GOLD PROSPECTS

Griffin Mining Ld
11 December 2002


                             GRIFFIN MINING LIMITED



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

                               11th December 2002


                 GOLD PRODUCTION CLOSER AT CAIJIAYING PROJECT


Griffin Mining Limited ('Griffin' or the 'Company') has today announced,
following the successful zinc resource upgrade of its Chinese Caijiaying Project
announced on the 25th November 2002, further gold exploration results which give
growing confidence that the Company can develop substantial gold production from
its Caijiaying project and at an early stage in the project's development.

An independent consultant's report (attached) has shown that numerous gold
targets have been defined which have many features in common with world-class
epithermal gold districts.  The work has defined targets at different stages of
definition, the first of which consists of the inferred gold resource of 2.61
million tonnes at 6.78 grams per tonne announced previously and defined by
independent consultants Micromine Pty Ltd Consulting Division ('Micromine') in
accordance with the guidelines set out in the Australian Code for Reporting of
Mineral Resources and Ore Reserves (The JORC Code).  New data suggests that the
largest part of this 500,000 ounce resource is at the southern end of the
planned zinc mine in zone III at Caijiaying and can be accessed for infill
drilling while the decline for the zone III zinc mine is being developed.  If
confirmed, this would allow parallel production of gold and zinc ore at very low
cost and within the first two years of operation.  This is at a much earlier
stage than previously thought.

The consultant's report contains details of some of the best gold intersections
from the Zone III area such as:

            8.00 metres @ 11.65 g/t gold & 31.13 g/t silver
            8.45 metres @ 7.83 g/t gold & 25.94 g/t silver
            5.44 metres @ 6.37 g/t gold & 23.97 g/t silver
            5.35 metres @ 5.08 g/t gold & 18.85 g/t silver
            3.93 metres @ 13.66 g/t gold & 32.34 g/t silver
            3.70 metres @ 8.04 g/t gold & 36.24 g/t silver
            3.90 metres @ 6.73 g/t gold & 26.41 g/t silver
            2.00 metres @ 30.90 g/t gold & 39.00 g/t silver
            2.00 metres @ 11.79 g/t gold & 15.00 g/t silver


There is also confirmation of several near-mine targets that warrant the next
stage of exploration as well as a number of promising regional targets which
give confidence that a large resource base can be developed over time.  Two
large regional soil gold geochemical anomalies have also been defined where
there has been almost no previous testing.  One zinc-exploration hole within one
of these anomalies intersected 4.47 metres at 5.53 grams per tonne gold which
indicates the anomaly's potential.  The merit of these targets has been verified
by a renowned epithermal specialist, Dr Noel White.

Commenting on the latest exploration results, Chairman Mladen Ninkov said:

'As each set of new results are produced and correlated, the obvious conclusion
is that Caijiaying is a world-class zinc and gold mineralized area.  We are now
working on a plan that will bring the Caijiaying project into production at the
earliest opportunity and develop both the zinc and gold resources.  The latest
results are beginning to confirm my long-held belief that Caijiaying will
primarily be a gold producing area with the substantial bonus of an attached
large-scale zinc mine.  I am delighted for our shareholders.'

Griffin has commenced a feasibility study which it hopes to complete in the
first quarter of next year with the intention of beginning development of the
project next summer.


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



CSA Australia Pty Ltd
Geological Consultants
A.C.N 077 165 532

Level 1
47 Burswood Road
Burswood
Western Australia 6100

Telephone: [phone]
Facsimile: [phone]


Date;  10 Dec-02
Ref; RC.96.02


The Directors
Griffin Mining Ltd
1 Berkeley Street
London W1J 8DJ
United Kingdom



Dear Sirs,

                 Caijiaying Project - Summary of Gold Potential


You have requested CSA to summarise our findings from the various field studies
that were completed last summer on this on the gold-exploration potential of the
project.  We present below our summary which includes reference to the Inferred
Resource estimate within the Zone III deposit (that was announced in our
previous report 25th November, 2002) of 1.7Mt at 8.63g/t gold at a 4g/t minimum
cutoff.


