Eldorado Reports Year-End Financial and Operational Results: Record Earnings and Production in 2011

Earnings per share $0.58

Cash Flow per share from operating activities before changes in non-cash working capital $0.91(3)

(all figures in United States dollars unless otherwise noted)

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire -02/24/12)- Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (TSX: ELD.TO - News)(NYSE: EGO - News)(ASX: EAU.AX - News) ("Eldorado" the "Company" or "we"), is pleased to report on the Company's financial and operational results for the year ended December 31, 2011. Eldorado reported profit attributable to shareholders of the Company of $318.7 million for the year ended December 31, 2011.

"During 2011, the Company achieved record earnings from its gold mining operations on sales of 658,919 ounces of gold at an average realized gold price of $1,581 per ounce and average cash operating costs of $405 per ounce. As a result of this strong performance, the Company generated $502.1 million in cash during the year from operating activities, paid Cdn$0.11 per share in dividends to Company shareholders and paid $92.4 million in debt, net of additional borrowings. During the year we also commenced the start-up of Efemcukuru in Turkey, received a key permit in Turkey to expand Kisladag, and announced our plan to acquire European Goldfields Limited. The completion of the transaction will significantly increase the Company's gold reserves," said Paul Wright, President and CEO of Eldorado Gold.

2011 Highlights

 

--  Gold production increased 4% (658,652 ounces - 2011; 632,539 ounces -
    2010).
--  Gold revenues increased 33% ($1,042.1 million - 2011; $782.8 million -
    2010).
--  Basic earnings per share increased 41% ($0.58 per share - 2011; $0.41
    per share - 2010).
--  Cash generated from operating activities before changes in non-cash
    working capital(3) increased 40% ($502.1 million - 2011; $357.9 million
    - 2010).
--  The Company paid dividends totalling Cdn$0.11 per share compared to
    Cdn$0.05 per share in 2010.
--  The Company entered into a $280.0 million revolving credit facility with
    HSBC and a syndicate of four other banks (see page 17 of Management's
    Discussion and Analysis for details related to the revolving credit
    facility).
--  The Company completed Kisladag's Phase III expansion which increased
    production capacity at the mine by 25%, and announced the results of a
    study validating its intention to further double the mine capacity by
    the third quarter of 2014.
--   The Company entered into an agreement to acquire European Goldfields
    Limited. Shareholders of both the Company and European Goldfields
    Limited approved the transaction on February 21, 2012, and court
    approval was obtained on February 22, 2012.
--  Efemcukuru completed start-up of operations during which it produced
    concentrate containing approximately 20,000 contained ounces of gold.

Summarized Annual Financial Results

----------------------------------------------------------------------------
($millions except as noted)                   2011         2010      2009(1)
----------------------------------------------------------------------------
Revenues(2)                            $   1,098.9  $     791.2  $     358.5
----------------------------------------------------------------------------
Gold sold (ounces)                         658,919      639,949      360,226
----------------------------------------------------------------------------
Average realized gold price ($/ounce)  $     1,581  $     1,223  $       995
----------------------------------------------------------------------------
Earnings from gold mining
 operations(3)                         $     610.8  $     400.7  $     188.2
----------------------------------------------------------------------------
Profit attributable to shareholders
 of the Company                        $     318.7  $     221.0  $     102.4
----------------------------------------------------------------------------
Earnings per share attributable to
 shareholders of the Company - Basic
 ($/share)                             $      0.58  $      0.41  $      0.26
----------------------------------------------------------------------------
Dividends paid - (Cdn$/share)          $      0.11  $      0.05            -
----------------------------------------------------------------------------
Cash flow from operating activities
 before changes in non-cash working
 capital(3)                            $     502.1  $     357.9  $     147.0
----------------------------------------------------------------------------
Cash and cash equivalents              $     393.8  $     314.3  $     265.4
----------------------------------------------------------------------------

(1) Financial results prepared in accordance with CGAAP. (2) Revenues
include proceeds from the sale of iron ore produced by Vila Nova in the
amount of $56.8 million in 2011 ($8.3 million - 2010; $nil - 2009). (3) Non-
IFRS measures. Please see page 15 of our Management's Discussion and
Analysis for the year ended December 31, 2011 for a discussion of these
measures.

Review of Annual Financial Results

Profit attributable to shareholders of the Company for the year ended December 31, 2011 increased to $318.7 million, or $0.58 per share, compared to $221.0 million, or $0.41 per share in 2010. The following main factors impacted our profit for the year as compared to 2010:

 

--  Gold revenues increased $259.2 million, or 33% due to a 29% increase in
    the average realized gold price and a 3% increase in gold sales volume;
    iron ore revenues increased $48.5 million, reflecting the first full
    year of production at Vila Nova
--  Production costs increased $68.5 million, or 25% due to a full year of
    production at Vila Nova ($30.3 million - 2011, $4.3 million - 2010),
    higher operating costs at Kisladag, and higher production taxes at
    Tanjianshan and Jinfeng related to changes in laws governing mining
    taxation
--  Depreciation and amortization increased $15.3 million, or 14% mainly as
    a result of an increase in the depreciation rate at Jinfeng due to a
    reduction in reserves, higher depreciation at White Mountain related to
    higher sales volume, and higher depreciation at Vila Nova due to a full
    year of operation ($4.7 million - 2011, $1.0 million - 2010)
--  Income tax expense increased $78.6 million or 90% due to:

    1) higher taxable income; 2) withholding taxes paid on dividends from
    the Company's Chinese and Turkish subsidiaries; and 3) the impact of the
    weakening of the Turkish lira on the Company's tax asset base in Turkey.
    Tax expense increased approximately $25.6 million ($0.05 per share) year
    over year as a result of the impacts of items 2 and 3 above.

