DIRECTORS DEALINGS

For Immediate Release 26 August 2010

European Goldfields Limited

DIRECTORS DEALINGS

26 August 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European Goldfields" or the "Company") announces that Mark Rachovides, Director and Executive Vice President of the Company, has exchanged 166,666 options for 59,180 common shares in the Company in accordance with the rules of the Company's Share Incentive Plan. The shares were subsequently sold on 26 August 2010 at an average price of 552.22p.

Following these transactions, Mr. Mark Rachovides' shareholding remains unchanged at 138,898 Common Shares of the Company or 0.08% of the Company's current issued share capital.

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 

For further information please contact:

European Goldfields Liberum Capital Limited

Steve Sharpe, VP Business Development Simon Atkinson

e-mail: [email protected] Tom Fyson

Tel: +44 (0)20 7408 9730 Tel: +44 (0)20 3100 2000

Buchanan Communications Evolution Securities Limited

Bobby Morse / Katharine Sutton Rob Collins

e-mail: [email protected] Tim Redfern

Tel: +44 (0)20 7466 5000 Tel: +44 (0)20 7071 4300