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Guyana Goldfields: Preliminary Assessment Report Positive for Aurora Project

August 12, 2008

TORONTO, Canada, August 12 /PRNewswire-FirstCall/ — Guyana Goldfields Inc. (GUY-TSX) reports the completion of a NI43-101 Preliminary Assessment Report on the Company’s 100% owned Aurora Project, Guyana. The independent report was prepared by Snowden Mining Industry Consultants, Brisbane, Australia and is based on an initial resource estimate for the Project published by the Company in November, 2007. The Preliminary Assessment indicates that the Project’s economics are very robust, with potential positive (undiscounted) cash flows varying between US$241.8 million and US$897.8 million depending on various assumed cost, gold price, resource characteristics, and plant size scenarios. (All Figures in U.S. Dollars) The Preliminary Assessment lays out the basis for the development of a combined open pit and underground operation at rates of 2 million and 3 million metric tonnes per annum (MMTPA) or approximately 5,500 and 8,500 tonnes per day respectively. These plants would process approximately 200,000 to 260,000 ounces of contained gold per year over a ten year mine life, with cash costs of US$388 and US$344 per ounce, respectively. Internal rates of return for the Project vary between 37% and 71% based on plant size, operating costs and US$600 and US$800 per ounce gold price assumptions. Further optimization work will be required based upon the changing size and nature of future reported gold resources for the Project.

    Project Economics     Base Case: US$600 Au, 2MMTPA, Inferred Resources Excluded from Open Pit    -----------------------------------------------------------------------                                     NPV    -----------------------------------------------------------------------    GOLD PRICE           UNDISCOUNTED            Discounted           IRR                                                   at 10%    -----------------------------------------------------------------------       US$600               US$241.8              US$108.3            37%       US$800               US$601.7              US$298.3            67%    -----------------------------------------------------------------------      Upside Case: US$600 Au, 3MMTPA, Lower Operating Costs, Inferred                                                           Resources    Included in Open Pit    -----------------------------------------------------------------------                                     NPV    -----------------------------------------------------------------------    GOLD PRICE           UNDISCOUNTED           10% discount           IRR    -----------------------------------------------------------------------       US$600               US$435.9               US$191.3            40%       US$800               US$897.8               US$436.7            71%    -----------------------------------------------------------------------    

The following table summarizes the parameters for the Base Case economic assessment (which excludes inferred gold mineralization from the open pit optimization study though includes inferred mineralization in the underground assessment).

    ------------------------------------------------------------------------    Item                                           Unit               Value    ------------------------------------------------------------------------    Gold Price                              US$ per ounce             600.00    Mining Costs - Open Pit                 US$ per tonne               2.20       - Underground (includes processing)          Rory's Knoll/East Walcott         US$ per tonne              70.00          Aleck Hill                        US$ per tonne              90.00     Processing Costs (open pit only)        US$ per tonne              10.75     Capital Costs                           US$ Millions              159.20      - Initial Capital Costs               US$ Millions               85.00      - Sustaining Capital                  US$ Millions               74.20    Selling Costs                             % of Revenue               5.2    Process Recovery                          % of Au recovered         92.0                                               by plant    ------------------------------------------------------------------------    

The results of the Base Case US$600/oz open pit optimization and underground mining inventory assessments are summarized in the table below. All underground inventories are reported on the basis of being after depletion by open pit mining.

    ------------------------------------------------------------------------                              Mining   Cut-off              Grade  Contained            Project            Cost     Grade     Tonnes     g/t    Ounces                              US$/t     g/t Au      Mt        Au      Koz    ------------------------------------------------------------------------    Aleck Hill Open Pit    Indicated Resource only     2.20      0.67      3.72      2.54       304     Aleck Hill Underground        90      5.00      0.32      7.43        76     Aleck Hill Total                                4.04      2.92       380     Rory's Knoll Open Pit    Indicated Resource only     2.20      0.67      6.08      2.80       546     East Walcott Underground      70      4.00      0.50      5.99        96     Rory's Knoll from base of     $600/oz Whittle shell        70      5.00      5.33      6.08     1,042     Rory's Knoll/East Walcott    Total                                          11.91      4.40     1,684     Total all Projects                            15.954      4.03     2,064    ------------------------------------------------------------------------    

The tabulated mining inventories are at a scoping study level only and are based on assumed costs and modifying factors. The inventories will change as a result of detailed design and cost estimation work in further studies as detailed practical mining shapes and designs have not been applied.

