Griffin Mining Limited (“Griffin” or the “Company”) is pleased to announce a substantial upwards resource revision following its first 18 months of operations at its Caijiaying Mine in the People’s Republic of China. The results lift the contained metal in situ from approximately 1.2 to 3.0 million tonnes of zinc metal, from 0.2 to 1.6 million ounces of gold and from 13.9 to 53.7 million ounces of silver.

The Company has now completed approximately 52,700 m of underground diamond drilling. The underground drilling used to re-estimate the resource covers less than 15% of the entire resource area originally defined for the mining feasibility study in 2002.

The updated resource figures confirm the recent announcement to increase mine production to 750,000 tonnes of ore per annum by 2008.

Significantly, the resource for silver and gold indicates that the inclusion of a precious metals circuit will generate significant cash flows for the Company.

The 2006 Mineral Resource was estimated at a zinc cut-off of 1%. Tabled below is the summary of the recent up-dated 2006 Mineral Resource for the grade control drilled mine area plus the 2002 Mineral Resource for the non grade control drilled mine area at both a 1% and 4% cut-off grade. The aggregate resource is calculated by adding both the 2006 and 2002 resource estimates at a 1% cut-off grade.

Micromine 2002 Mineral Resource Estimate (Non Grade Control Drilling)
Category	Cut -off	Tonnes	Metal Grade			Contained Metal
		Millions	Zinc %	Gold g/t	Silver g/t	Zinc million tonnes	Gold million Oz	Silver million Oz
Indicated	1%	40.32	4.3	0.7	20	1.67	0.95	29.53
Inferred	1%	34.29	2.9	0.5	13	0.93	0.56	18.25
Total	1%	74.60	3.6	0.6	17	2.60	1.51	47.78
Indicated	4%	13.72	7.9	0.8	32	1.09	0.33	13.97
Inferred	4%	4.89	8.5	0.5	31	0.42	0.09	4.82
Total	4%	18.61	8.1	0.7	32	1.51	0.42	18.79
FinOre 2006 Mineral Resource Estimate (Grade Control Drilling)
Category	Cut -off	Tonnes	Metal Grade			Contained Metal
		Millions	Zinc %	Gold g/t	Silver g/t	Zinc million tonnes	Gold million Oz	Silver million Oz
Measured	1%	1.52	6.8	0.5	37	0.10	0.02	1.81
Indicated	1%	3.22	5.7	0.6	33	0.18	0.06	3.42
Inferred	1%	0.89	4.5	0.6	22	0.04	0.02	0.65
Total	1%	5.63	5.8	0.6	32	0.32	0.10	5.88

The information in this report that relates to the Mineral Resource estimates for the 2006 grade control drilled areas is based on information compiled by Mr C Fawcett BSc (Hons),G Dip Eng, MAusIMM, of FinOre Pty Ltd and the information relating to the 2002 non grade control drilled area by Mr D Pertel of Micromine Consulting Ltd. Mr Fawcett is a Member of The Australasian Institute of Mining and Metallurgy and Mr Pertel is a Member of the Australian Institute of Geoscientists. Both 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 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 Fawcett consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

Chairman Mladen Ninkov commented “The new resource statement reaffirms the world class size of the current orebody which will be extracted at a higher rate with the planned production increase in 2007 and 2008. Caijiaying continues to impress and excite all those associated with it.”