Colombia Goldfields Provides Q1 2008 Exploration and Corporate Updates

    (All amounts are reported in U.S. dollars unless otherwise indicated)

    TORONTO, May 9 /CNW/ - Colombia Goldfields Ltd. (the "Company")
(TSX: GOL/OTCBB: CGDF) today updated the status of its mineral rights
acquisition and drilling programs, progress in the Colombian authorities'
moving of the old town of Marmato, and announced unaudited financial results
for the first quarter ending March 31, 2008.
    With its mineral rights acquisition program in the Zona Alta (Upper Zone)
nearing completion (111 of the 117 legally registered mines are now owned by
the Company), Colombia Goldfields ramped up activity in its 60,000-meter
drilling program at Marmato.
    "At the end of 2007, we had five drills at work on Marmato and had
drilled approximately 11,500 meters," said J. Randy Martin, Vice Chairman and
CEO, Colombia Goldfields, Ltd. "We were able to contract several more rigs
during the first quarter and accelerate our program. As a result, we now have
9 drills on site, and have completed more than 22,000 meters of drilling. At
this rate, we anticipate having the entire 60,000 meters completed by the end
of the third quarter of this year."
    Colombia Goldfields is using results from the first 12,186 meters of
drilling and 1,171 meters of underground channel sampling to provide a 43-101
compliant resource for Zona Alta. Announcement of this new resource is
expected soon. The Company also expects to release a scoping study for Zona
Alta shortly.

    Zona Baja and Echandia Acquisitions

    On January 29, 2008, Colombia Goldfields Ltd. entered into a purchase and
sale agreement to acquire 100% of the issued and outstanding shares of Mineros
Nacionales S.A. ("Mineros") for US$35 million. Mineros owns the Zona Baja
(Lower Zone) on Marmato Mountain. The Zona Baja currently has a working
underground operation with a mill that, based on information provided to the
Company, currently produces approximately 25,000 ounces of gold per year. The
Company has provided a deposit guarantee in the amount of $ 2.5 million and
has agreed to an additional advance of $7 million against the purchase price,
pursuant to an agreement to extend the closing date to June 30, 2008. The
Company plans to undertake a financing in order to complete the transaction.
    During the first quarter of 2008, Colombia Goldfields continued to
progress toward completing its previously announced acquisition of Colombia
Gold PLC, a privately held U.K. company, to acquire Colombia Gold's issued and
outstanding shares. Colombia Gold's principal asset is the mining concessions
on the Echandia property located immediately adjacent to Marmato Mountain.
Colombia Goldfields believes that the Marmato geologic structures continue
onto Echandia. The transaction is subject to negotiation and execution of a
definitive agreement, the completion of due diligence and customary conditions
as well as regulatory and other required approvals.

    Town Relocation

    The Colombian government is proceeding with its relocation of the
citizens and public institutions of Marmato to the new town of El Llano,
located four kilometers away. There are currently 160 homes in El Llano;
29 new homes are currently being built for families displaced by landslides on
Marmato in 2007. A further 47 homes are about to be funded for other families
displaced by the same landslide.
    On April 16, 2008, a government representative for the relocation of
Marmato confirmed that, within 45 days, construction of a new administrative
building was to begin using funds from the National Government. The new
facility will replace the current mayor's office, notary and registry office.
The police station is currently under construction in El Llano. Public deeds
have been signed with the municipality to construct the new hospital, with
funds from the Ministry of Social Protection and the Territorial
administration and a public deed has been signed for the location of the new
school, which will house 1,200 students.
    Once all the new buildings have been completed, all the old sites in the
current town site are expected to be torn down. All the new buildings are
expected to be inaugurated in 2009. The current Territorial Organizational
scheme definitively outlines that Marmato is in a state of high vulnerability
to landslides. The local environmental authority (Corpocaldas) is studying the
costs of relocating the remainder of the inhabitants from old Marmato. As
well, a decision has been made to complete paving of the access road to the
new town of El Llano only and will not continue to old Marmato.

