Eldorado Gold Corporation

Eldorado Gold Corporation

January 10, 2005 09:00 ET

Eldorado Gold Corporation: Year End Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ELDORADO GOLD CORPORATION

TSX SYMBOL: ELD
AMEX SYMBOL: EGO

JANUARY 10, 2005 - 09:00 ET

Eldorado Gold Corporation: Year End Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2005) - Eldorado
Gold Corporation (TSX:ELD)(AMEX:EGO)

Earl W. Price, Chief Financial Officer of Eldorado Gold Corporation
("Eldorado", the "Company", or "we") is pleased to provide the following
update on the Company's activities to December 31, 2004.

2004 was a year in which Eldorado began construction of our Kisladag
Mine in Turkey, advanced our shaft deepening in our Sao Bento Mine in
Brazil, moved forward with our Environmental Impact Assessment (EIA)
study for Efemcukuru in Turkey, created a new representative office in
Beijing to advance our China strategy and continued to strengthen our
balance sheet.

During the year the Company raised CDN$77.6 M. The Company is well
positioned with US$135.0 M in cash, debt free and hedge free, to
continue its strategy for value added growth.

Operations

Sao Bento Mine

In 2004 our Sao Bento Mine in Brazil produced 82,024 oz. of gold at a
cash cost of US$ 295/oz. Production in 2005 is planned to be 90,000 oz.
at a cash cost of US$ 270/oz.

Throughout the year, the Company continued to advance the Shaft
Deepening Project. The deepened shaft is scheduled for commissioning in
August and remains on budget.

During 2004 2,791 meters of infill drilling and 17,612 meters of
exploration drilling were completed. A total of 8,945 meters were
drilled below the mine's deeper intrusive (approximately 32nd Level).
This drilling has not been successful in re-establishing continuity of
the mineralization below the intrusive. 2004 year-end reserve
calculations presently underway will, as a result, include no mineral
reserves below the intrusive.

Development

Kisladag

In 2004 we acquired all the private and public land for construction of
the Kisladag Mine Project, updated the Feasibility Study to reflect 2004
costs and completed the permitting process and approvals from the
Turkish Authorities for construction of the mine to begin in 2004.

Installation of site services began in Q3, 2004 with the site access
road, high voltage power line and completion of two process water wells.
In December earthworks for the first phase of the leach pad installation
began along with mobilization of the mine contractor in preparation for
preproduction mining scheduled to start in January 2005.

Construction activities planned for 2005 include civil and concrete work
commencing in Q1 and preparation for delivery and installation of the
crushers and conveyors in Q2. Construction is planned for completion in
early Q4 with commissioning leading to startup as planned by the end of
2005.

Efemcukuru

The Company continues to move forward with the EIA study for Efemcukuru.
The final phase of this work will involve public consultation on the
project through the Ministry of Environment. Socio economic issues will
be addressed in the EIA study prior to submission in Q1 2005. The
development schedule for Efemcukuru, following approval of the EIA,
anticipates production commencing at the mine in late 2007.

China

The October 2003 agreement with the China National Gold Group
Corporation ("CNGC") for the exclusive rights to review their portfolio
of operating mines development projects and exploration projects expired
in 2004. At this point, Eldorado does not believe that CNGC will be in a
position to transfer the assets of the previously identified mines and
projects of interest in a time frame suitable to Eldorado. In 2004 the
Company has identified opportunities in China external to CNGC. Our goal
is to establish a strategic partnering relationship with a Chinese
public or private company to acquire advance stage development projects
or operating mines to develop a growing business in China.

Eldorado is a gold producing and exploration company with gold assets in
Brazil and Turkey; two countries that we believe have substantial
geological potential. With our international expertise in mining,
finance and project development, together with highly skilled and
dedicated staff, we believe that Eldorado is well positioned to
experience continued growth and value as we create and pursue new
opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Earl W. Price, Chief Financial Officer

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 technical reports, including the Annual
Information Form and other reports filed under the Company's name at
www.sedar.com. A qualified person has verified the data contained in
this release.

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 can not 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.

Certain of the statements made may contain forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, which involve known and unknown risk, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are subject to a
variety of risks and uncertainties, which could cause actual events, or
results to differ from those reflected in the forward-looking
statements. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward looking
statements. Specific reference is made to "Narrative Description of the
Business - Risk Factors" in the Company's Annual Information Form and
the factors discussed in the Prospectus dated November 5, 2004.
Forward-looking statements in this release include statements regarding
the expectations and beliefs of management. Such factors included,
amongst others the following: gold price volatility; impact of any
hedging activities, including margin limits and margin calls;
discrepancies between actual and estimated production, between actual
and estimated reserves, and between actual and estimated metallurgical
recoveries; mining operational risk; regulatory restrictions, including
environmental regulatory restrictions and liability; risks of sovereign
investment; speculative nature of gold exploration; dilution;
competition; loss of key employees; additional funding requirements; and
defective title to mineral claims or property, as well as those factors
discussed in the section entitled "Risk Factors" in the Prospectus dated
November 5, 2004. We do not expect to update forward-looking statements
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.

Eldorado Gold Corporation's shares trade on the Toronto Stock Exchange
(TSX:ELD) and the American Stock Exchange (AMEX:EGO).

Request for information packages: info@eldoradogold.com

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Eldorado Gold Corporation
    Nancy E. Woo
    Manager Investor Relations
    (604) 601-6650 or 1-888-353-8166
    (604) 687-4026 (FAX)
    Email: nancyw@eldoradogold.com
    Website: www.eldoradogold.com
    The TSX has neither approved nor disapproved the form or content of this
    release.