Eldorado Gold Corporation Q2, 2009 Financial and Operating Results - 2009 Production and Cost Guidance Remains Intact

Re: News Release - Thursday, July 30, 2009
Title: Q2, 2009 Financial and Operating Results - 2009 Production and Cost Guidance Remains Intact - Earnings $0.07 per share

(all figures in United States dollars, unless otherwise noted)

VANCOUVER, BC - Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, ("Eldorado" or the "Company") is pleased to report on the Company's financial and operational results for the second quarter ended June 30, 2009. The Company reported net income of $25.9 million or $0.07 per share and cash flow from operations of $36.7 million or $0.10 per share for the second quarter ended June 30, 2009.

"This was a very strong quarter for us", commented Paul N. Wright, President and Chief Executive Officer of Eldorado. "We are pleased with the performance of our mines, our total production increased by close to 38% over production in the first quarter of 2009. We're also proud to have robust margins and remain one of the lowest cost pure gold producers in the industry. These results keep us on track with our forecasted 2009 total production of approximately 330,000 ounces at a cash operating cost of $300 per ounce. Other highlights of the quarter also underline our strong position: our cash balances have more than doubled since year-end, and with our recent investment in Sino Gold we will continue to focus on our strategy of regional growth."

Q2 2009 Highlights

Produced 84,572 ounces of gold at our Tanjianshan and Kisladag mines at an average cash operating cost of $300 per ounce;
Sold 86,453 ounces of gold at a realized average price of $927 per ounce;
Reported earnings of $0.07 per share and cash flow of $0.10 per share;
Reported $135.7 million cash;
Completed the successful commissioning of the sulphide ore processing facility at Tanjianshan;
Entered into an agreement with Gold Fields to acquire 57.9 million shares of Sino Gold Mining, which subsequently closed July 27, 2009.

Financial Results

Eldorado's consolidated net income for the second quarter of 2009 was $25.9 million or $0.07 per share, compared with $25.2 million or $0.07 per share in the second quarter of 2008. Over the quarter, we sold 86,453 ounces of gold at an average price of $927 per ounce, compared to 88,610 ounces at an average price of $904 per ounce in the second quarter of 2008. Lower sales volumes in the second quarter of 2009 as compared to 2008 were offset by higher unit prices.

Operating Performance
Kisladag
During the quarter, we placed 2,428,611 tonnes of ore on the leach pad at an average grade of 1.18 grams of gold per tonne. We produced 62,985 ounces of gold at a cash cost of $269 per ounce, up from production of 46,192 ounces of gold in the first quarter of 2009. Production improved compared to the first quarter as weather conditions returned to more normal patterns.

Tanjianshan
We produced 21,587 ounces of gold at a cash cost of $390 per ounce in the second quarter, up from 15,234 ounces in the first quarter. We declared commercial production from the roaster at the start of the quarter and gold recovery continues to increase through the flotation and roaster circuits. July production is expected to be approximately 10,500 ounces, reflecting the continued improved performance of the entire circuit. During the quarter, we invested $2.2 million in capital expenditures, primarily relating to constructing and commissioning the roaster. Production guidance for our Tanjianshan mine remains intact at 95,000-100,000 ounces in 2009.

Development
Efemcukuru
We continued infill drilling of the north ore shoot, with drilling results showing good continuity of the mineralized zone along-strike and down-dip. Drilling will continue through the 3rd quarter and will be incorporated in an updated reserve and mine plan to be completed prior to year end. Mine construction, engineering and procurement activities continues to progress satisfactorily.

Vila Nova Iron Ore
We successfully completed the construction and initial commissioning of the process circuit at Vila Nova. Given the recent weakness in global demand for iron ore we have put the project on care and maintenance status until demand for iron ore increases and prices recover.

Perama Hill
At our Perama Hill project in Greece, we held meetings with local and regional officials during the quarter to discuss the project. We continued work on the preliminary environmental impact assessment, which we will submit to Greek authorities in the third quarter 2009. Finally, we are preparing the National Instrument 43-101 report, which we also plan to file in the third quarter of the year.

Tocantinzinho
At our Tocantinzinho project in Brazil, we began scoping engineering studies to support the permitting effort and to help in the economic evaluation of the project. We also initiated an additional round of metallurgical testwork. In total, we spent $2.4 million at Tocantinzinho during the quarter.

Exploration
Turkey
We continued our reconnaissance work on the Sayacik project, which included a property-wide induced polarization geophysical survey and a drilling program. At Efemcukuru, we drilled 17 holes totalling 4,358 meters that continued to define the zone of mineralization along the northwest portion of the deposit and the area between the middle ore shoot and the north ore shoot. At Kisladag, we completed eight Diamond drill holes totaling 5,568 meters designed to upgrade inferred resources lying below the design pit outline.

Brazil
Exploration in Brazil included the drilling of 20 holes totalling 6,681 meters at the Tocantinzinho project.

China
At Tanjianshan, we drilled 216 shallow holes as part of our rotary air blast drilling program designed to test for extensions of Qinlongtan mineralization. The results are outlining a zone anomalous in gold and arsenic that extends southward from Qinlongtan.

