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Eldorado Consolidates Ownership of Vila Nova Iron Ore Project

Friday, August 7th, 2009

Paul N. Wright, President and CEO of Eldorado Gold Corporation is pleased to report that the Company now controls 100% interest in the Vila Nova Iron Ore Project (“Vila Nova” or the “Project”) in Amapa State, Brazil. Eldorado previously owned 75% interest in the project, the balance of 25% being controlled by Mineracao Amapari SA (“Amapari”), a Brazilian private company. Eldorado has finalized and executed an agreement with Amapari, which results in the acquisition by Unamgen Mineracao – a wholly owned subsidiary of Eldorado in Brazil – of Amapari’s 25% remaining interest in the project in exchange for a Net Profits Interest royalty of 10% plus a sliding scale royalty based on the operating margin of the Project.
Vila Nova contains Proven and Probable Reserves (as of December 31, 2008) of 9.2 million tonnes of ore at a grade of 61.0% Fe plus an Inferred Resource of 2.0 million tonnes at 61.2% Fe. The Project consists of a conventional shovel-and-truck owner operated open pit mine followed by crushing, screening, and minor gravity separation plant designed to process 1 million tonnes of ore per year. Lump ore and sinter fines to be produced from the Project will be shipped from the Santana Port, which is located at a distance of approximately 180 Km from the Project. The mine and plant were successfully commissioned during the first half of 2009 and were put on care and maintenance as a result of the global financial crisis. The Project is fully permitted for commercial production.
“This agreement simplifies and consolidates the ownership structure of Vila Nova without any additional upfront cost for Eldorado”, commented Paul N. Wright. “The Vila Nova Iron Ore Project is not a core asset for Eldorado but we look forward to putting the Project in commercial production once prices of iron ore recover to satisfactory levels”.
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