RNS Number:5496I
Peter Hambro Mining PLC
11 March 2003

11 March 2003


                            PETER HAMBRO MINING PLC

                             Placing and Open Offer
                      to raise approximately #16.8 million


Peter Hambro Mining PLC ("the Company" or "PHM") announces that Canaccord
Capital (Europe) Limited ("Canaccord"), as agent for the Company, has
conditionally placed a total of 9,596,919 new ordinary shares of 1p each of the
Company ("New Shares") at 175p per share ("Placing Price")  to raise
approximately #16.8 million before expenses.  The number of New Shares is
equivalent to 20 per cent. of the Company's existing issued share capital. As
agent for certain existing shareholders (being two directors and their
affiliated holders and another shareholder) Canaccord has also conditionally
placed a total of 2,000,000 existing ordinary shares ("Sale Shares") at the
Placing Price.  These shareholders comprise a company associated with Peter
Hambro (500,000 shares) and Pavel Maslovsky (500,000 shares), both directors of
the Company, and Mr G R Durham (1,000,000 shares).


The Company also announces that it intends to effect an Open Offer in respect of
all the New Shares pursuant to which shareholders in the Company (save for
certain overseas holders) will be entitled to subscribe for the New Shares at
the Placing Price on the basis of 1 New Share for every 5 existing Shares held.


The Placing is conditional on inter alia the Open Offer being made and on
admission of the relevant shares to trading on AIM ("Admission"). Certain
Shareholders (comprising three directors, Peter Hambro, Pavel Maslovsky and Sir
Rudolph Agnew and, in the case of Peter Hambro and Pavel Maslovsky, their
respective related interests, and Mr G R Durham) have given irrevocable
undertakings in relation to the Open Offer which will enable a total of
7,578,078 New Shares to be allocated to placees on a firm basis.  It is intended
that Admission will be sought for these New Shares shortly following the issue
of the circular and for the remaining 2,018,841 New Shares following close of
the Open Offer.


The estimated net proceeds are intended to be applied in funding (as to an
estimated #3.6 million) the cash element of the consideration in respect of the
proposed Tokur acquisition and (as to an estimated #9 million) PHM's investment
in the proposed Magadan joint venture. If either or both of these transactions
do not proceed, the relevant funds will be applied, together with the balance of
the proceeds, in reduction of the Group's debt and financing of additional work
on its existing interests.


Shareholder Documentation


It is intended that a circular containing the Open Offer and the Application
Forms will be despatched to shareholders by the end of March 2003.


Enquiries:

Peter Hambro                Peter Hambro Mining                 +44 77 7415 3498
                                                                +44 20 7393 0102

David Simonson              Merlin Financial                    +44 20 7606 1244
Nicola Davidson                                                +44 7711 70 91 70

                      This information is provided by RNS
            The company news service from the London Stock Exchange
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