Eldorado Reports Year-End and Fourth Quarter Financial and Operational Results

Earnings: $0.16 per share - Q4; $0.44 per share - full year 2012 (all figures in United States dollars unless otherwise noted)

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 22, 2013) - Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation, ("Eldorado" the "Company" or "we") (ELD.TO)(EGO) is pleased to report on the Company''s financial and operational results for the year ended December 31, 2012. Eldorado reported profit attributable to shareholders of the Company of $305.3 million for the year ended December 31, 2012 on sales of 625,394 ounces of gold at an average price of $1,674 per ounce.

"In addition to the continued strong earnings and production achieved in 2012, the Company completed its acquisition of European Goldfields Limited ("EGU") during the year, significantly increasing our gold reserves," said Paul Wright, President and CEO of Eldorado Gold. "As well, the Company strengthened its cash position through the issuance of Senior Notes totalling $600.0 million, proceeds of which will be used to fund a strong set of development projects in the pipeline."

2012 Results and Corporate Developments

  • Gold production, including pre-commercial production from Efemcukuru: 656,324 ounces - 2012; 658,652 ounces - 2011.

  • Gold revenues: $1,047.1 million - 2012; $1,042.1 million - 2011.

  • Basic earnings per share: $0.44 per share - 2012; $0.58 per share - 2011.

  • Cash generated from operating activities before changes in non-cash working capital (a non-IFRS measure): $447.7 million - 2012; $502.1 million - 2011. Additionally, sales of pre-commercial production from Efemcukuru generated proceeds of $54.7 million.

  • The Company paid dividends totalling Cdn$0.15 per share compared to Cdn$0.11 per share in 2011.

  • European Goldfields Limited was acquired on February 24, 2012.

  • Reserves increased significantly year over year.

  • The Company issued Senior Notes totalling $600.0 million in December 2012.

Change in Greek corporate income tax rate post acquisition

On January 11, 2013 the government of Greece enacted legislation increasing the corporate income tax rate from 20% to 26%, effective January 1, 2013. The Company calculated its deferred tax liability with respect to its Greek assets including the assets acquired as part of the EGU acquisition based on the 20% Greek income tax rate (the legislated tax rate at the acquisition date). As required by IAS 12, "Income Taxes", when an income tax rate changes, the deferred tax liability must be adjusted to reflect the change in the income tax rate. The adjustment is required to be charged to deferred income tax expense. The Company anticipates that the increase in the Greek income tax rate from 20% to 26% will increase the deferred tax liability and the deferred tax expense by approximately $130.0 million or approximately $0.18 per share in the first quarter of 2013.

Summarized Annual Financial Results

($millions except as noted) 2012 2011 2010
Revenues(1) $ 1,147.5 $ 1,103.7 $ 793.7
Gold sold (ounces)   625,394   658,919   639,949
Average realized gold price ($/ounce) $ 1,674 $ 1,581 $ 1,223
Average London spot gold price ($/ounce) $ 1,669 $ 1,572 $ 1,225
Cash operating costs ($/ounce)(2) $ 483 $ 405 $ 382
Total cash costs ($/ounce)(2) $ 554 $ 472 $ 423
Gross profit from gold mining operations(2) $ 595.0 $ 610.8 $ 400.7
Profit(3) $ 305.3 $ 318.7 $ 221.0
Earnings per share - Basic ($/share)(3) $ 0.44 $ 0.58 $ 0.41
Earnings per share - Diluted ($/share)(3) $ 0.44 $ 0.58 $ 0.40
Cash flow from operating activities before changes in non-cash working capital(2) $ 447.7 $ 502.1 $ 357.9
Capital Spending - cash basis $ 426.2 $ 272.8 $ 226.3
Dividends paid - (Cdn$/share) $ 0.15 $ 0.11 $ 0.05
Cash and cash equivalents $ 816.8 $ 393.8 $ 314.3
Total Assets $ 7,928.1 $ 3,960.4 $ 3,685.4
Total long-term financial liabilities(4) $ 662.9 $ 63.2 $ 113.4
 
(1) Revenues include proceeds from the sale of lead and zinc concentrates produced by Stratoni in the amount of $47.9 million (Stratoni was acquired in 2012), the sale of iron ore from Vila Nova in the amount of $45.6 million in 2012 ($56.8 million - 2011; $8.3 million - 2010), the sale of pyrite from Olympias in the amount of $0.8 million (Olympias was acquired in 2012), and the sale of silver in the amount of $6.1 million from our gold mines ($4.8 million - 2011; $2.6 million - 2010). (2) We use cash operating cost per ounce, total cash costs per ounce, gross profit from gold mining operations, and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see page 16 of our Management Discussion and Analysis for an explanation and discussion of these non-IFRS measures. (3) Attributable to shareholders of the Company. (4) Includes long-term debt net of deferred financing costs, defined benefit plans, and asset retirement obligations.

Review of Annual Financial Results

Profit attributable to shareholders of the Company for the year ended December 31, 2012 was $305.3 million, or $0.44 per share, compared to $318.7 million, or $0.58 per share in 2011. The main factors that impacted our profit as compared to the profit for the year ended December 31, 2011 were: 1) higher production costs due to higher operating costs at our Chinese gold mines; 2) lower depreciation and amortization expense mainly as a result of lower sales volumes; 3) higher exploration expenses due to an increase in the Company''s worldwide exploration activities; 4) higher general and administrative expenses mainly as a result of the additional costs of managing the general and administrative activities of our Greek and Romanian subsidiaries from our acquisition of EGU; 5) transaction costs of $21.2 million connected with the acquisition of EGU; and 6) lower income tax expense due to recognition of $15.8 million of investment incentive tax credits in Turkey related to Efemçukuru and the impact of Turkish lira exchange rate changes on the tax basis of our Turkish tax assets. The effective tax rate decreased from 32% to 29% year over year for the same reasons.

Review of Quarterly Results

Profit attributable to shareholders of the Company for the quarter ended December 31, 2012 was $115.0 million, or $0.16 per share, compared to $88.8 million, or $0.16 per share for the same period in 2011. The main factors that impacted our profit as compared to the profit for the quarter ended December 31, 2011 were: 1) Increased gold revenues from Efemçukuru concentrate sales; 2) Higher operating costs at our Chinese gold mines; and 3) Lower income tax expense due to recognition of $14.6 million of investment incentive tax credits in Turkey. The effective tax rate decreased from 32% to 20% quarter over quarter for the same reasons.

