NEWS

New Drilling Results from Caijiaying

Highlights:

  • Currently Mined Zone III Open in All Directions
  • New Zone II Resource Expected

Griffin Mining Limited (“Griffin”) is pleased to announce some of the latest drilling results from its 2010 drilling programme at Zone III and in the area linking Zone II & III approximately 1.5 km south of Zone III at the Caijiaying Zinc-Gold Mine. This drilling has provided additional data for a revised resource estimate which is expected to significantly increase the mineral resources at Caijiaying. In addition, the new resource at Zone II, which is an extension of that existing deposit being mined at Zone III, may allow for a significant expansion in mining activities at Caijiaying in the future.

Significant results from Zone III include:

  • 24.52 metres @ 13.3% Zinc, 0.9% Lead 76.26% Silver & 2.36 g/t Gold
  • 35.55 metres @ 10.3% Zinc, 0.3% Lead 62.57% Silver & 0.3g/t Gold
  • 26.0 metres @ 8.5% Zinc, 0.6% Lead 71.86% Silver & 0.204 g/t Gold
  • 29.24 metres @ 7.7% Zinc, 0.6% Lead 57.45% Silver & 0.13 g/t Gold
  • 59.8 metres @ 6.2% Zinc, 0.2% Lead 22.48% Silver & 1.41 g/t Gold
  • 61.4 metres @ 5.1% Zinc, 0.1% Lead 22.63% Silver & 1.51 g/t Gold
  • 29.6 metres @ 7.0% Zinc, 0.8% Lead 32.15% Silver & 1.97 g/t Gold
  • 20.0 metres @ 7.1% Zinc, 0.1% Lead 17.68% Silver & 1.48 g/t Gold
  • 27.9 metres @ 5.9% Zinc, 0.2% Lead 21.02% Silver & 0.28 g/t Gold
  • 27.5 metres @ 5.3% Zinc, 0.5% Lead 29.55% Silver & 0.79 g/t Gold
  • 28.7 metres @ 5.0% Zinc, 0.1% Lead 55.52% Silver & 2.32 g/t Gold
  • 17.08 metres @ 6.0% Zinc, 0.1% Lead 35.44% Silver & 1.18 g/t Gold

Significant results from Zone II & III linkeage area include:

  • 34.0 metres @ 4.0% Zinc, 0.2% Lead 20.17% Silver & 0.09 g/t Gold
  • 22.0 metres @ 4.0% Zinc, 0.3% Lead 10.61% Silver & 0.11 g/t Gold
  • 8.0 metres @ 7.1% Zinc, 1.3% Lead 30.38% Silver & 0.11 g/t Gold

Drilling activity was increased in 2010 with up to six rigs operating underground at Zone III and three rigs operating on the surface between Zone II and Zone III.

Ongoing step-out and infill underground drilling has continued to extend the Zone III mineralisation in all directions and remains open to the north, south and at depth. Importantly, some of the thickest and highest grade intercepts to date have been returned from the deepest drilling which indicates that Zone III maintains continuity with depth, potentially strengthening in areas such as Qing Long Lode.

Drilling from surface in the area between Zones II and III intersected a number of new zones of mineralisation and extended other previously identified zones. All of the surface drilling data between Zone II and Zone III will be incorporated into a new Zone II mineral resource estimate. Mineralisation at Zone II remains open to the north and at depth. The positive results from the 2010 surface drilling programme have increased confidence that Zone II and Zone III are one continuous area of mineralisation.

