The Gilman Gold Prospect consists of 19 contiguous, unpatented mineral claims covering approximately 390 acres over the eastern flank of the Toiyabe Range, located in Lander County in the State of Nevada, 28 kilometers south of Austin. The town of Austin is a historic mining region dating back to the early Nevada gold rush. Austin and the legendary Battle Mountain region, both in Lander County, span one of the most productive gold mining zones in the United States. The area has hosted several significant gold deposits, including the Cortez Mine, which Placer Dome has estimated the proven and probable mineral reserves to be 12.7 million ounces of gold, as of the end of last year.

To the south 115 kilometers is the Tonopah district, which has historically been one of the State's most productive gold mining regions, and dates back to 1900. Round Mountain, situated 50 kilometers to the south of the Gilman Gold Prospect, has produced more than 5 million ounces of gold to date. The Manhattan gold district, 60 kilometers to the south of the Gilman Gold Prospect, has also been a significant gold producer.

"The Gilman Gold Prospect is an exciting mineral exploration property, in an area which we believe to be one of the highest-profile mineral regions in Nevada," said Donald Neal, President and CEO.

Completion of the transaction is subject to certain conditions. Terms of the transaction are disclosed in the Company's EDGAR filings.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in American Goldfields filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.