    Unaudited results for the First Quarter ended March 31, 2008

    The Company incurred a loss for the quarter ending March 31, 2008 of
$6.2 million or $(0.07) per share, compared to a loss of $2.5 million or
$(0.04) per share for the same period in 2007. The loss was driven by mineral
property exploration costs of $3.0 million and general and administrative
expenses of $2.2 million along with a foreign exchange loss, primarily on the
translation of deferred tax balances, of $1.8 million.
    Total assets at March 31, 2008 totaled $75.5 million, including mineral
and exploration properties and rights of $65.8 million and cash and cash
equivalents of $4.9 million, compared with total assets of $74.5 million at
December 31, 2007. As of March 31, 2008, stockholders equity was
$51.1 million, compared to $51.1 million at December 31, 2007.

    Private Placement Completed

    On March 31, 2008, the Company completed a non-brokered private placement
of 6,342,411 units at a price of $0.85 per unit, providing the Company with
gross proceeds of approximately $5.4 million. Each unit consisted of one
common share of the Company and one common share purchase warrant of the
Company. Each warrant entitles the holder to purchase one common share of the
Company at a price of $1.10 for a period of two years from the closing date.
The net proceeds are being used to advance the purchase of the legal mining
claims and milling operations on Marmato Mountain, for exploration
expenditures, to repay short term liabilities and for general corporate
purposes.

    Events Subsequent to the Close of the Quarter

    On April 18, 2008, the Company announced that it had received the results
of independent testing of the metallurgical properties, including projected
recoveries, of samples from the Marmato Mountain Gold Development Project.
Recovery rates of up to 92% were achieved depending upon the chosen flowsheet.
SGS Lakefield Research conducted the test on two composite samples, each
containing material representative of the ore grades at Marmato.
    These successful results confirmed management's view that very high
recovery rates using conventional technology are likely to be achieved should
Marmato be placed into production. The findings are also consistent with
recoveries from existing production at the mill located at Zona Baja, where
recoveries of more than 88% are being achieved using gravity separation
followed by flotation, then leaching of the flotation concentrates.

    About Colombia Goldfields

    Colombia Goldfields Ltd., through its subsidiaries Compania Minera de
Caldas S.A. and Gavilan Minerals S.A., is developing what we believe is a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
district.
    Colombia Goldfields is traded in the US under the symbol CGDF, on the
Toronto Stock Exchange under the symbol GOL, and in Germany under the symbol
C2B. The Company's full March 31, 2008 unaudited consolidated financial
statements and management's discussion and analysis are available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.

    Disclaimers

    This release makes reference to mineral resources. Investors are
cautioned not to assume that all or any part of mineral resources will ever be
converted into mineral reserves.

    This release contains forward-looking statements that are based on the
beliefs of Colombia Goldfield's management and reflect Colombia Goldfield's
current expectations as contemplated under section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities and Exchange Act of
1934, as amended. When used in this release, the words "estimate, "project,"
"believe," "anticipate," "intend," "expect," "plan," "predict," "may,"
"should," "will," "can," the negative of these words, or such other variations
thereon, or comparable terminology, are all intended to identify
forward-looking statements. Such statements reflect the current views of
Colombia Goldfields with respect to future events based on currently available
information and are subject to numerous assumptions, risks and uncertainties,
including, but not limited to, risks and uncertainties pertaining to
development of mining properties, changes in economic conditions and other
risks, uncertainties and factors, which may cause the actual results,
performance, or achievement expressed or implied by such forward-looking
statements to differ materially from the forward looking statements. In
particular, there is no assurance that a definitive agreement will be executed
or that the proposed transaction will be completed.

For further information: J. Randall Martin, Vice Chairman and CEO,
Colombia Goldfields Ltd.(TSX: GOL/OTC BB: CGDF), 8 King Street East, Suite
208, Toronto, Ontario, M5C 1B5, T: (416) 361-9640, F: (416) 361-0883,
info@colombiagoldfields.com; U.S. Investor Relations: John Menditto, Roth
Investor Relations, Inc., Tel. (732) 792-2200, Email: johnmenditto@rothir.com;
Canadian Investor Relations: Martti Kangas, V.P. Corporate Development,
Colombia Goldfields, Ltd., Tel: (416) 361-9640, martti@colombiagoldfields.com