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European Goldfields Limited

May 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

European Goldfields Limited (EGU; 167p), with gold assets in Romania and Greece, made a low profile AIM debut last month following its introduction from the Toronto Ventures Exchange. Established in 2000 as a Yukon corporate under Canadian jurisdiction, EGU was originally a subsidiary of NASDAQ-listed Gabriel Resources.  Gabriel (which incidentally is controlled by Frank Timis of Regal Petroleum fame) had felt that the assets, although only 45km from their other operations in Romania, were at too early a stage of development and were therefore divested into a separate company.   But the Romanian assets pale in comparison to the Greek mines which have subsequently been acquired. That was in February when EGU bought 30% of ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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