Operations highlights, outlook, and annual updates

Operating highlights and outlook

 

----------------------------------------------------------------------------
                                          2011      2010     2012 outlook(4)
----------------------------------------------------------------------------
Total
Gold ounces produced                   658,652   632,539  730,000 to 775,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       405       382          430 to 450
----------------------------------------------------------------------------
Kisladag
Gold ounces produced                   284,648   274,592  285,000 to 295,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       374       329          385 to 395
----------------------------------------------------------------------------
Tanjianshan
Gold ounces produced                   114,972   113,864  100,000 to 110,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       377       383          445 to 460
----------------------------------------------------------------------------
Jinfeng
Gold ounces produced                   177,757   181,950  120,000 to 125,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       442       425       675 to 695(3)
----------------------------------------------------------------------------
White Mountain
Gold ounces produced                    81,275    62,133    75,000 to 80,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       474       487          535 to 550
----------------------------------------------------------------------------
Efemcukuru
Gold ounces produced                       n/a       n/a  125,000 to 135,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1)                                       n/a       n/a          330 to 350
----------------------------------------------------------------------------
Eastern Dragon
Gold ounces produced                       n/a       n/a    25,000 to 30,000
----------------------------------------------------------------------------
Cash operating costs ($ per ounce)
 (1) (2)                                   n/a       n/a            65 to 80
----------------------------------------------------------------------------
Vila Nova
----------------------------------------------------------------------------
Iron ore tonnes produced               537,958   182,808  560,000 to 600,000
----------------------------------------------------------------------------
Cash operating costs ($ per tonne
 sold) (1)                                  64        41            65 to 75
----------------------------------------------------------------------------

(1) Cash operating costs is a non-GAAP measure. See page 15 of our
Management's Discussion and Analysis for the year ended December 31, 2011
for more information (2) Eastern Dragon cash operating costs are net of
silver by-product credits. (3) Approximately $140/oz are adjustments for the
ore stockpile inventory.

(4) Outlook uses the following assumptions:
                                      Exchange Rates
Gold price: $1,700 per ounce          RMB vs USD 6.20
Iron ore price: $100 per tonne        Euro vs USD 1.40
Silver price: $35 per ounce           YTL vs USD 1.70
Oil price: $100 per barrel            Real vs USD 1.60

Annual updates - Operations

Kisladag

Gold production for 2011 of 284,648 ounces was 4%, or 10,056 ounces higher than 2010. Total tonnes placed on the leach pad per quarter increased as a result of the completion of the Phase III upgrade of the crushing circuit to 12.5 million tonnes per year. Gold inventory levels on the leach pad decreased by 38,940 ounces in 2011 as a result of intermediate leaching, begun in 2010. During 2011 a study was completed confirming the Company's expectation that the average recovery rate of all sulphide ore placed on the leach pad was higher than the feasibility study rate of 60% used in the leach pad inventory estimates since the mine began production. As a result, an adjustment was made to increase the estimated recoverable ounces remaining on the leach pad by 19,495 ounces, using an average recovery rate of 62% for all sulphide ore.

A combination of higher operating costs and a lower grade resulted in a higher average cash operating cost per ounce compared with 2010. Operating costs were higher than 2010 due to higher electricity, reagent, and maintenance costs associated with the higher throughput.

In 2011, a study was completed validating the Company's intention to double the mine capacity by the third quarter of 2014 to 25.0 million tonnes per year as a result of Kisladag's increasing reserves. The expansion would include construction of additional process facilities as well as expansions to the leach pad and waste dumps to handle the higher plant throughput as well as an average of 8.0 million tonnes per year of low grade ore which would be transported directly from the pit to a dedicated run-of-mine (ROM) leach pad. Equipment sizing in the mining fleet would be increased to accommodate the additional ore and waste handling. Subject to receipt of required government permits, completion of the expansion is anticipated by the third quarter of 2014, at an estimated capital cost of $354.0 million.

Tanjianshan

Gold production for 2011 of 114,972 ounces was 1% above, or 1,108 ounces higher than 2010 while tonnes milled and grade were lower than 2010, respectively. Extra tanks were installed during 2011 to increase the retention time of the leach circuit, which in turn improved the average recovery rate year over year from 80.9% to 82.1%. Additionally, flotation concentrate produced in prior years from ore mined from the Qinlongtan pit between 2007 and 2008 was added to the roaster feed; and, "scats", or partially milled "reject" stockpile material reclaimed by using a specialized crusher, was added to the flotation circuits. These two stockpiled materials were responsible for approximately 10,000 ounces of extra production.

For the year, cash operating costs per ounce were 1.6% or $6 per ounce lower than 2010 reflecting higher silver credits as a result of higher silver prices as compared with 2010. Total cash costs per ounce in 2011 were 17% higher than 2010 mainly due to the effect of higher gold prices on royalties, and the imposition of a new tax (ecological compensation fee) levied at a rate of 40RMB per tonne mined.

Jinfeng

Gold production for 2011 of 177,757 ounces was 2%, or 4,193 ounces, lower than 2010. This was mainly due to lower throughput and head grade. These two items were partially offset by an improvement in recovery.

Cash operating costs were 4% higher in 2011 or $17 per ounce reflecting the impact of the decrease in treated head grade and the slightly lower throughput. Total cash costs increased 6% due to the effect of higher gold prices on royalties and production taxes.

A total of 689,737 tonnes of ore was mined from the open pit in 2011 (2010 - 1,432,278 tonnes). Mining of the open pit stopped in the second quarter pending completion of the acquisition of land required for a planned cutback. It is expected that the land purchase will be completed in 2012. A total of 494,422 tonnes of ore were mined from the underground (2010 - 405,015 tonnes). Additionally, a total of 360,806 tonnes of stockpiled ore were fed to the plant.

White Mountain

Gold production for 2011 of 81,275 ounces was 31%, or 19,142 ounces higher than 2010 due to higher throughput and average grade, as well as increased recovery rates. The increase in tonnes was due to an increase in underground working faces as a result of expanded mine development. Recovery at White Mountain is a function of the ore type that is being treated. Approximately 15% of the current orebody is sulphide material and recoveries are significantly lower in this material. During the fourth quarter, a caustic pre-treatment system was commissioned that provides significantly better recoveries in the sulphide material and slightly better recoveries in the oxide material.

