Eldorado Gold Corp Annual Report 2015

FY2015 Annual Report · Eldorado Gold Corp

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BALANCING
our
RESPONSIBILITIES

Eldorado Gold Year in Review and Financials 2015

TABLE OF CONTENTS

YEAR IN REVIEW
Eldorado Gold at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Our Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Where we Operate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Letter from the President and CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2015 Highlights & Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Our Performance and Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Our Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Our Approach to Responsible Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Contributing to Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . 14
Our Value Chain and Local Procurement . . . . . . . . . . . . . . . . . . . . . . . . . 16
Governance and Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Materiality Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Our Communities – Building Opportunities . . . . . . . . . . . . . . . . . . . . . . . 24
Managing our Environmental Footprint . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Managing our Inputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Managing our Outputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Biodiversity and Reclamation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Our People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Keeping our People Safe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
GRI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Mineral Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Mineral Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Cautionary Note about Forward-Looking

Statements and Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

FINANCIALS
Financial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

ABOUT THIS REPORT

This Report includes data on the operational, economic, environmental, and
social performance of our six producing mines . While we discuss construction
and development projects in relevant sections of this Report, our performance
data is focused on our producing assets . Data represents the full 2015 calendar
year, and all costs are reported in US dollars unless otherwise noted .

This Report has been prepared in accordance with the “Core” Global
Reporting Initiative (GRI) fourth-generation (G4) Sustainability Reporting
Guidelines (www .globalreporting .org/reporting/g4) . We currently do not
externally verify the Sustainability Report, but the content has been prepared
and reviewed internally .

Where applicable, restatements of prior-year data have been highlighted
throughout the Report . Restatements occur as a result of updated or more
accurate data becoming available after our previous 2014 Sustainability Report
publication date .

Other In-Country Sustainability Reporting

■ Greece – Our Greek subsidiary, Hellas Gold publishes an annual Corporate

Social Responsibility (CSR) report that is aligned with the GRI .

■ China – Our Jinfeng operation in China voluntarily publishes an annual

CSR report in accordance with various Chinese reporting guidelines .

We welcome feedback from stakeholders regarding our sustainability
reporting . Please direct comments or requests for further information to:
sustainability@eldoradogold .com .

Rehabilitated areas of the Olympias tailings facility, Greece

ELDORADO GOLD
at a GLANCE

Headquartered in Vancouver, Eldorado Gold is one of Canada’s
leading mid-tier public gold companies, with shares trading on the
Toronto (TSX: ELD) and New York (NYSE: EGO) stock exchanges.

Eldorado’s operations are global and we have assets in Turkey, China, Greece, Romania and Brazil .
Our activities involve all facets of mining, including exploration, development, production and
reclamation . In 2015, we produced 723,532 ounces of gold and had proven and probable gold
reserves of approximately 25 million ounces . Eldorado is the largest foreign gold producer in China
and operates the largest gold mine in Turkey .

Our 33 offices, operations and projects employ approximately 7,300 people worldwide . We operate
as a decentralized business, with the majority of employees and management being nationals of the
countries where our operations and offices are located .

Our success is based on a low-cost strategy, a highly skilled and dedicated workforce, safe and
responsible operations, and long-term partnerships with the communities where we operate .

Eldorado has a market capitalization of over $2 billion and revenues of approximately
$0 .9 billion per year .

For more information on Eldorado Gold, our entities, and financial performance, please see our
2015 Annual Information Form on our website: www .eldoradogold .com/investors/financial-
information/filings .

DID YOU KNOW?

Eldorado operates
Turkey’s largest gold
mine: Kişladağ

Eldorado’s assets in Greece
have the potential to make
the country a leading
European gold producer

KEY FACTS

7,300

employees & contractors
worldwide

countries of operation

producing mines

years’ experience in
building and operating
mines globally

724,000 oz

gold produced in 2015

Moz gold reserves

Production from our two
Turkish mines accounts for
more than 40% of Turkey’s
total annual gold production

Eldorado was the first
Western company to
build and operate a gold
mine in China

Crushed ore being transported
via conveyor at Kişladağ, Turkey

Eldorado Gold Year in Review 2015 1

OUR STRATEGY

We aim to build value for all those invested
in us – from our employees to our neighbours
and shareholders. We do this by discovering,
acquiring, and developing quality gold assets
in prospective jurisdictions. This has been our
strategy for the past 20 years and underpins
our vision to build a sustainable, high-quality
business in the gold sector.

Kişladağ open pit at dusk, Turkey

2 Eldorado Gold Year in Review 2015

OUR STRATEGIC PRIORITIES

Our success to date stems from a commitment to the following
four strategic priorities .

1. Quality Assets

Our business is based on a portfolio of long-life, low-

cost assets in prospective jurisdictions . The quality of our
asset base allows us to achieve long-term growth with
high margins, enhancing our ability to generate free
cash flows and earnings per share .

2. Operational Excellence

We invest in new technologies and training our people

in order to increase productivity, reduce risk and operate
to guidance year-on-year .

3. Capital Discipline

Capital discipline underpins every business decision

we make . We consider all competing uses of cash and
prioritize capital for sustaining our operations and
developing our key projects .

Our balance sheet strength is a key competitive advantage,
as it positions us to develop our assets, take advantage of
opportunities and withstand market pressures .

4. Accountability

We are committed to doing business honestly, respecting
our neighbours, minimizing our environmental impacts
and keeping our people safe . Operating this way is
essential to the sustainability of our business .

“Eldorado has always focused on
developing quality assets managed
by strong technical teams, prioritizing
stakeholder relationships at all
levels and conducting exploration in
prospective geological locations.”

Paul Wright
President and CEO

WHERE we OPERATE

Our activities span three continents: Europe, Asia and South America. We have
strategically built our portfolio in under-explored, highly prospective areas that
offer the potential for long-term growth and access to high-quality assets.

The maps below show the locations of our operations, along with Eldorado’s percentage
ownership of each asset.

EUROPE

LEGEND

Deva

ROMANIA

GREECE

Ankara

TURKEY

Athens

ASIA

Beijing

CHINA

SOUTH AMERICA

BRAZIL

Belo Horizonte

OPERATING MINES

Efemçukuru, Turkey (Gold – 100%)

Kişladağ, Turkey (Gold – 100%)

Stratoni, Greece (Silver, Lead, Zinc – 95%)

Tanjianshan, China (Gold – 90%)

Jinfeng, China (Gold – 82%)

White Mountain, China (Gold – 95%)
6

CONSTRUCTION PROJECTS

Olympias, Greece (Gold, Silver, Lead, Zinc – 95%)

Skouries, Greece (Gold, Copper – 95%)(1)

Eastern Dragon, China (Gold, Silver – 75%)

EVALUATION &
DEVELOPMENT PROJECTS

Perama Hill, Greece (Gold, Silver – 100%)(1)

Certej, Romania (Gold, Silver – 81%)

Tocantinzinho, Brazil (Gold – 100%)

CARE & MAINTENANCE

Vila Nova, Brazil (Iron Ore – 100%)

•

Country Office

(1) Both Skouries and Perama Hill were put on care and maintenance in January 2016.

Eldorado Gold Year in Review 2015 3

LETTER from the
PRESIDENT and CEO

Paul Wright, President and CEO

Over the past 20 years, Eldorado Gold has built
more than just mines. In that time, we have
helped establish Turkey’s gold mining industry,
brought leading safety and environmental
standards to new mining jurisdictions, and helped
local communities achieve a better standard of
living. Patience, dedication and dialogue have
allowed us to enter six new countries, build and
expand eight mines and develop Eldorado into
a leading mid-tier gold producer.

Paul N. Wright

President and Chief Executive Officer

4 Eldorado Gold Year in Review 2015

“Our six mines continued
to outperform in 2015,
exceeding our initial
production guidance
by nearly 10%.”

“Our teams’ efforts resulted
in a 25% improvement in
accident rates across our
global operations.”

1.03

Total Lost-Time Injury
Frequency Rate

“We will continue to invest
in our people, our operations
and our communities to ensure
that we remain welcome
partners in the areas where
we operate.”

The integrity of our teams and their ability to build relationships, trust and
mutual respect with key stakeholders underpins our history of successful
operations . We are guided by the values of honesty, openness and
accountability and we continue to measure our performance beyond the
balance sheet .

This report outlines our operational and sustainability performance for
2015 . We use a wide range of metrics to track our progress from year to
year, noting areas where we have improved and identifying areas where
we can improve further . This data-driven approach helps us set targets for
subsequent years and focus our resources on areas of mutual importance
to our operations and stakeholders .

Exceeding Our Guidance

From an operational standpoint, our six mines continued to outperform
in 2015 . We produced a total of 723,532 ounces of gold, exceeding our
initial guidance of 640,000 to 700,000 ounces . Cash operating costs
were at the low end of our forecasts, finishing the year at $552 per
ounce, and all-in sustaining costs were $842 per ounce . Accounting for
depletion, our reserves and resources for the year were down slightly;
however, we have an impressive total proven and probable gold reserve
base of nearly 25 million ounces of gold and a leading reserve life in
comparison to our peer group in the gold industry . With the price of
gold significantly down from its 2011 high of over $1,900 per ounce, we
remain disciplined in allocating funds prudently to our growth projects so
that we can maintain the financial flexibility that will enable us to sustain
and grow our business .

Focusing on Safety

From our commitment to health and safety, I am proud to report that
our teams’ efforts resulted in a 25% improvement in accident rates
across our global operations, achieving a total Lost-Time Injury Frequency
Rate of 1 .03 . We had no fatalities in 2015, but I am deeply saddened
to report the tragic death of Mr . Konstantinos Strounis, an experienced
underground miner at our Stratoni mine in Greece, in February 2016 .
A mines inspector examined the scene immediately following the fatal
accident and found no substandard operating conditions . We are
waiting on the inspector’s final report; however, we do not rest on that
and are ensuring we do everything we can to prevent further incidents .
Our internal investigation has resulted in findings that we have acted
upon immediately, in order to reduce the likelihood of a similar accident
occurring again .

Committed to Environmental Best Practices

On the environment side, we are proud to have achieved another year
with no reportable environmental incidents . With Efemçukuru receiving
ISO 14001 certification in 2015, all of our operations in Turkey and Greece
are now certified to this global standard .

We demonstrated our commitment to implementing best practices at our
mine sites by completing International Cyanide Management Code (ICMC)
certification at our Jinfeng and Tanjianshan mines . This is an enormous
accomplishment for our site teams and I am proud to report these are the
first two gold mines in China to be ICMC certified .

As a member of the Mining Association of Canada, we achieved our 2015
target of assessing our operations’ conformance to the protocols outlined
in the Towards Sustainable Mining framework . All sites completed full
reviews, and while each identified gaps at various stages of the protocols,
we are working to further improve our internal processes and standards
over the next two years as we move towards formal implementation of the
framework at each of our operations .

Engaging to Build Trust

Our track record of building long-term relationships with local
communities and all levels of government in Turkey, China and Brazil has
set the bar for how we engage with our stakeholders in Greece . Despite
the Greek courts upholding the legality of our permits for our Skouries
and Olympias projects on numerous occasions, we continue to face
permitting challenges with the current Greek Ministry of Environment and
Energy . We strive to operate to the highest environmental, health, safety
and community standards and we continue to work hard to demonstrate
this responsible approach to the Greek government . We made a
commitment to these projects when we acquired them back in 2012,
and we remain dedicated to their development over the long term .

