Eldorado Gold Announces Amended Investment Plans in Greece
NEWS RELEASE
TSX: ELD NYSE: EGO September 11, 2017
Eldorado Gold Announces Amended Investment Plans in Greece
(all amounts in US dollars)
Vancouver, BC - Eldorado Gold Corporation ("Eldorado" or the "Company") today announces plans to
suspend investment at its operating mines, development projects and exploration assets in Greece.
Despite repeated attempts by Eldorado and its Greek subsidiary, Hellas Gold, to engage constructively with
the Greek government, the Ministry of Energy and Environment (the “Ministry”) and other government
agencies, delays continue in issuing routine permits and licences for the construction and development of
the Skouries and Olympias projects in Halkidiki, northern Greece. These permitting delays have negatively
impacted Eldorado’s project schedules and costs, ultimately hindering the Company’s ability to effectively
advance development and operation of these assets.
With the exception of a care and maintenance program and necessary environmental safeguarding costs,
Eldorado and its Board of Directors have decided that under present conditions no additional investment
will be made into the Kassandra Mines (Olympias, Skouries, Stratoni) in Halkidiki, the Perama Hill and Sapes
projects in Thrace, and any exploration activity in the country. Funds that were budgeted to be invested
into community spending and infrastructure development will be phased out. Similarly, tax revenues at
the municipal, regional and national levels will also be affected.
Actions will be taken to place the Skouries and Olympias projects and the Stratoni mine on care and
maintenance starting on September 22, 2017. Suspension and termination of contractors and employees
will be done in accordance with applicable labour regulations in Greece. Environmental protection works
and care and maintenance activities will continue in order to safeguard the environment and t he assets.
The Company estimates that a total of $30 million will be spent to prepare for care and maintenance
activities, with sustaining maintenance costs of approximately $25 million annually.
The Company is also awaiting additional detail from the Greek g overnment regarding the pending
arbitration process. Eldorado has not yet received formal notification of arbitration but is confident that
any potential arbitration will again demonstrate the Company’s adherence to all applicable laws and
regulations. The Council of State (Greece’s highest court on environmental and administrative matters)
has repeatedly confirmed the legitimacy of our permits and actions with 18 decisions in the Company’s
favour.
The Company would re-assess its investment options in Greece upon approval and receipt of the required
permits, coupled with a supportive government open to discussions surrounding the use and
implementation of best available technologies.
1
George Burns, President and Chief Executive Officer of Eldorado Gold, commented:
“It is extremely unfortunate to find ourselves at this impasse when we should be advancing an important
commercial project in partnership with Greece and adding another 1,200 jobs to our current workforce of
approximately 2,400 people in Greece. Eldorado’s investment in Greece is about building a world -class
operation that can exist as a long -term partner to Greece and has the ability to promote advanced skills
and training for its people and deliver well- paying jobs to sustain families and local businesses. Of equal
importance, as a commercial partner, this business can provide much-needed tax and export revenue for
generations.”
“Eldorado has been a committed, responsible and patient partner to the Greek government and the people
of Greece. Since acquiring the Kassandra Mines for nearly $2 billion in 2012, Eldorado has invested an
additional $1 billion in the country. That figure would double if Eldorado were able to fully develop its
Olympias, Skouries and Perama Hill ass ets. However, as a result of the delay i n issuing permits by the
Greek government, Eldorado is unable to continue investing in the c ountry. We have a responsibility to
our shareholders to allocate capital to projects not only with the best rates of return, but also in locations
where host governments are supportive of our investment and work with us to grow a sustainable future.
As such, Eldorado cannot continue to put capital at risk without these permits and will pursue all avenues
to advance its investment and contractual rights.”
“Should the Greek government wish to work within the framework of its contractual obligations with
Hellas Gold, issue permits in a timely manner and support the investment, Eldorado will then be in a
position to re-evaluate its investment plans in the country.”
Skouries Project (Halkidiki)
Construction and development activities at the Skouries project, with over $350 million invested to-date
and a current workforce of 530 people including contractors, will be suspended effective September 22,
2017.
Olympias Project (Halkidiki)
The refurbished Olympias processing plant is close to completing the commissioning phase and
commercial production from Phase 2 was planned during the fourth quarter 2017. Current headcount at
Olympias is approximately 950 people including contractors . Commissioning work and further
development activity will be suspended effective September 22, 2017. To date, Eldorado has invested
over $400 million at Olympias.