Cash operating costs per ounce were 3% lower in 2011 or $13 per ounce as the effect of the increase in head grade and recovery rates was partially offset by higher stope development and backfill costs.

Efemcukuru

Efemcukuru began commissioning operations in June 2011 and treated 112,612 tonnes of ore at 8.21 g/t gold by year end. The operation encountered a number of challenges during commissioning which delayed the transition to full commercial production until December 2011.

Mining operations were impacted by voids encountered as a result of unanticipated prior mine workings. The mine development plan was modified and accelerated during the second half of the year to develop extra working areas to increase production. During commissioning of the processing facilities at Efemcukuru, modifications were made to the tailings handling systems to reach design capacity. Approximately 20,000 ounces of contained gold in concentrate was produced during the year and shipped to Kisladag where a treatment plant was constructed in the second half of 2011 to process Efemcukuru concentrate. The Kisladag concentrate treatment plant began commissioning at the end of 2011 and is expected to treat the concentrate accumulated during commissioning along with normal production so that no stockpile remains at the end of 2012.

Vila Nova

Vila Nova produced 537,958 wet metric tonnes of iron ore at an average grade of 63.9% Fe during 2011. A total of 473,387 dry metric tonnes of iron ore in the form of lump and sinter feed was sold on the spot market during 2011 at an average price of $120 per dry metric tonne. The mine commenced operations in 2010 but due to production and shipping difficulties only recorded sales of iron ore during the fourth quarter of 2010. Production during 2011 reflected a full year of production and matched Company targets.

Annual updates - Development projects

Tocantinzinho

Engineering and permitting activities were conducted during 2011 related to completion of a positive prefeasibility study for Tocantinzinho. The study was based on a 4.4 million tonne per year open pit operation using a combination of flotation and cyanide leach to recover gold from the granite hosted orebody. Capital costs are estimated at $383.5 million, including the infrastructure required to support the project. The average production rate is projected to be 159,000 ounces per year at an average cash cost of $559/ounce.

In addition to the work carried out on the engineering studies, preparations were completed for the Environmental Impact Assessment (EIA) study, which was submitted to the state government in July 2011. Processing of the EIA application within the Brazilian government was delayed during the year due to a jurisdictional dispute between the state and federal governments over responsibility for permitting in the project area. By year end, the jurisdictional dispute was resolved in favour of the state government.

Perama Hill

During 2011, the Company worked closely with the Greek government to advance the processing of the Preliminary Environmental Impact Assessment study (PEIA). Progress was made during the year to move the permitting process forward with the recognition of Perama Hill as a key development project by the Greek government. The Company received PEIA approval in February 2012 and plans to submit the full EIA report in Q1. Eldorado is awaiting joint ministerial approval for the Fast Track process and expects to receive all permits and licenses in 2012. This will be followed by construction of the mine. The Company's public relations efforts continued during 2011, with a focus on maintaining and strengthening relations with the local villages, as well as developing relations with the local and state politicians.

Eastern Dragon

Construction activities were ongoing at the Eastern Dragon project during 2011. During the year, site buildings were enclosed and major mechanical and electrical phases of the plant were completed. In November, construction was suspended pending receipt of permitting required to complete development of the mine. This includes construction on the tailings handling and storage facilities, as well as the open pit and rock dump areas which are now scheduled for completion in 2012, corresponding with final completion of construction and commissioning to the plant in Q3.

Annual updates - Exploration

Exploration drilling in 2011 totalled approximately 120,000 metres at seventeen exploration projects in Turkey, China, Brazil, and Nevada.

Turkey

Kisladag

At Kisladag, over 10,700 metres of diamond drilling were completed in 2011. The drilling focused on planned infrastructure sites for the Phase IV expansion, areas along the periphery of the known deposit, and previously untested conceptual targets. No significant new zones of mineralization were intersected.

Comprehensive soil sampling and a three dimensional induced polarization survey were completed over an area of approximately 20 square kilometres surrounding the deposit, extending the existing survey data that were collected early in the exploration history of the deposit. Results of these programs are being integrated with lithological, alteration, and structural data to define drill targets for potential satellite ore bodies to be tested during 2012.

Efemcukuru

At Efemcukuru, approximately 9,500 metres of exploration drilling were completed during the year on the Kestani Beleni Northwest Extension and the Kokarpinar vein targets. The Kestani Beleni Northwest Extension target underlies a strong gold-in-soil anomaly along strike from the North, Middle, and South ore shoot resources. The 2011 drilling program tested this target area over a strike length of approximately 750 metres to a depth of about 250 metres, and identified a new shallow zone of gold mineralization that remains open downdip. At the Kokarpinar vein, gold values were reported in four out of six drillholes targeting previously untested segments of the vein along strike from and below ore-grade surface samples.

Reconnaissance programs

Drilling campaigns were completed in 2011 at the AS Au-Cu porphyry prospect (760 metres), the Malatya-Hasancelebi IOCG prospect (1,500 metres), the Sayacik porphyry Au prospect (1,770 metres), and the Sizma sediment-hosted gold prospect (3,450 metres). Multiple targets were tested at the AS, Sayacik, and MH projects, but results failed to improve on those from previous drilling campaigns; no further work is planned for these projects. At the Sizma project, the 2011 drilling program outlined a tabular, stratiform zone of anomalous to low-grade gold mineralization within a foliated sandstone/siltstone/mudstone sequence.

Mapping, geochemical sampling, and magnetic survey programs were completed during 2011 at early-stage projects in the Pontide Belt (Dolek and Sebin projects) and at the Atalan project in western Turkey. This work has defined drill targets at all of these projects, which will be tested during 2012.

China

Tanjianshan

The 2011 exploration program at Tanjianshan focused on resource conversion of the 323 Deposit, with approximately 10,300 metres drilled. The drilling confirmed and expanded the previously defined mineralized zones, and will support application for a mining license covering the deposit. Drilling was also completed at the Qinlongtan deeps and Zhongxinshang targets, and reconnaissance sampling and mapping programs were completed in the several areas of the Tanjianshan exploration licenses.

