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Serabi Gold plc : Unaudited Interim Financial Results and MD&A to 30 June 2017

Mon 14th August, 2017 7:00am
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For immediate release
            14 August 2017

Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three and six month periods to 30
June 2017 and Management's Discussion and Analysis

Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and
development company, today releases its unaudited interim financial results
for the three and six month periods ending 30 June 2017 and at the same time
has published its Management's Discussion and Analysis for the same period.

Key Financial Information

 SUMMARY FINANCIAL STATISTICS FOR THE THREE AND SIX MONTHS ENDING 30 JUNE 2017                                                                                            
                                                   3 months to 30 June 2017 US$  6 months to 30 June 2017 US$  3 months to 30 June 2016 US$  6 months to 30 June 2016 US$ 
 Revenue                                                             10,142,676                    23,316,260                    14,232,086                    25,911,175 
 Cost of Sales                                                      (6,849,960)                  (16,862,310)                   (8,923,316)                  (15,612,822) 
 Depreciation and amortisation charges                              (2,710,157)                   (4,610,861)                   (2,428,213)                   (3,644,940) 
 Gross profit                                                           582,559                     1,843,089                     2,880,557                     6,653,413 
                                                                                                                                                                          
 Profit / (loss) before tax                                           (794,176)                     (827,667)                        60,924                     1,562,228 
 Profit after tax                                                     (891,637)                   (1,005,680)                     (341,483)                     1,006,182 
 Earnings per ordinary share (basic)                                    (0.13c)                       (0.15c)                       (0.05c)                         0.15c 
                                                                                                                                                                          
 Average gold price received                                                                         US$1,221                                                    US$1,216 
                                                                                                                                                                          
                                                                                                                         As at 30 June 2017             As at 31 Dec 2016 
 Cash and cash equivalents                                                                                                        3,832,218                     4,160,923 
 Net assets                                                                                                                      61,894,630                    63,378,973 
                                                                                                                                                                          
 Cash Cost and All-In Sustaining Cost ("AISC")                                                                                                                            
                                                                                                                   6 months to 30 June 2017      6 months to 30 June 2016 
 Gold production for cash cost and AISC purposes                                                                                     18,009                        19,667 
                                                                                                                                                                          
 Total Cash Cost of production (per ounce)                                                                                           US$819                        US$763 
 Total AISC of production (per ounce)                                                                                              US$1,072                        US$945 

Key Operational Information

                                                SUMMARY PRODUCTION STATISTICS FOR THE TWO QUARTERS TO 30 JUNE 2017                              
                                                       Quarter 1  Quarter 2  Year to Date  Quarter 1  Quarter 2  Quarter 3  Quarter 4   Total   
                         2017              2017                      2017        2016         2016       2016       2016       2016    
 Horizontal development - Total      Metres              2,251      1,855        4,106       2,925      2,941      2,649      2,694     11,209  
                                                                                                                                                
 Mined ore - Total                   Tonnes              36,918     42,075      78,993       37,546     33,606     43,133     44,579   158,864  
                                     Gold grade (g/t)    10.12       7.80        8.89        11.02       9.56       9.61       8.94      9.74   
                                                                                                                                                