Introduction

The gold potential of the Caijiaying Project has been well known since Griffin
became involved in the project in 1997.  However, at that time the geological
controls on the distribution of the gold were not clear and the picture was
incomplete because the Chinese had not systematically analysed for gold due to
cost constraints.  Since then, Griffin has completed a large re-sampling program
for gold (in 1998) and this, together with the 2002 drilling program and
development of a new geological model has led to a much better understanding of
the gold distribution within the Zone III deposit.

In addition to the work at Zone III, work has also progressed on regional
exploration in the area which has helped define the overall gold potential of
the project.  This work has consisted of the recognition of an epithermal style
of mineralisation along the main regional fault structure and the definition of
coherent soil geochemical anomalies and drill- target areas.  The results of
these surveys have now been compiled and interpreted and a number of early
conclusions can be drawn to direct further work.

In order to simplify the results we have described the potential in three main
categories, the 'In-Mine Potential', the 'Near-Mine Potential' and the 'Regional
Potential'.  Before discussing the results it is necessary to understand the
main disposition of the various prospects and the epithermal gold model.


Epithermal Gold Model and Caijiaying Prospects

The Caijiaying Project zinc mineralisation is believed to have been emplaced
131-204 million years ago during a volcanic episode that affected ancient, 2.3
billion-year-old metamorphic rocks along a major northeast-trending structure.
The base-metal mineralisation is believed to have been caused by replacement of
certain horizons in the metamorphic rocks by hot metal-bearing solutions from
the volcanic system.  Some gold may have been deposited at this time but the
main gold event is interpreted by recent studies to have occurred later as a
hot-spring or epithermal type of mineralisation towards the end of the volcanic
period.  This type of epithermal mineralisation usually consists of gold and
silver (with minor base-metals) deposited in veins and breccias with extensive
alteration of the surrounding rock by the hot fluid.  Epithermal deposits are a
relatively well understood type of gold deposit, mainly because they are much
sought after as they can contain bonanza grades of gold and/or silver.  An
epithermal specialist, Dr Noel White, visited the Caijiaying area last summer
and confirmed the epithermal nature of the system and it's potential.  Much of
the later work and this description has benefited from his advice.

According to Dr White, the textures exposed at Caijiaying are identical to some
of the most famous low-sulfidation gold deposits globally.  For example:

•    Mc Laughlin, USA (24.3 Mt @ 4.49g/t Au)
•    Hishikari, Japan (3.2 Mt @ 63 g/t Au)
•    Cerro Vanguardia, Argentina (13.0 Mt @ 9g/t Au & 108 g/t Ag)

Dr White also made analogies with epithermal deposits which contain high amounts
of base metals such as Comstock USA (9 million ounces of gold & 223 million
ounces of silver) and Pachua, Mexico (38,000t silver and 6.2 million ounces
gold).

The disposition of the main prospects at Caijiaying with respect to the
epithermal structures also needs to be understood.  The Zone III deposit is 1km
long and occurs 1.25km north of a smaller prospect called Zone II where the
Chinese also discovered significant zinc and silver mineralisation The latter
deposit is adjacent to an important fault structure, the F45 Fault, which
contains the main epithermal vein and alteration textures.

Another deposit discovered by the Chinese is at Zone V, situated 900m northwest
of Zone II (and 1km southwest of Zone III).  This contained some of the best
gold grades recorded in the early Chinese work but unfortunately has since been
mined by local artisinal miners (for about five years) and it is not known how
much of the original resource remains.  The artisinal mining was stopped by the
authorities in 2001 and the workings are likely to be in reasonable condition
thus allowing further work to be done.

Once the epithermal nature of the Caijiaying gold mineralisation was recognized,
CSA conducted a structural study on the area and started assembling regional
information.  This showed the relationships of the known deposits to the F45
Fault and has allowed a working structural model to be developed to explain the
location of mineralisation.  Information on several new gold prospects in the
district was also uncovered which, together with the structural model developed
at Caijiaying, has provided a basis for exploring the known prospects and
targeting future areas for exploration.


In-Mine Potential

As indicated in the previous release on the upgraded resource estimates for Zone
III, we believe that there is good potential to define separate zones of the
deposit for mining gold ore (with minor base metals) within the planned zinc
mine.  There would be obvious cost advantages in this policy.

