This is a mug featured like a figure wearing a Papua New Guinea Abelam Mask with real fringes hanging down from the ears.

From Trader Vic's:

"The Spirit Of Abelam is more art than mug. Designed by Gecko of South Sea Arts. Gecko brings the masks of Papua New Guinea to life with this creation.

This mug stands 13 inches tall so stock up on some long straws!"