RepORT AnD ACCOUnTS 2024

CHAIRMAn'S STATeMenT

It is with an overwhelming sense of "a missed opportunity" that I present to you, the shareholders and owners of Griffin Mining Limited ("Griffin" or the "Company"), the Annual Report and Accounts of the Company for the 2024 calendar and financial year (the "Annual Report").

The "missed opportunity" I refer to was the chance to break all operating and financial records in 2024. The Caijiaying Mine, which had thundered through the first three quarters of 2024 and was on course to mine and process

1.5 million tonnes of ore, came abruptly to a halt on the 11 October 2024 with the unfortunate death underground of an employee of the mining contractor. The ensuing shutdown of all mining, processing and development until the start of 2025 did significant damage to the year's financial results and to underground mine development, which had further repercussions for operations into the first 2 months of 2025.

Nevertheless, such is the strength of the Caijiaying Mine that operations which can be shut down for 3 months can still produce the following financial results:

Amazingly, the Company was still able to generate it's 19th continuous operating profit for the year and it's 18th net profit whilst still holding significant cash balances in China and offshore with no debt on its balance sheet.

Another consequence of the 3rd quarter shut down was the stoppage of all development work in Zone II. That has now recommenced with underground workings, services installation and the South Ventilation Shaft nearing completion. This means that extraction of ore from Zone II will now begin in the last quarter of 2025 when we look forward to a new, large source of ore being available for mining and processing.

I also think it's worth stating that in the current environment of record world gold prices amidst global economic uncertainty, the continued discovery of substantial and significant gold mineralization at the Caijiaying Mine has been tremendously exciting. These are some of the most extraordinary gold intersections many of us have ever seen in our careers. As the Company's announcement on the 15 April 2025 stated:

"Drilling of high-grade gold domains below the existing development at the Caijiaying Mine during 2024-25 continues to deliver exceptional gold intercepts. Drilling is ongoing, testing multiple high-grade gold shoots. Drilling of the Yuan Long high-grade gold domain confirms the down-plunge continuity of this domain below and along strike from existing development, with significant intercepts including:

We excitedly await what further gold drilling will confirm and uncover.

The Company's share buy-back program continued in 2024 with the excess cash generated by operations and

$12,515,000 was expended on the buy-back of ordinary shares during the year, reducing the Company's shares outstanding and seeking to improve the Company's earnings per share.

RepORT AnD ACCOUnTS 2024

I would also like to highlight the quality, commitment and professionalism of the foreign "ex-pat" staff at the Caijiaying Mine. They work in an isolated environment, with huge language and communication challenges and a long time and distance away from their families and friends. This is in addition to the commercial and political challenges of 4 jurisdictional levels of Government structures (County, City, Provincial and Central) running in parallel with a separate Party structure, both having multiple departments reproduced at each level. This is how a death on a Chinese mine site becomes a minimum 3 month shut down or worse rather than a western 48 hour shutdown with an investigation following. In addition, there is the challenge of managing and training semi-professional and non-professional Chinese staff and contractors at the Caijiaying Mine who are substantially less experienced and educated to western mining standards. In summary, our ex-pat staff warrants and demands our respect. I can't name them all but I will mention Paul Benson (Chief Geologist), Wendy Zhang (Caijiaying Mine Chief Financial Officer), Dominic Varley (Planning) and, most of all, John Steel (Griffin Chief Operating Officer), or as we call him, "Superman."

My personal thanks also go to the directors of the Company for their time, effort and interest, including much of the regulatory and audit work that is so tiresome and thankless. In particular, I'd like to thank Clive Whiley who has taken many burdens away from me, which I have very much appreciated, and Roger Goodwin who, in many ways, embodies the Company, always putting the Company before himself. In my younger footballing days, he would definitely have won the "Best Clubman" trophy. Finally, Dal Brynelsen, who's love for the Company and the Caijiaying Mine knows no boundaries. First on a phone, first on a plane, first on the Caijiaying Mine site.

Finally to you, the shareholders and owners of the Company, please know you are always in the forefront of our minds and guide every step we take with the Company. You are never taken for granted and your wishes and desires are always considered and sought to be implemented. We await to see what 2025 will bring. May it be satisfactory and joyous for all.

Mladen Ninkov, Chairman 4 June 2025

The Chairman, Hebei Hua Ao Directors and Senior Personnel Examining Drill Core at the Caijiaying Mine

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Hebei Hua Ao Personnel at the 2025 Beijing Women in Mining Conference

OVeRVIeW

Griffin Mining Limited ("Griffin" or the "Company") is a mining and investment company, incorporated in Bermuda in 1988. Its shares have been trading on the Alternative Investment Market of the London Stock Exchange ("AIM") since 1997.

