Villa Nova Reports Full Year Of Production

VANCOUVER, BC - Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation said, "During 2011, the Company achieved record earnings from its gold mining operations on sales of 658,919 ounces of gold at an average realized gold price of $1,581 per ounce and average cash operating costs of $405 per ounce. As a result of this strong performance, the Company generated $502.1 million in cash during the year from operating activities, and paid $92.4 million in debt, net of additional borrowings.

The Vila Nova in Brazil, produced 537,958 wet metric tonnes of iron ore at an average grade of 63.9% Fe during 2011. A total of 473,387 dry metric tonnes of iron ore in the form of lump and sinter feed was sold on the spot market during 2011 at an average price of $120 per dry metric tonne. The mine commenced operations in 2010 but due to production and shipping difficulties only recorded sales of iron ore during the fourth quarter of 2010. Production during 2011 reflected a full year of production and matched Company targets.

At the Tocantinzinho, engineering and permitting activities were conducted during 2011 related to completion of a positive prefeasibility study for Tocantinzinho. The study was based on a 4.4 million tonne per year open pit operation using a combination of flotation and cyanide leach to recover gold from the granite hosted orebody. Capital costs are estimated at $383.5 million, including the infrastructure required to support the project. The average production rate is projected to be 159,000 ounces per year at an average cash cost of $559/ounce.

In addition to the work carried out on the engineering studies, preparations were completed for the Environmental Impact Assessment (EIA) study, which was submitted to the state government in July 2011. Processing of the EIA application within the Brazilian government was delayed during the year due to a jurisdictional dispute between the state and federal governments over responsibility for permitting in the project area. By year end, the jurisdictional dispute was resolved in favour of the state government.

At the Tocantinzinho project, the 2011 exploration program tested targets peripheral to the known deposit defined by soil geochemistry surveys, geophysical surveys (induced polarization, magnetic), and surface exposures of mineralized material. Grid-based auger drilling was employed to further define targets within broad gold-in-soil anomalies prior to drilling. Approximately 17,500 metres were drilled during the year. The best gold intercepts in the program consisted of narrow but high grade zones associated with fault zones or quartz+sulphide veins along the Tocantinzinho Trend southeast of the deposit and beneath garimpo workings south of the deposit. Also in 2011, existing soil surveys were extended into areas west, east, and north of the main deposit. The surveys identified several new targets to be tested in 2012.

Reconnaissance at the Agua Branca project, 1,532 metres of drilling tested targets at the Carlinho and Camarao Hill zones. At Camarao Hill, drillhole AB46 intersected an interval of 154 m grading 1.1 g/t Au and extended known mineralization 250 metres to the northeast of previous drilling. Based on the results of this drillhole and the exploration potential of the surrounding area, Eldorado exercised its option to earn 100% of the Agua Branca project through a $1.9 million payment to the owner.

West of Tocantinzinho at the Piranhas project, exploration activities completed in 2011 included extending the existing area of soil sampling, and employing grid-based auger drilling to define diamond drilling targets within a broad gold-in-soil anomaly.

The company's address is 1188, 550 Burrard Street, Bentall 5, Vancouver, BC V6C 2B5, (604) 687-4018, fax: (604) 687-4026.