 Milled ore                          Tonnes              46,663     43,905      90,568       36,615     39,402     42,464     40,485   158,966  
                                     Gold grade (g/t)     7.09       6.26        6.69         8.58       8.17       8.08       7.60      8.11   
 Gold production ((1) (2))           Ounces              9,861      8,148       18,009       9,771      9,896      10,310     9,413     39,390  
1. Gold production figures are subject to amendment pending final agreed
assays of the gold content of the copper/gold concentrate and gold doré that
is delivered to the refineries. 
2. Gold production totals for the first six months of 2017 include treatment
of 4,042 tonnes of flotation tails.
Financial Highlights
* Cash Cost for the year to date of US$819. 
* All-In Sustaining Cost for the year to date of US$1,072. 
* Temporary operational issues in Q2 2017, which have now been fully resolved,
restricted production and, in combination with a strengthening Brazilian Real,
impacted financial results for the first half of the year. 
* Gross profit from operations for the first six months of 2017 of US$1.84
million. 
* Loss per share of 0.15 cents for the first six months of 2017. 
* Cash holdings of US$3.83 million at 30 June 2017. 
* The Company has entered into a new US$5 million facility with Sprott
Resource Lending Partnership for a term expiring on 31 December 2019. 
* Average gold price of US$1,221 received on gold sales in the first six
months of 2016.
2017 Guidance
* Serabi remains on track to meet forecast gold production for 2017 of
approximately 40,000 ounces at an All-In Sustaining Cost of US$950 to US$975
per ounce.
Operational Highlights
* Second quarter production of 8,148 ounces of gold.   
* Mine production totalled 42,075 tonnes at 7.80 grammes per tonne ("g/t") of
gold.  
* 43,905 tonnes processed through the plant for the combined mining
operations, with an average grade of 6.26 g/t of gold. 
* 1,855 metres of horizontal mine development completed in the quarter. 
* At the Palito sector, expansion of working areas continues, with development
and production now coming from eight veins from the 25 included in the
geological resource.   The main ramp has now reached the -50 metre relative
level ("mRL"), with the G3 vein intersected, the deepest working area in the
deposit.  To date grades have been very encouraging.    
* At the Sao Chico sector, the main ramp has now been deepened to the 40mRL,
approximately 200 vertical metres below surface.   Production is coming from
the 140mRL and 128mRL levels with levels 116mRL, 100mRL, 86mRL, 70mRL, 56mRL
and with the 40mRL now being developed, development remains well ahead of
production. 
* By the end of the second quarter, surface ore stocks were approximately
12,000 tonnes (31 March 2017: 13,000 tonnes) with an average grade of 3.15 g/t
of gold. 
* SRK Ltd hired to commence a new 43-101 Technical Report on the property,
hopefully to be issued early Q4, 2017. 
 Mike Hodgson, CEO of Serabi commented,   "As I noted in the Company's
announcement of its second quarter production, the Company has achieved
mid-year production of over 18,000 ounces of gold and I remain very satisfied
with the production results for the year to date and the prospects for the
rest of the year.   "The operational issues that we encountered and
restricted gold production in April and May, are now fully resolved, and June
and July has seen production levels return to those levels that we achieved
through much of 2016 and during the first quarter of 2017.  Furthermore, the
month of July was the highest monthly production for the year to date and I
remain confident that we can recover shortfall over the remainder of the year
and will be able to meet our full year production guidance of 40,000 ounces.
  "Nonetheless, in the short term, the production shortfalls during that six
week period have impacted on our financial results for the second quarter of
the year.  Whilst at the operating level the Company has reported a gross
profit of approximately US$580,000 and a gross profit to date of US$1.8
million, revenue is probably some US$2 million lower than we might have
expected had production in the second quarter mirrored that of the first
quarter of 2017.  That being said, if, I as I expect, we recover this lost
production through the second half of the year, we should recover the lost
revenue and cash flow with relatively low increase in operating cost and
therefore see a stronger financial performance in the second half of the year.
  "The results when compared against 2016 have also been adversely affected
by the relative strength of the Brazilian Real.  The average rate for the
first six months of 2017 is 14 per cent stronger than for the same period in
2016 which has the effect of increasing operating costs when reported in US
Dollars.  In fact, when looked at in local currency terms, our operating
costs are in fact tracking slightly lower than in 2016 notwithstanding that
the mined and processed ore tonnages have been higher in the first six months
of 2017 than for the same six months period in 2016.   "Our cash balances
remain relatively strong but again the production shortfalls have not allowed
us to build up our cash balances to the extent that we had hoped although
considering timing differences of sales receipts, particularly in relation to
sales of concentrate, the cash position is approximately US$1 million better
than at the start of the year.   "The Company has, at the period end, taken
out a new working capital loan facility with Sprott Resource Lending
Partnership of US$5 million which is for a 30 month period.  The new funding
from this was not, however, received until early July so is not reflected in
our cash holdings as at 30 June 2017.  This loan funding will allow the
Company to expedite some of its capital investment programmes that it feels
will improve operations and bring costs efficiencies in the medium term and
thus reduce unit production costs.    "Some of the areas of investment focus
on improving the quality of the mill feed.  This includes a reduction in the
size of the underground development drives and continuing the trials on ore
sorting using x-ray technology to further eliminate waste and low grade ore in
the mill feed before it enters the plant.   "Despite our success with narrow
vein mining, development still produces high and unavoidable levels of low
grade and waste material.  This not only increases costs but this waste
material consumes vital capacity within the process plant.  Reducing the size
of underground development galleries is now more of a reality with the
availability of numerous suppliers manufacturing smaller units of equipment
than were available when we re-opened Palito in 2013.  The idea is to
initially purchase two to three units for trial and, if successful, more to
follow.   "These ore sorting initiatives are very exciting and, I feel, could
bring a paradigm shift to vein mining in the region.  We will seek to reduce
as much dilution as we can in the mining process, but inevitably cannot remove
all of it.  If ore sorting can be successfully introduced the ramifications
are very significant, with the potential to reduce feed tonnage and
concurrently increase the grade of the ore delivered to the process plant."
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income

