Mr. Steve Sharpe reports

STATEMENT BY EUROPEAN GOLDFIELDS LIMITED REGARDING SHARE PRICE MOVEMENT

European Goldfields Ltd. is acknowledging the company's recent trading activity. The company has received preliminary and indicative approaches from third parties regarding potential corporate transactions. No formal offers have been received and there can be no assurances that any transaction will result from any of these approaches.

The company does not intend to comment further on these or other proposals unless a definitive agreement is reached with any third party or unless otherwise required by law.