VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 2, 2013) -  Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation (News - Market indicators)(NYSE:EGO) ("Eldorado" the "Company" or "we"), is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2013. Profit attributable to shareholders of the Company for the quarter was $79.8 million or $0.11 per share excluding a one-time $125.2 million non-cash charge related to a change in Greek tax rates. This compares to $67.9 million or $0.11 per share for the same quarter in 2012.

"During the first quarter Eldorado sold 189,346 ounces of gold at an average gold price of $1,622 per ounce. Our gold mines continue to perform to plan and generate significant cash flows which will be used for the Phase IV expansion of our Kisladag mine and new mine development," said Paul Wright, CEO of Eldorado. "The Company continues to maintain its guidance for 2013, with gold sales of 705,000 to 760,000 ounces, operating cash costs of $515-530 per ounce and all-in cash costs of approximately $950 per ounce. With our strong balance sheet and comparatively low cost gold mining operations Eldorado is well positioned to confront the recent weakness in gold prices."

First Quarter Summary Results and Corporate Developments

• Gold sales of 189,346 ounces at an average gold price of $1,622 per ounce (Q1 2012 sales of 150,661 ounces at an average gold price of $1,707).
  
  
• Gold production of 163,768 ounces at an average cash operating cost of $505 per ounce (Q1 2012 gold production - 155,535 ounces at $452 per ounce).
  
  
• 9% increase in earnings from gold mining operations before taxes over the same quarter in 2012.
  
  
• 36% increase in cash from operating activities before changes in non-cash working capital over the same quarter in 2012.
  
  
• Payment of Cdn$0.07 dividend per share to shareholders of the Company on February 14, 2013.
  
  
• On April 17, 2013, the Council of State ("COS" or "Greek Court"), the Supreme Administrative Court of Greece, upheld the validity of the Environmental Impact Assessment ("EIA") permit for the Hellas Gold projects comprising the "Kassandra Mines" (Stratoni, Olympias & Skouries) in Halkidiki, northern Greece.
  
  

Change in Greek corporate income tax rate 

Effective January 1, 2013 the government of Greece enacted legislation increasing the corporate income tax rate from 20% to 26%. As required by IAS 12, "Income Taxes", when an income tax rate changes, the deferred tax liability must be adjusted to reflect the change in the income tax rate. This non-cash adjustment is required to be charged to deferred income tax expense. The impact on profit for the quarter was $125.2 million, or $0.17 per share.

Greek Court Judgement for Hellas Gold projects

On April 17, 2013 the Greek Court, after thorough deliberation and examination of the contents of the EIA study and the environmental terms of the permit, found that the requirements of the Greek and European Union legislation have been met. The COS determined the alleged grounds of an appeal dated June 6, 2012 challenging the validity of the EIA permit were without merit and this appeal was rejected in its entirety.

Review of Financial Results

The Company reported a loss of $45.4 million (or $0.06 per share) for the quarter compared with profit of $67.9 million (or $0.11 per share) in the first quarter of 2012. Excluding a $125.2 million adjustment related to a change in Greek tax rates the Company reported adjusted profit of $79.8 million compared with $67.9 million for the same quarter in 2012. The difference in adjusted profit year over year was due to higher gross profit from gold mining operations during the quarter as well as $17.8 million in costs related to the acquisition of European Goldfields Limited ("EGU") reported in the first quarter of 2012. Higher sales volumes year over year were partially offset by lower prices and higher unit production costs. Realized gold prices fell 5% year over year. Unit production costs from gold mining operations rose 8% compared with the first quarter of 2012 as our Chinese mines reported unit cost increases related to lower grades and gold production. Depreciation, depletion and amortization expense increased 35% over the first quarter of 2012, mainly as a result of the addition of Efemcukuru depreciation. The Company also reported $10.5 million in interest and financing costs as compared with $0.7 million in the first quarter of 2012, reflecting the cost of servicing the Senior Notes issued in the fourth quarter of 2012. Excluding the $125.2 million adjustment, the effective tax rate was 36% for the quarter as compared with 27% for the first quarter of 2012. The increase in the effective tax rate over the first quarter of 2012 was due to an increase in accrued withholding taxes on dividends paid by our Turkish subsidiary as well as increases in non-deductible expenses in Canada.

