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 developed to significantly increase current production rates.

Caijiaying Mine Location

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. It retains a London office 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, Winter 2009

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.

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 has a 60% equity interest and 100% financial interest until the fourth year of commercial production in Hua-Ao. 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.

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 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 been achieved.

Underground at Caijiaying

RESOURCE ESTIMATES 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 2008 grade control drilled areas is based on information compiled by Mr L Marshall BSc. MAIG. The mining depletion of the FinOre 2006 Mineral Resource estimate was carried out by Mr L Marshall. Mr. Marshall is a full time employee of Griffin Mining Ltd. The information relating to the FinOre 2006 Mineral Resource and the Micromine2002 Mineral Resource estimates were compiled by Mr C Fawcett BSc (Hons),G Dip Eng, MAusIMM of FinOre and Mr D Pertel MSc. MAIG. of Micromine Consulting Ltd. Mr Marshall, Mr Fawcett and Mr Pertel 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).

The table summarises the Mineral Resource as at 31 December 2008 for:

• The grade control drilled area defined by the FinOre 2006 Mineral Resource estimate
• The non grade control drilled area defined by the Micromine 2002 Mineral Resource estimate

The figure below is the FinOre 2006 Mineral Resource and the 2008 Mineral Resources (grade control drilling) and the 2002 Inferred Mineral Resource (historic surface drilling only).

Defined Resource 2008

RESOURCE ESTIMATE ZONE II

Zone II is believed to represent a southerly continuation of mineralisation present in Zone III. During 2007, 6,300 metres of underground drilling was completed from two short drill cuddies in the exploration decline in Zone II (‘the Fox decline’). This work defined two zones, which were named the Xi Long (‘Western Dragon’) and Dong Long (‘Eastern Dragon’). The most significant mineralisation was found in Xi Long C lode with the best intersection being 47.54 metres at 7.68% zinc, 0.61% lead and 28 grams per tonne silver (UGFOX-031A 134.01 – 181.55m).

The underground and surface drilling was of a sufficient density as to provide the first Mineral Resource Estimate for Zone II. This estimate was based on ordinary Kriging and a cut-off of greater than or equal to 1% zinc.

The information in this report that relates to the Mineral Resource estimate for Zone II (Fox) is based on information compiled by Mr G. Fahey of CSA Australia Pty Ltd (CSA). Mr Fahey is a Chartered Professional and Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists . Mr Fahey has 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 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 Fahey consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

POTENTIAL

The 1,500m long area between Zone II and Zone III where the current mine is located, has long been considered prospective for additional zinc deposits but drilling has proved difficult due to either local access restrictions or deep sandy overburden. Griffin is now working on linking access between Zones II and III to allow a practical underground drilling platform and facilitate access for future mining activities.

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.

Caijiaying Region

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. Griffin has assisted in improving the local infrastructure, including improvements to the Caijiaying village water supply.

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.

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.

Drill Rig at Salmon Gums

Spitfire was incorporated on 2 May 2007 and, on 11 July 2007, acquired the entire issued capital of Spitfire Oil Pty Ltd (formerly Hurricane Fuels Pty Ltd) by way of a share swap. On 18 July 2007, Spitfire’s shares were admitted to trading on AIM under the symbol “SRO”. At the same time, Spitfire placed 16,666,667 new Ordinary Shares with Citadel at £0.60 per share to raise £10,000,000 (before expenses).

Spitfire’s principal activity is the pursuance of the production of fuel oil, distillate and other byproducts from the Salmon Gums Lignite deposits in Western Australia. At 31 December 2008, Spitfire held 36,800 hectares of exploration tenements and had applied for two Mining Leases, totalling 9,854 hectares, containing the bulk of the lignite resource. These tenements are near Salmon Gums, some 100km north of Esperance, in the south-east of Western Australia. The tenements contain a large lignite (brown coal) deposit with a JORC Inferred Resource (>10m thick seam) of 500 million tonnes of lignite. The lignite has a high Kerogen (hydrocarbon) content which, based on Spitfire’s testwork on a limited number of samples, indicates that oil may be recoverable from the deposit at an average yield of approximately 69 litres per tonne of lignite (in situ) or 0.43 barrel per tonne. This implies a potential recoverable fuel oil resource of approximately 200 million barrels (or 33 billion litres) throughout the deposit. Salmon Gums is located next to a main road, railway and pipeline connecting Kalgoorlie and the port of Esperance.

