Griffin Mining Limited (“Griffin”or the “Company”) has today published its interim results for the six months ended 30th June 2006.

Highlights:

• Profit before tax of US$9,006,000
• Caijiaying mine commissioning phase successfully completed
• Increased mine, processing and concentrate production
• Improving profitability with throughput and price increases

Results for the six months ended 30th June 2006 show pre-tax profits of US$9,006,000 (2005 loss restated US$966,000).

Comparative figures for the six months ended 30th June 2005 cover the period up to the commencement of production at Caijiaying, prior to this no mining revenues were generated.

Turnover amounted to US$15,672,000 (2005 nil) up from US$6,120,000 in the previous six months to 31st December 2005 with increased production and zinc concentrate prices.

Operating profit US$8,563,000 (2005 loss restated US$858,000), up from US$1,283,000 in the previous six months to 31st December 2005.

The financial results reflect the increase in production and sales at the Caijiaying mine. 146,557 tonnes of ore were mined in the period compared with 107,879 in the previous six months to 31st December 2005. 129,939 tonnes of ore were processed in the period compared with 92,096 in the previous six months. 8,679 tonnes of zinc metal in concentrate were sold in the period compared with 6,676 in the previous six months.

Ongoing improvements in profitability continue to be achieved. The Cajiaying plant continues to operate above design specifications, without any detrimental effects to zinc metal production, even as the Company continues to increase the hourly tonnages through the mill. With the continued buoyancy in the world zinc price and the increasing production, even more significant profit results are expected for the full calendar year.

Chairman’s statement

“The first six month results, reflecting the ramp up in operations at the Caijiaying mine after wet commissioning, is a wonderful result that vindicates the faith and patience the shareholders have shown in Caijiaying and the Company. I look forward to an even more impressive result for the full 2006 year.”

Griffin Mining Limited Consolidated Income Statement

Griffin Mining Limited

Consolidated Balance Sheet

Griffin Mining Limited

Griffin Mining Limited

Griffin Mining Limited

Notes to the Interim Statement

1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the accounts of the Company for the year ended 31 December 2005.


2. Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company’s London office, 60 St James’s Street, London, SW1A 1LE.


3. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the UK Companies Act 1985. The summarised consolidated balance sheet at 31 December 2005 and the summarised consolidated income statement, consolidated statement of changes in equity and the summarised consolidated cash flow statement for the year then ended have been extracted from the Group’s 2005 statutory financial statements upon which the auditors’ opinion is unqualified.


4. The calculation of the basic earnings/(loss) per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below: