Colorado Goldfields Inc. Announces Innovative Dry Stack Plan Toward Successful Pride of the West Mill Permitting Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 02/09/11 -- Colorado Goldfields Inc. (OTCBB: CGFIA) announced today that the Company is developing a dry stack approach for tailings disposal at its Pride of the West Mill. Although used extensively in other parts of the world, such as Chile, South America, Mexico, and the Middle East, this is an innovative method of tailings disposal for the U.S. and Colorado. Mining operations using dry stacking in the U.S. include: Greens Creek Mine, the Pogo Mine, Nixon's Fork, and the Kennings ton mine all located in Alaska, TVX Gold located in Montana, JR Simplot Co. in Idaho, and Mineral Ridge located in Nevada.

'This approach to tailings disposal should remove all regulatory agency concerns surrounding the existing tailings ponds since those ponds will be reclaimed. Furthermore, and maybe even more importantly, this approach will increase the ultimate useful life and financial viability of the mill by several years,' stated Stephen C. Fearn, consulting Registered Professional Engineer for Colorado Goldfields.

Lee Rice, President & CEO for the Company, described dry stack plan and its importance as follows:

Moving forward we will develop a 'dry stack' method of tailings disposal as part of a new permit amendment.

The DRMS accepted the parts of the amendment regarding:

• Mill building;


• Laboratory building;


• Ore stockpile area;


• Leach plant building;


• River protection dike;


• Procedures for custom or 'toll' milling.

In a Filtered Tailings or Dry Stacking system, the mill tailings are filtered (de-watered) to remove approximately 85% of the water at the mill plant itself. The resulting material is approximately 85% solids and 15% water and can be transported by belt conveyor or trucks to a disposal area where they can be placed in an environmentally contained area and handled with earth moving equipment.

Utilizing this approach for tailings disposal will remove some of the issues associated with our prior permit amendment, such as:

• Providing improved long term geotechnical stability of the tailings disposal area;


• Reducing concerns about potential seismic activity;


• Greatly reduce environmental risks of contamination of ground and surface water;


• Making overall compliance with environmental regulations much more efficient and straight forward.

We will also realize some immediate benefits from this Dry Stack approach, such as:

• Smaller environmental footprint for tailings disposal area;


• Smaller operating area at any one time, which is easier to manage;


• Vastly improved management of tailing disposal operations during winter season, which is approximately 7 months of the year;


• Facilitates the ability to use tailings for mine backfill to improve underground ore extraction efficiency and reduce need for additional tailings disposal area;


• Conserves water use in the milling process;


• Lower long-term environmental liability from possible failure of conventional tailings dam structures.

'We believe that this new approach to tailings disposal, the one year extension of the mill mortgage to December 31, 2011, and the successful arrangement with Division of Reclamation Mining and Safety for funding the bond increase announced last Tuesday, will move the business plan forward rapidly,' stated C. Stephen Guyer, CFO for Colorado Goldfields.

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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCBB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern, up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.

Notice regarding forward-looking statements
This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under 'Risk Factors' in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any 'forward-looking statement,' to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as 'measured,' 'indicated,' and 'inferred' 'resources,' which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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Contact:
Investor Relations

Colorado Goldfields Inc.

866-579-9444 or 303-984-0524
http://www.cologold.com