Interim Results - 6 Months to 30 June 1999

GRIFFIN MINING LIMITED
29 October 1999

INTERIM STATEMENT 
OF RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 1999

Griffin has today published its results for the 6 months ended 30 June 1999, a
copy of which is attached. 

Craig Niven, Chairman commented on the results as follows:

'During the six months to 30 June 1999 the Company's core focus has been on
the analytical work necessary to confirm the new geological interpretation of
the deposit in China and the resulting new resource estimate for the deposit.
The work involved CSA Australia Pty Limited, Griffin's geological consultants,
in an extensive exercise which included a variography study undertaken by
Snowden Mining Industry Consultants, the construction of a Datamine block
model and its evaluation by PL Kitto and Associates Pty Limited. This work
allowed Griffin to release a new resource estimate in an announcement on 15th
July this year consisting of:

21.6 million tonnes at 8.87% zinc at a 4% minimum zinc cut off or,

50.7 million tonnes at 5.01% zinc at a 1% minimum zinc cut off

I believe that this announcement represented a major step forward for
Caijiaying and, together with the issue of the new three year exploration
licence to our joint venture company, removed the two key uncertainties which
surrounded the project at the time Griffin first acquired its interest.

In addition to the new resource estimate, work has been undertaken on the
design of a programme of underground development. This programme is designed
to drive into the main part of the orebody at various depths up to 250 metres.
Negotiations with contractors were completed at the beginning of October and
work has now commenced on site. It is designed to provide further information
on the orebody as a critical part of the process in moving forward to
upgrading the resource estimate to proven reserve status. It will also provide
geophysical and geo-technical data for input into mine design work, and bulk
samples for a programme of metallurgical test-work.

On 4th June 1999 the Company announced a placing of new ordinary shares to
raise $500,000. These funds have allowed work to continue on Caijiaying. As
the Company has previously indicated (15th July 1999), other financing
alternatives have been under consideration with our brokers and advisers. I
hope to be in a position to make a substantial announcement as regards funding
within the near future.'


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

 
Consolidated Profit and Loss Account
(Expressed in thousands US Dollars)
                                   
                                         6 months to   6 months to    Year to
                                            30/06/99      30/06/98   31/12/98 
                                           Unaudited     Unaudited    Audited
                                                $000          $000       $000
Income                                   
(Losses) / gains on the disposal 
of investments                                  (141)          135        147
Other income                                       -             -          -
                                                (141)          135        147
                                   
Net operating expenses                          (325)         (295)      (711)
Provisions in respect of continuing operations   (21)          (41)    (1,976)
Release of negative goodwill                       -             -        490

Operating (Loss)                                (487)         (201)    (2,050)
                                   
Foreign exchange (losses)                         (8)           (2)       (10)
Interest receivable                                4             7         31

(Loss) before taxation                          (491)         (196)    (2,029)
                                   
Taxation on ordinary activities                    -             -          -

(Loss) on ordinary activities after taxation    (491)         (196)    (2,029)
                                   
Minority interests                                 -             -        375

(Loss) for the Period                           (491)         (196)    (1,654)
                                   
(Loss) per share (cents)                        (2.3)         (2.1)     (10.0)
                                   
Fully diluted (loss) per share                  (2.3)         (2.1)     (10.0)
                                   

 
Consolidated Balance Sheet
(Expressed in thousands US Dollars)
                                            30/06/99      30/06/98   31/12/98 
                                           Unaudited     Unaudited    Audited
                                                $000          $000       $000
Fixed Assets                                   
Intangible assets                              4,654         5,290      4,344
Tangible assets                                  261           365        263 
                                               4,915         5,655      4,607
                                   
Current Assets                                   
Portfolio investments                             90           356        165
Accounts receivable                               33            18         14
Prepaid expenses                                  43            38         11
Cash and deposits                                457         1,525        408 
                                                 623         1,937        598
Creditors: Amounts falling due within                                    
 one year                                   
Creditors and accruals                          (461)         (180)      (204)

Net current assets                               162         1,757        394
                                   
Negative goodwill                               (288)         (778)      (288)

Total net assets                               4,789         6,634      4,713
                                   
Capital and reserves                                   
Share capital                                  2,316         2,122      2,099
Shares held pending buyback                        -           (86)         -
Share premium                                 12,805        12,667     12,587
Investment revaluation reserve                  (806)         (757)      (911)
Foreign exchange reserve                         270           159        243
Profit & loss (Deficit)                      (10,463)       (8,513)    (9,972)

