Sale of Extra 71,000 Tonnes of Olympias Gold Concentrates

    WHITEHORSE, Yukon, Oct. 1 /CNW Telbec/ - European Goldfields Limited
(TSX / AIM: EGU) is pleased to announce that its 95%-owned subsidiary Hellas
Gold S.A. has entered into an off-take agreement with a subsidiary of Celtic
Resources Holdings Plc (AIM: CER) for the sale of 50,000 wet metric tonnes
(wmt) of gold-bearing pyrite concentrates previously produced from the
Olympias mine in Greece. Celtic Resources have agreed to pre-pay for the
concentrates within the next 10 days, and take delivery of the concentrates
within a period of 24 months following the date of the agreement. This is in
addition to the sale of 9,000 wmt of concentrates to Celtic Resources
announced in November 2006.
    Hellas Gold has also recently agreed terms for the sale of at least
21,000 wmt of concentrates by the end of 2007 to Trafigura Beheer B.V. In
total, these 71,000 wmt of concentrate contain approximately 50,000 oz of
    The Olympias project benefits from an existing stockpile of gold-bearing
pyrite concentrates which represented, at December 31, 2006, a reserve of
approximately 252,000 tonnes grading 23.3 g/t gold (containing 188,000 oz of
gold), in addition to substantial underground reserves of gold, lead, zinc and
    Hellas Gold has now secured the sale of the entire stockpile to six
different purchasers - Golden China Resources Corporation, Celtic Resources
Holdings Plc, MRI Trading AG, Euromin S.A. and Trafigura Beheer B.V.
    Hellas Gold plans to resume underground mining operations at Olympias
after permits are awarded, producing more gold bearing pyrite concentrates for
sale to existing and new off-take purchasers.
    Commenting on the new agreements with Celtic Resources and Trafigura,
David Reading, CEO of European Goldfields, said: "We are delighted to have
signed these new off-take agreements for the sale of our stockpile of gold
concentrates at Olympias. By doing so, we have achieved two key milestones in
the development of our company, securing the sale of the entire stockpile and
the sale of at least 100,000 tonnes of concentrates in 2007. The strong demand
for Olympias gold concentrates bodes well for the resumption of mining
operations at Olympias."

    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 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 2005, filed on SEDAR at 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

For further information:

For further information: European Goldfields: David Reading, Chief
Executive Officer, +44 (0)20 7408 9534,; Buchanan
Communications: Bobby Morse; Ben Willey, +44 (0)20 7466 5000,; Renmark Financial Communication: Neil G. Murray-Lyon,; Barbara Komorowski,; Media - Eva Jura,; (514) 939-3989, Fax: (514) 939-3717,; Evolution Securities: Simon Edwards; Neil Elliot,
+44 (0)20 7071 4300,

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