Operations review and outlook

Gold Operations

  2012 2011 2013 outlook(1)
Total Operating Gold Mines      
Gold ounces produced 656,324 658,652 705,000 to 760,000
Cash operating costs ($ per ounce) 483 405 515 to 530
Total cash costs ($ per ounce) 554 472 n/a
Capital expenditure (millions) 331.8 241.9 410.0
Kisladağ      
Gold ounces produced 289,294 284,648 290,000 to 300,000
Cash operating costs ($ per ounce) 332 374 350 to 360
Total cash costs ($ per ounce) 361 398 n/a
Capital expenditure ($ millions) 104.9 53.1 200.0
Efemçukuru      
Gold ounces produced 66,870 n/a 125,000 to 135,000
Cash operating costs ($ per ounce) 583 n/a 470 to 490
Total cash costs ($ per ounce) 613 n/a n/a
Capital expenditure ($ millions) 73.2 103.8 45.0
Tanjianshan      
Gold ounces produced 110,611 114,972 90,000 to 100,000
Cash operating costs ($ per ounce) 415 377 485 to 500
Total cash costs ($ per ounce) 612 567 n/a
Capital expenditure ($ millions) 23.9 8.9 10.0
Jinfeng      
Gold ounces produced 107,854 177,757 105,000 to 115,000
Cash operating costs ($ per ounce) 817 442 800 to 820
Total cash costs ($ per ounce) 901 507 n/a
Capital expenditure ($ millions) 59.0 32.2 55.0
White Mountain      
Gold ounces produced 80,869 81,275 60,000 to 70,000
Cash operating costs ($ per ounce) 625 474 760 to 780
Total cash costs ($ per ounce) 671 517 n/a
Capital expenditure ($ millions) 27.2 17.2 30.0
Olympias      
Gold ounces produced 826 n/a 35,000 to 40,000
Cash operating costs ($ per ounce) n/a n/a 780 to 800
Total cash costs ($ per ounce) n/a n/a n/a
Capital expenditure ($ millions) 43.6 n/a 70.0
     
(1) Outlook metal prices: gold - $1,700/oz. 
    silver - $30/oz.

Annual review - Operations

Kişladağ

Gold production for 2012 of 289,294 ounces, was 2% higher than 2011. A total of 12,606,575 tonnes of ore were placed on the leach pad at a head grade of 1.20 g/t Au (2011 - 12,430,447; 0.95 g/t Au). Gold inventory levels on the leach pad increased 33% as a result of the higher rates of ore placement as compared with leaching rates. The heap leach gold inventory level is expected to decline as these additional gold ounces place on the pad in 2012 are leached and recovered into dore in 2013.

Cash operating costs of $332 per ounce (2011 - $374 per ounce) were lower year over year as a result of the higher grade material placed on the pad as well as lower annual average exchange rates for the Turkish lira year over year.

Tanjianshan

Gold production for 2012 of 110,611 ounces, was 4% lower than 2011 mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Ore milled of 1,056,847 tonnes was 5% higher than 2011 while average treated head grade of 3.67 g/t Au was 7% lower than 2011. Circuit recoveries of 82.6% remained relatively constant with a slight increase in average recovery rate year over year (2011 - 82.1%). Additionally, flotation concentrate produced in prior years from ore mined from the Qinlongtan pit between 2007 and 2008 and added to the roaster feed was responsible for approximately 7,700 ounces of production in 2012 (2011 - approximately 12,000 ounces).

Cash operating costs of $415 per ounce (2011 - $377 per ounce) were 10% higher year over year mainly as a result of lower grade ore and lower flotation concentrate feed.

Jinfeng

Gold production for 2012 of 107,854 ounces was 39% lower than 2011 mainly as a result of lower throughput and head grade due to impact of limited production from the open pit pending completion of a cutback. A total of 96,800 tonnes of ore was mined from the open pit in 2012 (2011 - 689,737 tonnes). Mining of ore was also impacted by pit wall instability due to excessive rainfall during the second quarter. It is expected that ore production will recommence from the pit in the second quarter of 2013 once the waste stripping has uncovered the ore body. A total of 541,555 tonnes of ore were mined from the underground during the year (2011 - 494,422 tonnes). Additionally, a total of 491,101 tonnes of low grade stockpiled ore and 293,338 tonnes of mineralized waste were fed to the plant during 2012.

Cash operating costs of $817 per ounce (2011 - $442 per ounce) were 85% higher year over year reflecting the impact of the decrease in treated head grade and the slightly lower throughput.

White Mountain

Gold production for 2012 of 80,869 ounces was slightly lower than 2011 with higher ore throughput offsetting lower grade. A total of 754,673 tonnes were processed at a grade of 3.85 g/t Au (2011 - 708,882 tonnes at 4.37 g/t Au). The increase in tonnes was due to an increase in underground mining efficiency as a result of increased mine development. The average recovery rate of 86.3% was higher than that of 2011 of 81.8% as a result of the process plant changes related to caustic pre-treatment of sulfide ore made in late 2011.

Cash operating costs per ounce of $625 per ounce (2011 - $474 per ounce) were 32% higher year over year as a result of the decrease in head grade and higher costs related to increased backfill and secondary development rates to sustain higher production tonnage.

Efemçukuru

Efemçukuru began milling ore at its process plant on a pre-commercial production basis in June 2011 and the facility reached commercial production rates by the end of 2011. Unseasonably cold and wet weather impacted production during the first quarter of 2012 while delays in commissioning the underground crushing system and the paste fill system affected the second quarter of 2012. By the fourth quarter of 2012 all systems were in place and operating as expected, and production rates increased accordingly.

During 2012 Efemçukuru shipped its concentrate to the Kişladağ Concentrate Treatment Plant ("KCTP") and operated the KCTP on a pre-commercial production basis while modifying the facility in an effort to reach full commercial production. The KCTP was unable to achieve expected production rates during the year and in September 2012 the plant was placed on care and maintenance pending completion of metallurgical testwork, and development of design alternatives with a view to commissioning the upgraded plant in 2013. Approximately 30,000 ounces of gold were produced and sold on a pre-commercial basis during the KCTP testing period. The revenues, net of cost to produce, were credited to plant and equipment.

In November 2012 Efemçukuru began selling its concentrate to third parties for shipment to smelters in China and had sold 36,450 ounces by year end as well as 597 ounces poured from the gravity circuit at Efemçukuru. These sales were recorded as commercial production and the revenues and costs were reflected in the income statement in 2012. At the end of 2012 approximately 35,000 contained ounces in concentrate remained in inventory. These ounces are expected to be sold in the first quarter of 2013.

