Eldorado Gold Corporation
AMEX : EGO
TSX : ELD

Eldorado Gold Corporation

September 26, 2005 07:00 ET

Eldorado Announces Positive Drill Results from Tanjianshan Project, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 26, 2005) - Eldorado Gold Corporation ("Eldorado" the "Company" or "we") (TSX:ELD)(AMEX:EGO) is pleased to announce a program update and initial results of the 2005 drill campaign at our newly acquired Tanjianshan project in Qinghai Province, China (ELD No. 05-09). The Tanjianshan project currently consists of two deposits, Qinlongtan ("QLT") and Jinlonggou ("JLG"), and is undergoing construction ahead of planned mining in 2006.

The 2005 drill campaign focused on two goals: delineating extensions to gold mineralization adjacent to existing mineral resources and mineral reserves at QLT and JLG, and area sterilization in planned sites for the mill complex, and the waste rock dumps. Drilling comprised HQ size core and utilizing three Chinese contractor drill rigs.

The area sterilization program was successfully completed early this summer. Selected sites for surface infrastructure were confirmed thus allowing site preparation and construction to begin.

Drilling at QLT focused on testing possible extensions to the gold mineralization southward from the main zone. Results were mixed due to structural complexity in the tested area. A re-examination of the QLT mineralized horizon identified a stratigraphic model (mineralized calcareous sandstone interlayer between two marble units) explaining the occurrence of the gold mineralization. This revised interpretation will assist in understanding the displacements across the southern area faults, and lead to the identification of additional drill targets along this prospective trend.

The 52 drill hole program at JLG tested an updated geological interpretation of the area structures and mineralized horizons that connect JLG (main zone) to the adjacent prospects of M7 - Pubugou (see Figure 1 for hole locations). Two host environments exist for gold mineralization at JLG, relative to a west dipping thrust fault: upper, moderately to steeply dipping, bedding plane parallel, phyllite hosted mineralization, and lower, gently dipping diorite and phyllite hosted mineralization (see Figure 2). Mapping and subsequent interpretation of the latter diorite and phyllite horizon helped define an N-S trending antiform in the M7 - Pubugou area. The antiform model would bring the lower target horizon to sufficiently shallow depths to be considered for open pit extraction. The results of the drilling confirmed the antiform and presence of the lower diorite and phyllite unit. The drilling also delineated numerous mineralized zones in the target areas predicted.

The following table (Table 1) shows the results from the first 13 holes from the JLG drill holes. Assays from the additional 39 holes will be released early in Q4 2005. Please note that the reported assayed intervals are approximately equal to interpreted true widths for the mineralization.



