Serabi Mining plc 
Annual report and accounts 2005
Serabi Mining plc Annual report and accounts 2005
Serabi Mining plc
Cleary Court, 21-23 St Swithins Lane
London EC4N 8AD
Tel: +44 (0)20 7220 9550
Fax: +44 (0)20 7220 9555
Email: contact@serabimining.com
Web: www.serabimining.com Serabi Mining plc is a gold mining and exploration
company currently focused on the Tapajos geological
province of northern Brazil. The Tapajos region is a
major, under-explored mineral province from which
artisanal miners (“Garimpeiros”) are thought to have
extracted some 30 million ounces of gold, mostly from
alluvial and weathered bedrock deposits since the 
early 1970’s. The Company has established the first
significant hard-rock mining operation in the region at
the 100% owned Palito Gold Mine. In addition, Serabi
has amassed a sizeable land position in the Tapajos
where advanced exploration and drilling is currently
underway. Serabi’s goal is to become a low-cost, long-life,
multi-mine producer, using the experience at Palito as
the guide for further mining developments. 
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Serabi Mining plc Annual report and accounts 2005 1
Highlights of Fiscal Year 2005
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Statement
09 Financial Review
10 Board of Directors
12 The Community, Health, Safety and the Environment
13 Directors’ Report
19 Independent Auditors’ Report
20 Profit and Loss Account
Statement of Total Recognised Gains and Losses
21 Balance Sheets
22 Consolidated Cash Flow Statement
23 Reconciliation of Operating Loss to Net Cash Flow 
from Operating Activities
Reconciliation of Cash to Net Funds
24 Notes to the Financial Statements
38 Notice of Annual General Meeting
40 Corporate Directory
74% increase in resources to 825,900 ounces
gold equivalent 
Improved resource quality as Indicated Resources
comprise 90% of total resource
Continuing mine development and operating
improvements with an initial 17,261 ounces of 
gold equivalent production achieved
Process plant upgrade completed, leading to
average gold recoveries of between 90% and
95% by year end
Plans initiated to achieve higher mining and
process rates in 2006 
Successful completion of the Company’s initial
public offering on London’s AIM market
    Contents
 Serabi Mining plc Annual report and accounts 2005 2
Chairman’s Statement 
2005 was a year of significant accomplishment for
Serabi as the Company made tangible progress towards
its goal of becoming a mid-tier gold producer. Serabi’s
admission to London’s AIM market on 10 May, 2005
was the culmination of more than five years of private
development by the Company’s founders, institutional
and private investors and employees. The benefits of
becoming a public company combined with growing
cash flow from the Palito mine now provide a strong
foundation for continued success. 
Operationally, 2005 was characterised as a year of
continuous improvement at the Palito mine and
preparation for the start of regional project evaluation.
As an operation still under development, production
at Palito showed significant improvements over the
year, resulting in output of 17,261 ounces of gold
equivalent. Building on last year’s success and with
preparations for the coming year, I expect the full
potential of Serabi will become more evident during
2006, with the following goals:
 further expansion of the mineral resource at Palito; 
 increase Palito annual mine production to 45,000
ounces gold equivalent with a targeted year end
cash cost of US$200 per ounce;
 establish resources on other Jardim do Ouro projects;
 review expansion potential and complete
long-term Palito mine plan;
 step up exploration across the Tapajos project
portfolio; and 
 establish resource and initiate preliminary planning
for a new Tapajos project.
2005 was also a solid year for gold and copper prices,
our main products. Since the start of 2005, the price of
gold rose from US$436 per ounce to US$513 per ounce
at the year end, an increase of 18%. Similarly, the price
of copper increased from US$1.42 per pound to US$2.08
per pound over the same period, an increase of 46%.
Copper is a significant by-product at Palito and currently
represents approximately 12% of total revenue. The full
impact of these prices was partly offset by a surprisingly
strong Brazilian real, which appreciated by 14% over the
same time period. Nevertheless, we anticipate enhanced
benefits to revenue during 2006 with metal prices
remaining strong and limited potential for further
currency strengthening.
PALITO GOLD MINE
At our 100% owned Palito Gold Mine, a significant
amount of funds were invested in projects designed
to expand the rate of production, improve efficiencies
and increase the overall resource. By the end of 2005,
these investments were beginning to bear fruit, with
daily underground mining production regularly
achieving above 250 tonnes, compared with less
than 100 tonnes at the beginning of the year; more
recently this has risen to approximately 400 tonnes
per day. In addition, total resources at the Palito
Main Zone increased by 74% to 825,900 ounces
of gold equivalent. This substantial increase in the
resource base will now be assessed to determine
the implications for long-term mine planning in order
to realise the full potential of the Palito Gold Mine. 
Following an assessment of various alternatives during
the second half of 2005, the Board of Directors decided
to introduce mechanised mining techniques into the
operation, specifically longhole stoping with decline
access. The first phase of the decline has been completed
down to the 192 mRL and is expected to be developed
further in line with production scheduling and cash flow
generation. The introduction of longhole stoping is a
major change that will result in a safer and more efficient
operation at Palito and secure our future. As a result of
these initiatives we now anticipate Palito moving to
commercial production in the third quarter of 2006. 
EXPLORATION
Since 1999, the Company has established a dominant
land position over attractive targets throughout
the Tapajos region of Brazil of more than 100,000
hectares. Proceeds from the Company’s IPO were
used to purchase drill rigs, train drilling crews and
begin testing projects throughout the Jardim do Ouro
District and the broader Tapajos region. Results from
this work programme are expected to become an
important feature of the Company’s development
potential during 2006. 3
Serabi Mining plc Annual report and accounts 2005 3
“The Directors believe there is considerable potential
to discover and exploit additional resources at the
Company’s exploration projects throughout the Tapajos.”
Evaluation of soil geochemistry results, geophysics and
geology by the Company’s exploration team resulted
in the initiation of drilling at two targets within the
Jardim do Ouro District late in 2005, namely Palito
West and Bill’s Pipe. Initial results are encouraging and
Serabi plans to continue work at these and other
projects within the Jardim do Ouro portfolio during
2006. Work will be focused on developing resources at
various satellite orebodies with a view to incorporating
these into the Palito mine plan where possible.
Step-out drilling from the Palito Main Zone during 2005
has already resulted in the important new discovery of
a series of high-grade gold veins, collectively termed the
Compressor Lode. The significance of this discovery is
two-fold. Firstly, it illustrates the potential for additional
satellite orebodies parallel to the Palito Main Zone,
within close proximity to the existing operation.
Secondly, the Compressor Lode demonstrates the
positive impact of being able to quickly bring such
mineralisation into production. In the span of only five
months, Serabi has discovered, evaluated, planned and
begun mining at the Compressor Lode. The potential
to incorporate other similar orebodies into the mine plan
is considered to be good, with positive benefits on the
overall project economics of Palito. 
The Company was also active in the broader Tapajos
region. In October 2005 Serabi purchased an option
to acquire 100% of the Pombo gold project in the
southern area of the Tapajos. Drilling has recently
commenced and we expect to report results in due
course. Drilling is also planned at other Tapajos projects
during 2006. 
STRATEGY GOING FORWARD
It has been six years since Serabi was established in
Brazil. Over this period, the Company has built the
only operating mine in the Tapajos, built an exciting
portfolio of exploration projects, built an experienced
team and a positive reputation, which has resulted in
important strategic and operating advantages for
the Company. As a result, we believe we have the
ability to leverage our existing assets and develop
new projects quickly. Furthermore, there is immense
geological potential in the Tapajos region, from which
we are now well positioned to build shareholder
value. Our criteria for evaluating projects are: 
1. mineable resource potential of at least 500,000
ounces gold equivalent; 
2. annual production potential of between 50,000 
to 100,000 ounces gold equivalent; and
3. projected life of mine total cash costs of less than
US$250 per ounce.
Serabi will continue to pursue its development
programme guided by this set of evaluation criteria,
with a goal of becoming a significant multi-mine,
low-cost gold producer.
ACKNOWLEDGEMENTS
The accomplishments in 2005 could not have been
realised without the efforts and determination of
Serabi’s employees toward the goal of becoming a
successful mid-tier gold producer. I thank those that
have contributed to our success to date and welcome
those that have recently joined. 
I would also like to welcome Richard Robinson and
Roger Davey to the Board of Directors of the Company.
Their counsel and experience will be an invaluable
asset to Serabi as the Company pursues its growth
strategy going forward.
A final acknowledgement goes to our shareholders for
their continued support of Serabi. We all look forward
to an exciting and rewarding future as Serabi continues
to grow in 2006 and beyond.
Graham Roberts
Chairman
30 March 2006 Serabi Mining plc Annual report and accounts 2005 4
Chief Executive’s Statement 
Let me begin by congratulating all our employees on
successfully expanding production at the Palito Gold
Mine during 2005. We believe that the Palito Gold
Mine forms the template for developing additional
projects for Serabi in Brazil, a country with vast gold
mining potential.
PALITO GOLD MINE
Overview
The Palito Gold Mine performed well during 2005,
achieving total production of 17,261 ounces of gold
equivalent. A total of 59,387 tonnes of ore from the
Palito Main Zone was mined during 2005, of which
54,993 tonnes was development and shrinkage stope
ore from underground and 4,394 tonnes from surface
material. The ore head grade during the year averaged
9.2 g/t and gold recovery averaged 89.4%. An analysis
of the operating performance of the mine on a
quarterly basis illustrates the dramatic improvements
made at the operation throughout the year.
Mining
During the second quarter of 2005, Serabi reported
to shareholders that the rate of mining was becoming
a bottleneck in terms of our ability to increase
production. Indeed, the impact of this was evident
in the quarterly decrease in tonnes mined during the
third quarter as compared to the second quarter.
Following a detailed assessment of potential solutions,
it was decided to introduce mechanised longhole
stoping as a new mining technique and to initiate
decline access to the lower sections of the Palito
Main Zone. 
Table 1: Palito Gold Mine operating summary for 2005
Year ended
Q1 Q2 Q3 Q4 December 2005
Mining rate:
Underground tonnes 9,964 13,589 12,381 19,059 54,993
(per day) (110) (150) (135) (207) (151)
Open cut
1
tonnes 4,394 4,394
(per day) (48) (48)
Total mined tonnes 9,964 13,589 12,381 23,453 59,387
(per day) (110) (150) (135) (255) (163)
Milling rate:
Milled tonnes8,22214,00614,31521,415 57,958
(per day) (92) (154) (156) (233) (159)
Head grade grams/tonnes 9.3 8.6 12.1 7.7 9.2
Recovery % 84.2 88.2 90.2 91.8 89.4
Production:
Gold ounces 2,077 3,427 5,005 4,837 15,345
Copper tonnes 22.4 38.2 81.0 74.7 216.2
Gold equivalent ounces 2,262 3,747 5,724 5,528 17,261
1
November and December only; includes Compressor Lode oxide material and other surface ore from Palito North 3
Serabi Mining plc Annual report and accounts 2005 5
“Longhole stoping will enable us to increase production
levels from the mine, reduce our operating costs on a per
tonne basis and improve safety and working conditions for
our employees.”
