Eastern Goldfields, Inc. Announces Acceptance o...

SAN DIEGO, February 25 /PRNewswire/ --

    Eastern Goldfields, Inc. (Pink Sheets: EGDD) ("EGI") is pleased to
announce that Caledonia Mining Corporation ("Caledonia") (TSX: CAL; OTC
Bulletin Board: CALVF; AIM: CMCL) accepted on February 21, 2008, an offer for
the purchase of the loan account and the entire issued share capital of
Barbrook Mines Limited in South Africa for R70 million, to be settled in cash
within 60 days of acceptance of the offer. The planned transaction is subject
to the following customary conditions which must be fulfilled within 30 days
but no longer than 60 days:


    
    -- The necessary regulatory approvals being obtained by EGI for the
       proposed transaction;

    -- The successful due diligence review by EGI within 30 days of
       acceptance of this offer of the financial information and business
       operations of Barbrook.





    The proposed transaction is to be implemented through one of the EGI
group's South African registered subsidiaries.



    Barbrook Mines is a wholly owned subsidiary of Caledonia located in the
Barberton region in South Africa. The mine has been on care and maintenance
since November 10, 2006. As at September 30, 2007 Barbrook had a carrying
value of US$9.4 million on the Caledonia balance sheet.



    The planned purchase of Barbrook Mines provides EGI with an opportunity
to acquire an asset that appears to have existing production infrastructure,
significant resources and reserves and is ideally located to realise
synergies with the EGI's existing and future planned operations. Further, EGI
believes that it has the necessary empowerment qualifications in terms of its
South African group structure that will likely allow EGI to convert the old
order mining rights held by Barbrook ("the Barbrook Mining Rights") to a new
order mining right, which conversion is required to take place during 2008.



    While EGI believes that it will be successful in securing the necessary
regulatory approvals and that the due diligence review will be successful,
there can be no assurance that these objectives will be achieved.



    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,' 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, the planned acquisition of Barbrook Mines,
goals 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
acquisition of Barbrook Mines and future results will be achieved. Actual
events or results may differ materially either because one or more
predictions 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 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.