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Eldorado Gold Corporation: 2012 Second Quarter Financial and Operating Results

Profits and Cash flows Impacted by Lower Gold Production

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/27/12 --

(all figures in United States dollars unless otherwise noted)

Eldorado (TSX:ELD)(NYSE:EGO)(ASX:EAU) reports profit attributable to shareholders of the Company of $46.6 million for the period, and generates $82.1 million in cash from operating activities before changes in non-cash working capital.

Q2 2012 Key Performance Indicators and Subsequent Events

--  Gold production of 140,694 ounces at an average cash operating cost of
    $480 per ounce (Q2 2011 gold production - 162,429 ounces at $397 per
    ounce). 
--  Gold sales of 141,717 ounces at $1,612 per ounce, including 8,798 ounces
    of Efemcukuru sales related to pre-commercial production (Q2 2011 gold
    sales - 162,164 ounces at $1,510 per ounce). 
--  Profit attributable to shareholders of the Company of $46.6 million or
    $0.07 per share (Q2 2011 - $74.9 million or $0.14 per share) was
    impacted by lower production from Jinfeng as well as higher corporate,
    exploration and tax expenses. 
--  Generated $82.1 million in cash from operating activities before changes
    in non-cash working capital - a decrease of 28% over the same quarter in
    2011. 
--  Certej Project, Romania was granted the Environmental Permit on July 9,
    2012. 
--  Declared a dividend of Cdn$0.06 per common share on July 26, 2012.

Outlook

The Company has revised its 2012 production guidance to 660,000 ounces of gold at average cash operating costs of $465 per ounce, due to delayed treatment of Efemcukuru concentrate at the Kisladag mine and the delayed completion of construction of the Eastern Dragon project. The Company's Kisladag, Tanjianshan, White Mountain and Jinfeng mines are forecast to produce 595,000 ounces at a cash operating cost of $471 per ounce. This performance compares favourably with beginning of year mid-range guidance of 595,000 ounces at cash operating costs of $482 per ounce. This production forecast does not include any allowance for production from the recently commissioned Olympias processing plant.

Financial Results

Net income for the quarter was $46.6 million (or $0.07 per share), compared with $74.9 million (or $0.14 per share) in the second quarter of 2011, a decrease of 38%. The decrease in net income year over year was due to lower earnings before taxes from gold mining operations ($18.9 million lower), as well as higher general and administrative expense ($6.1 million higher), exploration expense ($5.5 million higher) and tax expense ($5.1 million higher).

Revenues from gold sales for the quarter of $214.2 million were down $30.7 million or 13%, from the second quarter of 2011 due to lower sales volumes partially offset by higher prices. The Company sold 132,919 ounces in the second quarter of 2012 as compared with 162,164 in the second quarter of 2011. The table below details the sales volumes by mine as compared to the previous year.

-------------------------------------------------------------------------
Sales volumes by mine     3 months ended June 30, 6 months ended June 30,
-------------------------------------------------------------------------
                                 2012        2011        2012        2011
-------------------------------------------------------------------------
Gold ounces sold(i)           132,919     162,164     283,580     310,694
-------------------------------------------------------------------------
- Kisladag                     61,991      66,392     127,155     117,224
-------------------------------------------------------------------------
- Tanjianshan                  27,172      31,977      55,988      60,470
-------------------------------------------------------------------------
- Jinfeng                      25,661      46,381      60,858      94,899
-------------------------------------------------------------------------
- White Mountain               18,095      17,414      39,579      38,101
-------------------------------------------------------------------------
Average price per oz.          $1,612      $1,510      $1,662      $1,456
-------------------------------------------------------------------------
Gold revenue (millions)        $214.2      $244.9      $471.4      $452.4
-------------------------------------------------------------------------
(i) Not including 8,798 ounces of gold (3 months ending June 30, 2012) and  
12,381 ounces of gold (6 months ending June 30, 2012) of Efemcukuru         
precommercial production.                                                   

Operating Performance

Kisladag

Kisladag produced 61,575 ounces of gold at a cash operating cost of $333 per ounce in the quarter as compared to 66,688 ounces at a cash operating cost of $389 per ounce during Q2 2011. Gold production at Kisladag during the second quarter of 2012 was lower than the same quarter of 2011 mainly due to the stacking and leaching schedule. The actual ounces placed on the leach pad were higher in the second quarter 2012 than in the second quarter 2011 and the mine will see the benefit of these ounces in the third and fourth quarter of 2012.