The decline will allow Serabi to move away from the
generally labour intensive mining method of shrinkage
stoping in favour of the more productive longhole
stoping mining method. The decline was well
advanced by year end and equipment required to
undertake longhole stoping is expected to arrive at
Palito during the first quarter of 2006. We expect to
begin to see the benefits of the new mining method
in the second quarter of 2006. Specifically, longhole
stoping will enable us to increase production levels
from the mine, reduce operating costs on a per tonne
basis and improve safety and working conditions for
our employees. 
Notwithstanding, other shorter-term initiatives were
undertaken leading to a noticeable increase in mining
output in the fourth quarter. This reflected much
improved rates of development, inevitably affecting
grades in the short-term but laying the foundations
for improved production scheduling and grades 
during 2006. 
Plant
The process plant performed exceptionally well during
the year, with gold recovery rates showing a steady
quarterly improvement, ending the year averaging
91.8% in the fourth quarter. Plant capacity also
increased throughout the year according to a three
phase improvement plan.
The first Debottlenecking Phase was completed
relatively quickly and at minimal cost. This optimisation
of the Palito plant resulted in improved throughput to
just above 150 tonnes per day during the second and
third quarters, accompanied by increased gold
recovery rates.
The second Upgrade Phase was initiated later in the
year and the benefits of this phase became evident
during the fourth quarter. The upgrade involved the
addition of a few key items, most notably a third
ball mill which will reduce downtime and provide a
sustainable capacity of between 300 to 350 tonnes
per day.
We await the outcome of a new long-term mine plan
before beginning a third and final Expansion Phase 
of the plant. If results support further expansion, 
we would expect daily Palito capacity could be
increased further through modular expansion of 
the existing plant with potential to establish a regional
processing centre for satellite projects in the Jardim 
do Ouro District.
Palito Main Zone Resource Estimate
Serabi employs its own drill crews and completed a
total of 18,235 metres of core drilling from surface
during 2005, considerably greater than the Company’s
target of 12,000 metres. Most of this drilling was
New mechanised drilling equipment Underground drillers at work Serabi Mining plc Annual report and accounts 2005 6
Chief Executive’s Statement continued
undertaken on and around the Palito Main Zone in
order to assist with mine planning and expand the
quality and quantity of the resource base. It is
noteworthy that the drilling programme also led to
the discovery of the Compressor Lode, located within
25 metres of the Palito Main Zone. The Compressor
Lode has turned out to be a series of at least four,
high-grade veins that have been incorporated into 
the mine plan for 2006. 
Based on this drilling and extensive underground
sampling, a new JORC resource estimate for the 
Palito Main Zone was carried out at year end by
independent consultants Hellman and Schofield Pty. 
As a result of the review, total resources increased
by 74% to 825,900 gold equivalent ounces compared
with the previous December 2004 estimate.
The quality of the resource also improved, with 
a substantial move from the Inferred Resource 
category to the Indicated Resource category; Indicated
Resources now comprise 90% of the total resource
ounces at the Palito Main Zone. 
In addition, the strike length of the resource on
the Palito Main Zone increased from 900 metres to
1,050 metres and the current maximum depth of
the resource increased by 100 metres to the 0 mRL
elevation, or 200 metres below the bottom of the
existing main shaft. These results provide confidence
that the Palito Gold Mine has the potential to grow
into a long-life, low-cost gold producer for Serabi.
The resource remains open in all directions.
An important economic measure for an underground
gold mine is the number of ounces per vertical metre.
It is therefore noteworthy that the new resource
estimate has added approximately 50% more gold
equivalent ounces per vertical metre on the Palito
Table 2: Palito main zone resources
1, 2
(December 2005)
Cut-off Gold grade Copper Contained Au Contained Cu Contained
grade (g/t) Category Tonnes (g/t) grade (%) (ozs) (tonnes) AuEq (ozs)
0.0 Indicated 3,857,000 5.27 0.25 653,100 9,560 739,200
Inferred 779,000 3.20 0.08 81,000 620 86,700
Total 4,636,000 4.93 0.22 734,100 10,180 825,900
2.0 Indicated 2,081,000 9.08 0.39 607,300 8,200 681,200
Inferred 187,000 12.00 0.16 72,300 290 74,900
Total 2,268,000 9.32 0.37 679,600 8,490 756,100
5.0 Indicated 1,089,000 14.41 0.59 504,700 6,400 562,400
Inferred 108,000 18.50 0.16 64,300 170 65,900
Total 1,197,000 14.79 0.55 569,000 6,570 628,300
1
Gold equivalent ounces are based on US$550 per ounce gold and US$2.25 per pound copper; figures have been rounded.
2
Resource has been depleted for mining activity from commencement, comprising 81,053 tonnes for 21,843 ounces of gold 
and 693,600 pounds of copper.
Palito crushing circuit Concentrate being loaded for shipping 3
Serabi Mining plc Annual report and accounts 2005 7
Main Zone, to an average of 5,500 gold equivalent
ounces. The potential economic impact of such an
increase is significant, as more gold can be accessible
from each level of mine development. 
Our objective for 2006 is to continue to expand the
resource at the Palito Main Zone along strike and at
depth. We also expect to increase further the quality
of this resource as an increased rate of underground
drilling will enhance our understanding of the ore body. 
2006 outlook for Palito Gold Mine
With the shift to mechanised mining techniques
at Palito, Serabi is forecasting an increase in gold
equivalent production for 2006 to 45,000 ounces. Total
cash costs are targeted to reach approximately US$200
per ounce by the year end. Based on the new resource,
the geological potential and further drilling of the
Palito Main Zone, we also intend to complete a revised
long-term mine plan during the year, in order to assess
the full potential of the mine and conclude upon the
optimal production rate for the operation.
JARDIM DO OURO DISTRICT EXPLORATION
Overview
The Jardim do Ouro District concessions include eight
identified targets that lie within five kilometres of the
Palito Gold Mine. Serabi’s objective for the Jardim do
Ouro projects is to establish resource ounces and to
assess the potential to develop these resources into
satellite orebodies that could be processed at the
nearby Palito plant.
Initial work during 2005 focused on the Palito West
and Bill’s Pipe targets in the Jardim do Ouro District.
Palito West 
Located approximately 250 metres to the southwest 
of the Palito Main Zone, Palito West is interpreted as a
system of high-grade vein structures. A small exploration
adit was driven into the Palito West structure and
extensive channel samples were taken which yielded
encouraging results. Late in 2005, a preliminary drill
programme of four shallow diamond drill holes was
completed at Palito West, with results of 0.8 metres
grading 20.3 g/t gold and 0.6 metres at 79.5 g/t gold.
Mineralisation at Palito West remains open to the south
and at depth. We plan to test further the extent of
mineralisation at this prospect during 2006.
Bill’s Pipe 
The Bill’s Pipe target lies approximately 1,000 metres 
to the north of the Palito Gold Mine and is the location
of a large gold-in-soil geochemical anomaly. A series 
of trenches were completed at Bill’s Pipe during the
year, yielding promising results of 2.0 metres grading
17.6 g/t gold, 1.5 metres at 10.8 g/t gold and 1.0 metre
at 2.5 g/t gold. The trenching programme was
Table 3: Jardim do Ouro District exploration targets
PROPERTY DESCRIPTION
Palito West High grade vein open to the south and at depth
Chico do Santo Good drill results over 200m and soil geochemistry along strike
Bill’s Pipe Good drill results with extensive anomalous soil geochemistry and coincident
IP anomaly
Ruari’s Ridge Major geochemical, geophysical anomaly
Copper Hill Magnetic high anomaly with extensive sulphides and magnetite
Pele and Buriti Strong soil geochemistry correlated with a major regional structure
Tatu Extensive garimpeiro workings similar to Palito
Rio Novo South Coincident strong gold geochemistry and associated magnetic anomaly
Mineralisation on 200 mRL Serabi Mining plc Annual report and accounts 2005 8
Chief Executive’s Statement continued
followed up with a diamond drilling programme
which intersected high-grade mineralisation contained
within structures similar to those found on the Palito
Main Zone and coincident with the gold-in-soil
geochemical anomaly. Drill results included 0.5 metres
at 27.0 g/t gold and 1.0 metre at 20.7 g/t gold.
Further drilling on the Bill’s Pipe prospect is planned
for 2006.
Work programme for 2006
Serabi’s objective for 2006 is to establish a resource 
on at least one of the Jardim do Ouro District projects.
Keeping this goal in mind, drilling will continue to
follow up the encouraging results from Palito West
and Bill’s Pipe, in addition to other areas. 
TAPAJOS REGIONAL EXPLORATION
Serabi has built an extensive exploration portfolio
throughout the Tapajos Region of Brazil. Our
concessions total approximately 100,000 hectares 
and we are only just beginning to evaluate these
prospective targets. Due to late delivery of new surface
drill rigs, work in 2005 was limited to soil geochemistry
analysis, geophysics and geology on a small number 
of projects. However, the groundwork laid in 2005
provides the foundation for Serabi to advance these
projects during 2006 and initiate drilling.
Pombo Gold Project
In October 2005, Serabi announced that it had
purchased an option to acquire 100% of the Pombo
Gold Project. Copper-gold mineralisation is found
within a major northeast-southwest trending fracture
zone structure. This structure has been mapped in
detail along a strike length of 3.9 kilometres and
mineralisation has so far been identified along
700 metres of strike length.
Channel sampling from old garimpeiro workings
returned six metres at 12 g/t, two metres at 37 g/t,
two metres at 22 g/t, two metres at 15 g/t and three
metres at 15 g/t. Geophysical analysis suggests that the
mineralisation at Pombo may actually expand at depth. 
The similarities between Serabi’s Palito Gold Mine and
the Pombo Gold Project are striking. Both have similar
types of mineralisation, namely gold associated with
pyrite and chalcopyrite. 
Work programme for 2006
A high priority for Serabi during the first half of 2006 
is to drill on the Pombo and Sucuba projects in the
Tapajos. The Company’s goal is to develop an initial
resource on at least one Tapajos regional project and, 
if warranted, to begin work on a scoping study to
assess the possibility of bringing at least one of these
projects into production.
CONCLUSIONS
These are exciting times for Serabi. 2005 was an
important transitional year as we moved from a
private to public company and increased output at the
Palito Gold Mine towards full commercial production.
2006 is expected to be a year of continued growth for
the Company as we expand production further at the
Palito Gold Mine and advance our exploration projects
in the Jardim do Ouro District and the Tapajos Region. 
