Unaudited interim results for the three-and six-month periods ended 30 June 2026

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Unaudited interim results for the three-and six-month periods ended 30 June 2026

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Serabi (AIM:SRB, TSX:SBI, OTCQX:SRBIF), the Brazilian focused gold mining and development company, is pleased to release its unaudited interim results for the three- and six-month periods ended 30 June 2026 (all currency amounts are expressed in US Dollars unless otherwise stated).

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HIGHLIGHTS

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The full interim statements together with commentary can be accessed on the Company’s website using the following LINK.

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Mike Hodgson, CEO of Serabi, commented

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Gold sales for the first half of 2026 totalled 21,348 ounces, representing a 6% increase on the same period in 2025. Whilst this operational performance was in-line with budget, when combined with an average realised gold price of $4,687 per ounce, resulted in EBITDA of $44.4 million for the period, a 69% increase over the same period a year ago.

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Serabi ended the period with a cash balance of $65.7 million, an increase from $49.2 million at the end of Q4-2025. For the 6 month period, cash flow from operations of $40.1 million was offset by cash flow from investing activities of $(18.8) million as well as cash flow from financing activities of $(5.5) million. Factors impacting the cash generated for Q2-2026 were the lower realised gold prices in Q2 of $4,490 per ounce (vs Q1-2026 of $4,926 ounce), development of the Galena and Serra South zones at Coringa, and approximately $4 million of one-time G&A charges. With brownfield exploration activity continuing in 2026 with another 30,000m drill programme underway across both Palito Complex and Coringa, the Company is positioning itself for future resource growth and long-term value creation. The balance sheet remains debt free as the debt with Banco Santander was repaid in Q1-2026.

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Cash Cost of $2,010 and AISC of $2,682 are higher than Q1-2026, largely driven by the continued ramp up at Coringa and the one-time G&A charges. With the Meio zone now at commercial production, costs associated with mining the Meio zone are included in cash cost and AISC.

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As the Company reported in the Q2-2026 operational update, production guidance is set at 53,000 plus ounces of gold. This target has been based on one of either of two assumptions. Firstly, the GUIA licence issued for Coringa from the ANM (Ministry of Mines) under which the Company is currently permitted to transport annually 100,000 tonnes of ore to Palito was to be increased to 200,000 tonnes. Alternatively, the guidance target also assumed receipt of the full mining concession by Q4-2026, thereby lifting all tonnage constraints at Coringa. In both scenarios, the Company would be able to transport much greater volumes of ore in Q4-2026 and utilise the soon to be commissioned fourth ball mill at Palito.  

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With respect to the GUIA licence, the Company is continuing production at Coringa under the current 3-year GUIA licence of 100,000 tonnes annually which as previously reported, expires on 29 January 2027, or earlier if the annual limit of tonnage is exceeded. The Board of Serabi is currently confident that the GUIA term will either be extended and / or the annual tonnage limit extended shortly by the ANM to avoid any temporary production interruption at Coringa in Q4-2026. The Company is making highly encouraging progress with the ANM to achieve this, although there is obviously no certainty yet on timing and a further update will be provided in mid-October in our Q3-2026 operational release.

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With respect to the Full Mining Concession, the two fundamental approvals required are in their final stages. The approval of the Indigenous Component Study (ECI) is now very close, and it only remains for the Federal Agency for Indigenous Lands (FUNAI) Board of Directors to approve the study. The FUNAI Legal and Technical departments are recommending approval. We still anticipate this happening in Q4-2026. In addition, the approval for the change of land use from Agriculture to Mineral Exploitation by the Land Registry (INCRA) is also now in its final stages, which has been technically and legally approved. The final steps are for the Directors of INCRA to approve at the Board level of INCRA. The Board of Serabi also anticipates this happening in Q4-2026. Once these two approvals from FUNAI and INCRA are received, SEMAS can issue Serabi with an Operating Licence.”

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Overview of the financial results

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In the first half of 2026, the Group has reported revenue and operating costs related to the sale of 21,348 ounces in the period. This compares to sales of 20,515 ounces in the first half of 2025. Reported revenues and costs reflect the ounces sold in each period and as a result total costs for the six-month period are higher than for the corresponding period of 2025.

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On 16 January 2026, the Group fully repaid the Banco Santander short-term working capital facility which the Group had previously entered into on 22 January 2025. As a result, at the time of writing, the Group is debt free.

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Key Financial Information

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

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The person who arranged for the release of this announcement on behalf of the Company was Andrew Khov, Vice President, Head of Investor Relations & Business Development.

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Enquiries

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Michael Hodgson        t +44 (0)20 7246 6830
Chief Executive        m +44 (0)7799 473621

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Nick Box        
Interim Chief Financial Officer        m +44 (0)7775 6754671

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Andrew Khov         m +1 647 885 4874
Vice President, Head of Investor Relations &
Business Development
        e [email protected]

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BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish        t +44 (0)20 7628 3396

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PEEL HUNT LLP
Joint UK Broker
Ross Allister / Georgia Langoulant        t +44 (0)20 7418 9000

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TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon / Richard Greenfield t +44 (0)20 3882 2868

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CAMARCO
Financial PR – Europe
Georgia Edmonds / Fergus Young        t +44 (0)20 3757 4980

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Copies of this announcement are available from the Company’s website at www.serabigold.com.

