SAN DIEGO, May 2 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. (Pink Sheets: EGDD) ("EGI") is pleased to announce that: 1. The Company's South African wholly owned subsidiary Eastern Goldfields SA (Proprietary) Limited ("EGSA") is seeking a listing on the JSE Securities Exchange in Johannesburg with a view to raising necessary capital for its ongoing development. Having considered the recent developments in financial markets, the Company's management believes that EGSA's listing on the JSE Securities Exchange may provide the Group with better prospects than the earlier envisaged listing of the Company's stock on London's Alternative Investment Market. Accordingly, necessary work on this effort and the Company anticipates that EGSA may obtain a listing on or about September 2008. 2. On March 28, 2008 EGSA successfully completed a Convertible Loan Agreement that involved EGSA receiving 32,000,000 SA Rands (approximately $4 Million) of proceeds. Total funds were received by April 18, 2008. The loan principal can convert into 6.9% of the total issued and outstanding shares of the ordinary capital of EGSA after the conversion of the loan by EGSA. Conditions relating to interest payments are as follows: -- If EGSA is able to list its shares with the JSE Limited (JSE) within six months of the agreement date then no interest is due and payable. -- If EGSA is not able to list its ordinary shares with the JSE within six months of the agreement date then interest will accrue at the South African Prime Lending Rate. -- If EGSA lists its ordinary shares with the JSE after six months but before twelve months of the agreement date, then interest will accrue and be paid on a monthly basis until conversion or repayment of the loan. -- If EGSA has been unable to list its ordinary shares with the JSE within twelve months of the agreement date, then the lender can demand repayment of principal and accrued interest or conversion of the debt into the corresponding ordinary shares of EGSA. 3. EGSA is undertaking efforts which, if it is successful, may result in the Company raising a further 100,000,000 SA Rands (approximately $12.5 Million) in order to finance the group's expansion plans and to fund the acquisition of Barbrook Mines Limited. The timetable to complete the acquisition of the Barbrook Mines Limited has been extended to May 31, 2008. As previously stated, the Company believes that the planned acquisition of Barbrook Mines Limited may allow the Group to add not only mineral resources but also a processing plant capable of treating the planned underground production from Lily Mine at the rate of up to 35,000 oz. annually. 4. That EGSA, in line with the group's growth strategy, is holding discussions regarding the possible acquisition of the nearby Agnes Mine which, if successful, will add materially to the Company's mineral asset base. 5. That Mr. Kuseni Dlamini, one of the directors of EGSA and head of its Black Economic Empowerment partner, has recently been appointed as Chief Executive Officer of Anglo American SA, the South African subsidiary of one of the world's largest mining companies. EGI's President, Mike McChesney, said: "This is arguably the most powerful mining job in South Africa and we are delighted that Kuseni has been chosen for the position. We wish him every success in this new executive role and we welcome his continued input and support into the expansion of EGI Group." About EGI: EGI is a growing company engaged in the mining, exploration and acquisition of gold properties in some of Southern Africa's most prospective regions. The company holds mineral rights over 34,600 acres (14,000 ha) and currently has mineral resources in excess of 2.2 million ounces and mineral reserves in excess of 565,000 oz. FORWARD-LOOKING STATEMENTS This press release contains 'forward-looking statements'. These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management wishes to caution the reader that these forward-looking statements, including, but not limited to, statements regarding the Company's plans, goals the estimates and assumptions, whether the Company or its subsidiary will be successful in raising capital or obtaining any listing on the JSE, and the business strategy of the Company and other matters that are not historical facts are only predictions. No assurances can be given that such predictions and the estimates regarding mineral reserves, success of mining plans, or other projections will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions or assumptions, prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the likelihood that the assumptions and estimates made, a decline in the price of gold, adverse labor conditions in the mining labor market in South Africa, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events. DATASOURCE: Eastern Goldfields, Inc. CONTACT: Derrick Short of Eastern Goldfields, Inc., +1-619-497-2555

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