SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

June 30, 2011 09:00 ET

Colorado Goldfields Inc. Acquires Utah Payday and Rage Uranium Mines; 63 Unpatented Uranium Claims With an Estimated Value Equal to $14,000,000 -- Part 2

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LAKEWOOD, CO--(Marketwire - Jun 30, 2011) - Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announced on June 28, 2011 that it has acquired the Payday and Rage Mines located in San Juan County, Northeast of Monticello, Utah. This acquisition marks a significant expansion into other metals, both "precious" and "exotic," and provides Colorado Goldfields a greatly enhanced ability to capitalize on a wider number of market drivers for price -- both investor economics and manufacturing.

The elevation of the properties is between 5,500 to 6,000 feet with the main drainage area being the East Canyon Wash. The properties enjoy excellent access provided by a two lane county maintained road. The claims are part of the Morrison Formation known for the many valuable deposits of uranium.

The sandstone formation along the East Canyon Wash contains a good grade of Uranium and is easily mineable. Adjacent to the claims, a drift runs 800 feet. A full face of ore ranging from 8 - 12 feet in thickness is average on the properties. The sides and back of the drift indicate ore values ranging from 0.35 to 0.80 Uranium, and up 3% Vanadium.

Furthermore, the ridge to the north of the East Canyon Wash has many notable adits, including Deremo Shaft Mine, Locust Mine, Rim Shaft Mine and the Vanadium Queen, where several thousand pounds of uranium ore were removed from the 1950s thru 1970s.

East Canyon is included within the Lisbon Valley District where, since 1952 until the early 1990s over 85 million pounds of uranium were produced along the flanks of the Lisbon Valley anticline.

The claims are located within 30 miles of White Mesa Mill. The White Mesa Mill is a fully permitted uranium mill with a vanadium co-product recovery circuit, and is the only conventional uranium mill currently operating in the United States. It is located in rural southeastern Utah, near the town of Blanding in San Juan County. Access is by state highway. The Mill has been in operation for over 25 years since its startup in 1980.

Colorado Goldfields acquired the properties in all stock transaction consisting of 125,000,000 shares of 1-year restricted Class A Common Stock and 125,000,000 shares of 2-year restricted Class A Common Stock.

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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: CGFIA) (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 CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.

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.

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