For immediate publication

4th August 2020

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

Serabi extends the period of use for convertible loans

Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazil-focused gold mining and development company, is pleased to announce that it has agreed with Greenstone Resources II LP (“Greenstone”) the period during which the Das Company can take advantage of the $ 12 million convertible bond announced on April 23, 2020 and subscribed by Greenstone.

Mike Hodgson, CEO commented:

“Adding six months to the length of time we can draw on the convertible will ease the pressure to draw earlier than usual and avoid additional debt on the convertible that is ultimately unnecessary. This is excellent news for the company and its shareholders

“Despite the COVID-19 pandemic, we continued mining operations at the Palito Complex and, using the gold prices that we benefited from in the second quarter of this year, were able to repay the remaining $ 3.5 million on the loan with Sprott Resource Lending Partnership while maintaining our cash position. Despite lower production volumes, the second quarter was one of our best quarters to date from a cash flow perspective. Greenstone provided the convertible to Serabi to ensure the company completed the acquisition of the Coringa gold project. Since the gold price is to be held, the Sprott loan has now been repaid and the production level is forecast, we currently assume that Serabi can finance the monthly payments of US $ 1 million that Equinox Gold Corp (“Equinox” ) for Coringa at least in the short term from the cash flow from operating activities. “

Details on changing the conditions of the convertible

The initial period during which the Company was able to draw funds from the Convertible Notes ended on December 31, 2020 (the “Availability Period”). The company and Greenstone have now agreed to extend the availability period to June 30, 2021. Otherwise, the terms of the convertible bond remain unchanged. There was no consideration to be paid to Greenstone for this change in conditions.

As of August 3, 2020, the company had drawn $ 2.0 million of the convertible bond and made payments of $ 2.5 million to Equinox Gold Corp. (“Equinox”) in respect of the $ 12 million payment obligation (the “Consideration Outstanding”). for the Coringa gold project. After these payments, the balance of the outstanding consideration is $ 9.5 million. Under the agreements made with Equinox, the company will continue to make payments of $ 1.0 million per month until travel restrictions to and within Brazil due to the COVID-19 pandemic are lifted and the outstanding consideration will be paid within six weeks due after that date.

Related Party Transaction

TARGET

Greenstone currently has a stake of more than 10 percent. of the Company’s issued share capital, the change in the availability period (the “Change”) is a related party transaction within the meaning of Rule 13 of the AIM Rules (“Rule 13“). Since Mark Sawyer, a non-executive director of the Company, is a Greenstone-appointed director, he is not independent for the purposes of Rule 13 other than Mark Sawyer), after consulting with Company-appointed advisor Beaumont Cornish, believes the change in Is fair and reasonable in relation to the unitholders.

This notification is inside information within the meaning of Article 7 of Regulation 596/2014.

The person responsible for arranging this announcement on behalf of the company was Clive Line, Director.

Requests:

Copies of this notice are available on the company’s website at www.serabigold.com.

Neither the Toronto Stock Exchange nor any other securities regulator has approved or disapproved the contents of this announcement.

Qualified Person Statement
The scientific and technical information contained in this release has been reviewed and approved by Michael Hodgson, a director of the company. Mr. Hodgson is a trained economic geologist with over 26 years experience in the mining industry. He holds a BSc (Hons) Geology, University of London, an 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, qualifying him as a Qualified Person within the meaning of the Canadian National Instrument 43-101 and the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward-Looking Statements
Certain statements in this release are or may be considered forward-looking statements. Forward-looking statements are identified by the use of words and phrases such as “believe,” “could,” “should,” “provide,” “estimate,” “intend,” and “could”, “plan”, “” will ” or the negative thereof, variations or comparable expressions, including references to assumptions. These forward-looking statements are based not on historical facts, but rather on the directors’ current expectations and assumptions regarding future growth, results of operations, performance, future capital and other expenses (including the amount, nature and funding sources thereof), competitive advantage, Business prospects and opportunities. Such forward-looking statements reflect the current beliefs and assumptions of the Directors and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements, including risks related to vulnerability to general economic conditions, competition, environmental and other regulatory changes, government action, Availability of capital markets, reliance on key personnel, uninsured and uninsured losses, and other factors, many of which are beyond the control of the company. While all forward-looking statements contained in this release are based on reasonable assumptions that the Directors believe are reasonable, the company cannot guarantee to investors that actual results will correspond to any such forward-looking statements.

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