OREANDA-NEWS. The Company announces that on 16 May 2016 the board of directors of Serabi agreed to award in aggregate 15,650,000 new options over ordinary shares to employees, directors and officers of the Company. The option grant is part of the Company's annual compensation review and the issuance is made under the Serabi 2011 Share Option Plan (the "2011 Plan") which the Company adopted on 28 January 2011 and was re-affirmed by shareholders at the Company's last AGM held on 24 June 2014. The 2011 Plan allows the Company to issue a number of options up to an aggregate of 10% of its issued and outstanding common shares.

The options granted will vest in three equal tranches, with one-third vesting and being exercisable immediately on award, one-third vesting on the first anniversary of the award and the remainder vesting on the second anniversary of the award and the options will lapse three years after the date of the award.

The options have an exercise price of 5.0 pence per share. The pricing of the options represents a 7.31% premium to the London 10 day weighted average price and a 10.70% premium to the 20 day weighted average price, both as of 16 May 2016.  The London closing price as at 16 May 2016 was 4.875 pence.  The award represents 2.38% of the current issued share capital of 656,389,204 ordinary shares.