60 St James's Street, London SW1A 1LE, United Kingdom

Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773

E mail: griffin@griffinmining.com

6th September 2011

Interim Statement for the six months ended 30th June 2011

RECORD 6 MONTH PRODUCTION

6 MONTHS PRE-TAX PROFIT OF US$17.9 MILLION

Griffin Mining Limited ("Griffin" or "the Company") is very pleased to publish its interim results for the six months ended 30th June 2011.

Highlights:

·     Increased revenues of $33.9m (2010 $27.0m)

·     Increased operating profit of $15.4m (2010 $11.2m)

·     Increased profit before tax of $17.9m (2010 $8.7m)

·     Increased profit after tax of $13.6m (2010 $6.8m)

·     Increased attributable profit after tax of $8.5m (2010 $2.0m)

·     Increased attributable earnings per share of 4.8 cents (2010 1.1 cent)

·     Reduced overhead costs of $5.5m (2010 $5.8m)

·     Record ore processed of 319,525 tonnes (2010 260,317 tonnes)

·     Record zinc metal in concentrate produced of 16,069 tonnes (2010 15,101 tonnes)

·     Record silver in concentrate produced of 117,036 ozs (2010 105,475 ozs)

Financial and Trading:

The results for the six months ended 30th June 2011 show a pre-tax profit of US$17,871,000 compared to a profit in the six months to 30th June 2010 of US$8,658,000.  There has been an increase in turnover and operating profits despite a slow start in ramping up production at the beginning of the year following the suspension in operations in the later part of 2010.  Although head grades were slightly lower than that in the same period in 2010, record zinc metal production of 16,069 tonnes was achieved in the period.  Gold production of 4,493 ozs was marginally less than that achieved in 2010 of 4,570 ozs, however, gold recoveries and grades have begun to improve significantly.  With the completion of the upgrade of the processing plant to a minimum capacity of 750,000 tonnes of ore per annum, mining and processing rates have stepped up during the period to meet the new processing capacity.

Operating costs have been reduced from $5,829,000 in six months to 30th June 2010 to $5,469,000 in the six months to 30th June 2011 which, with increased gross profits, resulted in increased operating profits of $15,382,000 compared to $11,201,000 in 2010.

The results for the first six months of 2011 have benefited from foreign exchange gains of $2,221,000 (2010 losses $3,061,000) arising as a result of a weakening US dollar against the Renminbi and Sterling. 

Griffin has a 39.2% equity interest in Spitfire Oil Ltd ("Spitfire").  Griffin's share of Spitfire's profits of $28,000 (2010 losses $127,000) have been recognised in the interim results. 

Interest receivable of $228,000 (2010 $149,000) was recorded in the period with Griffin holding substantial cash balances amounting to $74.7m as at 30th June 2011.  This equates to 42.5 cents (26.5p) per share in issue.  With no put options or any other form of hedging in place there were no gains or losses arising on the revaluation of financial instruments (2010 gains $201,000).

During the period, 5,040,000 shares were bought back on market for cancellation at a cost of $4,977,000.

At 30th June 2011, attributable net assets per share in issue amounted to 82 cents (62.5p) compared with 76 cents (47.5p) at 30th June 2010.

In line with previous years and the Company's policy of determining annual dividends at the time of the Company's full year results, the Board of Griffin has not declared an interim dividend.

Chairman's Statement

Chairman Mladen Ninkov commented, "The half yearly results provide clear evidence of the progress which has been made at Caijiaying and the resulting benefits to Griffin and its shareholders.  The potential of Caijiaying has only just begun to be tapped with the recently upgraded processing, increased throughput and  stabilized metal prices.  The Company expects to produce even better results in the second half of the year. 

Nevertheless the Company continues to look to the future.  Constant consideration is given to continuing to increase mining and throughput at Caijiaying.  Work is well advanced towards making an application for a mining licence at the Zone II deposit, just over a kilometre to the south of the existing mine.  Finally, investigations continue in evaluating tenements, mining operations and or mining companies which hold premium mining assets which could add significant shareholder value.  The Company looks forward to progressing these possibilities for the benefit of its shareholders."

Further information

Griffin Mining Limited
Mladen Ninkov - Chairman                               Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director

Panmure Gordon (UK) Limited                                      Telephone: +44 (0) 20 7459 3600

Dominic Morley

Hannah Woodley

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: www.griffinmining.com

Griffin Mining Limited

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Griffin Mining Limited

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Griffin Mining Limited

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