Colorado Goldfields Inc. Restates Management’s Commitment to The Pride of the West Mill

“We have received many inquiries from shareholders and investors interested in our November 11, 2008 announcement of XRF analysis gold grades ranging from .28-3.39 oz/ton, and silver grades of 1.46 – 30.97 oz/ton. Shareholders and investors want to understand how our Mill facility relates to our recent gold and silver discovery announcements and the future of Colorado Goldfields’ operations,” stated Company CFO Stephen Guyer.

Colorado Goldfields purchased the Mill in June 2007. Third-party estimates of market value place the value of the Mill at between $6 million and $8 million. The Pride of the West Mill is within six miles of all Colorado Goldfields’ Mines. It is the only Mill in the 6,000 acre Silverton Mining District capable of mill operations. Management has already received inquires from other mining firms for custom ore processing.

Although the Mill has been inactive since 1992, Company management remains dedicated to bringing the facility forward to full production.

The Pride of the West Mill is located on approximately 120 acres of patented mining claims in San Juan County. The facility consists of a main mill building with equipment for gravity and flotation concentration of ores, an office/shop building, a laboratory building, a cyanide process plant building, a truck scale building and other support buildings. The Mill also has the ability to treat ores with cyanide solution to recover precious metals. An assay lab is on the property, as well as an office/shop building, dormitory for workers, and associated support buildings.

“Owning The Pride of the West Mill is a huge differential advantage for Colorado Goldfields,” said John Ferguson, Director of Operations. “Once reactivated it will allow us to contract for processing potential ores from nearby mining firms, while ramping up our own operations, which can be a fast source of revenue. Furthermore, an on-site assay laboratory will provide immediate results, rather than having to wait for outside labs.”

For a complete description, pictures and diagrams of The Pride of the West Mill, visit: http://www.cologold.com/s/HowardsvilleMill.asp.

Colorado Goldfields’ Dividend:

On Friday, October 17, 2008, the Company’s Board of Directors authorized a 30% (thirty percent) stock dividend (payable in additional shares of common stock), of the Company’s Common Stock. The Stock Dividend Pay Date to stockholders will be on Wednesday, November 26, 2008. The Company reminds shareholders that they need to be a shareholder on or before the close of trading on November 26, 2008 to receive the dividend.