European Goldfields Limited

WHITEHORSE, July 15, 2011 /CNW/ --

Resources and Reserves Updated


Economics Confirmed


Chief Operating Officer Appointed


Goldman Sachs Appointed

WHITEHORSE, July 15, 2011 /CNW/ - European Goldfields Limited (AIM: EGU) (TSX: EGU) ('European Goldfields' or 'the Company') is pleased to make the following announcements now that the
Environmental Impact Study ('EIS') submitted by the Company's 95% owned
subsidiary Hellas Gold S.A, has received the approval of the Ministry
of Environment, Energy and Climate Change ('MOE'):

    --  The Company has completed an update to its Resource and Reserve
        Statement ('NI 43-101') for the Skouries and Olympias projects
        to reflect the current environment for costs and commodity
        prices, to account for the timing in the receipt of the permit
        and the implementation of the Business Development Plan
        approved under the EIS.

        The key elements of the update for the Greek assets are as
        follows:

WHITEHORSE, July 15, 2011 /CNW/ --

                          --  A net increase in the total Skouries and
                              Olympias Measured and Indicated Mineral
                              Resources (over previously filed NI
                              43-101 report) to 9.6 million ounces of
                              gold and 1,205kt of copper. In addition
                              there is a newly declared Inferred
                              Resource of 828,000 ounces of gold and
                              288,000t of copper at Skouries;
                          --  This update increases the Company's total
                              Measured and Indicated Resources
                              inclusive of Reserves to 23.8 million
                              gold equivalent ounces and attributable
                              Proven and Probable Reserves to 18.1
                              million gold equivalent ounces;
                          --  Projected total initial capital
                              expenditures to primary gold production
                              of US$300 million for Skouries and US$165
                              million for Olympias;
                          --  Forecast combined average life of mine
                              cash operating costs in the lowest
                              quartile globally at US$350-US$400/oz.

    --  David Cather has been appointed as Chief Operating Officer with
        immediate effect.  Mr. Cather has a 25 year track record in the
        mining industry and previously worked for De Beers and Anglo
        American.

    --  Goldman Sachs International has been appointed to assist in the
        evaluation of a potential move from AIM to the Main Market of
        the London Stock Exchange. Lazard & Co., Limited will also
        provide financial advice in connection with such evaluation.

Commenting on the announcements, Martyn Konig, Executive Chairman &
President, noted:

'We are delighted to have received approval of our EIS from the MOE
following the comprehensive review and public consultation process in
Greece. The importance of this approval cannot be overstated and we are
extremely grateful to our Greek colleagues at Hellas Gold, for their
huge and tireless efforts throughout this lengthy and rigorous
process.  It allows us to progress towards our goal of becoming the
largest primary gold producer in Europe and will provide the Greek
economy with much needed and significant investment, contributing to
both the financial and social environment in the region as new
long-term jobs are created.

As we embark upon the development of our Greek projects, we have
undertaken a comprehensive Resource and Reserve update. This has
involved a thorough capital and operating cost review reflecting the
EIS approval and prevailing economics of our projects.  The update will
show that we have been able to largely avoid the current capital cost
and operating cost inflation being experienced by the mining industry
globally.  As a result, we are pleased to announce that our forecast
average cash costs of production (on a gold equivalent basis) remain
well within the lowest quartile of the global average, notwithstanding
some fairly significant scope changes. For example, we have opted for
an underground mining method at the end of the Skouries open pit life,
that we believe is best suited to the prevailing economic climate and
underscores our commitment to the best practices of environmental
stewardship.

We are also very happy that David Cather has accepted the position of
COO and we are confident that his vast experience gained with De Beers,
Anglo American and Miller Mining will be invaluable to us in bringing
the development projects into production on time and on budget.

Finally, from a corporate development perspective, the potential move to
the London Main Board is a logical step for the Company. We firmly
believe that there is a considerable level of European investor demand
for exposure to our unique proposition of EU based gold production.'

Conference call details

European Goldfields will host a conference call to update investors and
analysts on the contents of this release.  The call will be held today,
Friday 15 July at 8:00am EDT / 1:00pm London, UK time.

Participants may join the call by dialling the number below,
approximately 5 minutes before the start of the call.

