Colombia Goldfields Ltd. closes U.S. $9.5 million private placement



    TORONTO, June 18 /CNW/ - Colombia Goldfields Ltd. (or the "Company")
(TSX: GOL/OTCBB: CGDF) announced today that it has closed a private placement
of 11,167,000 special warrants (the "Special Warrants") at a price of US$0.85
per Special Warrant, providing the Company with gross proceeds of
approximately US $9.5 million. Each Special Warrant will be automatically
exercised for no additional consideration to acquire one unit (the "Units"),
subject to adjustment in certain events, at 5:00 pm (Toronto time) on the
earliest of (a) the third business day after the date that a receipt is issued
by the securities regulatory authorities in the jurisdictions of Canada where
the Special Warrants are sold for the final prospectus qualifying the
distribution of the Units to be issued upon the exercise of the Special
Warrants, and (b) the date that is four months and one day following the
closing date of the Offering. Each Unit will consist of one common share of
the Company (the "Common Shares") and one Common Share purchase warrant of the
Company (the "Warrants"). Each Warrant will entitle the holder thereof to
acquire one Common Share at a price of US$1.50 at any time until 4:00 p.m.
(Toronto time) on the date which is 60 months following the closing date of
the offering.
    The Special Warrants, Units, Warrants and Common Shares have not been
registered under the U.S. Securities Act of 1933 or any state securities laws,
and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements under the Securities
Act of 1933 and any applicable state securities laws. This press release does
not constitute an offer to sell or the solicitation of an offer to buy the
Special Warrants, Units, Warrants and Common Shares.

    About Colombia Goldfields

    Colombia Goldfields Ltd., through our 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. Further information about the Company's is available at
www.colombiagoldfields.com, EDGAR at www.sec.gov and SEDAR at www.sedar.com
under the Company's profile.

    Disclaimer

    This release contains forward-looking statements that are based on the
beliefs of the Company's management and reflect the Company'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.





For further information:

For further information: Randy Martin, Vice Chairman and CEO, Colombia
Goldfields Ltd., 8 King Street East, Suite 208, Toronto, Ontario, M5C 1B5, T:
(416) 361-9640, F: (416) 361-0883, info@colombiagoldfields.com,
www.colombiagoldfields.com; U.S. Investor Relations: Michelle Roth, Roth
Investor Relations, Inc., Tel. (732) 792-2200, Email: michelleroth@rothir.com;
Canadian Investor Relations: Martti Kangas, V.P. Corporate Development,
Colombia Goldfields, Ltd., Tel: (416) 361-9640, martti@colombiagoldfields.com

Organization Profile

COLOMBIA GOLDFIELDS

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