Griffin Mining Limited (“Griffin” or “the Company”) has today published its preliminary results for the year ended 31 December 2006 and declared a maiden dividend of three cents per ordinary share.

• Record profit before tax of US$29.5 million (2005 US$0.3 million)
• Maiden dividend of $0.03 per ordinary share
• Substantially increased resource base
• Substantially increased throughput
• Increased production of zinc metal in concentrate
• Further substantial increases in throughput and metal production scheduled for 2007 & 2008
• Initial gold, silver and lead production scheduled for 2007
• Ongoing exploration success
• Continued evaluation of further acquisitions

It gives me enormous pride and real satisfaction to announce a record annual profit of US$29.5 million for the Company in 2006 and to declare a maiden dividend of US$0.03 per share.

The further good news is that Caijiaying continues to rapidly improve. Since commissioning approximately 18 months ago, throughput has doubled from 200,000 tonnes of ore per annum to over 400,000 tonnes of ore per annum. The resource base has increased from 1.2 to 3 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. An impressive achievement.

And 2007 promises to be an even more exciting year. The Company has announced an upgrade to the Caijiaying mine and facilities to enable the processing of over 500,000 tonnes of ore per annum by the end of 2007 rising to 750,000 tonnes of ore per annum in 2008. The Company has also announced that in 2007 it will begin producing a second concentrate which will contain gold, silver and lead. This will be another significant source of revenue for the Company. Lastly, the exploration programme continues underground with exploration and grade control drilling in zone III, pure underground exploration drilling at zone II in the newly constructed Fox Incline and exciting above ground diamond drilling between zones II and III.

Needless to say, the Company continues to endlessly look for further means to grow shareholder value. In that respect, the Company has evaluated a large number of mining projects, predominantly in China. The overwhelming majority of these projects have not met the rigorous geological, metallurgical, mining engineering and financial standards required by the Company, Nevertheless, the Company remains ever hopeful of acquiring such a project at some point in the future

Finally, with US$48 million on the Company’s balance sheet at the time of writing this statement, no debt, no hedging commitments, continued strong commodities prices and an expanding mining operation at Caijiaying, the future of the Company looks particularly exciting.

A maiden dividend of US$0.03 per share will be paid to shareholders on 6^th June 2007. The ex dividend date being 9 May 2007 and the record date 11 May 2007.

1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Company.
2. 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 2006 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 2006 statutory financial statements upon which the auditors’ opinion is unqualified. The results for the year ended 31 December 2005 have been extracted from the statutory accounts for that period, which contain an unqualified auditors’ report.
3. The annual report and accounts for 2006 together with the notice of the Annual General Meeting to be held on 15 June 2007 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company’s London office, 6^th Floor, 60 St James’s Street, London, SW1A 1LE.
4. The calculation of the basic earnings 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.