Ministry of Development Completes Review of Business Plan for Greek Gold Projects

19 July 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or "European Goldfields") is pleased to announce that Hellas Gold S.A. has received a formal letter confirming that the Greek Ministry of Development has completed its review of Hellas Gold's business plan submitted in January 2006 for the joint development of the Skouries and Olympias gold and base metals projects in Northern Greece.

In the letter, the Ministry of Development also re-declares its positive opinion of Hellas Gold's preliminary environmental impact study ("PEIS") which has already been submitted, and formally requests the Ministry of Environment to issue its official approval of the PEIS.

The letter also states that the Ministry of Development "is in agreement with the development of the project described in the business plan, as this investment is particularly beneficial to the national and local economy (.) and reflects the intent of the contract signed between the Greek State and Hellas Gold".

This letter is addressed to Hellas Gold and the Ministry of Environment and represents a statement of support for the projects based on detailed studies completed by appropriate technical and advisory bodies appointed by the Ministry of Development.  This letter represents the foundation for the fulfilment of Hellas Gold's business plan for Skouries and Olympias, in compliance with the Greek and EU legal framework.

The business plan focuses on a phased approach to the development of the Skouries gold-copper porphyry deposit and the Olympias gold-lead-zinc-silver deposit. The principal revenue stream in the early phases will be through the sale of concentrates. Hellas Gold's current plan is to develop Olympias in three phases to allow refurbishment of existing infrastructure and the subsequent construction of new gold processing facilities at Stratoni. Skouries will initially be mined as a low strip open pit operation, followed by highly productive underground mining.

This letter from the Ministry of Development re-confirms an earlier statement made by the General Secretary of the Greek Ministry of Development, Mr Nikos Stefanou, when he publicly stated that the Government of Greece fully supports the development of mining projects in Chalkidiki, the region where the Skouries and Olympias projects are located. In his speech, Mr Stefanou stated that "The mining Industry is extremely important for the regional development of Greece" and more specifically that "The government supports the development of the gold mining business in Chalkidiki, according to the environmental framework. The execution of this initiative will develop this region and provided work for 600 people in the construction phase and 1300 people in the production." The speech was made on 10 May 2007 in Athens and is available at www.ypan.gr/c_announce/45_3927_cms.htm.

Commenting on the announcement, David Reading, Chief Executive Officer of European Goldfields, said: "We are delighted to report that the Greek Ministry of Development has completed its review of our business plan for the joint development of the Skouries and Olympias projects and that the ministry confirmed our business plan is fully compatible with the socio-economic policies of the Greek government.  This means that our permit application has now passed the stages of financial, technical and social evaluation and that only the approval by the Ministry of Environment of our Preliminary Environmental Impact Study remains before we can proceed with the submission of our final EIS. With support at the local and national levels in Greece and with a cash balance of over US$200 million, we now plan to accelerate with renewed confidence the development of these projects."

Hellas Gold is currently finalising a full environmental impact study ("EIS") which is expected to be submitted to the Greek government in the fourth quarter of 2007, addressing any comments received on the PEIS. On approval of the EIS, the environmental permits for Skouries and Olympias are expected to be issued. Hellas Gold now has clear guidelines from the Ministry of Environment on all topics and technical studies that must be included in the EIS.

Hellas Gold will then submit to the Greek government a final technical report on the Skouries and Olympias projects, which will restate the principles of the business plan and take into account any conditions detailed in the environmental permit. The mining permits are expected to be issued on approval of the technical report by the Greek government.

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 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 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.

For further information please contact: