Results For Q2 2006 - Stratoni Production Continues To Ramp-Up - Significant Progress On Other Three Development-Stage Projects August 11, 2006 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the "Company") today reports its results for the second quarter to 30 June 2006. Highlights during 2006 are: Financial:
- Sales of US$17.4 million and gross profit of US$8.6 million in H1 2006
- Profit of US$1.3 million (before tax) for H1 2006, compared with a loss of US$5.4 million in H1 2005
- Operating cash flow of US$4.5 million for H1 2006, increasing by US$8.4 million vs. H1 2005
- Working capital of US$36.5 million at 30 June 2006; funded to permitting of new projects and beyond
- Working capital up by US$2.7 million in H1 2006, despite expenditure on three development projects
- Stratoni production continues to ramp-up; 51% increase in ore mined in Q2 over Q1 2006; over halfway to achieving full year production target
- Greek government forms a technical committee with Hellas Gold to facilitate the permitting process for the Skouries and Olympias projects
- Skouries reserves increased by 13%
- Final feasibility studies on track for Skouries and Olympias
- Further off-take agreement signed for the sale of Olympias stockpile of gold concentrates
- Two viable development options identified for the Certej project
- Reserves announced, confirming Certej can produce a robust return at $425/oz gold and $7/oz silver
- Substantial increase in gold recoveries received for on-site production of gold dor'e option
- Clear path identified for Certej permitting and development
