Griffin Mining Ltd (“Griffin” or “the Company”) has had its formal application for a new mining licence to mine below the 1300 level accepted (number 100000222220090369) and is now working on having that application approved within the statutorily stipulated 28 working day period. A new JORC compliant updated mineral resource estimate will be announced upon the granting of the new mining licence.

Further, the Caijiaying zinc-gold mine has returned to profitability in the quarter ended 30th September 2009 having processed 114,233 tonnes of ore to produce 6,783 tonnes of zinc, 1,351 ounces of gold, 38,019 ounces of silver and 218 tonnes of lead. This follows 33,152 tonnes of ore being processed in June immediately after recommencement of operations following the suspension of production in the first 5 months of 2009.

In further developments, work will shortly commence on improving ventilation and other underground work to facilitate access to the lower levels of the mine in anticipation of being permitted to extract ore from below the 1300 level. Upgrade work continues with the installation of a second primary ball mill, new crushing circuit, tailings dam uplifts and construction of a new tailings dam to facilitate production increases in 2010.

Exploration work is being undertaken with, inter alia, a 950 metre surface drilling programme over the Ershilli Naobao target approximately 2.5 kilometres to the east of the existing mine at Zone III. Underground drilling has recommenced from Zone III, 1.5 kilometres to the south towards the undeveloped ore deposits at Zone II.

Chairman’s Statement

“Although the delays in obtaining a permit to mine below the 1300 level have been frustrating, I have been very happy with the performance of Caijiaying since the recommencement of operations. With the benefit of the maintenance work, cost reviews and ore block re-modelling undertaken earlier this year, performance since recommencement of production, coupled with the increase in the zinc price, has enabled Caijiaying to return to profitability.”