Filing of Technical Report

RNS Number:0572B
European Goldfields Ltd
21 July 2004

For Immediate Release 21 July 2004

European Goldfields Limited

Technical Report on Hellas Gold Properties

European Goldfields Limited (AIM: EGU / TSX-V: EGU) (the "Company") announces
that it has filed with securities regulatory authorities in Canada a technical
report on the properties held by Hellas Gold S.A. ("Hellas Gold") in Greece.

The report, entitled "Technical Review of the Kassandra Mines Properties,
Chalkidiki Prefecture, Greece" dated May 15, 2004 (the "Technical Report"), was
prepared for the Company at its request by A C A Howe International Limited ("
ACA Howe") and Behre Dolbear & Company Inc. ("Behre Dolbear"), who conducted a
review of available technical information on the properties.

The Technical Report was commissioned in connection with the Company's
previously announced intention to potentially acquire additional shares in
Hellas Gold. The Company, through a wholly-owned subsidiary, currently holds 30%
of the issued shares of Hellas Gold on a fully diluted basis.

Hellas Gold's properties are located in the Chalkidiki Prefecture of Northern
Greece. They comprise a group of granted mining licences, covering 314 km2,
approximately 75 kilometres east of Thessaloniki. The properties include the
Olympias and Stratoni mines, both currently on care and maintenance, and the
Skouries copper-gold porphyry deposit.

David Grannell, acting President and Chief Financial Officer, said: "the filing
of the technical report on our Greek assets represents an integral step towards
negotiating the terms of the potential acquisition of additional shares. We
continue to define future work programs and have, in the interim, aligned
ourselves strongly with the Ministry of Development in Greece concerning the
future activity of the Kassandra Mines."

A copy of the Technical Report is available on the Canadian System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

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:
IR/Media Contact:
David Grannell
London Office: +44 (0)20 7408 9534 e-mail: info@egoldfields.com
London Mobile: +44 (0)7703 190652 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.

Abridged Technical Report:

Olympias Mine

The Technical Report states that the historical reserve estimates for the
Olympias mine may be summarised as follows:

Olympias Historical Reserves (1998)

Reserve category Million Tonnes Au (g/t) Ag (g/t) Pb (%) Zn (%)
Proven 8.649* 7.78 94.2 3.14 4.06
Probable 3.148 8.57 143.2 4.80 5.81
Total reserves 11.797 7.99 107.3 3.59 4.52

* Included material stockpiled at surface, including arsenopyrite
stockpiles and the existing tailings.

Initially in-situ resources were estimated with computer software generating a
block model based on a detailed geological interpretation. Reserves were derived
from measured and indicated in-situ resources by applying economic factors
including metal prices, process recoveries and net smelter return to arrive at
an economic cut-off grade which was applied to each stoping block within the
model. The blocks were factorised for anticipated dilution and mining recovery
dependent on the mining category of each block. Due to the selectivity of the
proposed trackless mechanical overhand drift and fill method, a maximum of 3
metres width of internal dilution was allowed. The estimate of reserves formed
part of a Kvaerner Metals' feasibility study conducted in 1998.

Because of changes in economic factors the reserves do not meet the current
criteria for Canadian National Instrument (NI) 43-101 and must be regarded as
historical.

The Technical Report states that the current resource estimates for the Olympias
mine may be summarised as follows:

Olympias Current Resources
Resources category Million Tonnes Au g/t Ag g/t Pb% Zn%
Measured* 10.096 9.03 112.96 3.64 4.89
Indicated 4.432 9.94 164.20 5.41 7.14
Inferred** 1.678 8.34 156.41 5.50 7.22
Total measured and indicated 14.528 9.31 128.59 4.18 5.57
resources

* Includes surface resources.

** Some 874,000 tonnes of inferred resources included in this total and
grading 5.64 g/t Au, 132.60 g/t Ag, 4.90% Pb and 7.47% Zn were external to the
block model utilised for reserve generation.

