LONG TERM INCENTIVE PLAN UPDATE

WHITEHORSE, Oct 8 /CNW/ - European Goldfields Limited (TSX / AIM: EGU) ("European Goldfields" or the "Company") reports that on 1 October 2010 as part of the continued development of its Long Term Incentive Plan, the Company's board of directors ("Board") approved the grant of 2,349,000 restricted share units ("RSUs") under the Company's Equity Participation Plan, to various directors, officers and senior employees of the Company and its subsidiaries. The vesting of the RSUs is subject to the achievement of certain criteria designed to align the long term interests of directors and employees with those of shareholders. The Board also approved the grant of a further 651,000 RSUs to be made to future employees recruited to fill a number of critical roles within the business. 

The Board approval permitted the directors to elect to take the RSUs as DPUs under the terms of the Company's Deferred Phantom Unit ("DPU") Plan and the directors have elected to receive DPUs as follows:

Name of Director	Number of DPUs granted
Martyn Konig	675,000
Mark Rachovides	450,000
Timothy Morgan-Wynne	450,000
Alfred Vinton	33,000
Bruce Burrows	33,000
Jeff O'Leary	33,000

About European Goldfields  

European Goldfields is a developer-producer with globally significant gold reserves located within the European Union. The Company generates cash flow from its 95% owned Stratoni operation, a high grade lead/zinc/silver mine in North-Eastern Greece. European Goldfields will evolve into a mid tier producer through responsible development of its project pipeline of gold and base metal deposits at Skouries and Olympias in Greece and Certej in Romania. The Company plans future growth through development of its highly prospective exploration portfolio in Greece, Romania and Turkey.

For further information please see the Company's website at www.egoldfields.com

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