Closing of Acquisition

RNS Number:4311Z
European Goldfields Ltd
02 July 2007


Immediate Release                                         2 July 2007






                            European Goldfields Ltd

      Closing of Acquisition of an Additional 30% Interest in Hellas Gold

2 July 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or
"European Goldfields") is pleased to announce that it has completed the
acquisition of an additional 30% interest in Hellas Gold S.A. ("Hellas Gold") as
previously explained in the Company's press release dated
1 June 2007 (the "Acquisition"). This increases the Company's total interest in
Hellas Gold to 95%.

Summary of the Acquisition

   * The purchase price is funded essentially through a share swap with
    Aktor, providing it with a 19.9% stake in European Goldfields and
    reinforcing a strategic alliance between the two companies
   * The transaction is accretive for all shareholders, incorporating a 15%
    discount to the "see-through value" of Hellas Gold
   * The Acquisition provides European Goldfields' with 95% ownership of the
    cash flow and net income to be generated from existing and future production
    in Greece
   * Following a recent fundraising, European Goldfields now has
    approximately US$215 million in cash, representing over 50% of the expected
    capital required to develop the Skouries and Certej projects
   * European Goldfields remains on track to become the largest unhedged gold
    producer in Europe, with the development of Skouries and Olympias in Greece
    and Certej in Romania
   * With a market capitalisation of over US$900 million following the recent
    fundraising and the Acquisition, European Goldfields has become the 5th
    largest mining company listed on AIM

Details of the Acquisition

On 29 June 2007, the Company completed the acquisition of an additional 30%
interest in Hellas Gold, increasing its stake to 95%. The purchase price was
agreed at US$178 million, which incorporates a 15% discount to the "see-through
value" of Hellas Gold. The full purchase price is payable by the allotment to
the vendor of 35,447,246 common shares representing 19.9% of the issued and
outstanding shares of the Company on a diluted basis and the balance of US$8.4
million in cash.

This transaction is, in essence, a share swap and reinforces a strategic
alliance with the vendor Aktor S.A. ("Aktor") and its parent company Elliniki
Technodomiki TEB A.E. (ATHEX: ELTEX) ("El-Tech") in that approximately 95% of
the purchase price is payable to Aktor in common shares of the Company. Of the
cash portion, 50% will be re-invested by Aktor into Hellas Gold, as funding
towards maintaining its residual 5% shareholding interest in Hellas Gold.

El-Tech is a large Greek conglomerate with a market capitalisation in excess of
US$2 billion and investments in four fields: construction, concessions, energy
and real estate. Aktor is Greece's largest construction company.

Furthermore, to demonstrate and confirm its long-term commitment to the Company
and its projects, Aktor has agreed not to sell the European Goldfields shares it
receives as consideration until the date on which the Company's Skouries
gold-copper porphyry mining project commences production (or four years after
the closing of the Acquisition, if earlier).

The Company also intends to appoint a representative of Aktor to its board of
directors. The Company does not propose to make significant changes to Hellas
Gold's operations following the Acquisition.

Concurrently with the Acquisition, the Company completed a treasury offering of
27.6 million shares, for total gross proceeds of Cdn$138 million.

Commenting on the transaction, David Reading, Chief Executive Officer of
European Goldfields, said: "The fundraising and the increase to 95% ownership of
Hellas Gold have transformed European Goldfields overnight. The key partnership
with Aktor has been further strengthened through aligning both companies' long
term interests in the rapidly developing mining industry in South East Europe.
With the flexibility of US$215 million of cash on the balance sheet to develop
our three major gold projects, underpinned by strong cash generative production
from Stratoni in a sustainable high metal price environment, European Goldfields
is on track to become a mid-tier un-hedged gold producer within the next 3
years."

About European Goldfields

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

Greece - European Goldfields holds a 95% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic projects of Stratoni and Olympias which contain
gold, zinc, lead and silver, and the Skouries copper/gold porphyry body. Hellas
Gold commenced production at Stratoni in September 2005 and selling an existing
stockpile of Olympias gold concentrates in July 2006. Hellas Gold is applying
for permits to develop the Skouries and Olympias projects.

Romania - European Goldfields owns 80% of the Certej gold/silver project in
Romania. European Goldfields submitted in March 2007 a technical feasibility
study to the Romanian government, in support of a permit application to develop
the project.

For further information please contact:
European Goldfields:                    e-mail: [e-mail]
David Reading, Chief Executive          Office: [phone]
Officer
RBC Capital Markets                     Office: [phone]
Patrick Meier / Peter Barrett-Lennard

Evolution Securities                    Office: [phone]
Frank Moxon / Simon Edwards

Buchanan Communications:                e-mail: [e-mail]
Bobby Morse / Ben Willey                Office: [phone]

Renmark Financial Communication:        
                                        e-mail:[e-mail]
Neil G. Murray-Lyon                     Office: [phone]

Forward-looking statements
Certain statements and information contained in this document, including any
information as to the Company's future financial or operating performance and
other statements that express management's expectations or estimates of future
performance, constitute forward-looking information under provisions of Canadian
provincial securities laws. When used in this document, the words "anticipate",
"expect", "will", "intend", "estimate", "forecast", "planned" and similar
expressions are intended to identify forward-looking statements or information.
Forward-looking statements include, but are not limited to, the estimation of
mineral reserves and resources, the timing and amount of estimated future
production, costs and timing of development of new deposits, permitting time
lines and expectations regarding metal recovery rates. Forward-looking
statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and contingencies.
The Company cautions the reader that such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual financial results, performance or achievements of the Company to be
materially different from its estimated future results, performance or
achievements expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future performance. These
risks, uncertainties and other factors include, but are not limited to: changes
in the price of gold, base metals or certain other commodities (such as fuel and
electricity) and currencies; uncertainty of mineral reserves, resources, grades
and recovery estimates; uncertainty of future production, capital expenditures
and other costs; currency fluctuations; financing and additional capital
requirements; the successful and timely permitting of the Company's Skouries,
Olympias and Certej projects; legislative, political, social or economic
developments in the jurisdictions in which the Company carries on business;
operating or technical difficulties in connection with mining or development
activities; the speculative nature of gold and base metals exploration and
development, including the risks of diminishing quantities or grades of
reserves; the risks normally involved in the exploration, development and mining
business; and risks associated with internal control over financial reporting.
For a more detailed discussion of such risks and material factors or assumptions
underlying these forward-looking statements, see the Company's Annual Info
rmation Form for the year ended 31 December 2006, filed on SEDAR at
www.sedar.com. The Company does not intend, and does not assume any obligation,
to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.




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