Eastern Goldfields Concludes the Purchase of th...

SAN DIEGO, June 3 /PRNewswire/ --

    Eastern Goldfields, Inc. (Pink Sheets: EGDD) ("EGI") is pleased to
announce that the purchase of Barbrook Mines Limited by its South African
wholly owned subsidiary, Eastern Goldfields SA (Pty) Ltd ("EGSA"), from
Caledonia Mining Corporation ("Caledonia") (TSX: CAL; OTC Bulletin Board:
CALVF; AIM: CMCL) was concluded on May 30, 2008. EGSA has paid approximately
US$9.3 million in full settlement for the entire share capital and loan
claims of Barbrook Mines Limited.



    The purchase of Barbrook Mines provides EGI Group with an existing
production infrastructure and is ideally located which may provide synergies
with EGI's existing and future operations. The Mineral Resources at Barbrook
bring the group's resource base to an estimated 4.2 million ounces.



    EGI President Mike McChesney stated, "We are delighted to close this
acquisition which adds substantially to our long term growth in gold
production. This transaction is consistent with EGI's continuing strategy in
building the company and we believe that it will create significant value for
its shareholders."



    About EGI: EGI is a growing company engaged in the mining, exploration
and acquisition of gold properties in some of Southern Africa's most
prospective regions.


FORWARD-LOOKING STATEMENTS

    This press release contains 'forward-looking statements'. These are
statements concerning plans, objectives, goals, strategies, expectations,
estimates, intentions, projections, developments, future events, or
performance, underlying (expressed or implied) assumptions and other
statements that are other than historical facts. In some cases
forward-looking statements can be identified by the use of
forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,'
or 'anticipates,' 'estimates,' or the negative of these words or other
variations of these words or comparable words, or by discussions of plans or
strategy that involve risks and uncertainties. Management wishes to caution
the reader that these forward-looking statements, including, but not limited
to, statements regarding the Company's plans, goals the estimates and
assumptions, and the business strategy of the Company and other matters that
are not historical facts are only predictions. No assurances can be given
that such predictions and the estimates regarding mineral reserves, success
of mining plans, or other projections will prove correct or that the
anticipated future results will be achieved. Actual events or results may
differ materially either because one or more predictions or assumptions,
prove to be erroneous or as a result of other risks facing the company.
Forward-looking statements should be read in light of the cautionary
statements and risks that include, but are not limited to, the risks
associated with a small company, the likelihood that the assumptions and
estimates made, a decline in the price of gold, adverse labor conditions in
the mining labor market in South Africa, the intense competition the company
faces from others, and technological changes. Any one or more of these or
other risks could cause actual results to differ materially from the future
results indicated, expressed, or implied in such forward-looking statements.
We undertake no obligation to update or revise any forward-looking statement
to reflect events, circumstances, or new information after the date of this
press release or to reflect the occurrence of unanticipated or other
subsequent events.