Statement regarding share price movement

 Suite 200, Financial Plaza

204 Lambert Street

Whitehorse, Yukon

Canada Y1A 3T2

For Immediate Release

STATEMENT BY EUROPEAN GOLDFIELDS LIMITED REGARDING SHARE PRICE MOVEMENT

6 December 2011 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the "Company") acknowledges the Company's recent trading activity and announces that the Company has received preliminary and indicative approaches from third parties regarding potential corporate transactions. No formal offers have been received and there can be no assurances that any transaction will result from any of these approaches.

The Company does not intend commenting further on these or other proposals unless a definitive agreement is reached with any third party or unless otherwise required by law.

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 is expected to 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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