Certej Reserves Increased by 20%

Life-of-Mine Extended by Two Years

9 October 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to announce a 20% increase in gold reserve ounces for the Certej project, which can now be reported as follows:

Certej Reserves

The new reserve results from a better conversion of resources into reserves, combined with increased resources (see below), and is based on the production of a gold-bearing concentrate followed by the production of gold and silver as dor� on site by means of the Albion Process. The previous reserve estimate published in April 2006 was based on the less-economical development option involving the direct sale of a gold-bearing flotation concentrate.

The better conversion from resources to reserves reflects improved metallurgical recoveries following completion of extensive bulk continuous metallurgical test-work, an in-house pre-feasibility study and subsequent pit optimisation and pit design work by RSG Global Consulting Pty Ltd ("RSG Global"), which included a geotechnical drilling programme designed by Golder Associates of the UK.

The Albion Process is a combination of ultra-fine grinding of concentrates and oxidative leaching at atmospheric pressure. The liberated gold and silver is then recovered as dor� by the conventional Carbon in Leach ("CIL") process.

The deposit will be mined by open pit methods with a strip ratio of 3.1:1. The project will involve the mining and processing of 3.0 million tonnes of ore per annum over at least eleven years, compared to the nine-year mine life under the previous reserve estimate. This is expected to yield approximately 160,000 oz of gold and 820,000 oz of silver per year in dor�.

Commenting on the announcement, David Reading, Chief Executive Officer of European Goldfields, said: "We are delighted to report a 20% increase in gold reserve ounces and in mine life at Certej. The new reserve estimate confirms that the Certej project is robust at $425/oz gold. Our four projects in Greece and Romania now contain reserves of almost 10M oz of gold, 78M oz of silver, 0.8M tonnes of copper and 1.6M tonnes of combined lead and zinc."

Increase in Certej Resources

European Goldfields is also pleased to announce a 9.2% increase in gold resource ounces for its Certej project in Romania, which can now be reported as follows:

Certej Resources

The new resource follows the completion of a programme of in-fill drilling of inferred resources and also incorporates data from holes used for geotechnical work and metallurgical sampling.  The new drilling also identified higher grade mineralisation on the southern flank of the west domain of the deposit.

Harry Warries, Ben Palich and Jan de Visser of independent consultants RSG Global have reviewed this news release and were the Qualified Persons under Canadian National Instrument 43-101 responsible for preparing the updated resource and reserve estimates for the Certej deposit quoted above. A technical report from RSG Global will be filed on SEDAR (www.sedar.com) within the next 45 days.

Background Information on Certej

Capital and operating costs - Total capital costs for the Certej project are currently estimated at $111 million for the purchase of mining equipment and land, and the construction of a process plant, tailings and other infrastructure. However, European Goldfields is investigating "through the fence" oxygen supply, which would save some $23 million of oxygen plant capital. The mining costs are currently estimated at $1.23/tonne of material mined, and the processing costs are estimated at $9.09/tonne of ore processed.  These estimates will be updated once the full feasibility study on Certej is completed (see below).

Technical feasibility study submitted - In March 2007, European Goldfields submitted a Technical Feasibility Study ("TFS") to the Romanian government, in support of its permit application to develop the Certej project.

The metallurgical process design is based on extensive comminution and flotation testwork to produce a gold bearing concentrate and then processing by means of the Albion Process. The project is expected to yield an average of 308,000 tonnes of flotation concentrate per annum with high grades ranging between 17-19 g/t gold and 80-130 g/t silver (depending on the source of the ore in the deposit), with a flotation gold recovery of approximately 90%, followed by an Albion gold recovery of approximately 90%, resulting in a total process gold recovery of 81%. This is expected to yield approximately 160,000 oz of gold and 820,000 oz of silver per year in dor�.

The residues from the flotation and gold plants will be disposed of in two separate but adjoining tailings management facilities.

Albion Process Technology achieved 90% gold recovery in continuous pilot plant tests - European Goldfields is currently completing an extensive metallurgical testwork programme using the Albion Process at the facilities of Hydrometallurgical Research Laboratories Testing ("HRL") in Australia. Small scale batch tests had achieved gold recoveries of 90-93% and established the optimum conditions for the continuous pilot plant testwork required to prove the amenability of the Albion Process for the Certej concentrate.