Vila Nova

Vila Nova processed 710,909 tonnes of iron ore at an average grade of 63.9% Fe during 2012 (2011 - 623,684 tonnes at 63.9% Fe). A total of 603,668 tonnes of iron ore were sold on the spot market during 2012 at an average price of $76 per tonne (2011 - 473,387 tonnes at $120 per tonne). Iron ore prices were weak during 2012 as compared with 2011 prices but recovered somewhat in the fourth quarter of 2012. Operating costs of $60 per tonne (2011 - $64 per tonne) fell slightly year over year mainly due to the weaker Brazilian real.

Stratoni

Stratoni processed 191,602 tonnes of ore and produced 50,680 tonnes of lead/zinc concentrates during 2012 subsequent to the acquisition of EGU by the Company. A total of 52,934 tonnes of lead/zinc concentrates were sold during that same period at an average price of $905 per tonne and average cash operating costs of $729 per tonne.

Annual review - Development projects

Kişladağ Phase IV Mine Expansion

The basic engineering package for the process circuit and mine infrastructure for the Phase IV Mine Expansion was completed in the third quarter of 2012. The capital cost estimate for the project is being updated based on the basic engineering designs. A Connection Agreement was reached with the high voltage power supplier to provide an additional 154 kV power line to the site. Temporary power distribution facilities will be required for start up of the first electric shovel. Work continued on design of the North Leach Pad and North Rock dump including detailed designs for initial construction work.

Procurement of long lead equipment has been ongoing with orders prepared or placed for the mobile mining fleet as well as fixed plant equipment for the crushing and screening circuits. 

Construction activity on site has been focused on earthworks in the proposed plant site and crusher pad areas. The total amount of cut and fill material within the existing permitted area has been substantially completed. Safety continues to be a major focus on the site with 150,393 man-hours spent to date on the project this year with no medical aid or lost time incidents.

Capital spending at Kişladağ for the Phase IV Mine Expansion amounted to $74.4 million in 2012, this included $28.7 million for procurement of long lead equipment.

Olympias

Olympias was acquired by the Company in February 2012 as part of the EGU transaction. The Olympias orebody is a carbonate replacement deposit containing proven and probable gold reserves of 3.8 million ounces of gold with significant lead and zinc values. Olympias was mined in the past from underground and produced lead and zinc concentrates as well as an arsenopyrite-gold concentrate. At the time of its acquisition the mine was on care and maintenance.

The Company is planning to develop Olympias in three phases. In Phase I the plan is to refurbish and re-commission the existing mill and flotation circuits and to reprocess approximately 2.41 million tonnes of historic tailings grading 3.4 g/t gold, at a rate of approximately 900,000 tonnes per annum. The reprocessing facility is designed to produce a flotation concentrate which can be sold commercially.

Approximately 28,300 tonnes of tailings were reprocessed during the final quarter of 2012 at a grade of 5.07 grams per tonne during the re-commissioning of the reprocessing facility. Approximately 826 payable ounces of gold in concentrate were shipped to a smelter prior to year end and were accounted for as pre-commercial production.

Underground refurbishment was begun during 2012 in tandem with the tailings retreatment with the goal of beginning underground mining in Phase II. Approximately 1,000 meters of underground drifts were rehabilitated and 1,377 meters of new drifts were completed. Mine production during Phases II and III, is estimated to be 450,000 and 850,000 tonnes per annum respectively. A core relogging and geologic interpretation program was begun in 2012 to better understand the full extent and distribution of gold mineralization. Based on results of this work the production rates may be increased for Phases II and III.

In Phase III (projected to begin in 2018) the Company plans to construct a new metallurgical plant at Stratoni to treat Olympias ore which will be accessed via an 8 kilometer tunnel, transporting ore to the plant and tailings back to the underground for backfill.

Capital costs incurred in 2012 since the date of the EGU acquisition were $43.6 million for mine development and rehabilitation, and for mill refurbishment.

Skouries

Skouries is a coppergold porphyry deposit that the Company plans to develop using both open pit and underground mining methods. The deposit currently hosts proven and probable reserves of 3.6 million ounces of gold and 743,000 tonnes of copper.

From the date of the EGU acquisition a total of $20.6 million was spent on capital development at Skouries. The work consisted mainly of site clearing and preparation, geotechnical drilling (835 meters), detailed engineering studies and road building. 

On February 17, 2013 the Skouries project site was attacked by a group of armed intruders. Office trailers and mobile equipment were destroyed. The Company is cooperating with the police and other relevant authorities to ensure the safety of our employees and assets.

Certej

The Certej development project in Romania was also acquired as part of the EGU transaction. This deposit hosts a 4.3 million ounce measured and indicated resource that will be developed using open pit mining methods. The Environmental Permit for Certej was approved by the Timisoara Regional Department of Environment during the third quarter of 2012.

Exploration drilling during 2012 significantly expanded the resource at Certej and work is currently underway to convert the resource into an updated and expanded pit design and ore reserve. In addition, metallurgical testwork is ongoing, both to validate the appropriateness of the currently designed metal recovery process and to examine alternative metallurgical processes.

From the date of the EGU acquisition at total of $9.9 million was spent on capital development including land acquisition, metallurgical drilling and testwork, and exploration drilling. 

Perama Hill

The Ministry of Environment completed the review of the Preliminary Environmental Impact Assessment ("PEIA") application and issued the Approval of the PEIA study in February 2012. Processing of the EIA will be carried out under the Fast Track program established by the Greek government in 2012. Approval of the EIA is expected to be received in the first quarter of 2013.

Geotechnical drilling in the plant site and tailings disposal basin as well as geotechnical holes in the pit area was begun during 2012. Samples for metallurgical testwork were recovered from selected drill holes.

The basic engineering package for the process plant and ancillary facilities was completed in the fourth quarter of 2012. Detailed engineering including foundation and structural design was initiated for the process plant, ancillary buildings and filtration plant.

Capital spending for Perama Hill in 2012 amounted to $7.6 million.

Eastern Dragon

Due to delays in the permitting process for Eastern Dragon the Company elected to reduce activity on site until resolution of the issues can be achieved. During the course of the year construction work at the site was focused on completing critical work already in progress as well as securing the site and equipment for care and maintenance.

