Eldorado Gold Corporation
TSX : ELD
NYSE : EGO
ASX : EAU

Eldorado Gold Corporation

May 05, 2011 17:41 ET

Eldorado Gold Corporation: Q1, 2011 Financial and Operating Results; Operating Results and Construction on Plan; Earnings Per Share $0.10; Cash Flow Per Share $0.17

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -

(all figures in United States dollars unless otherwise noted)

Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (TSX:ELD)(NYSE:EGO)(ASX:EAU) ("Eldorado" the "Company" or "we") is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2011. Eldorado reported net income attributable to shareholders of the Company of $52.5 million for the period and generated $91.7 million in cash from operating activities before changes in non-cash working capital.

"All of our mines performed in accordance with their operating plans in terms of production and operating costs to produce 148,577 ounces of gold at a cash operating cost of $410 per ounce. During the quarter we also completed the Phase III expansion at Kisladag and a major overhaul of the primary crusher mainframe. Construction at Efemcukuru remains on schedule with first gold to be produced this quarter. With a strong start to the year, the Company retains its guidance of producing 715,000-770,000 ounces at cash operating cost of $375-395/oz." said Paul Wright, President and CEO of Eldorado Gold.

Q1 2011 Highlights


--  Increased proven and probable gold reserves to 18.7 million ounces and
    measured and indicated resources to 22.9 million ounces 
--  Produced 148,577 ounces of gold at an average cash operating cost of
    $410 per ounce (total cash cost $462 per ounce) 
--  Sold 148,530 ounces of gold at an average realized price of $1,397 per
    ounce 
--  Reported earnings of $0.10 per share 
--  Generated $91.7 million ($0.17 per share) from operating activities
    before changes in non-cash working capital  
--  Paid dividend of $0.05 to shareholders on record February 11, 2011 

Financial Results

Eldorado's consolidated net income attributable to the shareholders of the Company for the first quarter of 2011 was $52.5 million or $0.10 per share compared to $50.5 million or $0.09 per share in the first quarter of 2010. The increase in profit for the period was the result of a higher gold price and a contributing profit from Vila Nova.

In the first quarter of the year, 148,530 ounces of gold were sold at an average price of $1,397 per ounce compared to 163,446 ounces of gold at an average realized price of $1,110 per ounce in the first quarter of 2010. In addition, 85,421 dry metric tonnes of iron ore were sold at an average price of $124 per dry metric tonne.

Operating Performance

Kisladag

During the quarter, 2,341,635 tonnes of ore were placed on the leach pad at an average grade of 1.04 grams of gold per tonne. We produced 50,833 ounces of gold at a cash operating cost of $386 per ounce, compared to record production of 82,240 ounces of gold at a cash operating cost of $304 per ounce in the first quarter of 2010. Production was lower than the first quarter of 2010 in part due to the planned major overhaul of the primary crusher mainframe and integrating the Phase III expansion.

Tanjianshan("TJS")

TJS produced 28,493 ounces of gold at a cash operating cost of $402 per ounce in Q1 2011, as compared to 25,423 ounces at a cash operating cost of $420 per ounce in Q1 2010. Additional roaster feed provided by Qinglongtan concentrate has helped TJS to increase gold production while processing lower grade ore.

Jinfeng

The operation processed 384,400 tonnes of ore at a grade of 4.32 grams of gold per tonne and produced 48,564 ounces of gold at a cash operating cost of $430 per ounce. Strip ratio fell at Jinfeng to 1.61:1 this quarter as a result of the planned mining at the bottom of the open pit during the quarter.

White Mountain

At our White Mountain mine, we processed 140,211 tonnes of ore at a grade of 5.70 grams of gold per tonne and produced 20,687 ounces of gold at a cash operating cost of $438 per ounce. White Mountain achieved record production during the quarter was due to higher grade and improved recoveries.

Vila Nova

In the quarter, 138,114 tonnes of run-of-mine iron ore were mined. Two shipments, one of lump ore and another of sinter fines, totalling 85,421 dry metric tonnes were made during the quarter. Both of these shipments were sold into the Chinese spot market at prices averaging $124 per dry metric tonne delivered to the Santana Port in Brazil. Total cash cost (including royalties, production taxes and shipping costs) were approximately $53 per tonne.