Tanjianshan(TJS)

Tanjianshan produced 27,172 ounces of gold at a cash operating cost of $432 per ounce in the quarter as compared to 31,977 ounces at a cash operating cost of $343 per ounce in Q2 2011. Gold production at Tanjianshan during the second quarter of 2012 was slightly lower than the same quarter of 2011 as a result of lower head grades and mill throughput, partially offset by higher recovery rates.

Jinfeng

Jinfeng produced 25,630 ounces of gold at a cash operating cost of $786 per ounce during the quarter compared to 46,381 ounces at a cash operating cost of $401 during Q2 2011. Gold production at Jinfeng in the second quarter 2012 was lower than the same quarter of 2011 due to lower head grades and mill throughput. The open pit is currently in a waste stripping phase and lower grade stockpile material is being treated to make up for the lack of open pit ore.

White Mountain

White Mountain produced 18,095 ounces of gold at a cash operating cost of $622 per ounce during the quarter compared to 17,414 ounces at $518 per ounce during Q2 2011. This increase in production was largely as a result of improved recoveries due to the caustic pre-treatment plant placed into production in the second half of 2011.

Efemcukuru

During the quarter Efemcukuru recovered approximately 27,000 ounces in concentrate which was shipped to Kisladag for final treatment, and sold 8,798 ounces, which were considered sales from pre- commercial production for accounting purposes. At the end of the quarter there were approximately 42,000 ounces of in-situ gold contained in concentrate stored at Kisladag. Forecast 2012 production for Efemcukuru is now 65,000 ounces. Based on mine site production levels, year end inventory of concentrate remaining at Kisladag will total approximately 40,000 ounces. Work is ongoing to determine the most appropriate means to accelerate recovery of gold from the inventory.

The mine and mill operated at expected levels during the quarter. At the Kisladag concentrate treatment plant an additional filter press unit arrived during the quarter and is expected to be operational early in the third quarter. Improvements are being made to the leaching circuit to improve recoveries to design levels.

Vila Nova

During the quarter Vila Nova processed 176,418 wet metric tonnes and sold 172,024 dry metric tonnes of iron ore at an average price of $85 per dry metric tonne compared to 153,013 wet metric tonnes produced and 43,418 dry metric tonnes sold in Q2 2011 at an average price of $130 per dry metric tonne. Iron ore production in the second quarter of 2012 increased at Vila Nova compared to the same quarter of 2011, mainly as a result of improved efficiencies in both the mine and treatment plant. Four shipments were made during the quarter, two of lump ore and two of sinter fines. Operating costs averaged $62 per dry metric tonne (Q2 2011 - $62 per dry metric tonne).

Stratoni

During the second quarter, Stratoni mined 66,529 tonnes of run-of-mine ore and produced 17,278 tonnes of lead and zinc concentrate at an average cash cost of $593 per tonne of concentrate produced. During the same period, Stratoni sold 15,821 tonnes of concentrate at an average price of $843 per tonne (4,678 tonnes of lead concentrate at an average price of $1,423 per dry metric tonne and 11,143 tonnes of zinc concentrate at an average price of $682 per dry metric tonne, minus prior period finalised sales adjustments).

Development

Eastern Dragon

Activity was limited during the quarter as we continued to focus on receiving the Project Permit Approval (PPA). Subsequent to the quarter end Eldorado was informed by the Heilongjiang Provincial Development and Reform Commission (PDRC) that it would require the formal approval of the PPA by the National Development and Reform Commission (NDRC) in Beijing. We are currently in the process of preparing the necessary paperwork to submit to NDRC, as well as determining the timeline for review and approval.

Tocantinzinho

As part of the Environmental Impact Assessment (EIA), a Public Hearing was held on June 14, 2012 in Para State with participation by local and State government authorities and local stakeholders. There were no statements of opposition to the Tocantinzinho Project registered during the event.

