Griffin Mining Limited (“Griffin” or “the Company”) has today published its preliminary results for the year ended 31 December 2007 and declared a dividend of three cents per ordinary share.

Highlights:

• Profit before tax of $26.8 million on a declining zinc price
• Ore mined up 43% in 2007 to 430,891 tonnes compared to 301,168 tonnes in 2006
• Ore processed up 36% in 2007 to 409,193 tonnes compared to 301,101 tonnes in 2006
• Precious metals circuit commissioned with production and sale of a second concentrate containing lead, silver and gold
• Maiden resource for Zone II announced, located just 1.5 kilometres south of the existing mine at Zone III

Chairman’s Statement:

I am delighted to report that the Company made a profit before tax of $26.8 million, a remarkable performance considering the zinc price fell 46% in 2007, from $4,100 in January to $2,200 in December. Yet Griffin was generally able to reproduce its 2006 net profit level and, as such, the Company has been able to maintain its dividend policy of declaring a $0.03 per share dividend for the 2007 financial year.

2007 witnessed exceptional progress in many areas of the Company’s operations and in its preparation for the future. These include:

• Production of ore from Zone III at Caijiaying continued to increase. Mill throughput has now increased over 150% since commissioning with operations currently processing over 500,000 tonnes per annum and expected to reach 750,000 per annum following the installation of the new primary ball mill in late summer 2008. The mining operations are also expanding to cater for this new production schedule;
• Significant effort has been expended in designing, constructing and installing the new infrastructure needed to deal with the planned increased production schedules. A new backfill plant has been completed to enable more efficient extraction of ore, new floatation cells have been installed to handle the increased volume of zinc and precious metals concentrates and a new crushing circuit and ball mill will enable greater throughput to be generated by the Caijiaying mill. In addition, a new accommodation block and administrative offices have been constructed to cater for the additional staff required as the mine continues to expand;
• A new precious metals concentrate containing gold, silver and lead was commissioned in December 2007. This will become ever more important with the increasing production of precious metals as the mine accesses higher grade material and will allow lead to be separated from the zinc concentrate for the production of a higher quality concentrate with a subsequently higher sale price;
• The discovery of a new mineable orebody at Zone II has far reaching consequences and added exceptional value for shareholders. Firstly, it is only 1.5 kilometres from the Caijiaying processing facilities, allowing easy haulage at minimum cost. Secondly, it provides an alternate source of ore to ease the scheduling of mining and haulage timetables at Zone III. Thirdly, and most importantly, it confirms the long held view that Zone II and III are, in effect, one orebody. That prospects opens up the possibility of an additional 1.5 kilometres of mineralization. To prove this hypothesis, a new decline is being driven off the Zone III access directly to the new Zone II orebody, with the necessary underground drilling being undertaken off that drive. This is an exciting prospect for all involved; and
• The continued accumulation of cash by the Company such that Griffin now has a cash balance exceeding $205 million with no debt.

It should be noted that the Company continues to expend an inordinate amount of time on new acquisitions. These need to be able to meet the financial, political, structural, metallurgical and geological parameters required to provide the shareholders with the returns they have come to expect and deserve. Needless to say, such acquisitions are difficult to find and even more difficult to consummate. It is enough to add that the Company will continue to progress the enormous potential still untapped at Caijiaying whilst continuing to evaluate and undertake acquisitions which meet these set parameters.

Dividend

Griffin Mining Limited

Summarised Consolidated Income Statement
For the year ended 31 December 2007
(expressed in thousands US dollars)

Griffin Mining Limited
Summarised Consolidated Balance Sheet
As at 31 December 2007
(expressed in thousands US dollars)

Griffin Mining Limited
Summarised Consolidated Statement of Changes in Equity
For the year ended 31 December 2007
(expressed in thousands US dollars)

	Share	Share	Contributing	Share	Other	Foreign	Profit
	Capital	Premium	surplus	based	reserves	Exchange	and loss	Total
				payments		Reserve	Reserve
	$000	$000	$000	$000	$000	$000	$000	$000
At 31 December 2005	1,838	39,040	3,690	842	-	215	(12,740)	32,885
Exchange differences on translating foreign operations	-	-	-	-	-	264	-	264
Net income recognised directly to equity	-	-	-	-	-	264	-	264
Profit for the year	-	-	-	-	-	-	29,470	29,470
Total recognised income and expenses in the year	-	-	-	-	-	264	29,470	29,734
Regulatory transfer for future investment	-	-	-	-	297	-	(297)	-
Issue of share capital	3	126	-	-	-	-	-	129
Cost of share based payments	-	-	-	1,711	-	-	-	1,711
Movement in fair value of financial assets	-	-	-	-	-	-	(1)	(1)
At 31 December 2006	1,841	39,166	3,690	2,553	297	479	16,432	64,458
Exchange differences on translating foreign operations	-	-	-	-	20	2,630	-	2,650
Net income recognised directly to equity	-	-	-	-	20	2,630	-	2,650
Profit for the year	-	-	-	-	-	-	26,762	26,762
Total recognised income and expenses in the year	-	-	-	-	20	2,630	26,762	29,412
Dividend paid	-	-	-	-	-	-	(5,826)	(5,826)
Regulatory transfer for future investment	-	-	-	-	262	-	(262)	-
Exercise of options	-	1,042	-	(1,042)	-	-	-	-
Issue of share capital	774	156,429	-	-	-	-	-	157,203
Cost of share based payments	-	-	-	2,915	-	-	-	2,915
At 31 December 2007	2,615	196,637	3,690	4,426	579	3,109	37,106	248,162

Griffin Mining Limited
Summarised Consolidated Cash Flow Statement
For the year ended 31 December 2007
(expressed in thousands US dollars)

Notes:

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 2007 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 2007 statutory financial statements upon which the auditors’ opinion is unqualified. The results for the year ended 31 December 2006 have been extracted from the statutory accounts for that period, which contain an unqualified auditors’ report.
3. The annual report and accounts for 2007 together with the notice of the Annual General Meeting to be held on 13 June 2008 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, 6th 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.
   
   Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below: