Colombia Goldfields Ltd. / CGDF.OB

Marmato Mountain Update: Independent Assessment Completed Ahead of Schedule – Buyout Negotiations Advancing at a Rapid Pace

Colombia Goldfields Notifies Investcol of Intention to Increase Interest in Project to 50%

Medellin, Colombia - March 24th, 2006 - Colombia Goldfields Ltd. (OTC BB: CGDF) is pleased to announce that its efforts to consolidate 264 mines on Marmato Mountain are ahead of schedule and progressing rapidly. An independent assessment of the Marmato Mountain Development Project has been completed and a formal report has been compiled allowing the consolidation process to advance.

To compile the necessary data, Colombia Goldfields retained Dr. Stewart D. Redwood, the former chief geologist for AngloGold’s South American operations, along with Geominas Ltd. of Medellin, Colombia to conduct an exhaustive analysis of the project. Dr. Redwood is a Fellow of The Institute of Materials, Minerals and Mining (FIMMM), a Fellow of the Geological Society of London (FGS) and a Fellow of the Society of Economic Geologists.

The evaluation included the completion of underground maps and sampling and assaying of exposed veins, footwalls and hanging walls in each mine. In addition the company plotted the extent of each mining claim to determine the area remaining for exploitation. Dr. Redwood also evaluated the level of production and operating costs of several small processing plants at Marmato which process the ore excavated by local miners.

Harry Hopmeyer, Chairman of Colombia Goldfields stated, “When I was appointed Chairman of Colombia Goldfields the company had already optioned or owned through its subsidiaries 34 of the 264 mines which comprise the Marmato Mountain Development Project. Subsequently, we signed an exclusive option agreement in December to acquire 84 of the largest and richest mines in the district and we successfully established a legal framework through which the remaining 146 mines could be acquired.”

Hopmeyer continued, “We determined that before we could realistically purchase the remaining 230 mines we needed to complete additional due diligence and determine the legal standing of each mine and its resource potential. Armed with that information, fair deals could be struck with each mine owner, limiting the margin for error of overpaying for lower quality mines. We now have that information and intend to increase our interest in the project from 25% to 50% by providing an additional US$5 million to Investcol, thereby accelerating the buyout process.”

The company has notified Investcol of its intention to increase its ownership in the project from 25% to 50%. Under the terms of an agreement signed on January 16th, 2006 (see release - Colombia Goldfields Signs US$20.2 Million Definitive Purchase Agreement to Acquire Interests in Marmato Mountain), the company can increase its interest in the project to 50% by paying Investcol US$5 million plus issuing two million shares of restricted common stock.

Once the majority of miners' claims are acquired, Colombia Goldfields intends to apply for a master mining license which would include the exploration and mining rights for its Marmato Mountain Development Project. The company then plans to complete a bankable feasibility study, including a full assessment of the five-million-ounce-plus gold resource previously identified, as well as a thorough evaluation of the large sections of Marmato Mountain yet to be examined.

In assessing the progress that has been made, newly appointed CEO Randy Martin made the following comment: “It was an easy decision to join Colombia Goldfields. The company is now well positioned to consolidate Marmato Mountain, and has the potential to develop a truly world-class precious metals deposit. I’m familiar with the process, having been through it, and I know the payoff for all concerned - from shareholders, to stakeholders to company officers – can be truly remarkable.”

A 1998 scoping study identified the presence of five-million-ounces-plus of gold within the company’s area of development at Marmato. Specifically, the study identified an inferred resource of 56 million tones grading 1.06 g/t Au for 1.9 million ounces in the Zona Alta, plus an additional 150 million tones grading 1.07 g/t Au for a total of 5.2 million ounces for the whole deposit. Since the scoping study delineating this deposit was completed by a previous operator, and was not 43-101 qualified, a qualified feasibility study will need to be completed before a reliable resource estimate can be made. However, geological modeling indicates, and management believes there is a high degree of probability that many more ounces of gold is yet to be unearthed which could substantially increase the size of the deposit.

Irgendwelche Veränderungen am goldenen Berg?

Wurden wohl einige ungeduldig. Colombia steht nach dem Financing ausgezeichnet dar. Der Kursrutsch kam nicht aufgrund von schlechten News. Ein paar Leute kennen wohl nicht den Unterschied zwischen Boliven und Kolumbien.