SOURCE: Colombia Goldfields Ltd.

October 26, 2006 17:00 ET

Colombia Goldfields Announces Exercise of Warrants

TORONTO -- (MARKET WIRE) -- October 26, 2006 -- Colombia Goldfields Ltd. (OTCBB: CGDF) (CGL or the Company) today announced the exercise of 3,431,000 common share purchase warrants. The warrants came due on October 14, with an exercise price of US$0.50 per share. As a result of the warrant exercise, CGL received net proceeds of US$1,715,500.

"We are pleased with the confidence demonstrated by the warrant holders in exercising their warrants and further investing in the future of CGL," said Randy Martin, President & CEO, Colombia Goldfields Ltd. "This puts the Company in a strong financial position as we continue to move forward with the consolidation and exploration of our Marmato Project."

About Colombia Goldfields

Colombia Goldfields Limited, through its Colombian subsidiary, Compania Minera de Caldas, S.A., is developing a multi-million ounce gold resource in Colombia's historic Marmato Mountain gold district through a program of property acquisitions, community resettlement and exploration. Following this transaction the company will have 51,996,849 shares outstanding and on a fully diluted basis a total of 61,937,555 securities.

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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