SAN DIEGO, Feb. 25 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. (Pink Sheets: EGDD) ("EGI") is pleased to announce that Caledonia Mining Corporation ("Caledonia") (TSX: CAL; OTC Bulletin Board: CALVF; AIM: CMCL) accepted on February 21, 2008, an offer for the purchase of the loan account and the entire issued share capital of Barbrook Mines Limited in South Africa for R70 million, to be settled in cash within 60 days of acceptance of the offer. The planned transaction is subject to the following customary conditions which must be fulfilled within 30 days but no longer than 60 days: -- The necessary regulatory approvals being obtained by EGI for the proposed transaction; -- The successful due diligence review by EGI within 30 days of acceptance of this offer of the financial information and business operations of Barbrook. The proposed transaction is to be implemented through one of the EGI group's South African registered subsidiaries. Barbrook Mines is a wholly owned subsidiary of Caledonia located in the Barberton region in South Africa. The mine has been on care and maintenance since November 10, 2006. As at September 30, 2007 Barbrook had a carrying value of $9.4 million on the Caledonia balance sheet. The planned purchase of Barbrook Mines provides EGI with an opportunity to acquire an asset that appears to have existing production infrastructure, significant resources and reserves and is ideally located to realise synergies with the EGI's existing and future planned operations. Further, EGI believes that it has the necessary empowerment qualifications in terms of its South African group structure that will likely allow EGI to convert the old order mining rights held by Barbrook ("the Barbrook Mining Rights") to a new order mining right, which conversion is required to take place during 2008. While EGI believes that it will be successful in securing the necessary regulatory approvals and that the due diligence review will be successful, there can be no assurance that these objectives will be achieved. This press release contains 'forward-looking statements'. These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management wishes to caution the reader that these forward- looking statements, including, but not limited to, statements regarding the Company's plans, the planned acquisition of Barbrook Mines, goals and, the business strategy of the Company and other matters that are not historical facts are only predictions. No assurances can be given that such predictions and the estimates regarding mineral reserves, success of mining plans, or other projections will prove correct or that the anticipated acquisition of Barbrook Mines and future results will be achieved. Actual events or results may differ materially either because one or more predictions prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events. DATASOURCE: Eastern Goldfields, Inc. CONTACT: William M. Aul, +1-619-497-2555, , for Eastern Goldfields, Inc.

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