The major asset of the Company is an 88.8% interest in Hebei Hua Ao Mining Industry Company Limited ("Hebei Hua Ao") held through its wholly-owned Hong Kong subsidiary, China Zinc Limited ("China Zinc"). Hebei Hua Ao holds all the necessary licences, the operating mine and processing facilities (the "Caijiaying Mine") located near Zhangjiakou City in the People's Republic of China ("PRC" or "China").

The Company has held its interest in Hebei Hua Ao since 1997/1998 having explored, financed, constructed and managed the Caijiaying Mine from the discovery of economic mineralisation to the current extraction and processing of circa 1.5 million tonnes of ore per annum.

CAIJIAYInG

INTRODUCTION

The Caijiaying Mine is an operating zinc, gold, silver, and lead mine, together with processing plant, camp and supporting facilities, located approximately 250 kilometres by road, north-west of Beijing in the Hebei Province of the PRC. The Caijiaying Mine is easily accessible by freeway from Beijing. The site has significant water supplies, an on site solar farm together with two 35,000 volt power lines connected to the electricity grid, full connectivity to fixed and mobile telecommunications systems and broadband access for internet services. Some 75% of energy used at the Caijiaying Mine comes from renewable energy sources. It is 63 kilometres from Chongli, the closest station on the high speed train link with Beijing.

A number of zones of mineralisation set within the same ore body were identified within the tenements held by Hebei Hua Ao at the Caijiaying Mine including Zone III, which is currently being mined, and Zone II, being developed for production in late 2025. Together with Zones V and VIII, all of these mineralised zones are recognised as being one ore body.

Climatic conditions are relatively mild with warm summers and cold winters, enabling the Caijiaying Mine to operate throughout the year.

The Caijiaying Mine currently produces zinc, gold, silver and lead in concentrate.

The Company also holds a 90% interest in Hebei Sino Anglo Mining Development Company Limited ("Hebei Anglo"), which has interests in exploration licences immediately surrounding the Hebei Hua Ao licence area. These tenements are currently held by Hebei Anglo's Chinese venture partner, Zhangjiakou Yuanrun Enterprise Management Consulting Service Co., Limited ("Yuanrun"), thereby allowing their retention under PRC law within the Hebei Anglo Group. Hebei Anglo has a contractual option to have these exploration licences transferred at any time back to Hebei Anglo.

The Company continues to aggressively explore, expand and develop the Caijiaying Mine whilst also investigating potential acquisitions of mining projects that are capable, through either advanced exploration or mining expertise, of being brought into production to meet the Company's historically pre-set, economic returns to shareholders.

DEVELOPMENT

Hebei Hua Ao is a contractual co-operative joint venture company established in 1994 under PRC law. Griffin now holds an 88.8% equity interest in Hebei Hua Ao (through its wholly owned subsidiary China Zinc), with the remaining 11.2% held by Yuanrun, the shareholders of which are the Zhangjiakou City People's Government and the Third Geological Brigade of Hebei Province (the "Third Brigade").

Yuanrun's interest is recognized via a service contract (for accounting purposes) for services rendered, resulting in Hebei Hua Ao being in the nature of a wholly owned subsidiary of the Company. See note 32 to the financial statements.

In January 2004, a second contractual joint venture company, Hebei Anglo, was formed to hold the mineral rights to the area surrounding the original Hebei Hua Ao licence area and any other areas of interest in Hebei Province. Griffin, through its wholly owned UK subsidiary Panda Resources Limited ("Panda"), has a 90% interest in Hebei Anglo whilst Yuanrun holds 10%.

On 1 January 2020, the new PRC Foreign Investment Law was enabled which sought to repeal the Sino Foreign Joint Venture Law. Pursuant to Article 42 therein, all Joint

RepORT AnD ACCOUnTS 2024

Geographic location of the Caijiaying Mine, People's Republic of China

Venture companies established under the previous law were required to be converted into limited liability companies by 1 January 2025 followed by an application for a new business licence to replace the current Business Licence.

In addition, for the conversion to be registered, new Articles of Association needed to be agreed with the Chinese Partners to replace the provisions of the original Agreements. Regardless that the statutorily mandated conversion date has passed, to the Company's and its PRC legal advisor's knowledge, no foreign Joint Venture has registered its conversion or new Articles of Association to date. As the new PRC Foreign Investment Law contains no enforcement provisions for non-compliance with the new law, the PRC regulatory authorities have granted blanket extensions for the process to be completed. As such, the Company remains in compliance with all PRC legislation and continues to negotiate with its Joint Venture partners in good faith to allow the conversion of both Joint Ventures to take effect in due course.

