EGU.L Regulatory News (EGU)

8 Feb 2006 07:01

European Goldfields Ltd08 February 2006 For Immediate Release 8 February 2006 European Goldfields Limited APPOINTMENT OF WILLIAMS DE BROE & RBC CAPITAL MARKETS AS BROKERS European Goldfields Limited (AIM: EGU / TSX: EGU) (the "Company") is pleased toannounce the appointment of Williams de Broe Plc as corporate broker andnominated advisor under the rules of the AIM Market of the London StockExchange, effective today. Williams de Broe is one of the City of London'soldest financial institutions with over 135 years' experience in stockbroking,advising a range of private, institutional and corporate clients. The Company is also pleased to announce that it has appointed RBC CapitalMarkets as joint broker with the aim of furthering the Company's exposure in theNorth American market. RBC Capital Markets is a global leader in the miningsector with operations in North America, Europe and Australia. Commenting on the appointments, David Reading, Chief Executive Officer ofEuropean Goldfields, said: "We look forward to working with Williams de Broe andRBC Capital Markets in continuing to build European Goldfields into asignificantly larger company. We believe this collaboration between us and theircommitment to the resources sector make them the ideal partners for us goingforward." Sale of Shares by Frank Timis The Company has been informed that on 18 January and 7 February 2006, Mr. FrankTimis sold a total of 12,115,684 common shares in the Company in the openmarket. The shares were placed by RBC Capital Markets and Evolution Securities,primarily to institutional investors in North America and the United Kingdom. Ofsuch shares, 7,500,000 were subject to a broker lock-in agreement until 31 March2006, which was waived in response to market demand for the shares. Followingsuch sales, to the knowledge of the Company, Frank Timis now exercises controlor direction over 7.8% of all outstanding common shares of the Company, whichremain subject to a lock-in until 31 March 2006. About European Goldfields European Goldfields Limited is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania and theBalkans. Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. HellasGold owns assets in Northern Greece which consist of three deposits within70-year mining concessions covering a total area of 317 km(2). The depositsinclude the polymetallic projects of Stratoni and Olympias which contain gold,lead, zinc and silver, and the copper-gold porphyry body referred to asSkouries. All three deposits have been well defined with over 200,000 metres ofdrilling and the completion of feasibility studies and later engineeringstudies. The total proven and probable reserves of these assets are 17.2 Moz on a goldequivalent basis (65% attributable = 11.2 Moz) from a measured and indicatedresource base of 21.8 Moz gold equivalent (65% attributable = 14.2 Moz). These assets represent some of the largest defined deposits in Europe. The threedeposits are located within a 10 km radius of each other, making thiseffectively a gold and base metals centre. Furthermore, both Stratoni andOlympias were previously in production and have extensive existing mining andplant infrastructure and a ship loading facility on the Aegean Sea. In September 2005, Hellas Gold resumed production at Stratoni following theaward by the Greek state of all necessary environmental and mining permits.Production of ore is expected to reach 170,000 tonnes by the end of the firstyear of production, steadily increasing to 400,000 tonnes per annum by yearfive. Hellas Gold is in the process of applying for similar permits for Olympias andSkouries. Hellas Gold's assets also include potential revenue generatingstockpiles and tailings located on the surface. Romania - European Goldfields holds five mineral properties located within the"Golden Quadrilateral" area of Romania, where it has recently completed anin-house pre-feasibility study underpinning the value of its 80%-owned Certejdeposit. The Certej deposit hosts measured and indicated resources of 31.4 Mtgrading 2.1 g/t gold and 11 g/t silver for 2.34 Moz of gold equivalent (80%attributable = 1.88 Moz). For additional information on the resource and reserve estimates quoted above,please refer to the Company's Resources & Reserves Declaration atwww.egoldfields.com/goldfields/resources.jsp. For further information please contact: European Goldfields:David Reading, Chief Executive OfficerDavid Grannell, Chief Financial OfficerOffice: +44 (0)20 7408 9534 e-mail: info@egoldfields.comMobile: +44 (0)7703 190 652 website: www.egoldfields.com Buchanan Communications:Bobby Morse / Ben Willey e-mail: bobbym@buchanan.uk.comOffice: +44 (0)20 7466 5000Mobile: +44 (0)7802 875 227 The Sherbourne GroupForbes West e-mail: forbes@sherbournegroup.caOffice: +1 416 203 2200 This information is provided by RNS The company news service from the London Stock Exchange