Corporate Update

Suite 200, Financial Plaza

204 Lambert Street

Whitehorse, Yukon

Canada Y1A 3T2

For Immediate Release

CORPORATE UPDATE

14 December 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European Goldfields" or the "Company") is pleased to provide a general corporate update.

Euromines - The Company is pleased to announce that Mark Rachovides, Executive Vice President has been elected to the Board of Euromines. The organisation is the recognised advocate of the European extractive industry and promotes the benefit and value of both the products and the industry to society. Mr Rachovides is also Chairman of the Euromines Gold Group.

Promotion - The Company also announces that Steve Sharpe has been promoted to Senior Vice President, Business Development.

Corporate Social Responsibility - European Goldfields has a strong commitment to Corporate Social Responsibility ("CSR"). The recent launch of the new CSR pages on the website have facilitated the communication of the Company's commitment to the responsible management of the social and environmental impact in the communities in which it operates. The Company is also working toward Global Reporting Initiative ("GRI") standard reporting.

ISO 18001 - Hellas Gold has made significant progress over the year in working toward the International Occupational Health and Safety management system standard, ISO 18001. Having already achieved the Environmental Management standard ISO 14001, obtaining ISO 18001 would represent a very positive endorsement of the Company's safety management system in Greece and of the strong safety culture that exists at European Goldfields.

Directors' RSU Awards - On 9 December 2010, the Company granted, as part of its regular annual bonus awards, Restricted Share Units ("RSUs") in accordance with the Company's Equity Participation Plan, as listed below. The RSUs will vest on 31 December 2011 subject to the satisfaction of certain criteria.

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 and the sale of gold concentrates from Olympias. 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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