Preliminary Results

Griffin Mining Ld 30 April 2007 30th APRIL 2007 PRELIMINARY RESULTS RECORD PROFIT US$29.5 MILLION MAIDEN DIVIDEND DECLARED Griffin Mining Limited ('Griffin' or 'the Company') has today published its preliminary results for the year ended 31 December 2006 and declared a maiden dividend of three cents per ordinary share. Highlights: • Record profit before tax of US$29.5 million (2005 US$0.3 million) • Maiden dividend of $0.03 per ordinary share • Substantially increased resource base • Substantially increased throughput • Increased production of zinc metal in concentrate • Further substantial increases in throughput and metal production scheduled for 2007 & 2008 • Initial gold, silver and lead production scheduled for 2007 • Ongoing exploration success • Continued evaluation of further acquisitions Chairman's Statement: It gives me enormous pride and real satisfaction to announce a record annual profit of US$29.5 million for the Company in 2006 and to declare a maiden dividend of US$0.03 per share. The further good news is that Caijiaying continues to rapidly improve. Since commissioning approximately 18 months ago, throughput has doubled from 200,000 tonnes of ore per annum to over 400,000 tonnes of ore per annum. The resource base has increased from 1.2 to 3 million tonnes of zinc metal, from 0.2 to 1.6 million ounces of gold and from 13.9 to 53.7 million ounces of silver. An impressive achievement. And 2007 promises to be an even more exciting year. The Company has announced an upgrade to the Caijiaying mine and facilities to enable the processing of over 500,000 tonnes of ore per annum by the end of 2007 rising to 750,000 tonnes of ore per annum in 2008. The Company has also announced that in 2007 it will begin producing a second concentrate which will contain gold, silver and lead. This will be another significant source of revenue for the Company. Lastly, the exploration programme continues underground with exploration and grade control drilling in zone III, pure underground exploration drilling at zone II in the newly constructed Fox Incline and exciting above ground diamond drilling between zones II and III. Needless to say, the Company continues to endlessly look for further means to grow shareholder value. In that respect, the Company has evaluated a large number of mining projects, predominantly in China. The overwhelming majority of these projects have not met the rigorous geological, metallurgical, mining engineering and financial standards required by the Company. Nevertheless, the Company remains ever hopeful of acquiring such a project at some point in the future Finally, with US$48 million on the Company's balance sheet at the time of writing this statement, no debt, no hedging commitments, continued strong commodities prices and an expanding mining operation at Caijiaying, the future of the Company looks particularly exciting. Maiden dividend A maiden dividend of US$0.03 per share will be paid to shareholders on 6th June 2007. The ex dividend date being 9 May 2007 and the record date 11 May 2007. Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772 Roger Goodwin - Finance Director Griffin Mining Limited Adrian Hadden / Christopher Rollason Telephone: +44(0)20 7523 8353 Collins Stewart Europe Limited Hugo de Salis Telephone: +44(0) 20 7242 4477 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 Griffin Mining Limited Consolidated Income Statement For the year ended 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000 Revenue 42,802 6,120 Cost of sales (8,516) (2,440) Gross Profit 34,286 3,680 Net operating expenses (6,142) (3,254) Profit from operations 28,144 426 Foreign exchange gains / (losses) 789 (411) Finance income 612 296 Profit before tax 29,545 311 Income tax expense (75) - Profit after tax attributable to equity share owners for the financial year 29,470 311 Basic earnings per share (cents) 16.02 0.17 Diluted earnings per share (cents) 15.45 0.17 Griffin Mining Limited Consolidated Balance Sheet As at 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000 ASSETS Non-current assets Property, plant and equipment 32,087 27,070 Intangible assets - Exploration interests 842 419 32,929 27,489 Current assets Inventories 1,104 1,620 Other current assets 1,064 947 Available-for-sale financial assets - 63 Cash and cash equivalents 34,081 6,663 36,249 9,293 Total assets 69,178 36,782 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Share capital 1,841 1,838 Share premium 39,166 39,040 Contributing surplus 3,690 3,690 Share based payments 2,553 842 Other reserves 297 - Foreign exchange reserve 