Griffin Mining Regulatory News (GFM)

8th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom

Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773

E mail: griffin@griffinmining.com

16th September 2019

INTERIM STATEMENT

for the six months ended 30th June 2019

Griffin Mining Limited ("Griffin" or "the Company") has today released its unaudited results for the six months ended 30th June 2019.

Highlights:

·; Revenues of $38.6 million (30th June 2018 - $54.1 million)

·; Operating profit of $6.0 million (30th June 2018 - $21.1 million)

·; Profit before tax of $6.3 million (30th June 2018 - $21.3 million)

·; Profit after tax of $4.1 million (30th June 2018 - $15.3 million)

·; Basic earnings per share of 2.36 cents (30th June 2018 - 8.95 cents)

Financial and Trading:

The first six months of 2019 has seen falling zinc metal prices and significantly higher smelter treatment charges resulting in the average zinc metal in concentrate prices received in the first six months of 2019 of $1,591 per tonne compared with $2,522 per tonne in the first six months of 2018, a 36.5% reduction.

In the six months to 30th June 2019, 432,592 tonnes (30th June 2018 - 448,530 tonnes) of ore were processed to produce:

·; 16,692 tonnes of zinc (30th June 2018 - 16,873 tonnes);

·; 494 tonnes of lead (30th June 2018 - 459 tonnes);

·; 141,306 ounces of silver (30th June 2018 - 132,689 ounces); and

·; 9,099 ounces of gold (30th June 2018 - 9,492 ounces).  

Zinc revenues before royalties and resource taxes in the six months to 30th June 2019 were $27,159,000 (30th June 2018 - $42,573,000) with 17,072 tonnes of zinc metal in concentrate sold (30th June 2018 - 16,881 tonnes). Lead and precious metals revenues were $13,036,000 (30th June 2018 - $14,045,000) with less gold in concentrate sold.

During the six months to 30th June 2019:

·; 410,819 tonnes of ore were mined (30th June 2018 - 400,167 tonnes);

·; 426,070 tonnes of ore were hauled (30th June 2018 - 437,734 tonnes); and

·; 432,592 tonnes of ore were processed (30th June 2018 - 448,530 tonnes).

Costs of sales (mining, haulage and processing costs) of $22,671,000 in the first six months of 2019 were down 2.8% on that incurred in 2018 of $23,336,000. Whilst enhanced safety requirements in China have caused an increase in mining costs, haulage and processing costs have been reduced with less waste materials hauled and sent to tailings and crushing efficiencies.

Net operating expenses (including those of the Caijiaying site) have risen from $9,663,000 in the first six months of 2018 to $9,955,000 in 2019. This includes fees to the Group's Chinese partners of $1,820,000 (2018 $2,186,000), equivalent to their equity interest in Hebei Hua Ao's profits. Whilst these fees have fallen, other operating costs within China have increased with higher fees and costs in dealing with stricter environmental, health and safety regulations and in applying for the mining licence over Zone II.

Basic earnings per share were 2.36 cents (30th June 2018: 8.95 cents). At 30th June 2019, attributable net assets per share amounted to 124 cents (30th June 2018: 119 cents).

Cash flows from operations in the period have been directed at paying down outstanding creditors and further development of the Caijiaying Mine.

Chairman's Statement

Chairman Mladen Ninkov commented, "Although all stakeholders in the Company will be disappointed with the financial results for the first half of 2019, they are directly, and practically solely, attributable to the fall in the zinc price and the tremendously higher smelter treatment charges in the first 6 months of the year. Operations and metal production were generally in line with budget. As is often said, mining is a fixed cost business and, as such, a reduction is sales revenues has a direct and significant effect on the margin of profit. We continue to hope for a higher zinc price and lower treatment charges for 2019 into 2020."

Griffin Mining Limited

Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772

Roger Goodwin - Finance Director

Panmure Gordon (UK) Limited Telephone: +44 (0)20 7886 2500

Dominic Morley

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).

The Company's news releases are available on the Company's web site: www.griffinmining.com

Griffin Mining Limited

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement of Changes in Equity

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

 (expressed in thousands US dollars)

Griffin Mining Limited

Notes to the Interim Statement

1. These unaudited condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31st December 2018.

2. This interim report will be available on the Company's web site, www.griffinmining.com. Hard copies are available from the Company's London office, 8th Floor, Royal Trust House, 54 Jermyn Street, London. SW1Y 6LX.

3. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 434 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 31st December 2018 and the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated cash flow statement for the year then ended have been extracted from the Group's 2018 statutory financial statements upon which the auditors' opinion is unqualified.

4. The summary accounts have been prepared on a going concern basis. Having considered the cash resources, banking facilities and forecasts for the remainder of the Hebei Hua Ao joint venture term, the directors do not expect any going concern issues to arise.

5. 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 period. 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:

6. The prior year adjustment relates to the capitalisation of leases following the introduction of International Financial Reporting Standard 16, on leases.