Corporate Presentation March 2015 March 2015
Serabi Gold and Brazil Serabi Gold plc is dual listed (TSX:SBI, AIM:SRB), gold mining and development company with operations in Northern Brazil. The Company is fully focused on becoming a significant junior gold producer in Brazil Stable democracy; strong & diversified economy Tapajos: major under-explored mineral region significant historic artisanal production An established mining industry with high potential Security of title & sound permitting process March 2015 1
Serabi s Operations The Company operates two high grade underground mines, Palito and Sao Chico, located just 25 km apart, in the Tapajos region of Para State. Palito is a successful restart of a brownfield site, having just completed its maiden year of production in 2014 and is now in full commercial production generating some 25,000 oz p.a. at average grades of 8-9g/t Au. Sao Chico is under development, with a 43-101 compliant mineral resource of 100koz at >26g/t gold ore. The principal vein structure was intersected in January this year, cutting 3.6m @ 42 g/t Au. Sao Chico ore will provide additional feed for the Palito plant from Q2/2015. The surplus capacity of the Palito plant, within comfortable trucking distance of Sao Chico made the combination of the assets an obvious decision. March 2015 2
Key Operational Statistics 2014 SUMMARY PRODUCTION STATISTICS FOR THE TWELVE MONTHS TO 31 DECEMBER 2014 Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL Horizontal development Metres 1,491 1,804 1,594 1,348 6,237 Mined ore Tonnes 9,666 9,072 32,454 25,308 76,500 Gold grade (g/t) 5.03 10.55 11.77 9.28 9.95 Milled ore Tonnes 13,766 18,929 24,533 28,759 85,987 Gold grade (g/t) 7.43 8.33 9.88 8.95 8.84 Gold production (1) Ounces 1,882 3,236 5,515 7,819 18,452 (1) Gold production figures are subject to amendment pending agreement of final assay results of copper/gold concentrate sold March 2015 3
Corporate Overview Capital Structure Basic Shares 656.4m Warrants 100.0m Options 53.8m Fully Diluted 810.2m Recent share price 5.00p (C$0.09) 52 week H-L 7.41p 3.35p Average daily volume (3 months) 217,103 Current capitalisation UK 32.8m US$50.5m Board of Directors Mike Hodgson Clive Line Sean Harvey Aquiles Alegria Nicolas Banados Eduardo Rosselot Felipe Swett Mel Williams Chief Executive Financial Director Non executive Chairman Non Executive Non Executive Non Executive Non Executive Non Executive Financial Snapshot Major Shareholders Cash on hand (31 Dec 2014) Long term debt (31 Dec 2014 excl. leased equipment) Net Assets (31 Dec 2014 ) Ticker Symbols ~ US$9.8m US$8.0 US$64.0m TSX-SBI AIM-SRB Fratelli Investments Limited 52.3% Anker Holding AG 7.6% Drake PIPE Fund 7.0% Eldorado Gold Corporation 5.2% Inversiones Villarrica Limitada 3.4% Directors (excl. Banados) 0.4% March 2015 4
The Tapajos Reported to have produced > 30 million ounces from artisanal operations Only 7 million ounces gold hard rock resources identified to date Palito well located for access, local infrastructure and local employee source Excellent mine site potential with 3 discoveries made and ready for evaluation. Sao Chico in developments and just 25km from Palito by road Through further acquisitions there is significant potential to add further near term production ounces in the region. March 2015 5
Palito and Sao Chico Mining Lease March 2015 6
Palito Gold Deposit Low Cost, Re-start Operation Over US$33m previously invested on mine infrastructure and development. 2014 has been the maiden year of production with commercial production declared July 2014. Produced >110,000 oz (Au eq.) between 2005 to 2008 greatly reducing future process and environmental risks. Mains Grid power at site with back up from diesel powered generators. Year round road access. Fully functioning camp for ~250 employees. Airstrip, roads, assay lab, hospital, warehousing and workshops all in place. Mining and environmental licenses issued and in good standing. With considerable available capacity (much of the plant is capable of 600 tpd), additional feed from Sao Chico can be comfortably accommodated. March 2015 7
