£1.3m Raised by Share Placing

Griffin Mining Ld
10 November 1999



PLACING


Griffin Mining Limited ('Griffin') today announces that it has raised £1.3
million by a placing of 14,477,105 new ordinary shares at 9 pence each
arranged by the Company's broker, Charles Stanley & Company Limited. As part
of the placing arrangements existing shareholders are to be issued with up to
2,099,377 warrants exercisable at 9 pence per share on or before 13 January
2000, which would, if fully subscribed, result in the Company receiving a
further £188,944. A full prospectus is being issued today.

The key points relating to the placing are as follows:

- 14,477,105 new ordinary shares at 9 pence each. 

- Up to 2,099,377 Warrants to be issued to existing shareholders on a 1:10
basis. Each warrant to entitle the holder to subscribe for one new ordinary
share at 9 pence on or before 13th January 2000

- Funds to be principally applied in funding phase I of a bankable feasibility
study at the Company's Caijiaying zinc project in China

The timetable for the placing is as follows:

Expected date of commencement of trading of new ordinary shares on AIM      
Wednesday 17th November 1999
       
Record date for eligibility for Warrants: Close of business Tuesday 9th
November
       
Existing ordinary shares commence dealing ex Warrants: 10th November 1999


Background to and reasons for the Placing

Griffin first acquired its interest in the Caijiaying zinc-gold project in
China in November 1997 and since that time financial and management resources
have been concentrated on this project. During 1998, Griffin designed and
completed a work programme, which included approximately 5,000 metres of
diamond drilling, re-logging and re-assaying of part of the previously drilled
98,000 metres of core.  This resulted in the production of a new geological
interpretation by the Company's geological consultants, CSA Australia Pty
Limited ('CSA'), and a recalculation of the resource which was announced on 15
July 1999.

On 12 February 1998, new mining regulations were promulgated in China. These
new regulations have improved the legal environment for foreign companies
operating in the natural resource sector. Griffin was informed in October 1998
by the Vice Minister of the Peoples Republic of China Ministry of Land and
Natural Resources that the Company's Chinese joint venture company, the Hebei
Hua'Ao Development Company Limited ('HSAMDC'), was the first foreign
controlled joint venture company to be issued with a new three year
exploration licence for a hard rock deposit under the new mining regulations.

The results of the 1998 work programme, together with the positive
developments in the Chinese legal environment, have confirmed the Board's view
that Caijiaying is capable of being developed into a major mine and that the
project justifies committing the additional funds required to produce a full
bankable feasibility study.

The net proceeds of the Placing will in part be applied in funding the
completion of phase one of this feasibility study. The first phase of the work
will comprise two distinct elements.  The first element comprises office based
desk top studies in order to guide the second element of phase one development
and phase two development.

The first element of phase one will consist of:

- a new variography and optimal drill hole spacing study
- Datamine block model resource estimations study
- a resource evaluation using pit optimisation software
- preliminary life-of-mine scheduling and financial modelling
- a full metallurgical review with recommendations
- underground exploration development design

The second element of phase one will consist of an underground development
programme to extend an existing decline on the licence area to a vertical
depth of 250 metres. Horizontal drives of approximately 1,600 metres have been
designed off the extended decline to intersect the orebody in the starter pit
area in the south of zone III of the Caijiaying licence area. The programme
has been designed to confirm visually the new ore block interpretation, obtain
a bulk sample for metallurgical tests and conduct a structural/geotechnical
survey. It will also enable more cost-effective in-fill drilling to be done
underground instead of from the surface. Contracts have been signed with local
contractors to perform the excavation work and this work commenced on site in
October 1999.

Additionally, base line environmental work will be commenced and detailed
studies of the freight and power requirements of Caijiaying will be completed.


Phase two will include the commissioning and completion of the full bankable
feasibility study estimated to require additional funds of approximately £2m,
and will include:

- additional surface and underground drilling
- proven reserve definition
- bulk sampling and metallurgical testwork
- process plant design
- mine design
- site infrastructure
- completion of the environmental study
- economic operating feasibility study
- capital cost definition

The process of finalising the full bankable feasibility study will involve the
appointment of a major firm of independent engineering consultants to report
on the project feasibility to bankable standards. 

It is anticipated by the Board that the full bankable feasibility study could
take up to twenty four months to complete. Once completed, the Board considers
that there will be essentially three options for Griffin. It could itself seek
to raise the project finance necessary to bring Caijiaying into production, an
industry buyer could be sought for the whole of Griffin's interest in
Caijiaying, or alternatively, an industry partner could be introduced at the
project level.


The Placing

The Placing is not being underwritten. The New Ordinary Shares will rank pari
passu with the existing Ordinary Shares other than the right to be issued with
the Warrants.  Application will be made for the New Ordinary Shares to be
admitted to trading on AIM and to the Canadian Dealing Network. It is expected
that the New Ordinary Shares will be admitted to trading on AIM and the
Canadian Dealing Network on or around 17 November 1999.


The issue of Warrants

All Shareholders will be issued with a certificate in respect of their pro
rata entitlement to the Warrants. This entitlement is calculated as:

1 Warrant for every 10 Ordinary Shares held at close of business on the Record
Date.

The total number of Warrants which may be issued is 2,099,377 Warrants. Each
Warrant will entitle the holder to subscribe for one Ordinary Share at a price
of 9 Pence per Ordinary Share at any time on or before the subscription date
of 13 January 2000.  Fractions of Warrants will not be issued. 

It is not the Director's intention for application to be made for the Warrants
to be admitted to trading on AIM or the Canadian Dealing Network.

No consideration is payable in respect of the issue of the Warrants, which is
conditional on the prior completion of the Placing.  The Ordinary Shares to be
issued on exercise of the Warrants will rank pari passu with the existing
Ordinary Shares.  Application will be made for the Ordinary Shares to be
issued on exercise of the Warrants to be admitted to trading on AIM and the
Canadian Dealing Network. 


Further information

Craig Niven (Chairman) - United Kingdom                                      
Telephone: + 44 (0)207 321 2077

Charles Dampney - Charles Stanley                                           
Telephone; + 44 (0)1273 486244

Griffin Mining Limited's shares 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).

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