Bill Clough
Chief Executive
30 March 2006
Table 4: Tapajos Region exploration targets
Property Description
Jutai Large tonnage, low-grade gold system with mineralisation identified over 
1,600 metres of strike length
Castanheira Located 150 kilometres southwest of Palito with extensive garimpeiro workings 
but no systematic exploration to date
Sao Chico Narrow, high-grade gold vein mineralisation with extensive garimpeiro workings
Sucuba Similar to Sao Chico, narrow high-grade vein system hosted within granite
Pizon Gold stockwork system with drill intercepts including 32 metres at 5.3g/t
Igarape Salustiano Located directly along strike of the Palito mine
Ornifel Sucuba Land package also located directly along strike of the Palito mine
Modelo Significant garimpeiro workings but no modern systematic exploration to date 3
Serabi Mining plc Annual report and accounts 2005 9
Financial Review
These financial statements have been prepared for a
short three month period to allow the Company to
report, in the future, its financial results on a calendar
year basis. The Company was required to adopt a long
initial accounting period and the Board was keen to
standardise the Group’s financial reporting at the
earliest possible opportunity. Thus, whilst unusual, 
we believe that the action we have taken will ensure
readers of the accounts are well placed going forward
to properly analyse and compare our results. Such
action also brings our Group reporting dates in line
with Brazilian fiscal requirements as well as being
consistent with many of our peer group.
With Palito still in its development phase the Group
continues to capitalise the majority of costs relating to
the mine. All revenues received from gold production
are set against the costs incurred. The remaining 
costs are expensed as they are incurred, including
administrative expenses incurred in Brazil. Although
depreciation is being charged on the plant and
equipment that is in use, we will only begin to
amortise the accumulated development costs once
commercial production at Palito has been declared. 
We are confident that this stage of the mine’s
development will be reached early in the third 
quarter of 2006.
The consolidated net loss for the period after taxation
amounted to $1,467,860, resulting in a loss per share
of 1.42 cents.
On 10 May 2005, the Company’s shares were
admitted to trading on AIM and concurrently the
Company raised some £6.9 million net of expenses
through the placing of 26.67 million shares at 
30 pence. Whilst the net assets of the Group have
reduced by $1.0 million over the three month
reporting period, in part reflecting the loss incurred, 
it should be noted that since 31 January 2005 they
have increased by $14.7 million.
Over this same period the carrying value of our
exploration and development assets have increased by
$7.7 million whilst the value of plant and equipment
acquired has increased by some $3.4 million.
Much of this value is directly attributable to the work
being undertaken at Palito both expanding the plant,
the development of the mine and exploration work
on the Palito Main Zone and nearby satellite deposits.
The Company has, in keeping with best practice,
adopted the provisions of FRS 20 which reflect 
the requirements of IFRS in respect of share based
payments. Accordingly it has valued options issued to
certain employees prior to the IPO and the loss for the
period reflects the amortisation of a portion of this
notional value. As this value has to be amortised prior
to first vesting dates the full charge will have been
taken prior to commercial production being declared
and will then not have any future detrimental effect
on earnings.
The Board is considering, in conjunction with its
advisors, how the provisions of IFRS may affect the
future results of the Company and will be keeping
shareholders abreast of the implications and its
timetable for adopting the provisions of IFRS.
Clive Line
Finance Director
30 March 2006 Serabi Mining plc Annual report and accounts 2005 10
Board of Directors
GRAHAM ROBERTS, BSC
C.ENG, FIMMM, 55 
(Executive Chairman)
Graham has over 30 years of international
experience in the mining industry and
related financial markets, recently working
mostly in cross-border finance activities.
Prior to joining Serabi in 2003, Graham
worked in financial services for over
19 years, most recently as managing
director and group head of investment
and corporate banking for BMO Nesbitt
Burns in London, a wholly-owned
investment banking subsidiary of the 
Bank of Montreal. 
Previously, Graham worked as senior
research analyst, then as director and
head of Mining Research for WI Carr UK
Ltd. Subsequently from 1994 to 1996, 
he headed up the mining business at 
the UK merchant bank Hambros, where 
he was executive director of Hambros
Equities UK Ltd and, as a director of the
bank, provided a full range of cross-border
capital markets and advisory services,
working with mining companies across
the globe.
Before entering the financial services
sector, Graham worked at a senior level
for 13 years at Consolidated Gold Fields
and its subsidiaries in the UK and Africa, in
corporate finance, mining and exploration,
across a wide range of base metal and
precious metal projects and mines. 
He has a BSc in Geology and Geography
from London University, is a Fellow of the
Institute of Materials, Minerals and Mining,
a Chartered Engineer and is a member of
the London Association of Mining Analysts.
BILL CLOUGH, BSC(GEOL), BCOM(HONS), 45
(Chief Executive)
Bill was the founding investor of Serabi
Mineraçao Ltda and has been active in
Brazil since 1999.
He assembled a portfolio of exploration
interests in the Tapajos Region which
culminated in the establishment of Serabi
Mineraçao Ltda in 2001.
Bill is also non-executive Chairman of
Brazilian-based nickel resources company,
Mirabela Nickel Limited. He also has
significant interests in a number of
other ASX and AIM listed and unlisted
international exploration and mining
companies including Exco Resources Ltd,
Sally Malay Mining Ltd and Albidon Ltd.
In 1984, Bill joined his family’s engineering
construction company, Clough Engineering
Group, as business development manager.
Bill was appointed to the Clough Limited
board as a non-executive director in 1994
until December 2002. Clough Limited was
listed on the Australian Stock Exchange
in 1998.
CLIVE LINE, BA, ACA, 44 
(Finance Director and
Company Secretary)
Clive is a Chartered Accountant and has
been involved in mining and other natural
resources companies since 1987, overseeing
all of the financial and legal issues for a
variety of exploration and development
projects in Africa, Europe and the former
Soviet Union.
Having worked with Price Waterhouse
in both the UK and Australia, he joined
Cluff Resources plc in 1987, where he 
was finance director prior to joining the
privately owned Quest Petroleum Group
in a similar position in 1993. Following the
successful sale of this group he became
involved with both Eurasia Mining plc and
Northern Petroleum plc, both of which
were admitted to trading on AIM in 1996.
He has also worked within one of the
world’s largest marketing services groups
operating as a divisional finance director.
He has an Honours degree in Accounting
and Finance and is a member of the
Institute of Chartered Accountants of
England and Wales. 3
Serabi Mining plc Annual report and accounts 2005 11
RICHARD ROBINSON, BSC (HONS)
MSC,53
(Non-executive Director)
Richard has 29 years of experience in the
mining and smelting industry. He has had
extensive involvement with the gold, base
metal, platinum and coal mining and
smelting industries, their international
markets and national and industry
organisations, such as the World Gold
Council through various directorships and
other executive positions held over the
last 21 years. He is currently a director
of companies in the base metals mining,
smelting and recycling industry and in
refining and advanced technologies in the
precious metals industry. Richard was also
previously the managing director of
LaSource SAS in Paris.
Prior to moving to Europe in 1998, he
was chief executive officer of Gold Fields
Limited and previously an executive
director of Gold Fields of South Africa Ltd,
with responsibility for the group’s gold
operations. From 1993 he directed the
international expansion of Gold Fields’
exploration and operations.
Richard has an Honours degree in
Computer Science, a Masters degree in
Mineral Economics from Queen’s University
in Canada and has attended the Senior
Executive Programs at The Management
College at Henley-on-Thames, England
and at INSEAD at Fontainebleau, France.
ROGER DAVEY, ACSM, MSC.
C.ENG., EUR.ING., MIMMM, 60
(Non-executive Director)
Roger is a Chartered Mining Engineer
with over thirty years of experience in
the mining industry. He is presently an
assistant director and the senior mining
engineer at N M Rothschild (London) in
the mining and metals project finance
team. Prior to this his experience covered
the financing, development and operation
of both underground and surface mining
operations in gold and base metals at
senior management and director level
in South America, Africa and the
United Kingdom.
Previous positions held include director,
vice president and general manager
of Minorco/AngloGold subsidiaries
in Argentina; operations director of
Greenwich Resources plc in London;
production manager for Blue Circle
Industries in Chile; and various production
management roles in Gold Fields of
South Africa.
Roger is a graduate of the Camborne
School of Mines, England, with a Master
of Science degree in Mineral Production
Management from Imperial College,
London University. He is a Chartered
Engineer (C.Eng.), a European Engineer
(Eur. Ing.) and a Member of the Institute
of Materials, Minerals and Mining (MIMMM). Serabi Mining plc Annual report and accounts 2005 12
The Community, Health, Safety and
the Environment
The Company endeavours to carry out its operations in a manner which protects people and property and
we require of our employees that all business be conducted in a socially responsible and ethical manner that
promotes the preservation of the natural environment, the way of life of indigenous people and complies with 
all applicable legislation and standards.
The Jardim do Ouro community relied on the artisanal mining community for its economic well-being.
The decline in these operations has created financial hardship for this small community. Serabi works closely
with community delegates helping to highlight the region’s needs and has supported the construction of a new
school, the introduction of additional security and policing to Jardim do Ouro and through its on-site medical
clinic has brought healthcare facilities to the community. Further, through Serabi’s efforts and presence,
the community has now had access to grid electricity since the start of 2006.
The Company is committed to providing high standards of safety and health for all employees and stakeholders
associated with its activities. The Company seeks to:
 achieve continuous improvement by incorporating applicable evolving management systems, knowledge and
technology, in conjunction with the utilisation of best practice procedures;
 manage risk through the introduction of a hazard identification and management programme underpinned
by a continuous performance review process;
 ensure that all employees, including contractors, are fully instructed, trained and assessed in the tasks each will
be required to perform and in the operation of all plant and equipment;
 communicate and consult with employees, including contractors, and where appropriate involve them in 
the development of practices and procedures focused on the improvement of occupational safety and 
health performance;
 ensure that all employees, including contractors’ employees, are fully aware of their responsibilities to take
reasonable care to ensure their own health and safety at work and to avoid adversely affecting the health or
safety of others through any act or omission at work;
 co-operate with government and the community on occupational safety and health issues and contribute to
the development of relevant occupational safety and health policy, legislation, standards and research; and
 comply with all appropriate legislation and standards as a minimum.
The Company is seeking to develop a culture where safety is a core value and every individual takes responsibility
for their actions and works as part of a team with a shared vision and objective to eliminate all accidents from
the workplace.
The Company believes that mining should be conducted in an environmentally responsible manner, and as such 
is committed to protecting the environment wherever the Company is exploring for new resources, developing,
operating or reclaiming mines.
The Company’s operations are conducted in compliance with all applicable environmental obligations. Further,
the Company commits to continually improving environmental performance by integrating environmental
considerations into project planning, exploration, operations, rehabilitation and decommissioning. Serabi also
implements environmental controls and strategies to identify, minimise and, wherever possible, avoid environmental
impacts arising from its operations. 
The Company works to prevent pollution by minimising emissions and the generation of waste and disposing of
waste in an environmentally responsible manner. We communicate openly with stakeholders and the community
about environmental issues and expectations and endeavour to ensure that we provide sufficient training and
resources for effective environmental management.
