INTRODUCTION TO GRIFFIN MINING LIMITED

Griffin Mining Limited ("Griffin" or "the Company") has constructed the first new foreign owned and operated mine and processing plant in China at Caijiaying, which currently produces around 50,000 tonnes of zinc concentrate per annum together with gold, silver and lead. The mine and processing facilities are being further devloped 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, the Hebei Hua-Ao Mining Development Company ("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.

Griffin is a Bermuda Company whose shares are traded on the Alternative Investment Market of the London Stock Exchange. Its principal office is in London and the majority of its shareholders are British, with over 3,000 shareholders and over 50% of its shares held by mainly London based financial institutions.

The Caijiaying process plant facilities, September 2005

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 and in 1997 Griffin acquired its interest in Hua-Ao.

PARTNERSHIP WITH THE CHINESE

Griffin's Chinese partner in Hua-Ao is the Caijiaying Lead Zinc Preparatory Committee, a partnership comprising of the Zhangjiakou City Government, the Hebei Bureau of Geology and Mineral Resources Exploration and the Third Geological Brigade. Griffin has a 60% equity interest and 100% financial interest until the fourth year of commercial production in Hua-Ao. Griffin maintains excellent 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.

CAIJIAYING DEVELOPMENT AND INVESTMENT

Griffin invested $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 25,000 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 utilising cash flows generated from Caijiaying to icrease throughput to 750,000 tonnes of ore per annum.

The decline is fully developed for initial mining

RESOURCE AND RESERVES

RESOURCE ESTIMATE AND RECONCILIATION - ZONE III

Tabled below is the updated JORC compliant Mineral Resource Estimate for Zone III at Caijiaying.

Micromine 2002 Mineral Resource Estimate (Non Grade Control Drilling)

FinOre 2006 Mineral Resource Estimate (Grade Control Drilling)

The information in this report that relates to the Mineral Resource Estimate for the 31 December 2007 grade control drilled areas is based on information compiled by Mr C Fawcett BSc (Hons),G Dip Eng, MAusIMM, of FinOre Pty Ltd. The mining depletion was carried out by Mr Timothy Blyth, Ass Dip (Geology), MAusIMM of Hebei Hua Ao Mining Industry Company Ltd. The information relating to the 2002 non grade control drilled area was compiled by Mr D Pertel of Micromine Consulting Ltd. Mr Fawcett and Mr Blyth are Members of The Australasian Institute of Mining and Metallurgy and Mr Pertel is a Member of the Australian Institute of Geoscientists. Mr Fawcett, Mr Pertel and Mr Blyth have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 edition).

POTENTIAL

The mine at Caijiaying covers a small part (1.5sq km) of the total tenement area under licence to Hua-Ao of 67 sq km. This greater area holds significant potential not only to extend the mineral resources for initial mining operations but for additional mineral resources at a number of exploration targets already identified in which Griffin has a 90% equity interest.

ENVIRONMENT

The mine and processing facilities have been designed to high environmental standards and meet local Chinese and international standards. The grant of the mining licence and subsequent upgrade entailed the preparation of a full environmental impact study in compliance with Chinese legislation. The local population has been kept fully informed of the mine's development.

HEALTH AND SAFETY

Griffin has introduced high health and safety standards to its mining and processing operations in China. As part of this process medical facilities are, where possible, being made available to the local population.

The Caijiaying management and staff at commissioning in June, 2005

LOCAL EMPLOYMENT

It is Griffin's policy to employ and train local Chinese personnel and engage local Chinese contractors wherever possible in what has been an economically deprived area. Griffin has some 400 personnel working at the Caijiaying site of which but a few are from the UK and Australia. This policy is bringing benefits to the area, helped further by investment in local infrastructure by the Chinese authorities.

Reverse-circulation drilling at Caijiaying with an Australian rig in July, 2005

THE FUTURE

With the development of the first new western controlled mine in China by Griffin, the Company expects to be able to use this as a catalyst to develop other mining opportunities in China, allowing the Company to develop into a major mining house.