VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2012) - Eldorado Gold Corporation (News - Market indicators)(NYSE:EGO)(ASX:EAU) -

(all figures in United States dollars unless otherwise noted)

Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation ("Eldorado" the "Company" or "we"), is pleased to report on the Company's financial and operational results for the first quarter of 2012. Eldorado reported profit attributable to shareholders of the Company of $67.9 million for the period, and generated $102.8 million in cash from operating activities before changes in non-cash working capital.

"During the first quarter, Eldorado produced 155,535 ounces of gold at an average cash operating cost of $452 per ounce. Our gold mines continue to perform to plan and generate significant cash flows which will be applied to the construction of our development projects. With total production ahead of plan and cash operating costs below plan in the quarter, we have had a very good start to 2012, and as a result maintain our guidance to produce 730,000-775,000 oz. @ $430-$450/oz. cash operating cost for the year," said Paul Wright, President and CEO of Eldorado Gold. "With the addition of two gold development projects in Greece and one gold development project in Romania, the acquisition of European Goldfields is a key milestone in the Company's plans to reach its annual production target in excess of 1.5 million ounces of gold by 2016."

Q1 2012 Highlights

• Gold production of 155,535 ounces at an average cash operating cost of $452 per ounce (Q1 2011 gold production - 148,577 ounces at $410 per ounce).
• Completion of the acquisition of European Goldfields Limited (EGU) on February 24, 2012.
• Profit attributable to shareholders of the Company of $67.9 million or $0.11 per share (Q1 2011 - $52.5 million or $0.10 per share) was impacted by $17.8 million in transaction costs related to the EGU acquisition.
• 24% increase in gold revenues over the same quarter in 2011, reflecting higher gold prices.
• 40% increase in earnings from gold mining operations before taxes over the same quarter in 2011.
• 30% increase in cash from operating activities before changes in non-cash working capital over the same quarter in 2011, excluding $17.8 million in transaction costs related to the acquisition of EGU.
• Payment of a Cdn$0.09 dividend per share to shareholders of the Company on February 14, 2012.

Acquisition of European Goldfields Limited

On February 24, 2012, the Company acquired 100% of the issued and outstanding shares of EGU. Under the terms of the Plans of Arrangement (the "Arrangement"), former EGU shareholders received 0.85 of an Eldorado common share and Cdn$0.0001 in cash for each EGU share. Eldorado issued 157,959,316 common shares pursuant to the Arrangement for a total purchase price of approximately $2.4 billion based on the closing market price of Eldorado's shares trading on the Toronto Stock Exchange on February 24, 2012, of Cdn$15.05 per common share. EGU holds a 95% stake in Hellas Gold S.A. (Hellas Gold), which owns the Kassandra mines in Greece comprised of the Stratoni mine, and the Olympias and Skouries development projects, and an 80% stake in Deva Gold S.A. (Deva Gold) which owns the Certej development project in Romania.

The acquisition has been accounted for as a business combination, with Eldorado being identified as the acquirer and EGU as the acquiree in accordance with IFRS 3. For accounting purposes, our consolidated financial statements include 100% of EGU's operating results for the period from February 24, 2012 to March 31, 2012. Also included in the Company's operating results for the first quarter were $17.8 million in transaction costs associated with the acquisition.

Financial Results

Net income for the quarter was $67.9 million or $0.11 per share, compared with $52.5 million or $0.10 per share in the first quarter of 2011. The difference of $15.4 million is an increase of 29% over 2011. Excluding $17.8 million in transaction costs related to the Company's acquisition of EGU, net income increased $30.5 million or 58% over the same quarter in 2011. The increase was mainly due to higher earnings before taxes from gold mining operations. Increased earnings from gold mining operations were driven by higher revenues. Revenues from gold sales for the quarter were up $49.6 million, or 24%, from the first quarter of 2011 due to higher gold prices. Gold sales of 150,661 ounces were slightly higher than the same quarter in 2011, as lower sales volumes at Jinfeng were more than offset by higher sales volumes at Kisladag.