The open pit inventories have been subject to validation as practical and not warranting any further design considerations for the purpose of this scoping study.

The potential mining inventories assessed include consideration of the inferred resources in the underground optimization, and are not mineral reserves as provided for in the Canadian National Instrument (NI 43-101). It should not be assumed that any or all of the mineral resources at Aurora will ultimately be converted into mineral reserves.

The study also examined the economic viability of a larger plant with a capacity of 3 MMTPA, lower mining costs and including inferred resources in the open pit optimization. The “upside” case uses parameters summarized below.

    ------------------------------------------------------------------------    Item                                           Unit               Value    ------------------------------------------------------------------------    Gold Price                              US$ per ounce             600.00    Mining Costs - Open Pit                 US$ per tonne               1.50       - Underground (includes processing)          Rory's Knoll/East Walcott         US$ per tonne              50.00          Aleck Hill                        US$ per tonne              90.00     Processing Costs (open pit only)        US$ per tonne              10.75     Capital Costs                           US$ Millions              185.30      - Initial Capital Costs               US$ Millions              108.40      - Sustaining Capital                  US$ Millions               76.90    Selling Costs                             % of Revenue               5.2    Process Recovery                          % of Au recovered         92.0    ------------------------------------------------------------------------    

The results of the upside case US$600/oz open pit optimization and underground mining inventory assessments are summarized below. All underground inventories are reported on the basis of being after depletion by open pit mining.

    ------------------------------------------------------------------------                                                  Tonnes           Contained                              Mining   Cut-off   (Metric    Grade   Ounces             Project           Cost     Grade    Millions)   g/t (Thousands)                              US$/t     g/t Au      Mt        Au       Oz    ------------------------------------------------------------------------    Aleck Hill Open Pit    Indicated Resource only     1.50      0.67      5.28      2.37       403     Aleck Hill Underground        90      5.00      0.19      7.49        45     Aleck Hill Total                                5.47      2.55       448     Rory's Knoll Open Pit    Indicated and Inferred     Resource                   1.50      0.67      9.83      2.82       892     East Walcott Underground      50      4.00      0.33      5.60        59     Rory's Knoll underground     (from base of US$600/oz     US$1.50t open pit     Whittle shell)               50      4.00      7.09      5.49     1,251     Rory's Knoll/East Walcott    Total                                          17.25      3.97     2,202     Total all Projects                             22.72      3.63     2,650    ------------------------------------------------------------------------     The tables below summarize the two plant and cost scenarios, calculated    at both US$600 and US$800 per ounce Au.     2 MMTPA Production Scenario    ------------------------------------------------------------------------                                         Average  Opera-  Cash        I.R.R.                                          Mined   ting    Flow          %                                          Grade   Cash   ($Millions)                 Average  Opera-          (g/t    Costs                  Annual   ting    Cut     Au)     per   ----------------                  Produc- Costs/   Off    (open   Ounce  Undis-  NPV Dis-    Gold   Mine    tion  Resource Grades   Pit,   inclu- counted counted    Price  Life    (OZ/   Assump-  g/t    Under-  ding            at 10%    $/OZ  (years) Years)   tion   Au(1)  ground) Royalty           P.a.    ------------------------------------------------------------------------    US$600  10   206,000   BASE    0.67   2.70    387.56   241.8   108.3  37                                   5.00                                   4.00   6.14                                   5.00    ------------------------------------------------------------------------    US$800  10   206,000   BASE    0.67    2.7    387.56   601.7   298.3  67                                   5.00                                   4.00   6.14                                   5.00    ------------------------------------------------------------------------      3 MMTPA Production Scenario    ------------------------------------------------------------------------                                         Average  Opera-  Cash        I.R.R.                                          Mined   ting    Flow          %                                          Grade   Cash   (millions US$)                 Average  Opera-          (g/t    Costs                  Annual   ting    Cut     Au)     per   ----------------                  Produc- Costs/   Off    (open   Ounce  Undis-  NPV Dis-    Gold   Mine    tion  Resource Grades   Pit,   inclu- counted counted    Price  Life    (OZ/   Assump-  g/t    Under-  ding            at 10%    $/OZ  (years) Years)   tion   Au(1)  ground) Royalty           P.a.    ------------------------------------------------------------------------    US$600  10   264,000   UPSIDE  0.67   2.66    343.87   435.9   191.3  40                                   5.00                                   4.00   5.54                                   4.00    ------------------------------------------------------------------------    US$800  10   264,000   UPSIDE  0.67   2.66    343.87   897.8   436.7  71                                   5.00                                   4.00   5.54                                   4.00    ------------------------------------------------------------------------    