Jinfeng

During 2011, drilling was completed on exploration targets in the Jinfeng district at the Jinluo, Qiaojiang, Da'ao, and Jinfeng 42 license areas, and at the Jinfeng mine proper. Minesite drilling included surface and underground programs with targeted step-outs along the known major mineralized fault zones (F2, F3, F6), infilled gaps in the existing resource model, and tested conceptual targets developed during the year through a detailed reinterpretation of structural controls on mineralization. This program is ongoing, and is supported by positive results to date.

Exploration elsewhere in the district tested soil and outcrop geochemical anomalies associated with mineralized fault zones for Jinfeng-style mineralization (Jinluo, Qiaojiang, Jinfeng 42 license areas), and broad antiformal folds for stratiform mineralization similar to that present at the nearby Shuiyindong gold deposit (Da'ao license). The best results were obtained from mineralized fault zones at the Qiaojiang license area and at the Weiruo prospect in the Jinluo license areas.

White Mountain

Infill and stepout drilling of the White Mountain deposit was completed during the year from both surface and underground drill stations. The surface drilling program expanded the deep ore lens discovered in late 2010 at the northern end of the deposit with two new high grade intercepts. Underground exploration drilling was successful in filling in gaps in the existing resource, and targeted areas of Inferred Resources along the margins of the main deposit.

Elsewhere in the White Mountain district, drilling was completed at the Xiaoshiren and Zhenzhumen prospects. Both prospects represent similar structural/stratigraphic settings to that characterizing the White Mountain deposit. At Xiaoshiren, 4,500 metres of drilling tested targets along strike and down dip from high-grade surface trenches and 2010 drillhole intersections. At the previously undrilled Zhenzhumen prospect, one of the four drillholes completed (1,300 metres total) intersected a high grade, near-surface baritic breccia zone that is texturally and mineralogically similar to the White Mountain orebody, yet occurs at a deeper stratigraphic level.

Brazil

Tocantinzinho

At the Tocantinzinho project, the 2011 exploration program tested targets peripheral to the known deposit defined by soil geochemistry surveys, geophysical surveys (induced polarization, magnetic), and surface exposures of mineralized material. Grid-based auger drilling was employed to further define targets within broad gold-in-soil anomalies prior to drilling. Approximately 17,500 metres were drilled during the year. The best gold intercepts in the program consisted of narrow but high grade zones associated with fault zones or quartz+sulphide veins along the Tocantinzinho Trend southeast of the deposit and beneath garimpo workings south of the deposit. Also in 2011, existing soil surveys were extended into areas west, east, and north of the main deposit. The surveys identified several new targets to be tested in 2012.

Reconnaissance

At the Agua Branca project, 1,532 metres of drilling tested targets at the Carlinho and Camarao Hill zones. At Camarao Hill, drillhole AB46 intersected an interval of 154 m grading 1.1 g/t Au and extended known mineralization 250 metres to the northeast of previous drilling. Based on the results of this drillhole and the exploration potential of the surrounding area, Eldorado exercised its option to earn 100% of the Agua Branca project through a $1.9 million payment to the owner.

West of Tocantinzinho at the Piranhas project, exploration activities completed in 2011 included extending the existing area of soil sampling, and employing grid-based auger drilling to define diamond drilling targets within a broad gold-in-soil anomaly.

Reserves and Resources

Resources in all categories increased 4% compared to our 2010 resource statement while reserves increased 2% compared to our 2010 reserve statement. Reserves at the end of 2011 totalled 19.0 million contained ounces of gold, compared with 18.6 million ounces at the end of 2010. The majority of the reserve increase came from Kisladag and Jinfeng, while decreases at the other operating mines due to production in 2011 were partially offset by newly discovered reserves at these mine sites. Complete mineral reserve and resource data including tonnes, grades and ounces as well as major assumptions and qualified persons responsible for these numbers are shown below in Table 1.

 

Table 1: Eldorado Gold Mineral Reserves and Resources, as of December 2011

Project              Mineral Reserves                  Mineral Resources
----------------------------------------------------------------------------
                                  In-situ                            In-situ
Gold               Tonnes  Grade     Gold             Tonnes  Grade     Gold
                --------------------------         -------------------------
                                   ounces                             ounces
                  (x1000) Au g/t  (x1000)            (x1000) Au g/t  (x1000)
------------------------------------------         -------------------------
Kisladag
Proven            114,955   0.91    3,368 Measured   121,590   0.88    3,436
Probable          344,915   0.64    7,148 Indicated  458,270   0.59    8,619
Proven+Probable   459,870   0.71   10,516 M+I        579,860   0.65   12,055
                                          Inferred   380,760   0.40    4,921
Efemcukuru
Proven              1,016  12.42      406 Measured     1,122  13.68      494
Probable            4,007   8.30    1,069 Indicated    4,304   8.50    1,177
Proven+Probable     5,023   9.13    1,475 M+I          5,426   9.57    1,670
                                          Inferred     2,524   5.96      484
Perama
Proven              2,477   4.44      354 Measured     3,064   4.30      424
Probable            7,220   2.68      621 Indicated    9,375   3.18      958
Proven+Probable     9,697   3.13      975 M+I         12,439   3.46    1,382
                                          Inferred     8,766   1.96      554
Tanjianshan
Proven              4,299   3.19      441 Measured     5,373   2.94      509
Probable            1,229   3.07      121 Indicated    3,820   2.52      309
Proven+Probable     5,528   3.16      562 M+I          9,193   2.77      818
                                          Inferred     3,137   3.50      353
Jinfeng
Proven              8,671   3.74    1,043 Measured    12,119   3.59    1,397
Probable            8,661   3.75    1,045 Indicated   13,126   3.46    1,459
Proven+Probable    17,332   3.75    2,088 M+I         25,245   3.52    2,856
                                          Inferred    10,630   3.18    1,086
White Mountain
Proven              3,776   3.70      449 Measured     4,892   3.62      569
Probable            2,072   3.65      243 Indicated    2,868   3.23      297
Proven+Probable     5,848   3.68      692 M+I          7,760   3.47      866
                                          Inferred     4,907   5.22      824
Eastern Dragon
Proven                837  11.07      297 Measured       800  12.48      322
Probable            2,253   6.46      467 Indicated    2,700   6.04      530
Proven+Probable     3,090   7.71      764 M+I          3,500   7.50      852
                                          Inferred     2,200   2.67      190
Tocantinzinho
Proven             17,735   1.39      792 Measured    19,777   1.29      820
Probable           31,315   1.17    1,183 Indicated   50,457   0.97    1,574
Proven+Probable    49,050   1.25    1,975 M+I         70,234   1.06    2,394
                                          Inferred     6,950   0.66      147
----------------------------------------------------------------------------
Total Gold
Proven            153,766   1.45    7,150 Measured   168,737   1.47    7,971
Probable          401,672   0.92   11,897 Indicated  544,920   0.85   14,923
Proven+Probable   555,438   1.07   19,047 M+I        713,657   1.00   22,893
                                          Inferred   419,874   0.63    8,559
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Iron               Tonnes  Grade                      Tonnes  Grade
                ----------------                   ----------------
Vila Nova         (x1000)   Fe %                     (x1000)   Fe %
                ----------------                   ----------------
Proven              2,338   63.4          Measured     2,338   63.4
Probable            6,603   60.0          Indicated    7,295   60.9
Proven+Probable     8,941   60.9          M+I          9,633   61.5
                                          Inferred     2,022   61.2
----------------------------------------------------------------------------

