Miscellaneous

For immediate release

            1 April 2021

Serabi Gold plc
(“Serabi” or the “Company”)

Financial and Accounting update

Serabi Gold plc advises that the release of the audited annual financial results for the year ended 31 December 2020 (“Accounts”), originally scheduled to be issued on 31 March 2021 to comply with the requirements of Canadian securities laws where the Company is also listed, has been delayed.

The delay is due to local audit issues in Brazil which the Company is working with its auditors to resolve. The Company envisages being able to publish its Accounts in accordance with the requirements of the AIM Rules, but if the delay is likely to have any effect on this, then a further announcement will be made in due course.

During the course of audit work in Brazil,  the UK executive management of the Company became aware on 16 March 2021 that certain cash withdrawals amounting to approximately US$80,000 during the first quarter of 2020 lacked documentary support and this has required further local audit work which is ongoing and is having an impact on timing of the publication of the Accounts.

As a result of the delay to the publication of the Accounts, , it is expected that a cease trade order will be issued by Canadian securities regulatory authorities and trading in the Company’s shares on the Toronto Stock Exchange  will be suspended until such time as the Accounts are filed.

Given the delay in publication of the Accounts, the Board is also providing a further update on trading for the year ended 31  December 2020. As had been previously highlighted, revenue for the fourth quarter would be lower than in preceding periods as a result of lower levels of gold being sold in the period, a result of normal fluctuations in the timings of sales and gold stocks on hand.  During the first quarter of 2021, the Group finalised the gold and metal content of two shipments of copper/gold concentrate that were sold during the third quarter of 2020.  The final agreed gold assay of the copper/gold concentrate for both these sales was lower than the provisional assay undertaken by the Palito laboratory and as a result the Group realised, during the first quarter of 2021, a revenue adjustment of approximately US$970,000 reflecting the reduction in the revenue generated from these sales.  As this related to sales undertaken during 2020, this adjustment will be reflected in the reported revenue for 2020.