Eldorado Gold Corporation

Eldorado Gold Corporation


September 08, 2005 11:54 ET

Afcan Shareholders and Warrant Holders Approve Compromise with Eldorado

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - Afcan Mining Corporation ("Afcan") (TSX:AFK) and Eldorado Gold Corporation ("Eldorado") (TSX:ELD)(AMEX:EGO) announced today that Afcan shareholders and warrant holders have approved the Compromise between Afcan and Eldorado, with over 99% of the shareholders and warrant holders represented at the meeting voting in favor of the transaction.

Subject to final Court approval, the Compromise is expected to become effective September 14, 2005 (the "Closing Date"). Afcan shareholders will receive one common share of Eldorado in exchange for every 6.5 common shares of Afcan held by them. In addition, Eldorado will issue one Eldorado warrant for every 6.5 outstanding Afcan warrants each Eldorado warrant will have a exercise price of 6.5 times the Afcan warrant in respect of which such Eldorado warrant was exchanged and will have a term to expiry the same as such Afcan warrant. Eldorado common shares and warrants will be issued as soon as practicable after the Closing Date.

All Afcan common shares traded and/or warrants exercised beyond September 8, 2005 will be settled in Eldorado common shares or warrant as the case may be as soon as practicable after the Closing Date.

"The strong approval by the Afcan shareholders for this transaction serves as an acknowledgement of the benefits that will accrue to all shareholders through the development of a successful business in China," commented Paul N. Wright, President and Chief Executive Officer.


Paul N. Wright Benoit La Salle
President & Chief Executive Officer Chairman of the Board

Certain of the statements made in this release are 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 in this release include statements regarding the anticipated benefits of the proposed business combination, estimates relating to mineral reserves, future gold production and mine life, and other statements regarding future events on the Company's or Afcan's properties, or otherwise relating to the Company or Afcan. Forward-looking statements are subject to a variety of risks and uncertainties including but not limited to 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 "Business - Risk Factors" in the Company's Annual Information Form, Form 40F dated March 30 ,2005 for the fiscal year ended December 31, 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 in Canada and the U.S.

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.

The TSX has neither approved nor disapproved the form or content of this release.

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