Drilling Results from Caijiay

RNS Number : 9441X

Griffin Mining Ld

15 December 2010

Griffin Mining Limited

New Drilling Results from Caijiaying

15^th December 2010

Highlights:

· Currently Mined Zone III Open in All Directions

· New Zone II Resource Expected

Griffin Mining Limited ("Griffin") is pleased to announce some of the latest drilling results from its 2010 drilling programme at Zone III and in the area linking Zone II & III approximately 1.5 km south of Zone III at the Caijiaying Zinc-Gold Mine. This drilling has provided additional data for a revised resource estimate which is expected to significantly increase the mineral resources at Caijiaying. In addition, the new resource at Zone II, which is an extension of that existing deposit being mined at Zone III, may allow for a significant expansion in mining activities at Caijiaying in the future.

Significant results from Zone III include:

24.52 metres @ 13.3% Zinc, 0.9% Lead 76.26% Silver & 2.36 g/t Gold

35.55 metres @ 10.3% Zinc, 0.3% Lead 62.57% Silver & 0.3g/t Gold

26.0 metres @ 8.5% Zinc, 0.6% Lead 71.86% Silver & 0.204 g/t Gold

29.24 metres @ 7.7% Zinc, 0.6% Lead 57.45% Silver & 0.13 g/t Gold

59.8 metres @ 6.2% Zinc, 0.2% Lead 22.48% Silver & 1.41 g/t Gold

61.4 metres @ 5.1% Zinc, 0.1% Lead 22.63% Silver & 1.51 g/t Gold

29.6 metres @ 7.0% Zinc, 0.8% Lead 32.15% Silver & 1.97 g/t Gold

20.0 metres @ 7.1% Zinc, 0.1% Lead 17.68% Silver & 1.48 g/t Gold

27.9 metres @ 5.9% Zinc, 0.2% Lead 21.02% Silver & 0.28 g/t Gold

27.5 metres @ 5.3% Zinc, 0.5% Lead 29.55% Silver & 0.79 g/t Gold

28.7 metres @ 5.0% Zinc, 0.1% Lead 55.52% Silver & 2.32 g/t Gold

17.08 metres @ 6.0% Zinc, 0.1% Lead 35.44% Silver & 1.18 g/t Gold

Significant results from Zone II & III linkeage area include:

34.0 metres @ 4.0% Zinc, 0.2% Lead 20.17% Silver & 0.09 g/t Gold

22.0 metres @ 4.0% Zinc, 0.3% Lead 10.61% Silver & 0.11 g/t Gold

8.0 metres @ 7.1% Zinc, 1.3% Lead 30.38% Silver & 0.11 g/t Gold

Drilling activity was increased in 2010 with up to six rigs operating underground at Zone III and three rigs operating on the surface between Zone II and Zone III.

On going step-out and infill underground drilling has continued to extend the Zone III mineralisation in all directions and remains open to the north, south and at depth. Importantly, some of the thickest and highest grade intercepts to date have been returned from the deepest drilling which indicates that Zone III maintains continuity with depth, potentially strengthening in areas such as Qing Long Lode.

Drilling from surface in the area between Zones II and III intersected a number of new zones of mineralisation and extended other previously identified zones. All of the surface drilling data between Zone II and Zone III will be incorporated into a new Zone II mineral resource estimate. Mineralisation at Zone II remains open to the north and at depth. The positive results from the 2010 surface drilling programme have increased confidence that Zone II and Zone III are one continuous area of mineralisation.

Highlights of the drilling programmes are as follows.

hole ID	From	To	Interval	Zn	Pb	Ag	Au	Target
	meteres	meteres	meteres	%	%	g/t	g/t
UGCJY-1865	54.2	114	59.8	6.2	0.2	22.48	1.41	Qing Long Deeps
UGCJY-1869	56.7	118.1	61.4	5.1	0.1	22.63	1.51	Qing Long Deeps
Including	93.8	98	4.2	14.9	0.2	30.95	0.17	Qing Long Deeps
Including	113	118.1	5.1	21.5	0.3	61.49	1.46	Qing Long Deeps
UGCJY-1641	122.3	139.38	17.08	6.0	0.1	35.44	1.18	Qing Long South
UGCJY-1589	96.81	126.05	29.24	7.7	0.6	57.45	0.13	Qing Long South
UGCJY-1589	82.56	91.67	9.11	7.8	0.3	19.65	0.11	Qing Long South
UGCJY-1699	118.35	146.25	27.9	5.9	0.2	21.02	0.28	Qing Long South
UGCJY-1730	100.09	128.79	28.7	5.0	0.1	55.52	2.32	Inf Resource Deeps
UGCJY-1902	93.4	99	5.6	10.4	0.6	265.43	0.23	Inf Resource Deeps
UGCJY-1807	17	37	20	7.1	0.1	17.68	1.48	Xiao Long East
UGCJY-1888	0	35.55	35.55	10.3	0.3	62.57	0.30	Xiao Long East
RC-166	46	80	34	4.0	0.2	20.17	0.09	Zone II/ Zone III corridor
Including	57	59	2	10.9	0.5	93.00	0.10	Zone II/ Zone III corridor
Including	65	74	9	6.6	0.1	15.10	0.21	Zone II/ Zone III corridor
RC-188	0	16	16	1.7	2.7	110.83	0.23	Zone II/ Zone III corridor
RC-188	32	123	91	2.5	0.6	15.51	0.17	Zone II/ Zone III corridor
RC-188	45	53	8	7.1	1.3	30.38	0.11	Zone II/ Zone III corridor
RC-189	51	73	22	4.0	0.3	10.61	0.11	Zone II/ Zone III corridor
UGCJY-1717	0	29.6	29.6	7	0.8	32.15	1.97	Qing Long
UGCJY-1690	0	27.5	27.5	5.3	0.5	29.55	0.79	Qing Long
UGCJY-1687	0	24.52	24.52	13.3	0.9	76.26	2.36	Qing Long
UGCJY-1599	33	59	26	8.5	0.6	71.86	0.204	Ju Long

With the recommencement of mining, underground drilling will also recommence, targeting Qing Long South, Qing Long Deeps, Ju Long North and Xiao Long East lodes. Underground drilling will undertake infill and resource definition drilling within Zone III. Surface drilling is scheduled to restart in April 2011 and will continue to target the Zone II/Zone III corridor.

The information in this report that relates to the 2010 exploration results and mineral resources is based on information compiled by Mr Luke Marshall BSc Geology, Member AIG. .Mr. Marshall is a full time employee of Hebei Hua Ao Mining Industry Company Limited, a subsidiary of Griffin Mining Limited. Mr. Marshall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

Mladen Ninkov, Griffin's Chairman, commented on these developments as follows: "These new drilling results only confirms what the Company has been stating since drilling began at Caijiaying, that this is a large, mineralized system which the Company has only just begun to understand and which will provide an extraordinarily long life mining operation, which at these commodity prices, will provide returns to shareholders which they so richly deserve. I look forward to announcing further good news in the near future."