Stratoni Silver Reserve Sold to Silver Wheaton



    MONTREAL, April 24 /CNW Telbec/ - European Goldfields Limited
(TSX / AIM: EGU) (the "Company") is pleased to announce that its subsidiary
Hellas Gold S.A. has agreed to sell to Silver Wheaton Corp. (TSX: SLW; NYSE:  
SLW) all of the silver metal to be produced from ore extracted during the
mine-life within an area of some 7 km(2) around its zinc-lead-silver Stratoni
mine in northern Greece. Silver production at Stratoni is a by-product of
lead-zinc operations.
    The sale is made in consideration of an upfront payment to Hellas Gold of
US$57.5 million in cash, plus a fee per ounce of silver to be delivered to
Silver Wheaton of the lesser of US$3.90 (subject to an inflationary adjustment
beginning after year three) and the prevailing market price per ounce. The
current Stratoni proven & probable silver reserve contains some 10Moz of
payable silver.
    The transaction does not apply to any additional silver resources within
Hellas Gold's 317 km(2) of mining and exploration licences in northern Greece,
including silver resources at Hellas Gold's other mine of Olympias, except for
a right of first refusal granted to Silver Wheaton on similar future
transactions involving silver.
    The proceeds of this transaction will be used to accelerate development
and provide flexibility in financing of the European Goldfields project
pipeline in Greece. The project development is planned in phases with the
Company's flagship project, the Skouries copper-gold porphyry, being a
priority.
    Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are delighted to have completed this important
transaction with Silver Wheaton. Silver at Stratoni is a by-product of lead,
and represents only 13% of our payable revenue at Stratoni. By monetising our
silver reserve now, this allows us to accelerate the development of our other
major gold projects in Greece and fund further exploration work on specific
targets."

    About European Goldfields

    European Goldfields 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 65% interest in Hellas Gold S.A.
Hellas Gold owns three major gold and base metal deposits in Northern Greece.
The deposits are the polymetallic projects of Stratoni and Olympias which
contain gold, zinc, lead and silver, and the Skouries copper/gold porphyry
body. Hellas Gold commenced production at Stratoni in September 2005 and
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, Office: +44 (0)20 7408 9534, info@egoldfields.com; 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, (514) 939-3989, Fax: (514)
939-3717; www.renmarkfinancial.com

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