Operations Update

Kisladag

Gold production at Kisladag was 7% higher year over year while gold ounces placed on the pad during the year increased 6% over 2012, mainly as a result of higher average treated head grade. Gold ounces sold were higher year over year due to a slightly higher head grade as well as recovery of gold placed on the pad in 2012. Cash operating costs were lower year over year as a result of the higher grade material placed on the pad as well as lower annual average exchange rates for the Turkish lira in comparison with the previous year. Capital expenditures at Kisladag for the quarter included costs on the Phase IV preparation works, capitalised waste stripping and various smaller construction projects.

Efemcukuru

Gold sales from Efemcukuru during the quarter were significantly higher than gold production as a result of the sale of concentrate inventories built up at the Kisladag Treatment Plant during 2012. Mined tonnage was below plan due to issues with paste plant availability and quality. Significant improvements have been undertaken during the quarter resulting in improved results by quarter end. Most of the capital spending during the quarter was related to underground development. 

Tanjianshan

Gold production at Tanjianshan was 9% lower year over year mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Tonnes milled in the quarter were 6% lower than 2012 while average treated head grade was 6% lower than 2012. Circuit recoveries remained relatively constant. Cash operating costs per ounce were 8% higher year over year mainly as a result of lower grade ore and lower ounce production. Most of the capital spending this quarter was on exploration drilling. 

Jinfeng

Gold production at Jinfeng was 38% lower year over year mainly as a result of treating lower grade material from the open pit and stockpiles. A total of 54,126 tonnes of ore was mined from the open pit this quarter (first quarter 2012 - 29,960 tonnes). It is expected that significant ore production will recommence from the pit in the second quarter of 2013 once the waste stripping has uncovered the ore body. A total of 138,989 tonnes of ore were mined from the underground during the quarter (first quarter 2012 - 129,903 tonnes). Cash costs were 29% higher year over year reflecting the impact of the decrease in treated head grade and the slightly lower throughput. Capital expenditures for the quarter included waste stripping, underground development, mining equipment and tailings dam lift construction. 

White Mountain

Gold production at White Mountain during the quarter was slightly lower year over year with higher ore throughput offsetting lower grade. The increase in tonnes was due to an increase in underground mining efficiency as a result of increased mine development. Recovery was on par with the previous reporting period. Cash operating costs per ounce were 17% higher year over year as a result of the higher tonnage and decreased head grade and due to costs related to increased backfill and secondary development rates to sustain higher production tonnage. Capital expenditures for the quarter included capitalized underground development, upgrade of the underground service facility and capitalized exploration costs.

Vila Nova

Iron ore production and sales increased year over year as a result of the impact of new mining equipment purchased late last year on mining productivity. A major incident at the shipping port owned by Anglo Ferrous, a third party, occurred on March 29, 2013 when a large part of the Santana Port on-shore areas and facilities slid into the Amazon River. Part of Vila Nova's ore stockpile, estimated to be 22,000 tonnes of iron ore, was on site and is assumed to be lost. No Unamgen employees were injured. No further iron ore sales are anticipated in the short term and Company personnel are exploring a number of alternatives to continue iron ore sales.

Stratoni

During first quarter, Stratoni mined 54,125 tonnes of run-of-mine ore and produced 12,278 tonnes of lead and zinc concentrate at an average cash cost of $829 per tonne of concentrate sold. During the same period, Stratoni sold 13,968 tonnes of concentrate at an average price of $995 per tonne. Stratoni operating and financial data for 2012 shown in the table above reflect operations subsequent to February 24, 2012, the date of the EGU acquisition.

Olympias

During the first quarter, Olympias treated 89,112 tonnes of tailings and produced 4,827 payable gold ounces. Commissioning of the plant continued during the quarter with commercial production expected to begin by the end of the second quarter. Capital spending during the quarter totalled $13.5 million, mainly on underground rehabilitation and main decline development.