Participant dial in: 44 (0) 1452 561 263

Conference ID: 83667798

Olympias & Skouries Resource and Reserve Update (NI 43-101)

The Company is pleased to announce an update to Resources and Reserves
for its Olympias and Skouries assets in North-Eastern Greece. The
update reflects improved commodity prices and current costs in
accordance with the Company's Business Development Plan and approved
EIS.

Olympias

    --  Olympias Resources and Reserves

The table below outlines the updated Resource and Reserve Statement in
respect of Olympias. The change to the previously declared Resources
and Reserves is due to the effect of updated commodity prices and
production costs on the cut-off grade rather than any re-interpolation
of drilling or sampling data. This has led to an increase in Proven &
Probable Mineral Reserves of 13% in all metals, including an increase
of 460,000 oz of gold.

 _________________________________________________________________
|Resources          |'000t |Au  |Au  |Ag |Ag  |Pb | Pb  |Zn | Zn  |
|                   |      |g/t |Moz |g/t|Moz | % |'000t| % |'000t|
|___________________|______|____|____|___|____|___|_____|___|_____|
|Olympias           |      |    |    |   |    |   |     |   |     |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Measured           |8,137 |10.0|2.60|147|38.5|4.9| 400 |6.6| 535 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Indicated          |4,298 |10.0|1.39|161|22.3|5.4| 230 |7.1| 304 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Total (underground)|12,435|10.0|3.99|152|60.8|5.1| 630 |6.7| 839 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Measured Tailings  |2,408 |3.4 |0.27|14 |1.1 | - |   - | - |   - |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Total M&I          |14,843|  - |4.26| - |61.9| - | 630 | - | 839 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Inferred           |1,666 |8.9 |0.47|155|8.3 |5.4|  90 |7.2| 120 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|                   |      |    |    |   |    |   |     |   |     |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Reserves           |'000t |Au  |Au  |Ag |Ag  |Pb | Pb  |Zn | Zn  |
|                   |      |g/t |Moz |g/t|Moz | % |'000t| % |'000t|
|___________________|______|____|____|___|____|___|_____|___|_____|
|Olympias           |      |    |    |   |    |   |     |   |     |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Proven             |8,886 |8.7 |2.47|128|36.5|4.3| 380 |5.7| 508 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Probable           |4,686 |8.7 |1.32|140|21.2|4.7| 219 |6.2| 288 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Total (underground)|13,572|8.7 |3.79|132|57.7|4.4| 599 |5.9| 796 |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Proven Tailings    |2,408 |3.4 |0.27|14 |1.1 | - |   - | - |   - |
|___________________|______|____|____|___|____|___|_____|___|_____|
|Total              |15,980|  - |4.06| - |58.8| - | 599 | - | 796 |
|___________________|______|____|____|___|____|___|_____|___|_____|

For further detail on Resource and Reserve calculations see Notes to Mineral Resource and Reserve Statement in Appendix A below.

The Olympias Reserve now incorporates approximately two million tonnes
of additional ore at similar gold grades (8 to 9g/t gold) to the rest
of the Reserve. Inspection of the core by the Company indicates that
there is lower-grade mineralisation enveloping the modelled zones and
therefore the current assumption of dilution at zero grade is
conservative; raising the dilution grade will afford the opportunity to
raise the overall Reserve grade.

    --  Olympias Capital and Operating Costs

The Company has reconfirmed its Business Development Plan for Olympias
as follows:

    --  Olympias Tailings Retreatment and Olympias Concentrator
        Refurbishment - with expected first gold production from
        Olympias during Q2 2012;
    --  Olympias Underground Mine Refurbishment - with expected primary
        production from the underground mine at a run rate (ROM) of
        400,000t per annum by Q4 2015 through the existing Olympias
        concentrator;
    --  Olympias Underground and Infrastructure Expansion - with
        expected expansion of the underground mine to a run rate of
        850,000t per annum and new Stratoni Concentrator by 2020;
    --  Mine life extended by 25% as a result of additional Reserves.