Assessment of the Tocantinzinho EIA application will continue under the guidance of the State environmental agency. Processing of the application is expected to be completed by the end of the year. Preparation of the feasibility study is ongoing with completion scheduled for late in the third quarter.

Perama Hill

Receipt of the PEIA approval for Perama Hill in February marked a major milestone in the permitting process for the project. The EIA application was subsequently submitted to the Ministry of Environment and Forestry for approval. This application will be processed under the fast track program for capital investment projects. The application continues to be monitored closely and it appears that changes in Greece resulting from recent elections have not adversely impacted the operation of the bureaucracy or progress on the application.

Field work on the Perama Hill site resumed after several years of inactivity. Geotechnical drilling and analysis is underway and we expect exploration drilling in the Perama South deposit to start in the third quarter.

Olympias

Rehabilitation of the Olympias underground mine and refurbishment of the processing plant continued during the quarter. In the mine, 532 meters (m) of underground access was rehabilitated or developed. Portal development was completed for the 8.5 km tunnel linking Stratoni and Olympias during the quarter and mining of the adit began. Metallurgical testwork to evaluate the proposed new processing facility at Stratoni continued during the second quarter.

Commissioning of the Olympias processing plant started late in the second quarter and we expect concentrate production from the historic tailings to commence early in the third quarter.

Skouries

During the second quarter the initial mobilization of support equipment, facilities and personnel was conducted. The site survey began and the layout of the main access road was finalized. Tree cutting began on forest land acquired from the forestry department.

Certej

On July 9, 2012 the Environmental Permit for Certej was approved by the Regional Department of Environment. This was the final major milestone in the environmental permitting process for Certej. Land acquisition activities continue to progress satisfactorily as a precursor to our construction permit application.

A drill program to provide metallurgical samples was completed during the quarter and exploration drilling is ongoing.

Exploration Update

The Company completed 47,300 meters of exploration drilling during the quarter at our exploration projects and mine operations in Turkey, Greece, Romania, China, and Brazil.

Turkey

Exploration in Turkey during the quarter focused on drilling at our Efemcukuru mine site, identification of new exploration target areas at Kisladag and sampling and mapping activities at several reconnaissance projects.

At Efemcukuru, 44 drillholes (7,500m) were completed during the quarter on the Kestane Beleni northwest extension and the Kokarpinar vein targets. The most significant result was the identification of a new high-grade zone in a previously untested portion of the Kokarpinar vein, with drillhole intercepts of 1.64m @ 298.35 g/t Au and 310.54 g/t Ag (KV-419); 1.91m @ 8.84 g/t Au and 55.66 g/t Ag (KV-417); and 0.75m @ 8.82 g/t Au and 13.10 g/t Ag (KV-420). These three drillholes pierce the vein at the same elevation over a 200m strike length, and the high grade shoot they define is open up-dip, down-dip, and to the north.

At our reconnaissance projects, drilling commenced late in the quarter at the Sebin porphyry+epithermal prospect, and drill target definition, permitting and access road construction were completed at the Atalan, Dolek and Gaybular projects.

Greece

Drilling continued during the quarter on the Piavitsa prospect, with twelve holes completed and approximately 3,000m drilled. Drilling is targeting polymetallic, Au+Ag rich, carbonate replacement sulphide mineralization along the Stratoni fault zone, similar to that typical of the Olympias deposit. All drillholes have intersected the fault zone at or near the projected depth and have cut intervals of massive sulphide, disseminated sulphide or oxide material within the fault zone. Assay results to date have demonstrated that high gold values can occur in any of these forms of mineralization. Notable results include intercepts of: 4.6m @ 4.06 g/t Au and 208.0 g/t Ag (PHG-060); 7.00m @ 4.94 g/t Au and 50.0 g/t Ag (PHG-061); 5.0m @ 4.07 g/t Au and 2.00 g/t Ag (PHG-062); and 12 m @ 1.86 g/t Au (PHG-068). Drilling in the second half of the year will continue to test the Stratoni fault zone with a drillhole spacing of approximately 200m x 200m, to provide drillhole density to support a year-end inferred resource estimate.

