SOURCE: Colombia Goldfields Ltd.

January 30, 2006 16:01 ET

Caramanta Exploration Update: Colombia Goldfields Identifies Two Large Mineralized Gold Zones

Geological Signatures Similar to the Marmato Mountain Zona Alta Development Project

VANCOUVER, BC -- (MARKET WIRE) -- January 30, 2006 -- Colombia Goldfields (OTC BB: CGDF) is pleased to announce it has identified two large gold and silver zones on the Caramanta exploration project located in the heart of the Marmato Mountain mining district. The newly discovered zones have geological signatures similar to those found on the company's Zona Alta development project on Marmato Mountain, where gold mineralization is hosted by massive sulfide veinlets varying in width from less than a few centimeters to in excess of a meter. The veinlets, composed mainly of coarse pyrite, occupy faults and fissures within andesitic and dacitic porphyry intrusives. The geological similarities between Caramanta and Marmato continue to lend support to the hypothesis that a vast, gold-bearing, six-kilometer geological system may stretch from Marmato Mountain to the newly discovered zones on the Caramanta project.

Marmato, known locally as Colombia's "Golden Mountain," was mined in pre-Colombian times and is reported to have been in continuous production by local artisan miners for over 500 years. The reputed wealth of Marmato is such that Colombia used it as collateral with the British government to secure funding for its war of independence against Spain. Colombia Goldfields recently signed a definitive purchase agreement with Compania Minera de Caldas to develop the Zona Alta region of Marmato, which a previous scoping study delineated a minimum gold resource of 5 million ounces. This report does not meet the current 43-101 reporting standards and a full feasibility study will need to be completed. The resource estimate was based on minimal amount of exploration and development work, leaving a significant portion of the Mountain's potential yet to be examined. Colombia Goldfields is actively consolidating approximately 260 small mines in the Zona Alta. Once this effort has been completed, a single mining license will be applied for which the current mining act now permits. Once consolidated, the company plans to complete a 43-101 compliant, bankable feasibility study that would delineate the full potential of the Zona Alta deposit.

The two mineralized gold zones on Caramanta were identified initially by visiting historical production sites on the concessions. The first, called Bermejal, on Concession 6329, is underlain by a highly altered andesite porphyry stock, similar to the stock at Marmato, in which disseminated pyrite occurs in the porphyry and massive sulfide veins occur in the contact zones with metamorphic rock. Previous sampling by another operator in 1996 reported two channel samples with values of 12 meters grading 2.7g Au/t and a second sample which assayed 12 meters grading 2.5g Au/t. Based on the initial preliminary sampling the zone appears to be oriented in a northwest direction and extends for approximately 1.5 km and is approximately 1 km in width.

The second zone, El Salto 2, is located in the southerly section of Concession 1343. Signs of old mining activity were located including the discovery of an underground tunnel and a large area excavated by water monitors and reported to be a zone of previous gold production. The underlying rocks are again, porphyritic andesite, and similar to those found at Marmato. Mineralization in the area of El Salto 2 follows the same northwest trend of veins at Marmato which formed as tension fractures related to strike-slip compression and sinistral strike-slip movement between two north-south trending regional faults. Along strike are found zones where small miners have been extracting gold by sluicing of outcrops of sulphide-enriched porphyry. The zone appears to be about 1 km by 1 km in size; however it is open to the northwest and to the southeast and these regions have not yet been explored providing significant potential for further expansion of the zone of interest.

Dan Hunter, CEO of Colombia Goldfields stated, "On September 28, 2005, when we announced a three year exploration program on the Caramanta concessions located north of our Marmato development project, we hoped we would find evidence of gold/silver deposits with potential similar to that found at Marmato. Today, I am pleased to announce that our initial work program would seem to exceed our expectations and we believe there is excellent potential for the discovery of additional large gold deposits on the Caramanta exploration project and throughout the Marmato Mountain mining district." Hunter also announced that because of encouraging results received from local assay labs, the samples have been sent to a U.S. based internationally recognized assay lab.

Excellent Infrastructure

Both the Marmato Mountain development project and the Caramanta exploration project have excellent infrastructure providing ample electricity and water for exploration, development and if feasible, production and processing. Both projects are located in the Department of Antioquia, 118 km south of the city of Medellin. Access is excellent, as the Pan American highway crosses the projects from north to south, on the west side of the Cauca River. Electricity and both rural telephone and cellular service is available. The main economic activities of the region are mining, cattle ranching and various agricultural plantations.

The company has established two permanent field camps. One is located at the base of Marmato Mountain and will service the geological requirements of the Marmato development team as they continue to consolidate the claims in the Zona Alta region and the other is located in the El Salto region of the Caramanta project and will be used as the base camp for the exploration team focused on conducting the second phase of exploration work which has already commenced with the objective of identifying diamond drill targets. The current Caramanta program consists of more detailed mapping, further channel sampling and trenching in the two zones of major interest, El Salto 2 and Bermejal. The company is currently evaluating possibilities of expanding their strategic portfolio of exploration projects in the Marmato Mountain mining district.

About Colombia Goldfields

Colombia Goldfields intends to acquire and develop a portfolio of advanced precious metals projects in the Marmato Mountain mining district of the underdeveloped mineral-rich country of Colombia. Previously, the company acquired an option on three advanced projects located approximately 6 kilometers from the base of Marmato Mountain collectively known as the Caramanta exploration project (see 8K dated September 28, 2005). The company can earn a 100% interest in the projects by spending USD $3 million over a three-year period. Subsequent to the Caramanta exploration deal, the company announced a definitive purchase agreement to acquire a 75% interest, in stages, in the Zona Alta development project located on Marmato Mountain by investing USD$ 20.2 million and issuing 7 million shares of its common stock (see 8K dated January 13, 2006). The company has the right to acquire the remaining 25% interest in the Marmato Mountain development project giving it a 100% interest; however the final purchase price to be paid is unknown at this time and will be based on a fair market valuation once a bankable feasibility study has been completed.

Disclaimer

This release contains forward-looking statements that are based on the beliefs of Colombia Goldfield's management and reflect Colombia Goldfield's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Colombia Goldfields with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.

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