WHITEHORSE, July 15, 2011 /CNW/ --

The table below outlines the expected associated capital expenditure,
operating cash costs and production from Olympias:

 ____________________________________________________________________
|                                                |     Unit  |Amount |
|________________________________________________|___________|_______|
|Capital Expenditure                             |           |       |
|________________________________________________|___________|_______|
|Tailings retreatment and Concentrator           |           |       |
|Refurbishment Capital                           |US$ million|   15  |
|(Up to Q2 2012)                                 |           |       |
|________________________________________________|___________|_______|
|Underground Mine Refurbishment(1)               |US$ million|   150 |
|(Up to Q4 2015)                                 |           |       |
|________________________________________________|___________|_______|
|Total Initial Capital to Underground ROM rate of|US$ million|   165 |
|400ktpa                                         |           |       |
|________________________________________________|___________|_______|
|Underground Mine Expansion                      |US$ million|   108 |
|(From 2016 - 2020)                              |           |       |
|________________________________________________|___________|_______|
|                                                |           |       |
|________________________________________________|___________|_______|
|Production - recovered metal (average per year) |           |       |
|________________________________________________|___________|_______|
|Tailings Retreatment                            |           |       |
|(Q2 2012 - Q4 2015)                             |           |       |
|Gold in concentrate                             |   ounces  |70,000 |
|Gold Equivalent Production(2 )                  |   ounces  |31,000 |
|________________________________________________|___________|_______|
|Underground Mine Refurbishment - 400ktpa ROM    |           |       |
|(Q4 2015 - Q4 2020)                             |           |       |
|Gold in concentrate                             |   ounces  |119,000|
|Silver                                          |   ounces  | 1.7m  |
|Lead                                            |   tonnes  |16,000 |
|Zinc                                            |   tonnes  |21,000 |
|                                                |           |       |
|Gold Equivalent Production(2)                   |   ounces  |120,000|
|________________________________________________|___________|_______|
|Underground Mine Expansion - 850ktpa ROM        |           |       |
|(2021 to end of Life of Mine)                   |           |       |
|Gold in concentrate                             |   ounces  |200,000|
|Silver                                          |   ounces  | 3.2m  |
|Lead                                            |   tonnes  |33,000 |
|Zinc                                            |   tonnes  |44,000 |
|                                                |           |       |
|Gold Equivalent Production(2 3)                 |   ounces  |225,000|
|________________________________________________|___________|_______|
|                                                |           |       |
|________________________________________________|___________|_______|
|Operating Costs per Gold Equivalent Ounce(2)    |           |       |
|________________________________________________|___________|_______|
|Tailings Retreatment                            |   US$/oz  |400-450|
|Underground Mine Refurbishment & Expansion      |   US$/oz  |250-300|
|________________________________________________|___________|_______|

  1. Mine Capital includes estimated expenditure to refurbish the
     existing underground mine to produce up to 400,000 tonnes per
     annum ROM ore to feed the refurbished Olympias plant. This also
     includes some long lead development capital for the expansion
     project up to 850,000 tonnes per annum ROM ore.
  2. For further detail on exchange rates & gold equivalent
     calculations, please see Notes to Exchange Rate & Operating Costs
     in Appendix A.
  3. The effect of the proposed gold plant on production has not been
     included, which is expected to increase the payability of gold in
     concentrate and gold equivalent production, and increase operating
     income.

Skouries

    --  Skouries Resources and Reserves

The table below outlines the updated Resource and Reserve Statement in
respect of Skouries.  The change to previously disclosed Resources and
Reserves include an increase in Measured & Indicated Mineral Resources
of 310,000 oz of gold and 162,000t of copper and a newly declared
Inferred Mineral Resource of 828,000 oz of gold and 288,000t of copper,
set against a decrease in Reserves of 320,000 oz of gold and 53,000t of
copper, due to the approved mining method under the EIS approval.

