Eldorado Gold Corporation
TSX : ELD
NYSE Alternext US : EGO

Eldorado Gold Corporation

February 18, 2009 19:30 ET

Eldorado Gold Corporation: Q4 2008 Financial and Operating Results

Revenue increased 159%; Earnings $0.28 per share

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2009) - (All figures in United States dollars, unless otherwise noted)

Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (TSX:ELD)(NYSE Alternext US:EGO), is pleased to report on the Company's financial and operational results for the fourth quarter ended December 31, 2008 and to provide the Company's 2008 mineral resources and mineral reserves as of December 31, 2008.

"We were very satisfied with our results in the last quarter of 2008. Production from our Kisladag and Tanjianshan mines was up 13 percent over the third quarter totaling 81,845 ounces of gold. We are close to finishing construction at our Vila Nova iron ore project in Brazil, and construction of our Efemcukuru gold mine in Turkey remains on schedule for start up in 2010. Our Company has a strong balance sheet: we are debt free and we reported $61.8 million in cash at year-end," said Paul N. Wright, President and Chief Executive Officer.

Q4 2008 Highlights

- Produced 81,845 ounces of gold at our Tanjianshan and Kisladag mines operations at an average cash operating cost of $298 per ounce;

- Sold 79,965 ounces of gold at a realized average price of $800 per ounce;

- Reported earnings of $0.28 per share;

- Neared completion of construction of our Vila Nova iron ore mine and continued construction of our Efemcukuru gold mine;

- Repaid the remaining $35.0 million in debt on our revolving credit facility with HSBC Bank, enabling the Company to be debt free entering 2009;

- Completed the sale of our Sao Bento mine to AngloGold Ashanti for $70.0 million in AngloGold shares; and

- Reported a cash balance of $61.8 million at year-end.

Financial Results

Our consolidated net income for the fourth quarter of 2008 was $101.2 million or $0.28 per share, the sale of Sao Bento accounted for $0.21 per share, compared with a net loss of $9.1 million or $0.03 per share in the fourth quarter of 2007. Over the quarter, we sold 79,965 ounces of gold at an average price of $800 per ounce, compared to 31,902 ounces at an average price of $774 per ounce in the fourth quarter of 2007. Revenues increased 159% over the same period in 2007 due to higher selling prices and increased ounces sold.

Operating Performance

Tanjianshan

During the quarter we milled 216,273 tonnes of ore at a grade of 4.33 grams per tonne of gold. We produced 21,092 ounces of gold at a cash cost of $352 per ounce in the fourth quarter, and we sold 21,092 ounces of gold for fourth quarter revenue of $16.8 million. We spent $9.8 million on capital expenditures, primarily relating to construction of the sulphide ore processing facilities.

Kisladag

During the quarter, we placed 2,371,101 tonnes of ore on the leach pad at a grade of 1.34 grams per tonne of gold. We produced 60,753 ounces of gold at a cash cost of $279 per ounce and sold 58,873 ounces of gold for fourth quarter revenues of $47.1 million.

Development

Efemcukuru

Construction continued at Efemcukuru, with spending of $6.7 million during the quarter. Construction activities included access road development and geotechnical testing of the plant site and rock dump to establish ground support requirements for future structures. In addition, we are on schedule for placing orders for all major pieces of equipment and we have selected a Turkish contractor for preproduction mining work.

Vila Nova Iron Ore

We are anticipating the completion and commissioning of our Vila Nova iron ore project in the first quarter of 2009. In the fourth quarter, we spent $13.2 million on the project, with construction activities focusing on the installation of the crushing and screening circuit. We are continuing negotiations on the sale of iron ore.

Perama Hill

At our Perama Hill project in Greece, work has begun to lay the groundwork associated with engaging local and federal stakeholders and reinitiating the permitting process. A review of the overall pit design and plan is underway for input as part of a revised Environmental Impact Assessment which will be prepared in early 2009.

Exploration

Exploration - Turkey

Our reconnaissance work during the quarter focused on Sayacik, a volcanic center adjacent to Kisladag, where we conducted detailed mapping, a magnetic geophysical survey and soil sampling. We will conduct drill testing in this area in 2009. Stream sediment and soil geochemical sampling showed positive anomalies at our Arpah project in the central Pontides region; we are now preparing plans for follow-up evaluation next summer. At Efemcukuru, we drilled seven holes totaling 1,292 meters in Q4 2008 that successfully intersected precious metal and base metal mineralization in the North Ore Shoot.