The Caijiaying Mine was commissioned on time and on budget in 2005. Numerous upgrades to the Caijiaying Mine

have taken place since commissioning leading to the current mill throughput capacity of 1.5 million tonnes of ore per annum. Mining rates have now reached the equivalent of 1.5 million tonnes of ore per annum. The development of Zone II at the Caijiaying Mine, now being undertaken, will enable current and possibly higher production rates in the future.

To date Griffin has invested over $400 million in the Caijiaying Mine in the acquisition, development and construction of the workings and processing facilities, the majority of which has been financed from internally generated funds.

With the grant of a new mining licence in December 2020 over the combined Zone II and Zone III areas, and consequent approval of the extension of the mine design into the Zone II area, the development of Zone II is almost complete. Production from Zone II is expected in late 2025. This will allow sustained production of at least 1.5 million tonnes of ore per annum to be extracted from the Caijiaying Mine for the extent of its current resource base.

RepORT AnD ACCOUnTS 2024

Caijiaying (CONTINueD)

GEOLOGY

The Caijiaying Mine is located at the northern edge of the North China Craton, within the highly mineralized Yanshan Metallogenic Belt in Hebei Province, PRC. This east-west trending belt, spanning hundreds of kilometres, is renowned for hosting a diverse array of large-scale mineral deposits, cementing the Yanshan region as one of northern China's most economically significant areas. The local geology at Caijiaying features early Proterozoic granulite and gneiss interspersed with marble lenses, which are unconformably overlain by the Late Jurassic Baiqi and Zhangjiakou Formations. The geological sequence is further complicated by porphyry sills and dykes that intrude along fault zones. Mineralization is interpreted to be associated with a Jurassic igneous event that extensively altered the ancient 2.3-billion-year-old metamorphic basement rocks.

The mine's base metal and gold mineralization align with a distal skarn replacement system, characterized by amphibolite-grade metavolcanic and metasedimentary rocks intruded by Jurassic porphyries. Sulphide lenses dominated by coarse sphalerite, alongside pyrite and galena, selectively replace calc-silicate and iron-rich amphibolite units within folded basement rocks.

Zone III exhibits Zn-Au-Pb-Ag mineralization within structurally deformed meta-volcanic units. Adjacent to the north-south Grasshopper Fault, the western sector features upright isoclinal folds adjacent the fault that transition eastward into inclined open folds, creating zones of structural complexity. Orebody thickness varies dramatically, reaching up to 20 metres at fold closures but narrowing to less than 2 metres along fold limbs at depth and toward the east. Steep to moderate westward dips and a shallow 20 degree northward plunge define the mineralization's orientation, reflecting the dynamic tectonic history of the area.

Zone II, a continuation south of Zone III, shares a comparable geological sequence but displays heightened structural complexity and divergent metal ratios. Ongoing exploration here leverages advanced underground diamond drilling, core orientation tools, and 48-element geochemical analysis to refine geological models and identify mineralization vectors. Rapid digital implicit modelling techniques enhance targeting efficiency, though the orebody's geometry narrows compared to Zone III, with possibly less pronounced fold hinges. Capital development

and drilling efforts focus on unlocking the deposit's full potential with plans to expand access to deeper levels in coming years.

MINERAL RESOURCE ESTIMATES

The mineral resources at the Caijiaying Mine are distributed across four mineralized zones, albeit now considered a single ore body, each hosting Zn-Au-Ag-Pb deposits. From south to north, the primary line of lodes includes resources from Zones II, III and VIII, while Zone

V is situated approximately 1 kilometre west of Zone

II. Currently, Zones V and VIII remain in the retention license phase as mining license applications are being processed. Throughout 2024, advanced mining operations at Zone III progressed steadily, alongside significant capital development efforts extending into Zone II, where mining licenses have been granted down to the 1000m Relative above sea level ("RL") and 968mRL, respectively. Ongoing diamond drilling campaigns have been instrumental in enhancing resource confidence at Zone II and delineating near-mine resources and extensions below the 1000mRL at Zone III, further solidifying the mine's potential.