Notes on Mineral Resources and Reserves:
1) Mineral reserves and mineral resources are as of December 31, 2011
2) Mineral reserves are included in the mineral resources.
3) The Eastern Dragon Project also contains economic concentrations of
silver. The silver grade for the project's Proven and Probable reserves
averages 71 g/t Ag (7.0 million in-situ ounces) whereas the average silver
grade in the Measured and Indicated resources equals 73 g/t Ag (8.3 million
in-situ ounces).

Mineral Reserve Notes:
1) Gold price used was $1250/oz except for Eastern Dragon and Tocantinzinho
projects which used $1000 and the Efemcukuru mine which used $825/oz.
2) Cut-off grades (gold g/t): Kisladag: 0.20 g/t oxide, 0.31 g/t sulphide;
Efemcukuru: 4.0 g/t; Perama: 0.8 g/t; Tanjianshan: 1.6 g/t JLG sulphide, 1.3
g/t JLG oxide/transition, 1.5 g/t 323 Pit; Jinfeng: 0.8 g/t open pit, 2.3
g/t underground; White Mountain: 1.5 g/t; Eastern Dragon: 1.0 g/t open pit,
1.7 g/t underground; Tocantinzinho: 0.49 g/t sulphide, 0.43 g/t oxide.
3) Qualified Persons:
Richard Miller, P.Eng., Manager, Mining for the Company is responsible for
the Kisladag, Tanjianshan, Jinfeng open pit and Perama reserves;
Norm Pitcher, P.Geo., Chief Operating Officer for the Company, is
responsible for the Jinfeng underground, White Mountain, Eastern Dragon and
Efemcukuru reserves;
Sean Gregerson, P. Eng., Business Development Manager for the Company, is
responsible for the Tocantinzinho reserves;
Roberto Costa, principal of Roberto Costa Engenharia Ltda, is responsible
for the Vila Nova iron reserves.

Mineral Resource Notes:
1) Cut-off grades (gold g/t): Kisladag: 0.25 g/t; Efemcukuru: 3.0 g/t;
Perama: 0.5 g/t; Jinfeng: 0.7 g/t open pit, 2.0 g/t underground;
Tanjianshan: 1.0 g/t; White Mountain: 1.0 g/t; Eastern Dragon: 1.0 g/t;
Tocantinzinho: 0.3 g/t.
2) Qualified Persons:
Stephen Juras, Ph.D., P.Geo. and Director, Technical Services for the
Company is responsible for the Kisladag, Efemcukuru, Perama, Tanjianshan,
Tocantinzinho, Jinfeng, White Mountain and Eastern Dragon resources.
Roberto Costa, principal of Roberto Costa Engenharia Ltda, is responsible
for the Vila Nova iron resources.

Mineral Resource Notes:
1) Cut-off grades (gold g/t): Kisladag: 0.25 g/t; Efemcukuru: 3.0 g/t;
Perama: 0.5 g/t; Jinfeng: 0.7 g/t open pit, 2.0 g/t underground;
Tanjianshan: 1.0 g/t; White Mountain: 1.0 g/t; Eastern Dragon: 1.0 g/t;
Tocantinzinho: 0.3 g/t.
2) Qualified Persons:
Stephen Juras, Ph.D., P.Geo. and Director, Technical Services for the
Company is responsible for the Kisladag, Efemcukuru, Perama, Tanjianshan,
Tocantinzinho, Jinfeng, White Mountain and Eastern Dragon resources.
Roberto Costa, principal of Roberto Costa Engenharia Ltda, is responsible
for the Vila Nova iron resources.

Eldorado currently intends to de-list from the official list of the ASX during the second half of the 2012 calendar year. Further details of any proposed de-listing process and the options available to CDI holders will be provided when these arrangements are finalized.

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, and Brazil. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, President and Chief Executive Officer

Eldorado will host a conference call on Friday, February 24, 2011 to discuss the 2011 Year-End Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-8527 in Toronto or 1-877-440-9795 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado's website. www.eldoradogold.com. A replay of the call will be available until March 2, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 6780348.

JORC Competent Person Statement

The information in this news release that relates to Kisladag, Tanjianshan, Jinfeng open pit and Perama Ore Reserves is based on information compiled by Richard Miller, P.Eng, who is a Member of the Association of Professional Engineers and Geoscientists of BC. Richard Miller is a full time employee of Eldorado Gold Corporation.

Information in this news release that relates to Jinfeng underground, White Mountain, Eastern Dragon and Efemcukuru Ore Reserves is based on information compiled by Norm Pitcher, P.Geo, who is a Member of the Association of Professional Engineers and Geoscientists of BC. Norm Pitcher is a full time employee of Eldorado Gold Corporation.

