GFM Griffin Mining Limited

RNS No 1342h
GRIFFIN MINING LIMITED
17th April 1998



GRIFFIN MINING LIMITED ("Griffin")

EXERCISE OF CALL OPTION OVER 50% OF CHINA ZINC PTY LIMITED AND ISSUE OF
3,600,000 NEW ORDINARY SHARES IN GRIFFIN MINING LIMITED

Griffin has exercised its call option over the remaining 50% of the issued
share capital of China Zinc Pty Limited ("China Zinc") that it does not
already own. The consideration payable on the exercise of the option is the
issue of 3,500,000 new ordinary shares in Griffin to Everton Overseas Holdings
Inc. These consideration shares have today been issued, fully paid. In
addition a further 100,000 new ordinary shares in Griffin are being issued to
Global Emerging Markets Ltd ("GEM") in consideration of the introduction of
China Zinc to Griffin by GEM.  Following these share issues there will be
14,008,154 ordinary shares of Griffin in issue. Everton Overseas Holdings Inc
will be the registered holder of 3,500,000 ordinary shares representing 25.0%
of the issued share capital as enlarged following the exercise of the option.

Griffin has received the consent of the Bermuda Monetary Authority for the
issue of the 3,500,000 consideration shares. Application will be made for the
admission of 3,600,000 new ordinary shares to trading on AIM. Listing
Particulars as required by the Rules of the Luxembourg Stock Exchange will be
issued in due course and application made for listing of 3,600,000 new
ordinary shares on the Luxembourg Stock Exchange.

INFORMATION ON CHINA ZINC

China Zinc is an Australian company which has been engaged in the development
of the Caijiaying zinc-gold project in China ("the Caijiaying project")
through its 60% local joint venture entity: Hebei Sino Australian Mining
Development Company Limited ("HDL").  The joint venture is a contractual joint
venture that was established in 1994 with the Zhangjiakou City People's
Government and the Hebei Bureau of Geology and Mineral Resources Exploration
and Development ("MGMR"). 

The Caijiaying project is a polymetallic deposit located 200 km north west of
Beijing in China. In a pre-feasibility study commissioned by China Zinc,
Bateman Kinhill proposed an open pit mine to exploit a mineable reserve of
27.4 million tonnes containing 6.87% zinc. There are also significant amounts
of gold, silver, lead, gallium and other metals that Griffin believes can be
economically recovered in an open pit mining operation. Bateman Kinhill's
study proposed a process plant capable of producing 123,000 tonnes of
contained zinc metal per annum with gold and silver credits over a 13.7 year
mine life. This proposal was based on the resource in Zone III where most of
the exploration work has been concentrated.  However, the project area
comprises six zones in total. Griffin believes that at least two of these
additional zones are highly prospective and will be undertaking additional
exploration work with a view to extending the total Caijiaying resource
estimates.

Further information:

Craig Niven (Chairman) - Griffin Mining Limited                               
               Tel: 0171-321-2077
       
Stephen Goschalk - English Trust Company Limited                              
      Tel: 0171-608-0888

Griffin Mining Limited was registered in Bermuda in 1988 and its shares and
warrants are listed on the Luxembourg Stock Exchange, 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) (page JPJA), Bloomberg (symbol GFM LN), ICV Topic
(*1180) QST/Quotron (NTRACK). The share price is also published daily in the
Financial Times and London Evening Standard. The Company's news releases are
available through Canadian Corporate News' Internet Home Page:
htp://www.cdn-news.com    


END

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