EGU European Gold

RNS Number:4859M
European Goldfields Ltd
22 November 2006


For Immediate Release                                  22 November 2006


                          European Goldfields Limited

              Olympias Gold Concentrates Sold to Celtic Resources


22 November 2006 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce that its subsidiary Hellas Gold S.A. has entered into an off-take
agreement with a subsidiary of Celtic Resources Holdings Plc (AIM: CER) for the
sale of an initial 9,000 wet metric tonnes (wmt) of gold bearing pyrite
concentrates previously produced from the Olympias mine in Greece.



This concentrate contains approximately 6,000 oz of gold and is conveniently
located at Hellas Gold's port facility in Stratoni. Shipments are expected to be
completed by the end of Q1 2007, and may continue thereafter for quantities of
up to 120,000 wmt if the initial shipments are successful.



In addition to this 9,000 wmt of concentrates, Olympias benefits from an
existing stockpile of gold concentrates representing a reserve of approximately
258,000 tonnes grading 23.3 g/t gold (containing 193,000 oz of gold).



Hellas Gold has also recently signed an off-take agreement with Euromin S.A. for
an initial 1,000 wmt of concentrates.



Following today's announcement, Hellas Gold has now secured the sale of a total
of 49,000 wmt of Olympias concentrates (containing approximately 35,800 oz of
gold) to four different off-takers - Shandong MIC Biogold Ltd, MRI Trading AG,
Celtic Resources and Euromin - with expressions of interest to sell up to an
additional 232,000 wmt of concentrates if the initial shipments are successful.



Commenting on the new agreements with Celtic Resources and Euromin, David
Reading, CEO of European Goldfields, said: "We are delighted to have signed
these third and fourth off-take agreements for the sale of our gold stockpile at
Olympias. We expect the success of these initial shipments will translate into
additional orders, as already anticipated in our agreements with the off-takers.
This means we should have sold the entire stockpile within the next two 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 is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and
South-East Europe.

Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic projects of Stratoni and Olympias which contain
gold, zinc, lead and silver, and the Skouries copper/gold porphyry body. Hellas
Gold commenced production at Stratoni in September 2005 and selling an existing
stockpile of Olympias gold concentrates in July 2006. Hellas Gold is applying
for permits to develop the Skouries and Olympias projects.

Romania - European Goldfields owns 80% of the Certej gold/silver project in
Romania. European Goldfields is completing a feasibility study for submission to
the Romanian government in Q1 2007, in support of a permit application to
develop the 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

Renmark Financial Communication:                    website: www.renmarkfinancial.com
Tina Cameron                                        e-mail: tcameron@renmarkfinancial.com
Office: +1 514 939 3989



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 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 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 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; 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 2005,
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.


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