Local Jardim do Ouro children enjoy lunch after a healthcare visit at Palito 3
Serabi Mining plc Annual report and accounts 2005 13
Directors’ Report
for the period from 1 October 2005 to 31 December 2005
The Directors present their report together with the audited financial statements for the period 1 October 2005
to 31 December 2005.
RESULTS AND DIVIDENDS
The Group loss for the period after taxation and minority interests amounts to $1,467,860 (prior period loss of
$3,893,593). The Directors do not recommend the payment of a dividend. The results for the period are set out
on page 20 in the consolidated profit and loss account.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The Company was incorporated on 18 May 2004. The principal activity of the Company is that of a holding
company, and a provider of support and management services to its operating subsidiary. Together with its
subsidiaries (see note 10) it is involved in the development of gold and other metals mining projects in Brazil
and the operation of the Palito Gold Mine in the Tapajos region of Brazil.
A detailed review of activities, business developments and the Company’s projects is included in the Chairman’s
Statement and the Chief Executive’s Statement on pages 2 to 8.
DIRECTORS AND THEIR INTERESTS
Ordinary shares and options
The Directors of the Company, who all held office throughout the three month period ended 31 December 2005,
had the following interests in the ordinary shares of the Company according to the register of Director’s interests.
Share options Shares 
held at held at
31 December 2005 Option Exercise at 31 December 2005
and 30 September 2005 price period and 30 September 2005
Graham Roberts 1,373,222 15p 30 November 2005 to 1 April 2016 612,501
915,481 30p 1 April 2006 to 1 April 2016
Bill Clough 1,029,916 15p 30 November 2005 to 1 April 2016 45,028,617
686,611 30p 1 April 2006 to 1 April 2016
Clive Line 572,176 15p 30 November 2005 to 1 April 2016 —
572,176 30p 1 April 2006 to 1 April 2016
Richard Robinson 143,044 15p 30 November 2005 to 1 April 2016 50,000
143,044 30p 1 April 2006 to 1 April 2016
Roger Davey 143,044 15p 30 November 2005 to 1 April 2016 —
143,044 30p 1 April 2006 to 1 April 2016
As of the date of this report there have been no changes to these holdings.
During the three month period ended 31 December 2005 the Company’s shares have traded between 27 pence
and 28 pence. On 31 December 2005 the closing price was 27 pence. Serabi Mining plc Annual report and accounts 2005 14
Directors’ Report
for the period from 1 October 2005 to 31 December 2005
DIRECTORS AND THEIR INTERESTS (CONTINUED)
Remuneration
For the
period from 
incorporation to
30 September 
Salary Pension Other Total 2005
Director $ $ $ $ $
Graham Roberts 37,650 2,755 1,093 41,498 71,956
Bill Clough 39,358 3,542 1,093 43,993 83,509
Clive Line 37,172 3,345 1,093 41,610 78,509
Richard Robinson 5,248 — — 5,248 10,147
Roger Davey 5,248 — — 5,248 10,147
Total 124,676 9,642 3,279 137,597 254,743
Included in the remuneration report for the period since incorporation until 30 September 2005 are pension
costs of $18,304.
As disclosed at the time of the Company’s Initial Public Offer, Graham Roberts, Bill Clough and Clive Line are 
each entitled to receive an amount equal to one year’s salary payable in ordinary shares at the placing price of 
30 pence. The Company intends that these shares be issued to personal pension plans held by the individuals
during the 2nd quarter of 2006.
SUBSTANTIAL SHAREHOLDINGS
As at 29 March 2006 the Company was aware of the following holdings of 3% or more in the Company’s issued
share capital.
Number of
Name shares held Percentage
McRae Investments Pty Ltd
1
27,299,651 26.46%
WM Clough Pty Ltd
1
17,461,536 16.93%
JPMF Natural Resources Fund 4,157,500 4.03%
Standard Bank plc 4,133,334 4.01%
1
Bill Clough is a Director and is the sole shareholder of WM Clough Pty Ltd and is a Director and has a minority interest in McRae Investments Pty Ltd.
Bill Clough is also the beneficial owner of Gigantic Resources Inc, which holds 267,430 ordinary shares representing 0.26% of the ordinary shares
in total.
SHARE CAPITAL
Movements in share capital during the period are disclosed in note 15 to the financial statements.
At the Annual General Meeting held on 16 November 2005, the Company formally approved a Long-term
Incentive Plan and a Cash and Deferred Share Bonus Scheme, for employees. To date no issues have been made
under these plans.
CREDITOR PAYMENT POLICY
It is the Group’s policy to settle all amounts due to creditors in accordance with agreed terms and conditions
agreed between the Group and suppliers, provided that all trading terms and conditions have been complied
with. As at 31 December 2005, the Group had an average of 25.9 days (prior period: 22.5 days) purchases
outstanding in creditors.
GOING CONCERN
Following a review of the Company’s financial position and its budgets and plans, the Directors have concluded
that sufficient financial resources will be available to meet the Company’s current and foreseeable working capital
requirements. On this basis, they consider it appropriate to prepare the financial statements on the going concern basis. 3
Serabi Mining plc Annual report and accounts 2005 15
DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the annual report and financial statements in accordance with applicable
law and United Kingdom Generally Accepted Accounting Practice.
In preparing those financial statements the Directors are required to;
 select suitable accounting policies and apply them consistently;
 make judgments and estimates that are reasonable and prudent;
 state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; and
 prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the
Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the Company and Group and enable them to ensure that the financial
statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the
Company and Group and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
CORPORATE GOVERNANCE
The Directors believe that the Company complies with the principles set out in The Combined Code on
Corporate Governance published in July 2003 by the Financial Reporting Council so far as they consider
is appropriate, having regard to the size and nature of activities of the Group.
Board composition
The Directors have responsibility for the overall corporate governance of the Group and recognise the need for
the highest standards of behaviour and accountability. The Directors are committed to the principles underlying
best practice in corporate governance and intend to comply with the principles of the Combined Code in such
respects as they consider appropriate for a company of its size and nature. The Board has a wide range of
experience directly relevant to the Company and its activities and its structure ensures that no one individual
or group dominates the decision making process.
Committees
The Company has established an Audit Committee, a Remuneration Committee and an Executive Committee.
Audit Committee
In the early stages of the Company’s development the Board have considered it beneficial for the Finance Director
to be a member of the Audit Committee. This is however a matter that will be kept under review as the
Company develops.
The Audit Committee comprises two Non-executive Directors and the Finance Director. It is responsible for
ensuring that the financial performance of the Group is properly reported on and monitored, considering
and setting appropriate accounting policies, and reviewing the auditors’ report relating to accounts and internal
control systems. The Audit Committee meets at least twice a year. Serabi Mining plc Annual report and accounts 2005 16
Directors’ Report
for the period from 1 October 2005 to 31 December 2005
CORPORATE GOVERNANCE (CONTINUED)
Remuneration Committee
The Remuneration Committee comprises two Non-executive Directors. It is responsible for determining and
agreeing with the Board the framework for the remuneration of the Managing Director, all other Executive
Directors, the Chairman of the Company (if an Executive Director), the Company Secretary and such other
members of the executive management as it feels appropriate to consider. It is furthermore responsible for
determining the total individual remuneration packages of each Director including, where appropriate, bonuses,
incentive payments and share options. It also considers recommendations from the Executive Directors in respect
of proposals for bonuses, incentive payments and share options to be awarded to senior managers within the
Group and makes recommendations on the overall remuneration plans adopted by the Company. The
remuneration of the Non-executive Directors is a matter that is dealt with by the Board as a whole.
Executive Committee
The Board has appointed an Executive Committee, to oversee and coordinate the day-to-day running of the
Company. It is empowered to make decisions over a number of areas without reference to the full Board and
specifically to deal with all matters relating to the daily operation of the Company.
The Executive Committee, comprising the Managing Director, Chairman and the Finance Director, is responsible
for the daily operation of the Company, and for making recommendations to the Board regarding short- and
medium-term budgets, targets and overall objectives and strategies for the Company.
Share dealing
The Company has adopted a share dealing code for Directors and relevant employees in accordance with the
AIM Rules and will take proper steps to ensure compliance by the Directors and those employees.
Internal controls
The Directors acknowledge their responsibility for the Company’s system of internal controls and procedures and
for reviewing their effectiveness. Such controls and procedures are designed to safe-guard the Company’s assets
and ensure reliability of reporting information, financial and otherwise, for both internal use and external
publication. Whilst conscious that no system can provide absolute assurance against material mis-statement, 
fraud, or loss, the Directors are satisfied that having regard to the Company’s size and stage of development, 
the system of controls is currently adequate and effective.
MANAGEMENT OF FINANCIAL RISKS
The Board endeavours to balance the financial risks that the Company may have exposure to with the desire
to maximise value and returns for shareholders.
The Group has not entered into any derivative transactions and it is not currently the Group’s policy to undertake
trading in financial instruments.
The main financial risks arising from the Group’s activities are commodity prices, currency risk, liquidity and
interest rate risk. The Board reviews and agrees policies for managing each of these risks and these are
summarised below.
Commodity price risk
The Group is exposed to fluctuations in commodity prices and in particular the price of Gold and Copper. It is not
currently the Group’s intention to enter into any arrangements to protect itself from changes in the prices of
these commodities. The Group does however closely monitor the prices of these commodities and will consider
the use of hedging contracts where appropriate in future. 3
Serabi Mining plc Annual report and accounts 2005 17
Interest rate risk
The Group currently finances its operations through equity financing, and has a short-term trade finance facility.
There is considered not to be any material interest rate risk. The Group’s policy is to retain surplus funds as 
short-term deposits at prevailing market rates.
The fair value of all financial instruments is approximately equal to book value due to their short-term nature.
Liquidity risk
To date the Group has relied on shareholder funding to finance its operation. The Group has no borrowings. 
The Consolidated entity maintains a credit line in Brazil through a bank agreement with a limit of Brazil real 200,000
that can be used for daily working capital. This credit line is not in use as of the date of the financial statements.
As the Group has limited cash resources and steady income, the liquidity risk is not significant and is managed by
control over expenditure.
Currency risk
Although the Group is incorporated in the United Kingdom its financial statements are denominated in 
US dollars.
Share issues have been priced solely in sterling. Expenditure is in US dollars, sterling, euros, Australian dollars and
Brazilian real. 
The Group’s main subsidiary operates in Brazil with its expenditure being principally in real and its financial
statements are maintained in that currency. The Group’s policy for dealing with exchange differences is outlined
in the Statement of Accounting Policies under the heading “Foreign currencies”.
The Group does not presently utilise swaps or forward contracts to manage its currency exposures, although
such facilities are considered and may be used where appropriate in the future.
The Group seeks to minimise its exposure to currency risk by closely monitoring exchange rates.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
For the year ended 31 December 2007, the Group will be required under European Union Law to prepare its
consolidated accounts in accordance with International Financial Reporting Standards (IFRS). The accounts will
include comparative information for the preceding period also prepared under IFRS.