The Olympias resources were estimated in 1999 as part of a feasibility study
conducted by Kvaerner Metals. The resource estimates conform to NI 43-101 and
may be regarded as current. M Hodgson Bsc MSc FIMM C Eng EurGeol of TVX Hellas
S.A. ("TVX") (the previous owner of Hellas Gold's properties) was the Qualified
Person responsible for the resource estimates quoted above.

The Olympias mine is currently developed to the deepest level by means of a ramp
driven in the footwall of the West orebody. A vertical shaft is in place. At the
time of suspension of operations, material mined from the West orebody was
trucked to a single ore pass that fed an underground crusher. The proposed
mining plan utilises as much of the existing infrastructure as possible. The
existing main ramp will be extended to develop the West orebody and a new
internal ramp will be utilised to develop the East orebody. A second ore pass
will be constructed to serve the crusher station. It is planned to mine the
deposit utilising trackless drift and fill methods at 2,700 tonnes per day. The
projected mine life is 15 years. This information is subject to verification in
a future updated feasibility study.

Skouries Copper-Gold Porphyry Deposit

The Technical Report states that the resource estimates for the Skouries deposit
as of December 1998 may be summarised as follows:

Skouries Resources at 0.4 g/t Au cut-off - December 1998

Resource category Million Tonnes Au g/t Cu%
Measured 180.398 0.83 0.55
Indicated 10.835 0.61 0.47
Inferred 14.822 0.60 0.45
Total measured and indicated resources 191.233 0.81 0.54

The resource estimation of the Skouries deposit was completed as part of a
feasibility study by NCL Ingenieria y Construccion S.A, Steffen, Robertson and
Kirsten ("SRK") and Kvaerner Metals. M Hodgson BSc MSc FIMM C Eng EurGeol of TVX
was the Qualified Person responsible for the resource estimates quoted above.

The resource estimation utilised block modelling. A range of cut-off grades was
applied to blocks within the model. The figure shown above utilised a 0.4 g/t Au
cut-off. Gold price at the time was $300 and copper was US$0.80/lb, though only
the gold grade and not a gold equivalent grade including copper value were taken
into account when setting the cut-off grades. The estimation follows the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") resource criteria
and can be regarded as current, though alternative cut-off grades may be
warranted by current metal prices.

Reserves were also estimated in December 1998, within and beneath a conceptual
pit. The Technical Report states that the historical reserve estimates for the
Skouries deposit may be summarised as follows:

Historical Skouries Reserves

Probable reserves Million Tonnes Au g/t Cu%
Oxide 24.7 0.99 0.57
Sub-level caving 45.4 1.08 0.61
Block caving 57.83 0.68 0.49
Total probable reserves 127.93 0.88 0.55

The reserves quoted above must be regarded as historical as economic factors
have changed since the estimate was made and the reserves do not meet the
criteria for NI 43-101.

The mineral resources and reserves quoted above were verified and audited by
Behre Dolbear and SRK and subsequently, independent companies Kvaerner Metals
and NCL Ingenieria y Construccion S.A have verified and audited the resources
during the preparation of feasibility studies on the deposits.

The Skouries deposit is designed to be mined in three overlapping phases,
commencing with an open pit operation, succeeded by sublevel caving and finally
block caving. The open pit would be mined for 4 years. Beneath the pit, ore
would be extracted from 8 sublevel/front cave horizons, developed at 30 metre
intervals. This phase would overlap the last two years of open pit operation and
continue for a further 7 years. Block caving would be conducted deeper in the
mine. This phase would run concurrently with the sub-level caving for the first
two years, then continue for a further 8 years. Projected production is around
20 to 25,000 tonnes per day. This information is subject to verification in a
future updated feasibility study.

Stratoni Mines

The Stratoni operations comprise the Madem Lakkos and Mavres Petres mines and
the Stratoni Mill.