                                                                                                                                                           
                                                                               For the three months ended 30 June      For the six months ended 30 June    
                                                                             
                                                                                            2017                2016               2017               2016 
 (expressed in US$)                                                   Notes          (unaudited)         (unaudited)        (unaudited)        (unaudited) 
 CONTINUING OPERATIONS                                                                                                                                     
 Revenue                                                                              10,142,676          14,232,086         23,316,260         25,911,175 
 Cost of sales                                                                       (6,849,960)         (8,923,316)       (16,642,310)       (15,612,822) 
 Provision for Impairment of Inventory                                                         -                   -          (220,000)                  - 
 Depreciation of plant and equipment                                                 (2,710,157)         (2,428,213)        (4,610,861)        (3,644,940) 
 Gross profit                                                                            582,559           2,880,557          1,843,089          6,653,413 
 Administration expenses                                                             (1,178,903)         (1,412,120)        (2,420,358)        (2,544,320) 
 Share based payments                                                                  (112,412)            (25,640)          (178,032)          (148,756) 
 Gain on disposal of assets                                                              115,975              24,401            115,975             26,969 
 Operating profit                                                                      (592,781)           1,467,198          (639,326)          3,987,306 
 Foreign exchange loss                                                                 (167,236)            (31,609)          (120,399)           (72,408) 
 Finance expense                                                                        (34,194)         (1,374,699)           (68,011)        (2,352,739) 
 Finance income                                                                               35                  34                 69                 69 
 (Loss) / profit before taxation                                                       (794,176)              60,924          (827,667)          1,562,228 
 Income tax expense                                                                     (97,461)           (402,407)          (178,013)          (556,046) 
 (Loss) / profit for the period from continuing operations ((1) (2))                   (891,637)           (341,483)        (1,005,680)          1,006,182 
                                                                                                                                                           
 Other comprehensive income (net of tax) Items that may be reclassified subsequently to profit or loss                                                     
 Exchange differences on translating foreign operations                              (2,124,542)           5,349,439          (656,695)          9,629,568 
 Total comprehensive income/(loss) for the period ((2))                              (3,016,179)           5,017,956        (1,662,375)         10,635,750 
                                                                                                                                                           
 (Loss) / profit per ordinary share (basic) ((1))                       3                (0.13c)             (0.05c)            (0.15c)              0.15c 
 (Loss) / profit per ordinary share (diluted) ((1))                     3                (0.13c)             (0.05c)            (0.15c)              0.14c 

(1) All revenue and expenses arise from continuing operations.

