Eldorado Gold Corporation
AMEX : EGO
TSX : ELD

Eldorado Gold Corporation

October 17, 2006 17:44 ET

Eldorado Gold Announces Commissioning Update-Tanjianshan Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2006) - Norman S. Pitcher, Chief Operating Officer of Eldorado Gold Corporation ("Eldorado" the "Company" or "we") (TSX:ELD)(AMEX:EGO) wishes to announce that a section of the process plant at the Tanjianshan Project has been damaged as a result of a fire.

The fire was confined to the cyclone pack, which is a sizing unit used to classify material coming out of the SAG (semi autogenous grinding) mill. The limited extent of the fire resulted in no damage to either the SAG mill or the cyclone pumps.

The commissioning team at TJS is currently assessing the extent of the damage and the effect this will have on the project start-up. In particular, they will determine the extent to which the equipment can be repaired or will require replacement units. Eldorado will provide an update as to the impact on commissioning when this evaluation is complete.

The Company will release its Third Quarter Financial Results before the market opens on Monday, November 6, 2006 with a conference call scheduled at 8:30PST (11:30 AM EST).

Eldorado 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

Norman S. Pitcher, Chief Operating Officer

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 forward-looking statements or information within the meaning of the Securities Act (Ontario). Such forward-looking statements or information include, but are not limited to statements or information with respect to 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 or information 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 or information. 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 "Forward-Looking Statements and Risk Factors" in the Company's Annual Information Form and Form 40-F dated March 23, 2006. 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 "Risk Factors" in the Company's Annual Information Form and Form 40-F dated March 23, 2006. 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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