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Colorado Goldfields Assesses Alternative Water Treatment Technologies with U.S. Environmental Protection Agency

August 28, 2008 07:58 AM Eastern Time

LAKEWOOD, Colo.--(EON:Enhanced Online News)--Colorado Goldfields Inc. (OTCBB:CGFI) initiated two projects to assess alternative water treatment technologies in the Cement Creek watershed of San Juan County, Colorado, one of which is in conjunction with the U.S. Environmental Protection Agency (EPA) and the U.S. Bureau of Land Management. These projects and our pursuit of green energy sources for our sites demonstrate our environmental stewardship and intent to decrease future production costs.

One project tests the Rotating Cylinder Treatment System™ (RCTS) at a proposed district-scale water treatment facility near Gladstone, Colorado. The U.S. Government is providing the bulk of the project’s funding. Testing is being performed by Ionic Water Technologies, Inc. of Nevada. CGFI is providing test work locations, equipment, water containment vessels, and personnel.

Separately, CGFI will be testing an Ionic State Modification (ISM) system, developed by Blue Sky Water Treatment Technologies, Inc., to potentially treat the water discharge at the Company’s Gold King site.

CGFI’s CEO Todd Hennis states, “If the Blue Sky ISM system works for the Gold King 7 level discharge, it will be a cost-effective solution for us and potentially addresses numerous discharges by other parties in the Cement Creek watershed. The Blue Sky ISM system should generate significantly less metal sludge than conventional treatment systems, or even the RCTS technology, and can be operated with minimal personnel. The Blue Sky ISM technology also does not require large water treatment settling ponds, thereby reducing the environmental footprint on the land and reducing our production costs.”

Ms. Cokes, CGFI Manager of Environmental Affairs, added, “We are committed to good stewardship of the environment. We have great respect for the beauty of southwestern Colorado and the Silverton area, and we are dedicated to preserving it. The test work using both the RCTS™ technology and the ISM reactor technology shows our commitment to environmental excellence and our dedication to achieving a solution to the water quality issues in the Cement Creek watershed.”

About Colorado Goldfields, Inc.

Colorado Goldfields Inc. (OTCBB:CGFI), http://www.cologold.com, is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discovery. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

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This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect event or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC’s mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.