Colorado Goldfields Inc.'s Management Projects 35 Acre Land Acquisition for Dry Stack Site Valued at $1 Million; Provides 'Back to the Stack - Part 2' Insights; Colorado Goldfields to Attend 2011 Elko Roundtable Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 03/03/11 -- Colorado Goldfields Inc.'s (OTCQB: CGFIA) (PINKSHEETS: CGFIA) -- Company management announces today that it has entered into high-level negotiations to acquire 35 acres of highly accessible land in San Juan County for its dry stacking site. Based upon prevailing land values in the area, this acquisition has an estimated value of $1 million. 'We expect this transaction to be extremely favorable to the Company,' stated Stephen Guyer, CFO for Colorado Goldfields. 'We couldn't ask for a better location and accessibility. This will be especially important for future reprocessing of tailings that are anticipated to include silver, copper, indium and tellurium,' said Lee Rice, President and CEO of Colorado Goldfields.

Recent announcement of the use of dry stacking tailings has generated many shareholder and investor inquiries. In response to this high level of interest, the Company provides the following 'Back to the Stack,' commentary.

'Dry stacking of tailings was a fairly common practice some decades ago in the southwestern Colorado region, hence the phrase 'back to the stack,'' stated John Ferguson, Director of Operations for Colorado Goldfields. 'This was due to extreme water shortages in the area of the mills. But even more important was the discovery that these dry stacked tailings could be easily transported and reprocessed for other metals still in the ore,' stated Ferguson.

'In the late 1970s Rancher's Exploration transported dry stacked tailings owned by Vanadium Corporation of America from two of their Colorado mines, the Naturita and Monument Valley, to another site for reprocessing yielding uranium, vanadium, and other rare metals. Dry stacks became a kind of 'metals savings-bank' for the future. As demand for various metals increase, a Company could find themselves sitting on another form of 'gold mine,'' continued Ferguson.

Ferguson provides the following summary of why Colorado Goldfields' use of this technique has many advantages and adds value to the operation.

1. Water consumed in milling may be reduced 50-75% through the use of dry or paste stacking of tailings. This is extremely important since water resources are becoming scarce and regulation regarding water use more stringent.

2. Dry stacking offers far better control of the tailings in a harsh climate such as sub-alpine, desert, and high elevation areas like Silverton, Colorado. In the past there have been numerous failures of tailings impoundments due to harsh climatic conditions during both construction and operations.

3. Because there is no need for extensive dams to impound large quantities of water along with the tailings, the size of the disposal area can be reduced thereby reducing the footprint.

4. The risk of failure hazard is reduced. Because there is no impoundment of water -- only a contained pile of sand -- the potential for a spill of toxic or potential acid rock drainage into the water ways is eliminated. Even in the event of a large earthquake, which could conceivably cause the failure of a dam that would spill the contained water; a dry stacked pile would simply become a slump of sand.

5. When a dry stack of tailings is located on an impermeable membrane, there is almost no potential for minerals to leach into the ground water.

6. Final closure and reclamation is considerably easier and less expensive because capping and re-vegetation occurs as part of ongoing operations.

7. The reprocessing of dry stacked tailings at some time in the future is far easier than a conventional tailings pond. In other words, the dry stacks could become a metals savings-bank.

Colorado Goldfields has also been invited to attend the 2011 Elko Roundtable sponsored by Knight Piésold and Co., a premier international environmental engineering consulting firm. This year's topic is: High Density Tailings, Paste, and Filtered Tailings. Bryan Ulrich, Senior Vice President for Knight Piésold and Co, in his announcement echoed Colorado Goldfields when he said, 'High density, paste and filtered tailings are used in many places throughout the world for various purposes, including above ground tailings disposal and underground backfilling. The practice is largely in its infancy in the western US, but there are several mining companies that are presently considering applications. We have invited colleagues who have various levels of experience with this topic, and practitioners from industry who have been or will be involved with this work.'

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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.

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Investor Relations

Colorado Goldfields Inc.

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