Preliminary Results

Griffin Mining Ld
16 May 2006



                                 16th MAY 2006



                        PRELIMINARY STATEMENT OF RESULTS
                       FOR THE YEAR ENDED 31 DECEMBER 2005


Griffin Mining Limited ('Griffin' or 'the Company') has today published its
results for the year ended 31 December 2005.



Highlights:



•         Successful commissioning of the Caijiaying Zinc-Gold mine in China in
          July 2005

•         First profit from operations in 2005 of US$426,000 (2004 loss restated
          US$1,557,000), and a consolidated profit for the year of US$311,000 
          (2004 loss restated US$111,000)

•         Operating profit of US$1,283,000 in the six months to 31 December 2005

•         Significant increases in production and recovery rates

•         Ongoing exploration programme to investigate further zinc and gold
          mineralisation

•         Continued evaluation of further economically justifiable acquisitions



Chairman's statement:



The Company has successfully developed, built, commissioned and now operates
very profitably, the Caijiaying Zinc-Gold mine in the People's Republic of China
(the 'PRC'). This is a landmark achievement for the Company, the mining industry
and the PRC.



At Company level, the Caijiaying mining operations guarantee the long-term
financial success of Griffin. This financial success has been even further
enhanced by the dramatic rise in the price of commodities, and in particular,
the extraordinary rise in the price of zinc. The Company's feasibility study was
commissioned using a US$760 a tonne zinc price. Knowing that mining is
essentially a fixed cost business, next year's financial statements should
admirably exhibit what a zinc price of US$3,300 a tonne can do for the financial
performance of the Company.



Of course, this is just the beginning. With no debt on the balance sheet, no
hedging commitments and a fully built and operating processing plant at
Caijiaying located adjacent to a long life ore body, the financial future of the
Company has been well secured. However, the Company remains fully focused on
generating even greater returns for its shareholders. This will be achieved in
three major ways:



 1. A continuing drive to expand the throughput and, ipso facto, the amount of
    zinc metal being generated by the Caijiaying processing facilities. The
    plant was designed and built to process 200,000 tonnes of ore per annum.
    Within seven months, the Company has already increased throughput by 50% and
    is currently processing approximately 300,000 tonnes of ore on an annualised
    basis. A striking achievement by the Company. Needless to say, the Company
    continues to drive to increase throughput even further.



 2. As evidenced by the announcements made by the Company during the year, the
    exploration potential of the greater Caijiaying area improves every day as
    we seek to discover the mysteries that Mother Nature has hidden beneath the
    surface. As this is written and spring rears its head, an RC drill rig has
    been mobilized at Caijiaying to begin drilling the epithermal gold targets
    south of Zone II. Furthermore, the Company has approved the driving of
    another decline into Zone II, from the base of which the Company has
    commissioned a significant underground drilling programme to investigate
    further zinc and gold mineralisation. The Company has every hope that Zone
    II will become a second mine for the Company and an alternative source of
    ore for the Caijiaying processing plant.



 3. The Company continues to investigate and evaluate further potential
    acquisitions. That process has become substantially more difficult by the
    buoyancy of the commodities market which has filtered through to the
    financing of a large number of marginal and uneconomic mineral deposits.
    This will, inevitably, end in tears. In the interim, it has made the
    acquisition of any worthwhile project, of which there are very few,
    prohibitively expensive and incapable of being economically justified. The
    Company continues to move forward on a number of projects which will only be
    consummated if they display the risk reward profile required to generate the
    returns expected by the shareholders of the Company.



My hope is that the Company has repaid the loyalty, patience and financial
commitment of its shareholders over the past eight years. The Company has, and
will continue, to strive to do even better.





Mladen Ninkov

Chairman

16th May 2006





Further information


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

Andrew Smith / Martin Eales                      Telephone: [phone]
Collins Stewart 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).

      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 2005

                      (expressed in thousands US dollars)



                                                                                         2005              2004
                                                                                                       Restated
                                                                                         $000              $000

Revenue                                                                                 6,120                 -
Cost of sales                                                                         (2,440)                 -


Gross Profit                                                                            3,680                 -
Net operating expenses                                                                (3,254)           (1,557)


Profit / (loss) from operations                                                           426           (1,557)
Foreign exchange (losses) / gains                                                       (411)               939
Finance income                                                                            296               507

Profit / (loss) before tax                                                                311             (111)

Income tax expense                                                                          -                 -

Profit / (loss) after tax attributable to equity share owners for the financial           311             (111)
year

Basic and diluted earnings / (loss) per share (cents)                                    0.17            (0.07)




                             Griffin Mining Limited

                           Consolidated Balance Sheet

                             As at 31 December 2005

                      (expressed in thousands US dollars)


                                                                                          2005              2004
                                                                                                        Restated
                                                                                          $000              $000
ASSETS
Non-current assets
Property, plant and equipment                                                           27,070            16,894
Intangible assets - Exploration interests                                                  419                39
                                                                                        27,489            16,933
Current assets
Inventories                                                                              1,620                 -
Other current assets                                                                       947               276
Available-for-sale financial assets                                                         63                27
Cash and cash equivalents                                                                6.663            12,985
                                                                                         9,293            13,288