Sean Gregersen, P.Eng, is responsible for the Tocantinzinho Ore Reserves. Sean Gregersen is a Member of the Association of Professional Engineers and Geoscientists of BC and a full time employee of Eldorado Gold Corporation.

Roberto Costa, principal of Roberto Costa Engenharia Ltda, is responsible for the Vila Nova iron ore reserves.

Stephen Juras, Richard Miller and Sean Gregersen have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and are Qualified Persons as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Stephen Juras, Ph.D., P.Geo, and Director, Technical Services for the Company, is responsible for the Kisladag, Efemcukuru, Perama, Tanjianshan, Tocantinzinho, Jinfeng, White Mountain and Eastern Dragon Mineral Resources. Stephen Juras is a full time employee of Eldorado Gold Corporation.

Roberto Costa, principal of Roberto Costa Engenharia Ltda, is responsible for the Vila Nova iron ore resources.

Roberto Costa, Sean Gregersen, Stephen Juras, Richard Miller, and Norm Pitcher are the Qualified Persons as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Norm Pitcher, Stephen Juras, Richard Miller, Sean Gregersen and Roberto Costa consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company's 2011 Financial and Operating Results.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties 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 or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 31, 2011.

Cautionary Note Regarding Mineral Reserves and Mineral Resources

The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities & Exchange Commission ("SEC") Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made.

The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource" used in this release are Canadian mining terms as defined in accordance with National Instruction 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

For a detailed discussion of resource and reserve estimates and related matters see the Company's reports, including the Annual Information Form and Form 40-F dated March 31, 2011 and technical reports filed under the Company's name at www.sedar.com and www.sec.gov respectively.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources

Note to U.S. Investors. While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to "indicated mineral resource" and "inferred mineral resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.

Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX: ELD.TO - News) and the New York Stock Exchange (NYSE: EGO - News). Our Chess Depositary Interests trade on the Australian Securities Exchange (ASX: EAU.AX - News).

Request for information packages: reception@eldoradogold.com.

PRODUCTION HIGHLIGHTS

 

----------------------------------------------------------------------------
                                   First      Second       Third      Fourth
                                 Quarter     Quarter     Quarter     Quarter
                                    2011        2011        2011        2011
----------------------------------------------------------------------------
Gold Production
----------------------------
Ounces Sold                      148,530     162,164     179,513     168,712
Ounces Produced                  148,577     162,429     179,195     168,451
Cash Operating Cost
 ($/oz)(1,3,4)                       410         397         397         418
Total Cash Cost
 ($/oz)(2,3,4)                       462         477         463         486
Realized Price ($/oz - sold)       1,397       1,510       1,700       1,686
----------------------------------------------------------------------------
Kisladag Mine, Turkey
----------------------------
Ounces Sold                       50,832      66,392      87,121      80,572
Ounces Produced                   50,833      66,688      86,788      80,339
Tonnes to Pad                  2,341,635   3,194,051   3,520,220   3,374,541
Grade (grams / tonne)               1.04        0.92        0.90        0.97
Cash Operating Cost
 ($/oz)(3,4)                         386         389         377         353
Total Cash Cost
 ($/oz)(2,3,4)                       408         411         401         379
----------------------------------------------------------------------------
Tanjianshan Mine, China
----------------------------
Ounces Sold                       28,493      31,977      26,935      27,564
Ounces Produced                   28,493      31,977      26,935      27,567
Tonnes Milled                    238,070     264,698     218,330     284,138
Grade (grams / tonne)               3.90        4.23        4.25        3.56
Cash Operating Cost
 ($/oz)(3,4)                         402         343         353         415
Total Cash Cost
 ($/oz)(2,3,4)                       515         596         541         616
----------------------------------------------------------------------------
Jinfeng Mine, China
----------------------------
Ounces Sold                       48,518      46,381      44,187      38,672
Ounces Produced                   48,564      46,350      44,202      38,641
Tonnes Milled                    384,400     397,987     379,352     383,226
Grade (grams / tonne)               4.32        4.05        4.26        3.63
Cash Operating Cost ($/oz)
 (3,4)                               430         401         424         525
Total Cash Cost ($/oz)
 (2,3,4)                             482         457         509         596
----------------------------------------------------------------------------
White Mountain Mine, China
----------------------------
Ounces Sold                       20,687      17,414      21,270      21,904
Ounces Produced                   20,687      17,414      21,270      21,904
Tonnes Milled                    140,211     192,558     191,157     184,956
Grade (grams / tonne)               5.71        3.71        4.15        4.29
Cash Operating Cost ($/oz)
 (3,4)                               438         518         475         472
Total Cash Cost ($/oz)
 (2,3,4)                             475         564         519         519
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                      Fourth
                                     Quarter
                                        2010            2011            2010
----------------------------------------------------------------------------
Gold Production
----------------------------
Ounces Sold                          149,022         658,919         639,949
Ounces Produced                      148,374         658,652         632,539
Cash Operating Cost
 ($/oz)(1,3,4)                           418             405             382
Total Cash Cost
 ($/oz)(2,3,4)                           460             472             423
Realized Price ($/oz - sold)           1,373           1,581           1,223
----------------------------------------------------------------------------
Kisladag Mine, Turkey
----------------------------
Ounces Sold                           59,741         284,917         279,025
Ounces Produced                       59,815         284,648         274,592
Tonnes to Pad                      2,021,057      12,430,447      10,372,719
Grade (grams / tonne)                   1.00            0.95            1.06
Cash Operating Cost
 ($/oz)(3,4)                             382             374             329
Total Cash Cost
 ($/oz)(2,3,4)                           354             398             339
----------------------------------------------------------------------------
Tanjianshan Mine, China
----------------------------
Ounces Sold                           30,710         114,969         116,765
Ounces Produced                       30,710         114,972         113,864
Tonnes Milled                        244,867       1,005,236       1,049,952
Grade (grams / tonne)                   4.59            3.96            4.19
Cash Operating Cost
 ($/oz)(3,4)                             349             377             383
Total Cash Cost
 ($/oz)(2,3,4)                           459             567             485
----------------------------------------------------------------------------
Jinfeng Mine, China
----------------------------
Ounces Sold                           38,282         177,758         182,026
Ounces Produced                       37,560         177,757         181,950
Tonnes Milled                        387,710       1,544,965       1,557,199
Grade (grams / tonne)                   3.81            4.06            4.24
Cash Operating Cost ($/oz)
 (3,4)                                   486             442             425
Total Cash Cost ($/oz)
 (2,3,4)                                 585             507             480
----------------------------------------------------------------------------
White Mountain Mine, China
----------------------------
Ounces Sold                           20,289          81,275          62,133
Ounces Produced                       20,289          81,275          62,133
Tonnes Milled                        169,669         708,882         622,418
Grade (grams / tonne)                   4.06            4.37            3.98
Cash Operating Cost ($/oz)
 (3,4)                                   498             474             487
Total Cash Cost ($/oz)
 (2,3,4)                                 536             517             522
----------------------------------------------------------------------------

