Gold King Mine

Located 8 miles from Silverton, Colorado, the Gold King property is in the heart of a longstanding gold-producing area. The property consists of approximately 170 acres and has known gold potential.

In an independent geologist's report, MPH Consultants reported that surveys have identified several prospective targets with potential for hosting large tonnage, primary gold mineralization. An advanced evaluation report completed in 1990 by MPH Consultants also listed proven, probable and potential reserves of approximately 1.4 million short tons at 0.29 ozs/st Au and 2.64 ozs/st Ag. (S.E.C. compliant reserves in 1990 were 116,000 ounces of gold). The company will attempt to verify and expand these now historic reserve and resource figures.

Approximately 20,000 short tons of ore were produced by a joint venture with Echo Bay Mines' adjoining Sunnyside Gold Mine in 1990, with the Gold King Mine in stasis since that date. Very little base metals exist in the deposit, and a large part of the projected values may be produced in an unrefined gold product from the mill. The historic production from the Gold King Mine in 1895-1920 was approximately 345,000 ounces of gold, 1.4 million ounces of silver, at approximate grades of 0.50 ozs/st gold and 3 ozs/st silver.

Colorado Goldfields is currently reinterpreting the known geological data and models for the Gold King Mine and intends to conduct geophysics program, as well as surface drilling, to determine next steps towards production within the next two to three years. The Company anticipates it will also conduct underground exploration and development on Gold King to expand the reserve and resource base.

Certified Silver Fire Assay Results

The very encouraging indications from Niton XRF analyses performed in November are now followed with Certified Silver Fire Assay Results received from Assayers Canada through its affiliation with Skyline Laboratories in Tucson, AZ. The assay results for selected intervals of drill hole CG08-01 from the 2008 exploration drilling program on the Gold King Extension project. Ore grade values returned from two strong structures confirm a weighted average of 269.62 grams per metric ton of silver over a 6 foot interval between 669-675 feet, and 85.27 grams per metric ton of silver over a 4.8 ft interval between 639.2-644 feet. Included in these averages is one 0.5 foot interval containing 1,646 grams of silver per metric ton. Historic production of silver from the Gold King Mine yielded approximately 1.4 million ounces of silver. The fire assay results that the Company has received from the "A Vein Zone" of the Gold King Extension are exceptionally supportive of our geological interpretations; that is, mineralization continues to the Northeast from the old Gold King Mine workings. "These structures contain spectacular intervals of mineralization. We are seeing the first indications that significant undiscovered ore shoots are present in these veins, opening the door for enormous potential to the Northeast of the Gold King Mine. Wow. This is very exciting," said Project Geologist Jonathan Moore,

Assay silver results for the "A Vein Zone" in hole CG08-01 are:

Colorado Goldfields’ CEO Lee R. Rice Sits for 2008 "State Of The Union" Interview With Company's CFO C. Stephen Guyer; Mr. Rice Discovers Bonanza Gold Potential

LAKEWOOD, CO –Colorado Goldfields Inc.’s (OTCBB:CGFI) CEO Lee R. Rice was recently interviewed by the Company’s CFO C. Stephen Guyer regarding the success of this season’s drilling program and what the program revealed. Following is the interview.

Mr. Guyer: Given your 40-year background in exploration mining, and in particular junior mining companies, what in particular made this season’s drilling program so successful?

Mr. Rice: Colorado Goldfields' 2008 drilling program encountered the vein system in its projected location, proving that the Gold King vein system continues into this previously unexplored area and confirming the possibility of additional ore bodies in this vein system. The vein system that was highly productive in the Gold King mine runs generally N 25° E. Two sets of cross structures running N 7° W and N 34° W appear to have localized ore deposition and yielded the most productive stopes in the mine. This vein system was projected to extend Bonita Peak, but no exploration from the mine workings or from the surface was extended into this virgin territory.

In addition, the three drill holes completed during the 2008 exploration program were able to retrieve samples of the vein material and country rock enabling us to begin the task of evaluating the extent and grade of mineralization present in the veins.

The confirmation that this vein system continues into the unexplored area and is not truncated or offset and that it bears precious and base metal mineralization is a huge success. It lays the groundwork for our future exploration of the approximately 3,250 feet of property between the Gold King and the extended Sunnyside vein system.

Mr. Guyer: What was the intention of our exploration activities undertaken in 2008?

Mr. Rice: The original plan for our exploration effort in 2008 was to access the Gold King workings and begin refurbishment of the mine adit to facilitate exploration from underground drilling stations proximal to the Gold King vein. When this proved infeasible, a drilling program was planned and undertaken to reach portions of the projected Gold King vein system from the surface.

The unexplored area is situated in a downdropped block of terrane, a graben, between the Bonita Fault and the Ross Basin Fault. It was not known whether the Gold King vein continued across the Bonita Fault into the graben or to what extent the graben faults affected mineralization in the vein system.

Our 2008 exploration program was planned to encounter the extension of the Gold King vein system and to evaluate the potential for ore grade mineralization in that length of the vein system within the graben.

Mr. Guyer: What did the 2008 exploration program reveal?

Mr. Rice: First of all, the drilling program confirmed that the Gold King vein system extends into the graben block and that it is not truncated or significantly displaced laterally by the bounding faults.