SERABI GOLD PLC
Condensed Consolidated Balance Sheets

                                                    As at         As at         As at 
                                                  30 June       30 June   31 December 
                                                     2017          2016          2016 
 (expressed in US$)                           (unaudited)   (unaudited)     (audited) 
 Non-current assets                                                                   
 Deferred exploration costs                     9,868,205     9,550,074     9,990,789 
 Property, plant and equipment                 43,557,012    46,927,210    45,396,140 
 Deferred taxation                              3,133,428             -     3,253,630 
 Total non-current assets                      56,558,645    56,477,284    58,640,559 
 Current assets                                                                       
 Inventories                                    6,844,757     9,520,851     8,110,373 
 Trade and other receivables                    2,865,877     7,783,763     1,233,049 
 Prepayments and accrued income                 5,166,612     4,348,014     3,696,550 
 Cash and cash equivalents                      3,832,218     4,774,537     4,160,923 
 Total current assets                          18,709,464    26,427,165    17,200,895 
 Current liabilities                                                                  
 Trade and other payables                       5,330,772     6,480,142     4,722,139 
 Interest bearing loan                          1,371,489     2,516,667     1,371,489 
 Convertible loan facility                              -     1,892,624             - 
 Trade and asset finance facilities             1,338,475     7,608,526     1,592,568 
 Derivative financial liabilities                 650,000     1,577,832             - 
 Accruals                                         512,649       443,601       635,446 
 Total current liabilities                      9,203,385    20,519,392     8,321,642 
 Net current assets                             9,506,079     5,907,773     8,879,253 
 Total assets less current liabilities         66,064,724    62,385,057    67,519,812 
 Non-current liabilities                                                              
 Trade and other payables                       2,133,294     2,298,786     2,211,078 
 Provisions                                     1,824,472     2,309,908     1,851,963 
 Interest bearing liabilities                     212,328       208,212        77,798 
 Total non-current liabilities                  4,170,094     4,816,906     4,140,839 
 Net assets                                    61,894,630    57,568,151    63,378,973 
 Equity                                                                               
 Share capital                                  5,540,960     5,263,182     5,540,960 
 Share premium reserve                          1,722,222             -     1,722,222 
 Option reserve                                 1,332,578     1,136,509     1,338,652 
 Other reserves                                 3,404,624       361,461     3,051,862 
 Translation reserve                         (31,264,543)  (29,596,967)  (30,607,848) 
 Retained earnings                             81,158,789    80,403,966    82,333,125 
 Equity shareholders' funds                    61,894,630    57,568,151    63,378,973 

The interim financial information has not been audited and does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. Whilst
the financial information included in this announcement has been compiled in
accordance with International Financial Reporting Standards ("IFRS") this
announcement itself does not contain sufficient financial information to
comply with IFRS.  The Group statutory accounts for the year ended 31
December 2016 prepared under IFRS as adopted in the EU and with IFRS and their
interpretations adopted by the International Accounting Standards Board will
be filed with the Registrar of Companies following their adoption by
shareholders at the next Annual General Meeting. The auditor's report on these
accounts was unqualified but did contain an Emphasis of Matter with respect to
the Company and the Group regarding Going Concern.  The auditor's report did
not contain a statement under Section 498 (2) or 498 (3) of the Companies Act
2006.

SERABI GOLD PLC
Condensed Consolidated Statements of Changes in Shareholders' Equity

