Gold Closes at Record $1,433.20 per Ounce on March 1, 2011; Colorado Goldfields Inc. Management Projects 1st Year Mill Revenue at $14.3 Million; Sets New Historic Resource Gold Valuation for Brooklyn Mine of $20.4 Million; Restates Gross Dollar Mill

LAKEWOOD, CO -- (Marketwire) -- 03/02/11 -- Colorado Goldfields Inc. (OTCQB: CGFIA) (CGFIA.PK) -- In response to the rapidly changing economics for gold pricing (New York spot gold closed at $1,433.20 bid on March 1, 2011, as reported by Kitco Metals Inc.), and associated costs of production, Company management has reforecast the first year gross revenue for the Pride of the West Mill. Management now projects $14.3 million during the first 12 months of operation, which is an increase of $6.1 million.

In addition, the Company is pleased to provide an update of the 2011 work plan for the Brooklyn Mine. Colorado Goldfields entered into a lease with an option to purchase the property in September 2009. At that time, the historic resource was valued at $13.8 million based on a gold price of $950 per ounce. With the increase in gold price, the current value of just the historic resource is estimated to be $20.4 million, an increase of $6.6 million.

Colorado Goldfields' personnel have completed an extensive review of all available information concerning the exploration, past production, and the existing historic resource estimate (14,535 oz. gold at $1,400/oz., $20.4 million) of the project area, and have developed a specific and dynamic strategy for exploration.

The existing historic resource estimate for the Brooklyn Vein offers Colorado Goldfields a prime opportunity to develop a near-term minable reserve through confirmation and step-out diamond drilling. The expected resource blocks are located below the Number 2 Level of the mine and occur as down-dip extensions of known ore shoots. Most importantly, these ore shoots are open at depth and the continuity of mineralization is indicated by historic ore grade (0.10 to 2.13 ounces per ton of gold) drill intercepts over composite 4 foot mine widths.

In total, the Brooklyn property consists of approximately 600 acres of patented and unpatented mining claims centered on the Brooklyn Shear Zone. Surface reconnaissance of known mineralized areas, a geochemical soil survey, and a geophysical magnetic surveying are planned for late 2011 in order to assess the scale of any unrecognized mineralization.

'Aside from the obvious increase in value of the existing historic resource, this property is particularly exciting because it has been the site of several 'specimen grade' gold discoveries,' stated Stephen Guyer, CFO for Colorado Goldfields. 'We are targeting grades of 0.30 to 0.90 ounces per ton of gold, however the Brooklyn Vein has produced ore with grades as high as 30.0 ounces of gold per ton,' stated Jonathan Moore, Project Geologist. 'The Brooklyn represents a property that is perfectly aligned with our Company's strategy of targeting past producing mining properties in historic districts for exploration and production,' said Moore.

The Company also holds a lease on the King Solomon Mine, which is located on the southern flank of King Solomon Mountain, just a few hundred yards up the mountain from the first discovery of gold in the San Juan Mountains in Little Giant Basin. Opened in 1876, the mine was in production until 1883. Historic assay results showed gold content of 0.75 - 0.9 ounces per ton.

'The King Solomon Mine is of particular interest to Colorado Goldfields because of its strategic placement in Little Giant Basin. Although no activity has occurred on the property since 1883, nearby properties in Little Giant Basin have produced significant gold,' stated John Ferguson, director of Operations.

Management also restates the gross dollar value of the gold produced from the Pride of the West Mill. At 0.35 ounces of gold per ton, and a price of $1,400 per troy ounce, that represents approximately $500 million in gross value, and at 0.8 ounces per ton, gross value of the gold would be in excess of $1 billion; not to mention the cost benefits of backfilling and potential reprocessing.

Gold stocks

About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: 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.

Add to DiggBookmark with del.icio.usAdd to Newsvine

Contact:
Investor Relations

Colorado Goldfields Inc.

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