GREEK EIS APPROVED BY MINISTRY OF ENVIRONMENT

8th July 2011 – European Goldfields Limited (AIM: EGU / TSX: EGU) (“European Goldfields” or the “Company”) is pleased to announce that:

Confirming the press release issued today by the Ministry of Environment Energy and Climate Change (“MOE”), Mr. Giorgos Papakonstantinou in his capacity as Minister of the MOE has today approved the Environmental Impact Study (“EIS”) submitted by the Company’s 95%‐owned subsidiary Hellas Gold SA for the development of the Company’s Greek assets (the “Project”).

The Project consists of:

Α. Continuation of operations at the Mavres Petres deposit of the Stratoni Mine;

Β. The next stages of the Olympias project, namely the mining and processing of ore and

metallurgical treatment of the concentrate;

C. The development of mining and processing at the Skouries project; and

D. The expansion of the port facilities at Stratoni in service of the above projects’ operations.

The press release issued by the MOE can be accessed on the Ministry’s website:

http://www.ypeka.gr/Default.aspx?tabid=367&locale=el‐GR&language=en‐US

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 new website at www.egoldfields.com