(1) Cost figures calculated in accordance with the Gold Institute Standard.
(2) Cash Operating Costs, plus royalties and the cost of off-site
administration.
(3) Cash operating costs and total cash costs are non-GAAP measures. See the
section "Non-GAAP Measures" of this Review.
(4) Cash operating costs and total cash costs have been recalculated for
prior quarters based on ounces sold.


Eldorado Gold Corporation
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)

                                   December 31,  December 31,    January 1,
                              Note         2011          2010          2010
ASSETS
Current assets
  Cash and cash equivalents      5      393,763       314,344       265,369
  Restricted cash            6, 15       55,390        52,425        50,000
  Marketable securities          7        2,640         8,027        13,951
  Accounts receivable and
   other                         8       42,309        42,437        26,434
  Inventories                    9      164,057       147,263       129,197
                                  ------------------------------------------
                                        658,159       564,496       484,951
Non-current inventories          9       26,911        29,627        31,534
Investments in significantly
 influenced companies           10       18,808         6,202             -
Deferred income tax assets      18        4,259             -             -
Restricted assets and other     11       38,430        19,328        13,759
Property, plant and equipment   12    2,847,910     2,699,787     2,527,567
Goodwill                        13      365,928       365,928       324,935
                                  ------------------------------------------
                                      3,960,405     3,685,368     3,382,746
                                  ------------------------------------------
LIABILITIES & EQUITY
Current liabilities
  Accounts payable and
   accrued liabilities          14      168,367       145,695       153,036
  Current debt                  15       81,031        98,523        56,499
                                  ------------------------------------------
                                        249,398       244,218       209,535
Debt                            15            -        68,140       134,533
Asset retirement obligations    16       43,213        33,228        26,995
Defined benefit plan            17       19,969        12,019         7,811
Deferred income tax
 liabilities                    18      336,579       330,512       355,425
                                  ------------------------------------------
                                        649,159       688,117       734,299
                                  ------------------------------------------
Equity
Share capital                   19    2,855,689     2,814,679     2,671,634
Treasury stock                           (4,018)            -             -
Contributed surplus                      30,441        22,967        17,865
Accumulated other
 comprehensive (loss) income            (10,069)       (1,637)        2,227
Retained earnings (deficit)             382,716       125,221       (69,423)
                                  ------------------------------------------
Total equity attributable to
 shareholders of the Company          3,254,759     2,961,230     2,622,303
Attributable to non-
 controlling interests                   56,487        36,021        26,144
                                  ------------------------------------------
                                      3,311,246     2,997,251     2,648,447
                                  ------------------------------------------
                                      3,960,405     3,685,368     3,382,746
                                  ------------------------------------------
                                  ------------------------------------------

Approved on behalf of the Board of Directors

(Signed) Robert R. Gilmore, Director     (Signed) Paul N. Wright, Director
Date of approval: February 23, 2012

The accompanying notes are an integral part of these consolidated financial
statements.


Eldorado Gold Corporation
Consolidated Income Statements

(Expressed in thousands of U.S. dollars except per share amounts)

For the year ended December 31            Note          2011           2010

Revenue
  Metal sales                                      1,098,933        791,175

Cost of sales
  Production costs                          27       346,484        277,974
  Depreciation and amortization                      122,414        107,157
                                              ------------------------------
Total cost of sales                                  468,898        385,131
Gross profit                                         630,035        406,044

Exploration expenses                                  30,773         22,501
Mine standby costs                                         -          1,335
General and administrative expenses                   59,239         44,935
Defined benefit plan expense                17         2,088          1,337
Share based payments                        20        19,722         17,112
Foreign exchange loss                                  5,367          2,712
                                              ------------------------------
Operating profit                                     512,846        316,112

Gain on disposal of assets                            (2,729)          (592)
Gain on marketable securities                           (664)        (6,572)
Loss on investments in significantly
 influenced companies                                  4,225            531
Other income                                          (7,673)       (13,468)
Asset retirement obligation accretion       16         1,546          2,727
Interest and financing costs                28         5,331          8,089
                                              ------------------------------

Profit before income tax                             512,810        325,397
Income tax expense                          18       165,587         86,939
                                              ------------------------------
Profit for the year                                  347,223        238,458
                                              ------------------------------

Attributable to:
Shareholders of the Company                          318,662        221,001
Non-controlling interests                             28,561         17,457
                                              ------------------------------
Profit for the year                                  347,223        238,458
                                              ------------------------------
                                              ------------------------------

Weighted average number of shares
 outstanding                                29
Basic                                                549,791        542,861
Diluted                                              551,625        545,850

Earnings per share attributable to
 shareholders of the Company:               29
Basic earnings per share                                0.58           0.41
Diluted earnings per share                              0.58           0.40

The accompanying notes are an integral part of these consolidated financial
statements.


