European Goldfields Completes $153M Equity Offering

European Goldfields Limited announced on June 26, 2007 that it had completed an offering of 27 million common shares consisting of a treasury offering of 24 million shares and a secondary offering of three million shares on the same terms as the treasury offering. The offering was priced at $5 per common share for gross proceeds of approximately $120 million to European Goldfields and $15 million to the selling shareholder. European Goldfields will not be entitled to any of the proceeds of the secondary offering. On June 29, 2007, the underwriters exercised an over-allotment option to purchase an additional 3.6 million common shares, generating gross proceeds to European Goldfields of $18 million.

The offering was made through a syndicate of underwriters led by RBC Capital Markets and Evolution Securities Limited as co-lead managers and including Dundee Securities Corporation, Orion Securities Inc. and Raymond James Ltd.

European Goldfields intends to use the net proceeds of the treasury offering and of the sale of the over-allotment shares for the development of its projects in Greece and Romania, and for general corporate purposes.

The new treasury shares commenced trading on the Toronto Stock Exchange on June 26, 2007 and on the AIM Market of the London Stock Exchange the following day. The over-allotment shares commenced trading on the TSE on June 29, 2007 and on the AIM Market on July 3, 2007.

European Goldfields was advised in this transaction by Al Gourley, Mark Camilleri, Bozidar Crnatovic and Daye Kaba of Fasken Martineau DuMoulin LLP.

The underwriters were represented by Derek Linfield, Tanya Padberg and Sarah Rancier of Stikeman Elliott LLP.