Spitfire is developing its proprietary L2V™ process to extract oil and other products from the lignite at Salmon Gums. The L2V™ process is a form of Pyrolysis, a variation of the coal coking process which has been used for over 100 years and which is known to extract oils and gases from coals. The technology being developed by Spitfire will be compact with an environmental footprint that is much smaller than that of the much more complex but conventional Fisher-Tropsch process. Low carbon emissions are a necessity in the current world climate. Production of a barrel of useable fuel from the L2V™ process is expected to generate a quarter of the emissions from that generated by the conventional gasification plus Fisher-Tropsch process. In the context of the proposed Australian carbon Emissions Trading Scheme, at a price of A$25 per tonne of CO2, the L2V™ process would incur a cost of about A$4.10 per barrel of produced oil whilst the more conventional process would incur a cost in excess of A$16.6 per barrel.

Spitfire Oil laboratory reactor

Since November 2007 Spitfire has been undertaking field delineation and exploration drilling with 420 holes drilled to date totalling 12,624 metres. The resource delineation program consisted of infill drilling, special on-lake drilling, logging and coring with the aim of bringing the previously defined Inferred Resource to Indicated status. The exploration drilling program consisted of additional air-core drilling in the area surrounding the resource. In addition, 12 tons of lignite bulk samples were collected for use in various laboratory test work.

All drilling data and analyses are being entered into a database to generate a new lignite resource estimate with the view of producing an independent updated JORC Indicated Resource estimate.

Whilst the main focus of the drilling in the field program has been on exploration and resource delineation, a number of important other activities have also taken place during 2008 including:

• a helicopter electromagnetic survey;
• a hydro-geological investigation, including flow tests from 5 wellbores;
• an aerial LIDAR survey to provide up-to-date photogrammetry over the license area;
• an aerial multi-spectral survey providing detailed environmental and botanical data; and
• further testing of the L2V™ Process Technology.

In June 2007, Spitfire’s wholly owned subsidiary, Spitfire Oil Pty Ltd, entered into a A$4.4 million multi-year research contract with Curtin University of Technology’s Centre for Advanced Energy Science and Engineering (“CAESE”) to pursue the optimisation of the L2V™ process. Spitfire has augmented its technical expertise with the employment of a new Scientific Officer, Mr Barry Tindall, who is a coal-to-liquids specialist with over 10 years experience with Sasol of South Africa, including the design and commissioning of coal to liquids technology.

Good progress has been made on further proving of the L2V™ Process Technology, in particular:

• a new, specifically designed, laboratory has been completed at Curtin University;
• detailed lignite characterisation, small scale pyrolysis and small-scale materials handling and lignite drying tests have been performed;
• larger scale handling and drying tests were contracted to Tsing Hua University in Beijing;
• optimum “off the shelf” industrial lignite drying technology has been identified;
• Spitfire’s prototype rotary kiln laboratory reactor has been constructed, commissioned and from which oil production has started;
• analysis of the produced oil commenced; and
• a new, fluidised bed, laboratory reactor has been conceived and procurement started.

Following consultation with the relevant Commonwealth and State environmental agencies in Australia it has been determined that development of Salmon Gums project will be assessed for its environmental impact by way of an Environmental Review and Management Plan which includes an eight week period for public comment. Extensive baseline flora, fauna, salt lake ecology, waste rock characterisation and groundwater studies were completed during 2008.

Consultations with the local communities have been ongoing for some time. During 2008 the communities from the nearby port of Esperance and local town of Salmon Gums were canvassed and public meetings were held at both locations. These attracted significant interest from local residents and landholders. The area’s community, businesses and local government have been generally supportive of the Spitfire’s plans.

Contact has also been made with various Australian State and Federal Government bodies for support for Spitfire’s activities. With the resource being West Australian based and the L2V™ Process offering an attractive alternative source of energy, Spitfire has been favourably received.

In 2008 Spitfire moved its principal office and management from Melbourne to Perth, the capital of Western Australia, where its project is located. This move brings Spitfire’s administration closer to Griffin’s. In June 2008, Mr Thyl Kint was appointed Chief Executive Officer of Spitfire. Mr Kint is an energy industry professional with over 25 years worldwide oil and gas experience including, most recently, the position of Project Director for the very large Stybarrow and Pyrenees oil and gas projects in Australia operated by BHP Billiton Petroleum.

With dwindling world resources and the expectation of significant increases in the price of oil in the future, this alternative energy project is highly attractive. Should the results from the L2VTM tests be successful and the development of a commercial plant be achievable, Griffin has the potential to reap significant financial rewards upon the Salmon Gums project coming into commercial operation.

Although Spitfire’s primary objective remains the commercialisation of its L2V lignite-to-liquids technology over the large resource at the Salmon Gums, management have considered other possible synergistic business opportunities and continue to evaluate and pursue other energy related opportunities.

Further information on Spitfire Oil Ltd may be found at www.spitfireoil.com.