European Goldfields Limited: Environmental Permits Awarded for Stratoni Mine.

WHITEHORSE, Yukon -- European Goldfields Limited (TSX:EGU)(AIM:EGU) is pleased to announce that its 65%-owned subsidiary Hellas Gold S.A. has been awarded by the Greek state all environmental permits for mining operations at the Stratoni deposit. Following normal procedure, a technical committee formed by the Greek government is completing a final overview of Hellas Gold's mining plan for the Stratoni deposit. Final approval to commence mining operations is expected shortly.

The Stratoni orebody is a polymetallic massive replacement-type deposit with proven and probable reserves totalling 1.64Mt of ore grading 7.6% lead, 10.2% zinc and 179g/t silver.

The environmental permits provide for an "overhand cut and fill" mining method, the use of mechanical excavation machines wherever possible, truck haulage from underground workings, the construction of a new water treatment plant and various other environmental protection, monitoring and rehabilitation measures.

Hellas Gold expects to start mining operations during the second quarter of 2005 by means of the existing adit while excavating a new access tunnel to the Stratoni reserves.

Subject to final approval of Hellas Gold's mining plan, construction on a new adit is expected to begin within the next few weeks to provide improved access to the Stratoni reserve and allow full-scale mining operations to commence by year end.

David Reading, Chief Executive Officer of European Goldfields, said:

"The gaining of the Stratoni environmental permit is a major milestone in the development of European Goldfields' strategy. We can now focus on finalising our mining plan for Stratoni, with a view to recommence mining operations and produce near term cash flow from the Hellas Gold projects.

We have worked closely with the Greek Government to gain this permit, and this successful outcome paves the ways for further development of the assets."

About European Goldfields

European Goldfields is a resource company involved in the acquisition, exploration and development of mineral properties in Greece, Romania and the Balkans.

Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas Gold owns assets in Northern Greece which include 70 year mining concessions over a total area of 317 km2 and three polymetallic near-production deposits, known as Olympias, Stratoni and Skouries, with total proven and probable reserves of 17.04Moz of gold equivalent (65% attributable: 11.08Moz).

The Stratoni and Olympias deposits were previously in production and benefit from significant infrastructure which includes underground mining development, two plants and a ship loading facility on the Aegean Sea. Hellas Gold's assets also include potential revenue generating stockpiles located on the surface.

Romania - European Goldfields holds five mineral properties located within the "Golden Quadrilateral" area of Romania, where it has embarked on a resource development and pre-feasibility programme to underpin the value of its 80%-owned Certej deposit and surrounding satellite bodies. A current resource estimate outlines measured and indicated resources of 31.4Mt grading 2.1g/t gold and 11.0 g/t silver for 2.34Moz of gold equivalent (80% attributable: 1.87Moz). This estimate was based on a selective mining unit model using 6.5 X 12.5 X 2.5 metre blocks and a 1g/t gold cut-off grade.

Further work at Certej now focuses on completing an in-house pre-feasibility study, the next phase of which will concentrate on optimising mining and understanding the variable metallurgical recoveries. Scoping work on pit optimisations will establish the mining cut-off grades and associated strip ratios for appropriate and optimum exploitation of the deposit. The metallurgical testwork includes mineralogical studies into the gold disposition within the mineralisation, and floatation testwork aimed at maximising gold recoveries.

Reserve and Resource Parameters

Disclosure of mineral reserves for Hellas Gold's Olympias, Stratoni and Skouries deposits is derived from a Pre-feasibility Study prepared by Behre Dolbear & Company, Inc. and filed on SEDAR at www.sedar.com on 29 October 2004 under the category "Technical Report", and European Goldfields' news release and material change report filed on SEDAR on 7 March 2005.

Disclosure of mineral resources for European Goldfield's 80%-owned Certej deposit is derived from a resource estimate prepared by RSG Global Pty Ltd and filed on SEDAR on 23 March 2005 under the category "Technical Report".

Forward-Looking Statements

This news release contains certain forward-looking statements concerning the Company's future operations, economic performances, financial condition and financing plans. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances. However, whether actual results and developments will conform with the Company's expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company and its subsidiaries or their businesses or operations. The Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

European Goldfields Limited (TSX:EGU) (AIM:EGU)