American Goldfields Inc.

American Goldfields Inc.

February 28, 2005 18:35 ET

American Goldfields Announces Interest in Gold Properties in Cortez/Pipeline Region



OTC Bulletin Board SYMBOL: AGFL

FEBRUARY 28, 2005 - 18:35 ET

American Goldfields Announces Interest in Gold
Properties in Cortez/Pipeline Region

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - American
Goldfields Inc. (OTCBB:AGFL) announced that it has entered into a formal
agreement to acquire a 100% interest in three Nevada gold properties,
currently controlled by MinQuest Inc. a natural resource exploration
company. The properties collectively consist of 50 unpatented mining
claims covering approximately 1,000 acres of land, all of which is in
the Cortez/Pipeline region of Nevada. Mr. Richard Kern, who joined the
Board of Directors of the Company on May 26, 2004, is the President of
MinQuest. Additional details concerning the nature of the transaction
are provided in this news release, and in the Company's EDGAR filings.

The Crescent Fault property ("Crescent Fault") is located in Eureka
County, three miles from the Mill Canyon deposit drilled by Newmont and
five miles from the Cortez mine. The property consists of 6 unpatented
mining claims covering approximately 120 acres. It has been explored by
Homestake from 1983 to 1986, Noranda from 1992 to 1994, and North Mining
from 1995 to1996, each of whom carried out drilling. Sampling and
mapping has also been carried out. A total of more than 10,000 feet have
been drilled. Mineralization encountered in drilling includes 20 feet
grading 0.11 opt Au, 25 feet grading 0.05 opt Au and 20 feet grading
0.035 opt Au.

The Bankop property ("Bankop") is located in eastern Lander County,
Nevada, approximately 25 miles (40 km) southeast of Battle Mountain and
four miles (6 km) northwest of the Pipeline Mine. The property consists
of 24 unpatented claims covering approximately 480 acres. The property
is within the Bullion district, which includes the Tenabo and Mud
Springs sub districts to the north and the Gold Acres sub district to
the east. The Bullion district was first prospected in the 1860's. Gold
was discovered at Tenabo in 1905 and mined until 1912. Placer gold
mining was conducted at Mud Springs and Mill Creek in the early 1930's
and the first gold was mined at Gold Acres in 1935. Although there has
been no production from the Banktop property to date, recorded
production for the district through 1977 is listed as 300,000 ounces
gold and 1 million ounces silver. The Bankop property has been explored
since 1965. Exploration companies involved include US Mining and
Exploration Company, Phelps Dodge, Placer Amex, Cyprus Exploration
Company, Homestake Mining Company, US Borax, Placer Dome US, Noranda
Exploration, (Hemlo Gold), Uranerz USA, and Minorca Resources. The
company believes this volume of geologic information is a valuable tool
for further study of the property. Regionally, the area is situated
within the Battle Mountain-Eureka Trend, a northwest striking 30 to 40
miles wide (45 to 60 km) belt. This trend defines the second most
productive gold region in the United States. Gold Acres, located three
miles (4.5 km) to the southeast of the Bankop property, is the closest
Carlin type mine. Significant gold intercepts of Carlin style
mineralization occur on the Bankop property around a trench where
sampling detected up to 1.4 g/t gold. Several holes drilled in this area
had a high of 0.7 g/t over 5 feet (1.5 m).

The Bullion Mountain property ("Bullion Mountain") is located in Lander
County, along the Pipeline trend, approximately 6 miles northwest of the
Pipeline deposit and 12 miles southeast of Battle Mountain. The property
consists of 20 unpatented mining claims covering approximately 400
acres, which include a group of claims known as the Bully claims and the
Chief claims. The property may have been prospected as early as the
1870's during the Utah Camp and Cortez boom, and it contains numerous
prospect pits and shallow adits. It lies along the Pipeline fault zone,
and has been previously explored by Placer Dome, Asarco, Hemlo, Lac.
Barrick and Pallum. Drilling has been carried out on the claims by
Asarco and also Placer Dome and Pallum. Surface samples have identified
high grade gold (greater than 0.5 opt) in fault zone in upper plate
rocks. Drilling has encountered 3 meters of 0.204 opt Au on the Bully
claims and 1.5 meters of 0.08 opt Au of 15 meters of 0.02 opt Au on the
Chief claims. The nearby gold deposits of Hilltop and Dean occur within
the same upper plate rocks, and both deposits contain significant high
grade in veins with lower grade gold values hosted by breccia zones.
Exploration work on the Bullion Mountain property has defined three
targets. The property is situated along a trend of numerous large mines
and contains significant gold values.

Regionally, the properties are located within an area which includes the
prolific gold-producing Pipeline/South Pipeline/Cortez Hills/Pediment
deposits whose gold production is estimated at 15.7 million ounces over
a projected 17-year mine life with 88% recovery
( re Cortez Gold Mine).

Management of American Goldfields believes the Crescent Fault, Bankop
and Bullion Mountain properties have significant potential and are
initiating development of further exploration of the projects.

"These properties are exciting mineral exploration properties, in an
area which we believe to be one of the highest-profile mineral regions
in Nevada," said Donald Neal, President and CEO. "We believe that these
projects, together with the Hercules, Imperial Mine and Gilman projects,
comprise a significant foothold in what has historically been one of the
most valuable and concentrated gold districts in the world."

Disclaimer: This announcement may contain forward-looking statements
which involve risks and uncertainties that include, among others,
limited operating history, limited access to operating capital, factors
detailed in the accuracy of geological and geophysical results including
drilling and assay reports; the ability to close the acquisition of
mineral exploration properties, 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.
More information is included in the company's filings with the
Securities and Exchange Commission, and may be accessed through the
SEC's web site at


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