Corporate Activities
Agreement with Gold Fields to acquire Sino Gold shares
Effective June 3, 2009, we entered into an agreement with Gold Fields to acquire 57.9 million shares of Sino Gold Mining (representing 19.83% of Sino Golds issued and outstanding shares), in exchange for 27.8 million Eldorado shares. The acquisition closed on July 27, 2009.

Disposal of interest in the Macusani East Uranium project
Effective June 1, 2009, we sold our interest in the Macusani East Uranium exploration project to Solex Resources. Following the completion of the transaction, Eldorado holds directly 13,820,487 Solex common shares representing 19.9% of the issued and outstanding Solex shares.

Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. 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"

Paul N. Wright
President and Chief Executive Officer

Eldorado will host a conference call Friday July 31, 2009 to discuss the 2009 Second Quarter Financial Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-2216 in Toronto or 1-866-226-1792 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 August 7, 2009 by dialling 416-695-5800 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code 1164000.

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 forward looking statements or information within the meaning of the Securities Act (Ontario). Such forward looking statements or information include, but are not limited to statements or information with respect to 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 or information 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 or information. 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, 2009. Forward-looking statements herein include statements regarding the expectations and beliefs of management. 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, 2009. 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 common shares trade on the Toronto Stock Exchange (TSX: ELD) and the NYSE-Amex US (NYSE-A: EGO).

Contact:
Nancy Woo, VP Investor Relations
Eldorado Gold Corporation
Phone: 604.601-6650 or 1.888.353.8166
Fax :604.687.4026
Email: nancyw@eldoradogold.com

1188, 550 Burrard Street
Vancouver, BC V6C 2B5
Website www.eldoradogold.com
Request for information packages:laurelw@eldoradogold.com

PRODUCTION HIGHLIGHTS

	First Quarter 2009	Second Quarter 2009	Second Quarter 2008	First Six Months 2009	First Six Months 2008
Gold Production
Ounces Produced	61,426	84,572	87,380	145,998	154,614
Cash Operating Cost ($/oz)^1,4	296	300	229	298	222
Total Cash Cost ($/oz)^2,4	315	322	259	319	263
Total Production Cost ($/oz)^3,4	375	387	293	382	337
Realized Price ($/oz - sold)	909	927	904	920	917
Kisladag Mine, Turkey
Ounces Produced	46,192	62,985	55,490	109,177	82,718
Tonnes to Pad	2,084,714	2,428,611	2,092,957	4,513,325	2,622,437
Grade (grams / tonne)	1.34	1.18	1.47	1.26	1.41
Cash Operating Cost ($/oz)⁴	274	269	230	271	225
Total Cash Cost ($/oz)^2,4	276	271	232	273	228
Total Production Cost ($/oz)^3,4	315	309	273	312	264
Tanjianshan Mine, China
Ounces Produced	15,234	21,587	31,890	36,821	71,896
Tonnes Milled	228,066	231,874	193,035	459,940	416,430
Grade (grams / tonne)	3.97	5.63	6.04	4.81	6.46
Cash Operating Cost ($/oz)⁴	362	390	229	378	219
Total Cash Cost ($/oz)^2,4	432	470	305	454	303
Total Production Cost ($/oz)^3,4	557	616	327	591	420

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 MD&A.

Eldorado Gold Corporation
Unaudited Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

	June 30,	December 31,
	2009	2008
	$	$
Assets

Current assets
Cash and cash equivalents	135,720	61,851
Restricted cash (note 4)	5,500	-
Marketable securities	14,154	43,610
Accounts receivable and other	18,210	36,109
Inventories	104,235	86,966
Future income taxes	-	175
	277,819	228,711
Restricted assets and other	8,257	8,349
Mining interests	691,316	668,309
	977,392	905,369

Liabilities

Current liabilities
Accounts payable and accrued liabilities	43,972	42,659
Debt	5,121	139
Future income taxes	1,590	1,097
	50,683	43,895
Asset retirement obligations	4,957	4,812
Future income taxes	59,822	60,043
	115,462	108,750

Non-controlling interest	5,814	4,799

Shareholders Equity

Share capital (note 6(a))	951,255	931,933
Contributed surplus (note 6(b))	18,901	19,378
Accumulated other comprehensive income (loss) (note 6(c))	519	(5,971)
Deficit	(114,559)	(153,520)
	856,116	791,820
	977,392	905,369

Subsequent event (note 8)

Eldorado Gold Corporation
Unaudited Consolidated Statements of Operations and Deficit
For the periods ended June 30,

(Expressed in thousands of U.S. dollars except per share amounts)

	Three months ended		Six months ended
	2009	2008	2009	2008
	$	$	$	$
Revenue
Gold sales	80,147	80,059	132,353	148,734
Interest and other income	391	2,469	587	6,313
	80,538	82,528	132,940	155,047