 ________________________________________
|Resources| '000t | Au |Au Moz| Cu | Cu  |
|         |       |g/t |      | %  |'000t|
|_________|_______|____|______|____|_____|
|Skouries |       |    |      |    |     |
|_________|_______|____|______|____|_____|
|Measured |39,480 |1.24| 1.57 |0.67| 266 |
|_________|_______|____|______|____|_____|
|Indicated|206,870|0.57| 3.77 |0.45| 939 |
|_________|_______|____|______|____|_____|
|Total M&I|246,350|0.67| 5.34 |0.49|1,205|
|_________|_______|____|______|____|_____|
|Inferred |115,777|0.22| 0.83 |0.25| 288 |
|_________|_______|____|______|____|_____|
|         |       |    |      |    |     |
|_________|_______|____|______|____|_____|
|Reserves | '000t | Au |Au Moz| Cu | Cu  |
|         |       |g/t |      | %  |'000t|
|_________|_______|____|______|____|_____|
|Skouries |       |    |      |    |     |
|_________|_______|____|______|____|_____|
|Proven   |34,444 |1.25| 1.38 |0.68| 233 |
|_________|_______|____|______|____|_____|
|Probable |103,918|0.66| 2.21 |0.48| 503 |
|_________|_______|____|______|____|_____|
|Total    |138,362|0.81| 3.59 |0.53| 736 |
|_________|_______|____|______|____|_____|

For further detail on Resource and Reserve calculations see Notes to Mineral Resource and Reserve Statement in Appendix A below.

A more rigorous approach has been applied to the classification of
Resources. This has had two effects:

    --  The Company is now able to report a new Inferred Mineral
        Resource of 116 million tonnes containing 828,000 oz of gold
        and 288,000t of copper;
    --  More than 106,000 oz of gold and 33,000t of copper Inferred
        Mineral Resources is contained within the planned open pit and
        the Company expects that this can be converted to M&I Mineral
        Resources with a modest drilling campaign.  Should this infill
        drilling show that the M&I Mineral Resources in proximity to
        the planned open pit are more extensive than currently
        indicated, the approved EIS allows for a larger open pit,
        providing potential for extending the open pit life.

The Skouries Reserve estimate contemplates underground mining using
Sub-Level Open Stoping following the current six year open pit life. 
Two mining methods were proposed in the EIS, Sub-Level Caving and
Sub-Level Open Stoping and approval was sought and given for Sub-level
Open Stoping.

There are a number of advantages to Sub-Level Open Stoping with
back-fill, including the method being amenable to mechanisation. It is
safer, easier to ventilate and has a high recovery rate with minimal
dilution. Further, as underground voids are backfilled, it reduces land
disturbance, minimises tailings facilities, environmental footprint and
reduces the risk of subsidence. Finally, it is in line with the EU
Waste Directive and uses Best Available Techniques. This mining method
has led to a mine life extension of around 35%.

This mining method requires the use of pillars many of which may carry
high grades, and the final underground mine design during detailed
engineering is expected to allow optimisation of the size, positioning
and recovery of these pillars. As a result, the Company anticipates
that higher-grade material currently excluded as pillars can be
scheduled back into the Reserves during detailed design optimisation.

    --  Skouries Capital and Operating Costs

The Company has reconfirmed its Business Development Plan for Skouries
as follows:

    --  Skouries Open Pit and Infrastructure Development - with
        expected  first gold production from Skouries during Q1 2014;
    --  Skouries Underground - this will follow the open pit and is
        currently expected to start in 2020.

The table below outlines the expected associated capital expenditure,
operating cash costs and production from Skouries:

 ____________________________________________________________________
|                                                |     Unit  |Amount |
|________________________________________________|___________|_______|
|Capital Expenditure(1)                          |           |       |
|________________________________________________|___________|_______|
|Open Pit Capital (including pre-strip)          |US$ million|   61  |
|________________________________________________|___________|_______|
|Plant Capital                                   |US$ million|   202 |
|________________________________________________|___________|_______|
|TMF, Infrastructure and Roads                   |US$ million|   21  |
|________________________________________________|___________|_______|
|Owner's Costs & Sustaining                      |US$ million|   16  |
|________________________________________________|___________|_______|
|Total Construction Capital                      |US$ million|   300 |
|________________________________________________|___________|_______|
|                                                |           |       |
|________________________________________________|___________|_______|
|Production Contained in Concentrate (average per|           |       |
|year)                                           |           |       |
|________________________________________________|___________|_______|
|Open Pit                                        |           |       |
|(From Q1 2014 - Q4 2019)                        |           |       |
|Gold                                            |   ounces  |153,000|
|Copper                                          |   tonnes  |33,000 |
|                                                |           |       |
|Gold Equivalent Production(2 )                  |   ounces  |356,000|
|________________________________________________|___________|_______|
|Underground                                     |           |       |
|(2020 to end of Life of Mine)                   |           |       |
|Gold                                            |   ounces  |106,000|
|Copper                                          |   tonnes  |24,000 |
|                                                |           |       |
|Gold Equivalent Production(2)                   |   ounces  |255,000|
|________________________________________________|___________|_______|
|                                                |           |       |
|________________________________________________|___________|_______|
|Operating Costs per Gold Equivalent Ounce(2)    |           |       |
|________________________________________________|___________|_______|
|Open Pit                                        |   US$/oz  |250-300|
|Underground                                     |   US$/oz  |400-450|
|________________________________________________|___________|_______|

