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CGFIA (MEGA) NEWS OUT

Press Release Source: Colorado Goldfields Inc. On Wednesday May 18, 2011, 8:00 am


LAKEWOOD, CO--(Marketwire - 05/18/11) - Colorado Goldfields Inc. (OTCQB: CGFIA) (Pinksheets:CGFIA - News) announces that on May 16, 2011 the Company has entered into a Purchase Agreement to acquire the Silver Wing Mine. The properties consist of 10 patented mining claims across 70 acres in San Juan County in southwestern Colorado known as the Silver Wing Mine.

"A thorough study of geological structures, past production, core drilling and extensive underground sampling records indicates that the total resource of the Silver Wing Mine could exceed $200 million with approximately 80% of the resource value composed of silver and copper minerals," stated Lee Rice, President & CEO for Colorado Goldfields.

The mine's poly-metallic ore contains recoverable metal values in gold, silver, lead, copper and zinc. Colorado Goldfields will develop a mining and milling operation and produce approximately 14,500 tons annually of gold, silver, copper, lead and zinc concentrates. After 1-year of ramp up work, production could reach 180 tons per day with full production of 360 tons per day achieved after two years.

The initial ore discovery and location for the first Silver Wing Mine was made in 1874 on the Silver Wing claim itself. All ore production from early operations (1874 through 1909) was based on silver values. The early ore was so rich that it was direct-shipped to smelters on pack mules over mountain passes in excess of 12,500 ft. high.
In 1904 a railroad siding was built to the mine and lower grade ore was direct shipped to a smelter in Silverton. The mine was shut down in 1909 due to litigation. The last production from the Silver Wing Mine was between 1962 and 1965 when the ore was milled at the Pride of the West mill. Production ceased due to a prolonged smelter strike in 1965. Prior to 1900, a gold mine was considered viable only if the ore ran 1.0 ounce of gold or gold equivalent in silver, or better; recovery methods today are far more efficient.

Colorado Goldfields will acquire the properties in exchange for 2-year restricted Class A Common Stock valued at $1.5 million, a 5% Net Smelter Royalty, and cash payments over time totaling $300,000.

"The acquisition of the Silver Wing Mine accomplishes two very significant things for Colorado Goldfields -- expands and diversifies the Company's portfolio of metals (especially into silver and copper), to swiftly capitalize on changing metals prices, and guarantees an immediate source of continuing feed stock for the Pride of the West Mill," stated Stephen Guyer, CFO for Colorado Goldfields.

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About Colorado Goldfields Inc.
Colorado Goldfields Inc. (OTCQB: CGFIA) (Pinksheets:CGFIA - News) (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 discoveries. 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.

The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.