One of EnCorr's primary features is mean-variance optimization -- the
standard tool used to make asset allocation decisions.5% for 2005. Information Technology, the sector
generally associated with small-cap/high-growth stocks, currently is ranked
ninth out of the ten sectors within the SmallCap 600, returning an annualized
6.


S+P SMALLCAP 600 (close of July 19, 2005 )

$10,000
INVESTED ANNUAL YEAR-
% OF 12/31/ RATE OF TO-DATE 2004
ISSUES MARKET 1994 RETURN PRICE PRICE
VALUE NOW WORTH FR 12/94 CHANGE CHANGE

Consumer Discretionary 112 17.49 7. Analysis of the duplicate and standard sample data
indicates that the repeatability of samples and the variance of
analytical results are well within acceptable limits.

unmeasured statoo

Ibbotson Adds Black-Litterman Capability to EnCorr Investment Analysis Software

com. In addition, the programme has
delimited the peripheries of the deposit. Duplicates, repeats and known gold standards are inserted
according to standard industry practice, with check assays (for the
2001 sampling and drilling program) carried out by Bondar-Clegg + Co.

expectation variance

With offices in
Chicago, New York and Tokyo, Ibbotson Associates markets its integrated
product line to institutional money managers, insurance companies , plan
sponsors and consultants, financial planners, brokers, mutual fund firms,
hedge funds, banks and small money managers.29%
Consumer Staples 22 3.00% $36,893 13. Drillhole spacing in the
core of the deposit was reduced to a nominal 20 x 20 metre spacing
which has resulted in a portion of the deposit being classified as a
measured resource. The reported resources for the Certej deposit,
subdivided by resource category and reported above a 1 g/t gold lower
cut-off grade, are summarised below.56 3.5 X 2.5 metre SMU
reported.sedar.
Ltd's laboratory in Vancouver, British Columbia and Analabs laboratory
in Perth, Western Australia.

raters chebyshev

"
Standard + Poor's data illustrates the wide variance in performance based
on sector classification within the SmallCap 600.2%. "However, investors still need to do
their homework.45% $54,314 17 .40% 27.82% 11.17% 5. The aim of the programme
was to prove up the selective mining unit ( 'SMU') model previously
estimated by RSG Global in January 2002 and determine the level of
continuity in high grade zones.9 2.5 X 12.
David Reading, Chief Executive Officer of European Goldfields ,
said:
"The new resource estimate for Certej has enabled us to better
define the deposit, understand the geological model and confirm the
presence of a high grade core. A team of geologists and miners
are currently opening up old workings in order to allow mapping and
sampling, and all historic maps and data have been digitised. In addition to its assets in Romania,
European Goldfields holds a 65% interest Hellas Gold S.

correlations reml

com/indices.78% 8.05%
Health Care 72 12.80 % $31,802 11.49%
Materials 40 5.5 metre SMU
reported for the eastern and western domains and inverse distance
squared (using no gold cut-off) for the central domains . The definition of this higher grade material and the
delimitation of the deposit peripheries enables pit scoping work that
extracts the high grade core and the lower grade material around it
with optimum strip ratios.

Forward-Looking Statements

This news release contains certain forward -looking statements
concerning the Company's future operations, economic performances,
financial condition and financing plans.

expectation psychopathology

Two relatively new and popular solutions to this problem are
resampling and Bayesian asset allocation approaches.74% $41,350 14.92% $19,272 6.47 1.3
---- -----------------------------------------------------------------
Indicated 9.42 3.

Certej Resource Parameters

The resource estimation study included a review of the exploration
data quality, review and construction of appropriate geological
constraints, statistical and geostatistical investigation, grade
estimation, and classification of the estimate in accordance to the
criteria laid out in the Canadian National Instrument 43-101.

irt factorial

The company's
business lines include investment consulting and research; planning and
analysis software; investment advice; educational and marketing services and a
widely used line of NASD-reviewed presentation materials.40% 9.61 % 11.23% 52.68% 13.10%
S+P 600 600 100.91 12 10.
Whilst the global resource is similar to the 2002 estimate, the
increased understanding of gold distribution and higher confidence in
the level of continuity of high-grade zones within the deposit has
enabled the resource to be defined at higher cut-off grades.

psychopathology correlations

The new version advances mean-variance optimization (MVO) with
Black-Litterman capabilities. "In this instance,
their risk has been rewarded with positive returns for eight of the past ten
years. They should certainly be selective, and not just buy by type,
size or classification.66% 21.

European Goldfields Ltd.: New Resource Estimate at Certej Defines Higher Grade Core

43 2.17 11 11.2
------------------------------- --------------------------------------

Note: Uniform conditioning and a 6.

