EGU European Gold

RNS Number:2040Z
European Goldfields Ltd
28 June 2007



Immediate Release                                                 28 June 2007



                            European Goldfields Ltd

                 Underwriters to Exercise Over-Allotment Option

            NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
                   OR FOR DISSEMINATION IN THE UNITED STATES

28 June 2007 - 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.


For further information please contact:

European Goldfields:                    e-mail: info@egoldfields.com
David Reading, Chief Executive          Office: +44 (0)20 7408 9534
Officer
RBC Capital Markets                     Office: +44 (0)20 7653 4093
Patrick Meier / Peter Barrett-Lennard

Evolution Securities                    Office: +44 (0)20 7071 4300
Frank Moxon / Simon Edwards

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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