Colorado Goldfields Inc. President and CEO Lee Rice Comments; Global Unrest Fuels Gold Prices and Proclaims Company's Choice of Dry Stacking Is the 'Wave of the Future' for Gold Mill Tailings and the Pride of the West Mill Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 02/22/11 -- Colorado Goldfields Inc.'s (OTCBB: CGFIA) CEO Lee R. Rice recently sat for an interview with the Company's CFO, C. Stephen Guyer regarding the impact of global unrest on gold prices, and the strategic reasons for the Company's dry stack approach to tailings processing and management at its Pride of the West Mill.

Following is the interview.

Guyer: Bloomberg recently reported, 'Gold rose, silver gained to a 30- year high and palladium jumped to the highest price in almost 10 years on demand for precious metals to hedge against declines in other assets because of unrest in the Middle East.' What is the link between global political unrest and gold prices?

Rice: Gold remains one of the few currencies that have intrinsic value. As political unrest and uncertainty devalue some currencies, the basic value of gold on a global scale increases. The location of the unrest draws viral multiplier demand as well.

Guyer: What do you mean by 'viral multiplier' demand?

Rice: Well, for example in the Middle East gold is being purchased by local businesses as a hedge against local currency devaluation. Knowing that the price will rise in that region, others can multiply their investment by buying gold in those markets. As Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said last week, 'If you see violence, you would buy gold expecting that the domestics would buy gold.'

Guyer: Without a doubt, Egypt has been the center of drastic political change. Are there other, maybe even more subtle, factors that fuel Egyptian gold purchases?

Rice: It is the uncertainty of the political and economic future of businesses and the destiny of the people of Egypt at the present time that causes the value of the Egyptian Pound (EGP) to fall relative to other countries' currencies. Because other countries' currencies may also be troubled or unstable, there is a desire to preserve existing wealth by conversion into materials with intrinsic value that are unaffected by currency devaluation. Those materials are metals, particularly gold.

Guyer: Is there a tie between political unrest and inflation?

Rice: Yes. Gold has been a fundamental inflation hedge, at least at a basic level, for hundreds of years due to its limited supply, and intrinsic value in many cultures. Moreover, I agree with Peter Schiff when he said, 'I believe that physical precious metals are the ultimate insurance policy in today's perilous world. No other investment offers the same level of financial privacy, while eliminating counterparty risk. Physical precious metals do not depend on a court, a bank, or a stock exchange -- their value is intrinsic.' The more unrest in governments, the more people will accumulate intrinsic valuables.

Guyer: What will this mean specifically for Colorado Goldfields?

Rice: Once again the robustness of the gold market deepens the support for the economies of the Company. Colorado Goldfields is attempting to increase its milling capacity by adopting dry stack tailings disposal at the same time as gold prices experience another increase. Although dry stacking is slightly more costly than disposal in traditional tailings ponds, it is becoming a preferred practice to help minimize environmental impacts and liabilities of mine and mill tailings disposal. It is the wave of the future for tailings management in this country.

Guyer: How does dry stacking increase the overall milling capacity for the Company?

Rice: Given the planned site chosen by the Company, which is 35 acres 2 miles northeast of the Pride of the West Mill, we have projected capacity to place 1 million tons of tailings. That effectively translates into Colorado Goldfields milling 1 million tons of ore prior to any major capital expansion. At 0.35 ounces of gold per ton, and a price of $1,400 per troy ounce, that represents approximately $500 million in gross revenue, and at 0.8 ounces per ton, gross revenue would be in excess of $1 billion; not to mention the cost benefits of backfilling and potential reprocessing.

Guyer: Those are impressive numbers. It sounds like 'backfilling' and 'reprocessing' could be substantial topics.

Rice: They are. Both of these techniques further the depth of opportunity for the Company. The most significant take-away from the Company's dry stacking approach is to understand that with it we have a 15 to 20 year useful life for the Pride of the West Mill before any major capital expenditure is required. This is compelling by any measure.

Mr. Rice has been at the helm of Colorado Goldfields since September 2008, and brings over 40 years of geological and engineering experience to the enterprise. Mr. Rice has been a Registered Professional Engineer in Colorado for more than 30 years and is a Registered Member of the Society for Mining, Metallurgy and Exploration. Mr. Rice also is a director of a public company traded on the Toronto Venture Exchange with its headquarters in Vancouver, British Columbia.

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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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Investor Relations

Colorado Goldfields Inc.

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