Colorado Goldfields Inc. Acquires Silver Wing Mine (Part 2); Builds on $200 Million Resource of Gold, Silver, Copper, Lead, and Zinc; Perfect Fit for Pride of the West Mill Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 05/19/11 -- Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announced yesterday that it had acquired the Silver Wing Mine in San Juan County, Colorado. This acquisition marks a significant expansion into other metals, both 'precious' and 'base,' and provides Colorado Goldfields a greatly enhanced ability to capitalize on a wider number of market drivers for price -- both investor economics and manufacturing.

The Silver Wing's poly-metallic ore contains 5 different recoverable metal values consisting of gold, silver, lead, copper and zinc. Colorado Goldfields will develop a mining and milling operation and produce approximately 14,500 tons annually of gold, silver, copper, lead and zinc concentrates. 'The total estimated resource of the Silver Wing Mine could exceed $200 million with approximately 80% of the resource value composed of silver and copper minerals,' stated Lee Rice, President & CEO for Colorado Goldfields.

'Since most of the ore in the district is poly-metallic, the Company's Pride of the West Mill was originally designed to specifically process this type of ore. The acquisition is a perfect fit for the processing capabilities of Colorado Goldfields,' stated John Ferguson, Director of Operations.

To explain the new depth of revenue sources, Lee R. Rice, President and CEO of Colorado Goldfields, provides the following commentary regarding both the precious and base metals contained in the Silver Wing Mine.

Prices for all of the metals that will be produced from the Silver Wing Mine are determined by global precious metal and base metal commodity markets. As we have all observed, current prices are favorable and the long term outlook is positive based upon supply and demand fundamentals. In addition to the normal demands from the developed nations in North America and Europe, the long term outlook for sustained growth in Asian economies and as well other parts of the world is expected to continue to put upward pressure on base metal prices.

The precious metals to be produced from the Silver Wing Mine include gold and silver. While gold is critical for certain industrial and high technology uses and has value in the creation of jewelry, the price of gold is primarily based on 'perception factors' including the perception of safe haven value in response to political uncertainties in many areas of the world and as a hedge against inflation of currencies.

Historically, silver prices have been driven more by manufacturing demand than macro-economic perceptions. Silver has many specialized industrial (especially photography) and high technology uses. Over the past 20 years silver has been priced primarily as a base metal; following industrial supply and demand factors. Because of more recent socio-economic and political developments, the price of silver is now partially driven by other factors including the perception of 'safe haven' value; including a hedge against deflation of currencies.

The base metals (lead, copper and zinc) provide critical raw material for the production of industrial and consumer products on a world-wide basis. The usage for lead, copper and zinc is a direct function of the overall world industrial production needs and consumer demand for touchable products. Prices for these metals are primarily set in the based on actual industrial factors of supply and demand.

'The Company now has a strong connection to both brick-and-mortar manufacturing and global macro-economic forces. This is huge advantage because it provides us with a revenue source that is continuous and stable,' stated C. Stephen Guyer, CFO of Colorado Goldfields.

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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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Contact:
Investor Relations

Colorado Goldfields Inc.

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