Eldorado Gold Signs Mandate Letter for Skouries Project Finance Facility
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NEWS RELEASE
TSX: ELD NYSE: EGO September 7, 2022
Eldorado Gold Signs Mandate Letter for Skouries Project Finance Facility
VANCOUVER, BC - Eldorado Gold Corporation (“Eldorado” or the “Company”) is pleased to announce
that it has entered into a mandate letter (“Mandate Letter”) with Greek banks for a credit committee
approved €680 million project finance facility for the development of the Skouries Project in Norther n
Greece (“Skouries” or the “Project”).
“The Mandate Letter represents an important step towards the re -start of construction at Skouries,” said
George Burns, President and CEO of Eldorado. “We believe that Skouries is a world -class project that will
have a lasting positive economic and social impact for Greece, the communities we work in, and other
stakeholders. We remain confident in the Feasibility Study capital cost estimate of US$845 million, and with
the project finance facility in place, the Compan y has the balance sheet capacity to fund the remaining
capital cost for completion of the Project. We also continue to evaluate opportunities for complementary
sources of financing. A final decision to re -start construction remains subject to Board approva l, which we
expect to seek in the second half of 2022.”
The Mandate Letter includes a long -form term sheet, which contains customary terms and conditions,
including with respect to due diligence, and remains subject to negotiation of definitive binding lo an
documentation and to other approvals and conditions, including board approval and confirmation of the
availability of funds for a low-interest portion of the facility.
About Skouries
The Skouries project, part of the Kassandra Mines Complex, is located within the Halkidiki Peninsula of
Northern Greece. It is a gold-copper porphyry deposit to be mined using a combination of conventional open
pit and underground mining techniques. Based on the Feasibility Study, the total life of mine is approximately
20 years, and is expected to produce, on average 140,000 ounces of gold and 67 million pounds of copper
per year. From first production, the payback period of the project is less than four years, and is expected to
generate, on average, $215 million of free cash flow per year for the first five years of operations.
To see the latest video of the progress at Skouries, please visit the following link:
https://youtu.be/84g90LWb0T4.
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in
Turkiye, Canada, Greece and Romania. 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 Sto ck Exchange (TSX: ELD) and the New
York Stock Exchange (NYSE: EGO).
Contact
Investor Relations
Lisa Wilkinson, VP, Investor Relations
604.757 2237 or 1.888.353.8166
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Media
Louise McMahon, Director Communications & Public Affairs
604.757 5573 or 1.888.353.8166
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 Litigat ion 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", “guidance” 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, statements or information with
respect to: the Company's ability to enter into definitive documentation in respect of the project finance facility for the Skouries Project
(“Term Facility”), on the terms set out in the non -binding term sheet, on acceptable terms or at all; the terms and conditions of the
Term Facility, including the facility amount (including as a percentage of the total funding requirement), interest rate, cost overrun
provisions and shareholder support; timing of definitive documentation in respect of the Term Facility; the Company’s ability to
participate in the European Union Recovery and Resilience Facility; assuming definitive documentation is entered into, the completion
and drawdown of the proceeds of the Term Facility including the timing thereof; the Company’s ability to obtain complimentary sources
of funding including joint-venture equity partners and metal streams and the use of proceeds therefrom; the impact of the Term Facility
and funding of Skouries on the Company’s operations, infrastructure, opportunities, financial condition, access to capital an d overall
strategy; the Company’s ability to succe ssfully advance the Skouries project and achieve the results provided for in the Skouries
feasibility study; the results of the feasibility study, including the forecasts for the economics, life of mine, required capital, costs,
and cash flow at the Skouries project; expected production, including grade; forecasted NPV, IRR, EBITDA, and AISC; expectations
regarding advancement and development of the Skouries project, including the ability to meet expectations and the timing ther eof;
expectations on minin g operations; requirements for permitting; expectations on emissions; the social and economic impacts and
benefits of the Skouries project on the Company’s stakeholders, including in respect of local employment and procurement and in
local communities; estimates of Mineral Resources and Reserves, including all underlying assumptions, and the conversion of Mineral
Resources to Mineral Reserves; our expectation as to our future financial and operating performance, including future cash fl ow,
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, related timelines and schedules.