Expenses
Operating costs	28,502	22,977	46,944	42,796
Depletion, depreciation and amortization	6,538	3,512	10,998	12,336
General and administrative	7,897	9,937	16,659	19,731
Exploration	3,374	2,672	5,436	4,863
Mine standby costs	936	-	936	2,433
Asset retirement obligation costs	78	133	131	266
Foreign exchange (gain) loss	1,962	(1,686)	(1,127)	(832)
	49,287	37,545	79,977	81,593

Gain on disposal of assets (note 3)	(1,463)	-	(1,463)	-
Gain on marketable securities	(1,083)	-	(119)	(24)
Interest and financing costs	77	842	158	1,870
Loss on derivative contract	-	739	-	1,478
	46,818	39,126	78,553	84,917
Income before income taxes and non-controlling interest	33,720	43,402	54,387	70,130

Income tax (expense) recovery
Current	(7,636)	(8,397)	(13,653)	(14,079)
Future	469	(4,843)	(758)	(5,152)
	(7,167)	(13,240)	(14,411)	(19,231)

Non-controlling interest	(653)	(5,007)	(1,015)	(5,007)

Net income for the period	25,900	25,155	38,961	45,892

Deficit, beginning of period	(140,459)	(296,439)	(153,520)	(317,176)

Deficit, end of period	(114,559)	(271,284)	(114,559)	(271,284)

Weighted average number of shares outstanding
Basic	371,118	345,051	370,494	344,827
Diluted	371,964	346,822	371,868	346,230

Earnings per share
Basic income per share - US$	0.07	0.07	0.11	0.13
Diluted income per share - US$	0.07	0.07	0.10	0.13

Eldorado Gold Corporation
Unaudited Consolidated Statements of Cash Flows
For the periods ended June 30,

(Expressed in thousands of U.S. dollars, unless otherwise stated)

	Three months ended		Six months ended
	2009	2008	2009	2008
	$	$	$	$
Cash flows generated from (used in):

Operating activities
Net income for the period	25,900	25,155	38,961	45,892
Items not affecting cash
Asset retirement obligations costs	78	133	131	266
Depletion, depreciation and amortization	6,538	3,512	10,998	12,336
Unrealized foreign exchange (gain) loss	2,257	-	(426)	418
Future income taxes expense (recovery)	(469)	4,843	758	5,152
Gain on disposal of assets	(1,463)	-	(1,463)	-
Gain on marketable securities	(1,083)	-	(119)	(24)
Imputed interest and financing costs	-	9	-	19
Stock-based compensation	2,721	2,961	5,801	7,843
Pension expense (note 5)	605	-	803	-
Non-controlling interest	653	5,007	1,015	5,007
Loss on derivative contract	-	739	-	1,478
	35,737	42,359	56,459	78,387
Bonus cash award units payments	(484)	-	(2,543)	-
Property reclamation payments	-	(745)	-	(1,397)
Contractual severance payments	-	(28)	-	(259)
Changes in non-cash working capital (note 9)	1,448	(2,255)	8,658	9,643
	36,701	39,331	62,574	86,374

Investing activities
Mining interests
Capital expenditures	(19,823)	(27,052)	(38,852)	(39,766)
Sales and disposals	35	219	35	440
Marketable securities
Purchases	-	(651)	-	(2,443)
Disposals	5,931	-	36,388	263
Pension plan contributions	(97)	-	(1,856)	-
Restricted cash and other restricted assets	2,520	11,010	(3,005)	5,710
	(11,434)	(16,474)	(7,290)	(35,796)

Financing activities
Capital stock
Issuance of common shares for cash	2,493	4,050	13,603	5,263
Long-term and bank debt
Proceeds	6	-	4,982	5,000
Repayments	-	(10,479)	-	(10,479)
	2,499	(6,429)	18,585	(216)
Net increase in cash and cash equivalents	27,766	16,428	73,869	50,362
Cash and cash equivalents - beginning of period	107,954	79,948	61,851	46,014
Cash and cash equivalents - end of period	135,720	96,376	135,720	96,376

Supplementary cash flow information (note 7)

Eldorado Gold Corporation
Unaudited Consolidated Statements of Comprehensive Income
For the periods ended June 30,

(Expressed in thousands of U.S. dollars, unless otherwise stated)

	Three months ended		Six months ended
	2009	2008	2009	2008
	$	$	$	$

Net earnings for the period ended June 30,	25,900	25,155	38,961	45,892

Other comprehensive income (loss)
Unrealized gains on available-for-sale investment (note 6(c))	3,246	2,083	5,559	1,623
Realized gains (losses) on available-for-sale investments (note 6(c))	1,200	-	1,200	(61)
FIT on unrealized gains on available-for-sale investment (note 6(c))	(269)	-	(269)	-


Comprehensive income for the period ended June 30,	30,077	27,238	45,451	47,454

View Second Quarter Report Ended June 30, 2009:
2009 Second Quarter Report Ended June 30, 2009

View News Release in PDF Format:
http://www.eldoradogold.com/i/pdf/09-17.pdf

Copyright � 2009 ELDORADO GOLD CORP. (ELD) All rights reserved. For more information visit our website at http://www.eldoradogold.com/ or send email to info@eldoradogold.com ..
Message sent on Thu Jul 30, 2009 at 4:28:30 PM Pacific Time

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