Eldorado Gold Reports 2020 Year-End and Fourth Quarter Financial and Operational Results
NEWS RELEASE
TSX: ELD NYSE: EGO February 25, 2021
Eldorado Gold Reports 2020 Year-End and Fourth Quarter
Financial and Operational Results
VANCOUVER, BC - Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reports the Company’s
financial and operational results for the fourth quarter and year ended December 31, 2020. For further information
please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on
SEDAR at www.sedar.com under the Company’s profile.
Year-End Financial and Operating Results Overview and Subsequent Period Highlights
• 2020 annual production guidance achieved: Gold production totalled 528,874 ounces in 2020, an
increase of 34% from production of 395,331 ounces in 2019. Despite impacts related to COVID-19, annual
guidance was maintained and met for the 2020 calendar year.
• Strong production drives increased cash from operations and free cash flow: Net cash from operating
activities of $425.6 million in 2020 (2019: $165.8 million) contributed to free cash flow of $236.2 million in
2020 (2019: negative $37.1 million ) primarily as a result of higher sales volumes and a higher average
realized gold price.
• Lower all-in sustaining costs: 2020 all-in sustaining costs of $921 per ounce of gold sold were lower than
in 2019 ($1,034 per ounce sold) as a result of increased production and weakening of the Turkish Lira.
• Amended Investment Agreement signed: In February 2021, Eldorado entered into an Amended
Investment Agreement ("Agreement") with the Hellenic Republic, providing a mutually beneficial and
modernized legal and financial framework to allow for investment in the Skouries project and the Olympias
and Stratoni mines. The Agreement has been formally submitted to the Greek Parliament for ratification,
with a vote expected to take place in an upcoming parliamentary session.
• Arrangement agreement to acquire QMX Gold Corporation: In January 2021, the Company entered into
a definitive arrangement agreement with QMX Gold Corporation ("QMX") to acquire the remaining
outstanding shares of QMX for total consideration of approximately CDN $132 million ($104 million) , of
which approximately CDN $29.8 million ($23.4 million) will be paid in cash. The acquisition remains subject
to QMX shareholder and court approvals, and if completed, will significantly increase Eldorado's
landholdings and exploration footprint in Québec and adjacent to the Lamaque operations.
• Maiden resource at Ormaque deposit highlights exploration success and future growth potential at
Lamaque: In February 2021, we announced maiden Inferred Mineral Resources for the Ormaque deposit
totalling 2.6 million tonnes at a grade of 9.5 grams per tonne, for 803,000 ounces of contained gold.
• Continued strong financial liquidity: The Company currently has $511.0 million of cash, cash equivalents
and term deposits and approximately $29.2 million available under its revolving credit facility. Redemptions
totalling $66.1 million of principal of the senior secured notes were completed during the year, including
$7.5 million in December 2020. In February 2021 the senior secured credit facility was amended such that
approximately $70.8 million of non-financial letters of credit no longer reduce credit availability under the
revolving credit facility. Following the amendment, credit availability under the facility is currently $100
1
million. A repayment of $11.1 million on the non-revolving term loan was made in conjunction with this
amendment.
• Net earnings and adjusted net earnings attributable to shareholders: Net earnings attributable to
shareholders of the Company in 2020 were $104.5 million or $0.61 per share (2019: $80.6 million, or $0.51
per share), including a $40.0 million non-cash write-down of capital works in progress that will no longer be
completed as a result of the Agreement. Adjusted net earnings attributable to shareholders of the Company
in 2020 were $170.9 million, or $1.00 per share (2019: $2.4 million, or $0.02 per share).
• Increased EBITDA: The Company reported EBITDA in 2020 of $474.2 million (2019: $311.3 million ) and
adjusted EBITDA of $534.0 million (2019: $235.6 million) after adjusting for, among other things, the non-
cash write-down of $40.0 million of capital works in progress.
• Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic:
The Company's mines remain operational and isolated cases of COVID-19 have been successfully
managed. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's
global sites, and preparedness should an outbreak occur, remain priorities.
Fourth Quarter 2020 Highlights
• Highest quarterly gold production in nearly five years: Eldorado produced 138,220 ounces of gold in
Q4 2020 (Q4 2019: 118,955 ounces).
• Continued cash from operations and free cash flow : Net cash from operating activities of $107.3 million
in Q4 2020 (Q4 2019: $64.2 million) contributed to free cash flow of $48.4 million in Q4 2020 (Q4 2019:
$5.5 million) primarily as a result of higher sales volumes and a higher average realized gold price.