At the Fisoka Cu+Au porphyry prospect, drilling commenced during the quarter in an area where historical drilling by TVX and a Greek precursor company delineated a shallow, supergene enriched chalcocite zone. Initial holes are targeting areas of the enriched zone where previous programs suffered from poor core recovery, as well as deeper underlying areas that were not previously tested.

At Perama Hill, geological mapping and prospecting were completed over Perama Hill and Perama South. Initial results from geochemical sampling included high Au values (5-10 g/t Au) from stratabound mineralization and crosscutting breccia bodies at Perama South. Additional sampling is planned prior to outlining a drilling program to test for extensions of these mineralized zones.

Romania

Our exploration activities in Romania are focused on projects in the Certej Mining District. At the Certej deposit, drill testing of two areas began during the quarter. The target areas are a mineralized zone along the western edge of the proposed open pit, plus a poorly-drilled zone of gold mineralization that links the lower parts of the West and Main Zones. This zone lies beneath the present pit design, and is largely classified as an Inferred Mineral Resource.

China

Exploration drilling in China during the quarter included programs in the Guizhou, Jilin, and Qinghai regions. In Guizhou, exploration drilling was conducted within the Jinfeng mining license and on surrounding exploration licenses.

At the Jinfeng mine, 40 drillholes totaling over 10,400 metres of drilling were completed from surface and underground rigs. Much of the drill targeting was based on the revised structural model for the deposit. Positive results were obtained from all areas tested. Significant results during the quarter included intercepts of 29.0m @ 5.92 g/t Au (HDDS0253) and 19.0m @ 6.19 g/t Au (HDDS0258) from just below the design pit in the Rongban portion of the deposit; 55m @ 5.3 g/t Au (HDDU-0155), and 80 m @ 2.63 g/t Au (HDDU-0160) from the F3 mineralized zone; 4.0m @ 12.58 g/t Au (HDDU0141) and 6.0m @ 6.3 g/t Au (HDDU0139) along the down-dip projection of the F7 mineralized fault; and 11.0m @ 12.34 g/t Au (HDDU0130) and 11.0m @ 21.56 g/t Au (HDDU0129) from an interpreted fault linking the F3 and F7 mineralized faults.

In Qinghai (Tanjianshan), exploration drilling commenced during the quarter at the Xijingou deposit and at the Qinlongtan North target area, with over 4,000m completed between the areas. Assay results are pending.

Brazil

Exploration efforts at Tocantinzinho continue to focus on drill testing geochemical and geophysical targets peripheral to the Tocantinzinho deposit. Six drill holes were completed during the quarter. Diamond drilling at the Agua Branca project (35km south of Tocantinzinho) has focused on expanding known mineralization at Camarao Hill. Twelve drill holes were completed in the second quarter for over 3,000 m of drilling.

Corporate Developments

Eldorado is pleased to announce the following senior management appointments:

Dr. Tim Baker has joined the Vancouver office as Chief Geoscientist. Tim most recently held the post of Head of the Geological Survey of South Australia, and prior positions as Exploration Manager for Sovereign Metals Ltd. and Senior Lecturer at James Cook University. Tim will provide technical and scientific oversight to our exploration programs and he will contribute to the training and development of our geologic staff.

Mr. Britt Reid will join our team in Greece as General Manager, Skouries Project. Britt has an extensive background in project development and mine management, including general manager roles at the Andacollo and Quebrada Blanca copper mines. His experience will be particularly useful as we develop the Skouries copper-gold deposit.

About Eldorado

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil and Romania. 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.

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

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, Chief Executive Officer

Conference Call

Eldorado will host a conference call on Friday, July 27, 2012 to discuss the 2012 Second Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialing 416-340-9432 in Toronto or 1-877-440-9795 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 August 3, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 3971093.

Qualified Person(s)

Dr. Peter Lewis, P.Geo., V.P. Exploration for Eldorado Gold Corporation, is the Qualified Person for the technical disclosure of exploration results in this news release. Dr. Lewis is the Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Regulators, responsible for preparing or supervising the preparation of the scientific or technical information contained in this document and verifying the technical data disclosed in the document relating to exploration results. Dr. Lewis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Lewis consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.