Looking Ahead

Our consistent production, organic exploration potential, financial stability
and low debt, an enviable project pipeline and the long lives of our assets
place us in a strong position for sustainable growth . Looking ahead, we
have set ambitious targets for our operations in 2016 that encompass
economic, health, safety, environmental and community aspects . Of note,
we aim to become a signatory to the UN Global Compact and to
strengthen the existing grievance mechanisms at sites . We will continue
to invest in our people, our operations and our communities so that we
remain welcome partners in the areas where we operate .

It is the passion and dedication of our global team that has built Eldorado
into the company that it is today . I am honoured to work with people
who exhibit quality and integrity in all that they do .

Eldorado Gold Year in Review 2015 5

2015 HIGHLIGHTS &
YEAR in REVIEW

$6.05 million

($11.1 million in 2014)(1)

The amount we invested in social
responsibility projects in the
communities where we operate .

NaCN

Three of Eldorado’s four sites
using cyanide have achieved certification
under the International Cyanide
Management Code .

305%

(433% in 2014)

The total volume of water processed by
our water treatment plants as a percentage
of total water use across all of our sites .
At Kişladağ, we recycled and reused nearly
35 times more water than we withdrew
from local water sources .

4.59 TRIFR

(6.69 in 2014)

A 31% reduction in our company-wide
2015 Total Recordable Injury Frequency
Rate (TRIFR) per million hours worked . This
reflects a company-wide reduction of lost-
time injuries, medical-treatment injuries,
and restricted-work injuries in 2015 .

1.03 LTIFR

(1.38 in 2014)

99%

The percentage of employees at each of
our sites who are from that country .

A 25% reduction in our company-wide
2015 Lost-Time Injury Frequency Rate
(LTIFR) per million hours worked . This is the
fourth year that Eldorado has achieved an
annual reduction in its LTIFR .

4,703 m3

The number of cubic metres of topsoil
stockpiled for reclamation at Jinfeng
in 2015 .

23 ha

The number of hectares of rehabilitated
land at our sites in 2015 .

The number of reportable spills that
occurred at Eldorado’s sites in 2015 .

2 million
plants and
250
species

The number of plants growing in our
Olympias Plant Nursery – one of the
largest nurseries in northern Greece –
as part of Eldorado’s rehabilitation and
landscaping efforts in the region .

6 Eldorado Gold Year in Review 2015

(1) Two large community projects (funding for a new elementary school and university buildings
in Turkey) were completed in 2014, hence a decrease in 2015 community spend .

YEAR IN REVIEW

Q1 2015

Q4 2015

■ Jinfeng: Became the first operating mine in China to achieve
International Cyanide Management Code (ICMC) certification

■ Vila Nova: Was placed on care and maintenance pending a
recovery in iron ore prices; unfortunately, this resulted in the
termination of ~200 full-time positions

Q2 2015

■ Kişladağ: Completed the recertification of the ISO 14001

environmental management system

■ All operations in China began implementing the Country

Strategic Occupational Health and Safety Plan

■ Jinfeng: A $444 fine was issued to our Jinfeng operation,

related to two minor non-compliances of effluent discharge that
occurred in Q1 and Q3 2014

■ Eastern Dragon: Received Project Permit Approval from the

National Development and Reform Commission, which included
a review and verification of previous permits granted, including
the Environmental Protection Assessment, the Social Risk
Management Licence and all relevant business licences

■ Tocantinzinho: Completed a positive feasibility study

■ Certej: Completed a positive feasibility study

Q3 2015

■ Efemçukuru: Successfully completed the ISO 14001 and OHSAS

18001 (Occupational Health and Safety) external audits

■ Kişladağ: Received an award from the Marmara region

industrial zone recognizing the site’s environmental management
systems and performance

■ Jinfeng: Invited to attend the 2015 Guizhou Provincial

Corporate Social Responsibility Release Conference with Jinfeng’s
Corporate Social Responsibility Report

■ Tanjianshan: Completed the raise of the tailings dam 4 without

any significant health, safety or environmental incidents

■ Hellas Gold: Greece’s Ministry of Environment and Energy

revoked approved technical studies, preventing the company
from progressing its development plans in Halkidiki . In January
2016, Greece’s top administrative court ruled that the decision
to revoke Eldorado’s mining licence was baseless

■ Hellas Gold: Provided opportunities to 266 local summer

student trainees from the Aristotle Municipality

■ Certej: Romanian court ruled that our environmental permit for

Certej is valid

■ All operations in Turkey, China and Greece completed a

gap assessment against the Mining Association of Canada’s
Towards Sustainable Mining framework, to prepare for
implementing this framework

■ Kişladağ: Completed a biodiversity conservation site study;
no impacts were found outside the mine site boundary

■ Kişladağ: Delivered environmental management refresher

training to over 1,000 employees and contractors

■ Tanjianshan: Achieved ICMC certification in December

■ White Mountain: Achieved 98% compliance with the ICMC .

Full certification with the Code cannot be achieved until cyanide
jurisdictional, manufacture and transport arrangements are
agreed to and amended with the local government

■ New site records of 543 days (Jinfeng) and 298 days (White

Mountain) without a lost-time injury, as at December 31, 2015

■ All of our China sites achieved zero lost-time injuries in 2015

■ Hellas Gold: Received prizes in all four categories entered at
the national HR Awards, including: Excellence in Workplace
Well-being; Excellence in Performance Management Strategy;
Best Performance Management Tools / Practices; and Best Local
Recruitment Practices

■ Tocantinzinho: Submitted our application for the installation

licence to local authorities

Gold Production 2015

Gold production of 723,532 ounces

(1)

53%

45%

Gold Reserves 2015

Gold reserves of ~25 million ounces

Turkey
China
Greece
Romania
Brazil

10%

34%

35%

14%

(1) Production is from tailings

retreatment at Olympias .

Eldorado Gold Year in Review 2015 7

OUR PERFORMANCE and TARGETS

Our focus on building value for all those invested in us and our commitment to
operating to the highest health, safety, and environmental standards continues
to drive our performance targets each year.

2015 PERFORMANCE

Achieved

Partially Achieved

Not Achieved

Area

Economic/
Operations

Target

Result

Comment

Produce between 640,000–700,000 ounces
of gold

Deliver cash operating costs between
$570–$615 per ounce

Produced 723,532 ounces of gold

Cash operating costs of $552 per ounce

Deliver AISC between $960–$995 per ounce

AISC of $842 per ounce

Maintain gold reserves between 20 and
25 times the production rate

Continue to advance our development
projects at Skouries and Olympias in Greece

Remain in the lowest quartile of industry
cash costs

Maintain liquidity of no less than $200 million

Maintain a debt-to-capital ratio of less
than 30%

Gold reserves of ~25 million ounces,
over 30 times the production rate

Phase I at Olympias was completed in early 2016; while
Skouries was put on care and maintenance in January
2016, development progressed throughout 2015

Our flat cash costs year-on-year continues to place us
in the lowest quartile of industry cash costs

Total liquidity of ~$668 million at year-end 2015
and rigorous planning, budgeting and forecasting
processes in place

Debt-to-capital ratio of 10 .8%

Pay a semi-annual dividend

Paid dividends of CDN$0 .02/share

Health, Safety,
Environment

Zero fatalities

Reduce our LTIFR

Identify and mitigate safety risks

Align sites’ management processes with
MAC’s TSM Health and Safety protocol

Work to align our site, regional and
corporate-level crisis management
communication plans with MAC’s TSM
Crisis Management protocol

Have no reportable environmental incidents

Become ICMC compliant at all our Chinese
operations (Jinfeng, Tanjianshan and
White Mountain)

8 Eldorado Gold Year in Review 2015

No fatalities in 2015

Reduced LTIFR to 1 .03 from 1 .38 in 2015

30% reduction in accident rates at our
Chinese operations

All sites completed a full review throughout the year
and found the existing safety management to be
aligned with TSM at levels B and above

All sites reviewed and updated crisis management
plans accordingly . Plans reflect TSM protocols

No reportable environmental incidents occurred
in 2015

Jinfeng and Tanjianshan received ICMC certification
in January and December 2015 respectively . White
Mountain made significant improvements in safe
cyanide management and continues to benchmark
its activities against the Cyanide Code protocols, but
is currently prevented from achieving compliance
because its cyanide supplier and transporter have
opted not to become a signatory to the Code

2015 PERFORMANCE

Area

Governance

Target

Result

Comment

Align sites’ management processes with MAC’s
TSM Tailings Management protocol

Gap assessments were completed; all sites have
undergone third-party review

Improve the transparency of our commitment
to health, safety and the environment by
updating existing policies

Improve the transparency of our
commitment to human rights by formalizing
a corporate policy

Adhere to the World Gold Council’s
Conflict-Free Gold Standard

Continue to be transparent by publishing
annual reports to GRI guidelines

Maximize the value of our Chinese assets

Continue to treat our host communities
with respect and deliver tangible and
ongoing benefits

Expand our channels of engagement
with stakeholders

Align sites’ management processes with
MAC’s TSM Aboriginal and Community
Outreach protocol

Published updated policies in January 2016

Published and distributed a human rights policy in
January 2016

All our operations continue to meet the Conflict-
Free Gold Standard

This is our fifth report which aims to incorporates
elements of the Annual Reports as well

Exploration of listing assets on Hong Kong Stock
Exchange or sale of assets ongoing

Donations and community spending totalled
$6 .5 million in 2015

Development of our sustainability blog and social
media platforms

All sites have management processes for community
outreach and completed assessments of these
processes against the TSM protocol with results
indicating a B or better rating

Community

2016 TARGETS

Area

Target

Economic/Operations

Produce between 565,000–630,000 ounces of gold

Deliver cash operating costs between $585–$620 per ounce

Maintain gold reserves between 20 and 25 times the production rate

Maintain a debt-to-capital ratio of less than 30%

Health, Safety, Environment

Zero fatalities

Achieve a minimum 10% year-on-year improvement in the Reportable Injury Frequency Rate

Implement a Corporate Safety Directive across all regions

Improve scores at sites for MAC’s Health and Safety protocol

Conduct review for alignment with the Voluntary Principles on Security and Human Rights;
implement plans to close any gaps

Have no reportable environmental incidents

Continue ICMC compliance at current operating sites, design new projects to standards upon start-up

Increase availability and transparency of environmental data collected at sites

Governance

Review plans for an employee diversity policy

Become a signatory to the UN Global Compact

Develop reporting systems compliant with the Extractive Sector Transparency Measures Act guidelines to
enhance transparency of payments in the countries where we operate . Initial reporting under the act is
due by May 2017

Community

Implement formal grievance mechanisms at sites that do not already have one

Eldorado Gold Year in Review 2015 9

OUR BUSINESS

CREATING VALUE THROUGHOUT THE MINING LIFE CYCLE

We find, mine and produce gold. At each stage of the mining process, we aim to create value for all of
our stakeholders while operating responsibly. For us, this means developing strategies to mitigate our
risks and impacts while also building opportunities for those whose lives our operations touch, either
directly or indirectly.

Exploration

Development

Construction

Mining &
Processing

Reclamation,
Care & Maintenance,
& Closure

Exploration

Our exploration and business development teams actively look for new
resources within our focus jurisdictions and in new regions . They assess
early and advanced stage exploration projects and conduct near-mine and
grassroots exploration programs with the aim of adding value through
discovery in order to increase our resources and reserves .

During grassroots exploration, small teams visit prospective areas to
conduct geological surveys and sampling . If results indicate a possible
mineralized deposit, we drill exploration holes to determine whether
economically viable concentrations of metals exist . During this phase,
we engage with local community members to identify their social and
environmental concerns . We also begin conducting environmental
baseline studies .