The gold re-sampling program conducted by Griffin showed that, while most zinc
mineralisation within Zone III contains some low-grade gold (typically 0.25 -
0.5g/t), there are also areas where gold grades are much higher and occur with
only minor zinc.  Table 1 illustrates this point well and shows that there are
many sub-economic zinc intervals that contain significant gold grades (eg note
ZK 317-11 with 2.51m of 0.05% Zn and 5.95 g/t Au).


Table 1.  Caijiaying Zone III composite intersections of more than 2m above 
3g/t gold (All analyses by Chinese except those marked CSA.)


  HOLE           FROM    TO     INTERVAL     Zn%    Pb%   Ag g/t   Au g/t    Grid        Grid     Relative     Comments 
                                                                           Northing     Easting    Level            
                                                                                                                      
  ZK300-06      398.79  400.79         2    0.75   0.04     0.05    6.00   5404.367   40275.397   1111.231      E Zone
                                                                                                                  III 
  ZK307-04      142.67  144.93      2.26    6.64   0.03    16.50    8.97   5213.061   39670.854   1366.204            
  ZK307-25      141.41  143.82      2.41    2.58   0.03    31.00    3.46   5219.118   39665.537   1359.598            
  ZK307-26      154.59  163.04      8.45    2.47   0.04    25.94    7.83   5215.526   39844.814   1333.277            
  ZK311-25      74.62   76.64       2.02    2.10                    3.92   5106.872   39568.509   1414.409            
  ZK311-31      52.77   56.22       3.45    5.83   0.06    17.45    4.60   5106.207   39623.485   1435.473        CSA 
  ZK311-34      148.7   151.3        2.6   11.12   0.02    14.77    9.83   5098.674   39605.849   1348.582        CSA 
  ZK313-09      161.37  164.22      2.85    2.69   0.35    11.68    5.60   5054.816   40151.347   1289.464            
  ZK313-09      185.51  187.58      2.07    1.85      0    21.00    3.67   5054.731   40150.933    1313.21            
  ZK313-13        159     161          2   10.15   0.02    15.00   11.79   5047.357   39636.764   1265.177        CSA 
  ZK313-13        220     222          2    3.90   0.02   5.5.00    6.15   5049.637   39625.553   1325.094        CSA 
  ZK313-14        115     117          2    8.30   0.05    39.00   30.90   5050.705   39568.935   1369.284        CSA 
  ZK313-14        118     126          8    5.74   0.14    31.13   11.65   5050.477   39570.057   1363.394        CSA 
  ZK315-03      159.87  163.8       3.93    7.12   0.06    32.34   13.66   4994.869   39920.181    1319.32            
  ZK315-06      63.53   66.09       2.56    6.08   0.26             7.10   4996.273   39565.545   1415.067            
  ZK315-17      262.94  268.29      5.35    5.40   0.04    18.85    5.08   4989.713   40458.739   1213.397            
  ZK315-22      190.31  192.76      2.45    5.48   0.02    68.70    7.33   4993.855   40030.205   1287.815            
  ZK315-26      167.46  170.45      2.99    4.25   0.02    16.00    3.75   4994.703   39875.424    1312.37            
  ZK315-27      323.63  327.33       3.7   10.31   0.02    36.24    8.04   4987.314   39888.739    1159.74            
  ZK315-33      501.75  504.05       2.3    1.31   0.30    46.00    4.34   4983.533    40570.73    980.716            
  ZK315-35      278.29  280.49       2.2    0.10   0.03    35.00    3.75   4991.327   40405.788   1198.174            
  ZK317-11      259.87  262.38      2.51    0.05   0.10    12.00    5.95    4949.14   40238.974   1211.198            
  ZK319-02      361.95  364.89      2.94    3.84   0.01     8.50    3.10   4888.535   40287.659   1111.805            
  ZK319-10      205.35  207.95       2.6    4.47   0.02    21.00    3.01   4893.527   39922.811   1270.813            
  ZK319-12      229.98  235.42      5.44    5.92   0.05    23.97    6.37   4890.934   39850.377   1247.287            
  ZK319-16      289.19  293.09       3.9    3.51   0.52    26.41    6.73   4887.106   39692.391   1190.234            
  ZK319-16      295.24  297.54       2.3    5.00   0.40    55.04    4.81   4886.871   39693.548   1185.118            
  ZK319-16      284.72  287.12       2.4    1.02   0.28    41.50    3.27    4887.34    39691.24    1195.32            
  ZK319-17      198.39  202.09       3.7    5.38   0.19    18.19    5.71   4891.372   39633.132   1281.015       


