Chairman's Statement:

2023 proves, beyond any reasonable doubt, that the founding directors of the Company have been proven correct. Contrary to all the naysayers throughout the long years, the Company has established a world class, environmentally friendly mining operation, developed and operated in the People's Republic of China ("PRC" or "China"), on a self-generating cash flow basis, without seeking continual capital from shareholders or incurring debt. Put simply, in the words of Helen Keller, "While they were saying it couldn't be done, it was done."

It is hard to know where to start, the news is so overwhelmingly positive and we are just at the start of the Year of the Dragon!

Financially, record revenues were generated in 2023. The Company and its subsidiaries (together the "Group") recorded

·    Revenues up 54.7% at $146,023,000;

·    Gross profit up 35.5% at $51,842,000;

·    EBIT up 47.3% at $51,863,000;

·    Operating profit up 52.5% at $23,837,000;

·    Profit before tax up 60.3% at $24,486,000;

·    Profit after tax up 97.8% at $15,236,000; and

·    Basic earnings per share up 82.1% at 8.03 cents.

Operationally, a record amount of ore was mined, hauled and processed, with throughput reaching mill design capacity of 1.5 million tonnes per annum. This led, inter alia, to record zinc metal production:

·    Ore mined was up 76.6%  to 1,505,642 tonnes (all from Zone III);

·    Ore processed was up 82.1%  to 1,513,977 tonnes;

·    Zinc metal in concentrate produced was up 79.1% to 56,933 tonnes;

·    Gold in concentrate produced was up 68.2% to 17,052 ounces;

·    Silver in concentrate produced was up 40.1% to 314,677 ounces; and

·    Lead  in concentrate produced was up 64.5% to 1,546 tonnes.

These results are all the more impressive in light of the fact that no ore is yet being delivered  from Zone II, which remains under full speed development. Underground workings, services and the 3^rd Portal all remain under construction and near completion. Grade control drilling continues unabated and the South Ventilation Shaft has been sunk almost 250 metres. Ore extraction from Zone II remains on schedule for the 1^st Quarter of 2025.

Drilling continues in both Zones II and III with a record 7 diamond drill rigs in continual operation. This number of operating rigs is yet another record for the Caijiaying Mine. With the volume and quality of the drilling information being produced, it is our expectation that a new JORC resource will be announced in 2024.

With continuing operational and financial success, it is easy to become complacent and fail to deal with non-financial issues which impact the future viability of the Company. As such, the Company strives to be a fully responsible corporate citizen to all our relevant stakeholders, including our shareholders, employees, contractors, the people of China and the global environment. As such, the Company has committed itself to the generation and use of 100% renewable energy in the next 12 months, one third of which is already generated via the solar farm at the Caijiaying Mine. A further two 6.3MW wind turbines generating a total of 12.6MW of wind power will be constructed within 2.5km of the Caijiaying Mine. Once completed, the Caijiaying Mine will have 18.6MW of renewable electrical capacity at peak generation which exceeds the current 18.1MW peak usage. The Company is currently examining the installation of large-scale battery storage capacity and the purchase of wind or solar energy directly from state owned renewable energy projects in close proximity to the Caijiaying Mine to achieve 100% renewable power at all times regardless of light or wind conditions. I know of no other active mine or operations that can claim to have fully committed to the switch to 100% renewable energy and already be generating a third of its energy from its solar farm.

Inevitably the question then arises how to deal with the excess cash being generated by operations. It was decided by the directors of the Company not only to continue with the on-market share buy-back scheme operated by the Company's Nominated Advisor, Panmure Gordon, but to also undertake an offer for larger blocks of stock held by institutional shareholders through the Company's joint broker, Berenbergs. As such, well over 10 million shares were acquired and then cancelled by 26^th February 2024 at a substantially lower share price than currently quoted. It is expected both methods of buying back the Company's stock will continue in 2024, reducing the Company's shares outstanding and improving the Company's earnings per share. To this end, and although I rarely comment on the Company's share price, it has been pleasing to see the market finally seemingly begin to understand the inherent value of the Company and even perhaps the parlous state of the world mining environment.

In that vein, I believe it appropriate to mention the very recent indicative proposal announcement by BHP in relation to Anglo-American, an attempt by BHP to acquire scarce copper assets. Although this may be a surprise to the market, it is a logical progression of the failure of the capital markets to support the mining industry, and in particular the junior miners, who overwhelmingly discover the orebodies needed to supply the world with the raw products needed for human existence. We have just begun to feel the effects of having rare resources and its expression in rising commodity prices. As Mark Burton at Bloomberg wrote recently, "A successful takeover would make BHP the biggest copper producer with about 10% of the market, but it won't make any difference toward meeting the world's supply needs. Production from existing mines is set to fall sharply in the coming years, and miners would need to spend more than $150 billion between 2025 and 2032 in order to fulfill the industry's supply needs, according to CRU Group……One key challenge is that new mines take years and often decades to build, 'There is a clear and compelling need for additional mine capacity to be brought online,' said William Tankard, principal analyst for base metals at CRU. 'The gauntlet is being laid down at the feet of the miners, and it's going to be exceptionally challenging to deliver."

I should mention that this year marks the 30^th anniversary of Hebei Hua Ao Mining Industry Co Ltd ("Hebei Hua Ao"), the foreign joint venture stock company formed in 1994 to hold the interest in the Caijiaying Mine, the majority interest of which was acquired by Griffin almost 4 years later in 1997/8. Nevertheless, celebrations marking the occasion will be held in China later this year. It is my absolute hope that at these celebrations there will also be an announcement of Hebei Hua Ao converting its legal status to a limited liability company, as mandated in the PRC Foreign Investment Law (Article 42), bringing all the benefits of that legal structure to the parties involved.

All that remains for me to conclude is that the old adage remains as true today as when it was written so long ago by Tacitus and re-imagined by John F Kennedy, "Success has many fathers, but failure is an orphan." An operation of the size, complexity and in the location of the Caijiaying Mine, has depended on, and will continue to depend on, the intelligence, expertise, dedication, discipline and sacrifice of a large number of individuals. I can't and won't name them as to do so would inevitably exclude someone who has deserved to be in that pantheon of champions. Suffice it to say I regularly refer to some current success which rests either on our founding directors' feet, our current operational staff and/or our relatively new directors. All have played or continue to play their vital part and we owe them our sincerest thanks. It needs to be understood by all involved that what they all do is beyond the responsibilities of ordinary corporate employment and it deserves our acknowledgment.

Lastly, and always most importantly, thank you to you, the shareholders and owners of the Company. Everyone can "talk the talk" but few can "walk the walk." It is your capital, patience and continued support which allows the Company to have the stability and confidence to continue to move forward at an ever quicker pace. We will continue to honour the commitment you have all made by moving heaven and earth to give you the returns you so richly deserve.

About Griffin Mining Limited 

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited owns and operates in China, through its 88.8% owned Joint Venture stock company, the Caijiaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals in concentrates. For more information, please visit the Company's website www.griffinmining.com.

Further information

Griffin Mining Limited

Mladen Ninkov - Chairman  Telephone: +44(0)20 7629 7772

Roger Goodwin - Finance Director

Panmure Gordon (UK) Limited               Telephone: +44 (0)20 7886 2500

             Dominic Morley

             Dougie McLeod

Berenberg       Telephone: +44(0)20 3207 7800

                        Matthew Armitt

Jennifer Lee

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

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

Consolidated Income Statement

For the year ended 31 December 2023

(expressed in thousands US dollars)

Griffin Mining Limited

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2023

(expressed in thousands US dollars)