The Global Mineral Resource that encompasses the entire area totals 82.3 million tonnes at 3.8% Zn, 0.6% Pb,

27.7g/t Ag and 0.4g/t Au resulting in total contained metal of approximately 3.2 million tonnes of zinc metal, 0.5 million tonnes of lead metal, 73.4 million ounces of silver metal and 1.1 million ounces of gold metal. This applies a zinc cut-off grade of 1% and is amended for mining depletion at Zone III as of 31 December 2024.

A total of 49,340 meters of underground diamond drilling was completed in 2024 across Zones II and III.

Zone III

In total, 31,433 meters were drilled to facilitate grade control, resource definition and exploration objectives throughout 2024. The updated 2024 Mineral Resource Estimate at Zone III, at a zinc cut-off grade of 1% using actual drilling as of July 2024 and amended for mining depletion up to 31 December 2024, totals 32.4 million tonnes at 4.5% Zn, 0.2% Pb, 24.7g/t Ag and 0.6g/t Au. This results in total metal of approximately 1.5 million tonnes of zinc metal, 0.07 million tonnes of lead metal,

25.8 million ounces of silver metal and 0.6 million ounces of gold metal.

The Zone III Mineral Resource Estimate is defined by historic surface diamond drill holes, reverse circulation surface drill holes and ongoing underground diamond drilling with an average spacings of approximately 20 metre x 20 metre, for a combined total of 665,373 metres.

At Zone III, underground mining operations have successfully reached planned development, extending from the 1,420mRL down to the lower mine license boundary at the 1,000mRL. Production activities are strategically integrated across primary, secondary and remnant mining fronts on all levels, with an increasing focus on optimizing secondary and remnant extraction. Diamond drilling efforts are concentrated on defining remnant mineralization adjacent to existing orebodies while also exploring near-mine opportunities both below the current mine development and to the east. This dual approach has maintained Zone III resources and reserves while ensuring operational efficiency.

Zone II

In total, 17,907 meters were drilled for resource definition in 2024. Historic surface diamond drillholes, reverse circulation surface drillholes and recent underground diamond drillholes, define the Zone II deposit at an average spacing of approximately 40 metre x 40 metre for a combined total of 134,224 metres of drilling.

The updated 2024 Zone II Mineral Resource Estimate at a zinc cut-off grade of 1% using actual drilling as of July 2024 totals 37.1 million tonnes at 3.4% Zn, 0.7% Pb,

24.1g/t Ag and 0.2g/t Au. This results in total metal of approximately 1.2 million tonnes of zinc metal, 0.3 million tonnes of lead metal, 28.7 million ounces of silver metal and 0.25 million ounces of gold metal.

Resource definition diamond drilling is ongoing from the upper 1453 RL drill drive with plans to shift to lower access drives once they are established. Simultaneously, construction progressed on five primary levels of capital development, including the establishment of diamond drill cuddies, which are designed to support infill resource drilling across the entire 1.3 kilometre strike length of the Zone II deposit. This development will extend drilling operations down to the lower mine license boundary at 968mRL, ensuring comprehensive resource evaluation and future mine production sustainability.

Zone V and VIII

Zones V and VIII remain integral to the Caijiaying Mine's broader resource portfolio. Currently under retention licenses, these zones represent future exploration targets, poised to complement the established operations at Zones II and III once the mining licence is granted. The tenure covers a total area of 2.23 square kilometres, valid until 16 July 2029.

The Inferred Mineral Resource Estimate at Zone V remains unchanged at 6.0 million tonnes at 3.2% Zn, 1.4% Pb, 56.0g/t Ag and 0.6g/t Au. This estimation yields approximately 0.2 million tonnes of zinc metal, 0.08 million tonnes of lead metal, 10.8 million ounces of silver metal and 0.12 million ounces of gold metal. The deposit at Zone V is defined by a total of 34 surface diamond drillholes, 3 reverse circulation surface drillholes with an average spacing of approximately 25 metre x 100 metres for a combined total of 15,242 metres of historical drilling.

The Inferred Mineral Resource Estimate at Zone VIII remains unchanged at 6.8 million tonnes at 4.0% Zn, 0.7% Pb, 37.0g/t Ag and 0.7g/t Au. This estimation translates to approximately 0.3 million tonnes of zinc metal, 0.05 million tonnes of lead metal, 8.1 million ounces of silver metal and 0.16 million ounces of gold metal. The Zone VIII deposit is defined by a total of 44 diamond drillholes spaced at intervals of 50 to 100 metres amounting to a combined total of 32,193 metres drilled.

Mineral Resource Estimate

The Global Mineral Resource that encompasses Zones III, II, V and VIII at a zinc cut-off grade of 1% and as amended for mining depletion at Zone III as of 31 December 2024 is summarised overleaf.