The new geological interpretation that derived from last summer's drilling, and
which has resulted in such a large increase in the zinc resource at Zone III,
has also allowed a re-estimation of the gold content.  This was announced in the
last report and is repeated here for completeness sake as it represents the most
advanced and readily accessible of the gold targets within the whole project.
The main results are presented again in Table 2.  Although the total gold
resource estimate includes low-grade gold that occurs within the surrounding
zinc deposit, by considering only those parts above relatively high cut-offs (as
in Table 2), one gets an impression of the potential.


 Table 2.  Caijiaying Zone III Inferred Gold Resource at various cut-off grades


     Gold Cut-Off in      Tonnes                           Grade in g/t Au
     g/t Au

     3                    2,610,000                        6.78
     4                    1,675,000                        8.63
     5                    1,265,000                        9.99



It is difficult to be precise about the gold distribution and quantity because
the drill spacing would need to be closer for gold resource estimation.
However, a recent study has shown that in general, the higher gold grades occur
beneath the best zinc zones and the best gold mineralisation appears to be at
the south end of the deposit.  Therefore the ideal plan is to further test the
gold zones while mining the upper zinc-rich parts.  Since drilling more than a
few holes from the surface to confirm these targets would be prohibitively
expensive, it is planned to wait until they can be drilled more effectively and
cheaply from underground.  A preliminary plan has now been drawn up to achieve
this which involves putting in a branch off the main decline as it is being
driven down towards the first zinc mining area.  Underground drill rigs can then
be used on the branch decline to commence gold exploration well ahead of
commencing zinc production.



Near-Mine Potential

The most obvious near-mine target is the 1.2km long area between Zones II and
III.  Now that the orientation of the Zone III mineralisation is understood to
trend grid north-south, it is reasonable to expect that it will continue across
the intervening ground and link up with Zone II which was already known to have
this orientation.  It is also reasonable to expect that it will contain
significant gold potential like at Zone III.  This area has been poorly tested
by previous Chinese drilling, particularly since most of holes were, with the
benefit of hindsight, oriented the wrong way.  Despite this, hole ZK 223-03
intersected a combined interval of 93m at 3.68%Zn, 700m south of Zone III which
indicates the potential (most of core not analysed for gold).

Like the Zone III gold drilling, the Zone II - III target needs initial surface
testing to prove the target and it can then be infill drilled by a combination
of surface and underground exploration to reduce cost.  Based on these
recommendations, Griffin now plans to undertake the first surface stage of this
program next spring.

Further evaluation of the Zone II deposit is also warranted as it could support
a separate zinc mine which would provide underground access to both zinc and
gold targets in this area.  For instance a combined thickness of 33.37m at 8.06%
Zn in one hole (ZK200-03) and a high silver value of 9.3m at 285 g/t Ag recorded
in a surface trench demonstrate this potential.

Some further underground evaluation of the Zone V deposit is also justified to
determine how much ore remains after the artisinal mining period.  It contained
some of the best gold values discovered by the Chinese as indicated in Table 3.
CSA has already made a preliminary underground survey of this mine when it was
being mined.  This helped understand the orientation of mineralisation in the
area and like at Zone III, further work would best be done by underground
drilling.


