• Monday 17th January 2011

Updated JORC Mineral Resource Estimate at Caijiaying

Updated JORC Mineral Resource Estimate at Caijiaying

Substantial Increase in Tonnes and all Contained Metals

Griffin Mining Limited (“Griffin” or the “Company”) is very pleased to announce the latest JORC reported Mineral Resource Estimate for its Caijiaying Mine in the People’s Republic of China. The results not only significantly increase estimates of the contained tonnes and metal within the Zone III mineral resource after mining depletion, but also doubles estimates of the contained tonnes of metal within the Zone II mineral resource.

In summary:

  1. A combined 18% increase in the mineral resource at Zones II & III rising from 32.8 million tonnes to 38.6 million tonnes, representing a mine life of over 30 years at the increased throughput rate.
  2. The following increases:
    • 12.1% increase in contained Zinc;
    • 28.4% increase in contained Lead;
    • 15.2% increase in contained Silver; and
    • 12.8% increase in contained Gold.
  3. A 12% increase in the zinc grade and a 72% increase in the tonnage of the mineral resource at Zone II.

Drilling has continued to provide success along strike and south of Zone III to Zone II, allowing the reinterpretation and upgrade of the Zone II Mineral Resource Estimate. The 25,000 metre surface and underground drilling program is approximately 60% complete and is due to recommence in April 2011.

More underground drilling was undertaken in the mine corridor Between Zone II and Zone III during 2010. Drilling continued to intersect significant mineralisation which added to the Zone II Mineral Resource Estimate. This work will continue in 2011. With the Mineral Resource Estimate at Zone II approaching 10 million tonnes and the drilling density approaching the required level, it is envisaged that an application for a mining licence over Zone II will be made in the near future. The mining licence application will ensure that all the known mineralization covering Zones II and III and the contiguous area between them will be covered. This should allow a second ore source to be mined at Caijiaying and significantly extend the life of the mining operations.

The 2011 Mineral Resource estimate is reported at a zinc cut-off of 1%. Tabled below is the summary of the recently up-dated 2011 Mineral Resource

Zone III                    
      Metal Grade Contained Metal
Category Cut off Tonnes Zn Pb Ag Au Zn Pb Ag Au
    ‘000 t % % g/t g/t t t Oz Oz
Measured 1% 4,793 6.57 0.40 33.34 0.86 314,842 19,329 5,137,406 131,829
Indicated 7,352 5.47 0.31 30.15 0.89 402,501 22,639 7,126,105 209,726
Inferred 17,020 4.15 0.26 26.53 0.95 706,501 43,737 14,519,565 521,491
Total: 29,164 4.88 0.29 28.56 0.92 1,423,843 85,769 26,783,076 863,049
Zone II                    
      Metal Grade Contained Metal
Category Cut off Tonnes Zn Pb Ag Au Zn Pb Ag Au
    ‘000 t % % g/t g/t t t Oz Oz
Measured 1%
Indicated 4,061 3.44 0.70 26.03 0.34 139,655 28,509 3,398,903 43,871
Inferred 5,386 3.71 0.56 23.90 0.29 199,706 30,087 4,138,064 50,617
Total: 9,447 3.59 0.62 24.81 0.31 339,362 58,596 7,536,968 94,488

Note: Zone II Resource includes 1.49 million tonnes at 3.09% Zinc oxide material.

The information in this report that relates to the January 2011 Mineral Resource estimates is based on information compiled by Mr Luke Marshall BSc Geology, Member AIG. Mr. Marshall is a full time employee of Hebei Hua Ao Mining Industry Company Limited, a subsidiary of Griffin Mining Limited. Mr. Marshall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Marshall 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, “Caijiaying continues to deliver on its promise as an extensive, long life and highly profitable mineral system. The shareholders should continue to enjoy the benefits of this mine for a very long time.”