Operating Performance

Kisladag

Kisladag placed 3.1 million tonnes of ore on the leach pad during the quarter at a grade of 1.13 grams per tonne (Q1 2011 - 2.3 million tonnes of ore at 1.04 grams per tonne). Kisladag produced 65,707 ounces of gold at a cash operating cost of $339 per ounce in the quarter as compared to 50,833 ounces at a cash operating cost of $386 per ounce during Q1 2011. Gold production at Kisladag was higher than the same quarter of 2011 due to the impact of the Phase III expansion on throughput to the leach pad. Additionally, production was constrained in the first quarter of 2011 when the Phase III crushing circuit was being installed.

Tanjianshan (TJS)

TJS processed 262,793 tonnes of ore at a grade of 4.00 grams per tonne in the quarter compared to 238,070 tonnes at a grade of 3.90 during Q1 2011. The mine produced 28,816 ounces of gold at a cash operating cost of $408 per ounce in the quarter as compared to 28,493 ounces at a cash operating cost of $402 per ounce in Q1 2011. Gold production at Tanjianshan in the first quarter remained steady year-over-year, with higher tonnes and grade offsetting lower contribution from the Qinlongtan concentrate tailings impoundment as compared with Q1 2011.

Jinfeng

Jinfeng processed 368,756 tonnes of ore at a grade of 3.17 grams per tonne during the quarter compared to 384,400 tonnes at a grade of 4.32 grams per tonne during Q1 2011. The mine produced 35,235 ounces of gold at a cash operating cost of $643 per ounce during the quarter compared to 48,564 ounces at a cash operating cost of $430 during Q1 2011. Open pit mining at Jinfeng was targeted at the bottom of the pit during the quarter. Mining of the current phase will be completed in the second quarter this year after which waste stripping for the cutback will commence. The average treated head grade fell year-over-year as lower grade ore from the ore stockpile was added to the ore fed to the mill to make up for a shortfall in ore tonnes mined.

White Mountain

White Mountain processed 158,114 tonnes of ore at a grade of 4.46 grams of gold per tonne in the quarter compared to 140,211 tonnes at a grade of 5.71 grams per tonne during Q1 2011. The mine produced 21,484 ounces of gold at a cash operating cost of $543 per ounce during the quarter compared to 20,687 ounces at $438 per ounce during Q1 2011. Mill throughput increased year-over-year due to better mill availability. During the same quarter in 2011, some high grade material not predicted by the block model was mined and processed. As a result, the grade of ore mined in the current quarter was lower, but consistent with the mine plan. Recoveries of 86.1% for the quarter increased year-over-year as a result of the construction of a caustic pre-treatment system in the second half of 2011.

Efemcukuru

During the quarter Efemcukuru recovered approximately 18,300 ounces in concentrate which was shipped to Kisladag for final treatment. The Kisladag treatment plant produced 4,293 ounces as it continued commissioning. At the end of the quarter there were approximately 13,000 tonnes of concentrate stored at Kisladag representing 35,000 in-situ ounces. Unseasonably cold and wet weather affected the operations of both the underground mine and processing plant at Efemcukuru due to freezing pipes and excess water storage issues.

Work continued during the quarter on the underground paste fill system which is expected to be operational during the second quarter; however mine production was affected during the first quarter while paste fill was unavailable. Process plant performance at Efemcukuru improved during the quarter, with metallurgical recovery reaching design levels. 

At the Kisladag concentrate treatment plant a bottleneck was identified in the filter press system designed to separate pregnant solution from solid tailings. This unit is currently operating at approximately 60% of design capacity and is scheduled to be replaced in the second quarter of this year. We expect the Kisladag treatment plant to operate at design levels during the second half of the year.

Vila Nova

During the quarter Vila Nova processed 189,747 wet metric tonnes and sold 88,581 dry metric tonnes of iron ore. Iron ore production increased at Vila Nova year-over-year as a result of changes made to the process plant to improve throughput during the rainy season. Lower iron ore prices year-over-year resulted in lower earnings from operations as compared with the first quarter of 2011. Additionally, a higher strip ratio contributed to higher cash cost per tonne. Two shipments of lump iron ore were completed during the quarter. One of these shipments was sold in Europe as a trial shipment to confirm delivery and iron ore quality. The Company plans to further develop sales of iron ore into the European market to take advantage of lower shipping costs. Operating costs averaged $65 per dry metric tonne. At quarter end 153,262 wet metric tonnes of processed ore were in inventory.

