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

LAKEWOOD, Colo. (PRWEB) August 28, 2008

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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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.