Exploration - Brazil

Exploration in Brazil consisted of drilling and camp upgrading activities at the Tocantinzinho project. We drilled more than 3,500 meters in 11 diamond drill holes, and the results are confirming predicted gold grades in areas of inferred mineral resources.

Exploration - China

At Tanjianshan, we drilled 1,754 meters in 10 holes in Q4 2008 and we completed testing at XJG and QLT. The holes successfully intersected gold mineralization and will be tested more fully in 2009.

USA

As part of our joint venture with AuEx, we conducted mapping, soil geochemical sampling and ground magnetic geophysical surveys on our joint venture projects with AuEx Ventures. We also executed a reverse circulation drill program at the Klondike North project, where drilling totalled 2,584 meters in 12 holes.

Mineral Resources and Reserves

The Company successfully increased its measured and indicated resources by 13 percent with a year end total of 11,778,000 ounces. In addition the Company's inferred resources increased by 12 percent to 4,177,000 ounces. Proven and probable reserves at year end of 7,561,000 ounces were down modestly compared with the previous year total of 7,655,000 ounces.

Completion of Sao Bento Divestiture

On December 15, we completed the sale of our Sao Bento mine in Brazil to AngloGold Ashanti for $70.0 million payable by the issuance of 2,701,660 common shares of AngloGold, resulting in a gain on the sale of $72.5 million.



2008 Mineral Resources and Mineral Reserves
-------------------------------------------

Table 1: Eldorado Gold Mineral Resources and Reserves December 31, 2008

GOLD RESOURCES RESERVES
------------------------------------- ----------------------------------
In-situ In-situ
Gold Gold
Tonnes Grade ounces Tonnes Grade ounces
Property (x1000) (Au g/t) (x1000) (x1000) (Au g/t) (x1000)
------------------------------------- ----------------------------------
Kisladag
Measured 72,810 1.04 2,432 Proven 67,746 1.08 2,353
Indicated 207,070 0.82 5,430 Probable 93,811 1.05 3,170
M + I 279,880 0.88 7,862 Total 161,557 1.06 5,523
Inferred 126,900 0.63 2,552
------------------------------------- ----------------------------------
Tanjianshan
Measured 6,985 3.34 751 Proven 5,609 3.77 680
Indicated 2,941 2.76 261 Probable 1,152 3.71 137
M + I 9,926 3.17 1,012 Total 6,761 3.76 817
Inferred 3,493 3.54 398
------------------------------------- ----------------------------------
Efemcukuru
Measured 1,235 13.80 548 Proven 1,320 11.89 505
Indicated 3,683 8.39 993 Probable 2,465 9.04 716
M + I 4,918 9.75 1,541 Total 3,785 10.04 1,221
Inferred 2,109 9.95 675
------------------------------------- ----------------------------------
Perama
Measured - - - Proven
Indicated 11,710 3.62 1,363 Probable
M + I 11,710 3.62 1,363 Total
Inferred 8,733 1.96 552
------------------------------------- ----------------------------------
Total
Measured 81,030 1.43 3,731 Proven 74,675 1.47 3,538
Indicated 225,404 1.11 8,047 Probable 97,428 1.28 4,023
M + I 306,434 1.20 11,778 Total 172,103 1.37 7,561
Inferred 141,235 0.92 4,177
------------------------------------- ----------------------------------

IRON RESOURCES RESERVES
------------------------------------- ----------------------------------
In-situ In-situ
Gold Gold
Tonnes Grade ounces Tonnes Grade ounces
Property (x1000) (Fe%) (x1000) (x1000) (Fe%) (x1000)
------------------------------------- ----------------------------------
Vila Nova
Measured 2,285 63.5 Proven 2,285 63.5
Indicated 7,679 61.0 Probable 6,987 60.2
M + I 9,964 61.6 Total 9,272 61.0
Inferred 2,022 61.2
------------------------------------- ----------------------------------
Notes for Resources:
1) Gold price used was $725/oz.
2) Cut-off grades (gold g/t): Kisladag: 0.4 g/t; Tanjianshan: 1.0 g/t;
Efemcukuru: 3.0 g/t: Perama: 1.0 g/t
3) Stephen Juras, Ph.D., P.Geo.and Manager, Geology for the Company is the
qualified person responsible for all the mineral resource estimates for
the Company's material properties, namely Kisladag, Tanjianshan and
Efemcukuru; the Company does not currently consider Perama or Vila Nova
to be material properties
Notes for Reserves:
1) Gold price used for Kisladag and Tanjianshan was $725/oz and for
Efemcukuru was $530/oz.
2) Cut-off grades (gold g/t): Kisladag: 0.35 g/t oxide, 0.50 g/t sulphide;
Tanjianshan: 1.3 g/t JLG oxide, 1.64 g/t JLG sulphide; Efemcukuru:
4.5 g/t
3) Qualified Persons: Richard Miller, P.Eng. and Manager, Mine Engineering
of the Company is responsible for the Kisladag and Tanjianshan reserves;
Andy Nichols, P.Eng., Chief Mining Engineer of Wardrop Engineering is
responsible for the Efemcukuru reserves;
4) The Mineral Reserves are inclusive to the Mineral Resources.


