SOURCE: European Goldfields Ltd

June 15, 2010 02:08 ET

European Goldfields Limited: FINAL CREDIT APPROVAL FOR CERTEJ FINANCING

WHITEHORSE, YUKON--(Marketwire - June 15, 2010) -



For Immediate
Release
15 June 2010


European Goldfields Limited

FINAL CREDIT APPROVAL FOR CERTEJ FINANCING

15 June 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European
Goldfields" or the "Company") is pleased to announce that, further to
its press release of 30th March 2010 announcing the signing of a
mandate letter, it has now received formal letters of commitment to
underwrite a US$135 million financing package to part fund the
development costs of the Certej gold-silver Project in Romania
(the"Project").
As previously disclosed, the Mandated Lead Arrangers are
Caterpillar Financial SARL, ING Bank N.V., Investec Bank plc, UniCredit
Bank AG, London Branch and WestLB AG, London Branch, (together the"MLAs").

The structure of the financing package has further been optimised since
the signing of the mandate letter and now consists of an 8 year US$120
million secured, limited recourse debt facility and a US$15 million
secured equipment lease facility. The commitments are on the basis of
detailed term sheets which have been agreed with the Company and a
Technical, Environmental and Social Audit of the Project conducted by
SRK Consulting on behalf of the MLAs.

The terms and conditions of the financing packaging include:

* No hedging that limits upside exposure of the shareholders to
  gold prices

* Security upon the Project assets

* A guarantee from the Company of the debt payment obligations
until such time as the Project achieves completion, by the satisfaction
of certain operational, legal and economic tests

The underwriting commitments of the MLAs are subject to acceptable
legal documentation and customary conditions precedent. The financing
package was oversubscribed by approximately 33%.

European Goldfields is very pleased to have received commitments from
such high quality financial institutions, which demonstrate strong
support for the Certej Project and the Company's wider growth plans.

About European Goldfields

European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade lead/zinc
/silver mine in North-Eastern Greece. European Goldfields will evolve
into a mid tier producer through responsible development of its project
pipeline of gold and base metal deposits at Skouries and Olympias in
Greece and Certej in Romania. The Company plans future growth through
development of its highly prospective exploration portfolio in Greece,
Romania and Turkey.

For further information please see the Company's website at
www.egoldfields.com

For further information please contact:

European Goldfields:     Liberum Capital Limited
Sally Schofield, VP Investor Relations    Simon Atkinson
e-mail: info@egoldfields.com     Michael Rawlinson
Tel: +44 (0)20 7408 9534     Tel: +44 (0)20 3100 2000

Buchanan Communications:   Evolution Securities Limited
Bobby Morse / Katharine Sutton   Rob Collins
e-mail: bobbym@buchanan.uk.com   Tim Redfern
Tel: +44 (0)20 7466 5000   Tel: +44 (0)20 7071 4300

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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