Development

Efemcukuru

Dry commissioning of the concentrator plant continued during the quarter. The majority of the circuit was tested with the exception of the gold room which was reaching the final stages of completion. The high voltage power supply was tied into the plant in April. Wet commissioning of the plant is projected to take place in the second quarter. The remaining construction activity at site has focused on completion of the filtration and backfill plants. All mechanical equipment has been installed. Piping and electrical installations have been ongoing.

Underground development continued on schedule with approximately 3,000 meters of development completed by the end of the quarter representing approximately 70% of the contract value. A portable crusher is on site to provide temporary crushing capacity of ore production during the commissioning of the plant until the underground crusher installation has been completed, which is projected to be in the third quarter of 2011.

Eastern Dragon

During the quarter construction continued at the Eastern Dragon Project despite extreme weather conditions. We successfully advanced the winter works program schedule safely and efficiently through this difficult period. Currently we are focused on the civil and structural installations.

Perama Hill

The Ministry of Environment continues to review our Preliminary Environmental Impact Assessment. As part of our ongoing efforts to work with various levels of government and other stakeholders in regards to educating and providing a better understanding of best practises in modern gold mining, specifically in the European Union, arrangements were made to take stakeholders to visit mining operations in Finland. We continue our efforts with government officials to advance the permitting process and answer any questions they may have regarding the benefits the Perama Hill project can bring to Greece.

Tocantinzinho ("TZ")

Subsequent to the end of the quarter, the Company released a Positive Technical Study ("Study") on the 100% owned Tocantinzinho Gold Project located in Para state in Central Brazil. The Study highlighted an 11-year open pit mine that will operate with a production rate of 4.4 million tonnes per year producing an average of 159,000 ounces of gold annually at a cash operating cost of $559 per ounce. Initial capital investment will be $383.5 million.

Exploration

Turkey

During the first quarter, exploration in Turkey focused on drilling at Sayacik and AS and on fieldwork related to target definition at several other early-stage prospects. Exploration drilling at the Kisladag and Efemcukuru mine areas will commence during the second quarter.

At Sayacik, the final drill holes of the 2010 program that targeted the remaining untested geophysical anomalies on the property were completed. Both drill holes intersected altered volcaniclastic and intrusive rock sequences, but had no significant mineralization. All assay results have been received from the 2010 drilling program and no further work is planned at this time.

At the AS deposit, two drill holes tested surface geochemical anomalies, completing the planned 2010 program. The low-grade Cu, Mo, and Au values obtained from the program do not support further exploration on the property at this time. We also completed reconnaissance fieldwork, including mapping and soil geochemistry surveys on the early-stage Dogancilar and Atalan projects this winter.

Brazil

During the first quarter at TZ we drilled 11 diamond drill holes (3,691 meters) to test exploration targets peripheral to the main deposit area. These targets were defined by a combination of surface soil geochemical anomalies, chargeability or resistivity anomalies and areas of known mineralization based on garimpero workings or surface gold occurrences. Several of the drill holes encountered granitoid units with similar lithologic, alteration, and mineralisation character to that found in the TZ deposit, although gold assay results received from the first few drill holes have been limited to narrow, low grade intercepts.

Soil sampling programs during the quarter were initiated to extend the area of coverage both along and peripheral to the TZ trend. In addition, grid-based augur drilling commenced within areas containing broad gold geochemical anomalies in soil to more closely define targets for diamond drilling.

At Agua Branca where we hold an option, fieldwork this quarter focused on soil geochemical sampling aimed at defining targets for diamond drilling in the second and third quarter of 2011.

China

During the quarter we focused our exploration on projects in the Guizhou region. Three drill holes totalling 331 meters were completed at the Banna and Weiruo prospects in Jinluo Exploration License.

