.28 per cent Cu (this potential volume and grade is conceptual in nature as insufficient exploration has been completed to define a mineral resource and it is uncertain if a mineral resource estimate will be delineated).
• Released an updated mineral reserve estimate for the Palito complex in November, 2023, which estimates 206,400 ounces (824,800 tonnes at 7.78 g/t Au) of proven and probable reserves, a threefold increase on the previous mineral reserve estimate of 67,344 ounces.
• Purchased ore sorter for Coringa from Comex, which is now being transported to site and expected to be operational by Q4 2024.
• Appointed Andrew Khov, CPA, CA, CFA, as its new vice-president, investor relations and business development, based in Toronto, Ont., Canada.

Mike Hodgson, chief executive officer of Serabi, commented:

"A satisfactory fourth quarter means gold production for the year has been 33,153 ounces, which is a 4.2-per-cent improvement to 2022. The process plant continued to perform admirably with a quarterly record of 48,988 milled tonnes, despite unplanned downtime. During the quarter, following successful negotiations with the work force and union, underground hours per shift were increased, the benefits of which are reflected in our quarterly development rates which exceeded 3,000 metres for the first time in 2023.

"There has continued to be significant mine development at Coringa which contributed production of a record 2,694 ounces. The mine is now being worked on four levels, with the newest level, 225mRL, just intersected at the start of 2024. The Coringa orebody continues to exceed expectations with payability of the development significantly better than forecast, and we are planning an underground drill campaign at site during the first half of 2024. Combined with the positive mineral reconciliation we would expect this to expand the mineral resource for Serra and plan to issue a new mineral resource and reserve estimate during the Q3 2024.

"This follows from the new Palito reserve and resource estimate issued in November, 2023, which estimates proven and probable reserves totalling 206,400 ounces (824,800 tonnes at 7.78 g/t Au), a threefold increase on the previously disclosed total of 67,344 ounces as at Dec. 31, 2021.

"Our greenfield exploration efforts at Matilda, being undertaken in partnership with Vale, resulted in an in-house estimation of 81 Mt at 0.28 per cent Cu, including 21 Mt at 0.4 per cent Cu, though it should be cautioned that this potential volume and grade is conceptual in nature as insufficient exploration has been completed to define a mineral resource and it is uncertain if a mineral resource estimate will be delineated. This exploration potential has been generated from 21 drill holes, which totalled 7,598 metres. The 0.40 per cent Cu grades are significant and certainly comparable to commercial porphyry deposit grades. We are focused on scale and the next step will be to further drill and increase the potential size of this prospective deposit. We completed deep geophysics to better target the next round of drilling.

"We look forward to 2024 with great optimism. An excellent geological resource update at Palito, Coringa mine development improving quarter by quarter and with permitting of Coringa expected to reach a positive conclusion, we expect meaningful production growth and continued strong operational cash flow in the next 24 months. Alongside the opportunities afforded by our exciting exploration activities, there should be continued positive news for shareholders over the coming months."

Operational results

Total production for the fourth quarter of 2023 was 7,891 ounces of gold, with Coringa contributing 2,694 ounces to this total.

Total ore mined from the Palito complex during the quarter was 35,497 tonnes at 4.78 g/t compared with 35,219 tonnes at 6.81 g/t of gold for the third quarter of 2023. Palito grades for the year averaged 6.12 g/t gold. Most of the ore is being generated from the Ipe and Mogno veins, but development of the G3 North area is well under way, and this sector will be a significant ore source over the next two years.

Development mining operations at Coringa totalled 14,044 tonnes at 6.33 g/t in the quarter, by far the highest total since the operation commenced. The Coringa ore is being derived from the development of the Serra orebody, part of the Coringa complex, from four levels, and now including the new 225-metre level.

A total of 48,988 tonnes of ROM (run-of-mine) ore were processed through the Palito plant during the quarter, with an average grade of 5.31 g/t of gold, compared with 43,092 tonnes at 6.72 g/t of gold in the third quarter of 2023. This included 13,363 tonnes of Coringa ore at a feed grade of 6.45 g/t gold.

A total of 3,134 metres of horizontal development has been completed across both sites. 2,327 metres of horizontal development was recorded at Palito, of which 1,250 metres was ore development. The balance is the ramp, crosscuts and stope preparation development. Horizontal development at Coringa totalled 807 metres, of which 428 metres was in ore.

