Caijiaying Update

Griffin Mining Ld
04 December 2006


                            GRIFFIN MINING LIMITED
                60 St James's Street, London SW1A 1LE, United Kingdom
       Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773
                       E mail: [e-mail]

                               4th DECEMBER 2006

       UPGRADE OF PROCESSING FACILITIES AT CAIJIAYING ZINC GOLD MINE TO
                             500,000 t.p.a. in 2007
                             750,000 t.p.a. in 2008


                       GRIFFIN CASH HOLDINGS $33 MILLION


Griffin Mining Limited ('Griffin' or the 'Company') is extremely pleased to
announce that it has concluded a feasibility study on the upgrade to the
Caijiaying mine processing facilities and, based on the conclusions of that
study, the board of Griffin has resolved to upgrade the Caijiaying processing
facilities to enable the processing capacity to be increased from the
commissioning capacity of 200,000 tonnes of ore per annum ('t.p.a')
(subsequently increased to 350,000 t.p.a.) to 500,000 t.p.a. in 2007 and to
750,000 t.p.a. in 2008.

The initial plant upgrade in 2007 will enable a precious metals concentrate
containing gold, silver and lead to be produced for sale in China.

This first stage of the upgrade will be achieved by the addition of floatation
and scavenger cells, an inline pressure jig, a new power line and sub-station,
the construction of a new backfill plant and a new precious metals circuit, all
to be completed by the end of summer 2007.  This will increase the processing
capacity to 500,000 t.p.a.  The cost of these additions is estimated to be $4.8
million.

The second stage will consist of a new SAG mill circuit to be ordered in 2007
with delivery and installation to be completed in 2008.  This will increase the
processing capacity to 750,000 t.p.a.  The cost of this addition is estimated to
be $2.3 million.

All capital expenditure will be met by the current cash reserves of the Griffin
Group of companies which currently amounts to $33 million.  The Company has no
debt.

The increased throughput is expected to substantially increase revenues as a
result of greater zinc metal production and the introduction of a new revenue
stream from the production of precious and other base metals.

The Company will immediately proceed to complete detailed designs for the
upgrades, expected to be completed in the second quarter of 2007.

A revised JORC compliant resource statement for zone III at Caijiaying is
expected shortly.

Mladen Ninkov, Griffin's Chairman, commented as follows:

'This is yet another outstanding result for the shareholders of Griffin which
has been achieved by the dedication and talent of the employees and contractors
of the Company.  All facets of the Company's asset base continue to improve
including the size of the orebody, the talent of the Griffin team and the
economic and political stability which China provides.'


Further information

Mladen Ninkov - Chairman                           Telephone: [phone]
Roger Goodwin - Finance Director
Griffin Mining Limited

Adrian Hadden / Christopher Rollason               Telephone: [phone]
Collins Stewart Europe Limited

Hugo de Salis                                      Telephone: [phone]
St Brides Media & Finance Ltd


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



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