Operations Update - Mine The mine was de-watered in 3 months Q4 2012. During 2013, the workforce, management, and mobile fleet was acquired, and mine developed. By April 2014, the mine was fully developed and production stoping commenced. Mining is undertaken by on lode development followed by selective open stoping between 30-40m vertically spaced levels. Palito is now in regime a high grade (8-9g/t gold), 240 tonne per day operation. Experienced underground mining labour at site with proven experience in underground selective mining. March 2015 8
Operations Update - Plant Plant commenced operating in January 2014, with commercial production declared since July 2014. The plant is now in full operation with approximately 2,500 oz gold produced each month, the past 5 months. Processing is by copper/gold flotation concentrate, followed by cyanidation of flotation tails, with gold recoveries exceeding 92%. Two milling lines are installed, with the view to dedicating one line to Sao Chico from Q2 2015. In the meantime, both lines are being used to treat Palito run of mine (ROM) and stockpiled material. In addition, over 50,000 tonnes of flotation tails from first nine months of operations in 2014 are now being processed through the CIP plant. March 2015 9
Palito Historic Production Good and Bad! Gold Production By Product Production Milling Rate Mining Rate Ore only Mining Rate incl waste Gold grade Q1 2005 2,077 185 92 110 110 9.30 Q2 3,427 320 154 150 150 8.60 Q3 5,005 719 156 135 135 12.10 Q4 4,837 691 233 207 207 7.70 Q1 2006 7,017 910 283 351 365 9.31 Q2 8,527 1,288 328 350 374 9.73 Q3 7,974 1,794 321 376 460 9.21 Q4 8,980 2,707 356 370 457 9.36 2005 to 2006 represented mining operations by shrink stoping with average mining rates of 250tpd and head grade of 9.35g/t Q1 2007 8,044 1,257 475 469 614 6.52 Q2 7,888 1,529 497 550 677 5.94 Q3 7,021 1,155 490 497 619 5.36 Q4 5,989 1,080 440 447 619 5.55 Q1 2008 4,217 768 357 363 632 4.52 Q2 4,963 791 374 383 657 5.10 Q3 4,658 748 384 408 699 4.69 2007 to 2008 the operation moved to bulk long- hole stoping and excessive dilution impacts heavily on grade delivered to the plant Q4 3,165 364 314 246 302 3.82 Totals / Average 93,789 16,306 328 338 442 6.78 March 2015 10
Sao Chico Gold Project 25km from Palito March 2015 11
Sao Chico Sao Chico lies some 25km from Palito, is linked by road (open year round) and has a 43-101 compliant mineral resource of 100koz at >26g/t. A trial license for mining 50,000 tonnes is in place. Mine development is underway with first development level underway. The principal vein structure was intersected January 2015, with 3.6m true width grading 42 g/t gold. Mine ore and waste development will continue this year, with first development ore being transported and processed at Palito Gold plant Q2 2015. Will use the same mining method as Palito, bringing management and operational synergies. A further drilling campaign is planned for Q2 2015, with an updated geological resource planned for Q3 2015. March 2015 12
Sao Chico spectacular grades The current publicly disclosed mineral resource at Sao Chico estimated in 2012 comprises ~25,000 oz Au (Measured + Indicated) and ~71,000 oz Au (Inferred). This was based upon 3,200m drilling in 2011. The company since undertook 5,000m of in fill and step out drilling in 2013, which indicated the resource remains totally open along strike and depth. A further 5,000-6,000m campaign is planned to commence Q2 2015, with a new geological resource planned for Q3 2015. March 2015 13