• Operating costs decreasing: Q4 2020 cash operating costs of $536 per ounce sold and all-in sustaining
costs of $959 per ounce sold were lower than Q4 2019 ($621 per ounce sold and $1,110 per ounce sold,
respectively).
• Net earnings attributable to shareholders: Q4 2020 net earnings attributable to shareholders of the
Company were $22.8 million or $0.13 per share, and included a $40.0 million non-cash write-down of
capital works in progress that will no longer be completed as a result of the Agreement . Net earnings
attributable to shareholders of the Company in Q4 2019 were $91.2 million or $0.57 per share, mainly
attributable to a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for
Kisladag. Adjusted net earnings attributable to shareholders of the Company in Q4 2020 were $58.0 million,
or $0.33 per share (Q4 2019: adjusted net earnings attributable to shareholders of the Company of $19.3
million, or $0.12 per share).
• Increased EBITDA: Q4 2020 EBITDA was $95.1 million ($158.7 million in Q4 2019) and Q4 2020 adjusted
EBITDA was $144.2 million ($80.3 million in Q4 2019) after adjusting for, among other things, the non-cash
write-down of $40.0 million of capital works in progress.
“Eldorado’s strong fourth-quarter finish to 2020 caps a year in which we delivered on our original guidance,
generated strong free cash flow and continued to strengthen our overall capital position,” said George Burns,
Eldorado's President and Chief Executive Officer. “That this was accomplished during an historically challenging
global operating environment is a tribute to the dedication of our people.
“We enter 2021 positioned once again to deliver, both operationally and at our most important growth projects.
Consistent with Eldorado’s disciplined approach to capital allocation, we will continue to strengthen our balance
sheet while reinvesting in mine and project development programs that prioritize profitability and strong returns.
Chief among these is the advancement of the world-class Skouries project in Greece. Our recently signed amended
investment agreement with the Greek government sets the stage for a productive and mutually beneficial
relationship with the Hellenic Republic. Our focus in 2021 is on unlocking the compelling value at Skouries and
throughout our portfolio.”
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The Company also announced this week maiden Inferred Mineral Resources of 2.6 million tonnes at a grade of 9.5
grams per tonne for 803,000 ounces of gold at the recently-discovered Ormaque deposit near the Lamaque
operations in Québec. Over 60% of the resource is in the upper part of the deposit within 400 metres of surface.
Exploration in 2021 is focused on in-fill and expansion drilling, as the deposit remains open in multiple directions.
“Exploration success at Ormaque is an important milestone that could lead to a second underground mine to feed
the Sigma mill. The growing exploration footprint and targets at Lamaque coupled with low cost expandability of the
Sigma plant offer a compelling opportunity to create additional value at Lamaque,” added Burns.
Consolidated Financial and Operational Highlights
Summarized Annual Financial Results
2020 2019 2018
Revenue (1) $1,026.7 $617.8 $459.0
Gold revenue (1) $938.3 $530.9 $386.0
Gold produced (oz) (2) 528,874 395,331 349,147
Gold sold (oz) (1) 526,406 374,902 304,256
Average realized gold price ($/oz sold) (6) $1,783 $1,416 $1,269
Cash operating costs ($/oz sold) (3,6) 560 608 625
Total cash costs ($/oz sold) (3,6) 649 645 650
All-in sustaining costs ($/oz sold) (3,6) 921 1,034 994
Net earnings (loss) for the period (4) 104.5 80.6 (361.9)
Net earnings (loss) per share – basic ($/share) (4) 0.61 0.51 (2.28)
Adjusted net earnings (loss) (4,5,6,7) 170.9 2.4 (30.1)
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) 1.00 0.02 (0.19)
Cash flow from operating activities before changes in working capital (6,8) 390.8 149.9 61.1
Free cash flow (6) 236.2 (37.1) (187.8)
Cash, cash equivalents and term deposits 511.0 181.0 293.0
(1) Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.
(2) Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018).
(3) By-product revenues are off-set against cash operating costs.
(4) Attributable to shareholders of the Company.
(5) See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(6) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
(7) 2019 and 2018 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of
assets (2019: $7.4 million, 2018: nil) and inventory write-downs (2019: $2.5 million, 2018: $1.5 million). Adjusted net earnings as originally presented in
2019 were $5.6 million ($0.04 per share) and Adjusted net loss as originally presented for 2018 was $28.6 million ($0.17 loss per share).
(8) 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period. 2018 adjustment
was negligible.
