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Peter Hambro Mining (POG)

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Tuesday 31 January, 2006

Peter Hambro Mining

Joint Venture Termination

Peter Hambro Mining PLC
31 January 2006



31 January 2006

                      Chagoyansk Joint Venture Termination

In January 2004 Peter Hambro Mining Plc ("PHM" or "the Group") signed a Letter
of Understanding covering a joint venture in respect of the Chagoyansk property
with Rio Tinto Mining and Exploration Limited ("Rio Tinto").  The Group
initiated and won the auction process for the property following Rio Tinto's
review of the area.  Two years of work were directed towards the confirmation of
the complex E-W trending aero-geophysical anomalies. None of the assay results
received to date are indicative of significant economic gold mineralisation. The
maximum gold grade, in rare isolated samples, reached 0.5-2.3 g/t.

In light of these results, PHM and Rio Tinto have agreed that they will not be
progressing with their proposed joint venture in relation to the Chagoyansk
property. Rio Tinto will reimburse PHM for all exploration expenditure incurred
to date pursuant to agreed annual work programmes and budgets.

A representative from Rio Tinto added:

"I would like to place on record the very good relationships we have developed
in designing and implementing the work programmes, the professionalism shown and
the openness and hospitality that PHM's team extended to us.  We would be more
than happy to work with PHM on other projects in Russia and remain keen to
review other properties that may have the potential to meet Rio Tinto's target
criterion."

Commenting on the announcement, Peter Hambro, Executive Chairman of the Peter
Hambro Mining said:-

"It has been a valuable experience working with Rio Tinto and I am sad that the
joint venture asset did not meet the investment criteria required to continue
work on the asset."

Enquiries:

Alya Samokhvalova, Director of External Communications     +44 (0) 207 201 8900
or Marianna Adams                                           www.peterhambro.com
Peter Hambro Mining

David Simonson or Tom Randell                              +44 (0) 207 653 6620
Merlin





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