EGU European Gold

RNS Number:4219M
European Goldfields Ltd
24 January 2008


Immediate Release                                               24 January 2008



                          European Goldfields Limited

                 Over 60% Increase in Revenue in 2007 vs. 2006

24 January 2008 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce that total revenues for 2007 are expected to show an increase of more
than 60% compared to 2006, as a result of higher levels of concentrate sales and
higher metal prices.

European Goldfields' subsidiary Hellas Gold S.A. completed 8 shipments of
concentrates from its Stratoni zinc-lead-silver plant in Northern Greece in Q4
2007 (Q4 2006 - 7), and 26 shipments for the whole of 2007 (2006 - 20). This
translates into an increase of 27% in tonnes of base metal concentrates sold.
Sales from Stratoni were as follows:

                                 Stratoni Sales

                        Q4 2007     Q4 2006   12 Months 2007     12 Months 2006
Sales

Zinc concentrate
(tonnes)                 10,190      10,425          38,152             32,351

- Containing payable:
Zinc (tonnes)*            4,208       4,418          15,890             13,775

Lead concentrate
(tonnes)                  8,004       5,124          23,123             15,780

- Containing payable:
Lead (tonnes)*            5,082       3,329          14,963             10,467

Silver (oz)*            399,271     254,881       1,172,233            818,139


* Net of smelter payable deductions

During 2007 a total of 217,000 wet metric tonnes of ore was milled through the
Stratoni plant. Ore production rates from underground have steadily increased
from an average of 727 tonnes per day in 2006 to 885 tonnes per day in 2007, and
the mine now operates effectively at over 900 tonnes per day. The rate of ore
production is expected to continue to increase and reach 290,000 tonnes in 2008.

In addition, Hellas Gold completed 15 shipments of gold-bearing pyrite
concentrates from its existing stockpile at Olympias in Q4 2007 (Q4 2006 - 3),
and 47 shipments for the whole of 2007 (2006 - 9). This translates into a six
fold increase in tonnes of pyrite concentrates sold. Sales of pyrite
concentrates were as follows:

                        Olympias Gold Concentrates Sales

                        Q4 2007     Q4 2006   12 Months 2007     12 Months 2006
Sales

Gold concentrate (dry
tonnes)                  21,385       3,299          79,552             11,339

Hellas Gold has received payment in 2007 of US$ 2.2 million for the sale of an
additional 23,375 dry tonnes of gold concentrates expected to be recognised in
2008.

European Goldfields expects to publish by 31 March 2008 its financial results
for the three-month period and year ended 31 December 2007.

New Appointments - European Goldfields is also pleased to announce recent
changes in group personnel. At the Corporate level, Tim Morgan-Wynne, the
Company's Chief Financial Officer, has been promoted to Senior Vice President of
European Goldfields Limited. Within Hellas Gold, Mr Mihalis Theodorakopoulos
will focus on the strategic development of the Hellas Gold Business Plan, in
addition to his current responsibilities as Mine Manager. Therefore, Mr George
Stournas, an experienced mining engineer, has been appointed as Production
Manager for the Stratoni mine as part of the ongoing development and
optimisation of Hellas Gold's mining operations.

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 Officer   Tel: +44 (0)20 7408 9534

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

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

RBC Capital Markets:                     e-mail: andrew.smith@rbccm.com
Andrew K Smith / Johanna Virtanen        Tel: +44 (0)20 7029 7882

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 timing and amount of estimated future
production, costs and timing of development of new deposits, 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.
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 Info
rmation Form for the year ended 31 December 2006, 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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