The Board is currently considering the implications of IFRS for the Company and in conjunction with its advisers
determining the appropriate time to adopt IFRS, given that certain of the standards are still subject to revision.
The Board will keep shareholders appraised of the potential implications and its proposals for adoption.
POST BALANCE SHEET EVENTS
On 30 March 2006, the Company announced the placing of 6.5 million new ordinary shares of 10 pence each 
at a price of 40 pence per share raising approximately £2.46 million (net of expenses). The placing is conditional
upon the shares being admitted to trading on AIM. Application for the shares to be admitted to trading was
made on 30 March 2006. The Directors do not believe there to be any reason why the new ordinary shares will
not be admitted to trading. Serabi Mining plc Annual report and accounts 2005 18
Directors’ Report
for the period from 1 October 2005 to 31 December 2005
INDEMNIFICATION OF DIRECTORS AND OFFICERS
During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the
Company (as previously named), the Company Secretary, and all executive officers of the Company against liability
incurred as such a Director, Company Secretary or executive officer to the extent permitted under legislation.
AUDITORS
PKF (UK) LLP has expressed their willingness to continue in office. A resolution to reappoint them as auditors will be
put before the forthcoming Annual General Meeting.
As far as each of the Directors are aware, at the time this report was approved:
a) there is no relevant available information of which the auditors are unaware; and
b) they have taken all steps that ought to have been taken to make themselves aware of any relevant audit
information and to establish that the auditors are aware of that information.
By order of the Board
CM Line
Company Secretary
30 March 2006 3
Serabi Mining plc Annual report and accounts 2005 19
Independent Auditors’ Report
To the members of Serabi Mining plc
We have audited the Group and parent company financial statements (‘the financial statements’) of Serabi Mining plc
for the period ended 31 December 2005 which comprise the consolidated profit and loss account, the consolidated
and company balance sheets, the consolidated cash flow statement, the consolidated statement of total recognised
gains and losses and the related notes. The financial statements have been prepared under the accounting policies set
out therein. 
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the
Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s members
those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The Directors’ responsibilities for preparing the annual report and the financial statements in accordance with
applicable law and United Kingdom accounting standards (‘United Kingdom Generally Accepted Accounting
Practice’) are set out in the statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory
requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and have been
properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the
Directors’ report is not consistent with the financial statements, if the Company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, or if information
specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the annual report and consider whether it is consistent with the audited
financial statements. The other information comprises only the Directors’ report, the Chairman’s Statement, the
Chief Executive’s Statement and the Financial Review. We consider the implications for our report if we become
aware of any apparent mis-statements or material inconsistencies with the financial statements. Our responsibilities
do not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments
made by the Directors in the preparation of the financial statements, and of whether the accounting policies are
appropriate to the Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
are free from material mis-statement, whether caused by fraud or other irregularity or error. In forming our
opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
OPINION
In our opinion the financial statements:
 give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the
state of the Group’s and the parent company’s affairs as at 31 December 2005 and of the Group’s loss for the
period then ended; and
 have been properly prepared in accordance with the Companies Act 1985.
PKF (UK) LLP
Registered Auditors
London UK
31 March 2006 Serabi Mining plc Annual report and accounts 2005 20
Profit and Loss Account
for the period from 1 October 2005 to 31 December 2005
(expressed in US$)
Group
For the period from For the period from
1 October 2005 to incorporation to
Notes 31 December 2005 30 September 2005
Turnover — 343,064
Operating expenses — (255,913)
Profit from operations — 87,151
Administration expenses 3 (1,383,272) (3,865,896)
Loss on ordinary activities before interest and other income (1,383,272) (3,778,745)
Foreign exchange loss (35,703) (171,310)
Interest payable 4 (69,929) (99,973)
Interest receivable 4 21,044 156,959
Loss on ordinary activities before taxation (1,467,860) (3,893,069)
Taxation 5 — (524)
Loss on ordinary activities after taxation (1,467,860) (3,893,593)
Loss per ordinary share (basic and diluted) 7 (1.42c) (6.51c)
Statement of Total Recognised Gains and Losses
for the period from 1 October 2005 to 31 December 2005
(expressed in US$)
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
Loss for the period (1,467,860) (3,893,593)
Exchange loss on foreign currency net investment (175,330) (314,444)
Total recognised losses for the period (1,643,190) (4,208,037)
All transactions arise from continuing operations. 3
Serabi Mining plc Annual report and accounts 2005 21
Balance Sheets
as at 31 December 2005
(expressed in US$)
Group Holding company
31 December 30 September 31 December 30 September 
Notes 2005 2005 2005 2005
Fixed assets
Intangible assets
Goodwill on acquisition 8 1,752,516 1,752,516 — —
Tangible assets
Property, plant and equipment 9 5,375,621 4,088,030 46,802 20,986
Exploration and development costs 9 15,831,875 14,609,905 1,073,225 789,001
Investments 10 — — 17,339,256 17,339,256
Current assets
Stock and work in progress 11 1,825,479 902,123 — —
Debtors due within one year 12 2,818,551 1,162,271 425,362 292,759
Debtors due after more than one year 12 — — 9,594,130 4,357,374
Cash at bank and in hand 2,152,452 7,557,138 1,552,048 7,238,688
6,796,482 9,621,532 11,571,540 11,888,821
Creditors: amounts falling due within one year 13 (2,451,537) (2,052,507) (646,558) (577,959)
Net current assets 4,344,945 7,569,025 10,924,982 11,310,862
Total assets less current liabilities 27,304,957 28,019,476 29,384,265 29,460,105
Creditors: amounts falling due after 
more than one year 13 (244,724) — — —
Provisions for liabilities and charges 14 (428,944) (451,528) — —
Net assets 26,631,289 27,567,948 29,384,265 29,460,105
Capital and reserves
Called up share capital 15 17,974,336 17,974,336 17,974,336 17,974,336
Share premium reserve 16 11,818,128 11,818,128 11,818,128 11,818,128
Option reserve 15 2,690,052 1,983,521 2,690,052 1,983,521
Profit and loss account 17 (5,851,227) (4,208,037) (3,098,251) (2,315,880)
Equity shareholders’ funds 18 26,631,289 27,567,948 29,384,265 29,460,105
The financial statements were approved by the Board of Directors on 30 March 2006 and signed on its behalf by:
Clive Line
Finance Director
30 March 2006 Serabi Mining plc Annual report and accounts 2005 22
Consolidated Cash Flow Statement
for the period from 1 October 2005 to 31 December 2005
(expressed in US$)
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
Net cash flow from operations (2,725,970) (2,363,302)
Returns on investment and servicing of finance
Interest received 21,044 156,959
Interest paid (69,929) (99,973)
Net cash (outflow)/inflow from returns on investments and 
servicing of finance (48,885) 56,986
Capital expenditure and financial investment
Purchase of tangible fixed assets (1,627,113) (2,603,143)
Exploration and development expenditure (967,746) (8,538,215)
Net cash outflow on capital expenditure and financial investment (2,594,859) (11,141,358)
Acquisitions and disposals
Capital and loan investments to subsidiaries — —
Cash acquired with subsidiaries — —
Net cash outflow on acquisitions and disposals — —
Cash outflow before financing (5,369,714) (13,447,674)
Financing activities
Issue of ordinary share capital — 29,875,674
Repayment of shareholder loans — (8,174,336)
Net cash inflow from financing activities — 21,701,338
(Decrease)/increase in cash at bank and in hand (5,369,714) 8,253,664 3
Serabi Mining plc Annual report and accounts 2005 23
Reconciliation of Operating Loss to Net Cash Flow
from Operating Activities
for the period from 1 October 2005 to 31 December 2005 
(expressed in US$)
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
Operating loss (1,383,272) (3,778,745)
Depreciation 339,522 285,512
Write off of exploration and development costs — 48,993
(Increase) in stocks (1,003,810) (740,257)
Option costs 422,298 1,194,520
(Increase) in debtors and prepayments (1,754,743) (545,030)
Increase in creditors and accruals 709,714 1,190,992
Foreign exchange (55,679) (19,287)
Net cash outflow from operating activities (2,725,970) (2,363,302)
Reconciliation of Cash to Net Funds 
for the period from 1 October 2005 to 31 December 2005
(expressed in US$)
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
Cash at bank and in hand at beginning of period 7,557,138 —
Cash flow (5,369,714) 8,253,664
Exchange loss (34,972) (696,526)
Cash at bank and in hand at end of period 2,152,452 7,557,138 Serabi Mining plc Annual report and accounts 2005 24
Notes to the Financial Statements
1. ACCOUNTING POLICIES
These accounts represent the financial statements of Serabi Mining plc for a three month period ended 
31 December 2005. 
(a) Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with
applicable Accounting Standards in the United Kingdom.
(b) Basis of consolidation
On acquisition of a subsidiary, all of the subsidiary’s assets and liabilities that exist at the date of acquisition are
recorded at their fair value, reflecting their condition at that date. All changes to those assets and liabilities,
and the resulting gains and losses that arise after the Group has gained control of the subsidiary are taken
to the profit and loss account.
The consolidated profit and loss account and consolidated balance sheet include the financial statements of
the company and its subsidiary undertakings up to 31 December 2005. The results of subsidiaries acquired are
included in the consolidated profit and loss account from the date on which control passes. Intra-group sales
and profits are eliminated fully on consolidation.
As permitted by Section 230 of the Companies Act 1985, a separate profit and loss account is not presented in
respect of the Company. 
Comparative financial information is provided for the period since incorporation on 18 May 2004 to 
30 September 2005.
(c) Turnover
Turnover represents amounts receivable in respect of sales of gold, copper and other minerals and represents
only sales for which contracts have been agreed and for which the product has been delivered to the purchaser
in the manner set out in the contract. Turnover is stated net of any applicable sales taxes.
Revenues are recognised only at the time of sale. Any unsold production and in particular concentrate is held as
inventory and valued at production cost until sold.
In 2004, the Company generated gold sales from re-treatment of some old tailings. As the reprocessing of this
material was not part of the long-term development of the mine this income and its associated costs has been
taken directly to the profit and loss account.
The Company is currently undertaking mining from an area known as Palito Hill. Given the history of the
development of the Palito mine and in particular the ability unlike many mines to generate cash flow at a very
early stage of mine development through the availability of existing plant at the site, the Board has considered
that the current activities represent development activity rather than commercial production. At this stage the
operations have not reached the targets set by the Board for commercial production and accordingly all mine
and plant costs have been capitalised as ongoing development costs. All sales revenue to date has been set off
against the development costs.
(d) Goodwill
Goodwill arising on consolidation represents the excess of the fair value of the consideration paid over the fair
value of the identifiable net assets acquired. As commercial production has not yet commenced and amortisation
would be calculated on a unit of production basis, no amortisation charge has been recorded.