Assay results reported in this release for the Chalkidiki district were diamond drill core samples prepared at Eldorado's sample preparation facilities at Stratoni and Cannakale, and assayed at ACME laboratories in Vancouver. Assay results for the Efemcukuru project were diamond drill core samples prepared at Eldorado's sample preparation facility at Cannakale and assayed at the ALS laboratory in Vancouver, Canada. Assay results for the Jinfeng project were diamond drill core samples prepared at our sample preparation facility at Jinfeng and assayed at the ALS facility in Guangzhou, China. All samples are sawn half core. Certified standard reference materials, field duplicate, and blank samples were inserted prior to shipment from the preparation site at Jinfeng, Stratoni, or Cannakale.

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 Q2, 2012 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, 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 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.

Information packages: [email protected]

Eldorado Gold Corporation                                                   
Unaudited Condensed Consolidated Balance Sheets                             
(Expressed in thousands of U.S. dollars)
----------------------------------------------------------------------------
                                                                            
                                                     June 30,  December 31, 
                                            Note         2012          2011 
                                                            $             $ 
ASSETS                                                                      
Current assets                                                              
 Cash and cash equivalents                            314,590       393,763 
 Restricted cash                               6       57,059        55,390 
 Marketable securities                                  5,418         2,640 
 Accounts receivable and other                         60,979        42,309 
 Inventories                                          218,406       164,057 
                                                ----------------------------
                                                      656,452       658,159 
Non-current inventories                                22,273        26,911 
Investments in significantly influenced                                     
 companies                                             21,052        18,808 
Deferred income tax assets                              3,449         4,259 
Restricted assets and other                            32,388        38,430 
Defined benefit pension plan                   8        4,634             - 
Property, plant and equipment                       5,914,978     2,847,910 
Goodwill                                              640,479       365,928 
                                                ----------------------------
                                                    7,295,705     3,960,405 
                                                ----------------------------
                                                ----------------------------

LIABILITIES & EQUITY                                                        
Current liabilities                                                         
Accounts payable and accrued liabilities              161,823       168,367 
Current debt                                   7       70,005        81,031 
                                                ----------------------------
                                                      231,828       249,398 
Debt                                           7       50,000             - 
Asset retirement obligations                           50,640        43,213 
Defined benefit pension plan                   8            -        19,969 
Deferred income tax liabilities                       871,371       336,579 
                                                ----------------------------
                                                    1,203,839       649,159 
                                                ----------------------------
Equity                                                                      
Share capital                                  9    5,282,368     2,855,689 
Treasury stock                                         (7,355)       (4,018)
Contributed surplus                                    70,444        30,441 
Accumulated other comprehensive loss                  (16,931)      (10,069)
Retained earnings                                     447,311       382,716 
                                                ----------------------------
Total equity attributable to shareholders                                   
 of the Company                                     5,775,837     3,254,759 
Attributable to non-controlling interests             316,029        56,487 
                                                ----------------------------
                                                    6,091,866     3,311,246 
                                                ----------------------------
                                                    7,295,705     3,960,405 
                                                ----------------------------
                                                ----------------------------

Approved on behalf of the Board of Directors

(Signed) Robert R. Gilmore
Director                      

(Signed) Paul N. Wright
Director 

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

Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Income Statements                         
(Expressed in thousands of U.S. dollars except per share amounts)          
---------------------------------------------------------------------------
                                                                           
                                Three months ended        Six months ended 
                                          June 30,                June 30, 
                           ------------------------------------------------
                                                                           
                                  2012        2011        2012        2011 
                                     $           $           $           $ 
Revenue                                                                    
 Metal sales                   244,191     252,556     515,740     471,724 
Cost of sales                                                              
 Production costs               94,486      81,431     185,725     155,742 
 Depreciation and                                                          
  amortization                  25,145      29,843      52,553      61,060 
                           ------------------------------------------------
                               119,631     111,274     238,278     216,802 
                           ------------------------------------------------
Gross profit                   124,560     141,282     277,462     254,922 
                                                                           
