Griffin Mining Regulatory News (GFM)

60 St James's Street, London SW1A 1LE, United Kingdom

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

E mail: griffin@griffinmining.com

7th September 2010

INTERIM STATEMENT FOR THE SIX MONTHS ENDED 30th JUNE 2010

SIX MONTHS PRE-TAX PROFIT OF US$8.66 MILLION

RECORD SIX MONTH ZINC & GOLD PRODUCTION

Griffin Mining Limited ("Griffin" or "the Company") is pleased to publish its interim results for the six months ended 30th June 2010.

Financial and Trading:

The results for the six months ended 30 June 2010 show a pre-tax profit of US$8,658,000 compared to a loss in the six months to 30 June 2009 of US$1,354,000, when operations at Griffin's Caijiaying Zinc Gold Mine in Northern China were suspended for much of the period.

An operating profit of $11,201,000 was achieved in the first six months of 2010 compared to a loss of $4,696,000 in the first six months of 2009, when operations were suspended. 260,317 tonnes of ore were processed at Caijiaying in the six months to 30th June 2010, compared with 81,281 tonnes of ore in the first six months of 2009, to produce 15,101 tonnes of zinc metal in concentrate (2009 3,243 tonnes), 4,570 ounces gold (2009 617 ounces), 105,475 ounces silver (2009 20,003 ounces) and 441 tonnes of lead (2009 144 tonnes). Zinc and gold production in the first six months of 2010 was a record for any six month period at Caijiaying, with increased ore mined and processed and better grades.

Upgrade of the processing facilities to a minimum capacity of 750,000 tonnes of ore per annum is on schedule and virtually complete with commissioning of all the main items of equipment in August 2010. Subject to the temporary suspension of mining operations from 9th August 2010 following the tragic death of two employees of the mine contractor at Caijiaying, mining and haulage rates are being increased to meet the increase in processing capacity.

With the lower levels of the mine being accessed, costs have increased with increased development work ahead of planned increase in extraction rates. As extraction and process rates increase with the completion of the upgrade of the processing facilities, the cost per tonne of ore mined and processed and metal produced is expected to fall.

The results for the first six months of 2010 have been impacted by foreign exchange losses of $3,061,000 arising mainly on sterling bank deposits.

Griffin has a 39.2% equity interest in Spitfire Oil Ltd ("Spitfire"). Full provision has been made in the interim results for Griffin's share of Spitfire's losses of $127,000. 

Griffin held cash balances of $67.1m as at 30 June 2010. This places the Company in an enviably strong position to continue its strategy of identifying acquisition opportunities to broaden the resources and geographical profile of the Company.

In line with previous years and the Company's policy of determining annual dividends at the time of the Company's full year results, the Board of Griffin has not declared an interim dividend.

Chairman's Statement

"We have been delighted by the return to profitability following the global financial crisis in 2008 / 2009 and the continued firmness in metal prices. With the granting of the licence to mine below the 1300 level, new stopes are being developed to push mining rates to meet the increase in processing capacity on recently upgraded mill, crushing and tailings facilities and to access the increased gold available at these levels.

Unfortunately, the recent tragic fatalities at Caijiaying have caused a short term delay in increasing mine production. However, with the expectation that mining will be allowed to begin in the near future and the upgrade of the processing plant being completed, Griffin is poised to significantly increase production and revenues at Caijiaying in the near future.

Extraordinary developments continue to occur in China, including the development of major new cities through massive construction, new factories, power stations, wind farms, roads, railways and other associated infrastructure. This construction, continues to cause the very strong demand for concentrate from Caijiaying and is evidenced by the continuing recent falls in smelter charges by zinc smelters and metals traders.

Griffin's directors and management remain committed to an unerring search for other mines or companies which hold premium mining assets. Unfortunately, with diminishing exploration expenditure, good projects that can provide economic returns to shareholders are scarce, exacerbated by predatory Chinese groups with almost limitless financial resources. We continue the search undeterred by these developments."

Griffin Mining Limited

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

Roger Goodwin - Finance Director

Investec Investment Banking:

Stephen Cooper +44 (0)20 7597 5104

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

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Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

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Griffin Mining Limited

Condensed Consolidated Statement of Changes in Equity

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

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Griffin Mining Limited

Notes to the Interim Statement

1. These 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 31 December 2009.

2. Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company's London office, 60 St James's Street, London, SW1A 1LE.

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 31 December 2009 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 2009 statutory financial statements upon which the auditors' opinion is unqualified.

4. Since 31 December 2009, the Company has purchased zinc put options to hedge against falls in the price of zinc. These options have been classified as a derivative financial asset at fair value with any gains or losses recognised in the Income Statement as part of finance income. The fair value of derivative financial assets are determined by reference to active market transactions or using a valuation technique where no active market exists.

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: