Joint Venture in Turkey with Ariana Resources



    WHITEHORSE, YT, Feb. 28 /CNW Telbec/ - European Goldfields Limited
(TSX / AIM: EGU) is pleased to announce that it has signed a Heads of
Agreement with Ariana Resources plc (AIM: AAU) ("Ariana") for the joint
development of Ariana's properties in North-eastern Turkey, which include the
Ardala copper-gold porphyry and eleven other licences covering a total area of
168km2.
    These projects are located in the Pontides region of Turkey, a highly
prospective geological terrain containing several major deposits. The Ardala
Cu-Au porphyry has been the subject of reconnaissance drilling around the
periphery of a porphyry intrusion, which identified encouraging grades of
copper and gold. It has a 600m x 700m surface exposure centred on a magnetic
high of 1,000m x 1,000m extent. Copper-gold mineralisation has also been
identified on other properties in the vicinity of Ardala within granitoids and
in the surrounding country rocks.
    Under the agreement, European Goldfields will initially own 51% of the
properties transferred by Ariana into the joint venture. European Goldfields
will then fund all development costs of these initial properties and any
future properties located within a defined area in North-eastern Turkey until
completion of a Bankable Feasibility Study, at which time European Goldfields'
interest in each relevant project will increase to between 80% and 90%,
respectively.
    In addition, European Goldfields has agreed to subscribe for new shares
in Ariana at 5 pence per share in a private placement, resulting in European
Goldfields owning 20% of the outstanding shares in Ariana following the
placement, for a total consideration of approximately (pnds stlg)890,000.
    Ariana also holds properties in Western Turkey where exploration of
epithermal vein systems has drill tested a number of targets and defined other
targets for further investigation. Ariana has also developed an extensive
remote sensing database covering the most prospective parts of Turkey.
    Completion of the joint venture and the placing is expected by mid-April
2008, conditional upon satisfactory due diligence and the signing of
definitive agreements.
    Commenting on the strategic alliance, David Reading, Chief Executive
Officer of European Goldfields, said: "We are excited at this opportunity of
rapidly growing our business into Turkey in partnership with Ariana Resources,
which has a proven track record of securing prospective exploration licences
and operating effectively in the country. This joint venture is part of our
strategy to expand into the mineral belts within South-East Europe and
represents an obvious extension with similar geology and the same styles of
mineralisation as we have already encountered in Greece. European Goldfields
continues in its long-term objective of becoming a major precious and base
metals producer in South-East Europe."

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

    Forward-looking statements

    Certain statements and information contained in this document, including
any information as to the Company's future financial or operating performance
and other statements that express management's expectations or estimates of
future performance, constitute forward-looking information under provisions of
Canadian provincial securities laws. When used in this document, the words
"anticipate", "expect", "will", "intend", "estimate", "forecast", "planned"
and similar expressions are intended to identify forward-looking statements or
information. Forward-looking statements include, but are not limited to, the
estimation of mineral reserves and resources, the timing and amount of
estimated future production, costs and timing of development of new deposits,
permitting time lines and expectations regarding metal recovery rates.
Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. The Company cautions the reader that such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual financial results, performance or
achievements of the Company to be materially different from its estimated
future results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other factors
include, but are not limited to: changes in the price of gold, base metals or
certain other commodities (such as fuel and electricity) and currencies;
uncertainty of mineral reserves, resources, grades and recovery estimates;
uncertainty of future production, capital expenditures and other costs;
currency fluctuations; financing and additional capital requirements; the
successful and timely permitting of the Company's Skouries, Olympias and
Certej projects; legislative, political, social or economic developments in
the jurisdictions in which the Company carries on business; operating or
technical difficulties in connection with mining or development activities;
the speculative nature of gold and base metals exploration and development,
including the risks of diminishing quantities or grades of reserves; the risks
normally involved in the exploration, development and mining business; and
risks associated with internal control over financial reporting. For a more
detailed discussion of such risks and material factors or assumptions
underlying these forward-looking statements, see the Company's Annual
Information Form for the year ended 31 December 2006, filed on SEDAR at
www.sedar.com. The Company does not intend, and does not assume any
obligation, to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required by
law.




For further information:

For further information: European Goldfields: David Reading, Chief
Executive Officer, info@egoldfields.com, +44 (0)20 7408 9534; Buchanan
Communications: Bobby Morse; Ben Willey, bobbym@buchanan.uk.com, +44 (0)20
7466 5000; Renmark Financial Communication: Jason Roy,
jroy@renmarkfinancial.com; Josh Rivard, jrivard@renmarkfinancial.com; Media
-François Trépanier, ftrepanier@renmarkfinancial.com, (514) 939-3989, Fax:
(514) 939-3717, www.renmarkfinancial.com; RBC Capital Markets: Andrew K Smith;
Sarah Wharry, andrew.smith@rbccm.com, +44 (0)20 7029 7882

Organization Profile

EUROPEAN GOLDFIELDS LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890