These studies give us a picture of the capital costs required for development

and the longer-term economics of the project . We are then able to decide if

a capital investment makes economic sense, in order to begin construction .

We also conduct extensive environmental testing during this phase to
establish baseline data for air, water, soil and biodiversity . This information
becomes part of the Environmental Impact Assessment (EIA) (also known
as an Environmental Impact Study) that must be completed and
approved by the relevant authorities before a mine can be developed .
The environmental permitting process also enables us to consult with the
community to obtain input and commentary .

Infrastructure development initiatives – such as improving roads, building

sewage systems and drilling water wells – may also commence, according

to local community needs .

Development

During the development stage, we complete feasibility studies
to determine:

■ The optimal mining methods and mineral recovery processes

for a project

■ The required infrastructure

■ The best placement of facilities, based on thorough impact

and mitigation assessments

■ The required monitoring, closure and reclamation plans

10 Eldorado Gold Year in Review 2015

Construction

Once our EIA is approved and we have received any other relevant
permits, we can begin construction . The risk mitigation measures
identified in the EIA guide all of our activities .

Construction employs the greatest number of people in the mining life
cycle and we add significant value to local economies through this job
growth . We aim to hire local residents and we train all of our employees
and contractors in the industry’s leading environmental, health and safety
practices, procedures and controls .

Based on our dialogue with local communities, we identify gaps in skills
and capacity, provide on-the-job training and if needed work with local
technical schools and universities to enhance their mining-specific and
trades programs so that local residents can increase their prospects of
employment with us .

Mining and Processing

During production, ore is extracted from underground and/or open pit
mines . It is then processed to extract metals such as gold and silver .
The leftover waste is placed in an engineered facility or placed back
underground as backfill . An ongoing monitoring plan – to test air, water
and soil quality, and noise, blast vibration and dust levels – enables us to
comply with environmental regulations .

We add value during the production phase through a commitment to
operational excellence and community engagement . New equipment and
technologies, continuous improvement projects, low accident rates, good
environmental stewardship, and effective internal procedures all combine
to deliver productivity benefits . Consultation with local communities helps
us identify where we can help create new opportunities for sustainable
economic development .

Reclamation, Care and Maintenance,
and Closure

Restoring the land so it is compatible with the surrounding landscape is
a priority for us and our communities . How we conduct our rehabilitation
in one jurisdiction impacts our welcome in another jurisdiction . Prior to
and throughout a mine’s operation, we develop plans for mine closure .
These address:

■ Decommissioning – dismantling project infrastructure such as

facilities and buildings

■ Reclamation – revegetating disturbed areas

■ Ongoing monitoring – long-term monitoring

of environmental parameters

■ Closure costs – provisions are made and updated regularly

Whenever possible, remediation is done during the mine’s operation,
and topsoil from mining and construction areas is stored for later use
in reclamation activities . We investigate different plant, shrub and tree
species suitable for local propagation in studies that are typically done
in onsite greenhouses .

When we close a mine site, we conduct further reclamation activities as
required in our EIA so that the environment can successfully transition to
a productive ecosystem .

Tocantinzinho gold project, Brazil

SPOTLIGHT: RESPONSIBLE FROM THE START:
OUR TOCANTINZINHO PROJECT

As we advance our Tocantinzinho project in Brazil through the
permitting process, an environmental consulting company has been
conducting baseline assessments on the water, soil, air, archaeological,
flora and fauna conditions of the project area . At the same time, we
are complying with 60 conditions of environmental monitoring, as set
out in our environmental licences, and are reporting the results to the
relevant local, state and national environmental agencies . For example,
we monitor surface and groundwater to analyze 19 physicochemical
parameters, and we present this data in a monthly environmental
monitoring report to the environmental agencies of the state .

We are also looking ahead to identify opportunities to share the
economic benefits associated with the project . In 2016, we will
conduct a capacity assessment of local stakeholders to establish a
baseline understanding of the skills and education levels in the project
area . We plan to establish two training centres to offer vocational
training aligned with the project’s skills requirements .

Vila Nova iron ore mine, Brazil

SPOTLIGHT: MAINTAINING ENVIRONMENTAL
RESPONSIBILITIES DURING CARE AND
MAINTENANCE AT VILA NOVA

In January 2015, we put our Vila Nova iron ore mine in Brazil on
care and maintenance . Environmental monitoring at the operation
continues, and we report to state and federal environmental agencies
on a monthly, quarterly and bi-annual basis . Although no mining
or processing activities are occurring at the site, our compliance
with legal conditions and reclamation activities remains unchanged,
and no notices of violations were issued by environmental agencies
in 2015 . We also continue to support our community outreach
activities – for example, we maintain our support for the Athlete of
the Future Program, which was launched in 2013 in partnership with
local schools to stimulate interest in academics and sports . For more
information on our Athlete of the Future program, view our video:
www .eldoradogold .com/news-and-media/video-library/ .

Eldorado Gold Year in Review 2015 11

OUR APPROACH
to RESPONSIBLE MINING

For Eldorado, operating responsibly means protecting the environment, providing safe
workplaces for our people, maintaining good relationships with our stakeholders, and investing
in infrastructure, economic development, health and education in the communities where we
operate. From exploration to reclamation, we anticipate our impacts and monitor our progress
in order to achieve the high standards we have set for ourselves.

This commitment to excellence is our approach everywhere we do business.

OUR GUIDING PRINCIPLES

Our guiding principles underpin all that we do .

ACT WITH INTEGRITY
We are committed to being
honest, straightforward and
accountable in all our
business practices.

BEHAVE RESPONSIBLY
We strive to demonstrate that
mining can be done
responsibly. We do this by
emphasizing environmental
stewardship at every stage of
the project life cycle.

ENRICH LIVES
We aim to create real, lasting
and tangible benefits for the
people whose lives our
operations touch.

OPERATE SAFELY
People come first. We implement
industry best practices, adhere to
all safety regulations and have
strict management systems in place
to promote a culture of safety
wherever we operate.

ENGAGE OPENLY
We believe that clear,
comprehensive disclosure, high
standards of corporate governance
and ethical business practices are
the only way to do business.

12 Eldorado Gold Year in Review 2015

OUR GUIDING FRAMEWORKS

To support our internal policies and rigorous controls on ethical conduct,
health and safety, and environmental and social responsibility, we
participate in several global initiatives that establish standards and
guidelines for best practice in these areas . Many of these frameworks have
been developed in consultation with non-governmental organizations,
academics, regulators and other stakeholder groups, and provide a means
to verify, measure and report on our performance . These include:

■ World Gold Council’s Conflict-Free Gold Standard

■ United Nations Guiding Principles on Business and Human Rights

■ Voluntary Principles on Security and Human Rights

■

ISO 14001 Environmental Management Systems Standard

■ OHSAS 18001 Occupational Health and Safety Management

Systems Standard

■

International Cyanide Management Code

■ Mining Association of Canada’s Towards Sustainable Mining

(TSM) Framework

■ Global Reporting Initiative (GRI) G4

■ Carbon Disclosure Project

Please see page 30 for a case study on how we have implemented the
International Cyanide Management Code at our sites, and visit our website
to view a copy of our Conflict-Free Gold Report: www .eldoradogold .com/
responsibility/our-approach/accountability .

Reclaimed areas at Kişladağ, Turkey

SPOTLIGHT: IMPLEMENTING MAC’S TOWARDS
SUSTAINABLE MINING FRAMEWORK

In 2015, we advanced our implementation of the Mining Association
of Canada’s (MAC) Towards Sustainable Mining (TSM) framework .
Specifically, we identified four of the six TSM protocols as priorities
for implementation: Tailings Management, Community Outreach,
Safety and Health, and Crisis Management . In 2015, all operations
conducted gap assessments against the management system
requirements in each of the six protocols . As expected, we found that
our sites’ existing practices already reflected many of the guidelines
suggested by the TSM framework, particularly in the areas of Safety
and Health and Community Outreach . For Crisis Management and
Tailings Management, while existing practices and maintenance were
deemed robust, we identified opportunities to further improve our
alignment with the TSM protocols and have started taking action on
these opportunities . Our development projects are also incorporating
the TSM protocols into their management programs .

Water collection and reclamation in progress at Kişladağ, Turkey

Eldorado Gold Year in Review 2015 13

CONTRIBUTING to
SUSTAINABLE DEVELOPMENT

Our operations contribute to the broader social and economic
development of the communities and countries where we operate.

BUILDING OPPORTUNITIES
AND ENRICHING LIVES

The benefits of our mining projects go far beyond the value of the
metals we produce . Our projects create a series of direct, indirect and
induced impacts that benefit local communities and national economies .
This ripple effect of economic activity multiplies as it moves outwards
from our mining projects .

Mining Creates Employment

Our mining projects create significant job opportunities for local
communities and beyond . Direct jobs are created at the mine itself and
indirect jobs are created throughout the industry supply chain . Jobs in the
wider economy are created as demand increases for local services, such as
shops, restaurants, hotels, schools and hospitals . The International Council
on Mining and Metals (ICMM) estimates that for every one direct mining
employee, three to five people may be employed indirectly elsewhere in
the host nation’s economy .

Our emphasis on ongoing training provides our employees with
opportunities to develop their skills while they work with us and enables
them to pursue new opportunities once our operations end .

Mining Generates Revenues

Our mines can be a significant source of income for employees and for
governments . Our projects generate revenues in the form of wages,
income taxes (personal and corporate), royalties and exports . Depending
on metal prices, production from our assets can contribute significantly
to a country’s trade balance . Studies by the ICMM indicate that for every
$1 of economic activity invested by a mining project, an additional $3 or
more is generated elsewhere in the host economy .

Primary school in Uşak province, Turkey

Mining Builds Communities

The infrastructure we build for new mining projects, such as power, water
and road development, also benefits local communities, particularly in
more remote regions . Water wells have been used for agricultural activities
in Greece and road development has improved transportation between
villages near our Jinfeng mine in China . Our projects have also directly
contributed to the well-being of communities through donations to health
centres and sports facilities and by funding tuition costs and educational
initiatives for local students, including at the university level . In Turkey, we
helped construct a 42-classroom building for Uşak University and a primary
school for 480 students, in addition to having worked with local farmers to
develop agricultural co-ops . Improving educational outcomes for children
and the ability to access better markets for farmers helps generate local
economic capacity and a growing regional tax base .

“Mining is one of the few industries that can still transform
societies and provide quality of life for people in remote places
around the world that other industries don’t necessarily reach.”

Paul Wright
President and CEO

14 Eldorado Gold Year in Review 2015

ECONOMIC IMPACTS OF A MINING PROJECT

Increased need for
municipal services
(police, fire, transport)

Development of
local goods and services
(shops, grocers,
restaurants,
leisure activities)

Development
of municipal facilities
(schools, universities,
hospitals, sport centres)

Job creation
(wider economy)

INDUCED impacts result from
employees of both the mine and
the supply chain relocating to,
and spending their wages in, the
local community.

BANK

Utilities

Accounting and
legal services

Transport

Mining fleet
(trucks and
loaders)

Parts, equipment
and machinery

Industrial
materials

Engineering and
environmental services

Job creation
(supply chain)

INDIRECT impacts result
from suppliers purchasing
goods and services to
meet mine demand.