Total assets                                                                            36,782            30,221

EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital                                                                            1,838             1,773
Share premium                                                                           39,040            36,594
Contributing surplus                                                                     3,690             3,690
Share based payments                                                                       842               509
Investment revaluation reserve                                                               -                 -
Foreign exchange reserve                                                                   215             (143)
Profit and loss reserve                                                               (12,740)          (13,087)
Total equity                                                                            32,885            29,336

Non-current liabilities
Long-term provisions                                                                       372                 -

Current liabilities
Trade and other payables                                                                 3,525               885

Total liabilities                                                                        3,897               885


Total equities and liabilities                                                          36,782            30,221

Number of shares in issue                                                          183,827,731       177,327,731

Attributable net asset value / total equity per share                                    $0.18             $0.17





                             Griffin Mining Limited

                  Consolidated Statement of Changes in Equity

                      For the year ended 31 December 2005

                      (expressed in thousands US dollars)


                         Share       Share   Contributing     Share    Investment     Foreign    Profit    Total
                       capital     Premium        surplus     based   revaluation    Exchange       and
                                                           payments       reserve     Reserve      loss
                          $000        $000           $000      $000          $000        $000      $000     $000

At 31 December 2003      1,352      21,385          3,690         -         (811)       (121)  (12,130)   13,365
Exchange differences         -           -              -         -             -        (22)         -     (22)
on translating
foreign operations
Loss for the year            -           -              -         -             -           -     (111)    (111)
Movement in fair                                                                                   (35)     (35)
value of financial
assets
Issue of share             421      15,209              -         -             -           -         -   15,630
capital
Cost of share based          -           -              -       509             -           -         -      509
payments
Transfer                     -           -              -         -           811           -     (811)        -

At 31 December 2004      1,773      36,594          3,690       509             -       (143)  (13,087)   29,336
Exchange differences         -           -              -         -             -         358         -      358
on translating
foreign operations
Profit for the year          -           -              -         -             -           -       311      311
Movement in fair                                                                                     36       36
value of financial
assets
Issue of share              65       2,446              -         -             -           -         -    2,511
capital
Cost of share based          -           -              -       333             -           -         -      333
payments

At 31 December 2005      1,838      39,040          3,690       842             -         215  (12,740)   32,885









                             Griffin Mining Limited

                        Consolidated Cash Flow Statement

                      For the year ended 31 December 2005

                      (expressed in thousands US dollars)


                                                                                            2005            2004
                                                                                                        Restated
                                                                                            $000            $000

Net cash flows from operating activities
Profit/(loss) before taxation                                                                311           (111)
Foreign exchange losses                                                                      360              93
Finance income                                                                             (296)           (507)
Adjustment in respect of share options                                                       333             509
Depreciation, depletion and amortisation                                                     557               5
Increase in inventories                                                                  (1,620)
(Increase) in other current assets                                                         (671)           (177)
Increase in trade and other payables                                                       2,640             799

Net cash inflow from operating activities                                                  1,614             611

Cash flows from investing activities

Interest received                                                                            296             507
Payments to acquire intangible fixed assets                                                (376)           (557)
Payments to acquire tangible fixed assets - mineral interests                            (6,949)         (5,082)
Payments to acquire tangible fixed assets - plant and equipment                          (3,409)         (4,938)
Payments to acquire tangible fixed assets - other                                            (9)            (17)
Net cash (outflow) from investing activities                                            (10,447)        (10,087)

Cash flows from financing activities
Issue of ordinary share capital                                                            2,511          16,391
Expenses paid in connection with share issue                                                   -           (761)
                                                                                           2,511          15,630

Increase/(decrease) in cash and cash equivalents                                         (6,322)           6,154



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
2005 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 2005 statutory financial
statements upon which the auditors' opinion is unqualified. The results for the
year ended 31 December 2004 have been extracted from the statutory accounts for
that period, which contain an unqualified auditors' report.



3.     Griffin has applied International Financial Reporting Standards (IFRS) to
its 2005 accounts in full.  The adoption of revised IFRS2, covering share based
payments, has resulted in a charge to profit in 2005 of $333,000 and an
adjustment to the 2004 results for a charge to profit and loss of $509,000. The
adoption of revised International Accounting Standard 39 covering financial
instruments has resulted in gains of $36,000 (2004 losses $35,000) being
recognised in respect of the Company's marketable securities held for investment
being taken to equity.



4.     The annual report and accounts for 2005 together with the notice of the
Annual General Meeting to be held on 16 June 2006 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.



5.       The calculation of the basic earnings/(loss) 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.
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
                                                 2005                                 2004
                           Earnings          Weighted   Per share     Loss        Weighted  Per share
                                              average      amount           average number     amount
                               $000         number of                 $000       of shares
                                               shares     (cents)                             (cents)
Basic earnings/(loss)
per share
Earnings attributable           311       180,639,032        0.17    (111)     170,646,361       0.07
to ordinary
shareholders
Dilutive effect of
securities
Options                                     3,677,894                                    -
Diluted earnings/(loss)         311       184,316,926        0.17    (111)     170,646,361       0.07
per share






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