GFM Griffin Mining Limited

RNS Number:0100H
Griffin Mining Ld
9 March 2000


EXERCISE OF OPTION BY AUREX AB TO PURCHASE GRIFFIN MINING LIMITED'S INTERESTS
IN BURKINA FASO

Griffin Mining Limited ("Griffin") today announces that Aurex AB ("Aurex") has
exercised its option, as announced on 22nd October 1999, to purchase all
Griffin's interests in exploration and mining licences in Burkina Faso. 

Under the terms of the agreement between Griffin and Aurex, Aurex is acquiring
all of 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 30th June 1999, 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 the sum of $75,000 to exercise its option ( in addition
to the option fee of $50,000 already paid) with a further two elements of
deferred consideration payable. The first element of the deferred
consideration of between $250,000 and $400,000 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. This element of the deferred
consideration is payable in Aurex shares or cash at Aurex's option. Aurex's
shares are listed on the SBI Stock Exchange in Stockholm. 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 at Aurex's
option, calculated at the mid market price of an Aurex share at that time.
 
As described in the Prospectus dated 10th November 1999, a fee is payable to a
third party in relation to the sale of Griffin's Burkina Faso interests. This
is payable in the form of the issue of 100,000 new ordinary shares in Griffin
which will be allotted forthwith, subject to Admission of these new shares to
AIM. Following such allotment and admission there will be 41,003,551 ordinary
shares of Griffin in issue.

Craig Niven Chairman of Griffin commented;

"This agreement with Aurex enables Griffin to focus its mining activities on
its major zinc-gold asset at Caijiaying in China. The deal is a good one for
Griffin against the background of the current gold price. It removes any
requirement for Griffin to fund mine construction in Burkina Faso and leaves
Griffin with real upside when production begins to come through."

Further information

Craig Niven (Chairman) - Griffin Mining Limited                              
Telephone: + 44 (0)207 574 2455

Charles Dampney - Charles Stanley & Company Limited                          
Telephone: + 44 (0)1273 486244

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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