Drilling Report

Griffin Mining Ld
02 September 2003

                            GRIFFIN MINING PLC

             1 Berkeley Street, London, W1J 8DJ, United Kingdom
       Telephone: + 44 (0)20 7016 8821  Facsimile:  + 44 (0)20 7016 9124
                       E mail: [e-mail]



                         CAIJIAYING ZINC-GOLD MINE

                       RESULTS OF FEASIBILITY STUDY


Griffin Mining Limited ('Griffin' or the 'Company') has great pleasure in
reporting the positive outcome to its completed feasibility study (the 'Study')
on the Caijiaying zinc-gold project.  The Study demonstrates that the project is
robust and is capable of generating significant profits even in the currently
depressed world zinc price environment.



The Study broadly follows the plan that was presented in the Scoping Study in
2000 for a zinc-gold mine with an initial throughput of 200,000 tonnes per annum
using a western-style decline and low-cost Chinese mining methods to feed a
process plant to produce zinc concentrates for sale.  As previously announced, a
gold processing plant has been included in the design to produce gold dore bars
on site.



The Study shows life of mine production of 314,250 tonnes of zinc metal and
108,450 kilograms of silver in 586,300 tonnes of concentrates grading 53.6% zinc
and 185 g/t silver.  In addition, 39,850 ounces of gold will be produced in
bullion.  The Company anticipates that gold production will be increased as the
mine develops.



The mine has been designed so that an upgrade of mine production can be readily
implemented.  The Company expects to increase production to 500,000 tonnes per
year as soon practicable.



The Study has been conducted using mainly Australian experts for the mine
process plant and infrastructure and the leading base-metal Chinese engineering
institute (ENFI) for the mine design to comply with Chinese regulations and
costs.  The ore reserves (based on the previously announced resources compiled
by Micromine Consulting) have been optimized by Datamine Consulting and CSA
Australia Pty Ltd according to the mine plan.  Only those reserves that relate
to Phase I of the Caijiaying mine development (i.e the first 14.5 years) have
been included in the ore reserves.  The result is a Probable Ore Reserve (under
the Australian JORC Code classification) of 2,570,000 tonnes at 12.59% zinc,
0.42g/t gold and 445.63g/t silver.  This reserve is based on an optimized
resource block model at a 7% minimum zinc cut off and incorporates 8% mining
dilution and an 8% ore loss.



In addition to the above computer-generated reserve, the mining plan
incorporates a manually interpreted Inferred Resource block of higher grade gold
mineralisation of 330,000 tonnes at 8.61% zinc, 2.47g/t gold and 36.35g/t
silver.  This resource block does not include significant other gold
intersections such as hole ZK313-14 which produced 8 metres at 11.65 g/t gold,
7.12% Zinc & 31.13 g/t silver from 118 metres.  The initial gold exploration
drilling programme will be targeted in this area.  The area surrounding drill
hole ZK313-14 falls outside the current ore reserve and mine plan but close to
the area of initial mining and will be drilled to define its extent so that it
can be included in the mine plan.  It is expected that further combined zinc/
gold blocks will be delineated by stope drilling ahead of mining.



A financial model based upon the results of the Study has been prepared by
independent experts Northwind Resources Pty Ltd, which shows the forecast
performance after payback of capital and applicable taxes but without finance
costs or minority interests. At Chinese zinc concentrate prices (equivalent to a
LME zinc price of $760/tonne) and using current world market prices for precious
metals, the model shows the project generates after tax cumulative cash of
US$41.2 million over the Phase I 14.5 year mine life.  As expected, the project
is sensitive to the price of zinc, which is currently at near historical lows.
An increasing zinc price is expected to have the following effect on the
project:



            LME Zinc Price             Cumulative After Tax Cash Flow (US$)
           (US$ per tonne)                   (after capital repayment)

                $760                             $41.2 million
                $900                             $67.2 million
                $1,000                           $85.8 million
                $1,100                           $104.4 million
                $1,300                           $141.6 million


The project requires total pre-production capital of US$12.5 million in addition
to a further working capital requirement of US$3.2 million.  These capital costs
include a 15% contingency for mining capital costs and a 20.75% contingency for
fixed plant and equipment and all other capital costs.  Payback of capital
expenditure is expected in a little over 3 years from commencement of production



It is important that the following be noted:



1.         The feasibility study applies only to zone III at Caijiaying, which
is only a small area of some 1.5 sq km in the overall tenement package held by
the Company at Caijiaying of 67 sq km, the vast majority of which has yet to be
explored;



2.        The Company will continue to drill underground for further zinc and
gold resources during the financing, construction and commissioning of the zone
III mine; and



3.         The Company anticipates that funding for the construction of the mine
and processing facilities at Caijiaying will be from existing cash resources and
project finance and no further equity will be raised for the construction of the
mine or processing facilities.



Commenting on the latest development, Chairman Mladen Ninkov said:



'I am delighted by the results of the feasibility study and it is nothing less
than I expected.  The Caijiaying area has not disappointed the Company or its
shareholders since its acquisition in late 1997 and early 1998.  Barely
scratching the surface at Caijiaying has resulted in this zinc-gold mine going
forward at zone III.  The Company will now move forward at full speed to build
and commission the mine as quickly as financing will allow.  I expect further
drilling this year and early next year will bring additional value to the
Caijiaying project, Griffin and its shareholders.'





Further information



Mladen Ninkov - Chairman                       Telephone: [phone]

Roger Goodwin - Finance Director               Telephone: [phone]

Charles Dampney - Charles Stanley              Telephone: [phone]





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


                      This information is provided by RNS
            The company news service from the London Stock Exchange