Colorado Goldfields Commences Drilling at Mogul Mine

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Colorado Goldfields Inc. (OTCBB: CGFI) commenced drilling at its Mogul Mine Project in San Juan County, Colorado. CGFI will drill multiple holes into various geologic zones to verify potentially recoverable gold and silver and to determine exactly where mining will yield the highest production.

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Colorado Goldfields Inc.'s company Longyear 34 drill is drilling to intercept the Mogul-Brenneman-Washington vein on the Company controlled Mogul property. The objective of this drilling is to extend the Mogul base metal rich (with some gold and silver) below the old workings. It is anticipated that a 43-101 compliant resource can be indicated from this drilling coupled with historic data.

The Mogul Mine is situated on property that is located in the heart of the San Juan County gold fields and proven gold producing ground, 8 miles from Silverton.

The Mogul Mine is a high-grade zinc/lead/silver property that adjoins both the Gold King Mine and the Sunnyside Mine. The property was active from 1901-1909 as a precious metals mine, and has not had the benefit of exploration activity in modern times. The Mogul Mine has the potential to host a considerable tonnage of ore, and is the continuation of the George Washington vein of the Sunnyside Mine (Kinross Gold), which accounted for a large part of Sunnyside's base metal production. The historic ore grade from the Mogul is approximately 6.5% zinc, 4% lead, 0.75% copper and varied precious metal content. Vein widths of up to 50 feet have been reported and an average approximate width of 8 to 10 feet appears on the surface.

The purpose of this drilling, as well as the previously announced drilling at the Company's Gold King Mine, is to verify and expand the historic delineated tonnage at the property to N.I. 43-101 standards.

Drilling commenced July 19, 2008.

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 500 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.

Notice regarding forward-looking statements

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.

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Stephen Guyer
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