EGU European Gold

RNS Number:3486F
European Goldfields Ltd
09 October 2007




For Immediate Release 9 October 2007

                          European Goldfields Limited

                        Certej Reserves Increased by 20%

                       Life-of-Mine Extended by Two Years

9 October 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce a 20% increase in gold reserve ounces for the Certej project, which can
now be reported as follows:

                                Certej Reserves

                   Million  Average Gold   Million    Average Silver   Million 
Reserve Category   Tonnes    Grade (g/t)   Ounces Gold  Grade (g/t)    Ounces 
                                                                       Silver

Probable            32.8         2.0           2.1         11.4          12.0
                
Note: Reserve based on pit optimisation using a gold price of $425/oz and a
silver price of $7/oz.

The new reserve results from a better conversion of resources into reserves,
combined with increased resources (see below), and is based on the production of
a gold-bearing concentrate followed by the production of gold and silver as dore
on site by means of the Albion Process. The previous reserve estimate published
in April 2006 was based on the less-economical development option involving the
direct sale of a gold-bearing flotation concentrate.

The better conversion from resources to reserves reflects improved metallurgical
recoveries following completion of extensive bulk continuous metallurgical
test-work, an in-house pre-feasibility study and subsequent pit optimisation and
pit design work by RSG Global Consulting Pty Ltd ("RSG Global"), which included
a geotechnical drilling programme designed by Golder Associates of the UK.

The Albion Process is a combination of ultra-fine grinding of concentrates and
oxidative leaching at atmospheric pressure. The liberated gold and silver is
then recovered as dore by the conventional Carbon in Leach ("CIL") process.

The deposit will be mined by open pit methods with a strip ratio of 3.1:1. The
project will involve the mining and processing of 3.0 million tonnes of ore per
annum over at least eleven years, compared to the nine-year mine life under the
previous reserve estimate. This is expected to yield approximately 160,000 oz of
gold and 820,000 oz of silver per year in dore.

Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are delighted to report a 20% increase in gold
reserve ounces and in mine life at Certej. The new reserve estimate confirms
that the Certej project is robust at $425/oz gold. Our four projects in Greece
and Romania now contain reserves of almost 10M oz of gold, 78M oz of silver,
0.8M tonnes of copper and 1.6M tonnes of combined lead and zinc."

Increase in Certej Resources

European Goldfields is also pleased to announce a 9.2% increase in gold resource
ounces for its Certej project in Romania, which can now be reported as follows:

                                Certej Resources

Resource    Million   Average Gold    Million Ounces  Average Silver Million Ounces
Category    Tonnes      Grade (g/t)           Gold     Grade (g/t)         Silver

Measured         3.9           2.3            0.3              5            0.7
Indicated       37.6           1.9            2.3             11           13.7
Measured +
Indicated
(total)         41.5           2.0            2.6             11           14.3
Inferred
(East/West
Domains)         3.4           1.6            0.2              4            0.4
Inferred
(Far
West/            3.8           1.4            0.2              8            1.0
Central
Domains)
Inferred
(total)         7.1           1.5            0.3              6            1.4

Note: At a 0.8g/t Au lower cut-off grade. Uniform conditioning and a 12.5mE x
6.25mN x 2.5mRL selective mining unit reported for the west and eastern domains
and ordinary kriging for the far west and central domains. The previous resource
estimate was quoted at a 1.0g/t Au lower cut-off grade; however, the 9.2%
increase in gold resources is calculated using a comparable lower cut-off grade
of 0.8g/t Au. Small numeric differences may occur due to number rounding.

The new resource follows the completion of a programme of in-fill drilling of
inferred resources and also incorporates data from holes used for geotechnical
work and metallurgical sampling. The new drilling also identified higher grade
mineralisation on the southern flank of the west domain of the deposit.

Harry Warries, Ben Palich and Jan de Visser of independent consultants RSG
Global have reviewed this news release and were the Qualified Persons under
Canadian National Instrument 43-101 responsible for preparing the updated
resource and reserve estimates for the Certej deposit quoted above. A technical
report from RSG Global will be filed on SEDAR (www.sedar.com) within the next 45
days.

Background Information on Certej

Capital and operating costs - Total capital costs for the Certej project are
currently estimated at $111 million for the purchase of mining equipment and
land, and the construction of a process plant, tailings and other
infrastructure. However, European Goldfields is investigating "through the
fence" oxygen supply, which would save some $23 million of oxygen plant capital.
The mining costs are currently estimated at $1.23/tonne of material mined, and
the processing costs are estimated at $9.09/tonne of ore processed. These
estimates will be updated once the full feasibility study on Certej is completed
(see below).

Technical feasibility study submitted - In March 2007, European Goldfields
submitted a Technical Feasibility Study ("TFS") to the Romanian government, in
support of its permit application to develop the Certej project.