Cainel Licence

European Goldfields has also recently started an exploration
programme on the newly acquired Cainel licence in Romania, as
previously announced on 10 January 2005.
The eastern and western domains are well defined by drilling,
surface and underground channel sampling and the resource has been
estimated using ordinary kriging and uniform conditioning. The central domains have been
classified as Inferred Resource. These statements are based on
certain assumptions and analyses made by the Company in light of 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. However, whether actual
results and developments will conform with the Company's expectations
and predictions is subject to a number of risks, uncertainties and
assumptions.

covariance anova

"Given the investor input, the
Black-Litterman model can be viewed as a tactical or dynamic asset allocation
tool that offers something above and beyond both resampled MVO and traditional
MVO.70%
Financials 73 15.59% 2.45%
Utilities 20 4.48% $35,226 12.1 1. Both
methods were applied based on detailed variography. Brett Gossage of RSG Global was the Qualified Person
responsible for the resource estimates quoted above.

statoo reml

Given three inputs
(mean, standard deviation and correlation) from each desired asset class, MVO
produces an "efficient frontier.2% per year, reports Standard +
Poor's, the world's leading provider of independent investment research,
indices and ratings.4%. Within the sectors,
Energy has seen 26 of 29 issues go up, while Information Technology has seen
59 issues rise this year and 69 fall.5
---------------- -----------------------------------------------------
Indicated 28.
The high grade material forms two coherent zones within the
eastern domain.
Samples were assayed at Analabs Pty Ltd's laboratory in Gura
Roseii, Romania using a standard fire assay technique and an AAS
finish . The deposit was modelled as three
major regions, the western, central and eastern blocks.

statisticians correlations

57% 19 .5 0. 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,
with significant proven and probable reserves.

variance irt

In 2003, Ibbotson introduced resampling or resampled MVO in EnCorr 9. The S+P SmallCap 600 has posted positive returns for
eight of the last ten years, and is currently up 6.1, a 5-year projected growth-
rate of 15. For more information , visit
http://www.

Business Editors

VANCOUVER, British Columbia----European Goldfields Limited (TSX VENTURE:EGU)(AIM:EGU) is
pleased to announce an update of resources on its 80%-owned Certej
project in the Southern Apuseni Mountains of Romania.9 0.1
---------------------- -----------------------------------------------
Inferred
(Central Domains) 3.5 X 2. Scoping work on pit optimisations will establish the
mining cut-off grades and associated strip ratios for appropriate and
optimum exploitation of the deposit.com) within the next 30 days, and will update RSG
Global's previous resource estimate of the Certej deposit filed on
SEDAR on 29 January 2004 under the category "Engineering Report". The grade estimate
for these central domains has been derived by inverse distance squared
weighting, as there are currently insufficient data available to
undertake detailed variography.

variances informants

It provides a framework for incorporating investors' views, and
confidence in those views, into the expected returns," said Tom Idzorek,
director of research at Ibbotson Associates .1
---------------------------------------------------------------------
Inferred 1.32 3.3
---------------------------------------------------------------------

Note: Uniform conditioning and a 6. In addition the increased understanding of
the grade distribution will enable the selection of appropriate
samples for metallurgical testwork. The metallurgical testwork
includes mineralogical studies into the gold disposition within the
mineralisation, and floatation testwork aimed at maximising gold
recoveries. The
ongoing exploration programme for 2005 is aimed at progressing to
systematic sampling of the mineralisation using underground
development and diamond drillholes with the objective of a preliminary
estimate of resources by the end of the year .

variance irt

The first is an
enhancement to the optimization process and the second is a model for
developing better inputs.
"Small-cap issues have an allure for growth-oriented investors who are
willing to take on additional risk to obtain a higher return," says Howard
Silverblatt, Market Equity Analyst at Standard + Poor's.
Standard + Poor's data also shows that the market gains are not uniform .42% 22.55% 26.23% -1.64 1.07 12 3. This work will allow us greater
flexibility in defining a more selective mining model.
Geological constraints have been constructed for oxidation ,
lithology and mineralisation based on a lithostructural interpretation
provided by European Goldfields .A.

sobel latent

"
EnCorr is designed to be a flexible tool for pension fund management
consultants, money managers, plan sponsors, sophisticated independent advisors
and financial product marketers.35% -0.19 5 0. Further work at
Certej now focuses on optimising the metallurgical recovery and
completing an in-house pre-feasibility study. In addition, the extensive wall
rock brecciation and alteration were never tested by the historic work
and grab sampling by European Goldfields indicates that this also
carries gold mineralisation.

About European Goldfields

European Goldfields is a resource company involved in the
acquisition, exploration and development of mineral properties in
Greece, Romania and the Balkans. 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.

probability randomizer

A well-known problem with MVO is that it produces optimal portfolios that
are often highly concentrated in a small sub-set of the assets being
optimized .
"The Black-Litterman asset allocation model is a method for developing
expected returns for use in either a traditional mean-variance optimizer or a
resampled mean-variance optimizer to create robust strategic asset
allocations.4% of its value,
corresponding to an annual loss of 17.29% 21.89% 6.1
---------------------------------------------------------------------
Total Inferred 8. The
Company undertakes no obligation and does 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.

correlations statoo

The technique leads to better-diversified asset allocations (i.7% institutionally held.73% $29,454 10.