Table 1 Initial Drill Results - Jinlonggou

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Hole Number From (m) To (m) Interval (m) Au g/t
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JD147 16.84 20.23 3.39 15.32
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Including 18.71 19.28 1.07 38.70
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41.26 48.00 6.74 3.16
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-----------------------------------------------------------
JD148 35.78 39.00 3.22 13.53
-----------------------------------------------------------
Including 36.78 37.77 0.99 36.50
-----------------------------------------------------------
64.32 71.20 6.88 6.75
-----------------------------------------------------------
Including 65.50 66.32 0.82 27.10
-----------------------------------------------------------
86.00 89.80 3.80 9.00
-----------------------------------------------------------
114.40 118.32 3.92 3.55
-----------------------------------------------------------
140.60 144.50 3.90 1.77
-----------------------------------------------------------
-----------------------------------------------------------
JD149 30.19 33.54 3.35 3.56
-----------------------------------------------------------
57.97 63.74 5.77 11.64
-----------------------------------------------------------
Including 58.54 59.30 0.76 37.70
-----------------------------------------------------------
73.30 75.64 2.34 11.67
-----------------------------------------------------------
92.64 95.32 2.68 1.26
-----------------------------------------------------------
-----------------------------------------------------------
JD150 16.30 23.98 7.68 2.35
-----------------------------------------------------------
35.35 37.92 2.57 40.24
-----------------------------------------------------------
-----------------------------------------------------------
JD151 14.12 16.36 2.24 3.74
-----------------------------------------------------------
22.10 29.00 6.90 11.57
-----------------------------------------------------------
Including 25.34 26.40 1.06 32.20
-----------------------------------------------------------
31.30 44.60 13.30 6.32
-----------------------------------------------------------
-----------------------------------------------------------
JD152 37.70 40.15 2.45 5.15
-----------------------------------------------------------
86.80 94.40 7.60 6.94
-----------------------------------------------------------
-----------------------------------------------------------
JD153 95.00 99.24 4.24 9.27
-----------------------------------------------------------
-----------------------------------------------------------
JD154 87.00 89.00 2.00 14.25
-----------------------------------------------------------
-----------------------------------------------------------
JD155 35.74 39.05 3.31 1.06
-----------------------------------------------------------
68.95 70.90 1.95 6.21
-----------------------------------------------------------
133.50 135.50 2.00 4.22
-----------------------------------------------------------
-----------------------------------------------------------
JD156 99.46 100.85 1.39 2.39
-----------------------------------------------------------
-----------------------------------------------------------
JD157 13.90 16.37 2.47 3.07
-----------------------------------------------------------
39.80 42.00 2.20 1.33
-----------------------------------------------------------
52.37 56.20 3.83 15.16
-----------------------------------------------------------
67.90 70.66 2.76 2.99
-----------------------------------------------------------
91.50 92.80 1.30 3.71
-----------------------------------------------------------
-----------------------------------------------------------
JD158 21.00 23.00 2.00 3.15
-----------------------------------------------------------
32.15 36.15 4.00 1.50
-----------------------------------------------------------
90.05 96.80 6.75 11.28
-----------------------------------------------------------
Including 93.05 94.05 1.00 35.20
-----------------------------------------------------------
-----------------------------------------------------------
JD159 55.40 58.74 3.34 3.59
-----------------------------------------------------------
104.45 106.50 2.05 6.02
-----------------------------------------------------------


Norm Pitcher, Chief Operating Officer commented, "We are very encouraged at the results for JLG which confirm the treatment of JLG and M-7 - Pubugou as a single deposit. The location and tenure of the delineated mineralization, currently outside the feasibility pit outline, will likely translate to notable additions to the mineral resources at JLG, and the Tanjianshan project as a whole. This success to date supports our belief in the upside potential for the Tanjianshan project. Congratulations to the exploration team in China for their high quality of work."

Geologic modeling of the new drill information is ongoing and will be incorporated into a new block model during Q4 2005. Based on the new model an optimized mine plan will be designed and the resources and reserves restated at year end.

Stephen Juras, Ph.D., P.Geo, Manager, Geology is the qualified person for the technical disclosure in this press release. Samples are prepared at Eldorado's on-site facility in China and assayed at the SGS facility at Tianjin, China. Analysis for gold is done on sawn half core samples using fire assay (AA finish) on a 50 g charge. Standard reference materials, blank and field duplicate samples are inserted prior to shipment from site to monitor the quality control of the assay data. In addition, about 10% of the samples are re-submitted for duplicate analysis at STAR Laboratory in Perth, Australia.

Eldorado Gold Corporation is a gold producing and exploration company actively growing businesses in Brazil, Turkey and China. 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 grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, President and Chief Executive 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 herein may contain forward-looking statements within the meaning of Section 1E of the Securities Exchange Act of 1934, which involve known and unknown risks, 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, Form 40-F dated March 30, 2005 for the fiscal year ended December 31, 2004. Forward-looking statements herein 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 "Business - Risk Factors" in the Company's Annual Information Form and 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).

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To view the figures accompanying this press release please click on the following links:

Figure 1: http://www.ccnmatthews.com/docs/eldfig1.jpg

Figure 2: http://www.ccnmatthews.com/docs/eldfig2.jpg

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