Stratoni

Stratoni operating and financial data for the first quarter of 2012 reflect operations subsequent to February 24, 2012. During this period, Stratoni mined 18,942 tonnes of run-of-mine ore and produced 3,862 tonnes of lead and zinc concentrate at an average cash cost of $797 per tonne of concentrate. During the same period, Stratoni sold 5,569 tonnes of concentrate at an average price of $1,109 per tonne (2,802 tonnes of lead concentrate at an average price of $1,553 per dry metric tonne and 2,767 tonnes of zinc concentrate at an average price of $701 per dry metric tonne).

Development

Eastern Dragon

No construction work took place at Eastern Dragon during the first quarter due to the winter season and permitting delays. Pending receipt of the Project Permit Approval (PPA), construction is scheduled to re-commence in the second quarter of this year.

Tocantinzinho

During the quarter, engineering work in support of the Tocantinzinho feasibility study continued to focus on field work and definition of planned infrastructure including the access road to the mine and design and routing of the main power line. Work continued on evaluation of the selected route for the access road. Ground surveys were carried out along the route as well as flora and fauna investigations.

Drilling activity at site included completion of programs to classify foundation ground conditions for plant and ancillary installations, geotechnical evaluation of the pit ore and waste rock, definition of the pit slope stability, and surface and ground water evaluations. 

During the quarter the Para state ministry of Environment (SEMA) continued its study of the Environmental Impact Assessment (EIA). The application for approval was resubmitted following resolution of a jurisdictional issue between levels of government which delayed processing the application and the EIA review by several months. SEMA has now posted the project and will set a date for a public meeting that is expected to be held in the second quarter of 2012. Processing of the EIA is being closely followed by our team in Brazil to ensure issues arising during the course of the review are addressed immediately. Completion of the EIA review and approval is expected before the end of the 2012.

Perama Hill

Approval of the Preliminary Environmental Impact Assessment study (PEIA) was received in February 2012. On March 6, 2012, the Inter Ministerial Committee for Strategic Investments approved the inclusion of the Perama Hill gold project in the Fast Track process. The full EIA was submitted to the Greek Ministry of Environment (MoE) at the end of March 2012. Following approval of the EIA, a series of construction and operations related permits will be applied to the project leading to start of production at the mine. In accordance with the Fast Track law, we anticipate receiving final approvals of the EIA in Q4 2012.

In anticipation of the EIA approval, engineering work has begun on the project, including preparation of the basic engineering package for the mine, plant and infrastructure as well as specification of long lead-time equipment for the project, leading to placement of orders for critical equipment in late 2012. Plans are now underway to carry out site evaluations including geotechnical drilling, metallurgical drilling and surface foundation testing.

Olympias

During the first quarter of 2012 the Technical Study of the Olympias mine was approved by the Greek MoE. The following activities began at Olympias:

• Rehabilitation of underground workings,
• Rehabilitation of the Olympias processing plant,
• Development of the Olympias plant decline, connecting the Olympias plant to the west ramp,
• Development of the 8.5 kilometre Stratoni-Olympias tunnel portal, and
• Metallurgical test work to validate the economics of the proposed new processing facility at Stratoni.

Mining and processing of surface tailings at Olympias is planned to commence in July 2012, following the rehabilitation and commissioning of the Olympias processing plant in the second quarter.

Skouries

During the first quarter of 2012 the Technical Study of Skouries was approved by the Greek MoE. Preparation for the following activities began in the first quarter related to the construction of Skouries:

• Road construction (widening of the access road and construction of internal roads),
• Surface clearing (road and processing plant areas),
• Earth moving works (road and processing plant areas),
• Geotechnical drilling (processing plant area),
• Infill drilling (open pit area),
• Archeological works (relocation of slags), and
• Construction of surface portal and development of decline for underground access.

Additionally, an engineering company was selected to provide engineering, procurement and construction management services during the construction of Skouries.

Certej

During the first quarter a detailed review was completed of the Certej metallurgical flowsheet including an update of process plant capital costs. Additionally, hydro-geologic modelling and work on characterization of waste rock material types progressed. A governmental Technical Advisory Committee (TAC) meeting was held during the quarter to review the technical aspects of the project.

