RNS Number:2189O
Griffin Mining Ld
01 August 2003

                             GRIFFIN MINING LIMITED


             1 Berkeley Street, London, W1J 8DJ, United Kingdom
       Telephone: + 44 (0)20 7016 8821  Facsimile:  + 44 (0)20 7016 9124
                       E mail: griffin@griffinmining.com


                                1st August 2003



                    PLACING AND BONUS ISSUE OF WARRANTS



Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce the
placing of 10,416,667 new ordinary shares ("New Ordinary Shares") with
institutional investors to raise #1.25 million (US$2 million) before expenses
(the "Placing").  The New Ordinary Shares have been placed at 12 pence per share
and represent 10.5 per cent of the Company's current issued ordinary share
capital.  The net proceeds of the Placing will be used to further exploration at
the Company's Caijiaying zinc gold project in China and for general working
capital purposes, further details of which are is set out below.


As part of the Placing, Griffin shareholders on the register as at the close of
business on 31st July 2003, are to be issued with up to 6,903,816 warrants to
subscribe for New Ordinary Shares at a price of 12 pence per share ("the
Warrants"), on the basis of one Warrant for every 15 ordinary shares held.  The
Warrants are capable of being exercised at any time up to and including 30th
September 2003.  No application will be made to admit the Warrants to trading on
the Alternative Investment Market of the London Stock Exchange ("AIM").
Assuming all the Warrants are exercised the Company would receive a further
#828,458 (US$1.325 million) before costs.  Warrant certificates will be sent to
shareholders in due course.



Following the Placing there will be 113,973,915 ordinary shares in issue and
assuming all the Warrants are exercised there will be 120,877,731 ordinary
shares in issue.



In addition, in order to satisfy excess demand from placees, Roger Goodwin a
director, together with a former director of the Company, have today exercised,
in aggregate, a total of 1,100,000 options, all at a price of 5p (pursuant to
the Company's unapproved share option scheme) of which Charles Stanley & Company
Limited has placed 820,837 New Ordinary Shares, arising from the exercise of the
options, with institutional investors. Roger Goodwin will use the net proceeds
after tax of the sale of these options, to exercise the remainder of his options
in the Company to receive fully paid shares in Griffin.  The monies received by
the Company pursuant to the exercise of the options will be used for general
working capital purposes.



Following the exercise and partial sale of the options, Roger Goodwin's
interests in the share capital of the Company will be as follows:


Name                Options     New ordinary  Resultant total       Percentage*
                  Exercised  shares retained      of Ordinary
                                                       Shares

Roger Goodwin       800,000          279,163          309,163              0.3%



* This assumes that the Placing and the exercise of options has occurred and is
based on 115,073,915 issued ordinary shares



The Placing is conditional upon admission of the New Ordinary Shares to AIM.
All the New Ordinary Shares issued in connection with the Placing will rank pari
passu with the existing issued ordinary shares of the Company, save for the
entitlement to receive the Warrants.  Application has today been made for the
10,416,667 New Ordinary Shares to be issued pursuant to the Placing and the
1,100,000 New Ordinary Shares to be issued pursuant to the exercise of options
to be admitted to trading on AIM.  It is expected that admission of the New
Ordinary Shares will occur, and that dealings in the New Ordinary Shares will
commence, on 7th August 2003.





Reasons for the Placing



The monies raised from the Placing (together with any monies arising from the
exercise of the Warrants) will be used to fund further exploration at the
Company's Caijiaying zinc gold project in China and, in particular, to commence
an extensive drilling programme to:



*  Test for extensions of the best gold intersections to date in zone III
   by underground drilling from existing workings in the planned mine area; and



*  Seek to extend the known gold and base metals mineralization in zone V
   via surface or underground drilling from existing workings.



Exploration success in any of these areas should add significantly not only to
the current gold and zinc resource at Caijiaying, but should also enhance the
probability that they will be economically extractable due to the proposed
processing facilities to be constructed at Caijiaying.



Griffin is currently completing a feasibility study to construct a zinc-gold
mine and accompanying processing facilities at Caijiaying.  It is expected that
the results of this feasibility study will be announced by 1 September 2003.



Commenting on the placing, Griffin's Chairman Mladen Ninkov said:



"It is heartening to see the support Griffin is now receiving in the
institutional investment community. It has taken a long time but has clearly
been worth the wait. It clearly shows the confidence the wider investment
community now has in the very real progress the Company has made in moving
Caijiaying to production. We now look forward to the results of our feasibility
study by 1st September".





Further information


Mladen Ninkov - Chairman                           Telephone: +44(0)20 7016 8821
Roger Goodwin - Finance Director
Griffin Mining Limited



Philip Davies / Charles Dampney                    Telephone: +44(0)20 7953 2000
Charles Stanley & Company Limited





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: http://
                             www.griffinmining.com/


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IOENKDKKOBKDFON