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Summarized Quarterly Financial Results
2020 Q1 Q2 Q3 Q4 2020
Revenue $204.7 $255.9 $287.6 $278.5 $1,026.7
Gold revenue $185.4 $235.0 $264.3 $253.7 $938.3
Gold produced (oz) 115,950 137,782 136,922 138,220 528,874
Gold sold (oz) 116,219 134,960 137,704 137,523 526,406
Average realized gold price ($/oz sold) (6) $1,580 $1,726 $1,919 $1,845 $1,783
Cash operating cost ($/oz sold) (3,6) 627 550 537 536 560
Total cash cost ($/oz sold) (3,6) 678 616 664 640 649
All-in sustaining cost ($/oz sold) (3,6) 952 859 918 959 921
Net earnings (loss) (4) (4.9) 45.6 41.0 22.8 104.5
Net earnings (loss) per share – basic ($/share) (4) (0.03) 0.27 0.24 0.13 0.61
Adjusted net earnings (loss) (4,5,6) 12.5 43.8 56.7 58.0 170.9
Adjusted net earnings (loss) per share ($/share) (4,5,6) 0.08 0.26 0.33 0.33 1.00
Cash flow from operating activities before changes in working capital (6) 69.4 99.0 125.1 97.2 390.8
Free cash flow (6) $7.2 $63.4 $117.2 $48.4 $236.2
Cash, cash equivalents and term deposits $363.6 $440.3 $504.4 $511.0 $511.0
2019 Q1 Q2 Q3 Q4 2019
Revenue (1) $80.0 $173.7 $172.3 $191.9 $617.8
Gold revenue (1) $54.5 $150.1 $150.2 $176.1 $530.9
Gold produced (oz) (2) 82,977 91,803 101,596 118,955 395,331
Gold sold (oz) (1) 43,074 113,685 99,241 118,902 374,902
Average realized gold price ($/oz sold) (6) $1,265 $1,321 $1,513 $1,475 $1,416
Cash operating cost ($/oz sold) (3,6) 625 631 560 621 608
Total cash cost ($/oz sold) (3,6) 652 670 603 652 645
All-in sustaining cost ($/oz sold) (3,6) 1,132 917 1,031 1,110 1,034
Net earnings (loss) (4) (27.0) 12.2 4.2 91.2 80.6
Net earnings (loss) per share – basic ($/share) (4) (0.17) 0.08 0.03 0.57 0.51
Adjusted net earnings (loss) (4,5,6,7) (21.1) (3.5) 7.6 19.3 2.4
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) (0.13) (0.02) 0.05 0.12 0.02
Cash flow from operating activities before changes in working capital (6,8) 8.1 38.5 63.0 40.4 149.9
Free cash flow (6) ($64.0) $4.8 $16.7 $5.5 ($37.1)
Cash, cash equivalents and term deposits $227.5 $119.9 $134.9 $181.0 $181.0
(1) Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.
(2) Includes pre-commercial production at Lamaque (Q1 2019).
(3) By-product revenues are off-set against cash operating costs.
(4) Attributable to shareholders of the Company.
(5) See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(6) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
(7) 2019 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of assets
($7.4 million) and inventory write-downs ($2.5 million). Adjusted net earnings as originally presented in 2019 were $5.6 million ($0.04 per share).
(8) 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period.
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Gold sales of 526,406 ounces in 2020 increased from 374,902 ounces in 2019. The 40% increase was primarily due
to an increase of 88,158 ounces sold from Kisladag as a result of an increase in tonnes of ore stacked and placed
under leach following the restart of full operations in 2019 and an increase of 55,524 ounces sold from Lamaque
enabled by receipt of authorization in March 2020 to increase mine production.
Total revenues increased to $1,026.7 million in 2020 from $617.8 million in 2019 as a result of higher sales volumes
and a higher average realized gold price of $1,783 per ounce compared to $1,416 per ounce in 2019.
Cash operating costs per ounce sold decreased to $560 in 2020 from $608 in 2019, primarily due to increased
mining rates at Lamaque following the receipt of authorization in March 2020 to increase mine production, higher
production at Olympias and reduced costs at Efemcukuru due to the weakening of the Turkish Lira during the year.
These decreases were partly offset by an increase of cash operating costs per ounce sold at Kisladag resulting from
decreases in the average grade of ore placed on the heap leach pad.
