Sale of Extra 71,000 Tonnes of Olympias Gold Concentrates

1 October 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to announce that its 95%-owned subsidiary Hellas Gold S.A. has entered into an off-take agreement with a subsidiary of Celtic Resources Holdings Plc (AIM: CER) for the sale of 50,000 wet metric tonnes (wmt) of gold-bearing pyrite concentrates previously produced from the Olympias mine in Greece. Celtic Resources have agreed to pre-pay for the concentrates within the next 10 days, and take delivery of the concentrates within a period of 24 months following the date of the agreement. This is in addition to the sale of 9,000 wmt of concentrates to Celtic Resources announced in November 2006.

Hellas Gold has also recently agreed terms for the sale of at least 21,000 wmt of concentrates by the end of 2007 to Trafigura Beheer B.V. In total, these 71,000 wmt of concentrate contain approximately 50,000 oz of gold.

The Olympias project benefits from an existing stockpile of gold-bearing pyrite concentrates which represented, at December 31, 2006, a reserve of approximately 252,000 tonnes grading 23.3 g/t gold (containing 188,000 oz of gold), in addition to substantial underground reserves of gold, lead, zinc and silver.

Hellas Gold has now secured the sale of the entire stockpile to six different purchasers - Golden China Resources Corporation, Celtic Resources Holdings Plc, MRI Trading AG, Euromin S.A. and Trafigura Beheer B.V.

Hellas Gold plans to resume underground mining operations at Olympias after permits are awarded, producing more gold bearing pyrite concentrates for sale to existing and new off-take purchasers.

Commenting on the new agreements with Celtic Resources and Trafigura, David Reading, CEO of European Goldfields, said: "We are delighted to have signed these new off-take agreements for the sale of our stockpile of gold concentrates at Olympias. By doing so, we have achieved two key milestones in the development of our company, securing the sale of the entire stockpile and the sale of at least 100,000 tonnes of concentrates in 2007. The strong demand for Olympias gold concentrates bodes well for the resumption of mining operations at Olympias."

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 R omanian government, in support of a permit application to develop the project.

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