SAN DIEGO, Nov. 3 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. (OTC: EGDD) ("EGI") is pleased to announce: The Company has reached an agreement with Investec Bank Limited ("Investec") to extend the payment date of the existing bridging loan from November 28, 2008 to May 29, 2009. In addition, the Company has signed an Engagement Letter with IBK Capital Corporation of Toronto ("IBK") in which IBK has agreed to undertake its best efforts to assist the Company in raising up to $10 million (USD) in the next three months. In the event that market conditions allow and if IBK is successful, IBK will be paid a commission on the funds raised and IBK will receive common stock purchase warrants. In this event, the net proceeds will be used to fund expenditures on the development of the Lily project and for general and corporate working capital purposes. Finally, the Company has undertaken discussions with a major broker-dealer in New York for the purpose of raising an additional $15 million (USD) to repay the existing Investec bridging loan and to provide additional working capital for the Company's activities including drilling and development. While the Company has not received any commitment from the broker-dealer with respect to raising these additional funds and there can be no assurance that the efforts of IBK Capital or the major broker-dealer will be successful, the Company remains optimistic that if market conditions allow, it may be able to complete one or more planned financial transactions on reasonable terms. FORWARD-LOOKING STATEMENTS 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, goals the estimates and assumptions, 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, the success of the financing plans or other projections will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions or assumptions, 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 likelihood that the assumptions and estimates made, a decline in the price of gold, adverse labour conditions in the mining labour market in South Africa, 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: Source: Eastern Goldfields, Inc.; Derrick Short, Eastern Goldfields, Inc., (619) 497-2555; Renmark Financial Communications Inc.: Jason Roy: ; Christopher Wells: ; Montreal: (514) 939-3989, Fax: (514) 939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021, http://www.renmarkfinancial.com/

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