Colorado Goldfields Inc. in Contract Negotiations With Kinross Gold Corporation (NYSE: KGC) on Acquisition of the Historic Sunnyside Mine in Silverton

Wednesday, Dec 24, 2008

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Colorado Goldfields Inc. (OTCBB: CGFI) announced today that the Company has entered into contract negotiations with Kinross Gold Corporation for the acquisition of approximately 142 patented mining claims in proximity of Colorado Goldfields' operations in Silverton, Colorado.

The properties include the historic Sunnyside Mine, which is adjacent to the Gold King Mine controlled by Colorado Goldfields.

The Sunnyside Mine was discovered by George Howard and R.J. McNutt in the summer of 1873. It was mined continuously from 1880-1930 by several owners, including the Thompson Brothers, Judge Joe Terry, and the United States Smelting and Refining Company. It was San Juan County's largest producer and employer until 1991, and produced over one million ounces of gold. In the early 1980s, the mine employed over 300 people and produced 1,000 tons of ore per day.

""The Kinross acquisition program has the real potential of substantially increasing shareholder value for the Company by accelerating Colorado Goldfields' drilling program through access to the old Sunnyside Mine workings including underground shafts, tunnels, and portals, which leverages our current underground drilling abilities by at least three-fold. The Kinross properties add significant asset value to the Company's balance sheet and to the Company's overall mining operations,"" said Lee R. Rice, President and CEO of Colorado Goldfields.

In addition, Chief Financial Officer C. Stephen Guyer comments: ""The Board of Directors of the Company has endorsed our exploring several well-placed merger opportunities with larger mining companies that have market capitalizations significantly higher than our Company represents today. Merger opportunities are being considered as a platform for our expanded drilling operations and as an early means of valuing and potentially monetizing The Company's mining operations' performance to date.