SAN DIEGO, June 3 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. (Pink Sheets: EGDD) ("EGI") is pleased to announce that the purchase of Barbrook Mines Limited by its South African wholly owned subsidiary, Eastern Goldfields SA (Pty) Ltd ("EGSA"), from Caledonia Mining Corporation ("Caledonia") (TSX: CAL; OTC Bulletin Board: CALVF; AIM: CMCL) was concluded on May 30, 2008. EGSA has paid approximately US$9.3 million in full settlement for the entire share capital and loan claims of Barbrook Mines Limited. The purchase of Barbrook Mines provides EGI Group with an existing production infrastructure and is ideally located which may provide synergies with EGI's existing and future operations. The Mineral Resources at Barbrook bring the group's resource base to an estimated 4.2 million ounces. EGI President Mike McChesney stated, "We are delighted to close this acquisition which adds substantially to our long term growth in gold production. This transaction is consistent with EGI's continuing strategy in building the company and we believe that it will create significant value for its shareholders." 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. 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,' 'estimates,' 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, 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: William M. Aul, +1-619-497-2555, , for Eastern Goldfields, Inc.

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