Capital costs incurred at Eastern Dragon totalled $13.9 million spent on completion of construction work and care and maintenance of the site facilities. 

Tocantinzinho

The Preliminary Environmental License for the Tocantinzinho project was issued in September 2012. Public participation meetings held in the project area in June were positive and supportive of the project development. Engineering efforts have focused on preparation of a Feasibility Study for the mine and infrastructure and the backup data and designs required for the study. Preliminary results from the feasibility work have revealed a number of areas which could be optimized to improve on the economic performance of the project. A critical review of the project will be undertaken in 2013 to address areas which can potentially impact both capital and operating costs.

Project spending in 2012 was $12.1 million, not including capitalized exploration costs. 

Annual review - Exploration

During 2012 the Company conducted grassroots, advanced stage and minesite exploration activities which included drilling approximately 184,000 meters of drill holes, and involved 32 projects across Turkey, China, Brazil, Greece, and Romania.

Turkey

Kişladağ

At Kişladağ, a total of 10,200 meters of diamond drilling was completed in 2012 testing multiple deep targets defined by a combination of geophysical surveys, soil geochemistry, and geological modelling. The drilling program was not successful at identifying new mineralized porphyry centers, and most of the mineralization and alteration identified is likely a peripheral footprint of the Kişladağ deposit. Two final targets remain to be tested once drill-site permitting has been granted.

Efemçukuru

At Efemçukuru, approximately 30,700 meters of exploration drilling was completed during the year on both the Kestane Beleni and the Kokarpinar vein systems. At Kestane Beleni, drilling was focussed on the Northwest Extension target area ("KBNW"), and also on the down-dip stepouts in the South Ore Shoot ("SOS") and Middle Ore Shoot / North Ore Shoot ("MOS/NOS") transition area. In the KBNW target area, 2012 drilling defined a new shallowly-plunging ore shoot with high gold grades. This ore shoot remains open down plunge to the northwest. In both the SOS and MOS/NOS transition areas, the new drilling extended the known mineralization downdip, and ore shoots remain open at depth. Drilling on the Kokarpinar vein system focused on the relatively untested central portion of the vein. Two new ore shoots were identified: a northern ore shoot supported to date by multiple bonanza grade intercepts, and a more limited southern ore shoot, dominated by stockwork mineralization in the hangingwall to the principal vein. The northern Kokarpinar ore shoot is open downdip, and has also not been tested in the approximately 300 meter interval between the drillhole intercepts and the surface. Most of the mineralization identified in 2012 drilling at both Kestane Beleni and Kokarpinar falls in the Inferred Resource category. Infill drilling of these zones is planned for 2013.

China

Tanjianshan district

The 2012 exploration program in the Tanjianshan district included drilling programs at the Xijongou ("XJG") deposit, the Qinlongtan ("QLT") north target area, the Zhongxinshan (ZXS) prospect, and the Jinlonggou ("JLG") deposit. At XJG, a total of 5,700 meters of drilling was conducted on infill and stepout holes, providing further definition of the two main mineralized zones as well as testing new target areas. At QLT north, drilling tested the mineralized fault zone at depth beneath the north end of the open pit. Several high-grade intercepts contributed to a new inferred resource in this target area, which is included in the exploration program for 2013. In addition, exploration drilling by our joint venture partner at QLT north encountered a strongly-mineralized intrusion with high gold grades adjacent to the controlling fault. Follow-up drilling of this new zone of mineralization began in late 2012 and is included in the 2013 exploration program.

At the Jinlonggou pit, a total of 10,800 meters of drilling targeted zones of inferred mineralization beneath the floor of the current design pit, and also tested the continuity of mineralized fault zones behind the west and south pit walls. This drilling yielded several new zones of Inferred Resources, which are included in the planned infill and stepout drilling program for 2013.

Jinfeng district

At the Jinfeng mine, drilling included surface and underground programs (16,500 meters and 14,200 meters respectively) which targeted step-outs along the known major mineralized fault zones (F2, F3, F6), infilled gaps in the existing resource model, and tested new conceptual targets. The exploration drilling was successful in maintaining Measured and Indicated Resources at the deposit.

White Mountain district

Exploration drilling of the White Mountain deposit was delayed pending development of additional underground drill stations.

Brazil

Tocantinzinho district

At Tocantinzinho, 2012 exploration activities included 5,700 meters of diamond drilling testing geophysical and geochemical targets peripheral to the deposit. Significant results included the discovery of a zone of copper-molybdenum porphyry-style mineralization several kilometers west of Tocantinzinho, with a drillhole intercept of 295.0 meters grading 0.19% copper and 0.015% molybdenum. Narrow intervals of high grade gold mineralization were also encountered in several drillholes, and will be further tested in 2013.

Reconnaissance

At the Agua Branca project, 8,800 meters of drilling tested the Camarao Hill zone over a 2 kilometer strike length. Although the drilling confirmed continuity of the northeast-striking mineralized zone, significant gold values were typically restricted to narrow intervals within broad low grade zones, and none of the new holes improved on results from previous drill programs. Additional auger testing is planned for early 2013.

Reconnaissance fieldwork aimed at defining drill targets was completed during the year at the Piranhas and Chapadinha projects, both being explored under option agreements with private owners.

Greece

Chalkidiki district

In the Chalkidiki district, drilling programs were completed in 2012 at the Skouries, Piavitsa, and Fisoka project areas. At Piavitsa, 14,000 meters of drilling tested the mineralized Stratoni Fault zone over approximately a 2 kilometer strike length, constraining a new Inferred Resource for the deposit. Strongest mineralization was encountered in two areas: one near the central portion of the tested area; and the other in the Piavitsa West area, where the Stratoni Fault appears to be offset by a north-striking younger fault. Several drillholes also cut mineralized veins with intermediate sulfidation epithermal characteristics and moderate gold grades. This discovery represents a style of mineralization not previously known in the district. 

At Skouries, a total of 12,100 meters of drilling was completed including 19 infill drillholes in the design pit area, and two deep confirmation drillholes. Infill drillholes converted portions of the low-grade Inferred Resource peripheral to the deposit core into Measured and Indicated Resources. The two deep confirmation holes intersected intense porphyry-style mineralization within potassically altered syenite and lesser wallrock zones, with grades similar to those predicted by the resource model.

At Fisoka, a total of 2,700 meters of drilling was completed testing the three primary porphyry target areas. Best results were from a shallow supergene blanket over the northern porphyry body, with grades similar to those obtained from previous drilling programs.

