European Goldfields Limited -- Stratoni Mine Production Up 26% in 2008

 | Source: European Goldfields Ltd European Goldfields Ltd

STRATONI, GREECE--(Marketwire - January 19, 2009) - European Goldfields Limited (TSX: EGU) (AIM: EGU) is pleased to announce that Stratoni mine production of 271,660 wet metric tonnes for 2008 showed an increase of 26% compared to 2007, as new mine infrastructure was completed and operating efficiencies were achieved. During the same period, a total of 263,314 dry metric tonnes of ore was processed through the Stratoni mill.

European Goldfields' subsidiary Hellas Gold S.A. completed 10 shipments of concentrates from its Stratoni zinc-lead-silver plant in Northern Greece in Q4 2008 (Q4 2007 - 8), and 30 shipments for the whole of 2008 (2007 - 26).

Detailed production and sales from Stratoni were as follows: 

                  Stratoni Production and Sales

                           Q4 2008    Q4 2007  12 Months  12 Months
                                                 2008        2007
Production
Ore mined (wet tonnes)      70,468    50,643    271,660    214,875
Ore processed (dry tonnes)  73,320    53,813    263,314    211,749

Zinc concentrate            12,106     9,082     46,123     38,152
  - Containing: Zinc metal
    (tonnes)                 5,914     4,425     22,694     15,891
Lead concentrate             6,750     6,012     22,759     23,123
  - Containing: Lead metal
    (tonnes)                 4,434     4,021     15,014     14,963
Silver (oz)                336,336   316,837  1,140,210  1,172,234

Sales
Zinc concentrate (tonnes)   11,210    10,191     44,838     38,152
  - Containing payable:
    Zinc (tonnes)*           4,591     4,209     18,496     15,890
Lead concentrate (tonnes)    7,556     8,004     22,321     23,123
  - Containing payable:
    Lead (tonnes)*           4,775     5,082     14,086     14,963
Silver (oz)*               363,205   399,272  1,077,550  1,172,233

* Net of smelter payable deductions,
  before deduction of smelting and refining charges

Ore production rates from underground have steadily increased from an average of 885 tonnes per day in 2007 to 1,100 tonnes per day in 2008, and the mine now operates effectively at over 1,200 tonnes per day.

In the current metal price and general economic environment, Hellas Gold will postpone any further ramp up in production levels until an improvement in metal prices is sustained. Therefore, Stratoni mine production is expected to remain at current levels, resulting in mine production of approximately 300,000 wet metric tonnes for 2009. This approach minimises the overall cost base at the mine and focuses on the achievement of operating efficiencies. The group also benefits from its lead hedge programme which in 2009 has put options over 7,200 tonnes of lead at a price of $2,500 per tonne.

To view the full announcement paste the link below into your web browser.

http://www.egoldfields.com/goldfields/

Contact Information: For further information please contact: European Goldfields: David Reading Chief Executive Officer e-mail: Tel: +44 (0)20 7408 9534

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