Equity shareholders funds                      4,122         5,592      4,046
                                   
Equity minority interests                        667         1,042        667

Equity interests                               4,789         6,634      4,713

Attributable net assets per share (cents)         18            33         19
                                   
Number of shares in issue                 22,660,446    21,208,154 20,993,779

 
Consolidated Cash Flow
(Expressed in thousands US Dollars)
                                         6 months to   6 months to    Year to
                                            30/06/99      30/06/98   31/12/98 
                                           Unaudited     Unaudited    Audited
                                                $000          $000       $000
Net cash (outflow) / inflow 
from operating activities                        (66)           47       (246)
                                   
Investing activities                                   

Payments to acquire intangible fixed assets     (320)         (285)    (1,093)
Payments to acquire tangible fixed assets          -            (6)        (7)
Payments to acquire investments                    -             -          -
Payments to acquire subsidiary undertaking         -           (16)       (14)

Net cash (outflow) from investing activities    (320)         (307)    (1,114)

Net cash (outflow) before financing             (386)         (260)    (1,360)
                                   
Financing                                   
Issue of ordinary share capital                  500         1,728      1,728
Expenses paid in connection with share issue     (65)         (345)      (362)
                                                 435         1,383      1,366

Increase in cash and cash equivalents             49         1,123          6

Reconciliation of operating (loss) to net cash (outflow) / inflow from
operating activities

Operating loss                                  (487)        (201)     (2,050)
Interest received                                  4            7          31
Taxation                                           -            -           -
Depreciation                                       2            2           4
Losses / (gains) on sale of investments          141         (135)       (147)
Receipts on the sale of investments               38          182         230
Payments to acquire investments                    -            -           -
Provisions in respect of continuing operations    21           41       1,976
Release of negative goodwill                       -            -        (490)
(Increase) / decrease in debtors                 (51)         124         155
Increase / in creditors                          257           32          57
Other non-cash income,
 including exchange differences                    9           (5)        (12)
Net cash inflow (outflow)
 from operating activities                       (66)          47        (246)

 

Statement of Total Recognised Gains & Losses
(Expressed in thousands US Dollars)
                                         6 months to   6 months to    Year to
                                            30/06/99      30/06/98   31/12/98 
                                           Unaudited     Unaudited    Audited
                                                $000          $000       $000
(Loss) for the period                           (491)         (196)    (1,654)
Unrealised (losses) on investments               105           (40)      (194)
Currency translation differences 
 in foreign currency net investments              27           (11)        72

Total gains and losses recognised in the period (359)         (247)    (1,776)

Notes:

1. This statement has been prepared using accounting policies and presentation
consistent with those applied in the preparation of the statutory accounts of
the Company.

2. Copies of this interim report are being sent to all registered
shareholders.  Additional copies are available from the Company's London
office, Whitehall House, 41 Whitehall, London, SW1A 2BY.

3. Losses per share have been calculated on the basis of the net loss after
taxation of $491,000 and the weighted average number of shares in issue in the
period ended 30 June 1999 of 21,141,109. Share purchase options outstanding at
30 June 1999 to purchase 2,775,000 shares at $0.24 and warrants to purchase
1,250,000 shares at $0.50 which expired on 15 January 1999, were not included
in the computation of diluted earnings per share because the share purchase
option and warrants' exercise prices were greater than the average market
price of the Ordinary Shares.

4. The summary accounts set out above do not constitute statutory accounts as
defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the
UK Companies Act 1985.  The summarised balance sheet at 31 December 1998 and
the summarised profit and loss account, summarised cash flow statement and
summarised statement of total recognised gains and losses for the year then
ended have been extracted from the Group's 1998 statutory financial statements
upon which the auditors' opinion is unqualified. 

5.  Reconciliation of shareholders' funds.
 
                                         6 months to   6 months to    Year to
                                            30/06/99      30/06/98   31/12/98 
                                           Unaudited     Unaudited    Audited
                                                $000          $000       $000
Total gains and (losses) 
recognised in the period                        (359)         (247)    (1,776)
Issue of Ordinary Shares in the period           435         3,094      3,077
Shares bought in                                   -           (86)       (86)
Shares to be issued                                -          (780)      (780)

Net additions to shareholders' funds              76         1,981        435

Opening shareholders' funds                    4,046         3,611      3,611

Closing shareholders' funds                    4,122         5,592      4,046