Colorado Goldfields Inc.initiated two projects to assess alternative water treatment technologies in the Cement Creek watershed of San Juan County, Colorado, one of which is in conjunction with the U.S. Environmental Protection Agency (EPA) and the U.S. Bureau of Land Management. These projects and our pursuit of green energy sources for our sites demonstrate our environmental stewardship and intent to decrease future production costs.

One project tests the Rotating Cylinder Treatment System(TM) (RCTS) at a proposed district-scale water treatment facility near Gladstone, Colorado. The U.S. Government is providing the bulk of the project's funding. Testing is being performed by Ionic Water Technologies, Inc. of Nevada. CGFI is providing test work locations, equipment, water containment vessels, and personnel.

Separately, CGFI will be testing an Ionic State Modification (ISM) system, developed by Blue Sky Water Treatment Technologies, Inc., to potentially treat the water discharge at the Company's Gold King site.

CGFI's CEO Todd Hennis states, "If the Blue Sky ISM system works for the Gold King 7 level discharge, it will be a cost-effective solution for us and potentially addresses numerous discharges by other parties in the Cement Creek watershed. The Blue Sky ISM system should generate significantly less metal sludge than conventional treatment systems, or even the RCTS technology, and can be operated with minimal personnel. The Blue Sky ISM technology also does not require large water treatment settling ponds, thereby reducing the environmental footprint on the land and reducing our production costs."

Ms. Cokes, CGFI Manager of Environmental Affairs, added, "We are committed to good stewardship of the environment. We have great respect for the beauty of southwestern Colorado and the Silverton area, and we are dedicated to preserving it. The test work using both the RCTS(TM) technology and the ISM reactor technology shows our commitment to environmental excellence and our dedication to achieving a solution to the water quality issues in the Cement Creek watershed."

About Colorado Goldfields, Inc.

Colorado Goldfields Inc.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 discovery. 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.