Colorado Goldfields Inc. Completes Geotechnical Drilling; Engages Expert With Over $500 Million in Revenue From Completed Projects in 2010, for Dry Stack Tailings Detail Design Gold Stocks

LAKEWOOD, CO -- (Marketwire) -- 08/03/11 -- Colorado Goldfields Inc. (OTCQB: CGFIA) (PINKSHEETS: CGFIA) announces today that is has completed over 600 feet of geotechnical drilling at the planned 35 acre dry stack tailings repository. Detailed engineering data from material testing and drilling logs of the holes will provide information necessary to ensure the design of a stable facility for permanent storage of mill tailings from the Pride of the West Mill.

The project was conducted by Trautner Geotech LLC. of Durango, Colorado under the supervision of David Trautner, a Registered Professional Engineer in Colorado. Mr. Trautner is an engineering geologist/geotechnical engineer who has been involved in the engineering and construction disciplines in Durango since 1983. His specialty is geologic hazard assessments on sites where development is planned, applying the potential influence of geologic processes and hazards as outlined in Colorado House Bill 1041 among other regulations.

Auger test borings will include a Standard Penetration Test ('SPT') every 5 feet. SPT testing involves driving a standard thick-walled sample tube into the ground at the bottom of a borehole by blows from a slide hammer with standard weight and falling distance. The number of blows needed for the tube to penetrate each 6 inch interval of an 18 inch span is recorded. The sum of the number of blows required for the second and third 6 inches of penetration is reported as 'SPT blow count value,' commonly termed 'standard penetration resistance' or the 'N-value.' This is how sub-surface stability is measured to ensure safe containment of tailings. Soil samples will be tested in a laboratory to gather the additional data for the design of the dry stack repository.

The work is being conducted under a permit approved by the Colorado Division of Reclamation, Mining and Safety. All of the drill holes will be closed and sealed in accordance with State of Colorado procedures that will protect ground water resources.

Now that the geotechnical drilling is complete, the Company has engaged Allan J. Breitenbach, Senior Geotechnical Engineer and Engineering Geologist, of Ausenco/Vector to construct the detail design of the dry stack tailings repository. Ausenco/Vector is a world leader in geotechnical geomechanical, and geological engineering. Analysis of soil conditions and behaviors are fundamental to any facility performance, and is the main focus of Colorado Goldfields' dry stack repository. Geotechnical characterization, analysis and design are the core of Ausenco Vector's capabilities. Decades of expertise extends to the following areas: Site characterization, Facility siting studies, Physical test work programs, Seismic risk analysis, Earthquake engineering, Engineering and design, Ground support -- open pit and underground, Tunnel and deep, and excavation design. Ausenco Vector's fully accredited north American laboratory is available 24/7 to ensure the fastest possible project completion.

Specifically, project manager Mr. Breitenbach has over 37 years of project experience in site investigations, site selection, design, construction and reclamation of engineered structures in the field of geotechnical engineering and engineering geology. He has been involved in the engineering design and construction of more than 100 earth/rock water storage and tailings dam projects, 120 heap leach and evaporation pond projects, numerous gypsum stacks/waste rock piles, and foundations for power plants, industrial buildings, pipelines and bridges in North, Central and South America, as well as in Eastern Europe, Asia and Africa. Mr. Breitenbach is a professional engineer registered in 9 states in the USA and has published more than 50 technical papers on rock fill and heap leach design, construction and prevention of failures.

This design will be the key component of Colorado Goldfields' permit amendment to be submitted to the Colorado Division of Reclamation, Mining and Safety.

In addition to completing the geotechnical drilling on the dry stack repository, the Company has begun work to replace existing underground water lines at the mill site proper. The underground lines supply water from the Water Storage Tank to: 1) Office Building, 2) Mill Building, 3) Laboratory Building, and 4) Residential House.

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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