  1. The capital expenditure for Skouries covers the period from 2011
     to 2013 until first cash flow is produced from the open pit.
  2. For further detail on gold equivalent calculations, please see
     Notes to Exchange Rates and Operating Costs in Appendix A.

Expected Business Development Plan Optimisation

As an on-going process, the Company continually works on the
optimisation of its assets through its Business Development Plan. The
EIS approval will allow the Company to continue exploration and test
work to develop the following:

    --  The Skouries underground mine plan will continue to be reviewed
        and the Company expects to identify areas where further
        optimisation and operational improvements can be implemented.
        This review will also include a re-examination of the open pit
        and underground interface and the underground mining ore
        extraction techniques to ensure that best available
        technologies and practices are adopted and value maximised;
    --  Further development work and design will be done in respect of
        the Olympias Gold plant, as approved in the EIS, to take the
        gold concentrate to a final product, thereby maximising the
        return from the contained gold. When the engineering work
        currently being undertaken in conjunction with Outotec is
        complete, we would expect to revise our NI 43-101 reports to
        reflect that information;
    --  Piavitsa - Previous drilling has outlined a high grade Olympias
        style polymetallic deposit, and the Company plans to commence a
        new drill programme immediately to define a maiden mineral
        resource estimate.  Given Piavitsa's close proximity to the
        Stratoni operation, it could ultimately be exploited via
        existing underground mine infrastructure;
    --  At Fisoka, three porphyry centres have been identified.  The
        more northerly has been drill tested and historic assaying gave
        over 100 metres thickness of copper only mineralisation of 0.4
        to 0.6% Cu in a supergene blanket type zone from which gold has
        been leached.  Mapping and sampling of the central and southern
        porphyries indicate copper and gold mineralisation and porphyry
        style alteration and veining.  The Company plans to drill test
        these promising porphyry copper-gold targets immediately in
        parallel with drilling at Piavitsa;
    --  At Tsikara, mapping and grab sampling has indicated areas of
        strong porphyry style veining and alteration in outcrop over an
        area of magnetic anomaly with a similar signature to the
        Skouries porphyry.  The Company plans to investigate the longer
        term potential of these porphyry-style deposit anomalies for
        the definition of mineral resources via an open pit within
        trucking distance of the Skouries plant.  Drilling is expected
        to commence shortly after that at Piavitsa and Fisoka.

Appointment of Chief Operating Officer

The Company is pleased to announce the appointment of David Cather
C.Eng, MIMMM as Senior Vice President in the newly created role of Chief Operating Officer.

Mr. Cather graduated from the Royal School of Mines, Imperial College,
London in 1981 with a first class degree in mining engineering. Over a
career spanning more than 25 years, Mr. Cather has gained extensive
senior level project development experience and management skills in
both open pit and underground operations.

His early career with De Beers provided him with extensive underground
mining and mine development experience.  His expertise and experience
developed further during 10 years in a senior management role at
Redland Aggregates Ltd, after which, as Development Director of Miller
Mining, Mr. Cather spearheaded the development of a portfolio of
open-cast coal mines.  Mr. Cather spent the next 9 years with Anglo
American where, as Technical Director of Anglo American's Industrial
Minerals Division, he was responsible for Tarmac Group (construction
materials in 13 countries), Cleveland Potash (fertiliser operations in
the UK) and Copebras Brazil. Since 2006, Mr. Cather has acted as a
retained mining consultant to Grafton Resources, a London based natural
resources fund with major investments in gold projects in Russia, India
and the Philippines, Brazilian iron ore and a Bulgarian water project.

