Colorado Goldfields Updates Shareholders on 2009 Drilling Program, Shareholder Conference Call, Acquisitions, and CFO Compensation

LAKEWOOD, CO--(Marketwire - August 7, 2009) - Colorado Goldfields Inc. CGFIA in response to several inquiries by our loyal and valued shareholders, we are providing the following updates.

Exploration drilling activities during the 2009 season have been understandably challenged by a restrictive financing marketplace. The Company has pursued many avenues of funding for our drilling program and we continue to evaluate alternatives presently available for junior mining companies. On the other hand and as described in recent press releases, we are extremely pleased with the progress made toward re-activating our Pride of the West Mill. Moreover, financing for the Mill looks very promising at this time.

In our effort to complement the Company's continuing financing search, we believe there is "strength in numbers" and thus, we are constantly evaluating acquisition opportunities that will bring value and match up to our goals as a company. This pursuit has involved management and our geologist team in the intense review and financial modeling of multiple potential acquisition targets. We anticipate an announcement in this realm shortly.

The investor conference call originally scheduled for the end of April has been postponed. We should be in a position to reschedule sometime during the 4th quarter of this year.

As reported in our recent SEC Form 8-K filed on August 4, 2009, the Company entered into a new employment agreement with our Chief Financial Officer, C. Stephen Guyer, effective July 1, 2009. As a consequence thereof on August 4, 2009 Mr. Guyer was awarded 26,597,500 Class A Common Shares. Of those shares, 20,000,000 Class A common shares were issued as a bonus for the one year renewal of Mr. Guyer's Executive Employment Contract. By agreement with Mr. Guyer, the 20,000,000 Class A common shares are restricted from sale for a period of 2 years from the date of issuance except in the event of his death, or a change of control as defined in the Executive Employment Agreement.

Furthermore, as of August 6, 2009, sales of Class A common shares by Mr. Guyer have met the limit specified under Rule 144. Regarding the balance of approximately 6.6 million Class A common shares awarded to Mr. Guyer, these shares shall not be sold until November 6, 2009.

With no staff or assistant, Mr. Guyer's work schedule as Chief Financial Officer of Colorado Goldfields Inc. begins at 5:30am MDT Monday through Friday and three weekends per month to fulfill his duties which include: accounts payable, vendor relations, banking relations, financial structure analysis, pro forma financial modeling, research, investor relations, preparation for Board of Director meetings, preparation of all requisite SEC compliance filings, website maintenance, audio video production, contract review, overseeing the audit function, capital raising, and maintaining proper and productive relationships with the Bureau of Land Management, Environmental Protection Agency, the Colorado Division of Mining Reclamation and Safety, Colorado Department of Revenue, Corporate Stock Transfer, Depository Trust & Clearing Corporation, and other state and federal regulatory authorities. Mr. Guyer routinely performs a 15 hour day, 28 days per month in completion of his duties on behalf of the Company.

As stated by Lee Rice, CEO Colorado Goldfields, "We are extremely grateful for the dedication, time and effort Stephen Guyer has given and continues to commit to our Company. As a Board we are 100% supportive of Mr. Guyer who has performed an outstanding job in maintaining the Company's operations and administration. Moreover, Mr. Guyer's invaluable service should be appreciated by all our shareholders."

Mr. Guyer has received zero cash salary since September 2008. Proceeds from the sale of stock owned by Mr. Guyer in 2009 total $26,400.

About Colorado Goldfields Inc.

Colorado Goldfields Inc. CGFIA (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.

Notice regarding forward-looking statements

This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.