RNS Number:6542Z
European Goldfields Ltd
11 June 2004


11 June 2004


  European Goldfields Completes #10 Million Private Placement with Commerzbank

           Proceeds Will Be Used to Increase Interest in Hellas Gold

European Goldfields Limited (AIM: EGU / TSX-V: EGU) (the "Company") is pleased
to announce that it has completed its previously announced non-brokered private
placement with Commerzbank AG of 5,882,000 common shares at a price of #1.70
(Cdn$4.18) per shares for total subscription proceeds of #10,000,000 (Cdn$
24,586,760). As a result of the private placement, Commerzbank's shareholding in
the Company has increased from 8.6% to 18.8%.

The Company intends to use the subscription proceeds to fund in part the
possible acquisitions of additional shares in Hellas Gold SA ("Hellas Gold")
from Mr. Dimitrios Koutras and/or Global Mineral Resources S.a.r.l. ( "GMR").
The Company, through a wholly-owned subsidiary, currently holds 30% of the
issued shares of Hellas Gold on a fully diluted basis.  The Company is currently
negotiating the terms of these acquisitions and has not entered into agreements
with either Mr. Koutras or GMR with respect to the same.  The Company cannot
confirm when or if these negotiations will be successfully concluded.  These
acquisitions would be subject to the approval of the TSX Venture Exchange.

On May 27, 2004, the Board of Directors of the Company appointed a special
independent committee for the purposes of advising the Board with respect to the
proposed acquisitions. Its mandate includes selecting a valuator and supervising
the preparation of a formal valuation report on Hellas Gold. Behre Dolbear
International Ltd. has since been retained as valuator for such purposes.

Application has been made for the 5,882,000 common shares to be admitted to
trading on AIM and it is expected that admission will occur on June 16, 2004.

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

For Further Information:

European Goldfields Ltd
David Grannell
London Office: +44 (0)20 7763-7118 e-mail: info@egoldfields.com
London Mobile: +44 (0)77 4681-5902 website: www.egoldfields.com

Buchanan Communications
Tim Thompson / Catherine Miles +44 (0)20 7466 5000


The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release and the information contained herein.



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

END
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