GFM Griffin Mining Limited

RNS No 5030d
GRIFFIN MINING LIMITED
22 October 1999

OPTION AGREEMENT WITH AUREX AB IN RESPECT OF GRIFFIN MINING LIMITED'S
INTERESTS IN BURKINA FASO

Griffin Mining Limited ("Griffin") today announces that it has entered into an
option agreement with Aurex AB ("Aurex") in respect of all Griffin's interests
in exploration and mining licences in Burkina Faso. Under the terms of this
agreement, Aurex has been granted a call option over Griffin's entire economic
interests in Societe de Travaux de Recherche et d'Exploitation Miniere et
Compagnie S.A. ("Stremco") and Societe des Mines du Faso S.A ("Fasomine"), the
operating subsidiary companies in Burkina Faso.  At 31 December 1998, the date
of the last published balance sheet, these interests were  reported in the
balance sheet at a  value of $350,000. Aurex has paid Griffin a $50,000 option
fee,  the proceeds from which will be used in meeting ongoing working capital
requirements of Griffin and its subsidiaries. The option remains open for
exercise until 5th March 2000.

If Aurex elects to exercise the option, the exercise price comprises a fee
payable on exercise  and two elements of deferred consideration. The fee
payable on exercise is $50,000 in the event that the gold price is below $280
per oz at the date of exercise, and $75,000 if the gold price is above $280
per oz. Additional consideration is payable of between $250,000 and $400,000,
in cash or Aurex shares. This first element of additional consideration
becomes payable when cumulative gold production on the licence areas reaches
5,000 ozs. The  amount of deferred consideration is set by reference to the
prevailing gold price at the date the 5,000 oz production threshold is
reached. At a gold price of less than $280 per oz the additional consideration
is $250,000; at a gold price of greater than $300 per oz the additional
consideration is $400,000 with a scale operating between $280 per oz and $300
per oz. A second element of  deferred consideration is payable when cumulative
production reaches 200,000 ozs. This is set at 100,000 shares in Aurex or cash
equivalent.
 
Craig Niven Chairman of Griffin commented;

"This deal with Aurex is consistent with the company's strategy of focusing on
our major zinc-gold asset at Caijiaying in China. Aurex is particularly well
placed to develop the licences in Burkina Faso from its existing operational
base in Northern Ghana."

Further information

Craig Niven (Chairman) - United Kingdom                                      
Telephone: + 44 (0) 171 321 2077

Mike Lilwall - Charles Stanley & Company Limited                    
Telephone: + 44 (0) 171 551 0444 

Griffin Mining Limited's shares are quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange (symbol GFM) and traded on the
Canadian Dealing Network in Toronto (symbol GRFM). Corporate information and
share prices can be accessed via the Newstrack Service on Reuters (symbol
GFM.L), Bloomberg (symbol GFM LN), ICV Topic (*1180).

The Company's news releases are available on the Company's web site:
www.griffinmining.com

The Company's news releases can be received via electronic mail by emailing
Roger Goodwin on griffin@griffin mining.demon.co.uk

END

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