EGU European Gold

RNS Number:3897G
European Goldfields Ltd
19 July 2006


For Immediate Release                                             19 July 2006



                          European Goldfields Limited



                     Further Sale of Olympias Concentrates



European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
its 65%-owned subsidiary Hellas Gold S.A. has entered into an off-take agreement
with MRI Trading AG of Switzerland for the sale of 3,000 wet metric tonnes (wmt)
of gold bearing pyrite concentrates currently located on the surface at Olympias
in Greece. Shipments are scheduled between July and September 2006.



Olympias benefits from an existing stockpile of gold concentrates representing a
reserve of about 258,000 tonnes grading 23.3 g/t gold (containing 193,000 oz of
gold), in addition to substantial underground reserves of gold, lead, zinc and
silver.



In May 2006, European Goldfields announced the signing of a first off-take
agreement with Shandong MIC BioGold Ltd (a subsidiary of Michelago Limited of
Australia (ASX: MIC)) for the sale of at least 18,000 wmt of Olympias
concentrates. The agreement also includes the possible sale of an additional
100,000 dry metric tonnes of concentrates over a three-year period from April
2007.



European Goldfields and Hellas Gold are currently pursuing other similar
opportunities for the sale of the remaining tonnage of concentrates in the
Olympias stockpile over the course of the next few months.



Commenting on the agreement, David Reading, Chief Executive Officer of European
Goldfields, said: "These off-take agreements are a further example of European
Goldfields generating value from the substantial stockpile of gold concentrates
at Olympias.  The off-take agreements also confirm the viability of Phases 1 & 2
of our business plan for Olympias, which involves the sale of concentrates for
the first six years. With no debt and the generation of cash from production at
Stratoni, this additional revenue will assist with the financing of the
development of our major gold and base metals projects of Skouries and Olympias.
"



About European Goldfields



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



Greece - The Company holds a 65% interest in Hellas Gold S.A. ("Hellas Gold").
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 7.8 Moz gold, 65.8
Moz silver, 0.8 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured and
indicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0 Mt copper, 0.8 Mt
lead and 1.1 Mt zinc (65% attributable).



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 revenue-generating stockpiles of gold
concentrates.



In September 2005, Hellas Gold resumed production at Stratoni following the
award by the Greek State of all necessary environmental and mining permits.
Hellas Gold is in the process of applying for similar permits for Olympias and
Skouries, having met its first milestone by submitting business plans to the
Greek government in January 2006.



Romania - The Company holds four mineral properties located within the "Golden
Quadrilateral" area of Romania. The Company recently announced the conversion of
resources into Canadian NI 43-101 compliant reserves for its 80%-owned Certej
project, underpinning the value of the project. The Certej deposit hosts
probable reserves of 27.7 Mt grading 2.0 g/t gold and 11.6 g/t silver for 1.76
Moz gold and 10.35 Moz silver (80% attributable). The Company is now completing
a final feasibility study for submission to the Romanian government by the end
of 2006, in support of an application for environmental and mining permits to
develop the Certej project.



For further information please contact:


European Goldfields:                              website: www.egoldfields.com
David Reading, Chief Executive Officer            e-mail: info@egoldfields.com
Office: +44 (0)20 7408 9534


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


Renmark Financial Communication:     website: www.renmarkfinancial.com
Neil Murray-Lyon                     e-mail: nmurraylyon@renmarkfinancial.com
Henri Perron                         e-mail: hperron@renmarkfinancial.com
Office: +1 514 939 3989



Resources & reserves parameters



For additional information on the resource and reserve estimates quoted in this
news release, please refer to the Company's Resources & Reserves Declaration at
www.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager,
Exploration of the Company, was the Qualified Person under Canadian National
Instrument 43-101 responsible for reviewing the disclosure of resource and
reserve estimates quoted in this news release.



Forward-looking statements



Certain information included in this news release, 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; the successful and
timely permitting of the Company's Skouries, Olympias and Certej 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; and the risks normally involved in the
exploration, development and mining business. These factors are discussed in
greater detail in the Company's Annual Information Form for the year ended 31
December 2005, 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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