Coringa licensing

In July, 2023, the company signed an agreement with representatives of the indigenous communities around Coringa. This agreement confirmed the willingness of key stakeholders to see the project progress and was presented to the court and the other parties involved (environmental secretary, federal attorneys and national mining agency) who agreed to the terms. The indigenous impact report (ECI) will be concluded simultaneously with a plano basico ambiental (PBA) which will define the community programs that the company will undertake over the life of the project. The ECI has now been circulated to all stakeholders for final sign-off.

The July, 2023, agreement has been followed up with meetings with all other interested parties. The court has now ratified a further agreement signed by all stakeholders ((including INCRA (Brazilian Agrarian Reform Institute) and FUNAI (National Indigenous Foundation)) approving the mining and environmental agencies (ANM and SEMAS) to conclude their analysis and issue renewals of the Coringa trial mining licence and accompanying environmental operating licence.

Exploration update

As previously announced in November, 2023, the greenfield exploration activities at Matilda, which are being undertaken in partnership with Vale, have delineated a shallow mineralized zone with an exploration target with a potential range of between 21 Mt at 0.40 per cent Cu up to 81 Mt at 0.28 per cent Cu. In addition to this zone, the system is open to the northwest, southeast and at depth. This potential volume and grade is, however, conceptual in nature as insufficient exploration has been completed to define a mineral resource and it is uncertain if a mineral resource estimate will be delineated. This estimation is derived from the 21 drill holes, which totalled 7,598 metres. Of the 21 holes drilled, 12 have intersected porphyry copper grades in excess of 0.20 per cent copper.

During Q4 2023, drill results received with significant intercepts included:

• Hole 23-MT-010 -- 21.45m at 0.40 per cent Cu and 0.11 g/t gold from 95.55 m;
• Hole 23-MT-015 -- 25 m at 0.34 per cent Cu and 0.09 g/t Au from 107 m;
• Hole 23-MT-016 -- 34 m at 0.34 per cent Cu and 0.10 g/t Au from 142 m.

In addition to the Matilda works, the following exploration was undertaken during the quarter:

• Interpretation of regional airborne geophysics and soil geochemistry which have large-scale (crustal) dilatational feature which hosts at least four new gold and copper prospects.
• A total of 5,500 soil samples collected and part assayed covering over 70 per cent of the Palito complex tenement.
• At Calico North, preliminary results have defined anomalous and consistent gold trends which follow a northwest-southeast structural trend, similar to the Palito deposit, which is just 1.5 kilometres to the north. The results suggest the continuity of the Palito mineralized corridor to the southwest.
• At Isla, a 3.5 km geochemical, northwest-southeast-trending, greater than 300 ppm (parts per million) copper anomaly has been defined, very similar in size and copper values with the ones at the Matilda copper prospect. The copper anomaly also has a coincidental airborne electromagnetic conductivity anomaly.
• Reinterpretation of existing targets has refined the company's understanding and identified potential for epithermal and porphyry-style mineralization at Ganso, Forquilha and Calico targets.

Finance update

Cash balances at the end of December, 2023, were $11.6-million which includes $600,000 of funds held for the Vale exploration alliance. This compares with a cash balance of $15.3-million as at Sept. 30, 2023, and $7.2-million at the end of December, 2022. Cash directly attributable to the group was $10.9-million at Dec. 31, an increase of $3.7-million during the year. The company has a net cash balance of $5-million.

Lower gold production and as a result lower sales volumes, together with increased inventory at the end of the period, resulted in cash received from sales for the period being $3.9-million less that for the third quarter. During the quarter, the company made exceptional payments compared with prior periods for the 13th salary payment that is paid in November and December, provisional profits tax payments for the 2023 tax year, and initial down payments for the ore sorter purchase. Operating costs were also higher as a result of increased usage of diesel for power generation during the start of the wet season.

FY 2024 production guidance

The company expects FY 2024 consolidated gold production of 38,000 to 40,000 ounces.

Appointment of vice-president, investor relations and business development

The company is pleased to announce the appointment of Mr. Khov, CPA, CA, CFA, as its new vice-president, investor relations and business development, based in Toronto, Ont., Canada. Prior to joining Serabi, Mr. Khov served as vice-president, investment banking in mining and metals, at RBC Capital Markets and Raymond James in Toronto where he advised clients ranging from senior producers to early-stage exploration companies on a wide variety of strategic initiatives, including corporate finance, mergers and acquisitions, joint ventures, strategic investments, streaming and royalty transactions, and other initiatives. Mr. Khov previously held equity research positions at Cormark Securities and Canaccord Genuity. Mr. Khov began his professional career at KPMG LLP. He is a chartered professional accountant and holds the chartered financial analyst designation.

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 & Gas Companies dated June, 2009.

We seek Safe Harbor.