Provision is made for any impairment in the carrying value of goodwill to the extent that the asset’s recoverable
amount is reduced below its carrying value.
(e) Receivables
Trade accounts receivable, amounts due from related parties and other receivables represent the principal
amounts due at the balance sheet date plus accrued interest and less, where applicable, any unearned income
and provisions for doubtful accounts.
(f) Accounts payable
Trade accounts payable, amounts owing to related parties and other payables and accrued liabilities represent
the principle amounts outstanding at the balance sheet date plus, where applicable any accrued interest. 3
Serabi Mining plc Annual report and accounts 2005 25
(g) Deferred taxation
Deferred tax arises, in accordance with FRS 19, when items are recognised for tax purposes in periods that differ
from the periods in which the items are recognised for accounting purposes. An asset is only recognised to the
extent that its recovery is deemed probable. They should be regarded as recoverable to the extent that on the
basis of all available evidence it can be regarded as more likely than not that there will be suitable taxable profits
from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured
on a non-discounted basis at the tax rates that are expected to apply in the period in which timing differences
reverse, based on tax rates and laws substantially enacted at the balance sheet date.
(h) Foreign currencies
The Group has adopted the US dollar as its reporting currency as the bulk of its revenues are anticipated to be
linked to the US dollar. Transactions in currencies other than US dollars are translated at the rates prevailing at
the dates of the transactions. Assets and liabilities denominated in other currencies are translated at the rates
ruling at the balance sheet date. Gains or losses are reflected in the profit and loss account.
On consolidation, exchange differences arising from the translation of the net investments in foreign subsidiaries
are taken to reserves.
The US dollar/sterling exchange rate at 31 December 2005 was 1.7208. The US dollar/Brazilian real exchange rate
at 31 December 2005 was 2.3313.
(i) Lease payments
Payments made under operating leases are charged to the profit and loss account as incurred. The Company
does not have any finance leases.
(j) Pension costs
The Group does not operate any pension plan for its employees although it does make contributions to employee
pension plans in accordance with instructions from those employees. The Company has no contractual commitment
as to the ability of those funds to provide any minimum level of future benefit to the individual and is contracted
only to make the contributions. Company contributions to such schemes are charged against profits as they full due.
(k) Share options
In accordance with FRS 20 the entity measures the goods or services received at fair value in respect of
equity-settled share-based payment transactions (such as share options). This cost is charged to the profit and
loss account or included in costs of exploration and development assets. The Black-Scholes method has been
used to calculate this fair value.
The Company measures the fair value of the services received by reference to the fair value of the equity
instruments granted, because typically it is not possible to estimate reliably the fair value of the services received.
The fair value is measured at the date of grant. Where the equity instruments granted do not vest immediately
but after a specified period of time, the fair value is accounted for over the vesting period.
(l) Exploration of mineral properties
All costs related to the exploration of mineral properties are capitalised and deferred until either the properties are
brought into commercial production, at which time they are depleted on a unit of production basis, or until the
properties are sold, allowed to lapse or abandoned, at which time they are charged to the profit and loss account.
On an annual basis the carrying value attributed to each of the mineral properties is compared with the estimated
future value that will be derived from that property. Any impairment is written off to the profit and loss account.
(m) Inventories
Inventories are stated at the lower of cost and net realisable value. Costs are allocated on an average basis
and include direct material, labour, related transportation costs to the point of sale and other fixed and variable
overhead costs directly related to mining activities. Net realisable value is the estimated selling price in the
ordinary course of business, after deducting the costs of marketing, selling and distribution to customers. Serabi Mining plc Annual report and accounts 2005 26
Notes to the Financial Statements
1. ACCOUNTING POLICIES (CONTINUED)
(n) Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated to write off the
cost of the assets over their useful lives as follows:
Mining assets
Processing plant three – seven years
Other plant and assay equipment two – ten years
Heavy vehicles eight years
Light vehicles three years
Land and buildings ten – twenty years
Other assets
Furniture and fittings five years
Office equipment four years
Communications installations five years
Computers three years
(o) Land reclamation/environmental remediation costs
The cost of any approved decommissioning or restoration programmes, is capitalised at the time that it is
incurred or provision is considered appropriate. The capitalised cost is amortised over the life of the operation. 
(p) Investments
Non-current investments are carried at the lower of cost and recoverable amount.
(q) Employee benefits
Provision is made for benefits accruing to employees in respect of salary and wages, annual leave and long
service leave where it is probable that settlement will be required and they are capable of measurement.
(r) Earnings per share
Basic earnings per share is determined by dividing the net profit attributable to the members, adjusted to exclude
costs of servicing equity (other than dividends), by the weighted average number of ordinary shares in issue
during the period. 3
Serabi Mining plc Annual report and accounts 2005 27
2. SEGMENTAL ANALYSIS
The geographic analysis of turnover and profit before taxation and the analysis of net assets employed by
geographical area and activity are:
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
$ $
Turnover
Brazil – gold sales — 343,064
Loss before interest and taxation
United Kingdom (803,376) (2,472,838)
Australia (86,839) (808,120)
Brazil (493,057) (497,787)
Total (1,383,272) (3,778,745)
Net assets employed – analysed by geographical area
United Kingdom 4,869,263 10,106,471
Australia 305,464 203,377
Brazil 21,456,562 17,258,100
Total 26,631,289 27,567,948
All assets are utilised in gold mining and exploration activities.
3. STATUTORY INFORMATION
The following amounts were charged to the profit and loss account and balance sheet during the period:
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
$ $
Audit fees – PKF 65,475 140,880
Auditors’ remuneration in respect of non-audit assignments – PKF
1
21,812 79,002
Auditors’ remuneration in respect of non-audit assignments
(charged to share premium reserve) – PKF
2
— 120,440
Write off of exploration and development costs — 48,993
Depreciation (plant and equipment) 339,522 285,512
Operating lease charges 19,198 25,327
1
Taxation $8,507: (prior period: $23,015) Accounting advice $13,305 (prior period: $55,987).
2
Reporting Accountants to Placing and Admission. Serabi Mining plc Annual report and accounts 2005 28
Notes to the Financial Statements
4. INTEREST PAYABLE AND RECEIVABLE
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
$ $
Interest payable on short-term trade finance (69,929) (99,973)
Interest receivable on short-term deposits 21,044 156,959
Net interest (48,885) 56,986
5. TAXATION
Group
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
$ $
Current tax
UK tax — 524
Foreign tax — —
Deferred tax — —
Total — 524
The tax provision for the current period varies from the standard rate of corporation tax in the UK of 30%.
The differences are explained as follows:
(Loss) on ordinary activities before tax (1,467,860) (3,893,069)
Tax thereon at UK corporate tax rate of 30% (440,358) (1,167,921)
Factors affecting the tax charge:
Expenses not deductible for tax purposes 128,022 401,194
Tax losses carried forward 321,628 697,328
Lower tax rates overseas (9,441) 69,891
Capital allowance in excess of depreciation 149 32
Current tax — 524
There is a potential deferred tax asset of $860,000 (prior period: $400,000) relating primarily to carried forward
tax losses. This asset has not been recognised in the financial statements because of uncertainty as to the time
period over which the asset may be recovered. 3
Serabi Mining plc Annual report and accounts 2005 29
6. EMPLOYEE INFORMATION
The average number of persons, including Executive Directors, employed by the Group during the period was:
For the period from For the period from
1 October 2005 to incorporation to
31 December 2005 30 September 2005
Number Number
Management and administration 23 15
Exploration 57 43
Mine development 325 240
Total 405 298
$ $
Staff costs
Wages and salaries 1,105,166 3,353,727
Cost of incentive scheme shares vested 706,531 1,983,521
Social security costs 421,144 398,221
Pension contributions 93,488 207,129
Total 2,326,329 5,942,598
Details of the remuneration of the Directors is set out on page 14.
No company within the Group operates a pension plan for the Directors or the employees. For those Executive
Directors and employees who have an entitlement to pension provision, the premiums are paid directly to the
personal pension plans selected by the individuals. The Company obligation is limited to making fixed annual
payments to these individual plans.
Serabi Mineraçao Ltda contributes via social security payments to the state pension scheme which operates in
Brazil, and to which all its employees are entitled.
7. LOSS PER SHARE
The calculation of the basic loss per share of 1.42 cents (prior period loss per share: 6.51 cents) is based on the loss
attributable to ordinary shareholders of $1,467,860 (prior period loss: $3,893,593) and on the weighted average
number of ordinary shares of 102,991,636 (prior period: 59,807,973) in issue during the period.
In accordance with FRS 14, no diluted earnings per share is presented as the effect on the exercise of share
options would be to decrease the loss per share. Serabi Mining plc Annual report and accounts 2005 30
Notes to the Financial Statements
8. INTANGIBLE ASSETS 
Goodwill
Group
31 December 30 September
2005 2005
$ $
Cost
Opening balance 1,752,516 —
Acquired with subsidiary — 1,752,516
Total as at 31 December 2005 1,752,516 1,752,516
Goodwill Total
$ $
Cost
Balance at 30 September 2005 1,752,516 1,752,516
Additions ——
At 31 December 2005 1,752,516 1,752,516
Amortisation
Balance at 30 September 2005 — —
Charge for year — —
At 31 December 2005 — —
Net book value at 31 December 2005 1,752,516 1,752,516
On 14 July 2004, Serabi Mining plc acquired the whole of the issued share capital of Moonlight Express Holdings Ltd
(“MEHL”) for a consideration of US$1. Goodwill arising on this purchase amounted to $1,752,516.
9. TANGIBLE ASSETS
Property, plant and equipment
Group Company
Land and Plant and Plant and
buildings equipment Total equipment Total
$$$$$
Cost
Balance at 30 September 2005 402,156 4,013,546 4,415,702 23,265 23,265
Additions 829,625 797,488 1,627,113 29,497 29,497
Disposals —————
At 30 December 2005 1,231,781 4,811,034 6,042,815 52,762 52,762
Depreciation
Balance at 30 September 2005 (64,561) (263,111) (327,672) (2,279) (2,279)
Charge for period (22,486) (317,036) (339,522) (3,681) (3,681)
At 31 December 2005 (87,047) (580,147) (667,194) (5,960) (5,960)
Net book value at 31 December 2005 1,144,734 4,230,887 5,375,621 46,802 46,802
Net book value at 30 September 2005 337,595 3,750,435 4,088,030 20,986 20,986 3
Serabi Mining plc Annual report and accounts 2005 31
Exploration and development costs
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Cost
Opening balance 14,609,905 — 789,001 —
Acquired with subsidiary — 5,331,682 — —
Net additions 1,221,970 9,327,216 284,224 789,001
Write down for impairment — (48,993) — —
Total as at 31 December 2005 15,831,875 14,609,905 1,073,225 789,001
10. INVESTMENTS HELD AS FIXED ASSETS
The Group consists of the following subsidiary undertakings:
Name Incorporated Activity % holding
Serabi Mineraçao Ltda Brazil Gold mining and exploration 99.98%*
Moonlight Express Holdings Ltd British Virgin Islands Investment 100%
Serabi Mining Services Pty Ltd Australia Technical services 100%
* indirectly held
The value of these investments is dependent on the development of mineral deposits.