Development Project Update

Kisladag Phase IV Expansion

Route selection for the 154 kV transmission line was completed and design information provided to the energy provider for construction of the line. Delivery of full power to the site and completion of the main transformer station is scheduled for late 2014.

Procurement of long lead equipment remains on schedule. Delivery of the ancillary mobile equipment fleet began in late 2012. The first shovel and haul truck arrived on site for assembly subsequent to this quarter end. Deliveries of the remaining equipment including haul trucks and loaders remain on schedule.

Earth moving activity on site was completed in the permitted areas during the quarter. Basic engineering work is ongoing to optimize site layout and facilities designs.

Efemcukuru Expansion

Development work at Efemcukuru during the quarter focused on designs for increasing the capacity in the backfill system and the tailings filtration circuit. Work is ongoing. 

Perama Hill

Development work at Perama Hill was limited during the quarter while the Company awaited approval of the EIA. Engineering designs to support the Urban Planning application were completed and progress was made on completing the design information required for the construction permit, both of which are required in the next permitting steps leading to construction.

Olympias

Underground mining and refurbishment continued during the quarter with crews advancing the main Stratoni decline, a water diversion tunnel as well as a secondary access tunnel. New mining equipment was purchased during the quarter and will be delivered during the second quarter of 2013 to increase the mine development rate. Other work underground included installation of backfill piping in the ventilation raise in preparation to fill old mining voids with cemented coarse tails. The backfill plant is being fabricated by a supplier in Thessaloniki. Final site design was completed during the quarter. Civil works began in the second half of April 2013. The tailings retreatment plant continued testing and commissioning during the quarter, with design modifications developed to improve plant throughput.

Skouries

Detailed engineering for Skouries plant buildings and ancillary facilities is approximately 56% complete. Surveying of the open pit and tailings dump areas began in the first quarter 2013 and will be ongoing through midyear. Construction of the underground portal progressed during the quarter with the decline scheduled to begin in the second quarter 2013. Work continued on upgrading site roads and ongoing clearing in approved areas.

The Skouries project suffered an arson attack on February 17th. Project offices and site facilities lost during the attack were replaced during the quarter and activity has returned to normal. The cost of the loss is estimated at approximately $1.0 million with a two week disruption. 

Certej

Field activity at Certej during the first quarter was restricted due to winter weather conditions. Construction of the access road to the site is expected to resume in the second quarter 2013, along with work on the waterline and pump station.

Eastern Dragon

No construction work took place at Eastern Dragon during the first quarter due to the winter season and permitting delays.

Tocantinzinho

Optimization of the feasibility study was a primary focus during the first quarter. To date the focus has been on investigating details compiled in the capital cost estimate to improve the level of accuracy. Areas having the greatest proportional impact or having higher levels of certainties are being addressed first. A third party review was completed to look at simplifying layouts and structures as well as optimizing the mine infrastructure. Discussions with mining contractors and equipment vendor representatives have been initiated looking for potential capital cost savings.

Exploration Update

In the first quarter approximately 25,000 meters were drilled on the Company's exploration programs in Greece, Romania, Turkey and China. The 2013 drilling programs at most exploration sites have not commenced due to weather and scheduling constraints.

Turkey

Drilling commenced at Efemcukuru late in the quarter, focusing on the central portion of the Kokarpinar vein. Five holes were completed, with most reporting thick quartz - rhodonite - sulfide vein intervals; assay results are pending.

No drilling was completed on Turkey reconnaissance projects during the quarter. Fieldwork commenced at the Ardala/Salinbas project in mid-March, with geological mapping and drillcore relogging directed towards refining drill targets for a program scheduled to start in the second quarter. Fieldwork at the Mayislar project in north-western Turkey began in March, including soil sampling, ground magnetic surveying and siting of possible drillholes.

Greece

At Perama Hill, drilling was completed during the quarter on infill, sterilization and geotechnical drilling programs. 

Drilling in the Chalkidiki district was limited to completion of the final two confirmation drillholes at Skouries. Other exploration activities focused on drillcore logging and geological interpretation of the Piavitsa deposit area and on the Olympias deposit drillcore relogging program. A detailed mapping program at Piavitsa was initiated in mid-March.

