GFM Griffin Mining Limited

RNS No 9909e
GRIFFIN MINING LIMITED
11th January 1999

                            GRIFFIN MINING LIMITED                            
                                                                              
                                                                              
        EXCELLENT ASSAY RESULTS EXTEND CAIJIAYING ZINC-GOLD DEPOSIT           
  
 
Diamond drilling at Griffin Mining Limited's ("Griffin") Caijiaying Zinc-Gold
deposit in China has yielded impressive new results during the 1998 field
program, confirming previous Chinese drilling results and adding significant
upside to the project. In-fill and extension drilling at Zone III, which
comprises the main resource, has confirmed that the mineralised lenses are
orientated more horizontally than the original Chinese orebody model. In
addition, the drilling results demonstrate that the orebody extends further to
the east and south than previously drilled limits.

Initial assay results have been received from 2 of 19 diamond drill holes
completed in the 1998 field season. Assay results returned from in-fill drill
hole 309-03 and extension drill hole 305-01 on the eastern side of Zone III
include best intersections of:


Hole 309-03

18 metres @ 11.98% Zinc and 55 grams per tonne Silver (including 8.1 metres @
20.69% Zinc and 73 grams per tonne Silver)

8.9 metres @ 10.74% Zinc and 32 grams per tonne Silver (including 6.9 metres @
13.16% Zinc and 38 grams per tonne Silver)

8.4m @ 7.75% Zinc and 42 grams per tonne Silver (including 7.2 metres @ 8.57%
Zinc and 43 grams per tonne)


Hole 305-01

11.4 metres @ 19.19% Zinc and 64 grams per tonne Silver (including 6.4 metres
@ 32.93% Zinc and 108 grams per tonne)

Orientation drilling in the central part of the starter pit area of Zone III,
together with detailed re-logging, has confirmed that the ore lenses are more
shallowly dipping than previously interpreted by the Chinese. The new
interpretation of thicker, less steeply orientated lenses improves
between-hole correlation and should positively enhance the resource which
currently stands, as calculated by Bateman Kinhill, at an Indicated Mineral
Resource of 57.8 million tonnes @ Zinc 4.8% Zinc at a 1% Zinc cut-off. This
includes a resource of 27.4 million tonnes @ 6.87% Zinc and 0.5 grams per
tonne Gold which the pre-feasibility study showed could be exploited by open
pit mining.

The 1998 drilling program was managed by Griffin's independent geological
consultants: CSA Australia Pty Limited. All samples are being assayed by
Analabs Pty Limited at its laboratory in Perth, Western Australia.


Exploration drilling

In addition to good results from drilling within Zone III, some limited
drilling was carried out between Zones III and Zone II, over 1 kilometre to
the south of Zone III. Visually estimated grades indicate that mineralisation
occurs over a strike length of over 100 metres from the south of Zone II to
the north. There is strong evidence to suggest this mineralisation may be
linked to that of Zone III which, if confirmed by later work, would greatly
enlarge the resource. Assay results are pending, including gold sampling of
Chinese drill core which had not been previously analysed for gold. It is
expected that there is potential for significant gold intersections outside
those previously included in the resource.


Further follow-up diamond drilling is planned for next season, within and
peripheral to Zone III, between Zones III and II, and also to test other
regional exploration targets.


Work completed in 1998  

Work undertaken on the Caijiaying Project in 1998 included further diamond
drilling within the "starter pit area" of Zone III, detailed orientated
drilling in the central part of Zone III, and some regional exploration drill
holes in Zone II and between Zones II and III. A total of 19 drill holes were
completed for a total of 4,998 metres. A program of re-logging and re-sampling
of previous drill core was also undertaken.

Further detailed results from Griffin's Caijiaying Project's 1998 work program
will be released when CSA Australia Pty Limited has completed its analytical
and verification work. 


Further information

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

Fred Coombes -  Canada                                                        
                         Telephone: + 1 604 681 5225

Griffin Mining Limited's shares and warrants 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) (page JPJA), Bloomberg (symbol GFM LN), ICV Topic
(*1180) QST/Quotron (NTRACK).

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


END

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