Consolidated Goldfields Corporation (PINK SHEETS:CDGF) is pleased to announce that the Company has initiated its Phase 2 diamond drill program at the Cahuilla gold-silver project in Imperial County, California. The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple high grade veins that occur within an extensive envelope of disseminated gold-silver mineralization.

The Company has engaged Sierra Madre Exploration Drilling Company who has recently commenced the core hole program to drill approximately 1,500 feet (500 meters). The purpose of these drill holes will focus on delineating the surface dimensions of the outcropping sheeted quartz vein on High Grade Hill and down dip extensions with a series of fenced core holes to develop continuity and increase the precious metal resources for a new NI 43-101, which is currently in progress. This program is expanding upon the portable drill program performed in January 2011 (reference our press release dated March 1st, 2011 for the results).

Core from the current drill program will be cut in half as each hole is completed and samples will be delivered to Inspectorate Laboratory in Reno, Nevada with assay results to follow. In addition to the currently approved and permitted 200 drill holes (reference our press release dated April 7th, 2011), we have recently finalized and submitted a permit expansion plan to authorize an additional 200 holes at Cahuilla. The Company anticipates that approval of the additional 200 drill holes will be obtained in the second half of 2011 and as a result, 400 total holes will be drill-ready for 2011 and 2012.

Consolidated Goldfields (CDGF.PK) and Teras Resources, Inc. (TRA.V) are also planning to initiate a substantial reverse circulation and core drill program later this year that will test many other high-grade veins that have been intersected throughout the project area. In addition, reverse circulation drilling will focus on the development and expansion of disseminated mineralization that was defined by historic drilling to enhance the existing 856,000 ounce gold resource as calculated by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1996.

The primary objective of the Company is to develop the existing gold resource into a minable reserve to initially begin underground mining operations of the high grade gold-silver veins. Consolidated will then focus on expanding the historical mineral model to substantially increase high grade gold-silver resources and evaluate the development of an extensive open pit mining operation.

In addition, Consolidated Goldfields has launched a newly designed website and more information can be obtained by visiting www.consolidatedgold.com.

Thomas E. Callicrate B.Sc., Professional Geologist is the company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Callicrate has reviewed and verified the technical information contained in this news release.

Certain information contained in this news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections. However, such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intent or obligation to update publicly any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.