The metallurgical process design is based on extensive comminution and flotation
testwork to produce a gold bearing concentrate and then processing by means of
the Albion Process. The project is expected to yield an average of 308,000
tonnes of flotation concentrate per annum with high grades ranging between 17-19
g/t gold and 80-130 g/t silver (depending on the source of the ore in the
deposit), with a flotation gold recovery of approximately 90%, followed by an
Albion gold recovery of approximately 90%, resulting in a total process gold
recovery of 81%. This is expected to yield approximately 160,000 oz of gold and
820,000 oz of silver per year in dore.

The residues from the flotation and gold plants will be disposed of in two
separate but adjoining tailings management facilities.

Albion Process Technology achieved 90% gold recovery in continuous pilot plant
tests - European Goldfields is currently completing an extensive metallurgical
testwork programme using the Albion Process at the facilities of
Hydrometallurgical Research Laboratories Testing ("HRL") in Australia. Small
scale batch tests had achieved gold recoveries of 90-93% and established the
optimum conditions for the continuous pilot plant testwork required to prove the
amenability of the Albion Process for the Certej concentrate.

A Phase 1 pilot scale test was carried out which confirmed that gold extractions
in excess of 90% could be achieved on a continuous basis at sulphur oxidation
rates in the Albion Process of around 70%. The testwork also confirmed the
consumable levels were in the expected range.

A programme of flotation concentrate grade optimisation work was then undertaken
and on completion a second Phase 2 continuous pilot plant run was completed in
June 2007. This confirmed the high gold extractions of 90% achieved in the Phase
1 run and that the flotation concentrate is amenable to treatment by the Albion
Process. A continuous CIL pilot plant was then run for 41/2 days on the product
from the Phase 2 Albion Process run. Further optimising work and equipment tests
by vendors are also nearing completion and a final design report will then be
issued by Core Resources and Xstrata Technology allowing an engineering design
company to calculate costs for the bankable feasibility study.

During the testwork campaign at HRL, a large batch scale Albion test was
completed on the concentrate from the West ore zone of the Certej deposit which
had previously proved to be uneconomic to processing using the Albion Process.
This work demonstrated that by applying a slightly higher oxidation rate, a gold
recovery of 90% could also be achieved from the West ore zone. This is a very
positive result as it could increase the operating life of the Albion Process by
at least three years.

A definitive mineralogical study describing the four ore zones of the Certej
deposit was completed by Amtel of Canada which indicated that there is potential
for increasing flotation gold and silver recoveries above those achieved in the
laboratory scale tests.

Environmental impact study nearing completion - In 2006, European Goldfields
completed all the necessary Environmental Impact Assessments (Levels I and II)
and a Social Impact Assessment Study in support of its permit application to
develop the Certej project.

Work is now progressing well on the Certej environmental impact study ("EIS"),
which is due for completion in October 2007 after some contributory studies are
finalised. The EIS will have been carried out over a period of a year to cover
the four seasons for accumulating certain required base line data. The EIS is a
detailed multi-discipline study assessing the environmental, social and health
impacts of the project on the affected area.

Full feasibility study to be completed by Q1 2008 - Once the EIS is completed,
European Goldfields expects to complete a full feasibility study, which will be
used for internal approval and presentation to banks and other sources of
potential financing of the project. The full feasibility study is scheduled for
completion in the first quarter of 2008.

A contract to undertake an engineering study of the process plant and associated
infrastructure has been awarded to Aker Kvaerner Engineering Services. This will
include the final results of the completed Albion Process testwork programme,
the design criteria package for the Ultra Fine Grinding IsaMill and the leaching
process with the associated costs. Site visits have been undertaken to gather
the additional design and site data needed to produce the definitive cost
estimate and study.

Clear path to permitting - European Goldfields has established a clear path to
applying for permits to develop the Certej project, having already submitted the
TFS to the Romanian government in March 2007, which will be followed by the
submission of the EIS in the fourth quarter of 2007.

In September 2006, European Goldfields announced that the Hunedoara County
Council had issued a General Urbanisation Certificate for the Certej project.
The certificate confirms the designation of Certej as an industrial mining area
and confirms local community support for the project. This important milestone
is the first official step in the permitting process for Certej.

All mining permits and a detailed urbanisation plan are expected by mid-2008
following a standard public consultation process with the local community.

About European Goldfields
European Goldfields Limited 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 95% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic operation at Stratoni, the Olympias project which
contains gold, zinc, lead and silver, and the Skouries copper/gold porphyry
project. Hellas Gold commenced production at Stratoni in September 2005 and
commenced 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 submitted in March 2007 a technical feasibility
study to the Romanian government, in support of a permit application to develop
the project.

For further information please contact:

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

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

Renmark Financial Communication:        e-mail:
                                        nmurraylyon@renmarkfinancial.com
Neil G. Murray-Lyon                     Tel: +1 514 939 3989

Evolution Securities                    e-mail:
                                        simon.edwards@evosecurities.com
Simon Edwards / Neil Elliot             Tel: +44 (0)20 7071 4300

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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