China

At Jinfeng, 3,500 meters of exploration drilling were completed during the quarter, all from underground stations. Most drilling tested extensions or infill areas of the F2, F3 and F7 mineralized zones. Several drillholes that targeted the F2-F3 intersection area encountered a zone of mineralization not predicted by the current geological model, including an intercept of 12.0 meters at 9.07 grams per tonne Au (HDDU-200) and 9.0 meters at 10.5 grams per tonne Au (HDDU-0204). No drilling was completed on the regional exploration programs during the quarter.

At White Mountain mine, an exploration drift designed to provide drillsite access for the Deep North Zone is progressing as planned. Resource definition drilling of the North Zone from the exploration drift commenced late in the quarter. No fieldwork was completed on the regional exploration licenses due to snow cover. 

At Tanjianshan, drilling was completed during the quarter in the Jinlonggou mine area, testing targets in the south pit wall and M7-main pit bridge areas. Pyritic zones were intersected in both areas, suggesting that the mineralized zones identified in the pit walls have lateral continuity. Interpretation and geological modeling of both the Qinlongtan North project area and the Jinlonggou area are being completed.

Romania

At the Certej project, over 15,000 meters of drilling were completed during the quarter, consisting of infill drilling of a number of target areas in the main deposit and definition of the lateral limits of mineralized system. Positive assay results were received during the month from numerous drillholes, including several on the north and south margins of the deposit that will likely expand the zone of economic mineralization. New assay results include notable intercepts of 24.0 meters at 4.73 grams per tonne Au (CJSD-455); 66.0 meters at 1.34 grams per tonne Au (also CJSD-455); and 53.0 meters at 1.53 grams per tonne Au (CJSD-457). Also of note were narrow veins containing visible gold, intersected in drillhole CJSD-473 on the northern margin of the deposit ("Baiaga Nose" target area). 

Brazil

At Tocantinzinho, exploration activities were on hold during the quarter on the three main licenses pending granting of the Project Exploitation License. Soil sampling was completed on one license that is not included in the exploitation application, with a total of 64 lines sampled.

Follow-up infill soil sampling began in February at the Rubens Zilio project, with the two major areas of soil anomalies being further evaluated along 100 meter spaced soil lines. 

Sampling programs were completed at the Chapadinha project, with numerous moderate to high grade chip and channel samples reported from areas surrounding artisanal workings. A 2,000 meter drilling program commenced late in the quarter to test several targets. Mineralization consisting of Qtz-Py-Asp veins, veinlets and disseminated Py-Asp has been intercepted in both the quartzite and footwall phyllite units.

At the Anicuns project, a significant gold-in-stream sediment anomaly was outlined from a grass-roots prospecting program in late 2012. The Company submitted 35 new applications for exploration licenses to secure land surrounding the anomaly, and a follow-up program of soil sampling, termite mound sampling, and additional stream sediment sampling began late in the quarter.

Corporate Appointments

Rick Thomas was appointed Vice President, Capital Projects on March 18, 2013. Rick is responsible for providing strategic oversight and guidance in the execution of all major capital projects for the Company. 

Jason Cho was appointed Manager Business Development on March 25, 2013. Jason is responsible for leading the Company's business development activities including managing existing joint venture partnerships and searching for value-enhancing opportunities.

About Eldorado

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil, and Romania. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

Paul N. Wright, Chief Executive Officer

Eldorado will host a conference call on Friday, May 3, 2013 to discuss the 2013 First Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-9432 in Toronto or 1-888-340-9642 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, 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 May 10, 2013 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 1059970.

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 applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company's Q1, 2013 Financial and Operating Results.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 28,2013. 

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information 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 New York Stock Exchange (NYSE: EGO).

Request for information packages:laurelw@eldoradogold.com.

Click here for the Consolidated Financial Statements for the quarter ended March 31, 2013 in PDF: http://media3.marketwire.com/docs/ELD-FS-MDA-Q1-2013.pdf.