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: our abilit y
to enter into definitive documentation for the Term Facility on the terms set forth in the non -binding term sheet, on acceptable terms
or at all, and to satisfy the conditions precedent to closing and advances thereunder (including eligibility for, and t he allocation of
funding from the European Union Recovery and Resilienc e Fund, satisfaction of remaining customary due diligence and other
conditions and approvals); the assumption that board approval for a Skouries financing package and re -start of construction will be
obtained; our ability to meet our timing objectives for definitive documentation and first drawdown of funds; our ability to execute our
plans relating to the Skouries project as set out in the feasibility study, including the timing thereof ; ability to obtain all required
approvals and permits; the assumptions provided for in the feasibility study will be accurate, including cost estimates; no changes in
input costs, exchange rates, development and gold; the geopolitical, economic, permittin g and legal climate that we operate in,
including at the Skouries project; how the world -wide economic and social impact of COVID -19 is managed and the duration and
extent of the COVID-19 pandemic; 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, suspension s or
delays on our business and the ability to achieve our goals. In addition, except where o therwise 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 s tatements 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 t he 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: increases in financing costs or adverse changes to the terms of
available financing, if any, for the Skouries project; ability to enter into definitive documentation for the Term Facility o n acceptable
terms or at all; ability to satisfy the conditions precedent to closing and advances thereunder (including eligibility for, and the allocation
of funding from the European Union Recovery and Resilienc e Fund, satisfaction of remaining customary due diligence and other
conditions and approvals); failure or delays to receive necessary approvals or otherwise satisfy the conditions to the completion of the
Term Facility; the proceeds of the Skouries financing not being available to the Company; ability to execute on plans relatin g to the
Skouries project, including the timing thereof, ability to achieve the social impacts and benefits contemplated; risks relati ng to
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permitting and obtaining the required approvals, changes in exchange rates, input costs, development costs and gold pr ices;
geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity p rice
volatility; recoveries of gold and other metals; results of test work; risks regarding potential and pending litigation and arbitration
proceedings relating to the Company’s 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 ; foreign country
operational risks; risks of sovereign investment; regulatory risks and liabilities including, regulatory environment and restrictions, and
environmental regulatory restrictions and liability; discrepancies between actual and estimated pro duction, 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 vol atility; competition; loss of key
employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections title d “Forward-
Looking Statements” and "Risk factors in our business" in the Company's most recent A nnual Information Form and Annual Report
on Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form 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.
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 condi tions 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 United States.
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 Company’s financial statements and related MD&A available on
our website and on SEDAR under our Company name. The reade r is directed to carefully review such document for a full
understanding of the financial information summarized herein.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. With respect to “indicated mineral
resource” and “inferred mineral resource”, there is a great amount of uncertainty as to their existence and a great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any part of a “measured mineral resource”, “indicated mineral
resource” or “inferred mineral resource” will ever be upgraded to a higher category.
Except as otherwise noted, scientific and technical information contained in this press release was reviewed and approved by Simon
Hille, FAusIMM and Senior VP Technical Services for the Company, and a "qualified person" under National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects.
Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Technical disclosure regarding the Company’s properties included herein (the “Technical Disclosure”) has been prepared in
accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United Sta tes
securities laws. The terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured
mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance
with NI 43 -10. NI 43 -101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public
disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from t he
requirements of the United States Securities Commission (the “SEC”) applicable to domestic United States reporting companies.
Accordingly, information contained herein contain descriptions of our mineral deposits that may not be comparable to similar
information made public by United States companies subject to the SEC’s reporting and disclosure requirements.