At the Jinfeng mine, we completed 3,607 meters of underground drilling from the 310 level mainly devoted to infill of the mineralized zones along the F2, F3, and F7 faults. We also completed reverse circulation drilling in the Rongban portion of the deposit to better define the continuity and extent of mineralized zones. We made progress on a revised structural/lithologic model for the deposit, directed towards refining our knowledge of controls on gold distribution, defining new drill targets, and helping constrain future resource estimates.

In the White Mountain, Eastern Dragon and TJS areas, field activities were limited by winter conditions but plans for the 2011 program were completed during the quarter.

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil. 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 6, 2011 to discuss the 2011 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 416-340-8527 in Toronto or 1-877-440-9795 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 13, 2011 by dialling 905-694-9447 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 7200381.

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 Q1, 2011 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 31, 2011.

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 (TSX:ELD) and the New York Stock Exchange (NYSE:EGO). Our Chess Depositary Interests trade on the Australian Securities Exchange (ASX:EAU).

PRODUCTION HIGHLIGHTS


---------------------------------------------------------------------------
                              First     First    Second     Third    Fourth
                            Quarter   Quarter   Quarter   Quarter   Quarter
                               2011      2010      2010      2010      2010
---------------------------------------------------------------------------

Gold Production                                                            
 Ounces Sold                148,530   163,446   172,826   154,655   149,022
 Ounces Produced            148,577   164,928   167,940   151,297   148,374
 Cash Operating Cost                                                       
  ($/oz) (1,3)                  410       370       357       386       418
 Total Cash Cost ($/oz)
  (2,3)                         462       397       410       431       460
 Realized Price ($/oz -                                                    
  sold)                       1,397     1,110     1,195     1,231     1,373
---------------------------------------------------------------------------

Kisladag Mine, Turkey                                                      
 Ounces Sold                 50,832    83,974    69,197    66,113    59,741
 Ounces Produced             50,833    82,240    70,451    62,086    59,815
 Tonnes to Pad            2,341,635 2,898,199 2,686,284 2,767,179 2,021,057
 Grade (grams / tonne)         1.04      1.12      1.12      0.98      1.00
 Cash Operating Cost                                                       
  ($/oz) (3)                    386       304       304       337       382
 Total Cash Cost ($/oz)
  (2,3)                         408       307       345       359       354
---------------------------------------------------------------------------

Tanjianshan Mine, China                                                    
 Ounces Sold                 28,493    18,947    38,261    28,847    30,710
 Ounces Produced             28,493    25,423    28,884    28,847    30,710
 Tonnes Milled              238,070   249,738   271,749   283,598   244,867
 Grade (grams / tonne)         3.90      4.01      4.38      3.84      4.59
 Cash Operating Cost                                                       
  ($/oz) (3)                    402       420       387       391       349
 Total Cash Cost ($/oz)
  (2,3)                         515       517       483       493       459
---------------------------------------------------------------------------

Jinfeng Mine, China                                                        
 Ounces Sold                 48,518    49,674    48,623    45,447    38,282
 Ounces Produced             48,564    45,615    52,659    46,116    37,560
 Tonnes Milled              384,400   389,851   392,211   387,427   387,710
 Grade (grams / tonne)         4.32      4.23      4.51      4.42      3.81
 Cash Operating Cost                                                       
  ($/oz) (3)                    430       422       381       425       486
 Total Cash Cost ($/oz)                                                    
  (2,3,4)                       482       462       423       473       585
---------------------------------------------------------------------------

White Mountain Mine, China                                                 
 Ounces Sold                 20,687    10,851    16,745    14,248    20,289
 Ounces Produced             20,687    11,650    15,946    14,248    20,289
 Tonnes Milled              140,211   130,643   167,981   154,125   169,669
 Grade (grams / tonne)         5.71      4.09      3.78      4.01      4.06
 Cash Operating Cost                                                       
  ($/oz) (3)                    438       550       442       477       498
 Total Cash Cost ($/oz)                                                    
  (2,3)                         475       589       474       507       536
---------------------------------------------------------------------------

(1) Cost figures calculated in accordance with the Gold Institute Standard.
(2) Cash Operating Costs, plus royalties and the cost of off-site
    administration.
(3) Cash operating costs and total cash costs are non-GAAP measures. See
    the section "Non-GAAP Measures" of this Review.


Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Balance Sheets                            
---------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)                                   

                                             March 31,  December  January 1,
                                      Note       2011   31, 2010       2010

ASSETS                                                                     
Current assets                                                             
 Cash and cash equivalents                    294,116    314,344    265,369
 Restricted cash                         6     55,399     52,425     50,000
 Marketable securities                          6,864      8,027     13,951
 Accounts receivable and other                 34,123     42,437     26,434
 Inventories                                  147,982    147,263    129,197
                                          ---------------------------------
                                              538,484    564,496    484,951
Inventories                                    28,940     29,627     31,534
Investment in significantly                                                
 influenced company                      5      6,324      6,202          -
Deferred income tax assets                      6,562          -          -
Restricted assets and other                    19,741     19,328     13,759
Property, plant and equipment               2,742,579  2,699,787  2,527,567
Goodwill                                      365,928    365,928    324,935
                                          ---------------------------------
                                            3,708,558  3,685,368  3,382,746
                                          ---------------------------------
LIABILITIES & EQUITY                                                       
Current liabilities                                                        
 Accounts payable and accrued                                              
  liabilities                                 148,490    145,695    153,036
 Current debt                            7     93,648     98,523     56,499
                                          ---------------------------------
                                              242,138    244,218    209,535
Debt                                     7     63,596     68,140    134,533
Asset retirement obligations                   33,632     33,228     26,995
Pension fund obligation                        12,595     12,019      7,811
Deferred tax liabilities                      329,537    330,512    355,425
                                          ---------------------------------
                                              681,498    688,117    734,299
                                          ---------------------------------
Equity                                                                     
Share capital                           11  2,818,238  2,814,679  2,671,634
Treasury stock                        12(b)    (5,870)         -          -
Contributed surplus                            28,326     22,967     17,865
Accumulated other comprehensive                                            
 income                                        (2,213)    (1,637)     2,227
Retained earnings (deficit)                   149,953    125,221    (69,423)
                                          ---------------------------------
Total equity attributable to                                               
 shareholders of the Company                2,988,434  2,961,230  2,622,303
Attributable to non-controlling                                            
 interests                                     38,626     36,021     26,144
                                          ---------------------------------
                                            3,027,060  2,997,251  2,648,447
                                          ---------------------------------
                                            3,708,558  3,685,368  3,382,746
                                          ---------------------------------

Subsequent events                   7(a)(d)                                

Approved on behalf of the Board of Directors                               

(Signed) Robert Gilmore, Director                                          

(Signed) Paul N. Wright, Director                                          

See accompanying notes to consolidated financial statements.


Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Income Statements                         
---------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)                                   

For the quarter ended March 31                   Note       2011       2010

Revenue                                                                    
 Metal sales                                             218,073    181,479

Cost of sales                                                              
 Production costs                                         74,311     64,590
 Depreciation and amortization                            31,217     23,333
                                                     ----------------------
Total cost of sales                                      105,528     87,923
Gross profit                                             112,545     93,556

Exploration expenses                                       3,841      3,333
Mine standby costs                                             -        706
General and administrative expenses                       21,034     10,418
Employee benefit expenses                           8        423        211
Share based payments                                       7,352      6,947
Asset retirement obligation costs                            366        513
Foreign exchange loss (gain)                                 647     (1,560)
Gain on disposal of assets                                     -     (1,506)
                                                     ----------------------
Operating profit                                          78,882     74,494

Gain on marketable securities                               (635)    (1,112)
Other (income) expenses                                   (1,397)      (671)
Interest and financing costs                               1,589      2,613
                                                     ----------------------

Profit before taxation                                    79,325     73,664
Income tax expense                                        20,625     20,356
                                                     ----------------------
Profit for the period                                     58,700     53,308
                                                     ----------------------

Attributable to:                                                           
Shareholders of the Company                               52,473     50,502
Non-controlling interests                                  6,227      2,806
                                                     ----------------------
Profit for the period                                     58,700     53,308
                                                     ----------------------

Weighted average number of shares outstanding                              
Basic                                                    548,320    538,009
Diluted                                                  551,500    540,911

Earnings per share attributable to shareholders of                         
 the Company:                                                              
Basic earnings per share                                    0.10       0.09
Diluted earnings per share                                  0.10       0.09

See accompanying notes to the consolidated financial statements.


Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Statements of Comprehensive Income        
---------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)                                   

For the quarter ended March 31                              2011       2010

Profit for the period                                     58,700     53,308
Other comprehensive income (loss):                                         
Change in fair value of available-for-sale financial                       
 assets (net of taxes of $nil and $106)                     (414)     1,459
Realized losses on disposal of available-for-sale                          
 financial assets transferred to net income                 (162)         -
Actuarial losses on defined benefit pension plans              -          -
                                                     ----------------------
Total other comprehensive (loss) income for the                            
 period                                                     (576)     1,459
                                                     ----------------------
Total comprehensive income for the period                 58,124     54,767
                                                     ----------------------

Attributable to:                                                           
Shareholders of the Company                               51,897     51,961
Non-controlling interests                                  6,227      2,806
                                                     ----------------------
Total comprehensive income for the period                 58,124     54,767
                                                     ----------------------


Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Statements of Cash Flows                  
---------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)                                   

                Attributable to shareholders of the Company

                                                 Accumu-
                                                  lated
                                                  other
                                                 Compri-
                                                    hen-                   
                                          Contri-  sive 
                                     Trea- buted    inc-             
                            Share    sury    sur-   ome  Retained          
                   Note   capital   stock   plus  (loss) earnings     Total
Balance at January                                                         
 1, 2011             11 2,814,679       - 22,967 (1,637)  125,221 2,961,230
Total                                                                      
 comprehensive                                                             
 (loss) income for                                                         
 the quarter                    -       -      -   (576)   52,473    51,897

Dividends declared                                                         
 to Non-                                                                   
 controlling                                                               
 interests                      -       -      -       -        -         -
Purchase of                                                                
 treasury stock                 - (5,870)      -       -        -   (5,870)
Shares issued upon                                                         
 exercise of share                                                         
 options, for cash          2,080       -      -       -        -     2,080
Estimated initial                                                          
 fair value of                                                             
 employee options                                                          
 exercised                    813       -      -       -        -       813
Shares issued upon                                                         
 exercise of                                                               
 warrants, for                                                             
 cash                         666       -      -       -        -       666
Options exercised,                                                         
 credited to share                                                         
 capital                        -       -  (813)       -        -     (813)
Share based                                                                
 payments                       -       -  6,172       -        -     6,172
Dividend paid to                                                           
 shareholders of                                                           
 the Company                    -       -      -       - (27,741)  (27,741)
                       ----------------------------------------------------
Balance at March                                                           
 31, 2011               2,818,238 (5,870) 28,326 (2,213)  149,953 2,988,434
                       ----------------------------------------------------


Eldorado Gold Corporation           
Unaudited Condensed Consolidated Statements of Cash Flows           
---------------------------------------------------------

(Expressed in thousands of U.S. dollars)                           

Attributable to shareholders of the Company              



                                                            Non-            
                                                    controlling       Total
                                                      interests      equity
Balance at January 1, 2011                               36,021   2,997,251
Total comprehensive (loss) income for the quarter         6,227      58,124

Dividends declared to Non-controlling interests          (3,622)     (3,622)
Purchase of treasury stock                                    -      (5,870)
Shares issued upon exercise of share options, for
 cash                                                         -       2,080
Estimated initial fair value of employee options
 exercised                                                    -         813
Shares issued upon exercise of warrants, for  cash            -         666
Options exercised, credited to share capital                  -        (813)
Share based payments                                          -       6,172
Dividend paid to shareholders of the Company                  -     (27,741)
                                                    -----------------------
Balance at March 31, 2011                                38,626   3,027,060
                                                    -----------------------