The Technical Report states that the historical reserve estimates for the
Stratoni mines may be summarised as follows:

Stratoni Operations - Historical Reserves* December 2002 (Mavres Petres)

Reserve category* Million Tonnes Pb (%) Zn (%) Ag (g/t)
Proven 0.867 7.53 9.49 178
Probable 0.775 7.71 11.09 179
Total reserves 1.642 7.62 10.25 179

* Note that reserves were converted from resources utilising economic and
mining factors then in place which would require updating to meet current costs
and thus do not meet the requirements for reserves of NI 43-101.

The Technical Report states that current resource estimates for the Stratoni
mines may be summarised as follows:

Stratoni Operations - Current Resources December 2002

Resource category Million Tonnes Pb (%) Zn (%) Ag (g/t)
Measured 1.346 8.51 10.72 202
Indicated 0.875 8.74 12.56 203
Inferred 0.375 8.00 11.50 180
Total measured and indicated resources 2.221 8.60 11.44 202

The resources quoted above on which the reserve estimates were based and from
which they were derived conform to the NI 43-101 guidelines. The Qualified
Person who estimated the resources for TVX is M Hodgson Bsc MSc FIMM C Eng
EurGeol.

Resources and reserves quoted above were estimated for the Mavres Petres mine in
December 2002, following CIM definition guidelines. However, the reserves were
generated using economic factors that were then current and so now require
updating to reflect current economic conditions to meet current NI 43-101
requirements. The reserve figures quoted above are essentially the reserve
inventory at operations closure and must be regarded as historical. The Mavres
Petres mine has been on care and maintenance since 2002.

Production at Madem Lakkos was being run down in 2002 and is unlikely to reopen.
At the same time, production at Mavres Petres was building up to about 1,200
tonnes per day at the end of 2002. This production was scheduled to continue
through to 2007. This information is subject to verification in a future updated
feasibility study.

Exploration Targets

TVX identified a number of exploration targets in the vicinity of the known
Olympias deposit and elsewhere in the licence areas. Exploration drilling at a
number of these targets encountered encouraging results, but resource drilling
has not been undertaken.

Data Verification

At the request of the Company, Dr C Armstrong and Dr D Patrick of ACA Howe, and
Mr R Parker of Behre Dolbear who are Qualified Persons under National Instrument
43-101, have conducted a review of available technical information on the
Kassandra Mines area of Greece.

Dr Armstrong visited the property and reviewed the geological interpretation and
resource classification methodology on 19th and 20th January 2000, and was
comfortable with both aspects. No substantive changes have since been made. The
resource estimates are still current and meet NI 43-101 requirements.

Mr Parker visited the property between May 6th and May 8th 2004 and carried out
site inspections of the three principal deposits, namely Olympias, Skouries and
Stratoni. The principal features inspected were surface outcrops, surface
facilities and general environmental conditions. During the course of the visit
discussions were held with management, and environmental and exploration staff.

The Technical Report has been prepared in accordance with NI 43-101 guidelines.

The Technical Report is based on documents in ACA Howe's files on the geological
setting, style and geochemistry of mineralisation located on the property and
resource and reserve methodologies. Data provided by Hellas Gold and TVX to the
Company has been reviewed; it comprises incomplete extracts from feasibility
studies and limited historical data. Detailed discussions were held with TVX
geological staff at the time of the ACA Howe visit and subsequently discussions
have been held with M Hodgson, the Qualified Person at TVX.

No independent sampling has been conducted by ACA Howe. ACA Howe has conducted a
detailed analysis of the methodologies used and fully reviewed the database used
in the resource estimation. In ACA Howe's opinion, the work was conducted
professionally to the industry standards in place at the time.

Olympias and Skouries. The mineral resources and reserves quoted in the
Technical Report for Olympias and Skouries were estimated as part of the
feasibility study conducted by Kvaerner Metals. The work was subsequently
verified and audited by Behre Dolbear who concluded that the estimations were
carried out with a high degree of professionalism. The resource and reserve
estimates followed the CIM guidelines currently utilised by NI 43-101, though
because cost and financial factors utilised in reserve generation have changed,
the reserve estimates should only be regarded as historical. SNC Lavalin has
conducted basic engineering studies on the Olympias project subsequent to the
feasibility study, though ACA Howe has not viewed this work.

