Griffin Mining Limited (“Griffin” or the “Company”) has agreed to withdraw the proposed grant of options over 23.75 million ordinary shares in the Company to key personnel and directors announced at the time of the placing of new ordinary shares with Citadel in July 2007. It was deemed inappropriate by the Board to do so in the current market conditions. Instead, it has been agreed to grant a more appropriate set of options (the “new options”) over 5,000,000 new ordinary shares to directors and key employees of the Company (the "Options") in order to maintain key personnel in a still extremely tight employment market in line with standard industry practice.

Each Option will entitle the holder to subscribe for new ordinary shares in the Company at an exercise price of 20 pence per new ordinary share on or before 31st October 2013. The Options will vest with each option holder in 3 separate and equal instalments as follows:

• I.The first third of each holder’s options will vest immediately;
• II.The second third of each holder’s options will vest on 31st December 2009; and
• III.The last third of each holder’s options will vest on 31st December 2010.

The Options will not vest if an employee or a director resigns or leaves the Company for cause prior to the vesting event taking place. All the Options will vest immediately upon a takeover offer being made or a change in control of the Company taking place prior to the Options expiring.

Upon exercise of these and existing options granted, the resulting new ordinary shares will represent approximately 9.8 per cent of the Company's enlarged issued share capital. Existing options currently vested represent approximately 5.1 per cent of the Company’s enlarged share capital.

These Options have been allocated as follows: