gr

my -hotel. IDeaS Distribution Partners
offer a regional connection for clients who prefer an additional layer
of service paired with expertise in local customs and dialects.A. The deposits include the
polymetallic projects of Stratoni and Olympias which contain gold,
lead, zinc and silver, and the copper-gold porphyry body referred to
as Skouries.8 Moz gold
equivalent (65% attributable equals 14. Consequently, all of the
forward-looking statements made in this news release are qualified by
these cautionary statements, and there can be no assurance that the
results or developments anticipated by the Company will be realised
or, even if substantially realised, that they will have the expected
consequences to or effects on the Company and its subsidiaries or
their businesses or operations.A. and a 100% interest in European Goldfields (Romania) SRL,
which are in the process of exploring their mineral properties in
Romania and have not yet determined whether those properties contain
economic reserves.47 million mainly due to the weakening of
the Canadian dollar against the Euro as at 31 March 2004 compared to
31 December 2003.

dialect veria

Of note was the
implementation of CRS in Athens 2004 Olympics (46. (IDeaS) is the leading
provider of hospitality focused pricing and revenue optimization
solutions. The result is a win/win for the client and
the distributor.

- We have also initiated a focused exploration programme to look
for new discoveries in Greece.3 Moz of gold equivalent.

MANAGEMENT'S DISCUSSION + ANALYSIS

FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2005

The following discussion and analysis, prepared as at 13 May
2005, is intended to assist in the understanding and assessment of
the trends and significant changes in the results of operations and
financial conditions of European Goldfields Limited (the "Company").sedar.A ("Hellas Gold"). Such decrease reflects the fact that no share options or
milestone shares were granted in Q1 2005 compared to significant
grants to newly hired employees in Q1 2004. The Company will also continue to look for new
discoveries through focused exploration programmes.
At Cainel, underground channel sampling continues to define the
bigger mineralised target covering an area of 200 x 1,000 metres.

Aromanian is a dialect of Romanian spoken by some 150,000 people throughout the Balkan Peninsula in Albania, Bulgaria, Greece, FYR Macedonia and Romania.

aromanian echoes

gr. In 2004, my-hotel. Because the product is
technically maintained in IDeaS' fully hosted environment, the
technical effort of the partner is shifted from a focus on system
maintenance to bringing regionalized expertise and corresponding
services to the end client.

News Editors

VANCOUVER, British Columbia----European Goldfields Limited (TSX:EGU)(AIM:EGU) today reported
its results for the first quarter to 31 March 2005.

- By contract, the Greek State is committed to review the
business plans within two months of submission, and issue all
necessary environmental, mining and development permits within 10
months .

- We have continued work on an in-house pre-feasibility study for
Certej, which we expect to complete in Q2 2005.1 g/t gold and 11 g/t silver for 2.88 Moz).
Historical results may not indicate future performance.

The Company's results of operations for the eight most recently
completed quarters are summarised in the following table:

-------------------------------------------- -------------------------
(in thousands
of US
dollars, 2005 2004 2004 2004 2004 2003 2003 2003
except per Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
share amounts) $ $ $ $ $ $ $ $
--------------------------------- ------------------------------------
Statement of
loss and
deficit
Interest
Income 326 279 143 60 18 28 16 69
Expenses 3,831 9,225 2,854 2,848 5,042 1,715 293 352
Loss 2,652 8,134 2,190 3,580 5,279 1,687 277 283
Loss per
share (cents) 0.17 0. The acquisition was accounted for as a purchase
and the results of operations of Hellas Gold were included in the
consolidated statements of loss and deficit from 30 November 2004,
the effective date of the acquisition.

- The Company recorded a non-cash stock-based compensation
expense of $0.13 million in Q1 2005, compared to $3.33 million in
Q1 2005 from $0.81 million), partly offset by the payment of the cash portion of
the acquisition price for an additional 35% interest in Hellas Gold
($37.

The following table sets forth the Company's contractual
obligations including payments due for each of the next five years
and thereafter:

Payments due by period
(in thousands of
US dollars)
---------------------------------------------------------------------
Contractual Less than After
obligations Total 1 year 1-3 years 4-5 years 5 years

---------------------------------------------------------------------
Operating lease
(London office) 1,037 104 373 373 187
Exploration
licence
spending
commitments
(Voia, Romania) 1,500 - 1,500 - -
---------------------------------------------------------------------
Total
contractual
obligations 2,537 104 1,873 373 187
----------------------- ----------------------------------------------

For the coming year, the Company believes it has adequate funds
available to meet its corporate and administrative obligations
(estimated at $2 .

The Company also intends to continue growing its portfolio by new
exploration discoveries and the pursuit of accretive, value enhancing
acquisitions in Europe and the Balkans.

farsarotul veria

gr.000 people ) and the
Olympic Villages PMS solution (25. For more information visit
www.43 million as at 31 March 2004.

- We were awarded a new exploration licence area, referred to as
Cainel, which covers an area of 31.

Greece - As at 31 December 2004, the Company held a 65% interest
(on a fully-diluted basis) in Hellas Gold S.01
Balance sheet
Working
capital 57,285 63,480 29,045 31,117 14,413 5,058 5,433 6,709
Total
assets 300,689 304,758 86,879 83,517 67,875 45,943 29,929 29,785
Non current
liabilities 71,179 71,320 - - - - - -
Statement of
cash flows
Deferred
exploration
and
development
costs -
Romania 860 2,462 1,171 943 1,394 1,097 1,088 1,134
Plant and
equipment -
Greece 1,582 - - - - - - -
--------------------- ------------------------------------------------

The breakdown of deferred exploration and development costs per
mineral property for the three-month periods ended 31 March 2005 and
2004 is as follows:

Three-month periods ended 31 March

----------------------------------
2005 2004
(in thousands of US dollars) $ (%) $ (%)
-- ------------------------------------------------------------------
Romanian mineral properties
Certej 685 (80%) 1,171 (84%)
Caniel 102 (12%) - (- %)
Zlatna - (- %) 139 (10%)
Voia 17 (2%) 28 (2%)
Baita-Craciunesti 40 (5%) 42 (3%)
Bolcana 16 (1 %) 14 (1%)
--------------------------------------------------------------------
860 (100%) 1,394 (100%)
---------------------------- ----------------------------------------
Greek mineral properties
Stratoni - (- %) - (- %)
Skouries - (- %) - (- %)
Olympias - (- %) - (- %)
--------- -----------------------------------------------------------
- (- %) - (- %)
---------------------------------------------------------------- ----
Total 860 (100%) 1,394 (100%)
------------------- -------------------------------------------------

The Company incurred a loss of $2. In November 2004, the Company completed the acquisition
of shares in Hellas Gold, increasing its total interest from 37.02 million in Q1 2004, primarily as a result of the
Company holding significantly higher cash balances in Q1 2005
following completion of private placements during 2004.75 million), the
exercise of warrants and options ($3.

vlachs olympos

"IDeaS ASP solution is particularly
adaptable for distribution partners who would like to offer IDeaS
Revenue Optimization within their portfolio of products along with
ancillary development and training services.

Implement PMS add-on solutions such as revenue management,
CRM, web booking engines, headquarter reporting etc. This symbol may not appear properly
in some systems.02 per
share), compared to US$5.

Greece:

- Our 65%-owned subsidiary, Hellas Gold S. The pre-feasibility
study is focused on generating a higher grade metallurgical
concentrate, optimising the pit and defining appropriate mining,
plant and tailings infrastructure .

- In February 2004, the Company acquired an initial 37.25 million as at 31 December 2004 and
$13.
Aggressive drilling campaigns will be effected during the second half
of 2005 to test the Company's geological model and the potential for
a major mineralised system.

European Goldfields Limited (TSX:EGU) (AIM:EGU)

balkan farsarotul

gr is based in Athens, Greece. Subject to
being awarded the ensuing mining permit, we are now ready to commence
production.

The total proven and probable reserves of these assets are 17. The Stratoni and Olympias
deposits were previously in production and benefit from significant
infrastructure which includes underground mining development , two
plants and a ship loading facility on the Aegean Sea. Hellas Gold's operating,
general and administrative expenses of $1.01 million), operating losses ($9.32 million) and capital expenditure in Greece
($1.86 million) and the effects of
foreign currency translation on cash ($1.

diaspora vlachs

"
"Our distribution network is expanding rapidly giving the IDeaS
solutions a local presence in many new markets.

