European Goldfields Limited

European Goldfields Limited

April 03, 2006 08:00 ET

European Goldfields: Appointment Of CFO & VP Operations

WHITEHORSE, YUKON--(CCNMatthews - April 3, 2006) - European Goldfields Limited (TSX:EGU)(AIM:EGU) (the "Company") is pleased to announce the appointment of Mr Timothy Morgan-Wynne as Chief Financial Officer and a director of the Company, effective 1 June 2006. He replaces David Grannell who stepped down on 31 March to pursue other opportunities.

Tim Morgan-Wynne is a Director of the Resources and Energy Group at HSBC Bank plc. He has worked in HSBC's mining sector corporate finance team since 1997, and has gained a broad experience of corporate finance and capital markets on transactions involving companies in the UK, Europe, North America and South Africa. He is a graduate of St. John's College, Cambridge and a member of the Institute of Chartered Accountants in England and Wales.

The Company is also pleased to announce the appointment of Neil Hepworth as Vice President, Operations of the Company. Neil joined the Company in June 2006 as Senior Mining Engineer and initially focused his attention, with the team at Hellas Gold, on the launch of mining operations at Stratoni and the completion of studies for input into the business plans recently submitted to the Greek State.

Neil Hepworth has over 20 years' experience as a mining engineer, most recently with Somincor (Neves Corvo Mine in Portugal). His expertise in underground mining with backfill will be central to developing the Company's major gold and base metals projects of Skouries and Olympias in Greece. Neil will also manage the completion of feasibility studies on the Company's Certej project in Romania.

Commenting on the appointments, David Reading, Chief Executive Officer of European Goldfields, said: "We are delighted to welcome Tim Morgan-Wynne to our team. He has strong credentials as a financial executive and has extensive due diligence, financing and M&A experience.

"Neil Hepworth and the Hellas Gold team successfully launched production at Stratoni in September 2005 and we are confident that they can repeat this success at Skouries and Olympias. Neil has strong credentials as a mining engineer and mine operator. This makes him a solid addition to our executive team.

David Grannell has been with us since 2003 and his contribution has been instrumental in turning around the company, developing our Greek assets and cementing our key partnership with Aktor. We thank David for his significant contribution and wish him the best of success in his new ventures."

Tim Morgan-Wynne added: "European Goldfields has entered into a very exciting period of its development, with production having commenced in Greece as well as the recent submission of the business plans for the major gold projects. I believe that European Goldfields has the assets to become one of the largest base and precious metal mining companies in Europe and I look forward to joining what I consider to be a dynamic team with a proven track record."

Mr. Morgan-Wynne, aged 38, is not a director of any other company and there are no other matters under paragraph (g) of Schedule 2 of the AIM rules to be disclosed.

About European Goldfields

European Goldfields Limited is a resource company involved in the acquisition, exploration and development of mineral properties in Greece, Romania and the Balkans.

Greece - The Company holds a 65% interest in Hellas Gold S.A. ("Hellas Gold"). Hellas Gold owns assets in northern Greece which consist of three deposits within 70-year mining concessions covering a total area of 317 km2. The deposits include the polymetallic projects of Stratoni and Olympias which contain gold, lead, zinc and silver, and the copper/gold porphyry body referred to as Skouries. All three deposits have been well defined with over 200,000 metres of drilling and the completion of feasibility studies and later engineering studies.

The total proven and probable reserves of these assets are 7.6 Moz gold, 65.8 Moz silver, 0.7 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured and indicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0 Mt copper, 0.8 Mt lead and 1.1 Mt zinc (65% attributable).

These assets represent some of the largest defined deposits in Europe. The three deposits are located within a 10 km radius of each other, making this effectively a gold and base metals centre. Furthermore, both Stratoni and Olympias were previously in production and have extensive existing mining and plant infrastructure and a ship-loading facility on the Aegean Sea.

Hellas Gold's assets also include potential revenue-generating stockpiles of gold concentrates.

In September 2005, Hellas Gold resumed production at Stratoni following the award by the Greek State of all necessary environmental and mining permits. Hellas Gold is in the process of applying for similar permits for Olympias and Skouries, having met its first milestone by submitting business plans to the Greek government in January 2006.

Romania - The Company holds five mineral properties located within the "Golden Quadrilateral" area of Romania, where it has recently completed an in-house pre-feasibility study underpinning the value of its 80%-owned Certej deposit. The Certej deposit hosts measured and indicated resources of 31.4 Mt grading
2.1 g/t gold and 11 g/t silver for 2.2 Moz gold and 11.0 Moz silver (80% attributable).

Resources & Reserves Parameters

For additional information on the resource and reserve estimates quoted in this news release, please refer to the Company's Resources & Reserves Declaration at Patrick Forward, General Manager, Exploration of the Company, was the Qualified Person under Canadian National Instrument 43-101 responsible for reviewing the disclosure of resource and reserve estimates quoted in this news release.

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