Eldorado Gold Corporation
Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)

For the year ended December 31                    Note      2011       2010

Profit for the year                                      347,223    238,458
Other comprehensive income (loss):
Change in fair value of available-for-sale
 financial assets                                           (989)    13,480
Income tax on items taken to equity                           12        (40)
Reversal of unrealized gains on available-for-
 sale investments on acquisition of subsidiary                 -    (11,424)
Realized gains on disposal of available-for-sale
 financial assets transferred to net income                 (794)    (3,245)
Actuarial losses on defined benefit pension plans   17    (6,661)    (2,635)
                                                      ----------------------
Total other comprehensive (loss) income for the
 year                                                     (8,432)    (3,864)
                                                      ----------------------
Total comprehensive income for the year                  338,791    234,594
                                                      ----------------------
                                                      ----------------------

Attributable to:
Shareholders of the Company                              310,230    217,137
Non-controlling interests                                 28,561     17,457
                                                      ----------------------
Total comprehensive income for the year                  338,791    234,594
                                                      ----------------------
                                                      ----------------------

The accompanying notes are an integral part of these consolidated financial
statements.


Eldorado Gold Corporation
Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars)

For the year ended December 31                    Note      2011       2010

Cash flows generated from (used in):
Operating activities
Profit for the year                                      347,223    238,458
Items not affecting cash
Asset retirement obligation accretion                      1,546      2,727
Depreciation and amortization                            122,414    107,157
Unrealized foreign exchange loss                           6,500      5,802
Deferred income tax expense (recovery)                     1,804     (8,083)
Gain on disposal of assets                                (2,729)      (592)
Loss on investment in significantly influenced
 companies                                                 4,225        531
Gain on marketable securities                               (664)    (6,572)
Share based payments                                      19,722     17,112
Defined benefit plan expense                               2,088      1,337
                                                      ----------------------
                                                         502,129    357,877

Changes in non-cash working capital                 21     9,948    (59,509)
                                                      ----------------------
                                                         512,077    298,368
Investing activities
Acquisition of subsidiaries net of cash received               -     (6,083)
Purchase of property, plant and equipment               (272,818)  (226,296)
Proceeds from the sale of property, plant and
 equipment                                                   147     23,756
Purchase of marketable securities                         (1,823)   (11,983)
Proceeds from the sale of marketable securities            8,154     15,611
Non-registered supplemental retirement plan
 investments, net                                         (7,045)         -
Investments in significantly influenced companies        (16,830)    (6,727)
Increase in restricted cash                               (2,957)    (2,463)
Increase in restricted assets and other                        -     (7,007)
                                                      ----------------------
                                                        (293,172)  (221,192)
Financing activities
Issuance of common shares for cash                        31,600     35,907
Dividend paid to non-controlling interests                (8,095)    (7,580)
Dividend paid to shareholders                            (61,167)   (26,357)
Purchase of treasury stock                                (6,438)         -
Long-term and bank debt proceeds                           5,782     59,839
Long-term and bank debt repayments                       (98,169)   (90,010)
Loan financing costs                                      (2,999)         -
                                                      ----------------------
                                                        (139,486)   (28,201)
                                                      ----------------------
Net increase in cash and cash equivalents                 79,419     48,975
Cash and cash equivalents - beginning of year            314,344    265,369
                                                      ----------------------

Cash and cash equivalents - end of year                  393,763    314,344
                                                      ----------------------
                                                      ----------------------


The accompanying notes are an integral part of these consolidated financial
statements.


Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)

For the year ended December 31,                             2011       2010
                                                               $          $
Share capital
Balance beginning of year                              2,814,679  2,671,634
Shares issued upon exercise of share options, for cash    30,115     35,895
Transfer of contributed surplus on exercise of options     9,410     12,020
Shares issued in consideration for interests acquired          -     95,118
Shares issued upon exercise of warrants, for cash          1,485         12
                                                      ----------------------
Balance end of year                                    2,855,689  2,814,679
                                                      ----------------------

Treasury stock
Balance beginning of year                                      -          -
Purchase of treasury stock                                (6,438)         -
Shares redeemed upon exercise of restricted share          2,420          -
 units
                                                      ----------------------
Balance end of year                                       (4,018)         -
                                                      ----------------------

Contributed surplus
Balance beginning of year                                 22,967     17,865
Share based payments                                      19,304     16,557
Share based payments on Brazauro warrants and options          -        565
 converted
Shares redeemed upon exercise of restricted share         (2,420)         -
 units
Transfer to share capital on exercise of options          (9,410)   (12,020)
                                                      ----------------------
Balance end of year                                       30,441     22,967
                                                      ----------------------

Accumulated other comprehensive (loss) income
Balance beginning of year                                 (1,637)     2,227
Other comprehensive (loss) income for the year            (8,432)    (3,864)
                                                      ----------------------
Balance end of year                                      (10,069)    (1,637)
                                                      ----------------------

Retained earnings (deficit)
Balance beginning of year                                125,221    (69,423)
Dividends paid                                           (61,167)   (26,357)
Profit attributable to shareholders of the Company       318,662    221,001
                                                      ----------------------
Balance end of year                                      382,716    125,221
                                                      ----------------------
Total equity attributable to shareholders of the       3,254,759  2,961,230
 Company
                                                      ----------------------

Non-controlling interests
Balance beginning of year                                 36,021     26,144
Profit attributable to non-controlling interests          28,561     17,457
Dividends paid                                            (8,095)    (7,580)
                                                      ----------------------
Balance end of year                                       56,487     36,021
                                                      ----------------------

Total equity                                           3,311,246  2,997,251
                                                      ----------------------
                                                      ----------------------

See accompanying notes to the unaudited condensed consolidated financial
statements.

Click the following link to view the Consolidated Financial Statements for the year ended December 31, 2011 in PDF: http://media3.marketwire.com/docs/eldorado-financial-statements-0224.pdf.

Contact:

Eldorado Gold Corporation
Nancy Woo
VP Investor Relations
604.601.6650 or 1.888.353.8166
604.687.4026 (FAX)
nancyw@eldoradogold.com
www.eldoradogold.com

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