European Goldfields: Sale of Olympias Concentrates

European Goldfields Limited (TSX:EGU)(AIM:EGU) is pleased to announce that its 65%-owned subsidiary Hellas Gold S.A. has entered into an off-take agreement with Shandong MIC BioGold Ltd (a subsidiary of Michelago Limited of Australia (ASX: MIC)) for the initial sale of at least 18,000 wet metric tonnes (wmt) of gold bearing pyrite concentrates currently located on the surface at Olympias in Greece. The agreement also includes the possible sale of an additional 100,000 dry metric tonnes of concentrates over a three-year period from April 2007.

Olympias benefits from an existing stockpile of gold concentrates representing a reserve of about 258,000 tonnes grading 23.3 g/t gold, in addition to substantial underground reserves of gold, lead, zinc and silver.

The monthly shipments of the initial 18,000 wmt of concentrates are expected to commence in May 2006 and end in April 2007, and may be suspended if certain profitability thresholds are not met. Concentrates are to be treated at Shandong MIC's Bacox process plant in China.

The price payable for the concentrates will vary with the prevailing gold price. The agreement produces an attractive return for Hellas Gold at a gold price of US$500/oz.

European Goldfields and Hellas Gold are currently pursuing other similar opportunities for the sale of the remaining tonnage of concentrates in the Olympias stockpile.

Commenting on the agreement, David Reading, Chief Executive Officer of European Goldfields, said: "This initial contract with Shandong MIC demonstrates our ability to monetise the Olympias stockpile. It is a first step towards selling the whole stockpile and we expect to conclude similar arrangements in the near future to achieve this objective. This represents one of many opportunities to generate early revenue to assist with the financing of the development of our major gold and base metals projects of Skouries and Olympias."

Holding in Company

As far as the Company is aware, on 21 April 2006, Mr. Frank Timis sold a total of 8,696,576 common shares in the Company in the open market at a price of C$4.40 per share. The shares were placed by RBC Capital Markets and Williams de Broe Plc primarily to institutional investors in North America and the United Kingdom. Following such sale, to the knowledge of the Company, Frank Timis does not exercise control or direction over any of the outstanding common shares of the Company.

About European Goldfields

European Goldfields Limited (the "Company") is a resource company involved in the acquisition, exploration and development of mineral properties in Greece, Romania and the Balkans.

Greece - The Company holds a 65% interest in Hellas Gold S.A. ("Hellas Gold"). Hellas Gold owns assets in northern Greece which consist of three deposits within 70-year mining concessions covering a total area of 317 km2. The deposits include the polymetallic projects of Stratoni and Olympias which contain gold, lead, zinc and silver, and the copper/gold porphyry body referred to as Skouries. All three deposits have been well defined with over 200,000 metres of drilling and the completion of feasibility studies and later engineering studies.

The total proven and probable reserves of these assets are 7.6 Moz gold, 65.8 Moz silver, 0.7 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured and indicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0 Mt copper, 0.8 Mt lead and 1.1 Mt zinc (65% attributable).

These assets represent some of the largest defined deposits in Europe. The three deposits are located within a 10 km radius of each other, making this effectively a gold and base metals centre. Furthermore, both Stratoni and Olympias were previously in production and have extensive existing mining and plant infrastructure and a ship-loading facility on the Aegean Sea.

Hellas Gold's assets also include potential revenue-generating stockpiles of gold concentrates.

In September 2005, Hellas Gold resumed production at Stratoni following the award by the Greek State of all necessary environmental and mining permits. Hellas Gold is in the process of applying for similar permits for Olympias and Skouries, having met its first milestone by submitting business plans to the Greek government in January 2006.

Romania - The Company holds four mineral properties located within the "Golden Quadrilateral" area of Romania. The Company recently announced the conversion of resources into Canadian NI 43-101 compliant reserves for its 80%-owned Certej project, underpinning the value of the project. The Certej deposit hosts probable reserves of 27.7 Mt grading 2.0 g/t gold and 11.6 g/t silver for 1.76 Moz gold and 10.35 Moz silver (80% attributable). The Company is now completing a final feasibility study for submission to the Romanian government by the end of 2006, in support of an application for environmental and mining permits to develop the Certej project.

Resources & Reserves Parameters

For additional information on the resource and reserve estimates quoted in this news release, please refer to the Company's Resources & Reserves Declaration at www.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager, Exploration of the Company, was the Qualified Person under Canadian National Instrument 43-101 responsible for reviewing the disclosure of resource and reserve estimates quoted in this news release.

Forward-looking statements

Certain information included in this news release, including any information as to the Company's future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "expect", "will", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Company to be materially different from its estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, base metals or certain other commodities (such as fuel and electricity) and currencies; the successful and timely permitting of the Company's Skouries, Olympias and Certej projects; legislative, political, social or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; the speculative nature of gold and base metals exploration and development, including the risks of diminishing quantities or grades of reserves; and the risks normally involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's Annual Information Form for the year ended 31 December 2005, filed on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

---

Distributed by Market Wire

   _   _