(1) Cut off grades for open pits and underground at Aleck Hill, East Walcott and Rory’s Knoll respectively. >>

“It can be concluded that there is good potential for a materially profitable and robust Project to be established at Aurora. An open pit operation is potentially viable in its own right, and the potential to add value by exploring the deeper resources by underground methods is considerable.” (Snowden Report)

The Company is currently conducting advanced stage studies on the site selection and feasibility of the construction of a hydroelectric facility for the Project. Preliminary capital costs for the Project are not yet available but initial indications suggest this facility may lower operating costs significantly and thus further enhance the economics of the Aurora Project. The bankable feasibility study for the Project, expected to be initiated during the third quarter of this year, will encompass the hydroelectric option for the Project.

An updated resource estimate for the Project is currently being calculated which will include an additional 162 drill holes totaling 43,000 meters. An updated scoping study will assess the economics of any additional resources as a result of this work, while further exploration and geotechnical work continues on the Project.

“The report is a “preliminary assessment” (NI-43-101) and is not intended to satisfy the requirements of a “preliminary feasibility study” or “feasibility study” (CIM 2005). Therefore the mining inventories reported in this assessment are not Mineral Reserves, and there is no certainty that all or part of the reported mining inventories will eventually be converted to Mineral Reserves.” (Snowden Report)

President and CEO Patrick Sheridan states “we are extremely encouraged by the initial findings of the assessment. The Aurora Project, with high grade open pits and a robust underground mining scenario, has the potential to be a world class mine with quick payback of initial capital and high profit margins. We will move aggressively to move the Project to bankable feasibility after the updated resource and scoping studies are made public. In the meantime exploration work continues on both the Aurora and Aranka areas.”

Peter Myers B.E.(HONS) (Mining), MAusIMM Divisional Manager Snowden Mining Industry Consultants is the qualified person responsible for supervising the preparation of the preliminary assessment including the cost estimates and financial analysis.

Mr. D. K. Mukhopadhyay, MAusIMM, Senior Mineral Resource Geologist of Micon International Co Limited, is the qualified person responsible for the preparation of the mineral resource estimates as previously filed on Sedar on November 23, 2007.

About Guyana Goldfields:

Guyana Goldfields Inc is a Canadian based mineral exploration Company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana, and northern Brazil.

Alexander Po P.Geo is the qualified person for reviewing and approving this press release. The Company holds advanced exploration Projects in various stages of development and has been operating in Guyana continuously since 1996.

The Company currently has approximately (CDN) $17 million in cash and no debt.

For further information: Information is available on the Company’s website at http://www.guygold.com/ and on http://www.sedar.com/ and through the Company’s offices at: John Patrick Sheridan, President/CEO, Suite 1205-141 Adelaide St. W., Toronto, ON, Canada, M5H 3L5, Phone: +1-416-628-5936, Fax: +1-416-628-5935, info@guygold.com; Peter Myers, Divisional Manager, Snowden, T +61(0)7-3231-3804, F +61(0)7-3211-9815, M +61(0)403-888-384, Level 15, 300 Adelaide Street, Brisbane, QLD 4000, Australia

Guyana Goldfields Inc.

CONTACT: For further information contact the Company’s offices at: JohnPatrick Sheridan, President/CEO, Suite 1205-141 Adelaide St. W., Toronto, ON,Canada, M5H 3L5, Phone: +1-416-628-5936, Fax: +1-416-628-5935,info@guygold.com; Peter Myers, Divisional Manager, Snowden, T+61(0)7-3231-3804, F +61(0)7-3211-9815, M +61(0)403-888-384, Level 15, 300Adelaide Street, Brisbane, QLD 4000, Australia