 (expressed in US$)                                             Share      Share  Share option           Other   Translation  Accumulated               
                                                              capital    premium       reserve  reserves ((1))       reserve         loss  Total equity 
 Equity shareholders' funds at 31 December 2015 (audited)   5,263,182          -     2,747,415         450,262  (39,226,535)   77,549,321    46,783,645 
 Foreign currency adjustments                                       -          -             -               -     9,629,568            -     9,629,568 
 Profit for the period                                              -          -             -               -             -    1,006,182     1,006,182 
 Total comprehensive income for the period                          -          -             -               -     9,629,568    1,006,182    10,635,750 
 Warrants lapsed                                                    -          -             -        (88,801)             -       88,801             - 
 Share options lapsed in period                                     -          -   (1,759,662)               -             -    1,759,662             - 
 Share option expense                                               -          -       148,756               -             -            -       148,756 
 Equity shareholders' funds at 30 June 2016 (unaudited)     5,263,182          -     1,136,509         361,461  (29,596,967)   80,403,966    57,568,151 
 Foreign currency adjustments                                       -          -             -               -             -            -             - 
 Loss for the period                                                -          -             -               -             -            -             - 
 Total comprehensive income for the period                          -          -             -               -             -            -             - 
 Transfer to taxation reserve                                       -          -             -       2,690,401             -  (2,690,401)             - 
 Shares Issued in period                                      277,778  1,722,222             -               -             -            -     2,000,000 
 Release of fair value provision on convertible loan                -          -             -               -             -    1,195,450     1,195,450 
 Share option expense                                               -          -             -               -             -            -             - 
 Equity shareholders' funds at 31 December 2016 (audited)   5,540,960  1,722,222     1,338,652       3,051,862  (30,607,848)   82,333,125    63,378,973 
 Foreign currency adjustments                                       -          -             -               -     (656,695)            -     (656,695) 
 Loss for the period                                                -          -             -               -             -  (1,005,680)   (1,005,680) 
 Total comprehensive income for the period                          -          -             -               -     (656,695)  (1,005,680)   (1,662,375) 
 Transfer to taxation reserve                                       -          -             -         352,762             -    (352,762)             - 
 Share options lapsed in period                                     -          -     (184,106)               -             -      184,106             - 
 Share option expense                                               -          -       178,032               -             -            -       178,032 
 Equity shareholders' funds at 30 June 2017 (unaudited)     5,540,960  1,722,222     1,332,578       3,404,624  (31,264,543)   81,158,789    61,894,630 
1. Other reserves comprise a merger reserve of US$361,461 and a taxation
reserve of US$2,337,639 (31 December 2016: merger reserve of US$361,461 and a
taxation reserve of US$2,690,401)
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements

                                                                                                    For the three months ended 30 June       For the six months ended 30 June     
                                                                                                                 2017                             2016         2017          2016 
 (expressed in US$)                                                                                       (unaudited)                      (unaudited)  (unaudited)   (unaudited) 
 Operating activities                                                                                                                                                             
 Operating (loss)/profit                                                                                    (891,637)                        (341,483)  (1,005,680)     1,006,182 
 Depreciation - plant, equipment and mining properties                                                      2,710,157                        2,428,213    4,610,861     3,644,940 
 Net financial expense                                                                                        201,395                        1,406,273      188,341     2,425,077 
 Provision for impairment of inventory                                                                              -                                -      220,000             - 
 Provision for Taxation                                                                                        97,461                          402,407      178,013       556,046 
 Share-based payments                                                                                         112,412                           25,639      178,032       148,756 
 Foreign exchange (loss) / gain                                                                              (84,778)                        (302,227)       40,560       169,676 
 Changes in working capital                                                                                                                                                       
                                       (Increase)/decrease in inventories                                   (483,319)                        1,189,635      987,364     (780,741) 
                                       (Increase) in receivables, prepayments and accrued income            (333,475)                      (2,073,657)  (2,577,285)   (2,764,970) 
                                       Increase/(decrease) in payables, accruals and provisions               894,832                         (22,698)        3,589     1,479,848 
 Net cash inflow from operations                                                                            2,223,048                        2,712,102    2,823,795     5,884,814 
                                                                                                                                                                                  
 Investing activities                                                                                                                                                             
 Purchase of property, plant and equipment and projects in construction                                     (815,924)                      (1,463,710)  (1,083,839)   (2,127,671) 
 Mine development expenditures                                                                              (877,530)                        (729,010)  (1,964,320)   (1,249,151) 
 Exploration and other development expenditure                                                                     21                                -      (2,500)             - 
 Proceeds from sale of assets                                                                                 115,975                           24,401      115,975        26,969 
 Interest received                                                                                                 35                               34           69            69 
 Net cash outflow on investing activities                                                                 (1,577,423)                      (2,168,285)  (2,934,615)   (3,349,784) 
                                                                                                                                                                                  
