European Goldfields Limited

European Goldfields Limited

March 07, 2005 08:01 ET

European Goldfields to Commence Trading on Toronto Stock Exchange


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EUROPEAN GOLDFIELDS LIMITED

TSX, AIM SYMBOL: EGU

MARCH 7, 2005 - 08:01 ET

European Goldfields to Commence Trading on Toronto
Stock Exchange

WHITEHORSE, YUKON--(CCNMatthews - March 7, 2005) - European Goldfields
Limited ("European Goldfields" or the "Company") (TSX:EGU)
(AIM:EGU) is pleased to announce that its common shares have been
approved for listing on the Toronto Stock Exchange (TSX) effective
today. In conjunction with its move to the TSX, the Company's shares
will be de-listed from the TSX Venture Exchange, where the Company's
shares have traded since June 2000. The current stock symbol "EGU" will
remain in effect.

European Goldfields' shares remain listed on the AIM Market of the
London Stock Exchange, where the Company has raised over US$100 million
in 2004.

Commenting on the promotion, David Reading, Chief Executive Officer of
European Goldfields, said:

"European Goldfields has developed rapidly over the past year, with its
acquisition of over 17m ounces of gold equivalent proven and probable
reserves in Greece, as well as having completed significant fund raising
in London in 2004 to finance the company through to production.
Consequently, due to our significant increase in market capitalisation
and the increased liquidity of the company's shares, we are delighted to
move up the company from the TSX Venture Exchange to the TSX, a more
appropriate exchange for our current size and aspirations."

About European Goldfields

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

Greece - European Goldfields holds a 65% interest in Hellas Gold S.A.
Hellas Gold owns assets in Northern Greece which include 70 year mining
concessions over a total area of 317 km2 and three polymetallic
near-production deposits, known as Olympias, Stratoni and Skouries, with
total proven and probable reserves of 17.04Moz of gold equivalent (65%
attributable: 11.08Moz).

The Stratoni and Olympias deposits were previously in production and
benefit from significant infrastructure which includes underground
mining development, two plants and a ship loading facility on the Aegean
Sea. Hellas Gold's assets also include potential revenue generating
stockpiles located on the surface.

Hellas Gold's resources and reserves are allocated amongst the three
deposits as follows:



Measured and Indicated Resources


--------------------------------------------------------------------
Deposit '000t Au Au Ag Ag Ag Pb Pb
g/t Moz g/t Moz as % '000t
Au
Eq
Moz
--------------------------------------------------------------------
Olympias 14,528 9.31 4.35 128.6 60.06 0.94 4.18 607
--------------------------------------------------------------------
Skouries 191,200 0.82 5.03 - - - - -
--------------------------------------------------------------------
Stratoni 2,221 - - 202.4 14.45 0.23 8.60 191
--------------------------------------------------------------------
Total - - - - - - - -
--------------------------------------------------------------------
Total
65%
attri-
butable - - - - - - - -
--------------------------------------------------------------------


--------------------------------------------------------------------
Deposit Pb Zn Zn Zn Cu Cu Cu Total
as % '000t as % '000t As Au
Au Au Au Eq
Eq Eq Eq Moz
Moz Moz Moz
--------------------------------------------------------------------
Olympias 1.12 5.58 810 2.27 - - - 8.69
--------------------------------------------------------------------
Skouries - - - - 0.55 1,043 6.79 11.82
--------------------------------------------------------------------
Stratoni 0.35 11.44 254 0.71 - - - 1.29
--------------------------------------------------------------------
Total - - - - - - - 21.80
--------------------------------------------------------------------
Total
65%
attri-
butable - - - - - - - 14.17
--------------------------------------------------------------------


Proven and Probable Reserves

--------------------------------------------------------------------
Deposit '000t Au Au Ag Ag Ag Pb Pb
g/t Moz g/t Moz as % '000t
Au
Eq
Moz
--------------------------------------------------------------------
Olympias 14,045 8.55 3.86 119.6 54.02 0.83 3.89 547
--------------------------------------------------------------------
Skouries 129,5 0.89 3.71 - - - - -
--------------------------------------------------------------------
Stratoni 1,642 - - 178.5 9.42 0.15 7.61 125
--------------------------------------------------------------------
Total - - - - - - - -
--------------------------------------------------------------------
Total - - - - - - - -
65%
attri-
butable - - - - - - - -
--------------------------------------------------------------------


