EGU European Gold

RNS Number:3809V
European Goldfields Ltd
24 April 2007


For Immediate Release                                           24 April 2007



                           European Goldfields Limited

                 Stratoni Silver Reserve Sold to Silver Wheaton


24 April 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company") is
pleased to announce that its subsidiary Hellas Gold S.A. has agreed to sell to
Silver Wheaton Corp. (TSX: SLW; NYSE: SLW) all of the silver metal to be
produced from ore extracted during the mine-life within an area of some 7 km(2)
around its zinc-lead-silver Stratoni mine in northern Greece. Silver production
at Stratoni is a by-product of lead-zinc operations.


The sale is made in consideration of an upfront payment to Hellas Gold of
US$57.5 million in cash, plus a fee per ounce of silver to be delivered to
Silver Wheaton of the lesser of US$3.90 (subject to an inflationary adjustment
beginning after year three) and the prevailing market price per ounce. The
current Stratoni proven & probable silver reserve contains some 10Moz of payable
silver.


The transaction does not apply to any additional silver resources within Hellas
Gold's 317 km(2) of mining and exploration licences in northern Greece,
including silver resources at Hellas Gold's other mine of Olympias, except for a
right of first refusal granted to Silver Wheaton on similar future transactions
involving silver.


The proceeds of this transaction will be used to accelerate development and
provide flexibility in financing of the European Goldfields project pipeline in
Greece. The project development is planned in phases with the Company's flagship
project, the Skouries copper-gold porphyry, being a priority.


Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are delighted to have completed this important
transaction with Silver Wheaton. Silver at Stratoni is a by-product of lead, and
represents only 13% of our payable revenue at Stratoni. By monetising our silver
reserve now, this allows us to accelerate the development of our other major
gold projects in Greece and fund further exploration work on specific targets."



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.

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.

For further information please contact:


European Goldfields:                  e-mail: info@egoldfields.com

David Reading, Chief Executive        Office: +44 (0)20 7408 9534
Officer

Buchanan Communications:              e-mail: bobbym@buchanan.uk.com

Bobby Morse / Ben Willey              Office: +44 (0)20 7466 5000

Renmark Financial Communication:      e-mail:
                                      nmurraylyon@renmarkfinancial.com
Neil G. Murray-Lyon
                                      Office: +1 514 939 3989

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 Info
rmation 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 law.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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