Tune IT solutions with operating procedures and vice-versa.
IDeaS clients include some of the most-prestigious companies in
the world, including InterContinental Hotels Group, Hyatt
International, Hilton International, Mandarin Oriental Hotel Group,
Millennium Hotels and Resorts , Movenpick Hotels and Resorts,
Shangri-La, Kempinski Hotels + Resorts, Conrad Hotels, Universal
Orlando , Travelodge UK, Steigenberger Hotels and Resorts, The Venetian
Resort Hotel Casino, Vail Resorts and Gaylord Entertainment
properties, such as Gaylord Opryland.

- In March 2005, our shares were listed on the Toronto Stock
Exchange (TSX), graduating from the TSX Venture Exchange. Neil has over 20
years' experience as a mining engineer and his expertise in
underground mining with backfill will complement our existing team at
Stratoni.

- We intend to submit our new business plans for Olympias and
Skouries to the Greek government in Q4 2005, followed by updated
feasibility studies in Q1 2006.17 million).

Change in functional and reporting currency

Effective 1 October 2004, the Company changed its functional
currency from the Canadian dollar to the United States dollar. In
general, this change resulted from a combination of a gradual
increase in the operational exposure to the United States dollar and
predominantly United States dollar based asset and investment base of
the Company and from a gradual increase in the overall proportion of
business activities conducted in United States dollars.

metropolis vlach

"

About my-hotel.
By analyzing how the employees and guests interact with the
technology, then my-hotel.gr identifies key areas for improvement,
which may include process, methodology, or technology changes:

Optimize the usage of IT systems in order to get the most out
of it.

my-hotel.

Greece - European Goldfields holds a 65% interest in Hellas Gold
S.

Results of operations

The Company's results of operations for the three-month period
ended 31 March 2005 were comprised primarily of activities related to
the Company's regional exploration programs in Romania and the
results of operations of the Company 's 65%-owned subsidiary Hellas
Gold.05 0.70%, and assumed an obligation to subscribe to additional
shares in Hellas Gold, resulting in an interest of 65% on a
fully-diluted basis.40 million) and interest earned
($0.

minorities asterios

- The Stratoni mine is now ready to resume production following
the recent completion of refurbishment work on the underground
infrastructure and plant.1 g/t gold and 11 g/t silver for 2.

David Reading, CEO of European Goldfields, said: "The first
quarter has seen further progress on our Greek assets with the key
environmental permits being awarded for Stratoni , the first such
permits to be granted in the country for over six years. In Romania we are pleased with the progress made on the
in-house pre-feasibility study and at increasing the grade at Certej ,
as well as being excited about prospects of Cainel, the licence
awarded to us in January this year. All three deposits have been well defined with over
200,000 metres of drilling and the completion of feasibility studies
and later engineering studies. These assets represent
some of the largest defined deposits in Europe.09 0.

Liquidity and capital resources

As at 31 March 2005 , the Company had cash and cash equivalents of
$58.12 million, compared to $65.58 million).80 per
share.

helsinki mihai

my-hotel.gr to Distribute IDeaS Revenue Optimization Throughout Greece and Cyprus

Their primary mission is to
professionally audit the existing technology of a hotel property,
within the overall framework of its hospitality operations.

- We completed our technical teams in Romania and Greece and
recently recruited Neil Hepworth from Rio Tinto.egoldfields.com/goldfields/resources . Except as otherwise noted, all dollar
amounts in the following discussion and analysis and the Consolidated
Financial Statements are stated in United States dollars. The Company continues to incur losses and until commercial
production commences and revenues are generated, the Company will
continue to do so.65 million ($0. From 9 February 2004 to 31 March 2004, the
Company's interest in Hellas Gold was accounted for as an equity
investment. In Q1 2004, the Company realised a
foreign exchange gain of $0.

- The Company's interest income has increased to $0.75 million), partly offset
by the exercise of options ($0.

olympos balkans

Highlights of the
first quarter 2005 are:

Corporate:

- As at 31 March 2005, we had cash and cash equivalents of
US$58.

