Exploration Update for 2026 Brownfield Exploration Programme at Palito and Coringa Delivering High Grade Results

Serabi Gold reported high-grade 2026 brownfield drill results at its Brazilian Palito and Coringa assets, including 1.38m at 11.85 g/t Au at Serra South, 1.70m at 16.13 g/t Au at Meio, and 1.12m at 6.12 g/t Au at Massa. The company has completed 20,831m of its planned 32,000m programme and is targeting a Group mineral inventory above 1.5Moz, following 2025 M&I resources of 730,800 oz and inferred resources of 653,300 oz. Results support potential resource growth and mine-life extension, with updated resource estimates expected in Q1 2027; some reported assays remain based on internal laboratory results pending independent verification.

Analysis

SRB’s investable read-through is not the headline grade but the probability that incremental ounces can be converted through existing and developing underground infrastructure rather than requiring a new standalone build. Near-mine additions at Coringa could raise the utilization and mine-life value of sunk ramp, mill and permitting investment, creating disproportionate NAV sensitivity if they support a sustained production ramp rather than merely replace depletion. The highest-value catalyst is therefore an upgraded resource that changes the market’s view of reserve conversion and throughput, not a nominal increase in inferred inventory.

The quality caveat matters: several highlighted intervals remain internally assayed, while the disclosed historical bias is upward. Narrow-vein geometry also makes true width, continuity, dilution and mining recovery more consequential than headline grams per tonne; a resource upgrade with limited mineable-width conversion would not justify a rerating. In the next 1-3 months, assay reconciliation and additional drilling are the relevant validation points; the Q1-2027 resource statement is the binary valuation catalyst. Six-to-18-month upside requires capital discipline and evidence that Coringa can add production without lifting group AISC or creating working-capital pressure.

Consensus may overvalue the stated inventory target and undervalue the operational option value of successful satellite zones: shallow or proximal feed can improve schedule flexibility and reduce development intensity, but only if metallurgical behavior and access are comparable to current ore. Conversely, the revised structural model at Palito is potentially more material than the current results because it could improve targeting efficiency and reduce exploration cost per discovered ounce; until externally assayed follow-up establishes continuity, it remains an option rather than a base-case asset.

PEEL has no fundamental exposure implied by this development beyond its role as a broker; there is no cross-ticker trade signal. SRB liquidity across AIM/TSX/OTCQX should be assessed before sizing, as exploration-news price moves in small-cap miners can be transient and spreads can dominate expected alpha.

Key Decisions for Investors

• Maintain or initiate a small SRB long only after confirming where the most recent externally assayed results trade versus internal assays; target a 3-6 month holding into completion of drilling. Underwrite on mineable ounces and production conversion, not exploration inventory; use a 50-75bp portfolio-risk budget given single-asset-country and liquidity concentration.
• Add to SRB only if H2 drilling demonstrates repeatable continuity at Coringa and management provides a credible 2027-2028 production/AISC bridge. A resource increase without reserve conversion, mine plan, or capex disclosure is a watch item rather than an add signal.
• Use a gold-beta hedge such as short GDX or GDXJ against an SRB long if the objective is to isolate execution and resource-conversion alpha through Q1-2027; size the hedge to SRB’s estimated gold beta after reviewing trading history. This limits downside from a broad gold-price correction while preserving company-specific upside.
• Thesis invalidation triggers: material divergence of external assays from internal results, lower grades/widths in follow-up drilling, a resource update dominated by inferred ounces, Coringa ramp delays or upward AISC/capex guidance, or an equity raise at a discount before operating cash flow funds development.