MINING PROJECT

Payments for
land use

Infrastructure
development
(installation of power,
water, roads)

Lodging for
mine personnel

Salaries

Community
projects

Skill development

Royalties

Sales of metals

Export revenues

Payments
to suppliers

Job creation
(mining company)

Government taxes
(personal & corporate)

DIRECT impacts result from
the development and
operation of a mine.

Eldorado Gold Year in Review 2015 15

OUR VALUE CHAIN
and LOCAL PROCUREMENT

As a key source of employment and raw materials, mining is connected to almost all industries and
their value chains. We recognize that our operations and investments have a profound impact locally,
regionally and nationally. With operations and development projects in diverse jurisdictions across
three continents, our value chain directly impacts numerous sectors and industries, including:

■ Retail and consumer

■ Financial and investment

■ Manufacturing

■

Infrastructure and urban development

OUR VALUE CHAIN

■ Mobility

■ Power and electricity

The diagram below illustrates examples of Eldorado Gold’s own value chain,
and industry and end-user demand for our products .

Suppliers

Contractors

Refiners

End-Users

Suppliers

Refiners

Suppliers provide the materials and goods needed at our operations,
such as mining equipment, fuel, explosives and chemicals . Where
possible, we try to purchase goods and services from local suppliers
in surrounding communities or within the host country . In those cases
where we can’t procure specialist goods or services locally, we work
within our jurisdictions to improve capacity or, on occasion, import from
external suppliers .

Contractors

Contractors are hired for numerous activities across all stages of the
mining life cycle . They provide access to specialized technical knowledge
and skills, cost efficiencies, and satisfy short-term capacity demands such
as during shutdowns or routine maintenance .

Refiners purchase gold doré bars in order to further process and purify
the metal . Once purified, gold bullion is registered on a commodities
exchange such as CME Group, or traded in markets such as the London
Bullion Market .

End-Users

End-users of gold are widespread and include individuals, investors,
scientists, manufacturers and central banks . The value of gold has
been recognized for centuries and its unique properties (it is malleable,
conductive, does not tarnish and alloys well) mean that the precious
metal is used in a variety of applications, including jewelry, electronics and
computers, dentistry and medicine, aerospace, and medals and awards .

16 Eldorado Gold Year in Review 2015

LOCAL PROCUREMENT

The purchase of goods and services typically makes up 50-60% of the
production cost of mining . Increasing the share of procurement that is
captured by local firms can have a significant impact on the domestic
economy in our operating jurisdictions .

While we do not have a formal policy, we encourage the purchasing
departments at all of our sites to hire locally and use local suppliers
wherever possible . We take action at our sites to identify and work with
local suppliers to improve their capacity and ability to work with us .
This maximizes our positive economic contribution in the regions where we
operate and creates an effective network of suppliers close to operations,
improving our operational efficiency .

Our broad target is to increase the percentage of the materials purchased
from companies near our operations and projects every year . Local suppliers
are developing their businesses and are increasingly capable of providing
a larger proportion of the products and services required at our sites .
Domestic suppliers of goods and services were the biggest recipients
of our supplier expenditure in 2015, accounting for 84% of our host-
country investment .

LOCAL PROCUREMENT:

■ Creates jobs

■ Promotes skill development and technology transfer

■

Increases integration into global value chains

■ Formalizes local economies

■ Lowers procurement costs

■ Strengthens our social licence to operate

Local electricians work at Efemçukuru, Turkey

SPOTLIGHT: LOCAL PROCUREMENT IN TURKEY

After five years in operation, there are now nine local independent
companies that provide services such as transport, welding,
maintenance or electrical to our Efemçukuru mine site in Turkey .
These contractors employ just over 100 people from the immediate
local villages . The companies started by completing small pieces of
work during the mine construction phase and have now gained the
skills, certificates and licences needed to work on larger projects at the
mine site . The Efemçukuru Construction Department works with local
suppliers, helping them obtain the necessary permits and licences or
gain additional skills needed to continue to work at the operation .

One such company is the Kizildaglilar Nakliyat Transport Service .
Established in 2010 by 25 local community members, the company
initially operated a single tank truck that was contracted to provide
dust control on the mine access road at Efemçukuru . Today, the firm
has just under 50 employees and a fleet of 20 vehicles . In addition
to site services, the company also provides transport for Eldorado
employees and visitors to and from site, and transfers for local high
school and junior high school students .

TABLE 1: PAYMENTS TO SUPPLIERS

($ Millions)

Turkey

China

Greece

Romania

Brazil

Payment to domestic suppliers

Payment to international suppliers

Total

193

244

140

% Spend on domestic versus international suppliers

79%

100%

164

201

81%

70%

97%

Total All
Juristictions

523

620

84%

We define “local” as procurement from contractors and suppliers located within the neighbouring villages and communities of our sites . However, for data-reporting purposes, we report on
“payments to suppliers” within the categories of domestic and international suppliers only . Domestic suppliers include both local and national suppliers . If the money is spent within the country
(even if the company is a multinational), we categorize it as an in-country or domestic spend .

Eldorado Gold Year in Review 2015 17

GOVERNANCE
and
TRANSPARENCY

Central to Eldorado’s record as a trusted
operator is a commitment to ethical business
practices and high standards of corporate
governance. We recognize the importance of
having an integrated approach to managing
our operations, risks and relationships.

Efemçukuru processing plant, Turkey

18 Eldorado Gold Year in Review 2015

BOARD OF DIRECTORS

Governance at Eldorado is headed by our Board of Directors .
The Board provides senior management with independent and
objective advice . Our corporate governance policies explicitly
require the Chairman of our Board and all members of our Board
committees to be independent . Together, the Board works with
senior management to set long-term goals, develop strategy and
monitor Eldorado’s progress toward achieving its goals . The Board
also regularly evaluates our principal business risks and monitors
the effectiveness of our risk management process .

Our Board is composed of the following committees:
Audit, Compensation, Corporate Governance and Nominating,
and Sustainability .

Sustainability Committee

The Sustainability Committee oversees our policies, programs and
practices in the areas of environment, health, safety, community
relations and security . The Committee seeks to be assured
that Eldorado consistently promotes ethical, transparent and
responsible behaviour, and meaningfully engages its stakeholders .

The Sustainability Committee receives detailed quarterly reports
from all sites and works with Eldorado leadership to suggest
directives for senior management to pursue . The Committee
receives a briefing within 24 hours if a fatality, serious lost-time
injury, significant environmental incident or anything that is legally
reportable occurs . The Committee periodically visits our sites for
first-hand validation and interaction with our operations personnel .

For more information on our Board committees, visit
www .eldoradogold .com/about-us/leadership/board-committees .

SENIOR MANAGEMENT OVERSIGHT

Eldorado operates with a decentralized, yet coordinated business
infrastructure . Our senior management team in Vancouver
works closely with management teams in each of our operating
jurisdictions, ensuring a clear line of sight to each operation .
Ultimate accountability for social and environmental performance
rests with our President and Chief Executive Officer, while day-
to-day responsibility is shared at the corporate level by the Chief
Operating Officer, the Senior Vice President, Operations, and the
Vice President, Investor Relations and Corporate Communications .

In addition to frequent site visits, our senior management team
aims for open communication and appropriate oversight through
weekly reporting on safety, health, environment and community
performance from site general managers and country managers .

CORPORATE DISCLOSURE AND TRANSPARENCY

Revenue Transparency

Our governance systems are designed so that we consistently evaluate
and effectively manage our risks; this, in turn, helps us stay focused on
our long-term planning, decision-making and communication . We believe
that clear, comprehensive disclosure and open communication with our
stakeholders will continue to encourage confidence in the legitimacy and
honesty of our business practices .

Governance Policies

Our Code of Business Conduct and Ethics, Anti-Bribery and Corruption
Policy, and Insider Trading Policy reinforce our standards and values
and outline our expectation that our employees and suppliers will
operate in accordance with the highest standards of legal and
ethical behaviour . We also outline our commitments to protecting
the environment and the safety of our people and neighbours in our
Environmental and Health and Safety policies . These were updated in
2015 . In early 2016, we published a Human Rights Policy . For more
information, visit www .eldoradogold .com/about-us/governance .

Sustainability Factors in Compensation

Regular performance reviews are performed at our sites, typically on
an annual basis, although some sites conduct monthly performance
reviews . Health, safety and environmental key performance
indicators are embedded into performance reviews that are linked to
compensation decisions .

Revenue transparency is critical to our investors and stakeholders .
Beyond public financial reporting, we aspire to further increase the level
of disclosure we make with respect to payments made to governments
as part of a broader industry mandate to fight corruption . We
recognize the importance of initiatives such as the Extractive Industries
Transparency Initiative (EITI) in improving revenue transparency, as well
as in strengthening government and company systems, informing public
debate, and enhancing stakeholder trust . While we do not operate in
any EITI signatory countries, both Canada and the European Union (EU)
have passed laws that require mandatory public reporting of payments to
governments by the extractive sector . The respective laws are:

■ Canada’s Extractive Sector Transparency Measures Act (ESTMA),

which came into force on June 1, 2015

■ EU’s Transparency and Accounting Directives (EU Directives),

introduced in 2013

Eldorado’s first report under ESTMA – covering payments made to
foreign and domestic governments at all levels during the 2016 fiscal
year – will be published by the May 29, 2017 deadline prescribed by the
Act . Reporting will be publicly available and will summarize Eldorado’s
payments of taxes, royalties, fees, bonuses, production entitlements,
dividends, and other categories of payment prescribed by the Act .

Under the EU Directives, member states were required to adopt the
requirements into domestic law in 2015, becoming effective as of
January 1, 2016 . Currently, Romania has implemented this legislation,
while legislation in Greece is not yet in effect . We do not have mining
operations in the Netherlands, therefore our Dutch subsidiaries fall
outside the scope of the EU Directives .

TABLE 2: PAYMENTS TO GOVERNMENTS(1)

($ Millions)

Royalties and land-use payments

Income and other corporate tax

Employee taxes

Other(2)

Total

Turkey

China

Greece

Romania

Brazil

2 .41

44 .60

15 .56

34 .00

96.57

3 .01

19 .40

2 .50

30 .69

55.60

0 .60

0 .44

9 .14

36 .65

46.82

0 .00

0 .51

0 .57

1.08

0 .00

0 .97

0 .40

1.37

Total All
Juristictions

6 .02

64 .43

28 .69

102 .31

201.45

(1) In future reporting, payments to Governments will be calculated and presented in a manner consistent with requirements outlined by the Extractive Sector Transparency Measures Act .

(2) Payments of taxes related to procurement of goods and services including withholding taxes, import and fuel duties . Also includes indirect taxes (such as value-added tax) where these

are not repaid to the company during the period .

Eldorado Gold Year in Review 2015 19

STAKEHOLDER ENGAGEMENT

We build trust through our ongoing
collaboration with a broad range of stakeholders,
which involves listening and responding to
stakeholder interests and concerns.

OUR STAKEHOLDERS

We define our core group of stakeholders as employees, contractors,
suppliers, investors, local community members, governments, non-
governmental organizations (NGOs) and industry groups . Each stakeholder
group has unique expectations, and we therefore tailor our engagement
practices to best meet their needs .