Net earnings attributable to shareholders of $104.5 million ($0.61 per share) in 2020 improved from $80.6 million
($0.51 per share) in 2019. The improvement was primarily a result of higher production and sales volumes
combined with a higher average realized gold price. Net earnings attributable to shareholders of $22.8 million ($0.13
per share) in Q4 2020 decreased from $91.2 million ($0.57 per share) in Q4 2019 primarily due to the $40.0 million
write-down of capital works in progress ( $43.4 million combined with a net impairment reversal of $85.2 million
($68.2 million net of deferred income tax) for Kisladag in Q4 2019.
Adjusted net earnings were $170.9 million ($1.00 per share) in 2020, compared to $2.4 million ($0.02 per share) in
2019. Adjusted net earnings in 2020 removes, among other things, the $40.0 million non-cash write-down of capital
works in progress, a $3.4 million VAT provision associated with the write-down, a $16.3 million net loss on foreign
exchange due to translation of deferred tax balances, $8.6 million of finance costs related to the $66.1 million
redemption of the senior secured notes during the year and the $2.5 million gain on disposal of the Vila Nova mine
in Q3 2020. Adjusted net earnings were $58.0 million ( $0.33 per share) in Q4 2020 , compared to $19.3 million
($0.12 per share) in Q4 2019.
Higher sales volumes in 2020, combined with a higher gold price, resulted in EBITDA of $474.2 million, including
$95.1 million in Q4 2020. Adjusted EBITDA of $534.0 million in 2020 and $144.2 million in Q4 2020 exclude, among
other things, the $40.0 million write-down of capital works in progress.
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Operations Update and Outlook
Gold Operations
3 months ended December 31, 12 months ended December 31,
2020 2019 2020 2019 2021 Outlook
Total
Ounces produced (1) 138,220 118,955 528,874 395,331 430,000 – 460,000
Ounces sold (2) 137,523 118,902 526,406 374,902 n/a
Cash operating costs ($/oz sold) (4) $536 $621 $560 $608 $590 – 640
All-in sustaining costs ($/oz sold) (4) $959 $1,110 $921 $1,034 $920 – 1,150
Sustaining capex (4) $29.1 $41.1 $92.5 $97.4 $122 – 142
Kisladag
Ounces produced (3) 56,816 51,010 226,475 140,214 140,000 – 150,000
Ounces sold 55,807 49,529 226,895 138,737 n/a
Cash operating costs ($/oz sold) (4) $447 $421 $451 $435 $590 – 640
All-in sustaining costs ($/oz sold) (4) $732 $616 $664 $593 n/a
Sustaining capex (4) $6.5 $6.7 $20.1 $14.7 $18 – 23
Lamaque
Ounces produced (1) 44,168 29,085 144,141 113,940 140,000 – 150,000
Ounces sold (2) 44,990 31,293 142,269 86,745 n/a
Cash operating costs ($/oz sold) (4) $503 $663 $522 $556 $560 – 610
All-in sustaining costs ($/oz sold) (4) $789 $1,273 $827 $1,078 n/a
Sustaining capex (4) $9.8 $17.0 $32.9 $38.2 $48 – 53
Efemcukuru
Ounces produced 25,828 26,243 99,835 103,767 90,000 – 95,000
Ounces sold 24,956 25,530 98,340 105,752 n/a
Cash operating costs ($/oz sold) (4) $493 $608 $556 $599 $550 – 600
All-in sustaining costs ($/oz sold) (4) $989 $1,122 $918 $923 n/a
Sustaining capex (4) $7.3 $10.2 $19.1 $24.5 $18 – 23
Olympias
Ounces produced 11,408 12,617 58,423 37,410 55,000 – 65,000
Ounces sold 11,770 12,550 58,902 43,668 n/a
Cash operating costs ($/oz sold) (4) $1,166 $1,331 $1,078 $1,286 $775 – 825
All-in sustaining costs ($/oz sold) (4) $1,768 $1,986 $1,541 $1,837 n/a
Sustaining capex (4) $5.5 $7.2 $20.2 $20.1 $38 – 43
(1) Includes pre-commercial production at Lamaque (Q1 2019).
(2) Excludes sales of inventory produced at Lamaque during the pre-commercial production period (Q1 2019). During the year ended December 31, 2019,
27,627 ounces were sold from inventory produced during the pre-commercial production period at Lamaque.
(3) Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.
(4) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
Gold production of 528,874 ounces in 2020 increased 34% from 395,331 ounces in 2019 primarily due to an
increase in tonnes of ore stacked and placed under leach at Kisladag following the restart of full operations in 2019
and an increase at Lamaque enabled by receipt of authorization in March 2020 to increase mine production.
For further information on the Company’s operating results for the year-end and fourth quarter of 2020, please see
the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s
profile.