Perama district

In the Perama district, exploration activities during 2012 focused on mapping and sampling of the Perama South deposit area, directed towards identifying controls on mineralization for future drill targeting. At Perama Hill, infill drilling along the western margin of the deposit began late in the year.

Romania

Certej district

Exploration activities in the Certej district during 2012 included drilling programs at the Certej deposit and at the Sacaramb prospect. At the Certej deposit, drilling focused on two areas referred to as the link zone and the west pit areas. A total of 13,900 meters of drilling was completed which identified new high grade zones of mineralization within the deeper parts of the link zone, and significantly increased the deposit resource. At Sacaramb, drilling tested geophysical anomalies along the inferred extension of vein systems that were mined historically. This drill program did not encounter significant new mineralization.

Reserves and Resources

As a result of our acquisition of EGU the Company reported an additional 6.8 million contained ounces of gold in Proven and Probable Reserves and 13.4 million contained ounces of Measured and Indicated Resources at the end of 2012. Proven and Probable Reserves do not include Certej project. Work is currently underway to convert the expanded resource at Certej into reserves, which we plan to complete during 2013. The previous reserve of 46.7 million tonnes at 1.60 g/t Au and 11.5 g/t Ag was calculated on a smaller resource base and is now considered historical. Reserves at the end of 2012 totalled 25.8 million contained ounces of gold, compared with 19.0 million ounces at the end of 2011. Measured and Indicated Resources at the end of 2012 totalled 36.3 million contained ounces of gold, compared with 22.9 million ounces at the end of 2011. 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, as of December 2012
 
Project  Proven Mineral Reserves   Probable Mineral Reserves   Total Proven and Probable 
Gold Tonnes Au In-situ Au Tonnes Au In-situ Au Tonnes Au In-situ Au
  (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000)
Certej (See Mineral Reserve Note 3)              
Eastern Dragon 837 11.07 297 2,253 6.46 467 3,090 7.71 764
Efemcukuru 1,182 10.81 411 4,019 6.87 886 5,201 7.77 1,297
Jinfeng 7,775 3.97 993 8,859 3.62 1,032 16,634 3.79 2,025
Kisladag 102,695 0.88 2,913 344,915 0.64 7,148 447,610 0.70 10,061
Olympias 11,294 7.57 2,749 4,686 8.70 1,311 15,980 7.90 4,060
Perama 2,477 4.44 354 7,220 2.68 621 9,697 3.13 975
Skouries 65,536 0.88 1,850 82,386 0.66 1,751 147,922 0.76 3,601
Tanjianshan 3,505 2.94 331 1,156 2.96 109 4,661 2.95 440
Tocantinzinho 17,735 1.39 792 31,315 1.17 1,183 49,050 1.25 1,975
White Mountain 3,270 3.10 326 2,140 3.37 232 5,410 3.21 558
TOTAL GOLD 216,306 1.58 11,016 488,949 0.94 14,740 705,255 1.14 25,756
Silver Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag
  (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000)
Certej (See Mineral Reserve Note 3)              
Eastern Dragon 837 81 2,178 2,253 67 4,848 3,090 71 7,026
Olympias 11,294 104 37,763 4,686 140 21,092 15,980 115 58,855
Perama 2,477 3 254 7,220 4 897 9,697 4 1,151
Stratoni 784 195 4,915 112 107 385 896 184 5,300
TOTAL SILVER 15,392 91 45,110 14,271 59 27,222 29,663 76 72,332
Copper Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Skouries 65,536 0.64 343 82,386 0.51 406 147,922 0.57 749
TOTAL COPPER 65,536 0.64 343 82,386 0.51 406 147,922 0.57 749
Lead Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Olympias 8,886 4.3 382 4,686 4.7 220 13,572 4.4 602
Stratoni 784 7.4 58 112 3.9 4 896 6.9 62
TOTAL LEAD 9,670 4.6 440 4,798 4.7 224 14,468 4.6 664
Zinc Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Olympias 8,886 5.7 507 4,686 6.2 291 13,572 5.9 798
Stratoni 784 11.3 89 112 12.9 14 896 11.5 103
TOTAL ZINC 9,670 6.2 596 4,798 6.4 305 14,468 6.2 901
Iron Tonnes Fe   Tonnes Fe   Tonnes Fe  
  (x1000) %   (x1000) %   (x1000) %  
Vila Nova 2,810 59.4   6,940 58.5   9,750 58.8  
TOTAL IRON 2,810 59.4   6,940 58.5   9,750 58.8  
                   
