Stratoni Exceeds 2006 Target

RNS Number:0906P
European Goldfields Ltd
08 January 2007


For Immediate Release                                            8 January 2006

                Stratoni Mine Exceeds Production Target for 2006

                         Increase in Stratoni Reserves

8 January 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce that its subsidiary Hellas Gold S.A. has milled a total of 185,000 wet
metric tonnes (wmt) of ore in 2006 at its Stratoni zinc-lead-silver plant in
Northern Greece, exceeding the production target of 170,000 wmt for the year.

Ore production rates from underground have steadily increased from 400 to almost
900 tonnes per day during 2006. Ore production is expected to continue to
increase more rapidly than expected, up to a maximum of 400,000 tonnes per year
by end 2009.

Hellas Gold completed seven shipments of concentrates from Stratoni in Q4 2006,
and 20 shipments for the whole of 2006. Hellas Gold also completed six shipments
of gold concentrates from an existing stockpile at Olympias in Q4 2006,
representing half of the 12 shipments completed in 2006. This translates into
the following sales of concentrates:
                                                    Q4 2006         Total 2006
Zinc concentrate (tonnes)                            10,425             32,351
- Containing payable: Zinc (tonnes)*                  4,418             13,775

Lead concentrate (tonnes)                             5,124             15,780
- Containing payable: Lead (tonnes)*                  3,329             10,467
Silver (oz)*                                        254,881            818,139

Gold concentrate (wet tonnes)                         9,041             17,649
* Net of smelter deductions

Sales of contained metals increased by 38% for lead, 35% for silver and 39% for
gold in Q4 2006 compared to Q3 2006, while decreasing by a marginal 6% for zinc.
Also, these sales are expected to yield higher revenues per unit in Q4 2006 due
to more favourable metal prices during the last quarter of the year. European
Goldfields expects to publish by 31 March 2006 its financial results for the
three-month period and year ended 31 December 2006.

Increase in Stratoni Reserves - European Goldfields is also pleased to announce
an increase in reserves at Stratoni, which can now be reported as follows under
Canadian NI 43-101:

Reserve Category    '000t*     Ag      Ag      Pb      Pb       Zn       Zn
                              g/t     Moz*       %   '000t*        %   '000t*
Proven               1,923    172    10.63    6.9        19     9.4        30
Probable               259    172     1.43    7.3       133    11.6       181
Total                2,182    172    12.06    6.9       152     9.7       211
* After deduction of ore extracted since the start of mining operations in Q4
2005.

Total reserve tonnes have increased by 23% over the reserves published prior to
the start of operations at Stratoni in Q4 2005, accounting for deduction of ore
since then. The new reserve will add an extra year to Stratoni's life of mine, a
20% increase over the remaining five-year mine life under the prior reserve. A
marginal reduction in grades is expected to be more than offset by greater
quantities of metal to be produced over the total life of mine and the
ramping-up of production going forward.

The new reserve has allowed Hellas Gold to ramp-up its yearly ore production
schedule as follows:

- Year 2006: 170,000 tonnes
- Year 2007: 250,000 tonnes
- Year 2008: 350,000 tonnes
- Year 2009: 400,000 tonnes
- Year 2010: 400,000 tonnes
- Year 2011: 400,000 tonnes
- Year 2012: 400,000 tonnes

This new reserve is based on an updated measured & indicated resource estimate
for the Stratoni orebody, which results from a new optimised geological model
based on revised geological mapping, additional data from underground sampling,
and a more reliable understanding of the orebody after a full year of mining at
Stratoni.

A better understanding of the orebody has also allowed Hellas Gold to define
increased inferred resources comprising some 555,000 tonnes grading 7.3% lead,
10.2% zinc and 181 g/t silver.

In addition, Hellas Gold recently started a new exploration drilling programme
at Stratoni, which is expected to increase life of mine by another two years at
least. Initial drilling results are expected in Q1 2007. An important objective
of the drilling programme is to upgrade existing inferred resources to full
Canadian NI 43-101 compliant reserves.

Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are proud to have exceeded our promise to the
market in 2006 for our Stratoni operations. Production of zinc, lead and silver
concentrates continues to ramp-up at Stratoni in an environment of strong demand
for these metals, and this new reserve will allow us to mine for an additional
year after 2011. Also, we look forward to adding more value at Stratoni by
converting existing inferred resources into reserves when our ongoing extension
drilling programme is completed."

Patrick Forward, General Manager, Exploration of European Goldfields, was the
Qualified Person under Canadian National Instrument 43-101 responsible for
preparing the updated resource and reserve estimates for the Stratoni deposit
quoted above. A report will be filed on SEDAR (www.sedar.com) within the next
forty-five days updating parts of Behre Dolbear & Company, Inc.'s previous
pre-feasibility study on the Stratoni deposit filed at www.egoldfields.com and
on SEDAR on 29 October 2004 under the category "Technical Report".

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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCGGGGMNKMGNZM