Colombia Goldfields closes $9.0 million Private Placement

    TORONTO, March 22 /CNW/ - Colombia Goldfields Ltd. (CGDF.OB) ("CGL" or
the "Company") today announced that it has closed a Private Placement
financing of 9,020,000 common shares at US$1.00 per share. There are no
warrants attached to the shares. The financing was arranged by Evergreen
Capital Corporation Sarl of Geneva, Switzerland.
    "This financing will allow us to advance the Marmato project, including
purchase of the remaining concessions and preparation for a revised resource
estimate," said J. Randy Martin, President and CEO, Colombia Goldfields Ltd.
"It will also provide working capital for the Company as we evaluate our
future financing options and work toward obtaining a listing on a major North
American stock exchange."
    The Form of Offering was under the U.S. Securities Exchange Commission's
(SEC) Regulation S. The Company has undertaken to file an SB-2 Registration
Statement, covering the shares to be issued, with the SEC as soon as practical
following closing. If the Registration Statement is not approved within six
months following closing of the Private Placement, CGL will pay a cash penalty
of 1.5% per month for each month of delay or portion thereof.
    The use of proceeds includes funding the purchase of the remaining legal
mining claims and milling operations on Marmato Mountain that are not already
owned by CGL. To date, the Company has acquired 95 of the 117 legal mines. CGL
will also begin Stage 1 of the exploration plan being an 8,000 meter surface
drilling program as well as 10,000 meters of underground sampling at Marmato
and a 2,000 meter drill program at the nearby Caramanta project.
    The syndicate's fees for arranging the financing are calculated as 6% of
the gross proceeds ($541,200) and agents' warrants equivalent to 6.0% of the
number of shares issued (541,200 warrants), exercisable for 36 months at the
same price of the Offering.
    Following the Private Placement the Company's corporate structure will
include 65,056,858 million outstanding common shares, 7,431,906 million
warrants and 4,427,500 million options; as a result, CGL will have 76,916,255
million shares outstanding in the event all outstanding warrants and options
are exercised.

    About Colombia Goldfields

    Colombia Goldfields Limited, through our Colombian subsidiaries Cia
Minera de Caldas S.A. and Gavilan Minerales S.A., is developing a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
district through a program of mineral property acquisitions, community
resettlement and exploration.

    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.

For further information:

For further information: Randy Martin, President & CEO, Colombia
Goldfields Ltd. (OTC BB: CGDF), 8 King Street East, Suite 208, Toronto,
Ontario, M5C 1B5, T: (416) 203-3856, F: (416) 361-0883,,; Martti Kangas, The
Equicom Group, Toronto, ON, (416) 815-0700 x 243

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