Caijiaying (CONTINueD)

MINERAL RESOURCE ESTIMATES

Caijiaying Zone II / III Mineral Resource Estimate Zinc Oxide: Zn Resources > 1% Zn

Zinc Fresh Domain: Zn Resources > 1% Zn

Gold Domain Resources: Au Resources > 0.5 g/t Au

Caijiaying Zone V Mineral Resources

Zone V Zn Resources > 1% Zn

Caijiaying Zone VIII Mineral Resources

Zone VIII Domain 1: Zn Resources > 1% Zn

Zone VIII Domain 2: Au Resources > 0.5 g/t Au

Zone VIII Total

Notes: The information in this report that relates to Mineral Resources is based on information compiled by Mr. Steve Rose. Mr. Rose is a full-time employee of Rose Mining Geology Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Rose has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Rose consents to the disclosure of the information in this report in the form and context in which it appears.

RepORT AnD ACCOUnTS 2024

Long Section Orientated West of the Zone III Mineral Resource Wireframes (red) and Underground 17 Development and Stoping (blue).

Caijiaying (CONTINueD)

EXPLORATION

Hebei Hua Ao Mining Area

Near-mine exploration at Caijiaying remains a critical component of the overall diamond drilling strategy as Zone III transitions into mature production and new mining fronts in Zone II are developed. Over the years, structural, lithogeochemical and technical studies have significantly advanced the geological understanding of the deposit, guiding exploration programs focused on targeting depth extensions and identifying potential parallel mineralization trends to the east and west of the known resource.

In 2024, deep drilling commenced below the 1000mRL from a dedicated exploration drill drive at the 1020mRL in the northern sector of Zone III. This program aims to delineate resource extensions downward, initially to the 750mRL and eventually to the 500mRL, with the goal of expanding the mining license footprint beneath the current operational area. While still in its early stages, initial

observations suggest robust orebody extensions in Zone III's central zone. To the north and encroaching from the west, basement rocks - including granulite and porphyry

- host narrow, gold-bearing hydrothermal breccia zones with subordinate zinc mineralization. The geometry and continuity of these structures are still being defined highlighting the evolving complexity of the mineralized system.

Regional Exploration

The continued safe production and mine expansion at the Caijiaying Mine continue to be the core focus for Griffin. While there has been no on ground regional exploration activities the Company continues efforts to unlock the full exploration potential at the adjacent Zone V and VIII project areas which remain at the retention license stage. In addition, research and site visits for potential project acquisition opportunities occurred both within and outside Hebei province.

OPERATIONS

Production at the Caijiaying Mine in 2024 and 2023 may be summarised as follows:

The safety and welfare of Griffin's workforce remains a priority with underground and surface operations conducted safely and consistently. Unfortunately, the Company recorded the death of a contractor employee and a subsequent disruption to operations in the fourth quarter of 2024.

Throughout 2024 there was a continued focus on safety with significant investment in equipment and systems at six

times the legal requirement in China with unrelenting continual training of the Chinese workforce. Despite the major steps forward in recent years to lift safety standards and exceed Chinese regulatory requirements in numerous areas, it is devastating to have experienced a loss of life in 2024.

The continual push to improve mine safety with mechanisation and modernisation of the underground

RepORT AnD ACCOUnTS 2024

mine has entailed adding a cable bolting jumbo, additional remote emulsion charge units, a new batch plant for mechanised shotcrete, 3 new workshops, underground personnel tracking, digital communications, automated key equipment monitoring, fire suppression on mobile equipment and the ongoing phase out of manual tasks across the business.

Production up to the end of the third quarter of 2024 was on track to achieve a record year in almost all areas, reinforcing the positive steps made in 2023 to sustainably mine and process 1.5 million tonnes per annum ("mtpa"). Unfortunately the contractor fatality resulted in a complete shutdown in production from 11 October 2024 to 1 January 2025.

Mine scheduling is a key area of focus with the ongoing development of Zone II and production from Zone

III occurring simultaneously. Zone III has been mined continuously for 20 years and is entering a phase with a high proportion of remnant stopes and awkward production areas. This requires constant work to ensure grades are balanced and managed in highly variable and complex conditions prior to Zone II entering production.

Zone II, currently in development, will provide access to over 36 million tonnes of ore for immediate production securing the future operation of the Caijiaying Mine past 2050 at minimum rates of 1.5 mtpa. With over 100km of underground development in the Caijiaying Mine, it is one of the most significant capital developments in underground zinc global production.