                   
Table 2: Eldorado Gold Mineral Resources as of December 2012
 
Project Measured Resources Indicated Resources Total Meaured and Indicated Inferred Resources
Gold Tonnes Au In-situ Au Tonnes Au In-situ Au Tonnes Au In-situ Au Tonnes Au In-situ Au
  (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000)
Certej 14,500 1.84 860 92,200 1.19 3,520 106,700 1.27 4,380 24,400 1.01 800
Eastern Dragon 800 12.48 322 2,700 6.04 530 3,500 7.50 852 2,200 2.67 190
Efemcukuru 1,271 11.85 485 4,614 7.85 1,165 5,885 8.71 1,650 5,242 4.96 835
Jinfeng 11,353 3.94 1,437 13,704 3.40 1,499 25,057 3.64 2,936 10,422 3.07 1,029
Kisladag 105,533 0.87 2,938 458,222 0.59 8,618 563,755 0.64 11,556 379,725 0.40 4,908
Olympias 10,545 8.49 2,878 4,298 10.00 1,382 14,843 8.93 4,260 1,666 8.90 477
Perama 3,064 4.30 424 9,375 3.18 958 12,439 3.46 1,382 8,766 1.96 554
Piavitsa 0 0.00 0 0 0.00 0 0 0.00 0 10,854 4.95 1,727
Skouries 99,135 0.80 2,552 184,493 0.49 2,853 283,628 0.60 5,405 168,063 0.31 1,673
Tanjianshan 4,383 2.77 389 3,694 2.49 295 8,077 2.64 684 3,541 3.85 439
Tocantinzinho 19,777 1.29 820 50,457 0.97 1,574 70,234 1.06 2,394 6,950 0.66 147
White Mountain 4,029 3.47 450 3,337 3.23 346 7,366 3.36 796 4,193 5.22 704
TOTAL GOLD 274,390 1.54 13,555 827,094 0.86 22,740 1,101,484 1.02 36,295 626,022 0.67 13,483
Silver Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag Tonnes Ag In-situ Ag
  (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000) (x1000) g/t ounces (x1000)
Certej 14,500 7 3,170 92,200 9 27,500 106,700 9 30,670 24,400 6 4,870
Eastern Dragon 800 91 2,400 2,700 67 5,900 3,500 73 8,300 2,200 20 1,500
Olympias 10,545 117 39,666 4,298 161 22,248 14,843 130 61,914 1,666 155 8,302
Perama 3,064 3 335 9,375 9 2,833 12,439 8 3,168 8,766 7 1,860
Piavitsa 0 0 0 0 0 0 0 0 0 10,854 39 13,610
Stratoni 1,141 181 6,640 0 0 0 1,141 181 6,640 705 89 2,017
TOTAL SILVER 30,050 54 52,211 108,573 17 58,481 138,623 25 110,692 48,591 21 32,159
Copper Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu Tonnes Cu In-situ Cu
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Skouries 99,135 0.49 484 184,493 0.41 750 283,628 0.43 1,234 168,063 0.34 575
TOTAL COPPER 99,135 0.49 484 184,493 0.41 750 283,628 0.43 1,234 168,063 0.34 575
Lead Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb Tonnes Pb In-situ Pb
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Olympias 8,137 4.9 399 4,298 5.4 232 12,435 5.1 631 1,666 5.1 85
Stratoni 1,141 6.8 78 0 0.0 0 1,141 6.8 78 705 4.3 30
TOTAL LEAD 9,278 5.1 477 4,298 5.4 232 13,576 5.2 709 2,371 4.9 115
Zinc Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn Tonnes Zn In-situ Zn
  (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000) (x1000) % tonnes (x1000)
Olympias 8,137 6.6 537 4,298 7.1 305 12,435 6.8 842 1,666 7.2 120
Stratoni 1,141 11.3 129 0 0.0 0 1,141 11.3 129 705 12.5 88
TOTAL ZINC 9,278 7.2 666 4,298 7.1 305 13,576 7.2 971 2,371 8.8 208
Iron Tonnes Fe   Tonnes Fe   Tonnes Fe   Tonnes Fe  
  (x1000) %   (x1000) %   (x1000) %   (x1000) %  
Vila Nova 3,095 59.4   11,480 58.5   14,575 58.7   10,323 59.8  
TOTAL IRON 3,095 59.4   11,480 58.5   14,575 58.7   10,323 59.8  
 
 
Notes on Mineral Resources and Reserves:
1) Mineral reserves and mineral resources  are as of December 31, 2012
2) Mineral reserves are included in the mineral resources.
3) The mineral reserves and mineral resources are disclosed on a total project basis.
4) The Olympias mineral reserves and mineral resources include 2.408 million tonnes of economically recoverable old tailings that grade 3.4 g/t Au and 14 g/t Ag. These are added into the gold and silver Proven reserve and Measured resource categories, respectively. 
 
Mineral Reserve Notes:
1) Gold price used was $1250/oz except for Eastern Dragon, Tocantinzinho, Skouries underground, and Olympias  projects which used $1000. Silver price was $16.50/oz; Copper price was $3.00/lb; Pb and Zn prices were $1,500/t for Olympias, $1,700/t for Stratoni.
2) Cut-off grades (gold g/t): Kisladag: 0.20 g/t oxide, 0.31 g/t sulphide; Efemcukuru: 3.5 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: 0.7 g/t open pit, 2.3g/t underground; White Mountain: 1.5 g/t; Eastern Dragon: 1.0 g/t open pit, 1.7g/t underground; Tocantinzinho: 0.49 g/t sulphide, 0.43 g/t oxide; Skouries: $7.00 NSR open pit, $25.26 NSR underground. Cut-off grade for Stratoni is based on a 16.5% Zn Equivalent grade (=Zn%+Pb%x1.08+Ag%x167). Cut-off for Olympias is geology based due to the sharpness of the mineralized contacts and the high grade nature of the mineralization.
3) Due to a significantly changed resource model the pre-existing reserves for Certej project (46,960,000 tonnes at 1.60 g/t Au and 11.5 g/t Ag) are now deemed as historical. New reserves for Certej will be estimated later in 2013.
4) Qualified Persons: Richard Miller, P.Eng., Manager, Mining for the Company is responsible for the Kisladag, Tanjianshan, Tocantinzinho, Vila Nova Iron, Jinfeng open pit, Perama and Skouries open pit reserves; Norm Pitcher, P.Geo., President for the Company, is responsible for the Jinfeng underground, White Mountain, Eastern Dragon, Efemcukuru, Olympias, Skouries underground and Stratoni reserves.
 
Mineral Resource Notes:
1) Cut-off grades (gold g/t):  Kisladag: 0.25 g/t; Efemcukuru: 2.5 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 ; Certej: 0.7 g/t; Skouries: 0.20 g/t Au Equivalent grade open pit, 0.60 Au Equivalent grade underground  (=Au g/t + 1.6xCu %). Resource cut-offs for Olympias and Stratoni are geology based due to the sharpness of the mineralized contacts and the high grade nature of the mineralization.  
2) Qualified Persons: Stephen Juras, Ph.D., P.Geo. and Director, Technical Services for the Company is responsible for all of the Company''s mineral resources.

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Romania, 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, Chief Executive Officer

Eldorado will host a conference call on Friday, February 22, 2013 to discuss the 2012Year-End Financial and Operating Results at 11:00 a.m. PDT (2:00 p.m. EDT ). You may participate in the conference call by dialling 416-340-8530 in Toronto or 1-888-340-9642 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, 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 1, 2013 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 6960036.

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 statements or information with respect to the Company''s 2012 Year-End and Fourth Quarter 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, including assumptions about the legal restrictions regarding the payment of dividends by the Company; assumptions about the price of gold; anticipated costs and expenditures; estimated production, mineral reserves and metallurgical recoveries; financial position, reserves and resources and gold production; and the ability to achieve our goals. Although 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 statements 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; risks of not meeting production and cost targets; 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 and operating in foreign countries; 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 30, 2012. 

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.

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 30, 2012 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 (ELD.TO) and the New York Stock Exchange (EGO).