Stratoni Mine (Halkidiki)
The Stratoni Mine currently employs approximately 830 people including contractors and had a life of mine
of approximately one year based on known proven and probable reserves at the beginning of 2017 .
Geological potential exists to expand resources and extend mine life and Eldorado is currently undertaking
a drilling campaign to test the lower portion of the Mavres Petres orebody. Additional investment would
be required over the next two years to fu rther delineate additional resources. All mining operations and
exploration activities will be suspended effective September 22, 2017.
2
Perama Hill and Sapes Projects (Thrace)
Perama Hill and Sapes are currently on care and maintenance pending approvals by the Ministry of
Energy and the Environment for Perama Hill’s Environmental Impact Study and for Sapes’s drilling
permit, both of which have been pending for over three years.
Press Conference
George Burns, President & CEO of Eldorado Gold will host a press conference at the Athens Hilton Hotel
today, September 11, 2017 at 11:00 AM local time (GMT+2) to discuss Eldorado’s amended investment
plans in Greece. His speech will be available shortly after the press conference at www.eldoradogold.com.
Conference Call
George Burns will host a conference call today, September 11, 2017 at 8:00 AM ET (5:00 AM PT) to discuss
Eldorado’s amended investment plans in Greece. The call will be webcast and can be accessed
at www.eldoradogold.com.
Conference Call Details Replay (available until September 25, 2017)
Date: Monday, September 11, 2017 Toronto: 416 849 0833
Time: 8:00 am ET (5:00 am PT) Toll Free: 855 859 2056
Dial in: 647 427 7450 Pass code: 828 838 97
Toll free: 888 231 8191
About Eldorado Gold
Eldorado is a leading intermediate gold producer with mining, development and exploration operations in
Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company’s success to date is based on a highly
skilled and dedicated workforce, safe and responsible operations, a portfolio of high -quality assets, and
long-term partnerships with the communities where it operates. Eldorado’s common shares trade on the
Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Of ten, these forward- looking
statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "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 contained in this release include, but are not limited to the Company’s Amended Investment Plans in
Greece, including statements or information with respect to: our guidance and outlook, including expected production, projected cash cost, planned
capital and exploration expenditures for 2017; our expectation as to our future financial and operating performance, including future cash flow ,
estimated cash costs, expected metallurgical recoveries, gold price outlook; and our strategy, plans and goals, including our proposed exploration,
development, construction, permitting and operating plans and priorities, and related timelines.
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, including assumptions about the geopolitical,
economic, permitting and legal climate that we operate in; the future price of gold and other commodities; exchange rates; anticipated costs and
expenses; production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspensions or delays
on our business and the ability to achieve our goals. In particular, except wher e otherwise stated, we have assumed a continuation of existing
business operations on substantially the same basis as exists at the time of this release.
Even though our management believes that the assumptions made and the expectations represented by suc h statements or information are
reasonable, there can be no assurance that the forward- looking statement or information will prove to be accurate. Many assumptions may be
difficult to predict and are beyond our control.
3
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: geopolitical and economic climate (global and local), risks related to mineral tenure and permi ts; gold and other
metal price volatility; mining operational and development risk; foreign country operational risks; risks of sovereign investment; regulatory
environment and restrictions, including environmental regulatory restrictions and liability; discrepancies between actual and estimated production,
mineral reserves and resources and metallurgical recoveries; risks related to impact of the sale of our Chinese assets and the acquisition of Integra
on the Company’s operations; risks related to impact of the integration of Integra; additional funding requirements; currency fluctuations; litigation
risks; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility; competition;
loss of key employees; 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 our business" in the Company's most recent Annual Information Form & Form 40 -F. The reader is directed to
carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR under our Company name, which discussion
is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and
operations.
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term
prospects, and it may not be appropriate for other purposes.
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.
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the
Company and is not a substitute for reading the full annual financial statements and related MD&A available on our website and on SEDAR under
our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized
herein.
Contacts
Investor Relations
Krista Muhr, Vice President Investor Relations & Corporate Communications
604.607.6701 or 1.888.363.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations
604.616.2296 [email protected]
4