Colombia Goldfields Ltd. Closes US $5.4 Million Private Placement

    TORONTO, March 31 /CNW/ - Colombia Goldfields Ltd. (the "Company") (TSX:
GOL/OTCBB: CGDF) ("CGL" or the "Company") announced today that it has closed a
non-brokered private placement of 6,342,411 units at a price of US$0.85 per
unit, providing the Company with gross proceeds of approximately US
$5.4 million. Each unit consists of one common share of the Company and one
common share purchase warrant of the Company. Each warrant entitles the holder
to purchase one common share of the Company at a price of US$1.10 for a period
of two years from the closing date.
    The net proceeds will be used to advance the purchase of the legal mining
claims and milling operations on Marmato Mountain, for exploration
expenditures, to repay related party debts and for general corporate purposes.
    The units will not be 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 units.

    About Colombia Goldfields

    Colombia Goldfields Ltd., through its subsidiaries Compania Minera de
Caldas S.A. and Gavilan Minerals S.A., is developing what it believes is a
multi-million ounce gold resource in Colombia's historic Marmato Mountain gold
    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


    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. In
particular, there is no assurance that a definitive agreement will be executed
or that the proposed transaction will be completed.

For further information:

For further information: Company Contact: J. Randall Martin, Vice
Chairman and CEO, Colombia Goldfields Ltd. (TSX: GOL, OTC BB: CGDF), 8 King
Street East, Suite 208, Toronto, Ontario, M5C 1B5, T: (416) 361-9640, F: (416)
361-0883,,; U.S.
Investor Relations: John Menditto, Roth Investor Relations, Inc., Tel. (732)
792-2200, Email:; Canadian Investor Relations: Martti
Kangas, Colombia Goldfields, Ltd., Tel: (416) 361-9640,

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