Request for information packages: laurelw@eldoradogold.com

PRODUCTION HIGHLIGHTS
 
  First
Quarter
2012
Second
Quarter
2012
Third
Quarter
2012
Fourth
Quarter
2012
Fourth
Quarter
2011

2012

2011
Gold Production              
Ounces Sold 150,661 132,919 154,841 186,973 168,712 625,394 658,919
Ounces Produced1 155,535 140,694 169,565 190,530 168,451 656,324 658,652
Cash Operating Cost ($/oz)2,4,5 452 480 493 502 418 483 405
Total Cash Cost ($/oz)3,4,5 529 550 567 566 486 554 472
Realized Price ($/oz - sold) 1,707 1,612 1,670 1,696 1,686 1,674 1,581
Kişladağ Mine, Turkey              
Ounces Sold 65,164 61,991 83,750 78,151 80,572 289,056 284,917
Ounces Produced 65,707 61,575 84,016 77,996 80,339 289,294 284,648
Tonnes to Pad 3,140,492 3,259,574 3,245,700 2,960,809 3,374,541 12,606,575 12,430,447
Grade (grams / tonne) 1.13 1.30 1.05 1.32 0.97 1.20 0.95
Cash Operating Cost ($/oz)4,5 339 333 334 324 353 332 374
Total Cash Cost ($/oz)3,4,5 374 357 363 353 379 361 398
Efemcukuru Mine, Turkey              
Ounces Sold - - - 37,046 - 37,046 -
Ounces Produced1 4,293 8,222 14,442 39,913 - 66,870 -
Tonnes Milled 70,646 95,131 93,779 92,600 - 352,156 -
Grade (grams / tonne) 8.74 9.60 9.28 9.27 - 9.26 -
Cash Operating Cost ($/oz)4,5 - - - 583 - 583 -
Total Cash Cost ($/oz)3,4,5 - - - 613 - 613 -
Tanjianshan Mine, China              
Ounces Sold 28,816 27,172 28,944 25,679 27,564 110,611 114,969
Ounces Produced 28,816 27,172 28,944 25,679 27,567 110,611 114,972
Tonnes Milled 262,793 245,457 283,654 264,943 284,138 1,056,847 1,005,236
Grade (grams / tonne) 4.00 3.73 3.55 3.42 3.56 3.67 3.96
Cash Operating Cost ($/oz)4,5 408 432 396 427 415 415 377
Total Cash Cost ($/oz)3,4,5 605 621 593 632 616 612 567
Jinfeng Mine, China              
Ounces Sold 35,197 25,661 25,805 21,149 38,672 107,812 177,758
Ounces Produced 35,235 25,630 25,821 21,168 38,641 107,854 177,757
Tonnes Milled 368,756 337,560 356,575 359,903 383,226 1,422,794 1,544,965
Grade (grams / tonne) 3.17 2.68 2.43 2.30 3.63 2.65 4.06
Cash Operating Cost ($/oz)4,5 643 786 946 986 525 817 442
Total Cash Cost ($/oz)3,4,5 715 858 1,044 1,088 596 901 507
White Mountain Mine, China              
Ounces Sold 21,484 18,095 16,342 24,948 21,904 80,869 81,275
Ounces Produced 21,484 18,095 16,342 24,948 21,904 80,869 81,275
Tonnes Milled 158,114 188,038 210,114 198,407 184,956 754,673 708,882
Grade (grams / tonne) 4.46 3.60 3.14 4.34 4.29 3.85 4.37
Cash Operating Cost ($/oz)4,5 543 622 766 607 472 625 474
Total Cash Cost ($/oz)3,4,5 588 666 813 652 519 671 517
Olympias, Greece              
Ounces Sold - - - - - - -
Ounces Produced1 - - - 826 - 826 -
Tonnes Milled - - - 28,331 - 28,331 -
Grade (grams / tonne) - - - 5.07 - 5.07 -
Cash Operating Cost ($/oz)4,5 - - - - - - -
Total Cash Cost ($/oz)3,4,5 - - - - - - -
   
1 Ounces produced include pre-commercial production in Efemcukuru and Olympias.
2 Cost figures calculated in accordance with the Gold Institute Standard.
3 Cash Operating Costs, plus royalties and the cost of off-site administration.
4 Cash operating costs and total cash costs are non-GAAP measures. See the section "Non-GAAP Measures" of this Review.
5 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)
 
  Note December 31, 2012   December 31, 2011  
    $   $  
ASSETS          
Current assets          
  Cash and cash equivalents 6 816,843   393,763  
  Restricted cash 7, 16 241   55,390  
  Marketable securities 8 1,988   2,640  
  Accounts receivable and other 9 112,324   42,309  
  Inventories 10 220,766   190,968  
    1,152,162   685,070  
Investments in significantly influenced companies 11 27,949   18,808  
Deferred income tax assets 19 3,149   4,259  
Restricted assets and other 12 31,846   38,430  
Defined benefit pension plan 18 4,571   -  
Property, plant and equipment 13 5,868,742   2,847,910  
Goodwill 14 839,710   365,928  
    7,928,129   3,960,405  
LIABILITIES & EQUITY          
Current liabilities          
  Accounts payable and accrued liabilities 15 224,567   168,367  
  Current debt 16 10,341   81,031  
    234,908   249,398  
Debt 16 582,974   -  
Asset retirement obligations 17 79,971   43,213  
Defined benefit pension plan 18 -   19,969  
Deferred income tax liabilities 19 816,941   336,579  
    1,714,794   649,159  
Equity          
Share capital 20 5,300,957   2,855,689  
Treasury stock   (7,445 ) (4,018 )
Contributed surplus   65,382   30,441  
Accumulated other comprehensive loss   (24,535 ) (10,069 )
Retained earnings   594,876   382,716  
Total equity attributable to shareholders of the Company   5,929,235   3,254,759  
Attributable to non-controlling interests   284,100   56,487  
    6,213,335   3,311,246  
    7,928,129   3,960,405  
       
Approved on behalf of the Board of Directors   
 
(Signed) Robert R. Gilmore  Director                                                                                       (Signed) Paul N. Wright Director
       
Date of approval:   February 21, 2013   
 
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 2012   2011  
    $   $  
Revenue          
  Metal sales   1,147,541   1,103,737  
           
Cost of sales          
  Production costs 28 427,946   346,484  
  Depreciation and amortization   113,529   122,414  
    541,475   468,898  
Gross profit   606,066   634,839  
           
Exploration expenses   39,521   30,773  
General and administrative expenses   70,135   59,239  
Defined benefit pension plan expense 18 1,900   2,088  
Share based payments 21 21,794   19,722  
Acquisition costs 5 21,247   -  
Foreign exchange (gain) loss   (2,780 ) 5,367  
Operating profit   454,249   517,650  
           