A Phase 1 pilot scale test was carried out which confirmed that gold extractions in excess of 90% could be achieved on a continuous basis at sulphur oxidation rates in the Albion Process of around 70%. The testwork also confirmed the consumable levels were in the expected range.

A programme of flotation concentrate grade optimisation work was then undertaken and on completion a second Phase 2 continuous pilot plant run was completed in June 2007. This confirmed the high gold extractions of 90% achieved in the Phase 1 run and that the flotation concentrate is amenable to treatment by the Albion Process. A continuous CIL pilot plant was then run for 4� days on the product from the Phase 2 Albion Process run. Further optimising work and equipment tests by vendors are also nearing completion and a final design report will then be issued by Core Resources and Xstrata Technology allowing an engineering design company to calculate costs for the bankable feasibility study.

During the testwork campaign at HRL, a large batch scale Albion test was completed on the concentrate from the West ore zone of the Certej deposit which had previously proved to be uneconomic to processing using the Albion Process. This work demonstrated that by applying a slightly higher oxidation rate, a gold recovery of 90% could also be achieved from the West ore zone. This is a very positive result as it could increase the operating life of the Albion Process by at least three years.

A definitive mineralogical study describing the four ore zones of the Certej deposit was completed by Amtel of Canada which indicated that there is potential for increasing flotation gold and silver recoveries above those achieved in the laboratory scale tests.

Environmental impact study nearing completion - In 2006, European Goldfields completed all the necessary Environmental Impact Assessments (Levels I and II) and a Social Impact Assessment Study in support of its permit application to develop the Certej project.

Work is now progressing well on the Certej environmental impact study ("EIS"), which is due for completion in October 2007 after some contributory studies are finalised. The EIS will have been carried out over a period of a year to cover the four seasons for accumulating certain required base line data. The EIS is a detailed multi-discipline study assessing the environmental, social and health impacts of the project on the affected area.

Full feasibility study to be completed by Q1 2008 - Once the EIS is completed, European Goldfields expects to complete a full feasibility study, which will be used for internal approval and presentation to banks and other sources of potential financing of the project. The full feasibility study is scheduled for completion in the first quarter of 2008.

A contract to undertake an engineering study of the process plant and associated infrastructure has been awarded to Aker Kvaerner Engineering Services. This will include the final results of the completed Albion Process testwork programme, the design criteria package for the Ultra Fine Grinding IsaMill and the leaching process with the associated costs. Site visits have been undertaken to gather the additional design and site data needed to produce the definitive cost estimate and study.

Clear path to permitting - European Goldfields has established a clear path to applying for permits to develop the Certej project, having already submitted the TFS to the Romanian government in March 2007, which will be followed by the submission of the EIS in the fourth quarter of 2007.

In September 2006, European Goldfields announced that the Hunedoara County Council had issued a General Urbanisation Certificate for the Certej project. The certificate confirms the designation of Certej as an industrial mining area and confirms local community support for the project. This important milestone is the first official step in the permitting process for Certej.

All mining permits and a detailed urbanisation plan are expected by mid-2008 following a standard public consultation process with the local community.

About European Goldfields

European Goldfields Limited 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 95% interest in Hellas Gold S.A. Hellas Gold owns three major gold and base metal deposits in Northern Greece. The deposits are the polymetallic operation at Stratoni, the Olympias project which contains gold, zinc, lead and silver, and the Skouries copper/gold porphyry project. Hellas Gold commenced production at Stratoni in September 2005 and commenced 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.

For further information please contact:

European Goldfields:
David Reading, Chief Executive Officer 
e-mail: info@egoldfields.com
Tel: +44 (0)20 7408 9534

Buchanan Communications:
Bobby Morse / Ben Willey 
e-mail: bobbym@buchanan.uk.com
Tel: +44 (0)20 7466 5000

Renmark Financial Communication:
Neil G. Murray-Lyon
e-mail: nmurraylyon@renmarkfinancial.com
Barbara Komorowski
e-mail: bkomorowski@renmarkfinancial.com
Media - Eva Jura
e-mail: ejura@renmarkfinancial.com
Tel: +1 514 939 3989

Evolution Securities
Simon Edwards / Neil Elliot 
e-mail: simon.edwards@evosecurities.com
Tel: +44 (0)20 7071 4300

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 s ubject 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 w HETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY LAW.