--------------------------------------------------------------------
Deposit Pb Zn Zn Zn Cu Cu Cu Total
as % '000t as % '000t As Au
Au Au Au Eq
Eq Eq Eq Moz
Moz Moz Moz
--------------------------------------------------------------------
Olympias 1.01 5.16 725 2.04 - - - 7.76
--------------------------------------------------------------------
Skouries - - - - 0.56 725 4.72 8.43
--------------------------------------------------------------------
Stratoni 0.23 10.25 168 0.47 - - - 0.85
--------------------------------------------------------------------
Total - - - - - - - 17.04
--------------------------------------------------------------------
Total
65%
attri-
butable - - - - - - - 11.08
--------------------------------------------------------------------


Romania - European Goldfields holds five mineral properties located
within the "Golden Quadrilateral" area of Romania, where it has embarked
on a resource development and pre-feasibility programme to underpin the
value of its 80%-owned Certej deposit and surrounding satellite bodies.
A current resource estimate outlines measured and indicated resources of
31.4Mt grading 2.1g/t gold and 11.0 g/t silver for 2.34Moz of gold
equivalent (80% attributable: 1.87Moz). This estimate was based on a
selective mining unit model using 6.5 X 12.5 X 2.5 metre blocks and a
1g/t gold cut-off grade.

Further work at Certej now focuses on completing an in-house
pre-feasibility study, the next phase of which will concentrate on
optimising mining and understanding the variable metallurgical
recoveries. Scoping work on pit optimisations will establish the mining
cut-off grades and associated strip ratios for appropriate and optimum
exploitation of the deposit. The metallurgical testwork includes
mineralogical studies into the gold disposition within the
mineralisation, and floatation testwork aimed at maximising gold
recoveries.

Reserve and Resource Parameters

Disclosure of mineral reserves for Hellas Gold's Olympias, Stratoni and
Skouries deposits is derived from a Pre-feasibility Study prepared by
Behre Dolbear & Company, Inc. and filed on SEDAR at www.sedar.com on 29
October 2004 under the category "Technical Report", and European
Goldfields' news release and material change report filed on SEDAR on 30
November 2004.

Disclosure of mineral resources for European Goldfield's 80%-owned
Certej deposit is derived from a resource estimate prepared by RSG
Global Pty Ltd and filed on SEDAR on 29 January 2004 under the category
"Engineering Report", and European Goldfields' news release and material
change report filed on SEDAR on 28 February 2005.

Gold equivalent ounces were calculated using the following metal prices,
representing the average of (i) the average metal prices from 1993 to
2003 (source: LME), and (ii) the average metal prices from 1 January to
30 June 2004 (source: LME): Au: US$369/oz; Ag: US$5.79/oz; Pb:
US$0.31/lb; Zn: US$0.47/lb; Cu: US$1.09/lb. Mining recoveries for
reserves have been taken into account. However, metallurgical and
refinery costs have not been considered when calculating the gold
equivalents.

Forward-Looking Statements

This news release contains certain forward-looking statements concerning
the Company's future operations, economic performances, financial
condition and financing plans. These statements are based on certain
assumptions and analyses made by the Company in light of its experience
and its perception of historical trends, current conditions and expected
future developments as well as other factors the Company believes are
appropriate in the circumstances. However, whether actual results and
developments will conform with the Company's expectations and
predictions is subject to a number of risks, uncertainties and
assumptions. Consequently, all of the forward-looking statements made in
this news release are qualified by these cautionary statements, and
there can be no assurance that the results or developments anticipated
by the Company will be realised or, even if substantially realised, that
they will have the expected consequences to or effects on the Company
and its subsidiaries or their businesses or operations. The Company
undertakes no obligation and does not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable
law.

-30-

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