European Goldfields Limited - Company Update

WHITEHORSE, YT, July 7, 2011 /CNW/ --
WHITEHORSE, YT, July 7, 2011 /CNW/ - European Goldfields Limited (AIM: EGU / TSX: EGU) (the 'Company') has noted the recent movement in its share price.

The Company would like to confirm that over recent days it has been in
active and close dialogue with the Ministry of Environment, Energy and
Climate Change ('MOE'), regarding the permitting of its Greek projects.
Based upon those discussions, the Company is highly confident of a
positive outcome. Remarks reported in the press today, following a
press conference held by the MOE, further underscore that level of
confidence.

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 website at www.egoldfields.com

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