SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

May 10, 2011 07:30 ET

Colorado Goldfields Inc. Announces Accelerated Exploration Plan for Brooklyn Mine; Historic Resource Grows to $21.8 Million in Value

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LAKEWOOD, CO--(Marketwire - May 10, 2011) - Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announces an accelerated exploration plan for its Brooklyn Mine property.

Colorado Goldfields entered into a lease with an option to purchase the property in September 2009. At that time, the historic resource was valued at $13.8 million based on a gold pricing of $950 per ounce. With gold prices at approximately $1,500 per ounce as of May 6, 2011, the current value of just the historic resource is estimated to be $21.8 million.

Colorado Goldfields' personnel have completed an extensive review of all available information concerning the exploration, past production, and the existing historic resource estimate (14,535 oz. gold at $1,400/oz., $20.4 million) of the project area, and have developed a specific and dynamic strategy for exploration -- beginning with the Rainbow Trench.

The Rainbow Trench is the intersection of the Rainbow and Gloucester Veins. Past samples from the Rainbow Trench returned elevated gold and silver values. The trench will be cleaned to expose a fresh rock surface, systemically sampled to verify the reported anomalous gold and silver values and geologically mapped to define the surface expression of the vein systems. "We are targeting grades of 0.30 to 0.90 ounces per ton of gold, however the Brooklyn Vein has produced ore with grades as high as 30.0 ounces of gold per ton," stated Jonathan Moore, Project Geologist.

Company management has determined an approach for the 2011 season that will be directed toward verifying previous sampling work and defining specific core drilling targets for the next phase of the exploration program. Since these activities represent minor surface disturbances and do not require re-opening existing underground portals, a formal prospecting permit and approval cycle will not be required and the work may commence immediately.

The site also contains "wash tailings." Wash tailings are the result of previous operations that screened and washed ore on site. Gold and silver was then recovered by gravity leaving some wash plant tailings piles. The wash tailings will be sampled to determine if they contain commercial gold and silver values that would warrant immediate processing.

Using state-of-the-art software, the Company is developing a three-dimensional model of the Brooklyn Mine. In addition to the usually expected geological results from the work described above, the surveying and geological mapping provides the necessary data to build the three-dimensional model.

"This development strategy was developed to respond specifically to the increase in metals prices. By identifying activities that hold both the highest gold potential and require the least disruption, the Company will be able to move forward far more quickly than originally contemplated," stated C. Stephen Guyer, Chief Financial Officer for Colorado Goldfields.

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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: 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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