For Immediate Release Acquisition of an Additional 30% Interest in Hellas Gold Commencement of Equity Offering NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES 1 June 2007 – European Goldfields Limited (TSX / AIM: EGU) (the “Company” or “European Goldfields”) is pleased to announce that it has agreed to acquire an additional 30% interest in Hellas Gold S.A. (“Hellas Gold”) which holds all the Company’s Greek mineral assets, increasing the Company’s total interest to 95%. The Company also announces that it has filed a preliminary short form prospectus for a marketed offering of common shares of the Company (the “Shares”), to raise approximately US$112 million in gross proceeds to fund development of the Company’s projects in Greece and Romania, and a secondary offering by a shareholder of up to 3 million existing shares on issue (approximately US$15 million). Acquisition of an Additional 30% Interest in Hellas Gold The Company has entered into an agreement with a wholly-owned subsidiary of Aktor S.A. (“Aktor”), a wholly-owned subsidiary of Elliniki Technodomiki TEB A.E. (ATHEX: ELTEX) (“El-Tech”), pursuant to which the Company has conditionally agreed to acquire an additional 30% interest in Hellas Gold (the “Acquisition”) in consideration for US$178 million, payable in common shares representing 19.9% of the issued and outstanding shares of the Company after the completion of the equity offering (described below) and the balance, if any, in cash. The Acquisition will increase the Company’s total interest in Hellas Gold to 95%. El-Tech is a large Greek conglomerate with a market capitalisation in excess of US$2 billion and investments in four fields: construction, concessions, energy and real estate. Aktor is Greece’s largest construction company. As part of the Acquisition, Aktor has agreed to re-invest into Hellas Gold 50% of the cash consideration it receives, if any, as funding towards maintaining its residual 5% shareholding interest in Hellas Gold. On the completion of the Acquisition, Aktor will also enter into a lock-up undertaking with the Company whereby it will agree not to sell, transfer, pledge or otherwise dispose of its Shares in the Company until the earlier of the fourth anniversary of the closing of the Acquisition and the date on which the Company’s Skouries gold-copper porphyry mining project commences production. Aktor does not currently hold any Shares of the Company and the only shares of the Company it will hold will be the common shares issued as consideration for the Acquisition. Closing of the Acquisition is subject to certain conditions, including but not limited to completion of the treasury offering of new shares. The Acquisition is expected to be completed within five days of the closing date of the equity offering. The Company does not propose to make significant changes to Hellas Gold’s operations following the Acquisition. The Company intends to appoint a representative of Aktor to its board of directors after the closing of the Acquisition. In the year ended December 31, 2006, Hellas Gold reported profits before tax of US$10 million. Pursuant to Rule 13 of the AIM Rules published by the London Stock Exchange, the Acquisition is considered to be a Related Party Transaction. The Company's directors consider, having consulted with its nominated adviser, Evolution Securities Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Commencement of US$127 Million Equity Offering The Company is also pleased to announce that it has filed a preliminary short form prospectus in all provinces except Quebec, for a public offering of common shares (the “Offering”). Aggregate gross proceeds from the treasury offering of new shares are anticipated to be approximately US$112,000,000. The Company intends to use the net proceeds of the treasury offering for the development of the Company’s mineral projects in Greece and Romania, and for general corporate purposes. The underwriters will have an option, exercisable for a period of 30 days from the date of closing, to purchase up to a further 15% in additional Shares over the treasury offering at a price equal to the offering price to cover over-allotments and for market stabilization purposes (the “Over-Allotment Option”). The Offering is being led by RBC Capital Markets as lead manager to a syndicate of underwriters including Evolution Securities Ltd, Raymond James Ltd, Dundee Securities Corporation and Orion Securities Inc. The Company intends to use the net proceeds of the treasury offering for the development of the Company’s mineral projects in Greece and Romania, and for general corporate purposes. As part of the Offering, Mr Dimitrios Koutras, a director of the Company, who currently owns of record 13,724,074 Shares representing approximately 12% of the existing issued and outstanding common shares, may offer and sell in a secondary offering up to 3 million shares on the same terms as the treasury offering. The Company will not be entitled to any of the proceeds of the secondary offering. Closing of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the Toronto Stock Exchange). The preliminary short form prospectus has been filed on SEDAR at www.sedar.com. Commenting on the Acquisition and the Offering, David Reading, Chief Executive Officer of European Goldfields, said: “The acquisition provides European Goldfields with the opportunity to increase its ownership of high quality projects in an accretive transaction which further aligns the interests of Aktor and European Goldfields shareholders.” “The offering provides the funding towards European Goldfields’ pipeline of projects in Greece and Romania and provides flexibility in future financing and development options to enhance value to shareholders. Together the acquisition and the offering represent a company transforming transaction, which should maximise the return to our existing and new shareholders.” The Shares have not been, nor will be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction. Any public offering of securities to be made in the United States would, if made, be made by means of a prospectus that could be obtained from the Company that would contain detailed information about the Company and management as well as financial statements. About European Goldfields European Goldfields is a resource company involved in the acquisition, exploration and development of mineral properties in Greece, Romania and South-East Europe. Greece – European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas Gold owns three major gold and base metal deposits in Northern Greece. The deposits are the polymetallic projects of Stratoni and Olympias which contain gold, zinc, lead and silver, and the Skouries copper/gold porphyry body. Hellas Gold commenced production at Stratoni in September 2005 and selling an existing stockpile of Olympias gold concentrates in July 2006. Hellas Gold is applying for permits to develop the Skouries and Olympias projects. Romania – European Goldfields owns 80% of the Certej gold/silver project in Romania. European Goldfields submitted in March 2007 a technical feasibility study to the Romanian government, in support of a permit application to develop the project. For further information please contact: European Goldfields: David Reading, Chief Executive Officer RBC Capital Markets Patrick Meier / Peter Barrett-Lennard Evolution Securities Frank Moxon / Simon Edwards Buchanan Communications: Bobby Morse / Ben Willey Renmark Financial Communication: Neil G. Murray-Lyon Forward-looking statements Certain statements and information contained in this document, 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 information under provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, "expect", "will", "intend", "estimate", “forecast”, “planned” and similar expressions are intended to identify forward-looking statements or information. Forward-looking statements include, but are not limited to, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs and timing of development of new deposits, permitting time lines and expectations regarding metal recovery rates. 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 forwardlooking 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 price of gold, base metals or certain other commodities (such as fuel and electricity) and currencies; uncertainty of mineral reserves, resources, grades and recovery estimates; uncertainty of future production, capital expenditures and other costs; currency fluctuations; financing and additional capital requirements; 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; the risks normally involved in the e-mail: firstname.lastname@example.org Office: +44 (0)20 7408 9534 Office: +44 (0)20 7653 4093 Office: +44 (0)20 7071 4300 e-mail: email@example.com Office: +44 (0)20 7466 5000 e-mail: firstname.lastname@example.org Office: +1 514 939 3989 exploration, development and mining business; and risks associated with internal control over financial reporting. For a more detailed discussion of such risks and material factors or assumptions underlying these forward-looking statements, see the Company’s Annual Information Form for the year ended 31 December 2006, filed on SEDAR at www.sedar.com. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.