High Grades in Certej Infill Drilling

16 May 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or "European Goldfields") is pleased to announce that significant drilling intercepts have been encountered at its 80%-owned Certej project in Romania.

The existing Certej reserve contains 27.7M tonnes of probable reserves grading 2 g/t gold and 11.6 g/t silver, representing 1.76Moz of gold and 10.4Moz of silver. In March 2007, European Goldfields submitted a technical feasibility study to the Romanian government in support of its permit application to develop the Certej project.  Work is now progressing well on an environmental impact study, which is due for completion in Q3 2007.

In April 2007, European Goldfields initiated a 1500m Diamond drilling campaign on the Certej deposit in Romania.  The drilling programme is designed to convert inferred resources within the current pit design to the indicated category.  To date results have been received for 11 of the planned 16 holes and significant intercepts are as follows:

Results are quoted using a 1 g/t Au lower cut-off grade, no upper grade cut was applied and include a maximum of 5 metres consecutive internal waste.  Only intercepts ≥ 1.5 g/t Au are reported. The Certej deposit is irregular in nature, however drilling has been conducted perpendicular to mineralization wherever possible and as such drilled width correspond to true widths.

High gold grade drill intercepts from the southern flank of the West Zone represent a zone of intense potassic and variably silica altered andesite which trends southwest and is open along strike and down dip.  Further holes are now being planned in order to test the strike and dip extents of this extension to the modelled mineralisation. 

Commenting on the announcement, David Reading, Chief Executive Officer of European Goldfields, said: "We are excited by the results, particular the high grade intercepts on the southern flank of the West Zone and as none of this mineralisation is included in the current reserves it represents upside for the Certej project."

Sample preparation and analysis was carried out at the independent ISO Certified ALS-Chemex Laboratory at Gura Rosiei, Romania, using industry standard fire assay techniques for gold on 50-gram sample charges with atomic absorption spectrometry (AAS) finish and aqua regia digest for silver with an AAS finish. In addition to the laboratory's standard quality assurance / quality control (QAQC), European Goldfields submit field duplicates, crusher duplicates, pulp duplicates and known gold standards on a routine basis and these comprise approximately 20% of submitted samples.  Unless otherwise indicated, the intercepts reported above are from split HQ size Diamond core and the holes are sampled at one-metre intervals throughout the entire hole.

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 submitted in March 2007 a technical feasibility study to the Romanian government, in support of a permit application to develop the project.

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Resources & reserves parameters

For additional information on the resource and reserve estimates quoted in this news release, please refer to the Company's Resources & Reserves Declaration at www.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager, Exploration of the Company, was the Qualified Person under Canadian National Instrument 43-101 responsible for reviewing the disclosure of resource and reserve estimates quoted in this news release.

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 include, but are not limited to, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs and timing of development of new deposits, permitting time lines and expectations regarding metal recovery rates. 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 pr oduction, 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 2006, 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.