EGU European Gold

RNS Number:4631V
European Goldfields Ltd
12 December 2005


For Immediate Release                                           12 December 2005


                          European Goldfields Limited

                   FIRST ZINC SHIPMENT COMPLETED AT STRATONI


European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
its 65%-owned subsidiary Hellas Gold S.A. has completed its first shipment of
2,450 wet metric tonnes of zinc concentrates.


The shipment was carried by a vessel loaded at Hellas Gold's Stratoni port,
commissioned by MDIL (UK) Ltd under the off-take agreements announced on 10
November 2005.


The next shipment for lead/silver concentrates is scheduled in January 2006.


Commenting on the shipment, David Reading, Chief Executive Officer of European
Goldfields, said:


"This first shipment in December is yet another milestone achieved this year,
which follows the award of the Stratoni permits and plant commissioning in
September, the start of underground mining in October and the signing of
off-take agreements in November. Building on the success at Stratoni, we look
forward to making significant progress on our other major gold and base metals
projects of Olympias and Skouries in 2006."


Background on Stratoni


The Stratoni mill commenced production of concentrates in September 2005
following the award by the Greek state of all necessary environmental and mining
permits. Based on historical production levels, the Stratoni mine is expected to
produce consistent grades of 8-10% lead, 8-11% zinc and 200 g/t silver, with
concentrator metal recoveries consistently high at around 90%.


New production from underground started in October 2005.  Production of ore over
the current life of mine is expected to reach the following volumes of ROM:



-           Year 1:             170,000 tonnes
-           Year 2:             250,000 tonnes
-           Year 3:             300,000 tonnes
-           Year 4:             375,000 tonnes
-           Year 5:             400,000 tonnes
-           Year 6:             400,000 tonnes


The total proven and probable reserve at Stratoni is 1.923Mt grading 10.8% zinc,
8.1% lead and 190 g/t silver. For additional information on the resource and
reserve estimates for the Company's projects, please refer to the Company's
Resources & Reserves Declaration at www.egoldfields.com/goldfields/
resources.jsp.



About European Goldfields


European Goldfields Limited is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and the
Balkans.



Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns assets in Northern Greece which consist of three deposits within
70-year mining concessions covering a total area of 317 km(2). The deposits
include the polymetallic projects of Stratoni and Olympias which contain gold,
lead, zinc and silver, and the copper-gold porphyry body referred to as
Skouries. All three deposits have been well defined with over 200,000 metres of
drilling and the completion of feasibility studies and later engineering
studies.



The total proven and probable reserves of these assets are 17.2 Moz on a gold
equivalent basis (65% attributable = 11.2 Moz) from a measured and indicated
resource base of 21.8 Moz gold equivalent (65% attributable = 14.2 Moz).



These assets represent some of the largest defined deposits in Europe. The three
deposits are located within a 10 km radius of each other, making this
effectively a gold and base metals centre. Furthermore, both Stratoni and
Olympias were previously in production and have extensive existing mining and
plant infrastructure and a ship loading facility on the Aegean Sea. Hellas
Gold's assets also include potential revenue generating stockpiles and tailings
located on the surface.



In September 2005, Hellas Gold resumed production at Stratoni following the
award by the Greek state of all necessary environmental and mining permits.
Production of ore is expected to reach 170,000 tonnes by the end of the first
year of production, steadily increasing to 400,000 tonnes per annum by year
five. Hellas Gold is in the process of applying for similar permits for Olympias
and Skouries.



Romania - European Goldfields holds five mineral properties located within the "
Golden Quadrilateral" area of Romania, where it has recently completed an
in-house pre-feasibility study underpinning the value of its 80%-owned Certej
deposit. The Certej deposit hosts measured and indicated resources of 31.4 Mt
grading 2.1 g/t gold and 11 g/t silver for 2.34 Moz of gold equivalent (80%
attributable = 1.88 Moz).



For further information please contact:


European Goldfields:


David Reading, Chief Executive Officer
David Grannell, Chief Financial Officer
Office: +44 (0)20 7408 9534                     e-mail: info@egoldfields.com
Mobile: +44 (0)7703 190 652                     website: www.egoldfields.com


Buchanan Communications:
Bobby Morse / Ben Willey                        e-mail: bobbym@buchanan.uk.com
Office: +44 (0)20 7466 5000
Mobile: +44 (0)7802 875 227


The Sherbourne Group
Forbes West                                    e-mail: forbes@sherbournegroup.ca
Office: +1 416 203 2200


Forward-looking Statements



Certain information included 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 statements." The words "expect", "will", "intend",
"estimate" and similar expressions identify forward-looking statements.
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. 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 worldwide price of gold, base metals or certain other
commodities (such as fuel and electricity) and currencies; ability to
successfully integrate acquired assets; legislative, political 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; and the risks involved in the exploration, development and mining
business. These factors are discussed in greater detail in the Company's
Management's Discussion & Analysis for the year ended 31 December 2004 filed on
SEDAR at www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.






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

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