Colorado Goldfields Inc. Acquires Utah Payday and Rage Uranium Mines; 63 Unpatented Uranium Claims With an Estimated Value Equal to $14,000,000 Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 06/29/11 -- Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announces that it has purchased the Payday and Rage Mines. The claim group consists of 63 (55 Payday and 8 Rage) claims, located in Township 32 South, Range 24 East, Sections 25, 26, 35, in San Juan County, Northeast of Monticello, Utah.

In 2006 a preliminary geology report was constructed by Clive Bailey, a Registered Professional Geologist and Arizona Registered Sanitarian. 'The property has unpatented mining claims covering an area of almost 2 square miles. The claim group covers an area where the favorable upper rims of the salt wash member of the Morrison Formation (Jurassic in Age) exist almost intact,' stated Bailey.

Bailey's report went on to say:

'While on the Payday claims I spent time looking at the rim thickness, alteration, and viewed Uranium and Vanadium mineralization in several adits. Seven samples were taken to establish the grade and uranium to vanadium ratio for economic purposes, including two government drill holes (1950s), two vent holes, and a series of drill holes above the exposed rims with one hole on the claim group. The claim area covers ground where the favorable upper Saltwash member is intact. Two areas of super favorability cross the claim group.

'As a Professional Geologist with five years experience in Uranium (33 years overall), I conclude the Payday claims cover an area of good potential to develop a new uranium vanadium deposit within the virgin claim area.'

Based upon the preliminary geological report and information from the Atomic Energy Commission, the seller of the properties extrapolated a resource estimate of 45,000 tons of uranium bearing ore. Uranium averages .27% per ton, which is 5.4 pounds per ton, yielding 243,000 pounds. On May 30, 2011, the spot market price for Uranium was $57.50 per pound. Therefore, total estimated Uranium value would be $13,972,500.

Colorado Goldfields will be constructing an N1431-01 Report to confirm and verify the value of these assets.

'Market forces continue to tell us that diversifying into other metals, both precious and exotic, will greatly enhance the Company's ability to leverage both its physical facilities and management expertise,' stated C. Stephen Guyer, CFO for Colorado Goldfields.

Colorado Goldfields acquired the properties in all stock transaction consisting of 125,000,000 shares of 1-year restricted Class A Common Stock and 125,000,000 shares of 2-year restricted Class A Common Stock.

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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