Highlights of the drilling programmes are as follows.

hole ID From To Interval Zn Pb Ag Au Target
  meteres meteres meteres % % g/t g/t  
UGCJY-1865 54.2 114 59.8 6.2 0.2 22.48 1.41 Qing Long Deeps
UGCJY-1869 56.7 118.1 61.4 5.1 0.1 22.63 1.51 Qing Long Deeps
Including 93.8 98 4.2 14.9 0.2 30.95 0.17 Qing Long Deeps
Including 113 118.1 5.1 21.5 0.3 61.49 1.46 Qing Long Deeps
UGCJY-1641 122.3 139.38 17.08 6.0 0.1 35.44 1.18 Qing Long South
UGCJY-1589 96.81 126.05 29.24 7.7 0.6 57.45 0.13 Qing Long South
UGCJY-1589 82.56 91.67 9.11 7.8 0.3 19.65 0.11 Qing Long South
UGCJY-1699 118.35 146.25 27.9 5.9 0.2 21.02 0.28 Qing Long South
UGCJY-1730 100.09 128.79 28.7 5.0 0.1 55.52 2.32 Inf Resource Deeps
UGCJY-1902 93.4 99 5.6 10.4 0.6 265.43 0.23 Inf Resource Deeps
UGCJY-1807 17 37 20 7.1 0.1 17.68 1.48 Xiao Long East
UGCJY-1888 0 35.55 35.55 10.3 0.3 62.57 0.30 Xiao Long East
RC-166 46 80 34 4.0 0.2 20.17 0.09 Zone II/ Zone III corridor
Including 57 59 2 10.9 0.5 93.00 0.10 Zone II/ Zone III corridor
Including 65 74 9 6.6 0.1 15.10 0.21 Zone II/ Zone III corridor
RC-188 0 16 16 1.7 2.7 110.83 0.23 Zone II/ Zone III corridor
RC-188 32 123 91 2.5 0.6 15.51 0.17 Zone II/ Zone III corridor
RC-188 45 53 8 7.1 1.3 30.38 0.11 Zone II/ Zone III corridor
RC-189 51 73 22 4.0 0.3 10.61 0.11 Zone II/ Zone III corridor
UGCJY-1717 0 29.6 29.6 7 0.8 32.15 1.97 Qing Long
UGCJY-1690 0 27.5 27.5 5.3 0.5 29.55 0.79 Qing Long
UGCJY-1687 0 24.52 24.52 13.3 0.9 76.26 2.36 Qing Long
UGCJY-1599 33 59 26 8.5 0.6 71.86 0.204 Ju Long

With the recommencement of mining, underground drilling will also recommence, targeting Qing Long South, Qing Long Deeps, Ju Long North and Xiao Long East lodes. Underground drilling will undertake infill and resource definition drilling within Zone III. Surface drilling is scheduled to restart in April 2011 and will continue to target the Zone II/Zone III corridor.

The information in this report that relates to the 2010 exploration results and mineral resources is based on information compiled by Mr Luke Marshall BSc Geology, Member AIG. Mr. Marshall is a full time employee of Hebei Hua Ao Mining Industry Company Limited, a subsidiary of Griffin Mining Limited. Mr. Marshall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

Mladen Ninkov, Griffin’s Chairman, commented on these developments as follows: “These new drilling results only confirms what the Company has been stating since drilling began at Caijiaying, that this is a large, mineralized system which the Company has only just begun to understand and which will provide an extraordinarily long life mining operation, which at these commodity prices, will provide returns to shareholders which they so richly deserve. I look forward to announcing further good news in the near future.”

Recommencement Of Operations At Caijiaying

Further to the recent announcements made by Griffin Mining Limited (“Griffin”), Griffin is pleased to announce that not only have mining and milling activities recommenced at the Caijiaying Mine, but that approval has now been granted by the Chinese authorities, in conjunction with the previously granted mining licence, to process up to 750,000 tonnes of ore per annum through the fully commissioned upgraded mill. Formal approval of the upgraded processing design is expected in the new year upon the completion and submission of the design of the already constructed new processing facilities by a recognised Chinese design institute. With the upgrade of the processing facilities completed, Griffin anticipates that ore extraction and milling rates will reach the equivalent of 750,000 tonnes of ore per annum by the Spring of 2011.