Talking with local communities near Jinfeng, China

HOW WE INTERACT WITH OUR STAKEHOLDERS

Stakeholder Group

Employees

Shareholders

Ways We Interact

■ Corporate, regional and site personnel engagement
■ Employee newsletters, social media and email
■ Workplace health and safety committees
■ Performance and development reviews

■ Perception studies
■ Annual shareholder meeting
■ Quarterly conference calls to discuss results
■ Frequent meetings

Government

■ Ongoing communication and dialogue with government officials at the municipal, regional and

Suppliers and contractors

Industry associations

NGOs

Communities

national levels

■ Ongoing communication and dialogue between representatives
■ Performance reviews

■ Membership in industry associations such as the International Cyanide Management Institute, the
World Gold Council, the Mining Association of British Columbia, and the Mining Association of
Canada (MAC) . We also participate in several working committees, such as MAC’s International Social
Responsibility Committee

■ At Kışladağ, we established an independent environmental committee, which includes representatives

from NGOs

■ Ongoing community engagement activities, including collaborative community projects
■ Neighbourhood meetings
■ Site tours for local residents and students
■ Regional newsletters, local media and social media

20 Eldorado Gold Year in Review 2015

COMMUNITY ENGAGEMENT

GOVERNMENT RELATIONS

Effective communication with our local stakeholders is important to

Mining is a heavily regulated industry and our operations are subject

our continued success and we have made this integral to our operating

to the laws and policies of the countries in which we operate . Our

approach for decades . We have established various methods for

in-country teams maintain regular dialogue with government authorities

communicating with local stakeholders that emphasize two-way dialogue

at the local, regional and national levels in order to better understand

and provide opportunities for local stakeholders to submit anonymous

government objectives and policies, provide information about our

feedback to our site personnel . Please see Table 3 for details on the

projects, discuss relevant issues, and advance our permits . At the

various communication methods currently established at our operations .

corporate level, we work with ministerial offices and diplomats, both

in Canada and abroad, to communicate our development successes

Moving forward, Eldorado has committed to implementing a framework

consistent with the Voluntary Principles on Security and Human

and challenges .

Rights, and we are reviewing our approach to monitoring, documenting

We advocate for clear, fair and transparent regulation and proactively

and reporting on community feedback – including grievances – at

share our experience as a global operator to help governments develop

each operation in order to improve the way we track and respond

and maintain appropriate legislation . We do not participate in any party

to stakeholder concerns .

politics or make payments to any political parties .

TABLE 3: COMMUNICATION WITH LOCAL STAKEHOLDERS

Turkey

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Tanjianshan (1)

Stratoni, Skouries,
Olympias

Local site grievance mechanism

Email feedback

Site office – Open door policy

Informal engagement
(daily interaction in communities)

Formal engagement

N(2)

(1) Tanjianshan is in a remote location, over 40 km from the nearest local community .

(2) A local site grievance mechanism is planned but not implemented . Feedback through other mechanisms (e .g . email, meetings, website, etc .)

are forwarded to the responsible departments, investigated and responded to .

TABLE 4: REQUESTS AND COMPLAINTS RECEIVED

Number received

Predominant topics

Turkey

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Tanjianshan (1)

Stratoni, Skouries,
Olympias

133

Blasting
vibration; dust

Dust; road
maintenance

Community
investment;
local
procurement

Blasting
vibration; dust;
water-related;
employment

–

Desire for
employment

(1) Tanjianshan is in a remote location, over 40 km from the nearest local community .

Eldorado Gold Year in Review 2015 21

MATERIALITY ASSESSMENT

This Report is an important tool we use to communicate with our various external stakeholders
and we conduct an annual materiality assessment to identify the key topics and aspects that should
receive attention in this Report. Although we have a clear understanding of what is important from
an internal perspective, the annual materiality assessment process enables us to consider external
views when we are identifying and selecting the sustainability topics to report on.

We use the Global Reporting Initiative’s definition of materiality
to determine the material topics to include in our Report. A topic
is material if, in the view of senior management and/or key
stakeholder groups, it is of such importance that it could in the
short, medium or long term:

■ Have a substantive influence on the assessments and decisions

of our stakeholders, or

■ Significantly impact Eldorado’s economic, environmental and

social performance

IDENTIFICATION

Principles that guide our identification of material issues include:

As part of our formal process to identify material topics, we analyzed
the prominent internal and external trends and events of 2015 .

■ Stakeholder Inclusiveness: Have we identified and engaged with our

key stakeholders?

Tending to saplings in our plant nursery at Kişladağ, Turkey

External Analysis

The mining industry engages with many interest groups, including
governments, investors, contractors and suppliers, service providers,
mining-affected communities, civil society organizations, organized
labour, academia, research institutions and downstream users . When
thinking about the most important topics of 2015, we considered the
various perceptions that external stakeholder groups hold regarding the
performance of Eldorado and the mining industry in general . We relied on
stakeholder engagement records and other internal communications, as
well as external resources such as media and industry reports to identify
the material topics of greatest concern to external stakeholder groups .

Internal Analysis

Building on the comprehensive materiality assessment conducted by a third
party for the 2014 Sustainability Report, we asked key internal stakeholders
across our offices, operations and projects to identify the key achievements,
challenges and trends of 2015 . The results of this survey were then
analyzed in the context of the wider trends and events in the mining
industry; global economic, social and environmental conditions; political
landscapes; and popular opinion .

22 Eldorado Gold Year in Review 2015

■ Relevance: Have we considered the relevance of all identified issues?

■ Significance: How important is the topic to our stakeholders?

■ Control: How much do we own or control the issue?

■

Influence: How do we influence the issue?

■ Transparency: Are we clearly and openly reporting on the issue?

PRIORITIZATION

Over 40 topics were identified during the materiality assessment process .
We assessed the relative importance of each topic to inform how much
coverage we should allocate to the topic in our Report . If a topic is of
greater importance, we include greater analysis of and commentary on
the issue to explain how it impacts or could potentially impact Eldorado
or its stakeholder groups, and how we manage the topic .

The top 13 material topics are outlined in the matrix on the next page
based on the significance of their economic, environmental and social
impacts, as well as their influence on the assessments and decisions
of stakeholders .

RESULTS AND ANALYSIS

Our stakeholders are interested in the issues and risks that affect Eldorado’s
long-term business performance and sustainable development . The most
significant trend identified in 2015 is the strong desire for more complete,
comprehensive and transparent communication on environmental, social
and governance performance . This has informed our approach to reporting
on all of our material topics this year .

HIGHER

s
r
e
d

o
h
e
k
a
t
S
o
t

e
c
n
a
t
r
o
p
m

Community Investment

Localization of
Goods & Services

Social Licence to Operate

Water Use

Biodiversity
& Reclamation

Waste Management
(including Tailings)

Overall Environmental
Performance

R
I

L
I
T

Permits & Licences

Emergency
Preparedness

Health & Safety

Economic Performance

Workforce Skills
Development

Energy Use

LOWER

HIGHER

MOST MATERIAL TOPICS IN 2015

Issue

Relevance

Impact on Eldorado

Economic/
Operations

Economic performance

Our ability to operate at a profit and return value to all our stakeholders is central
to our contribution to sustainable development.

Health, safety,
environment

Overall environmental
performance

Improving our environmental performance and reducing our footprint improves our
stakeholder interactions, credibility and reputation.

Waste management

Water

Health and safety

Biodiversity and reclamation

Energy use

Governance

Permits and licences

Emergency preparedness

Workforce skills development

Community

Social licence

Localization of goods
and services

Community investment

Effective management of tailings and waste reduces the environmental risks and
impacts associated with unplanned discharges.

Water management and recycling practices limit our reliance on water sources and
prevents the release of contaminated water.

Protecting the health and safety of employees, contractors and communities is our
biggest priority and a cornerstone of our company.

Identifying and protecting high value species and habitats, and returning landscapes
to conditions similar to pre-disturbance, is critical to our social licence to operate and
ability to advance new projects.

Reducing our energy use and associated greenhouse gas emissions is essential to
improve our efficiency, lower operating costs, improve air quality and reduce our
contribution to human-induced climate change.

Obtaining permits and licences in a timely fashion is critical for our project development
and continued ability to operate.

By planning for emergencies, we identify, prioritize and implement controls for potential
hazards at each of our sites, which help to minimize their impact while safeguarding our
employees and the environment.

Investing in training and education can empower our workforce, raise
productivity, boosts innovation, encourage broader investment and expand labour
market opportunities.

Government and community support for our activities remained our most material issue
in 2015, in order to maintain our social licence to operate.

Local employment and procurement provides significant direct and indirect benefits
in the regions where we operate.

Investing in our communities helps to improve the education, health and sustainable
development of local economies, both during and after mine life.

Eldorado Gold Year in Review 2015 23

OUR COMMUNITIES –
BUILDING OPPORTUNITIES

Everywhere we operate we aim to enrich
lives by developing lasting opportunities for
local communities. For the past 20 years, we
have built partnerships with our stakeholders
to improve infrastructure, health, education
and support projects that will endure beyond
the life of our operations.

24 Eldorado Gold Year in Review 2015

Children play in the streets of Efemçukuru village, near Efemçukuru mine, Turkey

UNDERSTANDING HOW WE CAN CONTRIBUTE

We have conducted studies to anticipate and manage the social and
economic impacts of our operations . Social Impact Assessments (SIAs)
represent a best-practice approach to identifying local stakeholders and
their social, cultural and economic characteristics . The purposes of an SIA
are to analyze how a mining project may affect communities and define
strategies to minimize negative impacts and maximize positive benefits . In
addition to the operations listed in Table 5, our Certej and Eastern Dragon
projects have also completed SIAs .

Donating clothes to local Buyi women near Jinfeng, China

TABLE 5: LOCAL IMPACT ASSESSMENT AND MANAGEMENT TOOLS

Formalized stakeholder mapping

Social impact assessment

Public disclosure
of impact assessments

Local community
development programs

Turkey

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Tanjianshan (1)

Stratoni, Skouries,
Olympias

In progress

(1) Tanjianshan is in a remote location, over 40 km from the nearest local community .

LOCAL COMMUNITY INVESTMENT

Our operations are located in diverse jurisdictions, each with their own

cultural and social characteristics . As a result, we have adopted site-

specific approaches to community investment that are appropriate to

the local customs, values, and needs, yet are based on the same core

principles of community inclusion and transparency in decision-making .

TABLE 6: PAYMENTS TO COMMUNITIES AND COMMUNITY INVESTMENTS

($ Millions)

Turkey

China

Greece

Romania

Payments to communities and community investments

0 .96

2 .33

2 .63

0 .11

Brazil

0 .02

Total

6.05

Eldorado Gold Year in Review 2015 25

Community Investment by Operation

Kişladağ, Turkey

Community relations personnel meet with stakeholders, local leaders,
village mukhtars, mayors and sub-governors on an ongoing basis .
There is a community interest group that meets every six months to
determine investment priorities .

2015 Highlights:

■ Maintaining potable water sources for nine villages

■ Maintaining a sewage system for five villages

■ Maintaining village halls for three villages

Girls play in Gümüşkol village near Kişladağ mine, Turkey

Efemçukuru, Turkey

Jinfeng, China

Each quarter, community relations personnel engage with local
communities through defined communication channels to collaboratively
evaluate, prioritize and select community projects to be completed .
Community investment projects are generally focused on health,
education, agriculture and infrastructure .

At the beginning of each year, the Four-Party Coalition (see case study
on page 27) creates a list of agreed-upon community development
projects . Benefits from the projects are aligned with stakeholder needs
and implementation progress is monitored throughout the year .