The Company's Common Shares are listed on the AIM Market of the
London Stock Exchange and on the Toronto Stock Exchange (TSX ) under
the symbol "EGU".02 0.01 0. The credit has
arisen due to the Company recognising a future tax asset for the
losses carried forward in Hellas Gold.44 million), capital
raising costs ($4.10
million for Romania and at $7.

fyr travelogue

Based in Athens, my-hotel.jsp

Forward-looking statements

This news release contains certain forward-looking statements
concerning the Company's future operations, economic performances,
financial condition and financing plans. These statements are based
on certain assumptions and analyses made by the Company in light of
the its experience and its perception of historical trends, current
conditions and expected future developments as well as other factors
the Company believes are appropriate in the circumstances.

Romania - In Romania , the Company holds a 80% interest in Deva
Gold S.94 million for the remainder of 2005) and its
planned expenditures on its mineral properties (estimated at $5.95 million for Greece for the remainder
of 2005).

helsinki dialect

The company is a
key regional distributor in Greece and Cyprus for various hospitality
focused products.gr played a key role in
implementing solutions for the Athens Olympic Games including the
front office solutions for the Olympic Village, the 8 Media Villages
and implementation of the Central Reservation System for the Athens
Olympic Committee. Our products are
specifically designed to provide hoteliers with a clear vision to
their data, thereby giving them greater control over their business.4 g/t at a 2 g/t gold cut-off.2 Moz).

Romania - European Goldfields holds five mineral properties
located within the "Golden Quadrilateral" area of Romania, where it
has embarked on a resource development and pre-feasibility programme
to underpin the value of its 80%-owned Certej deposit and surrounding
satellite bodies.18 0. The following
factors have contributed to this reduction in loss:

- The Company's corporate administrative and overhead expenses
have decreased by 28% from $1.09 million by way of a
brokered private placement of convertible loan notes, for which the
Company recorded a non-cash expense for financing costs of $1.17 million in Q1
2004.50 million ), the
effects of foreign currency translation on cash ($3.

diaspora aromanian

Business Editors/Travel Editors

MUNICH, Germany + MINNEAPOLIS----IDeaS, the leading provider of hospitality revenue optimization
solutions and one of the industry's fastest growing technology
companies, announced today that they had entered into a strategic
partnership agreement with Greek solutions supplier, my-hotel.
"As revenue management has become increasing critical to hoteliers
in the region, it became very important that we offer a product that
was robust enough to manage the diverse array of properties in the
region ," said Christos Pagonis, Managing Director of my-hotel. This regional
connection gives our customers an added layer of service with the
convenience of conducting business with local business partners
familiar with regional customs and dialects," added Uli Pillau, IDeaS'
Managing Director for the region.25 million in Q1 2004 to $0.47 million), deferred
exploration and development costs in Romania ($5. Concurrent
with this change in functional currency, the Company adopted the
United States dollar as its reporting currency.

aromanian fyr

gr provides and implements IT solutions (products +
services) to the hospitality industry.gr experts have been creating, providing and implementing
IT total solutions for the hospitality industry for more that 20 years
as leaders in the markets of Greece + Cyprus .28 million ($0.4 Mt high grade core to the deposit grading
3. Hellas Gold owns assets in Northern Greece which consist of
three near-production deposits within 70-year mining concessions
covering a total area of 317 km2. The three deposits
are located within a 10 km radius of each other, making this
effectively a gold and base metal centre. The Certej deposit hosts measured and indicated
resources of 31.

For additional information on the resource and reserve estimates
quoted above, please refer to the Company's Resources + Reserves
Declaration at www. The following discussion and
analysis should be read in conjunction with the Company's unaudited
consolidated financial statements for the three-month periods ended
31 March 2005 and 2004 and accompanying notes (the "Consolidated
Financial Statements").26 million in Q1 2004.

The decrease in cash and cash equivalents and working capital as
at 31 March 2005, compared to the balances as at 31 December 2004,
resulted primarily from operating losses ($3.05 million), capital
expenditure in Greece ($1.

fyr balkans

"Along with being the industry 's premier product, we were impressed
with the ease of deployment, inherent in the IDeaS solution . "We are very
pleased that they selected IDeaS Revenue Optimization as the solution
to offer their clients.