Table 3.  Caijiaying Zone V composite intersections of more than 2m above 3g/t 
gold (All analyses by Chinese)


  HOLE           FROM     TO     INTERVAL  Zn%   Pb%    Ag g/t   Au g/t    Grid        Grid       Relative   Comments 
                                                                         Northing     Easting      Level
              
  CM500(S)       40.5    43.7       3.2   11.8  11.73   546.81   27.51   4049.998   38734.529   1381.279   Underground
                                                                                                           channel
                                                                                                           sample 
  ZK10          87.11   89.45      2.34   4.65   0.47    85.77   12.97    4085.22    38634.42    1393.31              
  ZK500-03      217.41  220.16     2.75   0.34   0.17    10.00    5.14   4100.869   38587.916   1272.934              
  ZK500-04      188.57  190.57      2.0   4.51   1.32    46.66   10.07   4095.421   38610.818   1303.275              
  ZK500-14      338.88  342.43     3.55   2.10   1.52    49.25    3.05   4107.209    38568.77   1154.978              
  ZK504-03      357.28  359.36     2.08   0.37   0.10     4.08    6.95   4146.925     38770.8   1116.336              
  ZK515-01      240.9   242.98     2.08   0.66   0.51    45.00    3.85   3716.166   38415.652   1220.223   W Zone V  


Regional Potential

The regional potential of the Caijiaying area is also considered very good,
particularly for gold and silver.  The areas that are considered under this
heading are all associated with the important F45 Fault and are contained within
Griffin's surrounding exploration licence of 56 km2 as well as the relevant
parts of the original 11.3 km2 licence which contains the known deposits.  These
licences cover 16.5km strike length of the F45 Fault.

Previous work along the F45 Fault by the Chinese consisted of shallow trenching
and some base-metal holes that occur close to it.  However they did not
intersect any gold at surface (a typical feature of epithermal systems) but the
potential is indicated by one of the nearby drill holes (ZK 207-06; 75m north of
the fault) which intersected 4.47m at 5.53 g/t Au (from 379.5m; hole not
systematically assayed).

As mentioned above, the F45 Fault target has now been recognized as a major
epithermal structure.  Last summer Griffin mapped two main zones of epithermal
veining each covering 5 km length by 1km width associated with the fault and
separated by a large valley just west of the Caijiaying deposits.  A
shallow-soil, bulk-leach extractable gold (BLEG) survey was conducted over the
entire area (also last summer).  Together with results from an earlier
orientation survey, and despite the fact that the soil is not a very suitable
sampling medium (commonly at least 50m of wind-blown sand), the surveys
successfully defined two large anomalous gold areas coincident with the mapped
veins.  The western target area contains some values over 8 times background
(3.98 ppb Au against a local background of <0.5) whereas the eastern one, which
includes the Zone II area contains values up to 20 times background (14.63 ppb
Au).

In an effort to further define the gold anomalies, 30 deep-overburden drill
holes were drilled last summer to try to define more precise targets at the base
of the overburden where it was hoped there would be a residual soil preserved.
Unfortunately, the majority of the holes did not find any better sampling medium
at depth so no systematic pattern emerged.  However, in the western zone values
of up to 9.5ppb Au were recorded above bedrock.  In the eastern zone, only five
holes were drilled, two 500m east of Zone II, two 1.25km west of Zone II and a
further hole in the valley.  All the holes obtained anomalous basal residual
soils except the one in the valley.  The best was a value of 64ppb Au west of
Zone II.

In the opinion of Dr Noel White, the epithermal target zones should occur within
a depth of between 100-250m and rather than continue with only partially
successful deep-overburden drilling, a survey of reverse-circulation drill
testing has been recommended for thorough testing of the large target areas.


Conclusions

Specific conclusions that can be drawn are as follows:

  • Last summer's gold exploration program has confirmed the epithermal nature
    of the gold and silver mineralisation at Caijiaying,
  • The mineralisation has many features in common with world-class epithermal
    districts elsewhere,
  • The work has defined numerous targets at various stages of definition
    giving confidence in the objective of long-term gold production in parallel
    to zinc production, and
  • The first target can be readily tested within the planned zinc mine and,
    if successful, the same infrastructure could be used for development,
    resulting in very low-cost production.


Although the Caijiaying Project is being developed primarily for its zinc
resources, there are more gold targets in the area than there are known areas of
zinc mineralisation, albeit at a less advanced stage of definition.  Therefore
there is a high probability that a future emphasis on gold/silver exploration
will be successful.

Neither the author nor any staff member of CSA has any beneficial interest in
Griffin other than the provision of normal fee-paying professional services.


Yours faithfully



____________________________
Rupert W A Crowe
FAusIMM, MIAEG
Managing Director


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