Underwriters to Exercise Over-Allotment Option


    MONTREAL, June 28 /CNW Telbec/ - European Goldfields Limited
(TSX / AIM: EGU) (the "Company" or "European Goldfields") is pleased to
announce that RBC Capital Markets, on behalf of itself, Evolution Securities
Ltd, Raymond James Limited, Dundee Securities Corporation and Orion Securities
Inc. (collectively, the "Underwriters"), has given notice to the Company that
the Underwriters wish to exercise their over-allotment option to purchase a
total of 3.6 million common shares of the Company (the "Over-Allotment
Shares") at a price of Cdn$5.00 per share, generating gross proceeds to the
Company of Cdn$18 million. The over-allotment option was granted to the
Underwriters by the Company to cover over-allotments under the terms of the
Company's recently closed financing (as explained in the Company's press
release dated 26 June 2007).
    The sale of the Over-Allotment Shares is scheduled to close on or about
29 June 2007.
    As with the proceeds of the recently closed financing, the Company
intends to use the net proceeds from the sale of the Over-Allotment Shares to
finance the development of its projects in Greece and Romania, and for general
corporate purposes.
    The Over-Allotment Shares are expected to commence trading on the Toronto
Stock Exchange on 29 June 2007 and on the AIM Market of the London Stock
Exchange on 3 July 2007.
    The Over-Allotment Shares have not been, nor will be, registered under
the United States Securities Act of 1933, as amended, or any state securities
laws and may not be offered or sold in the United States absent registration
or applicable exemption from the registration requirement of such Act and
applicable state securities laws. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to qualification under the securities laws of
any such jurisdiction. Any public offering of securities to be made in the
United States would, if made, be made by means of a prospectus that could be
obtained from the Company that would contain detailed information about the
Company and management as well as financial statements.

    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. European Goldfields has entered into an agreement to acquire an
additional 30% interest in Hellas Gold, which would increase European
Goldfields' interest to 95%.
    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

For further information:

For further information: European Goldfields: David Reading, Chief
Executive Officer, Office: +44 (0)20 7408 9534, info@egoldfields.com; RBC
Capital Markets: Patrick Meier; Peter Barrett-Lennard, Office: +44 (0)20 7653
4093; Evolution Securities: Frank Moxon; Simon Edwards, Office: +44 (0)20 7071
4300; Buchanan Communications: Bobby Morse, bobbym@buchanan.uk.com; Ben
Willey, Office: +44 (0)20 7466 5000; Renmark Financial Communication: Neil G.
Murray-Lyon, nmurraylyon@renmarkfinancial.com; Barbara Komorowski,
bkomorowski@renmarkfinancial.com; Media - Eva Jura,
ejura@renmarkfinancial.com; Office: (514) 939-3989, Fax: (514) 939-3717,

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