Issue of Equity

Griffin Mining Ld
28 August 2003


                              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]

                                                                28th August 2003


                         PLACING AND GRANT OF WARRANTS

Griffin Mining Limited ('Griffin' or the 'Company') is very pleased to announce
that:

1.         Following the significant institutional demand for the Company's
recent placing of shares announced on 1 August 2003; and

2.         In order to satisfy the continued institutional demand for Griffin
shares; and

3.         In anticipation of a positive outcome to the anticipated feasibility
study over the Caijiaying zinc-gold project;

The Company has decided to put in place sufficient equity funding that would be
required to construct a mine and processing facilities at Caijiaying.

To that end, 12,000,000 new ordinary shares ('New Ordinary Shares') have been
placed with funds managed by RAB Capital Limited to raise £1.68 million (US$2.69
million) before expenses (the 'Placing').  The New Ordinary Shares have been
placed at 14 pence per share and represent 9.4 per cent of the Company's issued
ordinary share capital as enlarged by the Placing. Following the Placing, funds
managed by RAB Capital Limited will have an interest in 17 million ordinary
shares of Griffin representing 13.4% of the Company's issued share capital.

Griffin is currently completing a feasibility study to construct a zinc-gold
mine and accompanying processing facilities at Caijiaying and it is expected
that, subject to the satisfactory outcome of that feasibility study, the net
proceeds of the Placing will be used to fund initial construction work at
Caijiaying prior to the onset of the winter, in particular, portal, ventilation
decline and vertical shaft construction. It is expected that the results of this
feasibility study will be announced in early September 2003.

As part of the Placing, funds managed by RAB Capital Limited have been granted 6
million warrants to subscribe for New Ordinary Shares at a price of 20 pence per
share ('the Warrants') exercisable at any time up to and including 31st August
2005. Assuming all the Warrants are exercised the Company would receive a
further £1.2 million (US$1.9 million) before costs.

The Placing is conditional upon admission of the New Ordinary Shares to AIM.
All the New Ordinary Shares issued in connection with the Placing will rank pari
passu with the existing issued ordinary shares of the Company.  Application has
been made for the 12 million New Ordinary Shares to be issued pursuant to the
Placing to be admitted to trading on AIM.  It is expected that admission of the
New Ordinary Shares will occur, and that dealings in the New Ordinary Shares
will commence, on 3rd September 2003.

Commenting on the placing, Griffin's Chairman Mladen Ninkov said:

'With the anticipated release of the feasibility study for the Caijiaying
zinc-gold deposit in early September, it has become clear that financial
institutions have begun to realize the value of the Company.  Assuming a
positive result for the feasibility study, these funds will allow underground
mine construction to begin sooner than anticipated at Caijiaying and meet the
completion of the above ground processing facilities in early 2005.  All Griffin
shareholders must  be delighted by this development'.

Further information

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

Richard Kauffer / Martin Lampshire
Telephone: [phone]
Charles Stanley & Company Limited

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