---------------------------------------------- -----------------------
Average
Average Million Silver Million
Resource Million Gold Grade Ounces Grade Ounces
Category Tonnes (g/t) Gold (g/t) Silver
---------------------------------------------------------------------
Measured 3 .5
---------------------------------------------------------------------
Measured +
Indicated 31.86 3.15 7 0.
M.

latent coefficient

, allocations
to more asset classes) relative to traditional MVO.
To date, from the close of 2003, 46 small-cap issues have at least doubled in
price, but 26 have lost at least 50% of their value.50% $21,261 7.42% 37.14% 26.0
----- ----------------------------------------------------------------
Inferred
(East/West Domains) 5.4 1.8
---------------------------------------------------------------------
Measured +
Indicated 11.26 11 4.5 0.

psychopathology coefficient

4%, the
Telecommunications sector has plummeted, losing 86.
"Small-cap stocks are hot now, just as Technology and IPO's were in the
late 1990s," continues Silverblatt.20%
Telecommunication
Services 2 0.37% 16.6 0.29 2.32 7 1. The property hosts
vein-hosted epithermal , stockwork and disseminated mineralisation that
historic workings indicate occur over an area of some 1,000 metres by
250 metres, and which lie 10 kilometres along strike from the Certej
deposit .

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release and the
information contained herein.

reml informants

0.

"
Currently , the average S+P SmallCap issue has a market value of $1,196
million, a 2005 estimated Operating P/E of 22. The average yield for the
284 issues paying a dividend, within the S+P SmallCap 600, is 1.18% $77,007 21.7 0. Historic mining was restricted to below 200 metres depth from
surface and grab sampling by European Goldfields has indicated that
the mineralisation extends to surface .

psychopathology symmetrical

Now Ibbotson has added
functionality to create better inputs based on one of the most sophisticated
Bayesian asset allocation techniques, the Black-Litterman model.standardandpoors.41% 0.standardandpoors .5 X 12. The high
grade core of the deposit is demonstrated by the estimated resources
at a cut -off of 2 g/t gold for the western and eastern domains which
can be summarised as follows:

---------------------------------------------------------------------
Average
Average Million Silver Million
Resource Million Gold Grade Ounces Grade Ounces
Category Tonnes (g/t) Gold (g/t) Silver
------------------------------------------------------ ---------------
Measured 1.4 1. A
technical report from RSG Global on the Certej resource will be filed
of SEDAR (www.

covariance statisticians

About Ibbotson Associates
Ibbotson Associates , founded by Professor Roger Ibbotson in 1977, is a
leading authority on asset allocation, providing products and services to help
investment professionals obtain, manage and retain assets.

For more information on the S+P SmallCap 600, please visit
http://www.41%
Industrials 109 17.14 2.26 5 0.8 0. Both Analabs and Bondar-Clegg are ISO
9002 certified.

reml raters

S+P SmallCap 600 Index Reaches New High

While the Financial sector
has soared over the past 10-1/2 years, returning a compounded 21.58%
Energy 29 7.94% $47,057 15.26% $1,361 -17.
The update of resources was carried out by RSG Global Pty Ltd
("RSG Global") as a result of a programme of in-fill drilling (39
holes totalling 8,229 metres) in the Certej deposit that was
undertaken in late 2003 and throughout 2004.1 2.17 1. Gold was recovered using gravity methods
in historic production and sampling, indicating that a significant
portion of the gold is free milling.

randomizer statisticians

" Each point on the efficient frontier
represents an optimal asset allocation, more specifically an asset allocation
that maximizes expected return for a given level of risk.e. The software allows a user to analyze
historical performance data; evaluate and monitor manager/fund style and
performance; develop and implement an asset allocation policy with financial
products such as mutual funds and separately managed accounts; and test and
forecast portfolio performance with varying spending rates using Monte Carlo
simulation. Sector Performance Varies From Great To Dismal

NEW YORK, The price of the S+P SmallCap 600 today
traded at a level above the 350 mark for the first time since its inception on
January 3, 1994, returning a compounded 13. Year-to-date, gainers
within the index, slightly outnumber losers, 313 to 283.0%, and is 62.87%.77%
Information Technology 121 14.42% -0.

variance covariance

Black-Litterman Methodology Produces Better-Diversified Portfolios That Also
Reflect Investors' Market Expectations

CHICAGO, the latest version of
its sophisticated asset allocation software used by money managers and
consultants.59%

About Standard + Poor's
Standard + Poor's is the world's foremost provider of independent credit
ratings , indices, risk evaluation, investment research, data and valuations.
With approximately 6,500 employees located in 22 countries, Standard + Poor's
is an essential part of the world's financial infrastructure and has played a
leading role for more than 140 years in providing investors with the
independent benchmarks they need to feel more confident about their investment
and financial decisions.17 10 1."
The next phase of the in-house pre-feasibility study will focus on
optimising mining and understanding the variable metallurgical
recoveries.

variance factorial

---

- - kjjkjk

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