Guyana Goldfields Inc.

Guyana Goldfields Inc.

February 29, 2008 10:56 ET

Government of Guyana Supports Mining Projects

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - Guyana Goldfields Inc. (TSX:GUY) announces that the Government of Guyana yesterday issued a press release indicating strong support for the industry and for the Company's advanced stage Aurora project. The press release is copied hereunder.

"Prime Minister Samuel Hinds, with responsibility for the Mining Industry, on the heels of the largest ever budget for Guyana presented to the National Assembly, is pleased to highlight that 2007 was a very good year for mining in Guyana.

The mining industry continues to be one of the main contributors of Guyana's exports and provider of foreign currency and the Office of the Prime Minister expects the industry will grow from strength to strength and will continue as one of the main legs of the country's economy.

The Prime Minister is exuberant and extremely upbeat about the future of the mining industry because of many developments in 2007. The total mining investments was estimated at US$100M with in excess of 12,000 small claims and 4000 medium scale permits issued. The declared production of gold was 246,100 ounces and diamonds 268,925 carats, all from small and medium sized operations.

2007 saw an upsurge in prospecting in the country with over 26 foreign companies actively exploring for minerals, among whom were IAMGOLD, Aranka Gold, Strata Gold Resources, Sacre Coeur Minerals, Gold Port Resources, BHP Billiton and others.

Prime Minister in his introduction to a Guyana paper to be distributed at this year's PDAC in Toronto, spoke of the projection of funding five or more OMAI sized gold properties in Guyana. When asked if he would elaborate further Prime Minister pointed to Guyana Goldfield Inc. one of the most mature and key players in this sector which recently announced a resource estimate of 4.65 million ounces of gold (1.97 million ounces indicated and 2.68 million ounces inferred) at Aurora on the Cuyuni river, an area with a number of other prospects. Prime Minister has been informed of Guyana Goldfield's moves in advancing the development of this project. He has commended Guyana Goldfields embarking on a feasibility study of developing a hydropower site at the nearby Devil's Hole rapids on the Cuyuni River to supply the electricity for a mine at this hinterland undeveloped forest location.

The Government welcomes and fully supports all investment foreign and local, and specifically in the mining sector. Our resounding message is that Guyana is open for business. 2008-02-28"

About Guyana Goldfields Inc.

Guyana Goldfields Inc. is a Canadian based exploration Company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers part of Guyana, Venezuela, Suriname, French Guyana and northern Brazil.

The Company holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996. The Company currently has approximately $20 million in cash and no debt.

Contact Information

  • Guyana Goldfields Inc.
    Patrick Sheridan Jr.
    President and Chief Executive Officer
    (416) 628-5936
    (416) 628-5935 (FAX)