Drilling Report

Griffin Mining Ld
17 January 2005


17 JANUARY 2005

                             GRIFFIN MINING LIMITED

                       RESULTS FROM UNDERGROUND DRILLING

                        GENERAL UPDATE ON MINE PROGRESS

                          REGIONAL EXPLORATION UPDATE

Overview:

-     Strong underground drill results have identified new zones of high
      grade zinc ore not included in the original feasibility study ore reserve.

-     Mine development and process plant construction proceeding smoothly,
      on target with overall capital expenditure in line with that budgeted.

-     Excellent results from magnetic survey providing confidence to undertake a 
      $1million drill programme to quantify highly prospective epithermal gold 
      targets.



Griffin Mining Limited ('Griffin' or the 'Company'), has carried out further
underground drilling tests on its Caijiaying zinc/gold mine in China which have
increased the potential of the project. The results from the systematic
underground stope-definition diamond drilling programme have exceeded the
Company's expectations in defining high-grade lodes in locations not originally
included in the feasibility study ore reserve.



Chairman Mladen Ninkov said: 'The results of this drilling programme will have a
significant impact on the economic importance of the Caijiaying mine.
Caijiaying, as we have already indicated to the market, continues to deliver
previously unaccounted for new, high grade ore and Griffin is on target for
commissioning this unique mine on time in the spring of 2005.'





Drill Results



The main focus of the drilling programme since July has been to define ore to be
mined first above the 1400 level.  Mineralization and specifically the 'Fu Long
lode' (Rich Dragon) above the 1400 level were not included in the feasibility
study ore reserve.  Previous work defined two parts of this lode but the
drilling has now defined an additional third part to the north.  The lodes are
named the North, Central and South Upper Fu Long Lodes.




1. North Upper Fu Long Lode



Of the 18 holes drilled above 1400 level towards the east, results are only
available for 9 holes but these give a good indication of its width and grade of
this section of the North Upper Fu Long lode:


Hole                     Interval in m          Zinc%             Silver g/t


UGCJY-22                 9.1                    29.23             103.74
+                        5.45                   5.47              -
UGCJY-24                 9.45                   24.14             61.32
+                        1.8                    10.44             36.11
UGCJY-27                 10.48                  18.0              56.47
UGCJY-29                 2.0                    6.88              65
+                        1.5                    7.41              50
+                        2.75                   14.98             56.91
UGCJY-30                 3.25                   26.77             86.92
UGCJY-31                 4.4                    22.98             110
+                        4.45                   7.78              24.27
UGCJY-33                 4.4                    12.53             28.86
+                        5.4                    13.39             86.11
UGCJY-35                 11.25                  8.4               41.96
UGCJY-37                 2.05                   24.7              35.12



The results show that the central part of this lode is up to 70m long, 50m high
and 11m thick.  The lode is open below the 1400 level.



2. The Central Upper Fu Long Lode



The Central Upper Fu Long Lode has received relatively little further drilling
(7 additional holes to date), however, results are available for three holes in
the lower part above 1400 level:


Hole                     Interval in m          Zinc%             Silver g/t


UGCJY-16                 3.17                   13.49             27.98
UGCJY-18                 3                      7.42              13.33
UGCJY-38                 10.15                  16.65             83.6



Again the evidence indicates a lode of about 60m length and depth and up to 10m
width although some wider parts are known from trial mining.



3. The Southern Upper Fu Long Lode



The Southern Upper Fu Long Lode is still being drilled and results are available
for only four holes above the1400 level:


Hole                     Interval in m          Zinc%             Silver g/t


UGCJY-17                 4.51                   9.08              15.59
UGCJY-19                 3.85                   5.58              10
+                        1.7                    10.48             10
UGCJY-21                 2.4                    9.87              -
+                        3.47                   7.43              15.48
UGCJY-23                 12.98                  8.74              7.14



This lode is also open below the 1400 level.



The remaining results from the Upper Fu Long Lode are expected to be received
over the next two months and a reserve estimate for this section will be
completed in due course.  It is expected that this will further demonstrate that
significantly more ore exists than was defined in the original ore reserve
calculated from results obtained by the ore body being drilled in the incorrect
orientation by Chinese.



The underground drilling programme has now moved on to define the size of the
next two lode systems - infill drilling on the Jin Long Lode (Golden Dragon),
which is immediately to the west and below the 1400 level drive, and definition
drilling on the Lower Fu Long Lode (below the 1400 level).





Mine Development



Mine development is proceeding smoothly and it has been possible to start stope
development ahead of schedule rather than just concentrating on developing ore
lode access ways as was originally planned.



The Fu Long lodes above and 30m to the east of the 1400 level drive have now
been substantially developed for full production which will commence once the
main mine decline links up with the 1400 level, which is expected in the next
few days.  A second lode system immediately to the west and below the 1400 level
drive (the Jin Long Lode) has also been accessed by a sub incline off the 1400
drive and is also currently being developed for production.  A third lode system
(the Chang Long or Long Dragon) is currently being drilled and early results are
encouraging.





Process Plant Construction and Commissioning



The main process plant buildings and other infrastructure (water tanks, main
pipelines, initial tailings dam, crusher foundations etc) were sufficiently
completed in November to allow equipment installation to proceed during winter.
All the main zinc process equipment has been delivered to the site and the major
heavy equipment (ball mills and crusher) have been placed on their footings.
The gold process equipment has been shipped from Australia and should arrive by
the end of January.



Construction of the remaining concrete tanks and gantries inside the main
building is almost complete and installation of the rest of the process
equipment will continue over the coming months.  The main power line supply has
been contracted.





Administration and Management



The Griffin management team, working in combination with the Chinese engineering
institute (ENFI), continue to provide a cost effective and flexible management
system, maintaining management control for the benefit of Griffin shareholders
whilst at the same time accessing Chinese expertise in designing and installing
their own equipment.  This system has helped keep costs under control and
maintain timetables.



As a result of this policy Griffin has already recruited 80% of its professional
mine management team.  The Company intends to continue using existing
contractors for mining tasks and has begun recruitment of the process labour
workforce.  The site administration and accommodation are now all complete.





Budget



The just completed review by senior management has indicated that, after
allowing for forecasted further expenditure, the final capital expenditure prior
to production is expected to be in line with that budgeted.





Regional Exploration



During the summer of 2004, an orientation IP survey was conducted over the Zone
III mineralization and following this, a comprehensive IP survey was conducted
over the area between Zones II and III.  A short programme of three surface
holes was implemented before winter to test some of the anomalies and the
results are expected shortly.  On the regional programme, a detailed ground
magnetic survey was completed over the area of epithermal gold anomalies.  This
has yielded excellent results, which will be used to define drill targets for
next summer's gold drilling programme.





Further information

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

Philip Davies                            Telephone: [phone]
Charles Stanley & Company 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).

Further information on Griffin Mining Ltd is available  on the Company's web
site: www.griffinmining.com










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