For Immediate Release 19 March 2009 EUROPEAN GOLDFIELDS LIMITED RESULTS FOR 2008 STRONG BALANCE SHEET, NO DEBT STRONG PRODUCTION PERFORMANCE CERTEJ COMPLETES FEASIBILITY STUDY- NEW MINING PERMIT AWARDED 19 March 2009 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the "Company") today reports its results for the financial year ended 31 December 2008. Financial highlights: - Sales of USD60 million reflecting lower metal prices - Operating profit of USD5.6 million - Working capital of USD193 million - Profit (after tax) of USD5.5 million - Capex of USD37 million underwrites future projects - Greek corporate tax rate reduced to 20% Operational highlights: - Stratoni: Mine production up 26% versus 2007. Focus on cost reduction and productivity efficiencies - Skouries: Continued progress on engineering - mill shells and other major components ready for shipment - Olympias: Continued sale of gold concentrates - submission of EIS for re-treatment of tailings - Certej: Definitive Feasibility Study completed, life of mine extended - new mining permit awarded - permitting process well advanced Corporate highlights: - European Goldfields added to S&P/TSX Composite Index - Chairman increases personal shareholding - Cameron Mingay and Martyn Konig appointed as Non-Executive Directors - Joint Venture in Turkey with Ariana Resources underway - Total project reserves now exceed 10 million ounces of Gold Commenting on the results, David Reading, Chief Executive Officer of European Goldfields, said: "We continue to build a successful European mining company. Despite the market downturn during 2008 we made significant progress during the year in project development in Greece and permitting in Romania. With the proven support of our partners and stakeholders, excellent infrastructure and a strong and growing reserve base, we are delivering robust projects through a realistic and phased development programme. Though we are benefiting from the falling costs of building our mines, we remain focused on preserving our substantial cash balances and continuing to develop our business into a mid-tier mining group. In summary the company is well positioned to overcome the current down turn and grow our business. This position is endorsed by our significant capital spend in 2008 and our strong balance sheet." Conference Call & Webcast - European Goldfields will host a conference call on Thursday 19 March 2009 at 10:00 a.m. ET / 2:00 pm (London, UK time) to update investors and analysts on its results. Participants may join the call by dialing the following numbers, approximately 10 minutes before its start. - From North America: (toll free) 1 866 793 4279 - From the UK, Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Sweden & Switzerland: +44 (0)20 8609 1435 or (toll free from the UK) 0808 109 1498 - Participant pass code: 887754# A live audio webcast will be available on: http://mediaserve.buchanan.uk.com/webcasts/room8audio/lrframes.htm A replay of the webcast will be available on: http://mediaserve.buchanan.uk.com/webcasts/eg190309/lrframes.htm Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1152P_1-2009-3-19.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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