Mine development continued into Zone II in 2024 with 3,226 meters of horizontal and decline development and 444 meters of ventilation shaft development. Work is on track for mine development at Zone II to be completed in 2025 with trial mining to commence in 2025 and full production approval from Chinese regulators expected in the first quarter 2026 enabling production to ramp up to 1.7mtpa.

Work is ongoing to increase the capacity of the mill to a sustainable 1.7mtpa throughput, the per annum equivalent of which was achieved in the third quarter of 2024. Subject to receipt of appropriate permits, plans are being developed to increase production from Zones II and III to match increased mill capacity.

Numerous optimisation studies are ongoing to assess mineral processing modernisation and automation with the objective of increasing recovery and throughput while

decreasing input costs for energy, consumables, wearing components and reagents.

In 2025 the initial focus will be on ramping up production in accordance with Chinese regulators instructions, following the suspension of operations in the last quarter of 2024.

Significant progress was made during 2024 towards the aim of operations at the Caijiaying Mine being carbon neutral following the construction of the solar farm at the Caijiaying Mine in 2023. In April 2024, Hebei Hua Ao entered into an agreement with Zhangjiakou Guoao New Energy Co Ltd for the Caijiaying Mine to be the sole consumer of energy generated from two 6.3MW wind turbines generating a total of 12.6MW of wind power connected via existing 36,000 volt mains electrical power lines. During 2024, 75.9% of energy used at the Caijiaying Mine was from renewable energy resources, being primarily wind and solar generated.

Hebei Hua Ao continues to work towards 100% renewable energy. In addition to renewable energy generation, Hebei Hua Ao is 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.

The Caijiaying Mine is in a period of rapid change with the development of Zone II, which combined with processing plant upgrades and other improvements, will provide a sustainable base for development and growth.

RepORT AnD ACCOUnTS 2024

FInAnCIAl ReSUlTS

SUMMARY

The results for 2024 were severely impacted by the suspension in operations at the Caijiaying Mine during the fourth quarter of 2024 following the fatality of an employee of a contractor underground in the mine on 11 October 2024. As a result, in 2024 the Company and its subsidiaries (together the "Group") recorded;

LME zinc prices for 2024 were 5.3% higher than that in 2023. Smelter treatment charges and transport costs fell in 2024 from 27.0% of LME in 2023 to 13.4% in 2024. Gold prices increased throughout 2024 as did silver and lead prices with Hebei Hua Ao receiving a premium price on lead and gold in concentrate sales.

With less ore mined, hauled and processed as a result of the suspension in operations in the fourth quarter of 2024, cost of sales (mining, haulage, and processing, including depreciation) fell by $10,304,000 (10.9%) from that in 2023.

Operating (administration) expenses, excluding the Chinese partners remuneration and share incentive scheme charges, rose by $3,206,000 (15.2%) from that in 2023. The Chinese partners remuneration for services rendered decreased by $394,000 (10.9%) from that in 2023. A full year charge of $6,165,000 (2023: $3,018,000) was made in respect of the Group's share incentive plan.

The Group benefited from interest receipts on bank deposits of $1,753,000 in 2024 compared with $1,394,000 in 2023.

Full provision has been made in 2024 of $599,000 against costs capitalised in respect of the Siding zinc venture in southern China with an impasse reached in progressing this venture any further.

With the replacement and upgrade of various facilities at the Caijiaying Mine, including the backfill plant and workshops, losses on the disposal of equipment of

$1,108,000 (2023:$784,000) were incurred.

Foreign exchange losses, finance and other interest costs of

$42,000 (2023: $289,000) were recorded. Other income of

$527,000 (2023: 352,000) was received.

As a result, Group profits before tax declined from

$24,486,000 in 2023 to $17,903,000 in 2024.

REVENUE

Revenue in 2024 of $135,128,000 was down $10,895,000 (7.5%) on that achieved in 2023 of $146,023,000. This reflects zinc in concentrate sales down $15,882,000 (14.2%) with 39,814 tonnes of zinc metal in concentrate sold in 2024 compared with 57,998 tonnes in 2023, a decrease of 31.4% reflecting lower production with the suspension in production in the fourth quarter and lower head grades. The average zinc metal in concentrate prices received rose from $1,931 in 2023 to $2,414 in 2024, a rise of 25.0%. This reflects a rise in the average LME price from $2,647 in 2023 to $2,786 in 2024, whilst smelter treatment charges and transport costs have fallen from 27.0% of LME in 2023 to 13.4% in 2024.

