Half Yearly Report

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

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

E mail: [email protected]

14th August 2013

INTERIM STATEMENT

for the six months ended 30th June 2013

Below are the interim results for Griffin Mining Limited ("Griffin" or "the Company") for the six months ended 30th June 2013.

Highlights:

· Revenues of $33.7 million (2012: $39.7 million)

· Operating profit of $7.3 million (2012: $16.7 million)

· Profit before tax of $5.8 million (2012: $15.0 million)

· Profit after tax of $4.0 million (2012: $11.4 million)

· Attributable profit after tax of $3.5 million (2012: $7.5 million)

Financial and Trading:

In the six months to the 30th June 2013, throughput at Griffin's Caijiaying Mine increased from 386,313 to 412,799 tonnes to produce in concentrate:

· 19,077 tonnes of zinc (2012: 20,336 tonnes);

· 903 tonnes of lead (2012: 1,364 tonnes);

· 151,921 ounces of silver (2012: 215,773 ounces);

· 3,869 ounces of gold (2012: 3,769 ounces).

Revenues and operating profits were impacted by lower metal prices for all metals produced and lower metal production for zinc, lead and silver resulting from lower mined grades at the Caijiaying Mine.

During the six months to 30th June 2013, the average price received declined from that in the six months to 30th June 2012 for zinc by 7.5%, gold by 5%, lead by 5% and silver by 10%. In addition, during the six months to 30th June 2013, priority was given to extracting the remaining economic mineralization at the upper levels of the Caijiaying Mine prior to being able to access lower levels resulting in a reduction in the zinc head grade of 0.66% from that recorded in the six months to 30th June 2012.

Throughput increased despite mining and haulage being impacted by the Chinese Spring Festival holidays in February 2013 and during the Chinese National Party congress in March 2013 with restricted delivery of explosives.

Progress has been made in improving gold recoveries with the expectation of higher gold recoveries in the second half of 2013.

Increases in costs of sales reflect operational mine development work and increased ore processed. Operating expenses have been reduced as the Group strives to minimise administration costs.

Profits before tax have been impacted by: Foreign exchange losses of $20,000 (2012: $684,000) arising as a result of a stronger US Dollar against Sterling in the period; interest payable on Chinese bank loans of $1,577,000 (2012: $1,385,000); Griffin's 39.2% equity share of Spitfire Oil Ltd's losses of $45,000 (2012: $88,000); and interest receivable of $59,000 (2012: $399,000) with lower interest receipts following the utilisation of cash resources in June 2012 to fund the extension of the local Chinese joint venture licence and purchase of non controlling interests.

Chinese income taxes and withholding taxes of $1,724,000 (2012: $3,617,000) have been charged to profit resulting in profits after tax of $4,035,000 (2012: $11,379,000).

Provision of $584,000 (2012: $3,840,000) has been made for the minority interests in the profit of Griffin's Chinese subsidiary, Hebei Hua Ao Mining Industry Company Limited ("Hua Ao") of 11.2% (2012: 40% to 25th June 2012). Profit attributable to Griffin amounted to $3,451,000 (2012: $7,539,000).

Basic earnings per share were 1.97 cents (2012: 4.3 cents) and diluted earnings per share 1.95 cents (2012: 4.26 cents). At 30th June 2013, attributable net assets per share in issue amounted to 81 cents (2012: 75 cents).

Repatriation of funds from China was achieved, whilst still providing sufficient working capital within Hua Ao, by drawing down an additional $6,297,000 from banking facilities in China which were more than matched by cash balances throughout the Group increasing by $7,740,000 since 31st December 2012.

Application for a mining licence over the Zone II area at Caijiaying and the area between the Zone II and III areas is progressing as expected.

In line with previous years practice and the Company's policy of determining annual dividends at the time of the Company's full year results, no interim dividend has been declared by the Board of Griffin.

Chairman's Statement

Chairman Mladen Ninkov commented, "Although in absolute terms the interim results are disappointing, they should come as no surprise in light of the recently released results by other small to large mineral producers. All miners continue to struggle with maintaining profitability in the light of falling commodity prices coupled with a mainly fixed cost business. Griffin's results have also been further specifically impacted by the scheduling of major mine development work in the first half of 2013 to extract the remaining lower grade mineralization at the highest levels at Caijiaying before accessing the mineralization at lower levels. Assuming commodity prices remain at least constant and no 'Black Swan' event materializes, I expect significantly better results for the second half of 2013."

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

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement of Changes in Equity

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

 (expressed in thousands US dollars)

Griffin Mining Limited

Notes to the Interim Statement

1. These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2012.

2. Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company's London office, 60 St James's Street, London, SW1A 1LE.

3. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 434 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 31 December 2012 and the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated cash flow statement for the year then ended have been extracted from the Group's 2012 statutory financial statements upon which the auditors' opinion is unqualified.

4. The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below: