SOURCE: Colorado Goldfields, Inc.

March 25, 2008 06:30 ET

Colorado Goldfields Signs Agreement to Resume Drill Program in Colorado

LAKEWOOD, CO--(Marketwire - March 25, 2008) - Colorado Goldfields, Inc. (OTCBB: CGFI) (the "Company") today announced the signing of a contract with Godbe Drilling, LLC of Montrose, Colorado for the resumption of drilling at the Gold King and Mogul properties in San Juan County, Colorado. The contract calls for a minimum of 7000 feet of exploration drilling.

The drill program is the planned resumption announced in late 2007, which was suspended due to the onset of inclement winter weather conditions. The drilling contractor plans to be on site in July 2008 and intends to use a truck mounted Longyear 44 drill rig. The proposed drill core size is HQ core.

Todd Hennis, President of Colorado Goldfields Inc., states: "Our Company has successfully secured a drilling contractor with extensive experience in the San Juan Mountains of Colorado. This fact, together with the availability of a larger drill rig than previously employed, means we can expect to see the results of the planned drilling program within a very reasonable timeline. We particularly look forward to drilling a promising, but previously undrilled, part of the Gold King Mine, together with the first known surface drilling of the Mogul property. 2008 looks to be a very busy year for us on the San Juan properties and elsewhere. This news, along with our previously announced proposed acquisition of a majority interest in Besmer, S.A. de C.V. of Mexico, should lead to further and interesting developments in both these areas."

Further to this news, Company management has stated that it intends to raise capital through the private sale of common stock within the next couple of months in order to fund the planned 2008 drilling program, potential acquisition of Besmer and operating expenses during the Company's exploratory stage. No assurance can be made that the Company will be successful in raising adequate funds.

Colorado Goldfields Inc.
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Todd C. Hennis, President

About Colorado Goldfields, Inc. (OTCBB: CGFI)

Colorado Goldfields is a Denver-based junior exploration and mining development company exploring for significant deposits in Colorado. Our strategy involves a results-oriented approach towards exploration research, supported by a scaled expansion of field operations on carefully selected assets. Colorado Goldfields is focused on working in proven gold camps; on projects which have multiple deposit discovery potential and by utilizing leading edge exploration tools and modern geophysics techniques. Our business model in Colorado provides a unique combination of advanced, former producing properties with excellent exploration and production potential and a modern 500 to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. Recently the Company has indicated plans to deploy a similar business model in Mexico. With an experienced management team at the helm, Colorado Goldfields is poised for growth in 2008.

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 include 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 event 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.

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