Lead and precious metal in concentrate sales in 2024 of

$46,473,000 were up $4,045,000 (9.5%) on that achieved Sales may be summarised as follows:

in 2023 of $42,428,000. This reflects higher metal prices received despite lower production.

COST OF SALES

With less ore mined, hauled and processed as a result of the suspension in operations in the fourth quarter of 2024, cost of sales (mining, haulage, and processing, including depreciation) fell by $10,304,000 (10.9%) from that in 2023 with production costs per tonne of ore processed rising

from $62.2 per tonne in 2023 to $71.7 per tonne in 2024. This in the main reflects the impact of the suspension of operations in the fourth quarter with ongoing fixed costs.

Costs of sales may be summarised as follows:

FINANCIAl RESUlTS (CONTINueD)

COST Of SALeS (CONTINueD)

Mining

1,149,146 tonnes of ore were mined in 2024, down 23.8% on that mined in 2023 of 1,505,642 tonnes, reflecting the suspension in operations in the fourth quarter of 2024. Mining costs in the first three quarters of 2024 remained much in line with that in 2023. As a result of less ore mined at broadly the same cost, unit costs rose from $17.0 per tonne mined in 2023 to $22.6 per tonne in 2024.

Haulage

1,174,811 tonnes of ore were hauled in 2024, down 22.2% on that hauled in 2023 of 1,509,098 tonnes, tracking ore mined. Haulage costs in 2024 were down $4,927,000 (27.2%) on that in 2023, resulting in a reduction in unit costs from $12.0 per tonne hauled in 2023 to $11.2 per tonne in 2024 reflecting a reduction in average distances hauled.

Processing

1,169,098 tonnes of ore were processed in 2024, down 22.8% on that processed in 2023 of 1,513,977 tonnes, tracking ore mined and hauled. Processing costs in 2024 were down $2,374,000 (10.2%) on that in 2023, resulting in an increase in unit costs from $15.3 per tonne processed in 2023 to $17.8 per tonne in 2023, reflecting fixed costs.

Depreciation

Depreciation charges in 2024 were down $2,738,000 (10.8%) on that incurred in 2023 reflecting reduced ore mined upon which mine development costs are depreciated calculated on a unit of production basis, whilst plant and equipment costs are depreciated on a straight line basis.

OPERATING EXPENSES

Operating (administration) costs (excluding the minority interest charges and share incentive scheme charges) in 2024 of $24,289,000 were up $2,841,000 (15.2%) on that incurred in 2023 of $21,083,000.

Hebei Hua Ao's operating costs in 2024 of $14,820,000 were up $427,000 (3.0%) on that incurred in 2023 of

$14,393,000. Increased personnel costs have been offset by savings in local partner service and consultancy fees.

Griffin and Griffin Mining (UK Services) Ltd company corporate costs of $8,595,000 (excluding share incentive scheme charges) were up $2,715,000 (26.2%) on that incurred in 2023 of $5,880,000.

China Zinc's operating costs of $794,000 were up $71,000 (9.8%) on that in 2023 of $723,000, with additional personnel costs.

The Chinese partners remuneration for services rendered decreased by $394,000 (10.1%) from that in 2023 reflecting lower Hebei Hua Ao profits.

$6,165,000 (2023: $3,019,000) has been provided relating to a full year's share incentive plan charges.

PROFITS BEFORE TAX

After interest, foreign exchange adjustments, impairment provisions and other income, a profit before tax of

$17,903,000 was recorded for 2024 compared to

$24,486,000 in 2023. The profit before tax in 2024 was after charging / crediting;

$37,000 (2023: $42,000) were charged.

TAXATION

Taxation of $6,552,000 has been charged in 2024 (2023:

$9,250,000). This comprises: 25% of Hebei Hua Ao's profits under Chinese accounting standards amounting to

$10,480,000 (2023: $11,130,000); withholding tax of 5% on intercompany dividends received of $689,000 (2023:

$897,000); and UK corporation tax on Griffin Mining (UK Services) Limited profits of $200,000 (2023: $179,000). China Zinc benefited from a tax credit of $13,000. Deferred tax arising on accelerated depreciation of $4,804,000 has been credited (2023: credit of $2,694,000).

EARNINGS PER SHARE

Basic earnings per share fell from 8.03 cents per share in 2023 to 6.08 cents per share in 2024. With all share purchase options having been exercised or lapsed there was no dilution in earnings per share in 2024. 2023 diluted earnings per share was 7.98 cents.

CASH FLOW

In the year ended 31 December 2024 cash balances decreased by $11,249,000.