An important consideration in the search for ore in the Silverton area is to characterize where you are vertically in this epithermal vein system. The uppermost portions of the veins contain the greatest proportion of gold in the vein mineralization. The proportion of gold decreases with depth while the proportion of silver increases. At greater depths, silver decreases and the lead content of the veins increases. This process continues with increasing depth into zinc and finally copper mineralization. In many parts of the Silverton and Eureka districts, erosion and mass wasting have removed the uppermost portions of the vein mineralization exposing veins on the surface with predominantly silver and base metal mineralization.

The Gold King and the Sunnyside mines are situated reasonably high in the vein mineral zonation. They both produced significant amounts of precious metals, but graded downward into base metal mineralization. The downdropped block between these mines has been shown to contain the same vein system that comprised the Gold King mine, but the uppermost areas of the vein system in that block now lie adjacent to the existing mine workings where gold grades were declining downward. This suggests that higher gold grades may be encountered in the veins within the previously unexplored graben block.

A very exciting new result of this year's exploration program confirmed that at least two episodes of mineralization took place in this area. This discovery occurred during my analysis of assay results in the last 48 hours.

The presence and quantity of pathfinder elements in drill core samples of the country rock suggest that a subsequent episode of mineralization was not as vertically extensive as the initial episode and that it occurs at a deeper position in the epithermal system than earlier mineralization. This "overprinting" complicates the search for ore, but carries with it the possibility of additional precious metal ore bodies, even bonanza gold, at deeper levels than were encountered in the mines that exploited vein material from the first mineralizing episode.

Mr. Rice has been at the helm of Colorado Goldfields since September 2008, and brings over 40 years of geological and engineering experience to the enterprise. Mr. Rice has been a Registered Professional Engineer in Colorado for more than 30 years and is a Registered Member of the Society of Mining, Metallurgy and Exploration. Mr. Rice is also a director of International Beryllium Corporation, a public company traded on the Toronto Venture Exchange with its headquarters in Vancouver, British Columbia.

Colorado Goldfields Reports Gold Assay Results (Part Two of Two-Part Release); CEO States Gold Analytics is 100x of Standard Exploratory Drilling; Confirms Gold in New Unexplored Ground

LAKEWOOD, CO " Colorado Goldfields Inc. (OTCBB:CGFI) is pleased to present final summary results from the 2008 Gold King Extension Exploration Program. The Company confirms that the Gold King Extension has gold-bearing dense mineralization structures continuing from historical Gold King Mine workings into new unexplored ground.

"The detailed nature of our sampling program provides a wealth of multi-element geochemical analytical results. The information gained from this multi-element analysis program is an order of magnitude greater than 100 times what is revealed in a standard exploration drilling program," said Lee Rice, CEO of Colorado Goldfields. "This wealth of information affords the Company a distinctly extraordinary advantage. We will drill smarter, not harder," added Rice. "Our 2008 drilling program has successfully confirmed that the Gold King Extension has tremendous potential for new discoveries along its approximately 3,250 feet of strike length. We have determined through strategic drilling, that the Gold King Extension hosts favorable, well-developed, and continuous structural zones (see diagram below), such as the A and B Vein Zones. We were also successful in returning sample intervals that contain ore grade mineralization," said Jonathan Moore, Project Geologist. The following diagram depicts the overall plan of the Gold King Extension drilling program.

"Our 2008 drilling program is a resounding success. The Company’s mandate was to definitively assess the Gold King Extension. The Gold King Mine and Gold King Extension have a historical resource estimate of approximately 400,000 ounces of gold, and 1.3 million ounces of silver. Our objective focused on achieving two clear results: 1) intercept strong, continuous structures, 2) with comprehensive detailed sampling, discover solid indications that ore grade mineralization is present. Our strategy of surface drilling in the Ross Basin was absolutely the right approach," said Jonathan Moore, Project Geologist.

The assay analysis results of the Company’s drill core samples instantly confirmed a series of strong parallel NE-SW trending quartz veins, many with significant, sometimes dense mineralization. As assay results began accumulating, our highest expectations were realized, in that we confirmed the Gold King Extension has a gold-bearing dense mineralization structural trend that continues from historical workings into new unexplored ground.

Fire assay analysis, by internationally certified Assayers Canada, of 409 core samples is summarized in the table below.

Significant intervals are as follows.
· Hole CG08-01 contains 2 feet of 0.31 ounces per ton gold and 2.71 ounces per ton silver, which includes 0.8 ft of 0.75 ounces per ton gold and 4.69 ounces per ton silver.
· Hole CG08-02 contains 2.9 ft of 0.10 ounces per ton gold and 0.88 ounces per ton silver, which includes 0.8 ft of 0.33 ounces per ton gold and 1.38 ounces per ton silver.
· Hole CG08-03 contains 5 ft of 0.13 ounces per ton gold and 4.48 ounces per ton silver, which also includes 1 ft of 0.40 ounces per ton gold and 4.29 ounces per ton silver.
All three of these significant intercepts confirm that ‘ore grade’ gold and silver mineralization is present in the newly recognized structures (veins) continuing northeast from the Gold King Mine.

"Gold is where you find it. When you find it follow it wherever it goes." - John Ferguson, Director of Operations