Corporate Development

European Goldfields is reviewing its corporate structure with a view to
facilitating better access to, and servicing of, the UK and
international capital markets. The Company has appointed Goldman Sachs
International to assist with this review which will include the
evaluation of a potential upgrade of the current AIM Listing to the
Main Market of the London Stock Exchange and a potential
re-domiciliation of the Company. Lazard & Co., Limited will also
provide financial advice in connection with such evaluation.

Appendix A

Notes to Mineral Resource and Reserve Statement

(1)     The Company owns the Stratoni, Skouries and Olympias projects
through Hellas Gold, a 95% owned subsidiary.

(2)     Mineral Reserves and Mineral Resources are classified in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum's 'CIM Standards on Mineral Resources and Mineral Reserves, Definitions and
Guidelines' and with Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the 'JORC Code') as per the
requirements of Canadian National Instrument 43-101 ('NI 43-101').

(3)     All quoted Mineral Resources are inclusive of the Mineral
Reserves.

(4)     Disclosure of Mineral Resources and Mineral Reserves (effective
date 14 July 2011) for Hellas Gold's Skouries deposit is derived from a
technical report dated 14 July 2011 prepared by independent consultants
URS Scott Wilson Ltd, under the supervision of David Smith (of URS
Scott Wilson Ltd) and Patrick Forward, the Company's Vice President
Projects and Exploration, each 'Qualified Persons' under NI 43-101.
Disclosure of Mineral Resources and Mineral Reserves (effective date 14
July 2011) for Hellas Gold's Olympias deposit is derived from a
technical report dated 14 July 2011 prepared under the supervision of
Patrick Forward, the Company's Vice President, Projects and
Exploration, a 'Qualified Person' under NI 43-101.

(5)     Mineral Reserves are estimated using projected process
recoveries, operating costs and mine plans that are unique to each
property and include estimated allowances for dilution and mining
recovery.

(6)     For further information including data verification, see the
technical reports referred to in Note 4, which may be obtained on
www.sedar.com.

(7)     Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.

(8)     Figures in the tables may not sum due to rounding.

(9)     Mineral Resources and Reserves for the projects have been
calculated based on the following metal prices and cut-off criteria:

 ___________________________________________
|        | Gold |Silver| Lead | Zinc |Copper|
|        |US$/oz|US$/oz|US$/lb|US$/lb|US$/lb|
|________|______|______|______|______|______|
|Olympias|$1,000|$15.0 |$0.68 |$0.68 |   -  |
|________|______|______|______|______|______|
|Skouries|$1,000|   -  |   -  |   -  | $2.5 |
|________|______|______|______|______|______|

Notes to Exchange Rate and Operating Costs

  1. The Company has assumed a Euro to US$ conversion rate of US$ 1.35
     per 1 Euro for all euro denominated costs.
  2. Gold Equivalent Ounces are calculated by taking net revenues
     derived from all metals produced and dividing by the assumed gold
     price. Net revenue is calculated as gross revenue, calculated as
     the product of the market price of each metal and each of the
     payable metals contained in shipped products, less realisation
     costs which include costs incurred post mine gate, including
     freight, marketing expense, deductions and smelting and refining
     costs (TC/RC's). The Company has assumed a gold price of US$1,000
     per ounce, a silver price of US$20 per ounce, a copper price of
     US$3.25 per pound, a zinc price of US$1,500 per tonne and a lead
     price of US$1,500 per tonne.
  3. Cash Operating Costs include direct cash costs of producing paid
     metal, incorporating mining, processing, environmental and mine
     site general and administrative costs up to mine gate.

About European Goldfields

European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade
lead/zinc/silver mine in North-Eastern Greece. European Goldfields will
evolve into a mid-tier producer through responsible development of its
project pipeline of gold and base metal deposits at Skouries and
Olympias in Greece and Certej in Romania. The Company plans future
growth through development of its highly prospective exploration
portfolio in Greece, Romania and Turkey.

