Eldorado Gold Corporation
AMEX : EGO
TSX : ELD

Eldorado Gold Corporation

January 31, 2006 20:35 ET

Eldorado Gold Financing Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2006) -

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES

Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (the "Company" or "Eldorado") (TSX:ELD)(AMEX:EGO) is pleased to announce that the Company has received a receipt for its final short form prospectus relating to the sale of 30,000,000 Common Shares (NR January 19, 2006) at a price of CDN$5.40 per common share (the "Offer Price"), for gross proceeds of CDN$162,000,000, pursuant to an agreement with a syndicate of underwriters led by Orion Securities Inc. and including National Bank Financial Inc., TD Securities Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., Sprott Securities Inc., Salman Partners Inc., and. Raymond James Ltd. (the "Underwriters"). The Underwriters have exercised the Underwriters over-allotment of 4,500,000 Common Shares for an additional CDN$24,300,000, of gross proceeds to the Company. The closing date of the offering is expected to occur on or about February 7, 2006.

The net proceeds of the offering will be used for acquisitions of late stage development gold properties in China, continued development and exploration of the Company's properties in Turkey and Brazil, other property acquisitions and for general corporate purposes.

The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

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

Certain of the statements made may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and forward looking information within the meaning of the Securities Act (Ontario), 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. Factors include, but are not limited to, the Company's need for additional funding, the Company's expectations as to the use of proceeds from the offering, the completion of the offering is subject to the satisfaction of customary closing conditions and other risk factors associated with the Company's business contained in the Company's Annual Information Form and Form 40-F filed with securities regulatory authorities and dated March 30, 2005 and in the Company's Preliminary Short Form Prospectus filed with securities regulatory authorities and dated January 23, 2006. The Company does 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 securities regulatory authorities.

Eldorado Gold Corporation's common shares trade on the Toronto Stock Exchange (TSX:ELD) and the American Stock Exchange (AMEX:EGO).

This and other news releases complete with graphic attachments, if any, are available at the Company's website (www.eldoradogold.com) or may be acquired by fax or mail upon request.

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

Contact Information