Company Update

 Suite 200, Financial Plaza

204 Lambert Street

Whitehorse, Yukon

Canada Y1A 3T2

For Immediate Release

COMPANY UPDATE

24 February 2011 - European Goldfields Limited (AIM: EGU / TSX: EGU) (the "Company") notes today's report on Thomson Reuters referring to the permitting process in Greece.

European Goldfields confirms that it has not been officially notified by the Greek authorities that there is any issue regarding the permitting process or the timing of such.

The Company notes the clarification from the Greek Ministry for Environment, Energy and Climate Change ("MOE") that has since been issued.

The Minister, Ms Birbili has been further quoted in a news briefing later this afternoon as stating that "the Environmental Study is under evaluation and the Ministry will issue the terms [of the permit] once that is complete".

The Company confirms that it has not been asked to provide any additional information by the MOE regarding groundwater or groundwater pollution. The Company has previously received confirmation from a Special Technical Committee of the MOE that the final Environmental Impact Statement ("EIS") conformed with all technical requirements under Greek and EU environmental legislation.

In addition, the Company wishes to highlight that after full public consultation, on 10 December 2010 the local prefectural council unanimously supported the EIS and passed the same to the MOE for final approval.

European Goldfields has full confidence in the integrity of the permitting process in Greece and will keep the market informed as necessary.

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 contact: