Proposed placing in Serabi Gold plc

PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

Proposed Placing of approximately 15.7 million ordinary shares in Serabi Gold plc

Greenstone Resources II LP ("Greenstone") and Fratelli Investments Limited ("Fratelli") (the "Sellers") announce their intention to sell up to 15,689,395 ordinary shares in aggregate (the "Placing Shares") in the capital of Serabi Gold plc ("Serabi") to eligible institutional investors (the "Placing").

The Placing Shares will comprise Greenstone's entire holding of 3,936,492 ordinary shares and 11,752,903 ordinary shares currently held by Fratelli, corresponding in aggregate to approximately 20.7 per cent. of Serabi's entire issued share capital. It is expected that following the Placing, Fratelli will retain a holding of 7,565,882 ordinary shares, representing 10.0 per cent. of Serabi's entire issued share capital.

The price per Placing Share will be determined by way of an accelerated bookbuilding process to eligible institutional investors. The bookbuilding period will commence with immediate effect following this announcement and may close at any time on short notice. The results of the Placing will be announced as soon as practicable after the closing of the bookbuilding process.

In the context of the Placing, any of the ordinary shares in Serabi held by the Sellers which are not sold in the Placing will be subject to a 60-day lock-up undertaking (subject to certain customary exceptions).

Peel Hunt LLP ("Peel Hunt") and Tamesis Partners LLP ("Tamesis") have been appointed by the Sellers as Joint Bookrunners in connection with the Placing.

Serabi is not a party to the Placing and will not receive any proceeds from the Placing.