Serabi Regulatory News (SRB)

FOR IMMEDIATE RELEASE

4 March 2010

Serabi Mining PLC

("Serabi" or the "Company")

Statement regarding share price movement

The Board of Serabi notes the recent activity in its shares and movements in the Company's share price and confirms that it is currently in preliminary discussions with a third party regarding a possible merger (the "Discussions"). The Discussions are very preliminary in nature and there can be no certainty that the potential merger will ultimately proceed nor any offer be forthcoming.

In relation to this announcement, shareholders are advised to take no action in relation to their shareholdings in the Company. A further announcement will be made in due course as appropriate.

Relevant Securities in Issue 

The following information is provided in accordance with Rule 2.10 of the City Code on Takeovers and Mergers (the "Code").

The Company confirms that it has in issue:

1. 327,740,595 ordinary shares of 0.5 pence each ("Ordinary Shares") as at the close of business on 3 March 2010 and the Ordinary Shares in the Company are admitted to trading on AIM under the UK ISIN code GB00B074J639.

2. £300,000 Convertible Loan Agreement convertible at any time up to 31 October 2014 into up to a maximum further 21,001,228 new Ordinary Shares (assuming the maximum amount of accrued interest between drawdown and the repayment date of £15,018.42 is converted into new Ordinary Shares).

Enquiries:

Beaumont Cornish Limited ("Beaumont Cornish") which is authorised in the United Kingdom by The Financial Services Authority, is acting for Serabi in relation to any potential offer and is not advising any other person, and accordingly will not be responsible to anyone other than Serabi for providing the protections afforded to customers of Beaumont Cornish or for providing advice in relation to any potential offer.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of the offeror or Serabi (the offeree company), all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of the offeror or Serabi (the offeree company), they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of the offeror or of Serabi (the offeree company) by the offeror or Serabi (the offeree company), or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any agreement to purchase, option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.

In accordance with 19.11 of the Code, a copy of this announcement can be found at www.serabimining.com.

ENDS