Exploration expenses            10,073       4,605      18,769       8,446 
General and administrative                                                 
 expenses                       19,665      13,574      35,827      34,608 
Defined benefit pension                                                    
 plan expense                      626         433       1,261         856 
Share based payments             3,791       4,452      12,814      11,804 
Transaction costs                1,649           -      19,453           - 
Foreign exchange loss                                                      
 (gain)                            806       1,381        (301)      2,028 
                           ------------------------------------------------
Operating profit                87,950     116,837     189,639     197,180 
Loss (gain) on disposal of                                                 
 assets                            659      (3,092)        446      (3,092)
Gain on marketable                                                         
 securities and other                                                      
 investments                         -        (654)     (1,032)     (1,289)
Loss on investments in                                                     
 significantly influenced                                                  
 companies                         463         598       1,744       1,794 
Other income                    (1,431)       (518)     (2,377)     (2,016)
Asset retirement obligation                                                
 accretion                         503         407         871         773 
Interest and financing                                                     
 costs                           1,446       1,525       2,134       3,114 
                           ------------------------------------------------
Profit before income tax        86,310     118,571     187,853     197,896 
Income tax expense              36,805      36,818      64,530      57,443 
                           ------------------------------------------------
Profit for the period           49,505      81,753     123,323     140,453 
                           ------------------------------------------------
                                                                           
Attributable to:                                                           
Shareholders of the Company     46,624      74,865     114,475     127,338 
Non-controlling interests        2,881       6,888       8,848      13,115 
                           ------------------------------------------------
                                49,505      81,753     123,323     140,453 
                           ------------------------------------------------
                           ------------------------------------------------
                                                                           
Weighted average number of                                                 
 shares outstanding                                                        
Basic                          711,449     548,976     662,949     548,654 
Diluted                        713,050     551,696     664,634     551,469 
                                                                           
Earnings per share                                                         
 attributable to                                                           
 shareholders                                                              
of the Company:                                                            
Basic earnings per share          0.07        0.14        0.17        0.23 
Diluted earnings per share        0.07        0.14        0.17        0.23 


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

Eldorado Gold Corporation                                                   
Unaudited Condensed Consolidated Statements of Comprehensive Income         
(Expressed in thousands of U.S. dollars)                                    
----------------------------------------------------------------------------
                                                                            
                                 Three months ended        Six months ended 
                                           June 30,                June 30, 
                            ------------------------------------------------
                                   2012        2011        2012        2011 
                                      $           $           $           $ 
                                                                            
Profit for the period            49,505      81,753     123,323     140,453 
Other comprehensive income                                                  
 loss:                                                                      
Change in fair value of                                                     
 available-for-sale                                                         
 financial assets (net                                                      
 of income taxes of nil and                                                 
 $12; and nil and $12)           (1,024)       (570)     (1,137)       (984)
Realized gains on disposal                                                  
 of available-for-sale                                                      
 financial assets transferred
 to net income                        -        (272)        (24)       (434)
Actuarial losses on defined                                                 
 benefit pension plans           (5,701)          -      (5,701)          - 
                            ------------------------------------------------
Total other comprehensive                                                   
 loss for the period             (6,725)       (842)     (6,862)     (1,418)
                            ------------------------------------------------
Total comprehensive income                                                  
 for the period                  42,780      80,911     116,461     139,035 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Attributable to:                                                            
Shareholders of the Company      39,899      74,023     107,613     125,920 
Non-controlling interests         2,881       6,888       8,848      13,115 
                            ------------------------------------------------
                                 42,780      80,911     116,461     139,035 
                            ------------------------------------------------
                            ------------------------------------------------

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

Eldorado Gold Corporation                                                   
Unaudited Condensed Consolidated Statements of Cash Flows                   
(Expressed in thousands of U.S. dollars)
----------------------------------------------------------------------------
                                   