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Forward-looking statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

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Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 35 years’ experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

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Notice
Beaumont Cornish Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in relation to the matters referred herein. Beaumont Cornish Limited is acting exclusively for the Company and for no one else in relation to the matters described in this announcement and is not advising any other person and accordingly will not be responsible to anyone other than the Company for providing the protections afforded to clients of Beaumont Cornish Limited, or for providing advice in relation to the contents of this announcement or any matter referred to in it.

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Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.

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See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

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The following information comprising the Condensed Consolidated Income Statements, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity, Condensed Consolidated Cash Flow Statements, and selected notes thereto, is extracted from the interim unaudited condensed consolidated financial statements for the three and six months ended 30 June 2026.

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Condensed Consolidated Statements of Comprehensive Income

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(1) The Group has no non-controlling interest and all profits are attributable to the equity holders of the Parent Company

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Condensed Consolidated Balance Sheets

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Condensed Consolidated Statements of Changes in Shareholders’ Equity

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(1) Other reserves comprise a merger reserve of US$361k and a taxation reserve of US$25,252k (31 December 2025: merger reserve of US$361k and a taxation reserve of US$23,382k).

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Condensed Consolidated Cash Flow Statements

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Notes

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1. Basis of preparation
These interim condensed consolidated financial statements are for the three and six-month periods ended 30 June 2026. Comparative information has been provided for the unaudited three and six-month periods ended 30 June 2025 and, where applicable, the audited twelve-month period from 1 January 2025 to 31 December 2025. These condensed consolidated financial statements do not include all the disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2025 annual report.

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The condensed consolidated financial statements for the periods have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and the accounting policies are consistent with those of the annual financial statements for the year ended 31 December 2025 and those envisaged for the financial statements for the year ending 31 December 2026.

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The interim financial information has not been audited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards (“IFRS”) this announcement itself does not contain sufficient financial information to comply with IFRS. The Group statutory accounts for the year ended 31 December 2025 prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 have been filed with the Registrar of Companies. The auditor’s report on these accounts was unqualified. The auditor’s report did not contain a statement under Section 498 (2) or 498 (3) of the Companies Act 2006.

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The interim condensed consolidated financial statements are presented in thousands of US Dollars, unless otherwise stated.

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Accounting standards, amendments and interpretations effective in 2025
The Group has not adopted any standards or amendments in advance of their effective date. The following new amendment has been issued by the IASB and is effective for annual periods beginning on or after 1 January 2026:

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No other standards or amendments are expected to be effective in 2026.

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Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company’s current or future reporting periods.

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These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

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(i)      Going concern

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At 30 June 2026 the Group held cash of US$65,689k which represents an increase of US$16,466k compared to 31 December 2025.

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On 16 January 2026, the Group fully repaid the Banco Santander short-term working capital loan plus interest which the Group had previously entered on 22 January 2025. As a result, at the time of writing, the Group is debt free.

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Management prepares, for Board review, regular updates of its operational plans and cash flow forecasts based on their best judgement of the expected operational performance of the Group and using economic assumptions that the Directors consider are reasonable in the current global economic climate. The current plans assume that during 2026 the Group will continue gold production from its Palito Complex operation and current production from the Coringa mine without interruption, assuming that the GUIA licence issued for Coringa from the ANM (Ministry of Mines) under which the Company is currently permitted to transport annually 100,000 tonnes of ore to Palito is increased to 200,000 tonnes or receipt of the full mining concession by Q4-2026, thereby lifting all tonnage constraints at Coringa. Even if neither of these scenarios eventuate, and production is suspended at Coringa, cash flow forecasts show adequate resources to continue in operational existence for the foreseeable future.

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The Directors will limit the Group’s discretionary expenditures, when necessary, to manage the Group’s liquidity.

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The Directors acknowledge that the Group remains subject to operational and economic risks and any unplanned interruption or reduction in gold production or unforeseen changes in economic assumptions may adversely affect the level of free cash flow that the Group can generate on a monthly basis. The Directors have a reasonable expectation that, after taking into account reasonably possible changes in trading performance, and the current macroeconomic situation, the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

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2.         Finance expense and income

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3.         Taxation

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The Group has recognised a deferred tax asset to the extent that it has reasonable certainty as to the level and timing of future taxable profits against which the asset may be recovered. During the six-month period to 30 June 2026, Accordingly, the Group recognised a deferred tax charge of US$492k for the six months ended 30 June 2026 (six months ended 30 June 2025 – income of US$1,055k).

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The Group has incurred a tax charge in Brazil for the first half of the year of US$10,003k (six months to 30 June 2025 tax charge – US$5,070k).

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4.        Earnings per Share

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(1) At 30 June 2026 there were 2,200,163 conditional share awards in issue (30 June 2025 – 2,728,049). These are subject to performance conditions which may or not be fulfilled in full or in part. These CSAs have not been included in the calculation of the diluted earnings per share.

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6.        Post balance sheet events

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There has been no item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to affect significantly the continuing operation of the entity, the results of these operations, or the state of affairs of the entity in future financial periods.

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