The strict quality control procedures in place at Olympias and Skouries and the
numerous statistical checks at all stages of the resource estimation processes
ensured that a high standard of data verification was in place at all times.
This was observed during ACA Howe's site visit and discussions with TVX
personnel. The data were verified and audited independently by Behre Dolbear and
SRK. Subsequent feasibility studies by Kvaerner Metals and NGL Ingenieria y
Construccion S.A. involved independent auditing and verification of all data and
procedures on site. ACA Howe has conducted limited checks on the database
against extracts from the feasibility studies and the resource/reserve estimates
provided by TVX and is satisfied that the procedures used were sound and the
results reliable.

Stratoni. The reserves for the Stratoni mines were estimated by TVX and in ACA
Howe's opinion the work met industry standards at the time. These estimations
also followed the CIM reserve/resource guidelines but require updating to meet
current economic conditions to fulfil NI 43-101 requirements, so these estimates
must be viewed as historical.

At the Stratoni mines, solid models of all underground excavations were
generated as standard practice. Some of the remnant resources considered
non-mineable were incorporated into excavation solids. Only samples that fell
inside the geological solid were used in the TVX resource estimations. Prior to
compositing the data for estimation purposes, to ensure that the data was
representative, a review of all drillhole samples within the orebody solids was
undertaken by TVX. Primarily this was to ensure that missing intervals and/or
non-sampled intervals were treated correctly and this process verified the data
during the estimation process. On completion of the grade models, the blocks
were validated both statistically and graphically. The statistical validation
involved comparing the grade distribution of the composites against the grade
distribution of estimated blocks. The mean values should be similar, while the
variability of the block grades should be less due to the smoothing effect of
the interpolation. TVX report that a comparison of the grades showed this to be
the case. The graphical validation consisted of plotting sections and plans
showing drillhole composites and block estimates using the same colour codes.
They reportedly also demonstrated good agreement.

Finally, a drift analysis validation method was employed, whereby the orebody is
divided into slices in different directions. A mean composite grade is then
compared to the mean block grade for each slice. The results are plotted and
compared. Again the block grades were reportedly close, and in each case
illustrated a slight smoothing effect. From the validation work performed, TVX
concluded that the block model represented satisfactorily the geology and grade
distribution observed in the drillholes. ACA Howe has not had access to the raw
data, subsequent to the 2000 visit, in order to check the conclusions and it
does not appear that external, independent data verification has been conducted.
However, ACA Howe was satisfied with the data verification processes that were
in place in 2000.

Other Disclosure

The Technical Report contains, to the extent applicable, (i) details of key
assumptions, parameters and methods used to estimate the mineral resources and
mineral reserves, and (ii) a general discussion of the extent to which the
estimate of mineral resources and mineral reserves may be materially affected by
any known environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues. Reference should also be made to the
Company's News Release dated February 9, 2004 announcing the acquisition by the
Company of a 30% interest in Hellas Gold.

Qualified Persons

Dr C Armstrong B.Sc., Ph.D., FIMM and Dr D Patrick B.SC., Ph.D., FIMM, C.Eng,
F.Aus.IMM of ACA Howe, and Mr R Parker B.Sc. MIMMM, C.Eng. of Behre Dolbear are
the Qualified Persons under National Instrument 43-101 responsible for producing
the Technical Report.

Forward-looking Statements

This news release contains certain forward-looking statements concerning our
future operations, economic performances, financial conditions and financing
plans. These statements are based on certain assumptions and analyses made by us
in light of our experience and our perception of historical trends, current
conditions and expected future developments as well as other factors we believe
are appropriate in the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to a
number of risks, uncertainties and assumptions. Consequently, all of the
forward-looking statements made in news release are qualified by these
cautionary statements, and there can be no assurance that the results or
developments anticipated by us will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on us and
our subsidiaries or their businesses or operations. We undertake no obligation
and do not intend to update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, except as may be
required under applicable law.

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