Recommencement Of Operations At Caijiaying

Further to the announcements made by Griffin Mining Limited (“Griffin”) since 9th of August 2010, Griffin is pleased to announce that having satisfactorily dealt with all official recommendations for safety improvements, Griffin’s local Chinese company has received formal approval from the Zhangjiakou City Government and the Zhangjiakou Safety Bureau to re commence mining activities at the Caijiaying mine. With electrical power having now been restored, mining and processing operations have recommenced at Caijiaying.

Transaction in Own Shares and Total Voting Rights

Griffin Mining Ltd (“the Company”) announces that on 6th December 2010 it purchased 30,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 39.5p per share. The Ordinary Shares have been purchased for cancellation (the “Purchase and Cancellation”).

The purchase represented 0.01% of the Company’s issued share capital before the Purchase and Cancellation and was pursuant to the byelaws of the Company and a resolution passed by the directors.

Following the cancellation of these Ordinary Shares there will be 180,883,396 Ordinary Shares in the Company in issue. There are no shares held in treasury.

Transaction in Own Shares and Total Voting Rights

Griffin Mining Ltd (“the Company”) announces that on 2nd December 2010 it purchased 25,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 37p per share. The Ordinary Shares have been purchased for cancellation (the “Purchase and Cancellation”).

The purchase represented 0.01% of the Company’s issued share capital before the Purchase and Cancellation and was pursuant to the byelaws of the Company and a resolution passed by the directors.

Following the cancellation of these Ordinary Shares there will be 180,913,396 Ordinary Shares in the Company in issue. There are no shares held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA’s Disclosure and Transparency Rules.

Transaction in Own Shares and Total Voting Rights

Griffin announces that on 30th November 2010 it purchased 100,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 36.5p per share. The Ordinary Shares have been purchased for cancellation (the “Purchase and Cancellation”).

The purchase represented 0.055% of the Company’s issued share capital before the Purchase and Cancellation and was pursuant to the byelaws of the Company and a resolution passed by the directors.

In accordance with Disclosure and Transparency Rule 5.6.1, following the Purchase and Cancellation, the Company’s issued share capital comprises 180,938,396 each with voting rights. There are no shares held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Griffin under the FSA’s Disclosure and Transparency Rules.

Change of Advise

Griffin Mining Ltd is pleased to announce the appointment of Panmure Gordon (UK) limited as nominated adviser and broker with immediate effect.

Transaction in Own Shares and Total Voting Rights

Griffin announces that on 23 November 2010 it purchased 150,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 33.4p per share. The Ordinary Shares have been purchased for cancellation (the “Purchase and Cancellation”).

The purchase represented 0.08% of the Company’s issued share capital before the Purchase and Cancellation and was pursuant to the byelaws of the Company and a resolution passed by the directors.

In accordance with Disclosure and Transparency Rule 5.6.1, following the Purchase and Cancellation, the Company’s issued share capital comprises 181,038,396 each with voting rights. There are no shares held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Griffin under the FSA’s Disclosure and Transparency Rules.

China Mining Award

Griffin Mining Limited (“Griffin”) is extremely pleased to announce that its Chinese subsidiary, Hebei Hua Ao Mining Industry Company, has been awarded the “Mining Environment Protection Outstanding Achievement Award” at the China Mining Conference held in Tianjin China on 16th and 17th November. This prestigious award was given in recognition of the high environmental standards imposed and maintained at Griffin’s Caijiaying zinc gold mine.

Share Buy Back

Griffin announces that on 4 November 2010 it purchased 200,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 35p per share. The Ordinary Shares have been purchased for cancellation (the “Purchase and Cancellation”).

The purchase represented 0.11% of the Company’s issued share capital before the Purchase and Cancellation and was pursuant to the byelaws of the Company and a resolution passed by the directors.

In accordance with Disclosure and Transparency Rule 5.6.1, following the Purchase and Cancellation, the Company’s issued share capital comprises 181,238,396 each with voting rights. There are no shares held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Griffin under the FSA’s Disclosure and Transparency Rules.