Teach people on how to control the systems and how they can
work without them. IDeaS'
ASP solution has been particularly well received by leading
hospitality distributors around the globe. For more information, visit
www.ideas.25 million as at 31 December 2004
and US$13.
This reduction in loss is particularly significant considering we
recorded start-up costs in Greece of US$1.

- We have also agreed terms for the construction of a new 1,900
metre adit tunnel at Stratoni to allow better access to the reserve.

- We have continued to update feasibility studies and prepare new
business plans defining the way forward for Hellas Gold's major gold
and base metal projects of Olympias and Skouries.com.

Overview

The Company, a company incorporated in the Yukon, Canada, is a
resource company involved in the acquisition, exploration and
development of mineral properties in Greece, Romania and the Balkans.08 0.18 per share) for the same period of 2004.

- Effective 1 October 2004, the Company changed its functional
currency from the Canadian dollar to the United States dollar.26
million in Q1 2005 from $Nil in Q1 2004 primarily as a result of the
Company acquiring significant assets through the acquisition of a 65%
interest in Hellas Gold in 2004.41
million as at 31 March 2004. The
Company also continues to look at new satellite targets around the
Certej deposit with a view to adding additional incremental ounces.

diaspora farsarotul

4 Mt grading
2.

- In December 2003, the Company raised $15.

As at 31 March 2005, the Company had working capital of $57. The resulting net translation adjustment has been
credited to the cumulative translation adjustment account in the
equity section of the balance sheet.

thessaloniki balkans

gr's knowledge of both the industry and their experience
in the Greek and Cyprus regions allows them to offer a compelling
value proposition to hoteliers in the area," said Fabian Specht,
Director of Business Development and Distribution EAME.my-hotel.A.99 million in Q1 2005, which resulted from a strengthening
of the United States dollar against the Euro as at 31 March 2005
compared to 31 December 2004.43 million as at 31 March 2004.

The increase in cash and cash equivalents and working capital as
at 31 March 2005, compared to the balances as at 31 March 2004,
resulted primarily from two private placements ($93.

minorities aromanian

gr specializes in implementing solutions
and providing services to the hospitality industry .000 people).12 million, compared to US$65., was awarded all
environmental permits for its Stratoni operations. Final approval to
commence mining operations is expected shortly, to be followed by
production launch.34
Moz of gold equivalent (80% attributable equals 1. However,
whether actual results and developments will conform to the Company's
expectations and predictions is subject to a number of risks,
uncertainties and assumptions. Hellas
Gold owns assets in Northern Greece which include 70-year mining
concessions over a total area of 317 km2 and three polymetallic
near-production deposits, known as Olympias, Stratoni and Skouries,
which contain proven and probable reserves.12
million in Q1 2004, compared to $Nil in Q1 2005.48 million as at 31 December 2004 and $14.
Equity transactions have been translated at the historical rates,
with opening equity on 30 June 2000, restated at the rate of exchange
on that date.

closely metropolis

This is especially
attractive as more hotels have recognized the mission critical nature
of revenue management and the demand for IDeaS, as the industry's
premier solution has correspondingly grown.
IDeaS products are available directly from IDeaS and through
authorized IDeaS Distribution Partners.56 million in Q1 2005
compared to $Nil in Q1 2004.

Romania:

- In Romania, we published a new, better defined estimate for our
80%-owned Certej deposit which outlined resources of 31."

