For immediate release

24 January 2012

Serabi Gold Plc

("Serabi" or the "Company")

High Grade Intersections from Palito Extension Drilling Confirmed

Serabi Gold plc (AIM:SRB, TSX:SBI and SBI.WT), the Brazilian focused gold exploration Company is pleased to announce final independent laboratory analytical results from shallow extension drilling on the south-eastern strike extension of the Palito deposit which confirm the previously announced preliminary high grade gold and copper results.

The shallow extension program was completed for a total of 8 holes and 937m (PDD0519-PDD0526) in October 2011.

The Company announced preliminary assays on 24 November 2011 and the final 30gram fire assay results have now been received from the ALS Minerals laboratory in Vancouver.

Mike Hodgson, Chief Executive, commented:

"As I mentioned in our initial release of 24 November 2011, these high grade results continue to demonstrate the prospectivity that exists along strike from Palito and south into the Espeto and Currutela prospects with high grade drill intersections having been reported.

We are increasingly confident that the existing Palito gold resource will extend towards the Espeto prospect located some 800 metres to the south east, and beyond to Curretela a further 900 metres along strike.

These results also appear to demonstrate the high grade pay shoots that typify the Palito resource.  Having developed an understanding of the cyclicity of these high grade shoots in the mine, we can now tailor our follow up exploration accordingly to effectively define these potential pay shoots.

The confirmation of preliminary results re-enforces the value of the Palito laboratory facility in providing reliable and rapid turnaround in results and enabling the flexibility to rapidly direct exploration to the most prospective areas in the Companys projects and maintain the agility to garner the most from new exploration information generated." 

Significant assay results confirmed by ALS  and saprolite intersections are tabled below;

Hole	East	North	RL	Depth	Dip/Azm	From	To	Width	Palito	Palito	ALS	ALS
	(UTM)	(UTM)	(UTM)	(m)		(m)	(m)	(m)	Au g/t	Cu %	Au g/t	Cu %
PDD0519	634410	9300977	204	126.30	-64/211	4.80	5.65	0.85	0.54	0.00	-(2)	-(2)
						96.39	97.11	0.72	9.26	0.40	8.91(3)	0.76
PDD0520	634367	9300979	209	124.85	-69/211	No significant Assays
PDD0521	634367	9300980	209	75.10	-58/208	0.80	1.43	0.63	0.88	0.00	-(2)	-(2)