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Re: 2008 - Monday, March 17, 2008
Vila Nova Iron Ore Project
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VANCOUVER, BC -- VANCOUVER, BC - Eldorado Gold Corporation ("Eldorado"
or "the Company") is pleased to announce that it has signed a
non-binding Memorandum of Understanding ("MOU") with BHP Billiton
regarding the future sale of iron ore from Eldorado's Vila Nova Iron
Ore Project in Amapa State, Brazil ("the Project"). We expect to
finalize terms of a binding Long Term Supply Agreement ("LTSA") with
BHP Billiton in the next few weeks.

The terms and conditions of the MOU, under which the LTSA will be
structured, provide for 100% of the first 3 years of production of lump
ore and sinter fines from the Project to be purchased by BHP Billiton,
free on board (FOB) Santana Port, Amapa State.

The Project, presently forecasted to have a life of mine ("LOM") of 9
years, is expected to produce approximately 900,000 dry metric tonnes
of lump ore and sinter fines per year. Eldorado will own 75% of the
Project by financing approximately US$39 million of pre-production
capital expenditures, including working capital and certain property
payments to our Brazilian partner, Mineracao Amapari SA who maintains a
25% interest in the Project.

All permits required to initiate construction have been obtained and
site clearing has been completed. Purchase orders for long lead items
such as the crushing and screening plant have been issued. We expect
to initiate mining activities during the fourth quarter of 2008 and
begin shipping of lump ore and sinter fines from Santana Port during
the first quarter of 2009.

In consideration of the terms of the MOU we have updated the Project's
financial model. The key assumptions used in the updated model are:
(i) an increase of 30% to capital expenditures and operating expenses
to primarily account for the appreciation of the Brazilian Real and
general increases in materials and construction costs; (ii) increased
revenues taking into consideration an average LOM price of US$76 per
dry metric tonne of finished product (lump ore and sinter fines), FOB
Santana Port, consistent with current iron ore prices, and (iii) truck
haul of lump ore and sinter fines from mine site to Santana Public
Port. The updated financial results for Eldorado's 75% interest in the
project are:

Pre production capital expenditure US$39 million
IRR - after tax 54%
NPV@5% - after tax US$108 million
Pay back - after tax 1.8 years
Total cash cost US$39 per dry metric tonne of finished product, FOB
Santana Port

Paul N. Wright, President and CEO of Eldorado, commented: "We are
gratified to have a commercial partner as reputable as BHP Billiton
associated with this Project. The financial performance of Vila Nova
Iron Ore is very robust and will allow us to retain an operational and
exploration base in Brazil and South America, where we will continue to
look for opportunities in the gold sector."

Eldorado 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

Paul N. Wright
President and Chief Executive Officer


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 29, 2007. 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; 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 29, 2007. 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). The TSX has
neither approved nor disapproved the form or content of this release.

Contact:

Nancy E. Woo, Manager Investor Relations
Phone: 604.601.6650 or 1.888.353.8166
Fax: 604.687.4026
Email nancyw@eldoradogold.com

Eldorado Gold Corporation
1188, 550 Burrard Street
Vancouver, BC V6C 2B5
Web site: www.eldoradogold.com

Request for information packages: info@eldoradogold.com


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Copyright (c) 2008 ELDORADO GOLD CORP. (ELD) All rights reserved. For
more information visit our website at http://www.eldoradogold.com/ or
send mailto:info@eldoradogold.com
Message sent on Mon Mar 17, 2008 at 6:07:47 AM Pacific Time
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