Mr. Patrick Forward reports

EXTENSIVE HIGH GRADE MINERALISATION CONFIRMED AT PIAVITSA

European Goldfields Ltd. has released the initial results of its exploration program at the Piavitsa target in Northern Greece.

Highlights:

• High-grade intercepts include 10.9 metres at 7.88 grams per tonne Au, 12 m at 7.44 g/t Au and eight m at 8.64 g/t Au over two kilometres of strike;

• Mineralization in historic drilling more extensive than previously recognized;

• Soils indicate mineralization in a further six kilometres of strike.

The current work program includes surface exploration, extensive logging and sampling of existing drill core, and interpretation of current and historic data. The core sampling has confirmed broader zones of mineralization than had been previously identified with higher grade massive sulphide cores.

Hole        From depth   Interval     Gold   Silver    Lead   Zinc
                    (m)        (m)    (g/t)    (g/t)     (%)    (%)
 
GT-51               83         27     1.63    34.66    0.44   1.15 
including                       8     3.08    47.34    0.82   2.38 
GT-52            131.1       25.9     3.48    83.93    2.05   4.96 
including                    10.9     7.88   199.04    4.87  11.75 
GT-53              217         21     4.33    61.83    1.31   1.48 
including                      12     7.44   107.04    2.28   2.56 
GT-54               53         27     1.41     4.08     n/a   0.07 
including                      14     2.27     7.66     n/a   0.12 
GT-55              218         25     1.62     7.81    0.11    0.3  
including                       2     5.90    17.75    0.03   0.13 
and                             6     3.42    10.43    0.24   0.75 
GT-56B             379         13     5.42   130.26    0.02   0.21 
including                       8     8.64   196.48    0.02   0.31 
GT-56B             426         23     1.81    13.50    0.77   1.31 
including                       7     4.33    38.66    2.18   3.93 

The Piavitsa target is a polymetallic carbonate replacement deposit, similar to the company's major Olympias deposit which hosts more than 3.5 million ounces of proven and probable gold reserves as well as significant amounts of silver, lead and zinc, and is situated only six kilometres away.

Using an airborne electromagnetic survey the company had previously confirmed the continuity of around two kilometres of strike between historic drill sites and confirmed that a further three kilometres of the main geological structure and another three kilometres of a subordinate structure had potential for mineralization. Follow-up partial soil sampling along these extensions has indicated that they do host gold, silver and base metal along their strike length with anomalies of up to 340 and 890 parts per billion gold.

The company has a $7.3-million program of exploration which includes 4,500 metres of core drilling for the first phase of work at Piavitsa with the objective of delineating inferred resources. A further 13,500 metres of follow-up core drilling is planned within the budget aimed at defining an indicated resource and testing extensions.

Commenting on these results, Patrick Forward, vice-president (projects and exploration) of European Goldfields, said:

"We are delighted that sampling has confirmed our interpretation of broader mineralized zones with higher grade cores. The indication from soils that mineralization also extends along some six kilometres of strike in addition to the two kilometres indicated by historic drilling highlights the potential of this exciting target. Our priority now is to carry out an intensive drilling campaign aimed at defining resources at the earliest opportunity. Exploration work in Greece is also aimed at drill testing our significant porphyry targets and this is also covered within the exploration budget."

Mr. Forward supervised and prepared the scientific and technical information included in this press release. Mr. Forward is a qualified person for purposes of National Instrument 43-101. Mr. Forward is an employee of European Goldfields.

Mr. Forward has verified the assay data from the resampling of existing core from Piavitsa which was subject to the company's usual QA/QC (quality assurance/quality control) procedures. These procedures include the insertion of commercial standard samples supplied by Rocklabs of Australia covering gold, silver, lead and zinc totalling 5 per cent of the sample batches, insertion of blank samples totalling 5 per cent of the sample batches and duplicate samples totalling 5 per cent of the sample batches. Assays were carried out at the SGS analytical laboratory in Chelopech, Bulgaria. SGS also carries out its own QAQC procedures consisting of duplicate sample splits and blanks. No restriction was placed on access to these data by Mr. Forward. Results were also compared with historic assays carried out in 1998 by TVX and analyzed at the ALS Chemex laboratory in Vancouver, and the high-grade mineralized intercepts agreed well with the historic sampling. Low-grade mineralization was not sampled by TVX. Samples taken in the resampling program by European Goldfields consisted of quarter NQ core. The Piavitsa mineralization is hosted in a series of gneisses and marbles, and consists of massive sulphide carbonate replacement high-grade cores within lower grade brecciated horizons adjacent to a major fault. High-grade mineralization has shown variability in sample duplicates due to nugget effect but no bias was detected in this variability and no top-cut was applied. SGS sample preparation consists of crushing then pulverizing the whole sample to 95 per cent less than 75 microns before subsampling, and used fire assay on 30-gram charges with an AAS finish for gold analyses and aqua regia digest with an ICP finish for silver, lead and zinc.