2015 Highlights:

■ Promoting education by providing vehicles and transportation for
44 students from local villages to and from their schools . In 2004,
there was only one high school graduate in Efemçukuru Village .
There are now 51 high school students and 7 university students from
Efemçukuru . School uniforms and stationary were also provided to
students in 2015, and general insurance costs for the local elementary
school are paid by the mine

■

Investing in infrastructure including roads, the sewage system,
a health clinic, an ambulance service, and weekly visits to local
villages by the company doctor

■ Continuing to support the Efemçukuru Agriculture Development

Cooperative, an initiative to promote modern agricultural techniques
to increase crop quality and yields

■ Career training program for 25 female college students

of Zhenfeng county

■ House-to-house footpath cementing in Bainitian sub-village

■ Sugar cane plantation

■ Sponsorship for four college entrants and 48 high school students

in the community

■ Ongoing Magazine-Lannigou Road upgrading

White Mountain, China

Water supply and road improvements were identified as top infrastructure
priorities by the communities near our White Mountain operations .

2015 Highlights:

■ Water supply improvements

■ Continued road upgrades – 938 metres of public road through the

community were paved by a local contractor

■ Education initiatives

■ Other public welfare investments, including the installation of solar

street lighting and opening a new medical clinic

Annual income per capita in Diaoshuihu village has nearly tripled since
2009, when Eldorado first acquired White Mountain .

26 Eldorado Gold Year in Review 2015

Tanjianshan, China

Our Tanjianshan operation does not have local communities nearby .
However, in 2015 we made donations to schools in the nearest community,
which is approximately 40 kilometres away .

Greece

At our operations and development projects in Greece, community
investment priorities are set after discussions with representatives of
the local villages . They are also based on the annual materiality analysis
Hellas Gold conducts as part of its Greek Corporate Social Responsibility
reporting . Most community investments are for ongoing needs and
infrastructure projects that are shared equally among community
stakeholders . We also hold monthly meetings with the heads of the villages
to discuss adjustments and evaluate the success of the infrastructure
investments to date .

2015 Highlights:

■ Continued to support the local health centre in Paleohori

■ Maintained local roads

■ Maintained local monuments

■ Donated to schools

Over the past four years, we have provided over $4 million to the
Municipality of Aristotle, where our Skouries and Olympias projects are
located, to fund improvements to street paving, lighting, sewage and other
municipal infrastructure . As our projects advance, we will continue to focus
on community initiatives that develop sustainable social capital such as
infrastructure development, educational initiatives and health care .

Cemented footpaths in local villages near Jinfeng, China

A Four-Party meeting in session at Jinfeng, China

SPOTLIGHT: THE FOUR-PARTY COALITION:
COLLABORATIVE COMMUNITY ENGAGEMENT
IN CHINA

At all of our locations, we collaboratively engage with local
communities to help their members build opportunities . In China,
where Eldorado is the largest foreign gold producer, our community
relations teams work closely with local stakeholders to better
understand their concerns and find solutions to the issues that matter
the most to them .

At two of our three mines in China, we have a Four-Party Coalition
model in place to promote positive community relations and
development . Set up in 2009 at White Mountain and in 2012 at
Jinfeng, the coalition is made up of representatives from our mines,
local government, host communities and academic institutions .
The group meets monthly to discuss community issues and to
identify and prioritize programs and activities that improve living
standards and build local capacity . These include infrastructure
development, improved access to education and health care, and
agricultural initiatives .

Both mines promote the development of local businesses by providing
them with opportunities to undertake contracts for the mines . For
example, at both locations, local community members have started
businesses that manufacture bricks from process tailings .

By involving local stakeholders in collective planning, decision-
making and implementation, the Four-Party Coalition represents a
best-practice approach to rural community development in China .
The Coalition has received praise from all levels of government in
China and has gained state-wide media attention .

Eldorado Gold Year in Review 2015 27

MANAGING our
ENVIRONMENTAL FOOTPRINT

We are committed to protecting our air, water and soil – resources that we
all share. This is why we carefully plan, design and build our operations to
limit their environmental footprint only to what is absolutely necessary. It is
why we implement new technologies to get the best efficiency out of the
resources and materials we use, strictly adhere to safety and environmental
regulations, and reclaim areas no longer needed for mining use. And it is
why we maintain systems to identify, manage, monitor and mitigate our
potential impacts from project inception through to closure.

28 Eldorado Gold Year in Review 2015

Efemçukuru vineyard, Turkey

We are focused on maintaining sound environmental practices
in all of our activities with the aim of developing and operating
our mines in a responsible manner . Across all our operations and
development sites, our actions are guided by the following principles
for environmental excellence:

■ Ensuring that the protection of human health and the natural

environment is accomplished at the same time as benefits are derived
from economic and social development

■ Providing necessary training on environmental matters to contribute
to greater environmental awareness in our operating jurisdictions

■ Protecting environment-related social and cultural assets

ENVIRONMENTAL MANAGEMENT SYSTEMS

We have achieved certification under the International Standards
Organization 14001 (ISO 14001) Environmental Management System
at several of our operations . The overall aim of ISO 14001 is to support
environmental protection and prevent pollution . ISO 14001 represents a
stringent guideline created to help organizations achieve environmental
goals, using a structured approach that enables consistent environmental
performance over time . Establishing environmental management systems
at our operations has involved:

■ Developing site-specific environmental policies

■ Establishing objectives and processes to achieve the

■ Making sure that all environmental legislation is strictly observed

policy commitments

and complied with

■ Keeping all concerned parties – including employees, suppliers,

contractors, and local communities – informed of technical subjects
and legal arrangements regarding the environment

■

Informing the public, relevant government institutions and
other stakeholders of our environmental performance in a fully
transparent manner

■ Continuously taking action as needed to improve performance

■ Demonstrating our performance through regular audits and reporting

Our two mines in Turkey (Efemçukuru and Kişladağ) as well as our
Halkidiki assets in Greece (Stratoni, Olympias and Skouries) are ISO 14001
certified . In 2015, Efemçukuru and Kişladağ passed interim external
audits to confirm their conformance with the ISO 14001 standard .

Our Chinese assets have developed environmental management
systems that are based on the ISO 14001 standard, but have not
sought certification . Certification under the ISO 14001 standard is an
exceptionally rigorous process, and our Chinese assets have instead
focused on achieving certification under the International Cyanide
Management Code, which in itself, requires a rigorous environmental
management system to be in place to achieve certification .

Every newly recruited employee, including the personnel of suppliers
and contractors, must complete environmental training, and all existing
employees are provided with ongoing environmental training to keep
their environmental knowledge up to date .

“We take our responsibility of preparing for and
managing the mineral extraction process very seriously.
We do all that we can to ensure that our activities have
the least possible impact on our environment.”

Paul Skayman
Chief Operating Officer

Eldorado Gold Year in Review 2015 29

The ICMC audit at Tanjianshan, China

Informing local community members about our cyanide
safety procedures near Jinfeng, China

SPOTLIGHT: RAISING THE BAR: ACHIEVING ICMC CERTIFICATION IN CHINA

Cyanide management is a core focus of our operating and monitoring
activities at our sites that use cyanide to separate gold from ore . We use
very dilute solutions, in the range of 0 .01-0 .05% sodium cyanide, and we
have strict protocols and procedures in place for cyanide storage, handling
and disposal .

5. Decommissioning. When our operations end, we have stringent

decommissioning plans in place to protect human health and wildlife .

6. Worker safety. From contractors to employees, we consider the
exposure risk to everyone on our sites, and work to minimize or
eliminate this risk .

To ensure that our operations are implementing global best practices in
cyanide management, we applied to become a Cyanide Code signatory
in 2012 . The International Cyanide Management Code is a voluntary
initiative for gold mining companies aimed at protecting human health and
preventing adverse environmental impacts . The Code provides guidance on
the safe management of cyanide before, during and after the gold recovery
process . Certification involves an independent audit of mining operations
to verify that sites’ policies and procedures meet the Code’s rigorous
standards . Audit results are made public to inform stakeholders of the
status of cyanide management practices at the certified operation .

Our flagship mine, Kişladağ in Turkey, was certified in 2013, and our Jinfeng
and Tanjianshan mines became the first two gold mines in China to be
certified, in 2015 . As part of certification, we developed and implemented
additional health, safety and environmental management systems and
procedures in order to fully comply with all nine of the Code’s principles:

1. Production. Our mines use suppliers who limit their workers’ and the

environment’s exposure to cyanide .

2. Transportation. Our cyanide transporters have rigorous emergency

response plans and cyanide management practices .

3. Handling and storage. Our unloading, storing and mixing facilities
comply with the Code, with effective ventilation and measures to
prevent cyanide from leaching .

4. Operations. Updated policies and emergency procedures that govern
sites’ management and control of cyanide help facilitate its safe use .

30 Eldorado Gold Year in Review 2015

7. Emergency response. In the event of an emergency, our sites are

prepared to protect human health and minimize environmental impacts
through training and investment in appropriate response equipment .

8. Training. Cyanide management is the responsibility of our employees
and contractors, and their competency, skill and awareness begin with
the training we provide them to safely operate with and respond to any
issues with cyanide .

9. Dialogue. We’ve successfully maintained communications with local

populations and communities, informing them about our plans and the
safety of our facilities .

Despite making significant improvements to cyanide management
procedures at our White Mountain mine in China, the site does not
currently comply with Cyanide Code Principles 1 and 2 because our cyanide
supplier and transporter are not yet signatories to the Code . Rather than
switch to a certified supplier, which would result in longer transport
times and increased hazards associated with moving dangerous materials
over significantly greater distances, our risk assessment resulted in our
decision to continue working with our current close-proximity supplier and
encourage its improved procedures and adoption of the Code over time .

For more information on the Cyanide Code,
please visit: www .cyanidecode .org .

ENVIRONMENTAL IMPACT ASSESSMENTS

Environmental Impact Assessments (EIAs) are conducted to evaluate the
potential impacts a proposed project may have on environmental resources
and the people who depend on them . As part of permitting during project
development, we comprehensively identify potential impacts and submit
mitigation plans to regulators . Once completed, EIAs are comprehensive
documents that include baseline studies to assess the current state of the
environment at the proposed mine site . They also identify potential effects
of our planned activities and outline steps to minimize any identified risks .
EIAs require extensive consultation with local communities, as well as
considerable input from technical and environmental experts .

ENVIRONMENTAL MONITORING

In line with international best practices, Eldorado regularly monitors air, soil
and water quality, as well as noise levels and energy use at our operations .
This not only confirms that we are operating within regulations but also
provides us with a benchmark upon which we can implement programs to
further minimize our use of water, energy and chemicals .

As part of our commitment to transparency and accountability, we
helped establish Independent Environmental Committees at Kişladağ and
Efemçukuru in Turkey, and at Stratoni, Olympias and Skouries in Greece .
These external groups include academics, scientists and representatives
from the local authorities . Committee members collect environmental
data from our sites and submit it to a third-party laboratory for testing,
to ensure independence and accuracy . This approach has helped us develop
our credibility by providing our stakeholders with third-party information
they can trust . To further promote transparency, we are close to finalizing
an online database where all of the environmental data from Stratoni,
Skouries and Olympias will be publicly available in 2016 .

ENVIRONMENTAL FINES AND PENALTIES

We incurred one fine in 2015 associated with an environmental non-
compliance in 2014 . A $444 fine was issued to our Jinfeng operation for a
permit non-compliance related to effluent discharge that occurred the prior
year . In Q1 2014, the site reported total suspended solids 0 .9 times above
standard, and in Q3 2014 ammonia nitrate was 1 .2 times above standard .
No fines or penalties related to an environmental non-compliance in 2015
were received .

