Griffin Mining : 2022 Interim Statement

8th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773 E mail: [e-mail]

16th AUGUST 2022

UNAUDITED INTERIM RESULTS for the six months ended 30th June 2022

Griffin Mining Limited ("Griffin" or the "Company") has today released its unaudited results for the six months ended 30th June 2022. It should be noted that all operations at the Caijiaying Zinc-Gold Mine were fully suspended for virtually the whole of the first quarter of 2022 due to the mandatory Governmental suspension of operations directive relating to the 2022 Winter Olympics, subsequent Winter Paralympics and the Chinese New Year holidays.

Highlights:

• Record second quarter zinc production and profitable second quarter.
• Revenues of $34.7 million (uninterrupted 6 months operations to 30th June 2021: $54.1 million).
• Gross Profit of $15.5 million (uninterrupted 6 months operations to 30th June 2021: $25.7 million).
• Profit before tax of $5.4 million (uninterrupted 6 months operations to 30th June 2021: $15.5 million).
• Profit after tax of $3.0 million (uninterrupted 6 months operations to 30th June 2021: $10.3 million).
• Basic earnings per share of 1.73 cents (uninterrupted 6 months operations to 30th June 2021: 5.88 cents).

Financial and Trading:

The results for the six months to 30th June 2022 were impacted by the suspension of operations at the Caijiaying Zinc Gold Mine imposed by the Chinese authorities in the period during, and leading up to, the Winter Olympics and Paralympics at Chong Li and the Chinese New Year Holidays. From 1st January 2022 to 23rd March 2022 no stoping or underground development work was undertaken with processing not restarting until 25th March 2022.

Whilst minimal ore was mined and processed in the first quarter of 2022, the second quarter to 30th June 2022 saw the successful recommencement of operations with record ore mined, hauled and processed resulting in record zinc metal in concentrate production for a quarter since operations began at Caijiaying in June 2005.

Mining and processing have now reached the equivalent of over 1.3 million tonnes of ore per annum, all of which has been extracted from Zone III. Zone II has not yet been placed into production.

Quarterly analysis of the trading results underlines exceptional performance since 25th March 2022:

Ore mined	Tonnes
Ore processed	Tonnes
Zinc in concentrate Produced	Tonnes
Gold in concentrate produced	Ozs
Silver in concentrate produced	Ozs
Lead in concentrate produced	Tonnes
Average zinc price received per tonne	$
Average gold price received per oz	$
Average silver price received per oz	$
Average lead price received per tonne	$
Zinc sales	$000s
Lead and precious metals sales	$000s
Royalties	$000s
Total Turnover	$000s
Cost of sales	$000s
Gross profit (loss)	$000s
Administration expenses	$000s
Operating profit / (loss)	$000s
Interest and other income / (costs)	$000s
Profit (loss) before tax	$000s
Taxation	$000s
Profit (loss) after tax	$000s

3 months to	3 months to 31st	3 months to
30th June 2022	March 2022	30th June 2021
338,790	17,975	277,112
329,390	8,649	275,576
13,189	268	11,645
3,504	1,474	4,080
79,246	168	81,098
345	7	327
2,886	-	2,224
1,788	-	1,684
18.1	-	20.4
2,323	-	2,026
31,104	130	23,878
5,479	256	7,766
(2,198)	(22)	(1,784)
34,385	364	29,860
(15,457)	(3,815)	(15,412)
18,928	(3,451)	14,448
(6,040)	(3,964)	(5,037)
12,888	(7,415)	9,411
(118)	(79)	(4)
12,770	(7,336)	9,407
(2,398)	(2)	(3,082)
10,372	(7,338)	6,325

Despite the suspension in operations in the first quarter of 2022, ore tonnes mined in the first half of 2022 were down only 22.9% on that mined in the first half of 2021 and tonnes processed in the first half of 2022 were down 29.0% on that achieved in the first half of 2021. Zinc metal in concentrate produced was down 32.3% on that achieved in the first half of 2021, gold in concentrate production was down 51.6% on that produced in the first half of 2021 and silver in concentrate production was down 44.3% on that produced in the first half of 2021.

With 338,039 tonnes (30th June 2021 475,785 tonnes) of ore processed, metal in concentrate production in the first six months of 2022 was:

• 13,457 tonnes of zinc ( 30th June 2021: 19,876 tonnes);
• 353 tonnes of lead (30th June 2021: 561 tonnes);
• 80,717 ounces of silver (30th+ June 2021: 144,705 ounces); and
• 3,672 ounces of gold (30th June 2021: 7,584 ounces).