Exploration update

The Company completed 33,100 metres of exploration drilling during the first quarter at our exploration projects and mine operations in Greece, Turkey, Brazil, and China. 

Turkey

Exploration during the quarter in Turkey focused on drilling at our Efemcukuru minesite, and sampling and mapping activities at several reconnaissance projects.

At Efemcukuru, 20 drillholes (7,500 metres) were completed during the quarter on the Kestane Beleni northwest extension and the Kokarpinar vein. Drillholes consistently intersected vein material at or near target depth, demonstrating continuity of the vein systems. The best intercepts were 2.69 metres at 6.90 g/t gold (Au) (KV-406, Kestane Beleni vein), and 1.17 metres at 21.8 g/t Au (KV-413, Kokarpinar vein). Drilling is projected to continue with four drills active through to the end of the second quarter 2012.

No exploration drilling was completed at the Kisladag minesite. Work during the quarter focused on a detailed ground magnetic survey, and interpretation of the 3D IP survey completed in 2011, both of which will contribute to defining conceptual drill targets planned for the third quarter 2012.

Greece

Drilling commenced during the quarter on the Piavitsa prospect, with five holes completed and 1,620 metres drilled. Drilling is targeting polymetallic, gold and silver rich, carbonate replacement massive sulphide mineralization along the Stratoni fault. Three of the initial holes intersected massive sulphides, including intercepts of up to 5 metres. Assay results are pending. Drilling also started late in the quarter on the Fisoka porphyry copper-gold prospect.

China

Exploration drilling in China during the quarter included programs in the Guizhou and Qinghai provinces.

In Qinghai (Tanjianshan), 39 drill holes (2,966 metres) were completed from the floor of the Jinlonggou pit, targeting blocks of inferred mineral resources lying below the current design pit. These holes did not identify any significant new zones of mineralization.

In the Guizhou region, exploration drilling was conducted within the Jinfeng mining license, on the surrounding Jinfeng 42 exploration licenses, and on both the Jinluo and Jindu joint venture project areas. At the Jinfeng mine site, 17 underground holes (4,300 metres) and 8 surface holes (4,200 metres) were completed. These holes primarily tested targets along the mineralized F2, F3, and F6 faults. Notable results during the quarter included intersections of 20.0 metres at 2.13 g/t Au (HDDU0132), 34 metres at 1.88 g/t Au (HDDU0133), and 52.5 metres at 5.6 g/t Au (HDDU0105), all from the F3 fault; and 12.0 metres at 19.8 g/t Au (drillhole HDDU 0129) from a linking structure between F3 and a deeper, subparallel fault. On the surrounding Jinfeng 42 exploration concessions, 12 drillholes (3,700 metres) were completed on the Lintan and Yaojiatan prospects, primarily targeting mineralized fault zones. Assay results from these holes are pending.

Brazil

Exploration at Tocantinzinho during the quarter included 11 drillholes (4,000 metres) testing multiple targets peripheral to the main Tocantinzinho deposit. Assay results have been received from 7 holes, two of these contain mineralized intercepts of 24.0 metres at 0.60 g/t Au (TOC254) and 1.15 metres at 7.0 g/t Au (TOC260). Soil sampling and auger drilling programs to define additional drilling targets are ongoing.

At Agua Branca, 6 drillholes (2,000 metres) were completed, all in the Camarao target area. Two of these encountered encouraging gold values over wide intervals in altered granitoid host rocks: 46.66 metres at 0.79 g/t Au in hole AB52, and 115.62 metres at 0.62 g/t Au in hole AB53.

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

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, President and Chief Executive Officer

Eldorado will host a conference call on Friday, May 4, 2012 to discuss the 2012 First Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-8530 in Toronto or 1-877-240-9772 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado's website: www.eldoradogold.com. A replay of the call will be available until May 11, 2012 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 8241002.

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 2012 First 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 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 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.

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

Request for information packages: reception@eldoradogold.com.

Click here for the Unaudited Consolidated Financial Statements for the quarter ended March 31, 2012 in PDF: http://media3.marketwire.com/docs/Eldorado-Gold-Financials-and-MDA-Q1-2012.pdf.