Eldorado Gold Corporation: Q4 2008 Financial and Operating Results

Market Wire, February, 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.