Acquisition of an Additional 30% Interest in Hellas Gold



    Purchase Price Reflects 15% Discount on Value of Hellas Gold

    MONTREAL, June 6 /CNW Telbec/ - European Goldfields Limited
(TSX/AIM: EGU) (the "Company" or "European Goldfields") wishes to clarify its
announcement of June 1, 2007 regarding the proposed acquisition of an
additional 30% interest in Hellas Gold S.A. ("Hellas Gold"), increasing the
Company's total interest to 95%.
    The purchase price for the acquisition was agreed at US$178 million. This
purchase price incorporates a 15% discount to the "see-through" value of
Hellas Gold, which includes the value of Hellas Gold's operating and
development assets and its cash balance of US$78 million. The "see through"
value of Hellas Gold and the purchase price for the additional 30% interest in
Hellas Gold were calculated as follows:

    
    See through value of Hellas Gold                                    US$m
    European Goldfields market capitalization as at May 31, 2007(1)      553
    Less:
      Value attributed to European Goldfields' Romanian assets
       (15% of market cap)                                               (83)
      Cash held by European Goldfields as at April 30, 2007              (17)
    -------------------------------------------------------------------------
    See through value of European Goldfields' 65% interest
     in Hellas Gold                                                      453
    See through value of 100% interest in Hellas Gold                    698

    Purchase price
    See through value of 30% interest in Hellas Gold acquired            209
    Less: 15% discount                                                   (31)
    -------------------------------------------------------------------------
    Purchase price                                                       178

    (1) Based upon the five-day volume-weighted average trading price of the
        Company's Common Shares on the TSX (C$5.14), 115.1 million issued
        shares and a US$:C$ exchange rate of US$1.00 = C$1.07.
    

    It is expected that approximately 94% of the $178 million purchase price
will be paid to Aktor S.A. in common shares of the Company, the balance to be
paid in cash. Of this cash portion, 50% will be re-invested by Aktor into
Hellas Gold, as funding towards maintaining its residual 5% shareholding
interest in Hellas Gold.
    The $31 million discount on the value of Hellas Gold represents an
immediate accretion of approximately C$0.22 per common share of the Company,
after taking into account the 35.25 million new common shares expected to be
issued as consideration for the acquisition.
    To demonstrate and confirm its long-term commitment to the Company, Aktor
has agreed not to sell the shares it receives as consideration until the
earlier of the fourth anniversary of the closing of the acquisition and the
date on which the Company's Skouries gold-copper porphyry mining project
commences production.
    A preliminary prospectus relating to a concurrent offering of common
shares of the Company has been filed with the securities commissions or
similar authorities in certain provinces of Canada. The preliminary prospectus
contains pro forma financial statements of the Company that give effect to the
proposed acquisition. The assumptions used in estimating the number of common
shares of the Company to be issued as consideration for the acquisition are
set out in the notes to such pro forma financial statements.




For further information:

For further information: European Goldfields: David Reading, Chief
Executive Officer, Office: +44 (0)20 7408 9534, info@egoldfields.com; RBC
Capital Markets: Patrick Meier; Peter Barrett-Lennard, Office: +44 (0)20 7653
4093; Evolution Securities: Simon Edwards; Neil Elliot, Office:  +44 (0)20
7071 4300; Buchanan Communications: Bobby Morse; Ben Willey, Office: +44 (0)20
7466 5000, bobbym@buchanan.uk.com; Renmark Financial Communication: Neil G.
Murray-Lyon, nmurraylyon@renmarkfinancial.com; Barbara Komorowski,
bkomorowski@renmarkfinancial.com; Media: Eva Jura, Office: +1 514 939-3989,
Fax: +1 514 939-3717, ejura@renmarkfinancial.com, www.renmarkfinanial.com

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EUROPEAN GOLDFIELDS LTD.

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