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Conference Call
A conference call to discuss the details of the Company’s Fourth Quarter and Year-End 2020 Results will be held by
senior management on Friday, February 26, 2021 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can
be accessed at Eldorado Gold’s website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/
eldoradogold20210226.html
Conference Call Details Replay (available until April 2, 2021)
Date: February 26, 2021 Toronto: +1 604.638.9010
Time: 8:30 am PT (11:30 am ET) Toll Free: +1 800.319.6413
Dial in: +1 604.638.5340 Access code: 5918
Toll free: +1 800.319.4610
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey,
Canada, Greece, Romania and Brazil. The Company has a highly skilled and dedicated workforce, safe and
responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities.
Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange
(NYSE: EGO).
Contacts
Investor Relations
Jeff Wilhoit, Interim Director, Investor Relations
604.687.4018 or 1.888.353.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations
604.687.4018 or 1.888.353.8166 [email protected]
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Non-IFRS Measures
Certain non-IFRS measures are included in this press release, including average realized gold price per ounce sold, cash operating costs and
cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce
sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, working
capital, cash flow from operations before changes in non-cash working capital, earnings before interest, taxes and depreciation and amortization
("EBITDA") and adjusted earnings before interest, taxes and depreciation and amortization ("Adjusted EBITDA"), free cash flow and sustaining
and growth capital. Please see the December 31, 2020 MD&A for explanations and discussion of these non-IFRS measures. The Company
believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards
(“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to
provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other
issuers.
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. Often, 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 duration, extent and other implications of
the coronavirus (COVID 19) and any restrictions and suspensions with respect to the Company’s operations; Eldorado Gold’s capital resources
and business objectives; ratification of the Agreement by the Greek Parliament; Eldorado Gold’s guidance and outlook, including expected
production, cost guidance and recoveries of gold, including: increased heap leach recoveries through increased leach time in conjunction with a
high-pressure grinding roll at Kisladag, increasing the throughput at the Sigma mill;timing and cost of the construction of an underground decline
at the Triangle mine and the associated benefits; expansion at Lamaque; and the success of a column flotation system in improving concentrate
grade and quality and lowering transportation and concentrate treatment charges at Efemçukuru; expected sales and revenue recognition of
delayed Efemçukuru concentrate; completion of the acquisition of QMX; favourable economics for the Company’s heap leaching plan and the
ability to extend mine life at Eldorado’s projects; completion of construction at Skouries; the potential sale of any of our non-core assets; planned
capital and exploration expenditures; conversion of mineral resources to mineral reserves; Eldorado Gold’s expectation as to its future financial
and operating performance, including expectations around generating free cash flow; expected metallurgical recoveries and improved
concentrate grade and quality; gold price outlook and the global concentrate market; redemption of senior secured notes; Eldorado’s strategy,
plans and goals, including its proposed exploration, development, construction, permitting and operating plans and priorities and related timelines
and schedules; and results of litigation and arbitration proceedings.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks,
market 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: ratification and
effectiveness of the Agreement, and the benefits thereof, the ability to achieve the expected benefits of the Agreement, the completion of
advancement of technical work and construction at Skouries, including securing financing, production and cost guidance, and ability to move into
production, and the timing thereof, how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the
COVID-19 pandemic; timing and cost of construction and exploration; the geopolitical, economic, permitting and legal climate that we operate in;
the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs, expenses and working capital
requirements; 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 where 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 such 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.
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: the ratification of the Agreement, including the timing thereof, the ability to achieve the expected benefits of
the Agreement, the ability to complete advancement of technical work and construction at Skouries, including securing financing, and meeting
production and cost guidance, and ability to move into production, and the timing thereof, ability to meet production and cost guidance, global
outbreaks of infectious diseases, including COVID-19; timing and cost of construction, and the associated benefits; recoveries of gold and other
metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility;
information technology systems risks; continued softening of the global concentrate market; risks regarding potential and pending litigation and
arbitration proceedings relating to our business, properties and operations; expected impact on reserves and the carrying value; the updating of
the reserve and resource models and life of mine plans; mining operational and development risk; financing risks; foreign country operational
risks; risks of sovereign investment; regulatory risks and liabilities including environmental regulatory restrictions and liability; discrepancies
between actual and estimated production; mineral reserves and resources and metallurgical testing and recoveries; additional funding
requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution;
share price volatility and the price of our common shares; competition; loss of key employees; and defective title to mineral claims or properties,
as well as those risk factors discussed in the sections titled “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 and other regulatory filings filed on SEDAR and EDGAR 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.
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