In early 2016, the Ministry of Environment and Energy in Greece issued two
decisions imposing fines to Hellas Gold regarding alleged environmental
non-compliances that occurred between 2012 and 2014 at Olympias
and Stratoni . Site inspections were carried out during this period by
the environmental inspectors, and in response to their findings, Hellas
Gold prepared and submitted detailed answers . Despite the responses,
the Ministry imposed the fines totaling €1 .7 million, and Hellas Gold
has filed respective appeals for the cancellation of the fines before the
Administrative Court in Athens .

Flowers blooming on the reclaimed tailings area at Olympias, Greece

SPOTLIGHT: HELPING CONTRACTORS MANAGE
THEIR ENVIRONMENTAL PRACTICES IN GREECE

Our Hellas Gold Procurement Department has been working to
incorporate environmental practices into supply chain planning,
in direct partnership with the company’s Environment Division and
Internal Environmental Management .

Hellas Gold has developed a Contractor Environmental Management
Handbook that is included in all tender notices . It forms an integral
part of the contracts awarded at our mining and project facilities . The
Handbook’s primary objective is to facilitate environmental protection
and prevent environmental degradation . Contractors are required to
train their staff about environmental issues at regular intervals, and
our Handbook forms part of their training materials .

“Environmental monitoring is just like other
tracking systems – such as weather forecasts
and traffic reports. It helps us to understand
our natural environment so we can make
better decisions on how we manage
and protect it.”

Doug Jones
Senior VP of Operations

Eldorado Gold Year in Review 2015 31

MANAGING our INPUTS

Water and energy are fundamental mining inputs, and we
recognize the many economic, environmental and social
benefits to improving efficiency when using these resources.
In this section, we summarize our management approach and
2015 performance related to water and energy use.

32 Eldorado Gold Year in Review 2015

Water treatment plant at Kişladağ, Turkey

WATER USE

Availability and access to water is critical for our mining operations .
We use water for mineral processing, dust suppression, slurry transport,
and personal consumption; therefore, responsibly managing water is
essential to our sustainable development over the long term . While we
do not set quantitative targets regarding water consumption, our water
use is strictly controlled across all of our sites, and each operation has
implemented practices that reduce, reuse and recycle water .

Monitoring Water Resources

Across our operations, we withdrew nearly 12 million cubic metres of
water during the mining process in 2015 . This includes water removed
from our mines following precipitation as well as groundwater that must
be continuously pumped out from our underground mines . Overall, we
experienced an 8% increase in total water withdrawals in 2015 compared
to 2014 volumes, largely attributable to mine dewatering .

WATER FLOW THROUGH A MINE SITE

Water use is continuously monitored using flow meters, and we regularly
take water quality samples from groundwater and surface water sources
within and around our sites . We compare water quality results with the
limit values set out in pertinent regulations and our operating permits,
and we share these detailed results with regulators and government,
typically on a quarterly basis .

Water availability varies by site . For operations that have limited access
to water, such as Kişladağ and Tanjianshan, we have implemented
extensive water conservation and recycling programs to reduce our
need to withdraw water . At Jinfeng, where precipitation is higher, we
capture rainwater run-off from our land and buildings, which we then
treat and use in production . All water that comes into contact with our
sites is treated and tested before being used or discharged back into the
environment (e .g . rivers, lakes and reinjection into groundwater) .

WATER INPUTS
A Precipitation (rainfall and snow)
B Surface water (lakes, rivers, oceans)
C Ground water (wells, mine dewatering)
D Wastewater from another organization
E Municipal water

WATER USE
F Potable water, fire suppression
G Drilling
H Dust suppression
I Processing (ore preparation, solids/water
preparation, mineral extraction)
J Leach pad
K Tailings slurry

WATER TREATMENT
L Wastewater treatment ponds
M Water treatment plant

WATER OUTPUTS
N Releases to aquatic
environment (treated water)
O Water diversion of
non-contaminated water
P Evaporation

B & C

Eldorado Gold Year in Review 2015 33

TABLE 7: TOTAL WATER WITHDRAWAL

Turkey

China

Greece

2015
Total

2014
Total (1)(2)

Kişladağ

Efemçukuru

Jinfeng

White
Mountain

Tanjianshan

Stratoni,
Skouries,
Olympias (3)

836

3 .0

2,041

656

2,697

2,613

713

944

713

7 .1

384

2,425

16 .2

966

12 .4

657

6 .7

6,250

8,743

8,232

384

–

6,250

11,850

10,932

(Thousands m3)
Surface water
(rivers, lakes, and oceans)

Ground water
(wells, underground mine water)

Rainwater collected/stored

Wastewater from another
organization

Municipal water

Total

Water efficiency (m3/oz)

(1) No data was collected on wastewater used from other organizations in 2014 . As a result, total water withdrawals may have been slightly higher than presented in the total for 2014 .

(2) A correction was made to White Mountain’s reported groundwater withdrawals in 2014, from 226,000 m3 to 1,159,000 m3 . The previously stated value was total production water used by the site’s

processing plant in 2014 .

(3) Water efficiency was not calculated for our Greece assets . Gold recovered at Olympias is from tailings retreatment, and does not offer a reasonable basis for comparability .

Our reported water efficiency is not a true reflection of site water use or

data collection and reporting, we are investigating new data sources in

its correlation to production . In reality, due to the need to dewater our

order to improve our understanding of water balances and to calculate our

mines, we withdraw far more water than we use and consequently our

water efficiency as a relationship of water used in production per ounce of

actual water efficiency is much higher . As we continue to improve our

gold produced .

TABLE 8: VOLUME OF WATER PROCESSED BY WATER TREATMENT PLANTS

Turkey

(Thousands m3)

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

2015 Total

Tanjianshan

Stratoni, Skouries,
Olympias

Volume of water processed

29,141

713

2,127

1,075

941

2,204

36,201

Our site water treatment plants operate continuously year-round to reduce
our reliance on external water sources . Kişladağ uses a leach pad to extract
gold from ore, treating and circulating approximately 14,000 gallons of

water per minute through a closed system, with minor losses attributable

to evaporation . Approximately 35 times more water is recycled and reused

by the site compared to new water withdrawals .

Other sites, like Tanjianshan, do not allow any water to be openly

discharged back into the environment . All water is reused through process

plants, including grey water from sewage .

34 Eldorado Gold Year in Review 2015

ENERGY USE

Energy use at our operations is a significant operating cost, and related
air emissions are one of our major environmental impacts .

In 2015, international stakeholders and governments continued to
express increasing concern about the risks and potential impacts
associated with climate change . The general trend across most
jurisdictions, including where we operate, is emphasis on regulation that
may penalize heavy greenhouse gas (GHG) emitters . As a result of both
the upfront costs associated with energy use at our operations and the
potential for our operating jurisdictions to impose GHG emission levies,
improving the energy efficiency of our operations is important for us .

In some of our operating jurisdictions, energy efficiency and GHG
emission reduction goals are already represented in regulations . For
example, in Turkey each year, an energy usage declaration is made to the
government, and every four years, an energy-efficiency study must be
performed and submitted to the government . At Jinfeng, in accordance
with the government energy reduction policy issued by the National
Development and Reform Commission in 2011, a five-year target was set
to reduce energy consumption by 2,100 tons of standard coal between
2011 and 2015 . During this time, Jinfeng reduced energy consumption
by 3,325 tonnes of standard coal, exceeding performance by 58% .

See Table 10 below for further information on the energy intensity
performance achieved at our gold mining operations .

TABLE 9: ENERGY CONSUMPTION

Turkey

(GJ)

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Company Total

Tanjianshan

Stratoni, Skouries,
Olympias

Purchased electricity

330,042

143,201

528,000

238,140

320,000

190,000

1,749,383

Liquefied petroleum gas

715(1)

Diesel for mobile equipment

995,663

66,615

91,500

Gasoline for mobile
equipment

Diesel for generators

16,466

92,749

2,800

2015 Totals

2014 Totals

1,342,886

209,816

619,501

333,693

1,329,114

197,062

658,195

362,753

66,660

5,175

16,230

408,065

430,623

54,543

18,271

24,084

286,898

267,059

719

1,367,730

26,247

56,780

3,200,859

3,244,806

(1) Liquefied Petroleum Gas (LPG) was not used in 2015 . The amount reported reflects Liquefied Natural Gas (LNG) used at the Kişladağ site .

Between 2015 and 2014, we reduced company-wide energy
consumption by 1% . However, with reduced gold production our overall
energy efficiency actually decreased to 4 .53 GJ/oz . With the exception of
Jinfeng, we saw lower grades of material across each of our sites, which
means that we mined and processed more ore to maintain production
levels . Kişladağ experienced the biggest drop in ore grade, and saw
the largest increase in total material moved per ounce . Jinfeng’s gold
production was lower, so even though the site used less energy in 2015,
there was a net increase in energy intensity .

Haulage fleet vehicle diesel use and electricity consumption are the
company’s primary energy sources . Kişladağ remains our largest energy
user, with the site’s vehicle fleet consuming more diesel than the rest of
the company combined . With a deepening pit, Kişladağ’s haul trucks are
having to travel further each year to transfer material to our crushing
system and the waste dump . Jinfeng’s mill is the largest amongst
Eldorado’s operations, with an annual capacity of 1 .5 million tonnes of
ore, and is therefore our largest electricity user . Tanjianshan and White
Mountain have the second and third largest mills respectively, capable
of processing 1 .1 million and 800 thousand tonnes of ore . Kişladağ’s
crushing circuit is the final major energy user at our sites .

TABLE 10: ENERGY INTENSITY

Turkey

(GJ/oz Au Produced)(1)

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Company Total(1)

Stratoni, Skouries,

Tanjianshan

Olympias (2)

2015

2014

(1) Weighted average .

4 .77

4 .27

2 .09

1 .99

4 .14

3 .91

4 .27

4 .25

4 .18

4 .00

4 .12

3 .86

(2) Gold is not produced at Stratoni and our Skouries and Olympias gold assets are in development .

Eldorado Gold Year in Review 2015 35

MANAGING our OUTPUTS

The activities and outputs of our activities can have a significant and
lasting impact on the natural environment surrounding each of our
mines. Waste management, protecting biodiversity and reclamation
are important activities at our mines and were highlighted in our
2015 materiality analysis as important environmental aspects.
In this section, we summarize our management approach and 2015
performance, and highlight some example case studies of broader
initiatives being undertaken at our sites to limit any negative
impacts from our activities.

36 Eldorado Gold Year in Review 2015

Tanjianshan roaster complex at dawn, China

WASTE MANAGEMENT

Different forms of waste are generated through our mining activities,
including overburden, waste rock, tailings, slag, mine water, sludge
and refuse . Across all our sites, waste rock is the primary form of waste
generated, which has been extracted from the mining areas in order to
access ore . Waste rock contains no economically valuable material .

Waste generated at our operations is sorted and classified as hazardous
or non-hazardous waste, in line with regulations . All types of waste,
including hazardous waste, are stored and disposed of with consideration
for their potential environmental impacts . Management programs
are developed and implemented on a site-by-site basis, depending
on the characteristics of the waste being generated . For example, at
Efemçukuru, where waste rock has acid rock drainage potential, storage
areas are lined and seepage is collected and treated before disposal .
Where waste rock does not pose any toxicity risk, such as at White
Mountain, it is partially reused for mine backfill .

Waste management activities and objectives represent significant
elements of our ISO 14001 environmental management systems . As per
local regulations in each of our operating jurisdictions, all disposed waste
types and quantities are recorded in legal disposal documents that are
periodically submitted to host governments . We conduct due diligence
on our waste disposal contractors, and periodically visit disposal and
recycling contractors to evaluate their environmental practices .