                                 Three months ended        Six months ended 
                                           June 30,                June 30, 
                            ------------------------------------------------
                        Note       2012        2011        2012        2011 
                                      $           $           $           $ 
Cash flows generated                                                        
 from (used in):                                                            
Operating activities                                                        
Profit for the period            49,505      81,753     123,323     140,453 
Items not affecting                                                         
 cash                                                                       
Asset retirement                                                            
 obligation accretion               503         407         871         773 
Depreciation and                                                            
 amortization                    25,145      29,843      52,553      61,060 
Unrealized foreign                                                          
 exchange (gain) loss              (877)      3,028        (363)      4,761 
Deferred income tax                                                         
 expense (recovery)               2,298      (2,211)     (6,688)     (9,705)
Loss (gain) on disposal                                                     
 of assets                          659      (3,092)        446      (3,092)
Loss on investments in                                                      
 significantly                                                              
 influenced companies               463         598       1,744       1,794 
Gain on marketable                                                          
 securities and other                                                       
 investments                          -        (654)     (1,032)     (1,289)
Share based payments              3,791       4,452      12,814      11,804 
Defined benefit pension                                                     
 plan expense                       626         433       1,261         856 
                            ------------------------------------------------
                                 82,113     114,557     184,929     207,415 
                                                                            
Changes in non-cash                                                         
 working capital          11   (123,116)    (30,594)   (142,657)    (16,322)
                            ------------------------------------------------
                                (41,003)     83,963      42,272     191,093 
Investing activities                                                        
Net cash received on                                                        
 acquisition of                                                             
 subsidiary                5          -           -      18,789           - 
Purchase of property,                                                       
 plant and equipment           (114,598)    (47,264)   (167,112)   (125,602)
Proceeds from the sale                                                      
 of property, plant and                                                     
 equipment                          132           -         791          17 
Net proceeds on pre-                                                        
 production sales                13,958           -      20,022           - 
Purchase of marketable                                                      
 securities                      (2,152)       (214)     (2,152)       (214)
Proceeds from the sale                                                      
 of marketable                                                              
 securities                           -       5,407         230       6,345 
Funding of non-                                                             
 registered                                                                 
 supplemental                                                               
 retirement plan                                                            
investments, net                 20,509      (4,980)     14,486      (4,980)
Investments in                                                              
 significantly                                                              
 influenced companies            (2,716)          -      (3,412)     (1,318)
Increase in restricted                                                      
 cash                              (382)          2      (1,669)     (2,998)
                            ------------------------------------------------
                                (85,249)    (47,049)   (120,027)   (128,750)
Financing activities                                                        
Issuance of common                                                          
 shares for cash                 10,741       5,239      16,831       7,985 
Dividend paid to non-                                                       
 controlling interests           (1,271)          -      (1,271)     (3,622)
Dividend paid to                                                            
 shareholders                         -           -     (49,880)    (27,741)
Purchase of treasury                                                        
 stock                                -        (288)     (6,011)     (6,158)
Long-term and bank debt                                                     
 proceeds                        50,000       1,446      50,000       3,203 
Long-term and bank debt                                                     
 repayments                      (5,524)    (31,789)    (11,087)    (44,716)
                            ------------------------------------------------
                                 53,946     (25,392)     (1,418)    (71,049)
                            ------------------------------------------------
Net (decrease) increase                                                     
 in cash and cash                                                           
 equivalents                    (72,306)     11,522     (79,173)     (8,706)
Cash and cash                                                               
 equivalents -                                                              
 beginning of period            386,896     294,116     393,763     314,344 
                            ------------------------------------------------
                                                                            
Cash and cash                                                               
 equivalents - end of                                                       
 period                         314,590     305,638     314,590     305,638 
                            ------------------------------------------------
                            ------------------------------------------------

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

Eldorado Gold Corporation                                                   
Unaudited Condensed Consolidated Statements of Changes in Equity            
(Expressed in thousands of U.S. dollars)  
----------------------------------------------------------------------------
                                  