Forward-looking statements

Certain statements and information contained in this document, including
any information as to the Company's future financial or operating
performance and other statements that express management's expectations
or estimates of future performance, constitute forward-looking
information under provisions of Canadian provincial securities laws.
When used in this document, the words 'anticipate', 'expect', 'will',
'intend', 'estimate', 'forecast', 'planned' and similar expressions are
intended to identify forward-looking statements or information.
Forward-looking statements include, but are not limited to, the
estimation of mineral reserves and resources, the conversion of mineral
resources to mineral reserves, the timing and amount of estimated
future production, costs and timing of development of the Skouries and
Olympias projects, permitting time lines and expectations regarding
metal recovery rates. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.

Forward-looking statements are based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the date
that such statements are made, but which may prove to be incorrect.
Management believes that the assumptions and expectations reflected in
such forward-looking statements are reasonable.  Assumptions have been
made regarding, among other things: the Company executing its
exploration and development plans in accordance with its budgets; the
Company being able to obtain sufficient financing when required and on
reasonable terms; the Company being able to convert existing Mineral
Resources into Proven or Probable Mineral Reserves; that Proven and
Probable Mineral Reserves can be economically exploited based on
management's anticipated operating and capital costs; applicable
environmental and other laws and other regulations not being amended;
key management continuing to serve in their respective roles with the
Company; title to the Skouries and Olympias projects not being
challenged; there being no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions,
damage to equipment or otherwise and no adverse changes occurring to
the price of metals that might adversely affect the prospects for
developing and operating the Skouries and Olympias projects or which
might make it uneconomic to proceed with the planned development.

The Company cautions the reader that such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual financial results, performance or achievements of
the Company to be materially different from its estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other
factors include, but are not limited to: changes in the price of gold,
base metals or certain other commodities (such as fuel and electricity)
and currencies; uncertainty of mineral reserves, resources, grades and
recovery estimates; uncertainty of future production, capital
expenditures and other costs; currency fluctuations; financing and
additional capital requirements; the receipt in a timely fashion of any
further permitting for the Company's projects; legislative, political,
social or economic developments in the jurisdictions in which the
Company carries on business; operating or technical difficulties in
connection with mining or development activities; the speculative
nature of gold and base metals exploration and development, including
the risks of diminishing quantities or grades of reserves; the risks
normally involved in the exploration, development and mining business;
and risks associated with internal control over financial reporting.
For a more detailed discussion of such risks and material factors or
assumptions underlying these forward-looking statements, see the
Company's Annual Information Form for the year ended 31 December 2010,
filed on SEDAR at www.sedar.com. The Company does not intend, and does not assume any obligation, to
update or revise any forward-looking statements whether as a result of
new information, future events or otherwise, except as required by law.

***

Goldman Sachs International is acting exclusively for the Company and
no-one else in connection with the Company's corporate structure review
and will not regard any other person as its client in relation to that
review or any transaction that may result from it and will not be
responsible to anyone other than the Company for providing the
protections afforded to its clients, or for providing advice in
relation to that review, the contents of this announcement or any
transaction, arrangement or other matter referred to herein.

None of Goldman Sachs International or any of its affiliates or any of
its directors, officers, employees, advisers or agents accepts any
responsibility or liability whatsoever for, or makes any representation
or warranty, express or implied, as to the truth, accuracy or
completeness of the information in this announcement (or whether any
information has been omitted from the announcement) or any other
information relating to the Company, its subsidiaries or associated
companies, whether written, oral or in a visual or electronic form, and
howsoever transmitted or made available or for any loss howsoever
arising from any use of this announcement or its contents or otherwise
arising in connection therewith.

***

Lazard & Co., Limited ('Lazard'), which is authorised and regulated in
the United Kingdom by the UK Financial Services Authority, is acting
exclusively for European Goldfields and no-one else in connection with
the Company's corporate structure review and will not be responsible to
any other person for providing the protections afforded to clients of
Lazard nor for providing advice in relation to that review or any other
matter referred to in this announcement. Neither Lazard nor any of its
affiliates owes or accepts any duty, liability or responsibility
whatsoever to any person who is not a client of Lazard in connection
with this announcement, any statement contained herein or otherwise.

The scientific and technical information contained in this press release
has been prepared under the supervision of Patrick Forward, the
Company's Vice President Projects and Exploration.  Mr. Forward is a
'Qualified Person' under NI 43-101. 

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