RNS Number:2988O
Cluff Mining PLC
04 August 2003


                               CLUFF MINING PLC
                               ("the Company")


                 Proposed New #2.5 million Convertible Facility

Further to the announcement made on 27 June 2003 relating to the extension of
its convertible loan facility ("the Existing Facility") from RMB International
(Dublin) Limited ("RMBI") until 29 August 2003, the Company today announces that
it has agreed the principal terms of a new convertible loan note facility ("the
New Facility") with RMBI.

Under the New Facility, the Company will be entitled to issue up to ten new
Exchangeable Convertible Units ("New ECUs") to RMBI at an issue price of
#250,000 per New ECU.  The Company will use the proceeds of the New Facility,
together with US$1.3 million of the Company's existing cash, to repay the
Existing Facility in full. The Company is obliged to repay all outstanding
amounts due under the Existing Facility on 29 August 2003.  The total repayment
will be US$5.3 million (#3.3 million at the current exchange rate).

Terms of the New ECU Facility

Interest will accrue on the New ECUs at the rate of Sterling LIBOR plus 2.5 per
cent. per annum. The Company may elect to capitalise the accrued interest for so
long as the outstanding amount under the New Facility (including capitalised
interest) does not exceed #3.0 million.  If the Company does elect to capitalise
the accrued interest, the New ECU holder may instead elect to convert it into
ordinary shares in the Company.  The ordinary shares issued in respect of
interest will be issued at a 15 per cent. discount to the weighted average price
of the ordinary shares that were sold on AIM over the preceding 20 Business
Days.  The New ECUs, together with any accrued or capitalised interest, if not
converted, are repayable in full 36 months after the date of issue.

The New ECU Holder may elect at any time between one and 36 months following the
issue of the New ECU's to convert one or more of the ECU's into ordinary shares.
The number of ordinary shares to be issued on conversion of an ECU will be
determined by dividing the issue price of #250,000 (plus any accrued or
capitalised interest) by the conversion sum which is defined as (i) #1.30 if the
Current Market Price is less than #2.60 or (ii) half the Current Market Price if
the Current Market Price is equal to or more than #2.60.

Assuming that from 1 September 2003 to the final conversion date interest
accrues at six per cent., a holder of all the New ECU's would have the right to
subscribe for up to 2,300,000 Ordinary Shares on the final conversion date.
Full conversion would result in that person holding 8.13 per cent. of the
enlarged issued ordinary share capital of the Company.

The Facility is subject to the Company and RMBI agreeing an appropriate facility
agreement and security documentation and shareholder approval.

A circular has today been posted to shareholders of the Company containing
information on the proposed new facility and convening an EGM at 10.00am on 28
August 2003 at 29 St. James's Place, London SW1A 1NR at which the approval of
shareholders to enter into the new facility will be sought.  Copies of the
circular will be available from the offices of Cluff Mining PLC, 29 St James's
Place, London, SW1A 1NR for a period of one month from the date of this
announcement.

                                                                   4 August 2003

ENQUIRIES:

Cluff Mining PLC
Donald McAlister, Finance Director                                 020 7495 2030



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