2008 Mineral Resources and Mineral Reserves

Our mineral resources and mineral reserves were updated as of December 31, 2008. The gold price used for the Kisladag and Tanjianshan reserve calculations was $725 per ounce and for Efemcukuru reserve calculation $530 per ounce (December 31, 2007 - $600 per ounce). The gold price used for all resource calculations was $725 per ounce.

At Kisladag the major change in resources has been a decrease in the inferred ounces from 3.346 million ounces to 2.552 million ounces. This change is a result of an updated geologic interpretation based on the 2008 drilling program. In the western portion of the deposit, outside of the pit area where the bulk of the inferred ounces were located, the basement schist unit was encountered at a higher level than was previously interpreted. This ledge-like structure is un-mineralized and therefore the ounces interpolated into this area were removed. The interpretation of the main ore body as a porphyritic stock is unchanged, and all of the measured and indicated ounces mined (approximately 310,000) were replaced and 110,000 ounces added. Based on the latest drilling information the ore body appears to be tilted slightly to the south-east, and some of the ounces lost in the western portion of the deposit were replaced in the south-east sector. Drill hole GC-324 encountered 131 meters at 1.06 g/t Au from 370-501 meters down the hole. The hole bottomed in ore grade material, outside of, and below the pit bottom final design. Previously this area had been interpolated as waste, and 2009 drilling will focus on expanding the resources here.

Kisladag reserves are essentially unchanged from December 31, 2007. All of the reserve ounces mined were replaced. Based on a comprehensive program of geotechnical drilling during 2008 the pit slopes were flattened slightly (approximately 1.5 degrees) which offset the increase in gold price.

Tanjianshan inferred resources increased by 252,000 ounces, mainly as a result of adding in the XJG zone south of the current JLG pit. Measured and indicated resources, and proven and probable reserves declined by the approximate amount mined.

Efemcukuru resources increased in all categories (94,000 measured and indicated ounces, and 436,000 inferred ounces), largely as a result of drilling in the North Ore Shoot area. Reserves were not recalculated.

The Perama Hill project has been included in the resource statement subsequent to it being acquired in 2008. In addition to the resources calculated by Roscoe, Postle, and Associates in 2004, Eldorado has added an additional 525,000 ounces of inferred by including the Perama South zone. The area lies immediately south of the main Perama Hill Deposit and has been defined by shallow reverse circulation drilling. Management feels that further work in this area will increase both the resource confidence and total ounces.

Eldorado is a gold producing and exploration company actively growing businesses in Turkey, China, Brazil, Greece and the surrounding regions. 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 & 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 reports, including the Annual Information Form and Form 40-F dated March 31, 2008 and technical reports filed under the Company's name at www.sedar.com.

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 or information within the meaning of the United States Private Securities Litigation Reform Act of 1995, and applicable Canadian securities law. Such forward looking statements or information include, but are not limited to estimates of mineral reserves and mineral resources, estimates of future gold production and development and completion schedules. 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. Such forward-looking statements and forward-looking information 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 and forward-looking information.

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; risks from litigation; 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 31, 2008. 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.

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 31, 2008.

Although we have attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking statements and forward-looking information are based upon management's beliefs, estimates and opinions at the time they are made and we undertake no obligation to update forward-looking statements and forward-looking information if these beliefs, estimates and opinions or circumstances should change, except as required by applicable law. There can be no assurance that forward-looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information.