Production Profile Palito is now in commercial production (250tpd) with mining activity in 8 areas. Sao Chico is under development, with the first development level ongoing and some spectacular grades being developed. Mining method for both properties is by well established, underground selective mining. Ore zones are developed by on-lode development, using mechanized drilling jumbos, which is then followed by highly selective open (shrinkage) stoping using pneumatic equipment. With Palito in regime and in its second year of production, the Company forecasts Palito Gold production of 24,000 ounces for this year. In addition, considering surface stockpiles containing ~5000 ounces, plus high grade development ore from Sao Chico, the Company anticipates 2015 annual gold production to approximate 35,000 ounces. Projected AISC for 2015 of US$900 to US$950 per ounce. 2016 estimate Palito to produce ~90,000 tonnes at 8-9g/t for 24,000 ounces Sao Chico to produce ~35,000 tonnes at 15g/t for 20,000 ounces March 2015 14
Growth Opportunities Organic Growth With Palito mine production only utilizing about 50% plant capacity, Sao Chico high grade feed will bring obvious strong economic benefits, not to mention environmental and logistical advantages. Serabi see the Tapajos and Para state as a great opportunity, the combination of Palito and Sao Chico has a terrific package of exploration ground with many exciting targets already identified at both sites, more specifically: At Palito three mine site discoveries within 3km of the plant, are all ready for infill and step-out drilling. At Sao Chico, the resource is totally open in all directions, and the exceptional grade make it a high priority for future exploration campaigns With resource growth success any future modular plant expansion is straightforward M & A The immature nature of the Tapajos means less competition and we have few peers in the region. Serabi, as the only producer is therefore strongly placed to use this advantage. We continue to explore possibilities to combine and acquire assets both private and public that could offer operational and/or commercial synergies with Serabi. Serabi continue to look elsewhere in Brazil as we look to build on current production to become a robust, high margin gold producer in Brazil. March 2015 15
Three mine site discoveries at Palito March 2015 16
Palito Mine Continues to grow March 2015 17
The Tapajos : A district waiting for consolidation March 2015 18
Summary Serabi intends to be the premier low cost junior gold producer in Brazil through the mining of high grade, low capex gold deposits. Milestones achieved : Completion of Palito restart on time and within budget. Commercial Production at Palito declared effective 1 July 2014. Development of Sao Chico now underway, with very exciting orebody intersections currently in development. Future Plans : Continue development of Sao Chico through 1H/2015 will quickly add high grade (~12g/t) development ounces, ramping up total gold production during the rest of the year. use positive cash flow to increase Palito resources from the mine-site discoveries already made, as well as the obvious extensions of high grade ore potential at Sao Chico. continue to review the M+A opportunities in the region. March 2015 19
Contact Us For further information please contact us: SERABI GOLD plc Mike Hodgson Chief Executive 2nd Floor 30-32 Ludgate Hill London, EC4M 7DR United Kingdom tel +44 (0) 20 7246 6830 fax +44 (0) 20 7246 6831 email contact@serabigold.com www.serabigold.com Blytheweigh Tim Blythe / Halimah Hussain tel: +44 (0) 20 7138 3204 email: tim.blythe@blytheweigh.com halimah.hussain@blytheweigh.com www.blytheweigh.com March 2015 20
Appendix 1 - Group Mineral Resources PALITO Tonnes Gold (g/t) Contained Gold (Ounces) Measured Resources 97,000 9.51 30,000 Indicated Resources 754,000 7.29 177,000 Measured and Indicated Resources 851,000 7.54 206,000 Inferred Resources 2,088,000 5.85 393,000 GRAND TOTAL 2,939,000 6.34 599,000 SAO CHICO Tonnes Gold Contained Gold (Ounces) Measured Resources 5,064 32.46 5,269 Indicated Resources 21,423 29.14 20,006 Measured and Indicated Resources 26,487 29.77 25,275 Inferred Resources 85,577 26.03 71,385 GRAND TOTAL 112,064 26.91 96,660 COMBINED Tonnes Gold (g/t) Contained Gold (ounces) Measured Resources 102,064 10.65 35,269 Indicated Resources 775,423 7.89 197,006 Measured and Indicated Resources 877,487 8.21 231,275 Inferred Resources 2,173,577 6.64 464,385 GRAND TOTAL 3,051,064 7.10 695,660 March 2015 21