                                 Three months ended        Six months ended 
                                           June 30,                June 30, 
                            ------------------------------------------------
                                   2012        2011        2012        2011 
                                      $           $           $           $ 
Share capital                                                               
Balance beginning of                                                        
 period                       5,258,949   2,818,238   2,855,689   2,814,679 
 Shares issued upon                                                         
  exercise of share                                                         
  options, for cash              10,741       4,420      16,831       6,500 
 Transfer of contributed                                                    
  surplus on exercise of                                                    
  options                        11,648       1,547      18,156       2,360 
 Shares issued on                                                           
  acquisition of European                                                  
  Goldfields Ltd.          5          -           -   2,380,140           - 
 Shares issued for                                                          
  deferred phantom units          1,030           -      11,552           - 
 Shares issued upon                                                         
  exercise of warrants,                                                     
  for cash                            -         819           -       1,485 
                            ------------------------------------------------
Balance end of period         5,282,368   2,825,024   5,282,368   2,825,024 
                            ------------------------------------------------
                                                                            
Treasury stock                                                              
Balance beginning of                                                        
 period                          (8,457)     (5,870)     (4,018)          - 
 Purchase of treasury                                                       
  stock                               -        (288)     (6,011)     (6,158)
 Shares redeemed upon                                                       
  exercise of restricted                                                    
  share units                     1,102       1,726       2,674       1,726 
                            ------------------------------------------------
Balance end of period            (7,355)     (4,432)     (7,355)     (4,432)
                            ------------------------------------------------
                                                                            
Contributed surplus                                                         
Balance beginning of                                                        
 period                          80,289      28,326      30,441      22,967 
 Share based payments             3,935       5,775      12,150      11,947 
 Shares redeemed upon                                                       
  exercise of restricted                                                    
  share units                    (1,102)     (1,726)     (2,674)     (1,726)
 Options issued on                                                          
  acquisition of European                                                  
  Goldfields Ltd.          5          -           -      31,130           - 
 Deferred phanton units                                                     
  granted on acquisition                                                    
  of European Goldfields                                                    
  Ltd.                                -           -      29,105           - 
                                                                            
 Transfer to share capital                                                  
  on exercise of options                                                    
  and deferred phantom                                                      
  units                         (12,678)     (1,547)    (29,708)     (2,360)
                            ------------------------------------------------
                                                                            
                                                                            
Balance end of period            70,444      30,828      70,444      30,828 
                            ------------------------------------------------
                                                                            
Accumulated other                                                           
 comprehensive loss                                                         
Balance beginning of                                                        
 period                         (10,206)     (2,213)    (10,069)     (1,637)
 Other comprehensive loss                                                   
  for the period                 (6,725)       (842)     (6,862)     (1,418)
                            ------------------------------------------------
Balance end of period           (16,931)     (3,055)    (16,931)     (3,055)
                            ------------------------------------------------
                                                                            
Retained earnings                                                           
Balance beginning of                                                        
 period                         400,687     149,953     382,716     125,221 
 Dividends paid                       -           -     (49,880)    (27,741)
 Profit attributable to                                                     
  shareholders of the                                                       
  Company                        46,624      74,865     114,475     127,338 
                            ------------------------------------------------
Balance end of period           447,311     224,818     447,311     224,818 
                            ------------------------------------------------
Total equity attributable                                                   
 to shareholders of the                                                     
 Company                      5,775,837   3,073,183   5,775,837   3,073,183 
                            ------------------------------------------------
                                                                            
Non-controlling interests                                                   
Balance beginning of                                                        
 period                         322,547      38,626      56,487      36,021 
 Profit attributable to                                                     
  non-controlling                                                           
  interests                       2,881       6,888       8,848      13,115 
 Dividends declared to                                                      
  non-controlling                                                           
  interests                      (9,399)     (4,473)     (9,399)     (8,095)
 Acquired non-controlling                                                   
  interest                 5          -           -     260,093           - 
                            ------------------------------------------------
Balance end of period           316,029      41,041     316,029      41,041 
                            ------------------------------------------------
                                                                            
Total equity                  6,091,866   3,114,224   6,091,866   3,114,224 
                            ------------------------------------------------
                            ------------------------------------------------

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

Click here for the Unaudited Consolidated Financial Statements for the quarter ended June 30, 2012 in PDF: http://media3.marketwire.com/docs/e726fs.pdf

Contacts:
Eldorado Gold Corporation
Nancy Woo
Vice President Investor Relations
604-601-6650 or 1-888-353-8166
604-687-4026 (FAX)
[email protected]
www.eldoradogold.com

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