The results benefited from a significant improvement in the market price for zinc with the average price received for zinc metal in concentrate increasing by 31.9% from $2,209 per tonne in the first six months of 2021 to $2,914 per tonne in the first half of 2022. Zinc revenues before royalties and resource taxes in the six months to 30th June 2022 were $31,234,000 (30th June 2021 - $42,102,000). Lead and precious metals revenues were $5,735,000 (30th June 2021 - $15,136,000), with the average gold price received of $1,788 per oz (30th

June 2021 - $1,675) and silver $18.1 per oz (30th June 2021 - $20.4). Metal in concentrate with a potential sales value of over $9m remained unsold at 30th June 2022.

During the six months to 30th June 2022:

• 10,719 tonnes of zinc metal in concentrate were sold (30th June 2021 : 19,876ozs);
• 2,491 ozs of gold in concentrate were sold (30th June 2021 : 6,919 ozs); and
• 44,627 ozs of silver in concentrate were sold (30th June 2021 : 129,990 ozs).

With operations suspended in the first quarter of 2022, costs of sales (mining, haulage and processing) fell by 32.1% from that in the first six months of 2021. Costs of sales in the second quarter of 2022 were in line with that in the second quarter of 2021 despite increased ore mined and hauled..

Administration costs were marginally reduced with a reduction in charges from Griffin's Chinese joint venture partners based upon the profits of Hebei Hua Ao. Otherwise, additional costs were incurred with the appointment of 3 new directors with their associated directors fees, Mr Clive Whiley's appointment as a consultant to the company with his associated consulting fees, annual bonuses awarded by the directors to Keynes Capital and the Finance Director, increased directors and officers liability insurance premiums and the resumption of corporate travel. With the suspension in operations in the first quarter administration costs were contained at Hebei Hua Ao.

Basic earnings per share were 1.73 cents (30th June 2021: 5.88 cents per share). At 30th June 2022, attributable

net assets per share amounted to 149 cents (30th June 2021: 141 cents).

With the suspension in operations in the first quarter of 2022 cash flows used in operations in the period amounted to $4,122,000 (the cash flow generated in the period to 30th June 2021 was $16,818,000). The Griffin Mining Group of companies remains free of any bank loans.

Chairman's Statement

Chairman Mladen Ninkov commented, "What an amazing performance, yet again, by the staff, contractors and orebody at Caijiaying. They all continue to deliver outstanding results, even more impressive in light of the unique environment of generally no operations at Caijiaying during the whole of the 1st quarter and to then come back in the 2nd quarter with record ore mined, hauled and processed, resulting in record zinc metal in concentrate production for any quarter since operations began in June 2005. If anything further needed to be added to that performance, the equivalent of over 1.3 million tonnes of ore on an annualised basis was being mined and processed, all from Zone III. This is without any contribution yet from Zone II. I couldn't be prouder or happier with the Griffin Team and it augurs extraordinarily well for the Company in the second half of 2022 and into 2023."

Further information

GRIFFIN MINING LIMITED
Mladen Ninkov - Chairman	Telephone: [phone]
Roger Goodwin - Finance Director
PANMURE GORDON (UK) LIMITED	Telephone: [phone]
John Prior
Alisa MacMaster
BERENBERG	Telephone: [phone]
Matthew Armitt
Jennifer Wyllie
Deltir Elezi

BLYTHERAY
Tim Blythe	Telephone: [phone]
Megan Ray
SWISS RESOURCE CAPITAL AG
Jochen Staiger	Telephone: [phone]

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

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)

		6 months to		6 months to		Year to
		30/06/2022	30/06/2021	31/12/2021
		Unaudited		Unaudited		Audited
		$000	$000	$000
Revenue	34,749	54,072	121,648
Cost of sales	(19,272)	(28,401)	(63,224)
Gross profit	15,477	25,671	58,424
Administration expenses	(10,004)	(10,209)	(21,499)
Profit from operations	5,473	15,462	36,925
Losses on disposal of equipment	(77)	(26)	(293)
Impairment of intangible fixed assets	0	(2)	(11)
Foreign exchange (losses)	(121)	(7)	(51)
Finance income	107	68	236
Finance costs	(68)	(152)	(404)
Other income	120	63	124
Profit before tax	5,434	15,406	36,526
Income tax expense	(2,400)	(5,148)	(11,150)
Profit after tax
3,034		10,258		25,376
Basic earnings per share (cents)	1.73		5.88		14.53
Diluted earnings per share (cents)		1.62		5.43		13.47