 Financing activities                                                                                                                                                             
 Repayment of short-term secured loan                                                                               -                      (1,333,333)            -   (1,333,333) 
 Draw-down of short-term convertible loan facility                                                                  -                                -            -     2,000,000 
 Receipts from short-term trade finance                                                                             -                        6,750,809            -    11,901,098 
 Repayment of short-term trade finance                                                                              -                      (5,194,131)            -  (11,509,875) 
 Payment of finance lease liabilities                                                                       (132,164)                        (169,793)    (132,164)     (381,521) 
 Interest paid and other finance costs                                                                       (55,807)                        (272,937)     (67,455)     (498,332) 
 Net cash (outflow)/ inflow from financing activities                                                       (187,971)                        (219,385)    (199,619)       178,037 
                                                                                                                                                                                  
 Net increase / (decrease) in cash and cash equivalents                                                       457,654                          324,432    (310,439)     2,713,068 
 Cash and cash equivalents at beginning of period                                                           3,407,117                        4,410,589    4,160,923     2,191,759 
 Exchange difference on cash                                                                                 (32,553)                           39,516     (18,266)     (130,289) 
 Cash and cash equivalents at end of period                                                                 3,832,218                        4,774,537    3,832,218     4,774,537 

Notes

1.             General Information
The financial information set out above does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. Whilst the financial
information included in this announcement has been compiled in accordance with
International Financial Reporting Standards ("IFRS") this announcement itself
does not contain sufficient financial information to comply with IFRS. A copy
of the statutory accounts for 2016 has been filed with the Registrar of
Companies following their adoption by shareholders at the last Annual General
Meeting.  The full audited financial statements, for the year end 31 December
2016, do comply with IFRS.

2.             Basis of Preparation
These interim condensed consolidated financial statements are for the three
and six month periods ended 30 June 2017. Comparative information has been
provided for the unaudited three and six month periods ended 30 June 2016 and,
where applicable, the audited twelve month period from 1 January 2016 to 31
December 2016. These condensed consolidated financial statements do not
include all the disclosures that would otherwise be required in a complete set
of financial statements and should be read in conjunction with the 2016 annual
report.
The condensed consolidated financial statements for the periods have been
prepared in accordance with International Accounting Standard 34 "Interim
Financial Reporting" and the accounting policies are consistent with those of
the annual financial statements for the year ended 31 December 2016 and those
envisaged for the financial statements for the year ending 31 December 2017.
The Group has not adopted any standards or interpretation in advance of the
required implementation dates.  It is not anticipated that the adoption in
the future of the new or revised standards or interpretations that have been
issued by the International Accounting Standards Board will have a material
impact on the Group's earnings or shareholders' funds. 
These financial statements do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006.
1. Going concern
On 1 February 2016, the Group announced that, with effect from 1 January 2016,
the Sao Chico Mine had achieved Commercial Production.  The Palito Mine has
been in Commercial Production since 1 July 2014.
The Directors anticipate the Group now has access to sufficient funding for
its immediate projected needs.  The Group expects to have sufficient cash
flow from its forecast production to finance its on-going operational
requirements, to repay its secured loan facilities and to, at least in part,
fund exploration and development activity on its other gold properties. The
secured loan facility was repayable by 31 August 2017 and at 31 June 2017, the
amount outstanding under this facility was US$1.37 million (31 December 2016:
US$1.37 million).  On 30 June the Group completed a re-negotiation of an
increased secured loan facility of US$5 million (including the existing loan
to US$1.37 million).  The new facility is repayable by 31 December 2019 and
the incremental funds were received by the Company on 5 July 2017.
The Directors consider that the Group's operations are performing at the
levels that they anticipate, but the Group remains a small scale gold producer
with limited cash resources to support any unplanned interruption or reduction
in gold production, unforeseen reductions in the gold price, or appreciation
of the Brazilian currency, all of which could adversely affect the level of
free cash flow that the Group can generate on a monthly basis.  In the event
that the Group is unable to generate sufficient free cash flow to meet its
financial obligations as they fall due, or to allow it to finance exploration
and development activity on its other gold properties, additional sources of
finance may be required.   Should additional working capital be required the
Directors consider that further sources of finance could be secured within the
required timescale.  
On this basis, the Directors have therefore concluded that it is appropriate
to prepare the financial statements on a going concern basis. However, there
is no certainty that such additional funds either for working capital or for
future development will be forthcoming and these conditions indicate the
existence of a material uncertainty, which may cast significant doubt over the
Group's ability to continue as a going concern and, therefore, that it may be
unable to realise its assets and discharge its liabilities in the normal
course of business.  The condensed consolidated financial statements do not
include the adjustments that would result if the Group was unable to continue
as a going concern.

 (ii)   Use of estimates and judgements
There have been no material revisions to the nature and amount of changes in
estimates of amounts reported in the 2016 annual financial statements.

 (iii)  Impairment
At each balance sheet date, the Group reviews the carrying amounts of its
property, plant and equipment and intangible assets to determine whether there
is any indication that those assets have suffered impairment. Prior to
carrying out of impairment reviews, the significant cash generating units are
assessed to determine whether they should be reviewed under the requirements
of IFRS 6 - Exploration for and Evaluation of Mineral Resources or IAS 36 -
Impairment of Assets. Such determination is by reference to the stage of
development of the project and the level of reliability and surety of
information used in calculating value in use or fair value less costs to sell.
Impairment reviews performed under IFRS 6 are carried out on a project by
project basis, with each project representing a potential single cash
generating unit. An impairment review is undertaken when indicators of
impairment arise; typically when one of the following circumstances applies:
(i)            sufficient data exists that render the resource
uneconomic and unlikely to be developed
(ii)           title to the asset is compromised
(iii)         budgeted or planned expenditure is not expected in the
foreseeable future
(iv)          insufficient discovery of commercially viable resources
leading to the discontinuation of activities

Impairment reviews performed under IAS 36 are carried out when there is an
indication that the carrying value may be impaired. Such key indicators
(though not exhaustive) to the industry include:
(i)            a significant deterioration in the spot price of
gold
(ii)           a significant increase in production costs
(iii)         a significant revision to, and reduction in, the life of
mine plan

If any indication of impairment exists, the recoverable amount of the asset is
estimated, being the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or cash
generating unit) is reduced to its recoverable amount. Such impairment losses
are recognised in profit or loss for the year.

Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised in profit or loss for the year.

3.             Earnings per share

                                                             3 months ended 30 June 2017 US$ (unaudited)  3 months ended 30 June 2016 US$ (unaudited)  6 months ended 30 June 2017 US$ (unaudited)  6 months ended 30 June 2016 US$ (unaudited) 
 (Loss)/profit attributable to ordinary shareholders (US$)                                     (891,637)                                    (341,483)                                  (1,005,680)                                    1,006,182 
 Weighted average ordinary shares in issue                                                   698,701,772                                  656,389,204                                  698,701,772                                  656,389,204 
 Basic (loss)/profit per share (US cents)                                                         (0.13)                                       (0.05)                                       (0.14)                                         0.15 
 Diluted ordinary shares in issue ((1))                                                      698,701,772                                  656,389,204                                  698,701,772                                  706,299,204 
 Diluted (loss)/profit per share (US cents)                                                 (0.13) ((2))                                 (0.05) ((2))                                 (0.14) ((2))                                         0.14 
1. Assumes the exercise of 49,910,000 share options that were in issue but not
necessarily vested as at 31 March 2017. 
2. As the effect of dilution is to reduce the loss per share, the diluted loss
per share is considered to be the same as the basic loss per share
4.             Post balance sheet events

On 30 June 2017 the Company entered into a new secured loan agreement with
Sprott Resource Lending Partnership for US$5.0 million (to include the amount
of US$1.37 million outstanding as at that date), repayable on or before 31
December 2019.  Whilst the documentation was signed on 30 June 2017, the
additional funds were not send or received until 5 July 2017 and accordingly
no liability for the increased level of the loan was recognized in these
financial statements.
Other than as set out above between the end of the financial period and the
date of this management discussion and analysis, there has been no item,
transaction or event of a material or unusual nature likely, in the opinion of
the Directors of the Group, to affect significantly the continuing operations
of the entity, the results of these operations, or the state of affairs of the
entity in future financial periods.