479 215 Profit and loss reserve 16,432 (12,740) Total equity 64,458 32,885 Non-current liabilities Long-term provisions 384 372 Current liabilities Trade and other payables 4,336 3,525 Total liabilities 4,720 3,897 Total equities and liabilities 69,178 36,782 Number of shares in issue 184,061,064 183,827,731 Attributable net asset value / total equity per share $0.35 $0.18 Griffin Mining Limited Consolidated Statement of Changes in Equity For the year ended 31 December 2006 (expressed in thousands US dollars) Share Share Contributing Share Other Foreign Profit Capital Premium surplus Based Reserves exchange and loss Total payments reserve Reserve $000 $000 $000 $000 $000 $000 $000 $000 At 31 December 2004 1,773 36,594 3,690 509 - (143) (13,087) 29,336 Exchange differences on - - - - 358 - 358 translating foreign operations - Net income recognised - - - - 358 - 358 directly in equity - Profit for the year - - - - - - 311 311 Total recognised income and - - - - 358 311 669 expenses in the year - Issue of share capital 65 2,446 - - - - - 2,511 Cost of share based - - - 333 - - - 333 payments Movement in fair value of - - - - - - 36 36 financial assets At 31 December 2005 1,838 39,040 3,690 842 - 215 (12,740) 32,885 Exchange differences on - - - - 264 264 translating foreign operations - Net income recognised - - - - 264 - 264 directly in equity - Profit for the year - - - - - - 29,470 29,470 Total recognised income and - - - - - 264 29,470 29,734 expenses in the year Transfer - - - - 297 - (297) - Issue of share capital 3 126 - - - - 129 Cost of share based - 1,711 - - 1,711 payments Movement in fair value of - - - - - - (1) (1) financial assets At 31 December 2006 1,841 39,166 3,690 2,553 297 479 16,432 64,458 Griffin Mining Limited Consolidated Cash Flow Statement For the year ended 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000 Net cash flows from operating activities Profit before taxation 29,545 311 Foreign exchange (gains) / losses (789) 411 Taxation paid (75) - Finance income (612) (296) Adjustment in respect of share based payments 1,711 333 Depreciation, depletion and amortisation 890 557 Decrease / (increase) in inventories 516 (1,620) (Increase) in other current assets (117) (671) Increase in trade and other payables 811 2,640 Net cash inflow from operating activities 31,880 1,665 Cash flows from investing activities Interest received 612 296 Receipts on sale of investments 63 - Payments to acquire intangible fixed assets (414) (376) Payments to acquire tangible fixed assets - mineral interests (2,829) (6,949) Payments to acquire tangible fixed assets - plant and equipment (2,504) (3,409) Payments to acquire tangible fixed assets - other (9) (9) Net cash (outflow) from investing activities (5,081) (10,447) Cash flows from financing activities Issue of ordinary share capital 129 2,511 129 2,511 Increase/(decrease) in cash and cash equivalents 26,928 (6,271) Cash and cash equivalents at beginning of the year 6,663 12,985 Effects of exchange rate changes 490 (51) Cash and cash equivalents at beginning of the year 34,081 6,663 Notes: 1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Company. 2. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the UK Companies Act 1985. The summarised consolidated balance sheet at 31 December 2006 and the summarised consolidated income statement, consolidated statement of changes in equity and the summarised consolidated cash flow statement for the year then ended have been extracted from the Group's 2006 statutory financial statements upon which the auditors' opinion is unqualified. The results for the year ended 31 December 2005 have been extracted from the statutory accounts for that period, which contain an unqualified auditors' report. 3. The annual report and accounts for 2006 together with the notice of the Annual General Meeting to be held on 15 June 2007 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company's London office, 6th Floor, 60 St James's Street, London, SW1A 1LE. 4. The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below: 2006 2005 Earnings Weighted Per share Earnings Weighted Per amount share Average (cents) Average amount number of number of (cents) $000 shares $000 shares Basic earnings per share Earnings attributable to ordinary shareholders 29,470 183,931,840 16.02 311 180,639,032 0.17 Dilutive effect of securities Options 6,820,134 3,677,894 Diluted earnings per share 29,470 190,751,974 15.45 311 184,316,926 0.17 This information is provided by RNS The company news service from the London Stock Exchange

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