GREEK EIS APPROVED BY MINISTRY OF ENVIRONMENT

WHITEHORSE, July 8, 2011 /CNW/ --
WHITEHORSE, July 8, 2011 /CNW/ - European Goldfields Limited (AIM: EGU / TSX: EGU) ('European Goldfields' or the 'Company') is pleased to announce that:

Confirming the press release issued today by the Ministry of Environment
Energy and Climate Change ('MOE'), Mr. Giorgos Papakonstantinou in his capacity as Minister of the MOE
has today approved the Environmental Impact Study ('EIS') submitted by the Company's 95%-owned subsidiary Hellas Gold SA for
the development of the Company's Greek assets (the 'Project').

The Project consists of:

‘.   Continuation of operations at the Mavres Petres deposit of the
     Stratoni Mine;

’.   The next stages of the Olympias project, namely the mining and
     processing of ore and metallurgical treatment of the concentrate;

C.   The development of mining and processing at the Skouries project;
     and

D.   The expansion of the port facilities at Stratoni in service of the
     above projects' operations.

The press release issued by the MOE can be accessed on the Ministry's
website:

http://www.ypeka.gr/Default.aspx?tabid=367&locale=el-GR&language=en-US

About European Goldfields

European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade
lead/zinc/silver mine in North-Eastern Greece. European Goldfields will
evolve into a mid-tier producer through responsible development of its
project pipeline of gold and base metal deposits at Skouries and
Olympias in Greece and Certej in Romania. The Company plans future
growth through development of its highly prospective exploration
portfolio in Greece, Romania and Turkey.

For further information please see the Company's new website at www.egoldfields.com

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