INTRODUCTION TO GRIFFIN MINING LIMITED

Griffin Mining Limited was formed in May 1988 in Bermuda as a mining finance company, formerly known as European Mining Finance Ltd. In June 1997, the Company’s shares were admitted to trading on the Alternative Investment Market (“AIM”) of the London Stock Exchange. In October 1997, the Company changed its principal activities to mining and its name to Griffin Mining Limited. In November 1997 Griffin acquired a 50% equity interest in China Zinc Pty Ltd which held a 60% interest in the Hebei Hua Ao Mining Industry Company Limited Chinese joint venture (“Hebei Hua Ao”) which held the mineral exploration rights at Caijiaying in the Hebei Province in Northern China. In March 1998, Griffin acquired the remaining 50% equity stake in China Zinc Pty Ltd, giving Griffin a controlling 60% interest in Hebei Hua Ao.

In June 2005 Griffin completed the construction of the first new foreign owned and operated mine and processing plant in China at Caijiaying, which currently produces around 60,000 tonnes of zinc concentrate per annum together with gold, silver and lead. The mine and processing facilities are being further developed to significantly increase current production rates.

Griffin has been the leader in foreign investment in mining in China having been engaged in developing the Caijiaying zinc gold project since 1997. Caijiaying is located in the Hebei Province, some 200 km north west of Beijing. Griffin's local subsidiary company, Hebei Hua Ao, was the first foreign controlled entity to receive an exploration licence in the Peoples Republic of China and the first to be awarded a new mining licence over a metal deposit in China, as well as being the first to construct a new mine.

The Caijiaying process plant facilities, Spring 2010

THE CAIJIAYING PROJECT BACKGROUND

Mineralisation was first identified at Caijiaying by the Chinese in the late 1960's. In 1994, following the introduction of legislation in China allowing the formation of joint venture entities with foreign parties, Hua-Ao was formed in 1992 and in 1997 Griffin acquired its interest in Hua-Ao.

Drilling at Caijiaying 1998

PARTNERSHIP WITH THE CHINESE

Griffin's Chinese partner in Hua-Ao is the Zhangjiakou Caijiaying Lead Zinc Mining Company, a partnership comprising of the Zhangjiakou City Government, the Hebei Bureau of Geology and Mineral Resources Exploration and the Third Geological Brigade. Griffin maintains good relations with the Chinese authorities at township, county, provincial, and state levels, which has perhaps enabled Griffin to advance its Caijiaying project further than any other foreign controlled mining project in China.

Roger Goodwin (Finance Director), Mladen Ninkov (Chairman), and Jin Shengchang (Hebei Hua Ao Director)

CAIJIAYING DEVELOPMENT AND INVESTMENT

Griffin invested an initial $20m into the development of Caijiaying and the construction of an underground mine and processing facilities to process some 300,000 tonnes of ore per annum ("tpa") to produce some 20,000 tonnes of zinc metal, gold, silver and other associated metals for a minimum of 14 years with the expectation of a considerably longer period of production. Construction of the mine and processing facilities at Caijiaying was completed on time and within budget.

The mine and processing facilities at Caijiaying are being further developed to increase throughput to 750,000 tonnes of ore per annum. Mining and processing rates of the equivalent of 600,000 tonnes of ore per annum have already been achieved. Further information on Caijiaying may be found in the section on Caijiaying.

SPITFIRE OIL

On 27 November 2008, Griffin purchased 16,666,667 ordinary shares in Spitfire Oil Ltd (“Spitfire”), representing a 39.2% interest in the issued share capital of Spitfire, at £0.15 per share for a total cash consideration of £2,500,000 ($4,542,000) from Citadel Equity Fund Ltd (“Citadel”). This purchase enabled Griffin to acquire a strategic stake in a project that meets Griffin’s investment criteria whilst spreading both political and commodity risk. The opportunity to acquire this strategic stake at such a favourable price, being at a 75% discount to the initial public offering price, was considered and approved by Griffin’s independent directors. All of Griffin’s directors have experience in the oil and gas sector. Mr Mladen Ninkov and Mr Roger Goodwin, being directors of both Griffin and Spitfire, provide Griffin with significant influence over Spitfire, requiring Griffin to treat Spitfire as an associated company and thereby recognise its share of Spitfire’s financial results.

Further information on Spitfire Oil Limited may be found in the section on Spitfire Oil and at www.spitfireoil.com.

THE FUTURE

Having significant financial resources at hand and substantial mineral resources, Griffin is well placed to benefit from improved economic conditions.

The new JORC resource confirms the availability of ore for increased future production at Caijiaying. By the autumn of 2010, the upgrade of the processing facilities at Caijiaying, to a capacity of 750,000 tonnes of ore per annum throughput, should be completed. With significant potential for further resources within the current area being mined at Zone III to be defined, the potential for other known areas of mineralisation to be mined and the potential for new mineralisation to be discovered, the likelihood exists for production to be further enhanced at Caijiaying in the future.

Having achieved notable success with Caijiaying, the challenge remains to acquire, develop or discover a new mining project to build on the efficient in-house skills that have been developed within the Company. Griffin remains one of the few mining success stories in China and, having maintained a presence in China for over 12 years, Griffin has gained an excellent reputation in that country. This provides Griffin with a unique entry into China, its culture and power structures. To date, it has proved difficult to find a venture of the quality of Caijiaying in China. This has forced the Company to widen its geographic and commodity focus. Nevertheless, the Company remains dedicated to only acquiring further assets where they provide real value over a long period of time with substantial added value.