11. STOCKS
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Bullion and work in progress 424,950 74,778 — —
Consumables 1,400,529 827,345 — —
1,825,479 902,123 — —
The replacement cost of stocks does not differ materially from the amount stated above.
12. DEBTORS
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Amounts falling due within one year:
Trade debtors 1,195,590 569,841 — —
Other debtors 542,884 219,700 114,861 198,555
Prepayments 1,054,457 321,710 284,881 43,184
Accrued income 25,620 51,020 25,620 51,020
2,818,551 1,162,271 425,362 292,759
Amounts falling due after more than one year:
Amounts owed by subsidiaries — — 9,594,130 4,357,374
2,818,551 1,162,271 10,019,492 4,650,133 Serabi Mining plc Annual report and accounts 2005 32
Notes to the Financial Statements
13. CREDITORS 
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Amounts falling due within one year:
Trade creditors 1,417,997 1,098,077 3,759 28,676
Other creditors 385,750 733,674 182,669 123,867
Accruals 131,432 50,000 95,300 50,000
Other taxes and social security 516,358 170,756 15,967 33,157
Amounts due to subsidiaries — — 348,863 342,259
2,451,537 2,052,507 646,558 577,959
Amounts falling due after more than one year:
Other taxes and social security 244,724 — — —
244,724 — — —
14. PROVISIONS FOR LIABILITIES AND CHARGES
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Opening balance 451,528 — — —
Acquired with subsidiary — 155,752 — —
Provided in period — 219,551 — —
Exchange (22,584) 76,225 — —
428,944 451,528 — —
The above provisions are to cover claims that might be brought against Serabi Mineraçao Ltda in relation to
transactions and contracts entered into between 2002 and the end of 2004. The Company understands that
dependent on their nature, claims must be registered within either two years or five years of the event. The
Company will release the provision as the time period for bringing such claims expires if not already utilised.
15. SHARE CAPITAL
Number £
Authorised
Ordinary shares of 10p each 200,000,000 20,000,000
Number $
Allotted, called up and fully paid
At 31 December 2005 and 30 September 2005 102,991,636 17,974,336
Movements in issued share capital
There have been no movements in share capital during the period. 3
Serabi Mining plc Annual report and accounts 2005 33
Options to subscribe for ordinary shares
The following options were issued by the Company on 25 April 2005 to Directors and certain employees of
the Group:
Exercise period Price Number
30 November 2005 to 1 April 2016 £0.15 6,382,621
1 April 2006 to 1 April 2016 £0.30 5,060,895
Total 11,443,516
Subsequent to the period end options were exercised at 15 pence per share over 171,653 shares.
In compliance with FRS 20 the Company has attributed a fair value to the issue of the options and has used the
Black-Scholes calculation method to calculate this fair value. The fair value of these options is being charged to
the profit and loss account or capitalised as an intangible asset as appropriate over the vesting period.
As at 31 December 2005
Weighted Weighted
average average
Options Options Option Options Options share remaining
Final in issue granted exercised lapsed in issue price on life of
Exercise Grant exercise at start during during during at end date of option 
Option period price date date of period period period period of period exercise (years)
30 Nov 2005 
to 1 April 2016 £0.15 25 April 2005 1 April 2016 6,382,621——— 6,382,621 N/A 10.25
1 April 2006 
to 1 April 2016 £0.30 25 April 2005 1 April 2016 5,060,895——— 5,060,895 N/A 10.25
Total 11,443,516——— 11,443,516 N/A 10.25
As at 30 September 2005
Weighted Weighted
average average
Options Options Option Options Options share remaining
Final in issue granted exercised lapsed in issue price on life of
Exercise Grant exercise at start during during during at end date of option 
Option period price date date of period period period period of period exercise (years)
30 Nov 2005 
to 1 April 2016 £0.15 25 April 2005 1 April 2016 — 6,382,621 — — 6,382,621 N/A 10.50
1 April 2006 
to 1 April 2016 £0.30 25 April 2005 1 April 2016 — 5,060,895 — — 5,060,895 N/A 10.50
Total — 11,443,516 — — 11,443,516 N/A 10.50
There are no vesting conditions attached to these options save that the holder should remain an employee of
the Group as at 1 April 2006.
The following assumptions were made in the calculation of the fair value:
15p option 30p option
Risk free rate 4.75% 4.75%
Strike price 15p 30p
Volatility (based on similar companies) 30% 30%
Share price on date of issue 30p 30p
Expected life of option (average) 3.07 years 3.86 years  Serabi Mining plc Annual report and accounts 2005 34
Notes to the Financial Statements
15. SHARE CAPITAL (CONTINUED)
Ordinary share option plan
On the basis of the above the Company has calculated the fair value of 15 pence options and 30 pence options
to be 17.152 pence and 9.174 pence respectively. During the period to 31 December 2005 a total charge of
$706,531 (prior period: $1,983,521) has been recorded in these financial statements leaving a balance of $246,075
to be charged in future periods.
Pursuant to the Company’s Initial Public Offer on 10 May 2005, the Company granted to each of KBC Peel Hunt
Ltd and Ambrian Partners Limited as joint brokers an option to subscribe for 266,667 new ordinary shares at a
price of 33 pence. Each of these options may be exercised at any time from 10 May 2005 to 9 May 2010.
At the Company AGM, on 16 November 2005, shareholders approved the adoption of a Long-term Incentive
Plan and a Cash and Deferred Share Bonus Scheme. No options have been issued under these plans as of the
date of this report.
16. SHARE PREMIUM ACCOUNT
Group and Company
31 December 30 September
2005 2005
$ $
Balance as at 1 October 2005 11,818,128 —
Issue of shares — 13,789,687
Share issue expenses — (1,971,559)
As at 31 December 2005 11,818,128 11,818,128
17. PROFIT AND LOSS ACCOUNT
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Balance at 1 October 2005 (4,208,037) — (2,315,880) —
Foreign currency translation adjustments (175,330) (314,444) — —
Loss for the period (1,467,860) (3,893,593) (782,371) (2,315,880)
Balance at 31 December 2005 (5,851,227) (4,208,037) (3,098,251) (2,315,880)
A separate profit and loss account for Serabi Mining plc has not been prepared as permitted by the Section 230
of the Companies Act of 1985. The loss of the Company for the period was $782,371 (prior period loss: $2,315,880).
18. RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS’ FUNDS
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Net shareholders’ funds at 1 October 2005 27,567,948 — 29,460,105 —
Loss for the financial period (1,467,860) (3,893,593) (782,371) (2,315,880)
Foreign currency translation adjustments (175,330) (314,444) — —
Shares issued — 17,974,336 — 17,974,336
Share option expense 706,531 1,983,521 706,531 1,983,521
Share premium on new share issues — 13,789,687 — 13,789,687
Expenses on new share issues — (1,971,559) — (1,971,559)
Net shareholders’ funds at 31 December 2005 26,631,289 27,567,948 29,384,265 29,460,105 3
Serabi Mining plc Annual report and accounts 2005 35
19. COMMITMENTS AND CONTINGENCIES
Capital commitments
The Group holds certain exploration prospects which require the Company to undertake certain minimum work
requirements each year to retain the right to have access to and undertake exploration of these prospects.
Failure to satisfactorily undertake these work requirements could result in forfeiture of the prospect(s). 
Management estimates that the cost over the next twelve months of fulfilling the minimum contracted
commitments on all the properties that the Group has an interest in, is Brazilian real 384,224.
Operating commitments
The Company has annual commitments under non-cancellable operating leases as follows:
Group Company
31 December 30 September 31 December 30 September
2005 2005 2005 2005
$ $ $ $
Operating leases which expire: 
Within one year 15,803 25,928 — 5,816
Between one year and five years 26,483 — 26,483 —
Total 42,286 25,928 26,483 5,816
Contingencies
The consolidated entity maintains a credit line in Brazil, limited to Brazilian real 200,000 that can be used for daily
working capital. This credit line is not in use at the date of these financial statements.
20. RELATED PARTY TRANSACTIONS
The Group had the following related party transactions during the financial period:
WM Clough Pty Ltd (“WMC”)
WMC is a company of which Bill Clough is a Director and the sole shareholder.
During the financial period a total of $11,596 was paid to WMC. WMC provides limited administrative support to
the Group and in particular Serabi Mining Services Pty Ltd, with whom it shares office premises. All transactions
with WMC were carried out on an arm’s length basis.
The Group had the following related party transactions during the period from incorporation to 
30 September 2005:
WM Clough Pty Ltd
On 14 July 2004 the Company entered into an agreement with WMC whereby WMC agreed to sell the only
issued share in Moonlight Express Holding Ltd (“Moonlight”) to the Company for a consideration of US$1. 
As a result Moonlight became a wholly owned subsidiary of the Company as at this date.
At the date of acquisition of Moonlight, WMC had loaned a total of £1,606,843 to Moonlight. During the period
following acquisition WMC advanced a further £86,949 to Moonlight for the purposes of providing working
capital for Serabi Mineraçao Ltda. The total loan outstanding of £1,693,792 was converted into shares in the
Company at a price of 10 pence.
The Company entered into a service agreement with WMC dated 13 April 2005 to provide administrative,
accounting and other services to the Group. The financial statements include $516,405 (included in expenses and
deferred costs) for such services which represent the cost incurred by WMC in the provision of these services
under this agreement.
The financial statements include $1,581,444 (included in expenses and deferred costs) for services that were
provided by WMC prior to the commencement of the agreement.
On 7 July 2005, the Company established its own wholly owned subsidiary, Serabi Mining Services Pty Ltd which
took over the provision of the majority of the services envisaged under the agreement. Serabi Mining plc Annual report and accounts 2005 36
Notes to the Financial Statements
20. RELATED PARTY TRANSACTIONS (CONTINUED)
Bill Clough
Prior to entering into a service contract with the Group, Bill Clough had an employment contract with WMC
under which he was entitled to receive remuneration of A$7,000 per month. Remuneration earned under this
agreement totalled US$121,243.
Bill Clough agreed to take settlement by the issue to WMC of 442,400 shares in the Company at a price of 
10 pence. A further 267,430 shares were issued to Gigantic Resources Inc. (a company of which Bill Clough is 
the beneficial owner) also at a price of 10 pence.
Graham Roberts
Prior to entering into a service contract with the Group, Graham Roberts Limited, an entity related to Graham
Roberts, entered into a contract with WMC whereby Graham Roberts Limited received settlement in cash of
$67,605 under this contract. By an agreement between Graham Roberts Limited, Graham Roberts, WMC and the
Company, it was resolved that a further sum of US$105,098 due under this contract was settled by the issue to
Graham Roberts of 412,500 shares in the Company at a price of 10 pence and 100,000 shares at 15 pence.
