SOURCE: Colorado Goldfields Inc.

November 18, 2008 08:00 ET

ALERT: Silver @ 1.5-31.0 oz/ton Follows Gold Discovery Breakthrough by Colorado Goldfields Inc.

LAKEWOOD, CO--(Marketwire - November 18, 2008) - (OTCBB: CGFIA) As reported by Colorado Goldfields in the Company's recently filed press release of November 11, 2008, the results of the NITON XRF analysis confirm that mineralization from Gold King B Vein of the Gold King Mine contains gold grades ranging from 1.3 - 3.4 oz/ton -- considered exemplary high-grade gold.

More than that, silver grades were revealed to be 1.5 - 31.0 oz/ton. Charles Johnson, of Thermo Scientific exclaimed, "Better silver numbers I have never seen!"

In addition to historic production of 305,000 ounces of gold, the Gold King Mine also produced 3.4 million ounces of silver. The Mayflower Mine, one of Colorado Goldfields' other properties, historically produced 12.3 million ounces of silver. The total inferred resource for the Gold King Mine, including the Gold King Extension is 405,000 ounces of gold, and 3.7 million ounces of silver.

"The Company's goals were to confirm historically reported mineralization, expand upon that mineralization, and to assess the attitude and continuity of the structures (veins) in the trend. We are delighted we were successful in all three endeavors. The success of the 2008 diamond drilling program, along with the high-grade gold and silver indications returned by the Niton XRF analyses, offers a very optimistic outlook to Colorado Goldfields for realizing production of gold and silver, and opens the door for new discoveries on its home turf in Silverton, Colorado," said Lee Rice, President and CEO of Colorado Goldfields.

2008 Progress Highlights for Colorado Goldfields Inc.:

--  Purchase of Long Year 34 diamond drill rig and 1,000 feet of size NQ
    drill rod
    
--  Purchase of essential mining equipment; (13) Gardner-Denver 83
    jacklegs, (14) Gardner-Denver 83 stopers, a 1.25 cubic yard LHD, a 6 ton
    capacity mine truck, and an underground mine tractor
    
--  Gold King Extension drilling totaled 3,523 feet (1,074 m) in three
    diamond drill holes
    
--  Confirmed geologically positive and favorable structural
    interpretation of subsurface; parallel vein zones containing visible
    mineralization on a NE-SW trend from historical Gold King Mine workings
    
--  Completed logging, sampling, and storage of Gold King Extension core
    
--  409 multi-element analyses and fire assays pending report from Skyline
    Laboratories in the coming weeks
    
--  Received validation of water treatment success from multi-agency study
    at Gold King Mine site
    
--  Added strength to the Company by the appointment of new Board Member
    Norman Singer, new President and CEO Lee R. Rice, and new Director of
    Operations John Ferguson.
    

Results from the Niton XL3t Analyzer testing performed on the Gold King Mine Extension mineralized segments of the 'B' Vein over a 2.4 foot drill width are set forth below. (Parts per million have been converted to ounces per ton and are shown for ease of presentation.)

                      Depth   Silver  Silver    Gold     Gold
            Hole ID   (ft)    (ppm)  (oz/ton)   (ppm)  (oz/ton)
            -------  ------  -------  -------  ------  -------
            CG08-01   639.6  1,062.0     31.0   116.1      3.4
            -------  ------  -------  -------  ------  -------
            CG08-01   640.5    472.0     13.8    69.8      2.0
            -------  ------  -------  -------  ------  -------
            CG08-01   639.2    155.0      4.5   114.3      3.3
            -------  ------  -------  -------  ------  -------
            CG08-01   640.4     72.5      2.1    64.9      1.9
            -------  ------  -------  -------  ------  -------
            CG08-01   641.6     63.8      1.9    78.5      2.3
            -------  ------  -------  -------  ------  -------
            CG08-01   640.9     58.3      1.7    69.0      2.0
            -------  ------  -------  -------  ------  -------
            CG08-01   641.2     54.4      1.6    61.6      1.8
            -------  ------  -------  -------  ------  -------
            CG08-01   639.8     50.2      1.5    43.1      1.3
            -------  ------  -------  -------  ------  -------

Source: Colorado Goldfields Inc. field testing, November 7, 2008, Silverton, Colorado using Thermo Scientific NITON® XLt x-ray fluorescence (XRF).

--  Results are reported in parts per million.  To convert parts per
    million to troy ounces per short ton, divide by 34.2857
--  Sample analyses were performed on whole rock drill core with no prep
--  Analysis duration was 120 seconds
--  The Niton XL3t uses 80 MHz real-time digital signal processing
    

Qualified person:

One of the qualified persons responsible for overseeing and reviewing the technical data is Lee R. Rice, President and CEO of Colorado Goldfields Inc., and Registered Professional Engineer in Colorado. The technical information prepared for disclosure in this news release has been read and approved by Mr. Rice.

Colorado Goldfields' Dividend:

On Friday, October 17, 2008, the Company's Board of Directors authorized a 30% (thirty percent) stock dividend (payable in additional shares of common stock), of the Company's Common Stock. The Stock Dividend Pay Date to stockholders will be on Wednesday, November 26, 2008. The Company reminds shareholders that they need to be a shareholder on or before the close of trading November 26, 2008 to receive the dividend.

About Colorado Goldfields Inc.

Colorado Goldfields Inc. (OTCBB: CGFI) http://www.cologold.com, is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

The Company has made available a current CGFI Fact Sheet in PDF format at http://www.cologold.com/s/pdfs/CGFIFactSheet.pdf. An audio presentation of the CGFI 2009 business plan is available on the web at http://www.cologold.com/s/multimedia/audiopresentation.wmv. The most recent live investor conference (of September 4, 2008) is available at http://www.cologold.com/s/audio/CGFI_Live_Investor_CC.wma.

Notice regarding forward-looking statements

This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

  • Contact:
    Brad Long
    Director of Investor Relations
    Colorado Goldfields Inc.
    866-579-2434
    303-984-0524
    10920 W. Alameda Avenue, Suite 207
    Lakewood, CO 80226
    http://www.cologold.com