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

Request for information packages: info@eldoradogold.com



PRODUCTION HIGHLIGHTS

---------------------------------------------------------------------------
First Second Third Fourth Fourth
Quarter Quarter Quarter Quarter Quarter
2008 2008 2008 2008 2007 2008 2007
---------------------------------------------------------------------------

Gold
Production
Total
Ounces
Produced 67,234 87,380 72,343 81,845 32,000 308,802 281,135
Commercial
Produc-
tion 67,234 87,380 72,343 81,845 32,000 308,802 268,643
Cash
Operating
Cost ($/oz)
(1,4) 213 229 283 298 216 257 236
Total Cash
Cost ($/oz)
(2,4) 268 259 313 319 262 289 263
Total
Production
Cost ($/oz)
(3,4) 393 293 402 404 522 370 338
Realized
Price
($/oz-
sold) 933 904 870 800 774 876 674
---------------------------------------------------------------------------

Kisladag
Mine,
Turkey(5)
Commercial
Produc-
tion 27,228 55,490 46,863 60,753 - 190,334 135,306
Tonnes
to Pad 529,480 2,092,957 2,562,343 2,371,101 - 7,555,881 4,547,860
Grade
(grams/
tonne) 1.18 1.47 1.05 1.34 - 1.27 1.33
Cash
Operating
Cost ($/oz)
(4) 217 230 270 279 - 254 189
Total
Cash Cost
($/oz)
(2,4) 218 232 273 281 - 256 192
Total
Production
Cost ($/oz)
(3,4) 246 273 310 314 - 291 224
---------------------------------------------------------------------------

Tanjianshan
Mine, China
Total
Ounces
Produced 40,006 31,890 25,480 21,092 32,000 118,468 138,162
Commercial
Produc-
tion 40,006 31,890 25,480 21,092 32,000 118,468 125,670
Tonnes
Milled 223,395 193,035 226,126 216,273 173,945 858,829 757,354
Grade
(grams/
tonne) 6.83 6.04 4.16 4.33 7.20 5.31 6.23
Cash
Operating
Cost ($/oz)
(4) 211 229 306 352 216 261 288
Total
Cash Cost
($/oz)
(2,4) 302 305 387 429 261 343 342
Total
Production
Cost ($/oz)
(3,4) 493 327 571 664 526 496 472
---------------------------------------------------------------------------

Sao Bento
Mine, Brazil
Commercial
Produc-
tion - - - - - - 7,667
Tonnes
Milled - - - - - - 20,069
Grade
(grams/
tonne) - - - - - - 11.71
Cash
Operating
Cost ($/oz)
(4) - - - - - - 208
Total
Cash Cost
($/oz)
(2,4) - - - - - - 224
Total
Production
Cost ($/oz)
(3,4) - - - - - - 152
---------------------------------------------------------------------------

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 Total Cash Costs, plus foreign exchange gain or loss, depreciation,
amortization and reclamation expenses.
4 Cash operating, total cash and total production costs are non-GAAP
measures. See the section "Non-GAAP Measures" of this Review.
5 Kisladag temporarily ceased operations on August 18, 2007 and
reopened in March 6, 2008.


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

(Expressed in thousands of US dollars)

December 31, December 31,
2008 2007
$ $
Assets
Current assets
Cash and cash equivalents 61,797 46,014
Restricted cash - 65,710
Marketable securities 43,610 1,615
Accounts receivable and other 36,310 28,720
Inventories 86,966 57,525
Derivative contract - 2,956
Future income taxes 175 959
-------------------------
228,858 203,499
Restricted assets and other 8,349 10,538
Mining interests 668,162 377,705
-------------------------
905,369 591,742
-------------------------
-------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 42,658 40,452
Debt - current 139 65,422
Current portion of future income taxes 1,097 -
-------------------------
43,894 105,874
Debt - long-term - 139
Contractual severance obligations - 1,479
Asset retirement obligations 4,812 8,290
Future income taxes 60,043 26,781
-------------------------
108,749 142,563
-------------------------

Non-controlling interest 4,799 -

Shareholders' Equity
Share capital 931,933 753,058
Contributed surplus 19,378 13,083
Accumulated other comprehensive (loss) income (6,431) 214
Deficit (153,059) (317,176)
-------------------------
791,821 449,179
-------------------------
905,369 591,742
-------------------------
-------------------------


Eldorado Gold Corporation
Unaudited Consolidated Statements of Operations and Deficit
For the period ended December 31,
--------------------------------------------------------------------------

(Expressed in thousands of US dollars except per share amounts)