Loss (gain) on disposal of assets   509   (2,729 )
Gain on marketable securities and other investments   (176 ) (664 )
Loss on investments in significantly influenced companies 5,627   4,225  
Other income   (6,870 ) (2,869 )
Asset retirement obligation accretion 17 1,842   1,546  
Interest and financing costs 29 6,983   5,331  
           
Profit before income tax   446,334   512,810  
Income tax expense 19 128,276   165,587  
Profit for the year   318,058   347,223  
           
Attributable to:          
Shareholders of the Company   305,302   318,662  
Non-controlling interests   12,756   28,561  
Profit for the year   318,058   347,223  
           
Weighted average number of shares outstanding 30        
Basic   689,007   549,791  
Diluted   690,669   551,625  
           
Earnings per share attributable to shareholders of the Company: 30        
Basic earnings per share   0.44   0.58  
Diluted earnings per share   0.44   0.58  
 
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 2012   2011  
    $   $  
           
Profit for the year   318,058   347,223  
Other comprehensive loss:          
Change in fair value of available-for-sale financial assets (net          
of income taxes of nil and $12)   (1,429 ) (977 )
Realized gains on disposal of available-for-sale financial assets transferred to net income   (56 ) (794 )
Actuarial losses on defined benefit pension plans 18 (12,981 ) (6,661 )
Total other comprehensive loss for the year   (14,466 ) (8,432 )
Total comprehensive income for the year   303,592   338,791  
           
Attributable to:          
Shareholders of the Company   290,836   310,230  
Non-controlling interests   12,756   28,561  
    303,592   338,791  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
Eldorado Gold Corporation
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
 
For the year ended December 31 Note 2012   2011  
    $   $  
Cash flows generated from (used in):          
Operating activities          
Profit for the year   318,058   347,223  
Items not affecting cash          
Asset retirement obligation accretion   1,842   1,546  
Depreciation and amortization   113,529   122,414  
Unrealized foreign exchange (gain) loss   (1,072 ) 6,500  
Deferred income tax (recovery) expense   (14,311 ) 1,804  
Loss (gain) on disposal of assets   509   (2,729 )
Loss on investment in significantly influenced companies   5,627   4,225  
Gain on marketable securities and other investments   (176 ) (664 )
Share based payments   21,794   19,722  
Defined benefit pension plan expense   1,900   2,088  
    447,700   502,129  
           
Changes in non-cash working capital 22 (152,472 ) 9,948  
    295,228   512,077  
Investing activities          
Net cash received on acquisition of subsidiary 5 18,789   -  
Purchase of property, plant and equipment   (426,174 ) (272,818 )
Proceeds from the sale of property, plant and equipment   859   147  
Proceeds on pre-production sales   54,705   -  
Purchase of marketable securities   -   (1,823 )
Proceeds from the sale of marketable securities   1,270   8,154  
Funding of non-registered supplemental retirement plan          
investments, net   14,486   (7,045 )
Investments in significantly influenced companies   (14,768 ) (16,830 )
Decrease (increase) in restricted cash   55,149   (2,957 )
    (295,684 ) (293,172 )
Financing activities          
Issuance of common shares for cash   22,145   31,600  
Dividend paid to non-controlling interests   (9,399 ) (8,095 )
Dividend paid to shareholders   (93,142 ) (61,167 )
Purchase of treasury stock   (6,830 ) (6,438 )
Long-term and bank debt proceeds   650,000   5,782  
Long-term and bank debt repayments   (120,430 ) (98,169 )
Loan financing costs   (18,808 ) (2,999 )
    423,536   (139,486 )
Net increase in cash and cash equivalents   423,080   79,419  
Cash and cash equivalents - beginning of year   393,763   314,344  
           
Cash and cash equivalents - end of year   816,843   393,763  
 
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, Note   2012   2011  
      $   $  
Share capital            
Balance beginning of year     2,855,689   2,814,679  
  Shares issued upon exercise of share options, for cash     22,145   30,115  
  Transfer of contributed surplus on exercise of options     23,221   9,410  
  Shares issued on acquisition of European Goldfields Ltd. 5   2,380,140   -  
  Tranfer of contributed surplus on exercise of deferred phantom units     19,762   -  
  Shares issued upon exercise of warrants, for cash     -   1,485  
Balance end of year     5,300,957   2,855,689  
             
Treasury stock            
Balance beginning of year     (4,018 ) -  
  Purchase of treasury stock     (6,830 ) (6,438 )
  Shares redeemed upon exercise of restricted share units     3,403   2,420  
Balance end of year     (7,445 ) (4,018 )
             
Contributed surplus            
Balance beginning of year     30,441   22,967  
  Share based payments     21,092   19,304  
  Shares redeemed upon exercise of restricted share units     (3,403 ) (2,420 )
  Options issued on acquisiton of European Goldfields Ltd. 5   31,130   -  
  Deferred phantom units granted on acquisition of European Goldfields Ltd. 5   29,105   -  
  Transfer to share capital on exercise of options and deferred phantom units     (42,983 ) (9,410 )
Balance end of year     65,382   30,441  
             
Accumulated other comprehensive loss            
Balance beginning of year     (10,069 ) (1,637 )
  Other comprehensive loss for the year     (14,466 ) (8,432 )
Balance end of year     (24,535 ) (10,069 )
             
Retained earnings            
Balance beginning of year     382,716   125,221  
  Dividends paid     (93,142 ) (61,167 )
  Profit attributable to shareholders of the Company     305,302   318,662  
Balance end of year     594,876   382,716  
Total equity attributable to shareholders of the Company     5,929,235   3,254,759  
             
Non-controlling interests            
Balance beginning of year     56,487   36,021  
  Profit attributable to non-controlling interests     12,756   28,561  
  Dividends declared to non-controlling interests     (9,399 ) (8,095 )
  Acquired non-controlling interest 5   224,256   -  
Balance end of year     284,100   56,487  
             
Total equity     6,213,335   3,311,246  
 
The accompanying notes are an integral part of these consolidated financial statements.

Click here to view a PDF of the Consolidated Financial Statements and Management''s Discussion and Analysis for the year ended December 31, 2012: http://media3.marketwire.com/docs/2012YEFinancials.pdf

Contact:
Eldorado Gold Corporation
Nancy Woo
Vice President Investor Relations
604.601.6650 or 1.888.353.8166
604.687.4026
nancyw@eldoradogold.com
www.eldoradogold.com

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