Permitting in Greece

RNS Number:4929A
European Goldfields Ltd
19 July 2007



Immediate Release                                                 19 July 2007



                          European Goldfields Limited

    Ministry of Development Completes Review of Business Plan for Greek Gold
                                    Projects

19 July 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or
"European Goldfields") is pleased to announce that Hellas Gold S.A. has received
a formal letter confirming that the Greek Ministry of Development has completed
its review of Hellas Gold's business plan submitted in January 2006 for the
joint development of the Skouries and Olympias gold and base metals projects in
Northern Greece.

In the letter, the Ministry of Development also re-declares its positive opinion
of Hellas Gold's preliminary environmental impact study ("PEIS") which has
already been submitted, and formally requests the Ministry of Environment to
issue its official approval of the PEIS.

The letter also states that the Ministry of Development "is in agreement with
the development of the project described in the business plan, as this
investment is particularly beneficial to the national and local economy (...)
and reflects the intent of the contract signed between the Greek State and
Hellas Gold".

This letter is addressed to Hellas Gold and the Ministry of Environment and
represents a statement of support for the projects based on detailed studies
completed by appropriate technical and advisory bodies appointed by the Ministry
of Development. This letter represents the foundation for the fulfilment of
Hellas Gold's business plan for Skouries and Olympias, in compliance with the
Greek and EU legal framework.

The business plan focuses on a phased approach to the development of the
Skouries gold-copper porphyry deposit and the Olympias gold-lead-zinc-silver
deposit. The principal revenue stream in the early phases will be through the
sale of concentrates. Hellas Gold's current plan is to develop Olympias in three
phases to allow refurbishment of existing infrastructure and the subsequent
construction of new gold processing facilities at Stratoni. Skouries will
initially be mined as a low strip open pit operation, followed by highly
productive underground mining.

This letter from the Ministry of Development re-confirms an earlier statement
made by the General Secretary of the Greek Ministry of Development, Mr Nikos
Stefanou, when he publicly stated that the Government of Greece fully supports
the development of mining projects in Chalkidiki, the region where the Skouries
and Olympias projects are located. In his speech, Mr Stefanou stated that "The
mining Industry is extremely important for the regional development of Greece"
and more specifically that "The government supports the development of the gold
mining business in Chalkidiki, according to the environmental framework. The
execution of this initiative will develop this region and provided work for 600
people in the construction phase and 1300 people in the production." The speech
was made on 10 May 2007 in Athens and is available at www.ypan.gr/c_announce/
45_3927_cms.htm.

Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are delighted to report that the Greek Ministry
of Development has completed its review of our business plan for the joint
development of the Skouries and Olympias projects and that the ministry
confirmed our business plan is fully compatible with the socio-economic policies
of the Greek government. This means that our permit application has now passed
the stages of financial, technical and social evaluation and that only the
approval by the Ministry of Environment of our Preliminary Environmental Impact
Study remains before we can proceed with the submission of our final EIS. With
support at the local and national levels in Greece and with a cash balance of
over US$200 million, we now plan to accelerate with renewed confidence the
development of these projects."

Hellas Gold is currently finalising a full environmental impact study ("EIS")
which is expected to be submitted to the Greek government in the fourth quarter
of 2007, addressing any comments received on the PEIS. On approval of the EIS,
the environmental permits for Skouries and Olympias are expected to be issued.
Hellas Gold now has clear guidelines from the Ministry of Environment on all
topics and technical studies that must be included in the EIS.

Hellas Gold will then submit to the Greek government a final technical report on
the Skouries and Olympias projects, which will restate the principles of the
business plan and take into account any conditions detailed in the environmental
permit. The mining permits are expected to be issued on approval of the
technical report by the Greek government.

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]
Simon Edwards / Neil Elliot

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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