About European Goldfields

European Goldfields Limited is a resource company involved in the
acquisition, exploration and development of mineral properties in
Greece, Romania and the Balkans.97%
to 55.56 million in Q1 2005 were
incorporated in the Company's consolidated statement of loss and
deficit for the period, compared to the Company 's share of loss in
equity investment of $0.

armani metropolis

Train hospitality staff on how to read / translate data
results.
Headquartered in Minneapolis, Minnesota, IDeaS maintains global
technology , support and sales offices in North America, the United
Kingdom, Europe, Australia and Asia.com

NOTE TO EDITORS: In the name Movenpick Hotels there should be an
umlaut over the "o" in Movenpick . This work has underpinned the fact
that Certej can be mined more selectively to optimise an open pit.0
Moz on a gold equivalent basis (65% attributable equals 11.4 Mt grading 2. Hellas Gold's
assets also include potential revenue generating stockpiles and
tailings located on the surface.89 million
in Q1 2005, primarily as a result of the Company being less reliant
on external consultants and professional advisors following
recruitment of full-time employees in 2004. Also, in Q1 2004, the
Company incurred higher expenses for the listing of its common shares
on the AIM Market of the London Stock Exchange, compared to expenses
incurred in Q1 2005 for the listing on the Toronto Stock Exchange.29
million, compared to $63.

thessaloniki asterios

my-hotel.gr

About IDeaS

Integrated Decisions and Systems, Inc. This
estimate includes a 11.3 km2 and is located contiguous
with our Certej property. Exploration work continues to define the
mineralised system with a view to either defining a stand-alone
project or a satellite for Certej.
Forward-looking statements are subject to a variety of factors that
could cause actual results to differ materially from those
contemplated by these statements.

- The Company recorded a credit for future income taxes of $0.17 million through the exercise of
75,000 common share options at a weighted average price of C$2.

Risks and uncertainties

The risks and uncertainties affecting the Company are
substantially unchanged from those disclosed in the Company's
Management's Discussion + Analysis for the year ended 31 December
2004.

thessaloniki helsinki

- In Q1 2005, we halved our loss to US$2.65 million ($0.

Additional information relating to the Company is available on
the Canadian System for Electronic Document Analysis and Retrieval
(SEDAR) at www.
Nevertheless, during Q1 2005, the Company retained significant cash
balances in Euro in order to meet a Euro subscription obligation in
Hellas Gold. Consequently , the Company recorded a foreign exchange
loss of $0.

- The Company's amortisation expense has increased to $0.58 million), deferred exploration and
development costs in Romania ($0. In accordance with
accounting principles generally accepted in Canada ("Canadian GAAP"),
the change was effected by translating all assets and liabilities, at
the end of the prior reporting periods, at the existing United
States/Canadian dollar foreign exchange spot rate, while income for
those periods were translated at the average rate for each period.

fyr minorities

IDeaS products offer award-winning technical innovation
paired with unsurpassed personalized support.

We have developed a good exploration
model defining where we must look for further Olympias and Skouries
type targets and we will be actively pursuing these opportunities in
2005. Hellas Gold's assets also include potential
revenue generating stockpiles and tailings located on the surface. The Company undertakes no obligation
and do not intend to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required under applicable law.02 per share)
for the three -month period ended 31 March 2005, compared to $5.71
million in Q1 2005, compared to $Nil in Q1 2004 .

Outstanding share data

The following represents all equity shares outstanding and the
number of common shares into which all securities are convertible,
exercisable or exchangeable:

Preferred shares: Nil

Common shares: 112 ,173,708
Common share options: 3,720,000
Common share broker warrants: 415,498
-----------
Common shares (fully-diluted): 116 ,309,206

Outlook

In Greece, the Company is currently updating the feasibility
studies and preparing new business and environmental plans defining
the way forward for Hellas Gold's gold and base metal projects of
Olympias and Skouries.

balkan pindos

"
"my-hotel.

European Goldfields Limited: Results for the First Quarter 2005; Loss Down 50% vs. Q1 2004-Cash Balance up US $45 Million

- With the current cash balance and projected revenue, we expect
to be self-funded to the end of 2006 and beyond, covering the
permitting process for our major gold and base metal projects in
Greece.

18 per share) in Q1 2004.1 Moz)
from a measured and indicated resource base of 21. Furthermore, both Stratoni
and Olympias were previously in production and have extensive
existing mining and plant infrastructure and a ship loading facility
on the Aegean Sea, making them near-production properties which
require new permits.28
million ($0.97%
interest in Hellas Gold.

During the three -month period ended 31 March 2005, the Company
received total proceeds of $0.

In Romania, work at Certej is now directed towards completing an
in-house pre-feasibility study with specific focus on optimising
metallurgical recoveries and defining a practical open pit.