Three months ended Twelve months ended
------------------ -------------------
2008 2007 2008 2007
$ $ $ $
Revenue
Gold sales 63,976 24,692 277,723 179,302
Interest and other income 1,172 3,820 10,508 9,397
--------------------------------------
65,148 28,512 288,231 188,699
--------------------------------------
Expenses
Operating costs 25,943 9,038 92,004 72,691
Depletion, depreciation and
amortization 6,887 8,214 25,995 20,041
General and administrative 12,349 9,002 38,305 26,798
Exploration 3 3,150 12,309 11,634
Mine standby costs - 4,621 2,432 6,575
Asset retirement obligation costs 233 364 3,108 604
Foreign exchange (gain) loss (1,277) (313) 176 (4,658)
--------------------------------------
44,138 34,076 174,329 133,685
Other (income) expenses
Gain on disposal of assets (72,441) (259) (70,774) (3,823)
Gain on marketable securities held
for trading (3,081) - (2,935) -
Interest and financing costs 314 712 2,940 3,415
Loss (gain) on derivative contract 739 (2,083) 2,956 (2,083)
--------------------------------------
(30,331) 32,446 106,516 131,194
--------------------------------------
Income (loss) before income taxes
and other items 95,479 (3,934) 181,715 57,505
--------------------------------------
Income tax (expense) recovery
Current (3,248) (1,734) (25,403) (4,823)
Future 8,356 (3,437) 12,904 (17,261)
--------------------------------------
5,108 (5,171) (12,499) (22,084)
--------------------------------------
Non-controlling interest 598 - (5,099) -
--------------------------------------

Net income (loss) for the period 101,185 (9,105) 164,117 35,421

Deficit, beginning of period (254,244) (308,071) (317,176) (352,597)
--------------------------------------
Deficit, end of period (153,059) (317,176) (153,059) (317,176)
--------------------------------------
--------------------------------------

Weighted average number of shares
outstanding
Basic 366,672 344,234 355,132 343,194
Diluted 367,238 345,542 356,308 344,621

Earnings per share
Basic income per share - US$ 0.28 (0.03) 0.46 0.10
Diluted income per share - US$ 0.28 - 0.46 0.10


Eldorado Gold Corporation
Unaudited Consolidated Statements of Cash Flows
For the period ended December 31,
--------------------------------------------------------------------------

(Expressed in thousands of US dollars, unless otherwise stated)

Three months ended Twelve months ended
------------------ -------------------
2008 2007 2008 2007
$ $ $ $
Cash flows generated from (used in):

Operating activities
Net earnings (loss) for the period 101,185 (9,105) 164,117 35,421
Items not affecting cash
Asset retirement obligations costs 233 364 3,108 604
Contractual severance expense - 123 - 721
Depletion, depreciation and
amortization 6,887 8,214 25,995 20,041
Unrealized foreign exchange (gain)
loss (3,950) 281 (3,950) 796
Future income taxes (recovery)
expense (8,356) 3,437 (12,904) 17,261
Gain on marketable securities held
for trading (3,081) - (2,935) -
Gain on disposal of assets (72,441) (37) (70,774) (3,601)
Imputed interest and financing
costs 9 17 39 67
Stock-based compensation 5,189 1,183 13,681 7,267
Pension expense 1,478 - 1,478 -
Non-controlling interest (598) - 5,099 -
Loss (gain) on derivative contract 739 (2,083) 2,956 (2,083)
--------------------------------------
27,294 2,394 125,910 76,494
Property reclamation payments - (858) (1,225) (5,496)
Contractual severance payments (150) (407) (953) (2,458)
Changes in non-cash working capital (10,179) 10,579 (18,690) 1,265
--------------------------------------
16,965 11,708 105,042 69,805

Investing activities
Mining interests
Acquisition of Frontier net of cash
received - - 7,479 -
Capital expenditures (44,114) (27,440) (123,803) (107,938)
Sales and disposals (915) (826) 5,214 1,482
Marketable securities
Purchases 3,201 (1,176) (20,462) (1,556)
Disposals 25,474 663 25,737 663
Pension plan contributions (3,791) - (3,791) -
Pre-production gold sales
capitalized in mining interests - - - 10,052
Value added taxes recoverable on
mining interests - (3,874) - -
Restricted cash 40,805 6,143 71,515 5,540
--------------------------------------
20,660 (26,510) (38,111) (91,757)

Financing activities
Capital stock
Issuance of common shares for cash 8,005 193 14,731 9,500
Debt
Proceeds - 14,859 5,000 24,859
Repayment (35,400) (11,131) (70,879) (26,360)
--------------------------------------
(27,395) 3,921 (51,148) 7,999
--------------------------------------
Net increase (decrease) in cash and
cash equivalents 10,230 (10,881) 15,783 (13,953)
Cash and cash equivalents -
beginning of period 51,567 56,895 46,014 59,967
--------------------------------------
Cash and cash equivalents -
end of period 61,797 46,014 61,797 46,014
--------------------------------------
--------------------------------------


To view the Financial and Operational Review please click on the following link: http://media3.marketwire.com/docs/ELDQ408.pdf

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

Contact Information