Griffin Mining Limited (“Griffin”or “the Company”) is pleased to announce that a further exciting gold intersection has been obtained from the underground drilling program at its Caijiaying mine in China, and that the Company has commissioned a study to investigate upgrading production at Caijiaying.

Underground Gold Drilling Results

The Company is pleased to announce a further high grade intersection in one drill hole of:

• 22.7 metres at 8.36 grams per tonne;
• 3.5 metres at 4.56 grams per tonne: and
• 3.9 metres at 5.28 grams per tonne.

• 8.8 metres at 19.2 grams per tonne; and
• 6.2 metres at 14.2 grams per tonne.

RC Drilling

The reverse circulation (“RC”) drilling programme from surface at Caijiaying is progressing well with approximately 75% of the planned programme completed. Due to the current lack of capacity in the support services for the mining industry, assay results have been severely delayed with no meaningful results having yet been received. The Company will release such results as soon as they become available.

Practical Completion of Caijiaying Mine and Processing Plant

The Caijiaying mine and processing plant has now reached practical completion less than 3 months after production began in June of this year. The mine has been consistently producing ore in excess of the required rate of 3,850 tonnes per week in the past month. The process plant has now been fully commissioned for zinc production and has achieved its design specification level with respect to the recovery rate (92%) and initial production of 45.4 tonnes per day. The feasibility study head grade of over 10% zinc is now being fed into the mill. As at the end of August over 50,000 tonnes of ore have been accumulated at surface in stockpiles ready for processing. With the zinc circuit fully operational, the gold circuit is now being prepared for commissioning.

Production Upgrade Study Commissioned

With the exceptional mining and production results obtained to date, the Company has commissioned the relevant studies with a view to upgrading production at Caijiaying by the summer of next year.

Griffin Mining Chairman Mladen Ninkov commented:

“Caijiaying continues to provide ample evidence that the long term view held by the Company that Caijiaying will develop into a long term, highly profitable, world class ore body and mining operation is valid and continues to strengthen with each passing day. This is a continuing just reward for the loyal shareholders of the Company.”