                Attributable to shareholders of the Company

                                Accumu-
                                 lated
                                 other
                                   com-
                                   pre-                       Non-
                                   hen-                   control-
                          Contri- sive                       ling       
                   Share   buted    in-                       int-    Total
        Note     capital surplus  come  Deficit     Total  erests    equity
Balance                                                                    
 at                                                                        
 January                                                                   
 1, 2010       2,671,634  17,865 2,227 (69,423) 2,622,303  26,144 2,648,447
Total                                                                      
 comprehe-                                                                 
 nsive                                                                     
 income                                                                    
 for the                                                                   
 quarter               -       - 1,459   50,502    51,961   2,806    54,767

Dividends                                                                  
 declared                                                                  
 to Non-                                                                   
 controll-                                                                 
 ing                                                                       
 interests             -       -     -        -         -  (1,286)   (1,286)

Shares                                                                     
 issued                                                                    
 upon                                                                      
 exercise                                                                  
 of share                                                                  
 options,                                                                  
 for cash          5,594       -     -        -     5,594       -     5,594
Estimated                                                                  
 initial                                                                   
 fair                                                                      
 value of                                                                  
 employee                                                                  
 options                                                                   
 exercised         1,981       -     -        -     1,981       -     1,981

Share                                                                      
 based                                                                     
 payments              -   6,947     -        -     6,947       -     6,947
Stock-                                                                     
 based                                                                     
 compensa-                                                                 
 tion on                                                                   
 Brazauro                                                                  
 warrants                                                                  
 &                                                                         
 options                                                                   
 converted             -       -     -        -         -       -         -

Options                                                                    
 exercised,                                                
 credited                                                                  
 to share                                                                  
 capital               -  (1,981)    -        -    (1,981)      -    (1,981)

              -------------------------------------------------------------
Balance                                                                    
 at March                                                                  
 31, 2010      2,679,209  22,831 3,686 (18,921) 2,686,805  27,664 2,714,469
              -------------------------------------------------------------


Eldorado Gold Corporation                                                  
Unaudited Condensed Consolidated Statements of Cash Flows                  
---------------------------------------------------------------------------

(Expressed in thousands of U.S. dollars)                                   

For the quarter ended March 31                     Note      2011      2010

Cash flows generated from (used in):                                       
Operating activities                                                       
Profit for the period                                      58,700    53,308
Items not affecting cash                                                   
 Provisions for asset retirement obligations                  366       513
 Depreciation and amortization                             31,217    23,333
 Unrealized foreign exchange loss                           1,733         -
 Deferred tax recovery                                     (7,494)     (776)
 Gain on disposal of assets                                     -    (1,506)
 Gain on marketable securities                               (635)   (1,112)
 Share based payments                                       7,352     6,947
 Employee benefit expense                                     423       211
                                                       --------------------
                                                           91,662    80,918

Changes in non-cash working capital                  13    18,719   (18,479)
                                                       --------------------
                                                          110,381    62,439
Investing activities                                                       
Purchase of mining interests and property, plant                           
 and equipment                                            (78,338)  (47,300)
Proceeds from the sale of mining interests and                             
 property, plant and equipment                                 17     2,266
Proceeds from the sale of marketable securities               938       692
Investment purchases                                       (1,318)        -
Increase in restricted cash                                (3,000)   (2,121)
Increase in restricted asset and other                          -    (2,512)
                                                       --------------------
                                                          (81,701)  (48,975)
Financing activities                                                       
Issuance of common shares for cash                          2,746     5,594
Dividend paid to non-controlling interests                 (6,873)   (1,286)
Dividend paid to shareholders                             (27,741)        -
Purchase of treasury stock                                 (5,870)        -
Long-term and bank debt proceeds                            1,757         -
Long-term and bank debt repayments                        (12,927)        -
                                                       --------------------
                                                          (48,908)    4,308
                                                       --------------------
Net (decrease) increase in cash and cash                                   
 equivalents                                              (20,228)   17,772
Cash and cash equivalents - beginning of period           314,344   265,369
                                                       --------------------

Cash and cash equivalents - end of period                 294,116   283,141
                                                       --------------------
                                                                    283,141
                                                                          -

See accompanying notes to the unaudited consolidated financial statements. 

Click here for the Unaudited Consolidated Financial Statements for the quarter ended March 31, 2011 in PDF: http://media3.marketwire.com/docs/e55.pdf

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