McRae Investments Pty Ltd (“McRae”)
Bill Clough has a minority interest in and is a director of McRae.
At the date of acquisition of Moonlight, McRae had loaned a total of £2,200,622 to Moonlight. During the period
following acquisition McRae advanced a further £84,086 to Moonlight for the purpose of providing working
capital for Serabi Mineraçao Ltda. The total loan outstanding of £2,284,708 was converted into shares in the
Company at a price of 10 pence.
McRae also provided the Group with bridging finance totalling US$1,176,380. The loan was repayable on
demand and carried interest at LIBOR +2%. The loan was repaid in full on 12 April 2005.
21. FINANCIAL INSTRUMENTS
The Group’s financial instruments at 31 December 2005 comprise cash balances and items such as trade debtors
and creditors, which arise directly from trading operations. The main purpose of these financial instruments is to
provide finance for the Group’s operations. Short-term debtors and creditors have been excluded from the
following disclosures.
The Group has not entered into any derivative transactions and it is not currently the Group’s policy to undertake
trading in financial instruments.
The main financial risks arising from the Group’s activities are commodity prices, currency risk, liquidity and
interest rate risk. The Board reviews and agrees policies for managing each of these risks and these are
summarised below:
Commodity price risk
The Group is exposed to fluctuations in commodity prices and in particular the price of Gold and Copper. It is not
currently the Group’s intention to enter into any arrangements to protect itself from changes in the prices of
these commodities. The Group does however closely monitor the prices of these commodities and will consider
the use of hedging contracts where appropriate in future.
Interest rate risk
The Group currently finances its operations through equity financing, and has a short-term trade finance facility.
There is considered not to be any material interest rate risk. The Group’s policy is to retain surplus funds as short-term
deposits, usually of one week and four week duration, at prevailing market rates.
The fair value of all financial instruments is approximately equal to book value due to their short-term nature. 3
Serabi Mining plc Annual report and accounts 2005 37
Liquidity risk
To date the Group has relied on shareholder funding to finance its operation. The Group has no borrowings.
The Consolidated entity maintains a credit line in Brazil through a bank agreement with a limit of Brazil real 200,000
that can be used for daily working capital. This credit line is not in use to the date of the financial statements. 
As the Group has limited cash resources and steady income, the liquidity risk is not significant and is managed 
by control over expenditure.
Currency risk
Although the parent company is incorporated in the United Kingdom its financial statements are denominated 
in US dollars.
Share issues have been priced solely in sterling. Expenditure is in US dollars, sterling, euros, Australian dollars and
Brazilian real. 
The Group’s main subsidiary operates in Brazil with its expenditure being principally in Brazilian real and its
financial statements are maintained in that currency. The Group’s policy for dealing with exchange differences 
is outlined in the statement of accounting policies under the heading “foreign currencies”.
The Group does not presently utilise swaps or forward contracts to manage its currency exposures, although
such facilities are considered and may be used where appropriate in the future.
The Group seeks to minimise its exposure to currency risk by closely monitoring exchange rates.
The Group considers book value to equal fair value.
The functional currency of the Group’s operations is US dollars, which is also the reporting currency. The Group’s
cash holdings at the balance sheet date were held in the following currencies:
Group
31 December 30 September
2005 2005
Currency $ $
US dollar 557,694 —
Sterling 1,494,354 7,238,688
Brazilian real 33,167 278,807
Australian dollars 67,237 39,643
Total 2,152,452 7,557,138
The cash is held at floating rates prevailing at balance sheet date.
22. SUBSEQUENT EVENTS
On 30 March 2006, the Company announced the placing of 6.5 million new ordinary shares of 10 pence each 
at a price of 40 pence per share raising approximately £2.46 million (net of expenses).
The placing is conditional upon the shares being admitted to trading on AIM. Application for the shares to be
admitted to trading was made on 30 March 2006.
The Directors do not believe there to be any reason why the new ordinary shares will not be admitted to trading. Serabi Mining plc Annual report and accounts 2005 38
Serabi Mining plc
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of the Company will be held at the offices of KBC Peel Hunt,
111 Old Broad Street, London EC2N 1PH on 1 June 2006 at 11.00am for the following purposes:
ORDINARY BUSINESS
To consider and if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions:
1. That the Directors’ report and financial statements of the Company for the period since incorporation
to 30 September 2005 be received and adopted.
2. That the Directors’ report and financial statements of the Company for the period to 31 December 2005
be received and adopted.
3. To re-elect Graham Roberts as a Director. Graham Roberts retires by rotation in accordance with the
Articles of Association.
4. To reappoint PKF (UK) LLP as auditors of the Company to hold office from the conclusion of the meeting to
the conclusion of the next Annual General Meeting at which accounts are laid before the Company and to
authorise the Directors to fix the auditors’ remuneration.
SPECIAL BUSINESS
To consider and, if thought fit, pass the following resolutions, of which resolution 5 will be proposed as an
ordinary resolution and resolution 6 will be proposed as a special resolution.
5. THAT the Directors of the Company be and they are generally and unconditionally authorised for the,
purposes of Section 80 of the Companies Act 1985 (the “Act”) to exercise all the powers of the Company to
allot grant options over, deal with or dispose of any relevant securities (as defined by Section 80(2) of the Act)
of the Company up to an aggregate nominal amount of £3,731,000 provided that this authority is for a
period expiring at the conclusion of the next Annual General Meeting of the Company, except that the
Company may before the expiry of the authority make an offer or agreement which would or might require
relevant securities to be allotted after the expiry of such period and the Directors may allot relevant securities
in pursuance of such offer or agreement as if the authority conferred by this resolution had not expired and
provided further that this authority shall be in substitution for all previous authorities conferred upon the
Directors pursuant to Section 80 of the Act.
6. THAT subject to the passing of the previous resolution the Directors of the Company be and they are
empowered pursuant to Section 95 of the Act and in accordance with the Articles of Association of the
Company to allot equity securities (as defined in Section 94 of the Act) for cash pursuant to the authority
conferred by the previous resolution as if Section 89 of the Act did not apply to any such allotment provided
that this power shall be limited to the allotment of equity securities:
(a) up to a maximum nominal amount of £1,430,000 in connection with an offer of such securities by way of
rights (including without limitation, a rights issue, open offer or similar arrangements) to holders of equity
securities in proportion (as nearly as may be practicable) to their respective holdings of such equity securities,
but subject to such exclusions or other arrangements as the Directors may deem necessary or expedient
to deal with the problems under the law of any territory or requirements of any regulatory body or stock
exchange in any territory or in connection with fractional entitlements or shares represented by
depository receipts or otherwise; and 3
Serabi Mining plc Annual report and accounts 2005 39
(b) otherwise than pursuant to sub-paragraph (a) above, to allotments of equity securities in the Company up
to an aggregate nominal amount equal to £650,000 
and shall expire on the conclusion of the next Annual General Meeting of the Company after the passing of
this resolution except that the Company may before the expiry of the authority make an offer or agreement
which would or might require equity securities to be allotted after the expiry of such period and the Directors
may allot equity securities in pursuance of such offer or agreement as if the authority conferred by this
resolution had not expired and provided further that this authority shall be in substitution for all previous
authorisations conferred upon the Directors pursuant to Section 95 of the Act.
By order of the Board
Clive Line
Company Secretary
66 Lincoln’s Inn Fields
London WC2A 3LH
30 March 2006
NOTES:
1. A member entitled to attend and vote at the meeting convened by the notice set out above is entitled to
appoint a proxy (or proxies) to attend and, on a poll, to vote in his place. A proxy need not be a member of
the Company.
2. A form of proxy is enclosed. To be effective, it must be deposited at the office of the Company’s registrars so
as to be received not later than 48 hours before the time appointed for holding the Annual General Meeting.
Completion of the proxy does not preclude a member from subsequently attending and voting at the
meeting in person if he or she so wishes.
3. The register of interests of the Directors and their families in the share capital of the Company and copies 
of contracts of services of Directors with the Company or with any of its subsidiary undertakings will be
available for inspection at the registered office of the Company during normal business hours (Saturdays 
and public holidays excepted) from the date of this notice until the conclusion of the AGM.
4. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members
entered on the Company’s register of members not later than close of business on 29 May 2006 or, if the
meeting is adjourned, shareholders entered on the Company’s register of members not later than 48 hours
before the time fixed for the adjourned meeting shall be entitled to attend and vote at the meeting. Serabi Mining plc Annual report and accounts 2005 40
Corporate Directory
COMPANY Serabi Mining plc
Cleary Court, 21–23 St Swithins Lane, London EC4N 8AD
Tel: +44 (0)20 7220 9550
Fax: +44 (0)20 7220 9555
Email: contact@serabimining.com
Web: www.serabimining.com
Serabi Mineraçao Ltda
Av Antonio de Pádua Gomes, no. 737
Jardim das Araras, Cidade Itaituba
CEP 8180-120 Pará
Brazil
Tel: +55 93 3518 1558
Fax: +55 93 3518 1550
COMPANY NUMBER 5131528
BOARD OF DIRECTORS Graham Roberts – Executive Chairman
Bill Clough – Chief Executive
Clive Line – Finance Director
Richard Robinson – Non-executive Director
Roger Davey – Non-executive Director
COMPANY SECRETARY Clive Line
NOMINATED ADVISER KBC Peel Hunt Ltd
AND JOINT BROKER 111 Old Broad Street, London EC2N 1PH
JOINT BROKER Ambrian Partners Limited
8 Angel Court, London EC2R 7HP
AUDITORS PKF (UK) LLP
20 Farringdon Road, London EC1M 3AP
SOLICITORS Farrer & Co
66 Lincoln’s Inn Fields, London WC2A 3LH 
REGISTRARS Computershare Investor Services plc
PO Box 82, The Pavilions, Bridgewater Road
Bristol BS99 7NH Serabi Mining plc is a gold mining and exploration
company currently focused on the Tapajos geological
province of northern Brazil. The Tapajos region is a
major, under-explored mineral province from which
artisanal miners (“Garimpeiros”) are thought to have
extracted some 30 million ounces of gold, mostly from
alluvial and weathered bedrock deposits since the 
early 1970’s. The Company has established the first
significant hard-rock mining operation in the region at
the 100% owned Palito Gold Mine. In addition, Serabi
has amassed a sizeable land position in the Tapajos
where advanced exploration and drilling is currently
underway. Serabi’s goal is to become a low-cost, long-life,
multi-mine producer, using the experience at Palito as
the guide for further mining developments. 
T HE D ESIGN P ORTFOLIO
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    Serabi Mining plc 
Annual report and accounts 2005
Serabi Mining plc Annual report and accounts 2005
Serabi Mining plc
Cleary Court, 21-23 St Swithins Lane
London EC4N 8AD
Tel: +44 (0)20 7220 9550
Fax: +44 (0)20 7220 9555
Email: contact@serabimining.com
Web: www.serabimining.com