Sale of Olympias Concentrates

RNS Number:2539L
European Goldfields Ltd
31 October 2006


For Immediate Release                                            31 October 2006



                          European Goldfields Limited

               MRI TRADING ORDERS MORE OLYMPIAS GOLD CONCENTRATES


European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
its subsidiary Hellas Gold S.A. has entered into a second off-take agreement
with MRI Trading AG of Switzerland for the sale of an additional 18,000 wet
metric tonnes (wmt) of gold bearing pyrite concentrates currently located on the
surface at Olympias in Greece.

This new order by MRI Trading follows the success of an initial trial shipment
of 3,000 wmt of concentrates announced in July 2006.

MRI Trading also has the option to increase its order by a further 12,000 wmt,
exercisable by 31 December 2006. Shipments are scheduled to be completed by
October 2007.

Olympias benefits from an existing stockpile of gold concentrates representing a
reserve of approximately 258,000 tonnes grading 23.3 g/t gold (containing
193,000 oz of gold), in addition to substantial underground reserves of gold,
lead, zinc and silver.

In May 2006, Hellas Gold entered into a first off-take agreement with Shandong
MIC BioGold Ltd (a subsidiary of Michelago Limited of Australia) for the sale of
an initial 18,000 wmt of Olympias gold concentrates. The agreement with MIC
Biogold also includes the possible sale of an additional 100,000 tonnes over a
three-year period from April 2007.

European Goldfields and Hellas Gold are currently in advanced stages of
negotiations for the sale of the remaining tonnage of gold concentrates in the
stockpile.

Commenting on the agreement, David Reading, Chief Executive Officer of European
Goldfields, said: "These off-take agreements are a further example of European
Goldfields generating value from the substantial stockpile of gold concentrates
at Olympias.  The off-take agreements also confirm that there is a strong market
for gold concentrates produced at Olympias and the viability of Phase 1 of our
business plan for Olympias, which involves the sale of concentrates for the
first few years. With no debt and the generation of cash from production at
Stratoni, this additional revenue will assist with the financing of the
development of our major gold and base metals projects of Skouries and Olympias."


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 the three major gold and polymetallic deposits of Stratoni, Skouries
and Olympias in Northern Greece.  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 project in Romania.
Resources were recently converted into Canadian NI 43-101 compliant reserves,
underpinning the value of the project. European Goldfields is now 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 information included in this news release, 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 statements". The words "expect", "will", "intend",
"estimate" and similar expressions identify forward-looking statements.
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 worldwide price of gold, base metals or certain other
commodities (such as fuel and electricity) and currencies; 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; and the risks normally involved in the
exploration, development and mining business. These factors are discussed in
greater detail in the Company's Annual Information Form for the year ended 31
December 2005, filed on SEDAR at www.sedar.com. The Company disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.


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