$19,582,000 (2023: $48,377,000) was generated from operations in 2024. Capital expenditure, net of disposals, of $20,898,000 (2023: $23,279,000), was incurred in 2024. Interest on bank deposits of $1,753,000 (2023: $1,394,000) was received in 2023. $828,000 was received on the issue of new ordinary shares on the exercise of share purchase options. $12,515,000 (2023: $373,000) was expended on the buyback of ordinary shares in 2024

NET ASSETS

Attributable net assets per share at 31st December 2024 was $1.47 (2023: $1.40).

RepORT AnD ACCOUnTS 2024

SUSTAInABIlITY, enVIROnMenT AnD lOCAl COMMUnITY

OVERVIEW

The directors and management are focused on ensuring the long-term sustainability of the Group and its business to benefit its shareholders and other stakeholders. Sustainability is supported by the Group's values; operating in an environmentally responsible manner by continually improving circular and low-carbon operations including engagement in green partnerships, targeting zero waste, prioritising the health and safety and development of employees, conducting business with integrity throughout the Group and supply chain as well as actively engaging and contributing to the local community.

The report is prepared with reference to the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI Standards), the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0), the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises - Mining Industry (CASS-CSR 4.0) of the Chinese Academy of Social Sciences, and the Guide for Business Action on SDGs by the UN Global Compact.

Unless otherwise stated, the report covers the period from 1 January 2024 to 31 December 2024. To enhance data comparability, part of the content is outside of the above period.

Since its establishment and commencement of operations in 1994, the Company has pursued a policy of green, ecological, and efficient operations. Whilst maintaining green operations, it continuously refines the management of Caijiaying, explores sustainable development paths, and contributes to green, low-carbon, and circular economic development. The Company places great emphasis on corporate culture and employee care, with safety as a core value. It upholds values such as mutual respect, teamwork, dedication, pursuit of excellence, innovation, and integrity. By prioritising technological innovation and management advancement, the Company actively fulfills its corporate social responsibilities, striving to maximise both economic and social benefits from mining development and to establish itself as a top-tier mining enterprise.

ENHANCING COMPLIANCE GOVERNANCE

Sustainable Development Governance ("SDG")

Sustainable Development Governance Concept

Griffin recognizes that a strong governance framework for sustainable development is essential for a Company's long-term success. The Company upholds principles of environmental sustainability, social responsibility, and efficient governance. Griffin integrates safety and green mining concepts into its corporate strategy while refining compliance governance. Through continuous improvement of its environmental management system, Griffin strives to reduce waste and pollutant emissions, enhance energy and resource efficiency, and undertake land reclamation and ecological restoration to minimise any environmental impact. Additionally, Griffin maintains positive relationships with local communities, contributing to their economic development and infrastructure improvement. Furthermore, Griffin has established a robust ESG governance framework, adheres to the highest ethical standards, and enhanced risk management systems. Griffin believes that compliance is the cornerstone of stable corporate development and a key factor in earning stakeholder trust.

Sustainable Development Governance Structure

The Company integrates sustainable development governance into its strategic and operational activities, continuously optimising the governance framework to ensure effective ESG management. Griffin has established a three-tier governance structure comprising the Board of Directors, Management, and relevant functional departments, each with clear roles and responsibilities:

Stakeholder Communication

The Company values stakeholder engagement and has established diverse and regular communication channels to understand and address stakeholder concerns and expectations.

SUSTAINAbIlITY, ENvIRoNmENT ANd loCAl CommUNITY (CONTINueD)

Materiality Analysis

In 2024, to better identify and evaluate the importance of ESG key issues, Griffin conducted a materiality analysis,

selecting the topics most relevant to stakeholders and forming a materiality matrix to guide the sustainable development work and practice of the Company.

Identification and Selection

Assessment and Analysis

Confirmation and Report

According to domestic and foreign regulatory policies, the Company's own business

characteristics and development and industry dynamics and other standards, 22 ESG key issues closely related to the Company's business development are selected to form a list of ESG key issues.

Conducting a

questionnaire survey for internal and external stakeholder groups, including government and regulatory agencies, shareholders and investors, employees, suppliers and partners, and the community, and carrying out an assessment and analysis of the importance of the issue based on the questionnaire results.

Through the

questionnaire results, the issues were prioritised in two dimensions of "Relative Significance to the Company" and "Relative Significance to the stakeholders" to form the Company's 2024 analysis matrix of substantive issues, which was disclosed in this report.

Analysis matrix of substantive issues