Enquiries:

 Serabi Gold plc                                                                               
 Michael Hodgson                                                   Tel: +44 (0)20 7246 6830    
 Chief Executive                                                   Mobile: +44 (0)7799 473621  
                                                                                               
 Clive Line                                                        Tel: +44 (0)20 7246 6830    
 Finance Director                                                  Mobile: +44 (0)7710 151692  
                                                                                               
 Email: contact@serabigold.com                                                                 
 Website: www.serabigold.com                                                                   
                                                                                               
 Beaumont Cornish Limited Nominated Adviser and Financial Adviser                              
 Roland Cornish                                                    Tel: +44 (0)20 7628 3396    
 Michael Cornish                                                   Tel: +44 (0)20 7628 3396    
                                                                                               
 Peel Hunt LLP UK Broker                                                                       
 Matthew Armitt                                                    Tel: +44 (0)20 7418 9000    
 Ross Allister                                                     Tel: +44 (0)20 7418 9000    
                                                                                               
 Blytheweigh Public Relations                                                                  
 Tim Blythe                                                        Tel: +44 (0)20 7138 3204    
 Camilla Horsfall                                                  Tel: +44 (0)20 7138 3224    

Copies of this announcement 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 announcement.

The Company will, in compliance with Canadian regulatory requirements, post
the Unaudited Interim Financial Statements and the Management Discussion and
Analysis for the three month period ended 31 March 2017 on SEDAR at
www.sedar.com.  These documents will also available from the Company's
website - www.serabigold.com.

Serabi's Directors Report and Financial Statements for the year ended 31
December 2016 together the Chairman's Statement and the Management Discussion
and Analysis, are available from the Company's website - www.serabigold.com
and on SEDAR at www.sedar.com.

This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.

GLOSSARY OF TERMS
The following is a glossary of technical terms: 
"Au" means gold.
 "assay" in economic geology, means to analyse the proportions of metal in a
rock or overburden sample; to test an ore or mineral for composition, purity,
weight or other properties of commercial interest.
"development" - excavations used to  establish access to the mineralised rock
and other workings.
"doré - a semi-pure alloy of gold silver and other metals produced by the
smelting process at a mine that will be subject to further refining.
"DNPM" is the Departamento Nacional de Produção Mineral.
"grade" is the concentration of mineral within the host rock typically quoted
as grams per tonne (g/t), parts per million (ppm) or parts per billion (ppb).
"g/t" means grams per tonne.
"granodiorite" is an igneous intrusive rock similar to granite.
"igneous" is a rock that has solidified from molten material or magma.
"Intrusive" is a body of igneous rock that invades older rocks.
"on-lode development" - Development that is undertaken in and following the
direction of the Vein.
 "mRL" - depth in metres measured relative to a fixed point - in the case of
Palito and Sao Chico this is sea-level.  The mine entrance at Palito is at
250mRL.
"saprolite" is a weathered or decomposed clay-rich rock.
"stoping blocks" - a discrete area of mineralised rock established for
planning and scheduling purposes that will be mined using one of the various
stoping methods.  
"Vein" is a generic term to describe an occurrence of mineralised rock within
an area of non-mineralised rock.

Qualified Persons Statement
The scientific and technical information contained within this announcement
has been reviewed and approved by Michael Hodgson, a Director of the Company.
Mr Hodgson is an Economic Geologist by training with over 26 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, recognising 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
Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of
those, variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking statements
including risks associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory changes, actions
by governmental authorities, the availability of capital markets, reliance on
key personnel, uninsured and underinsured losses and other factors, many of
which are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward looking statements.

ENDS
This announcement is distributed by Nasdaq Corporate Solutions on behalf of
Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Serabi Gold plc via Globenewswire
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