Eldorado Gold Corporation

Eldorado Gold Corporation

July 04, 2005 08:30 ET

Update on Eldorado/Afcan Transaction

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 4, 2005) - Eldorado Gold Corporation ("Eldorado", the "Company" or "we") (TSX:ELD)(AMEX:EGO) and Afcan Mining Corporation ("Afcan") (TSX:AFK) by mutual agreement have extended the period of due diligence from June 29 to July 8, 2005. The extension will enable both parties to complete final documentation of the Transaction that was announced on May 30, 2005 whereby Eldorado will acquire all of the issued and outstanding shares of Afcan. Afcan is an emerging gold producer that owns an 85% interest in Tanjianshan Gold Project in Qinghai Province in Western China. The transaction will combine Eldorado's development, operations and financial strength with Afcan's high quality Tanjianshan development and exploration project to create one of the leading gold producers in China.

Norm Pitcher, the Company's Chief Operating Officer states "We have had our technical staff on site at the Tanjianshan project and are pleased with the pace of development."

Eldorado is a gold producing and exploration company actively growing businesses in Brazil, Turkey and China. Eldorado's international expertise in mining, finance and project development, together with highly skilled and dedicated staff, is well positioned to grow in value as the Company creates and pursues new opportunities.


Norman Pitcher, Chief Operating Officer

Certain of the statements made in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which involve known and unknown risk, 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 in this release include statements regarding the anticipated benefits of the proposed business combination, estimates relating to mineral reserves, future gold production and mine life, and other statements regarding future events on the Company's or Afcan's properties, or otherwise relating to the Company or AFCAN. Forward-looking statements are subject to a variety of risks and uncertainties including but not limited to 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, 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).

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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