Sale of Gold Concentrates

RNS Number:8535Q
European Goldfields Ltd
07 February 2007





For Immediate Release                                            7 February 2007

                              European Goldfields

   Golden China Orders an Extra 130,000 Tonnes of Olympias Gold Concentrates

7 February 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce that its subsidiary Hellas Gold S.A. has entered into a second off-take
agreement with Golden China Resources Corporation (GCX: TSX; ASX) for the sale
of 100,000 tonnes of gold bearing pyrite concentrates previously produced at the
Olympias mine in Greece. This concentrate will be treated over a three year
period on an equal profit share basis at Golden China's new dedicated bacterial
oxidation plant in Shandong, China, which is expected to be commissioned in
September 2007.

In May 2006, Hellas Gold signed an initial contract for the sale of 18,000
tonnes of concentrates by April 2007 for processing at Golden China's existing
bacterial oxidation plant in Shandong. This initial contract has also been
extended for the sale of an additional 30,000 tonnes of concentrates between May
2007 and 31 December 2008.

Olympias benefits from an existing stockpile of gold concentrates comprising a
reserve of approximately 258,000 tonnes grading 23.3 g/t gold (containing
193,000 oz of gold). An additional 9,000 wmt of concentrates (containing 6,000
oz of gold) is also located at Hellas Gold's port facility in Stratoni.

Following today's announcement, Hellas Gold has now secured the sale of a total
of 184,000 tonnes of Olympias concentrates (containing approximately 130,000 oz
of gold) to four different off-takers - Golden China, MRI Trading, Celtic
Resources and Euromin - with expressions of interest to sell up to an additional
132,000 wmt of concentrates if the initial shipments are successful.

Hellas Gold plans to resume underground mining operations at Olympias after
permits are awarded, producing more gold bearing pyrite concentrates for sale to
existing and new off-takers.

The prices payable for the concentrates vary with the prevailing gold price. The
agreements produce an attractive return for Hellas Gold at a gold price of
US$500/oz. The monthly shipments may be suspended if certain profitability
thresholds are not met.

Commenting on the announcement, David Reading, CEO of European Goldfields, said:
"We are delighted to have renewed our contract with Golden China for the sale of
an extra 130,000 tonnes of gold concentrates from Olympias. We have now sold
virtually the entire stockpile, and are pursuing similar opportunities for the
sale of new gold concentrates to be produced at Olympias when production
resumes."

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 65% 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 is completing a feasibility study for submission to
the Romanian government in Q1 2007, in support of a permit application to
develop the project.

For further information please contact:

European Goldfields:                     website: www.egoldfields.com
David Reading, Chief Executive Officer   e-mail: [e-mail]
Office: [phone]

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

Renmark Financial Communication:         website: www.renmarkfinancial.com
Tina Cameron                             e-mail: [e-mail]
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 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 Information Form for the year ended 31 December 2005,
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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            The company news service from the London Stock Exchange

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