DUST CONTROL AND MANAGEMENT

The creation of dust is one of our impacts that we manage closely and
actively . Major sources of dust emissions include:

■ Blasting operations in the open pit area

■ Loading, haulage and offloading of ore and waste rock

■ Operation of crushing units

■ Traffic on roads that are in general use

Where our operations have the potential to create significant dust, we
ensure that water tank trucks continuously perform on-site watering
activities to suppress dust . In dry seasons, materials are dampened
before we conduct blasting operations . Water spraying and closed dust
collecting systems are provided around our operations, and particularly at
the primary crusher and the fine ore stockpile areas . Water sprayers are
also used on conveyor belts at certain intervals . With a view to measuring
the results of these mitigation activities, regular dust measurements are
taken around our operations and in neighbouring villages on daily and
monthly bases .

SPOTLIGHT: MANAGING OUR TAILINGS

Tailings management is a core activity at our operations and is
embedded in our daily monitoring and management practices .

Tailings are the material that remains after the mineral extraction
process is completed, and are primarily a mixture of ground rock
and water . Tailings are typically stored in a specially designed tailings
storage facility and can contain trace amounts of chemicals from
the extraction process, making them acidic or alkaline . Their safe
management and disposal is a priority for us in order to protect the
nearby environment and communities .

We manage our tailings facilities consistent with robust government
regulations, accepted international standards and best practices . Our
tailings facilities are all site-specific and have been carefully designed
and constructed by specialized engineering consulting firms, in line
with regulations, in order to minimize environmental risks . At each of
our facilities we have:

■ Conducted extensive studies to locate the facility away from

sensitive environmental areas such as lakes, streams, wetlands and
key biodiversity zones

■ Designed the extraction process so that tailings contain as few

impurities as possible and are environmentally stable

■ Constructed the facilities to be able to withstand extreme weather

and seismic events

■

Installed upstream and downstream monitoring facilities to
measure water quality

We also have comprehensive tailings management systems in place
at each of our operations . These include:

■ Plans and procedures that identify clear roles, responsibilities
and communication channels for personnel responsible for
tailings management

■ Ongoing training of personnel responsible for

tailings management

■ Operational controls such as real-time monitoring of tailings

facilities, routine inspections and risk assessments, and regular
maintenance programs

■ Emergency preparedness and response plans,

■ Periodic review of tailings facility design, construction, operation
and closure plans to facilitate ongoing relevance and alignment
with current best practices

■ Oversight from corporate head office to verify completion of any
updates or corrective actions and to identify opportunities for
shared learning across company operations

As part of our commitment to continuous improvement of our tailings
management practices, our site teams conduct daily monitoring of the
tailings facilities, and our were recently audited by an internationally
recognized expert in tailings management and dam safety . Our most
recent external audit did not identify any major deficiencies in our
tailings management practices .

We will look to strengthen our management approach by
further aligning our operating practices with MAC’s TSM Tailings
Management Protocol . This is based on a Plan, Do, Check, Act
system of continuous improvement .

Eldorado Gold Year in Review 2015 37

BIODIVERSITY
and RECLAMATION

We implement programs to preserve biodiversity
at and near our operations. These programs
have been developed through engagement with
experts and local communities, and are focused
on implementing conservation strategies consistent
with the mitigation hierarchy (avoidance,
minimization, rehabilitation and/or offset).

BIODIVERSITY

There are areas of rich biodiversity near several of our operations and
development projects . The identification and classification of protected
areas vary by jurisdiction . As a result, jurisdiction-specific and
international protected areas are taken into account during baseline
assessment studies that feed into the EIA . Baseline assessments of
flora and fauna are conducted to identify all species present, as well as
their population and habitat characteristics . As a condition of receiving
the necessary permits to proceed with building a project, we must
outline impact avoidance or remediation plans that are specific to each
project site . Our biodiversity management plans at each site represent
the criteria by which state authorities evaluate our performance .
Biodiversity objectives and management plans are critical components
of our site-specific environmental management systems .

In 2015, an additional in-depth study of biodiversity impacts was
completed at our Kişladağ operation in partnership with Hacettepe
University . Professionals from the University conducted similar studies
in the region of the mine and were retained to update our evaluation
of biodiversity impacts near Kişladağ . A report was delivered in
January 2016, and no perceptible impacts on biodiversity outside of
the direct mining area were detected .

RECLAMATION

Our approach to reclamation is centred on:

■ Designing mine closure and reclamation plans, before we even

begin mine construction

■ Ensuring sufficient funds are allocated to carry out our

reclamation obligations

■ Continuously reclaiming land during operation

■ Engaging with all relevant stakeholders to understand land-use

objectives for reclaimed land

Before we begin production at our operations, we strip vegetal soil
(topsoil and subsurface soil) from the areas where the ore will be
extracted or facilities will be erected . This stripped vegetal soil is stored
in designated areas and it is used later in rehabilitation activities .

In areas where we have completed mining activities, rehabilitation
activities are conducted in a progressive manner over several years .
We develop rehabilitation plans based on research conducted as part
of baseline assessments . By starting rehabilitation efforts during the
operating phase of the mine, we can improve the visual appearance
of landscaping, minimize dust and help expedite the completion of
mine closure .

Flowers at Jinfeng, China

■

In 2015, 23 hectares of land were reclaimed to the
agreed end use at our operations.

38 Eldorado Gold Year in Review 2015

PLANNING NOW FOR MINE CLOSURE

Our stakeholders have made it clear that mine closure is a critical component
of the mining life cycle . Mine closure planning for each of our operations
begins during the project development stage, with extensive preparation
going into the site’s EIA submission document . Each EIA includes a fully
detailed mine closure plan to be used in the event of a planned closure,
a sudden or unplanned closure, or a temporary closure (suspension) . These
plans begin as a concept and evolve throughout the mine’s life, through
regular and critical reviews conducted both internally and externally .

Using the Mining Association of Canada’s TSM Mine Closure Framework as a
guide, we consider the following areas while planning for a future mine closure:

1. Natural Environment

We strive to return disturbed areas to a stable state for post-mining land
use . This includes removing all equipment, closing pits and shafts, treating
all water sources as required, and revegetating waste rock facilities, tailings
dams and leach pads . Wherever possible, we aim to conduct concurrent
revegetation of land during the operating phase .

2. Socioeconomic Impacts

We work with local communities and host governments to implement
and support strategies that mitigate impacts associated with the mine’s
closure . This includes local capacity-building though economic diversification
programs, education and skills development for both the local communities
and our employees, and the development of subcommittees to help manage
the reclamation and closure process .

3. Health and Safety

We take into account numerous health and safety considerations during both
operations and the closure process . Many of our mine sites use hazardous
substances, such as diesel and toxic heavy metals, or produce hazardous
wastes that must be controlled to prevent exposure to the environment and
public . Further, there are often vertical or near-vertical faces in the open pits
following operation . Our Mine Closure Plans are designed to remove health
and safety risks after a mine’s closure .

4. Financial Obligations

The aim of thorough closure planning and cost estimating is to ensure that
investment, development and operating decisions take into account any
potential future financial impacts . Working with our lead closure consultants,
The Mines Group, we annually review the total estimated cost for closing,
decommissioning, demolishing, rehabilitating and post-closure monitoring
at each of our projects while complying with industry best practices and
all applicable laws . Consistent with Canadian securities requirements, the
accounting obligations are defined by the Financial Accounting Standards
Board (FAS 143) and adhere to all legal obligations and compliance
requirements within each of our operating jurisdictions . Close collaboration
between the finance and operations teams allow for annual reports on
adjustments to this “Asset Retirement Obligation .”

Reclaimed arable land at Jinfeng, China

SPOTLIGHT: RECLAMATION PLANNING
AT JINFENG

In order to improve the living standards of local people by increasing
the quantity of arable land surrounding our Jinfeng operation, we
have been working with the state and county on Eldorado-funded
plans to implement a land reclamation project . At a former rock
dump, we are planting shrubs in slope areas and transforming flat
surfaces into fertile farmland . Over two years, the land is cultivated
so that the soil has enough phosphorus, available potassium and
total nitrogen to support crop growth . For a region that has very
little flat land, this project will result in approximately 324 hectares of
arable land for farming, which will be handed over to the government
upon completion .

Fruit trees grow on rehabilitated land at Jinfeng, China

Eldorado Gold Year in Review 2015 39

OUR PEOPLE

Our success is a result of the dedicated employees and contractors
who work for us and our global subsidiaries. It is our people’s
motivation and commitment to excellence that drives our
performance and helps us achieve our corporate objectives.
As such, we aim to ensure that all of our employees and
contractors are working in safe and effective environments.

40 Eldorado Gold Year in Review 2015

Employees on site at Efemçukuru, Turkey

Fostering an Effective Work Environment

■ Undertaking transparent employment practices

■ Providing professional training to facilitate lifelong learning

■ Emphasizing in-house staff development based on professional skills

and personal abilities, and promoting staff internally

OUR WORKFORCE

We aim to hire workers from nearby communities whenever possible .
At the operation and project level, 99% of employees and contractors are
nationals . We believe in training local employees for senior roles . Turkish,
Greek, Brazilian, Chinese and Romanian employees form part of the
management teams working in their respective home countries, alongside
a small number of expatriate employees . Please see Tables 11 and 12
for a detailed breakdown of our employee and contractor numbers .

In accordance with the relevant law and regulations, we uphold strong
and fair labour practices . We believe in equal opportunities and base our
hiring practices on skills and experience . We strive to ensure that male
and female employees are paid equally for equivalent jobs . As outlined
in our Code of Business Conduct and Ethics, everyone at Eldorado is
expected to maintain a safe and healthy work environment, and promote
a workplace that is free from discrimination and harassment on any basis,
including race, colour, religion, gender, age, national origin, disability or
sexual orientation .

We aim to maintain the best possible relations with our workforce .
Our human resources approach is based on a series of principles and
values that include:

■ Employing people from local communities

■ Promoting a culture that builds a common identity for staff

in all workplaces

TABLE 11: OUR EMPLOYEES

Total Employees

Percentage Female

Percentage Nationals (1)

Percentage from
Local Communities (2)

Kişladağ

Efemçukuru

Turkey – Other

Jinfeng

Tanjianshan

White Mountain

Eastern Dragon

China – Other

Halkidiki assets
(Olympias, Skouries, Stratoni)

Perama Hill site & Sapes office

Greece – Other

Tocantinzinho

Brazil – Other(3)

Romania
(Certej site & Deva office)

Canada

Netherlands

Barbados

Total

785

433

826

419

620

1,011

221

4,571

25%

13%

15%

16%

13%

48%

40%

39%

11%

26%

15%

36%

40%

67%

12%

99%

98%

99%

100%

91%

99%

100%

98%

100%

99%

76%

20%

100%

99%

82%

48%

N/A(4)

19%

78%

84%

77%

87%

10%

2%(5)

11%

100%

62%

100%

65%

(1) We define “nationals” as citizens of the host country .

(4)

Information not available .

(2) We define “local” as national employees from the closest neighbouring villages and

(5) “Local employee” refers to residents of Halkidiki region only .

communities to our sites .

(3) The numbers above are for Eldorado’s Belo Horizonte office and do not include Vila Nova,

which went on care and maintenance in early 2015 .

Eldorado Gold Year in Review 2015 41

TABLE 12: OUR CONTRACTORS (1)

Total

Percentage female

Percentage nationals

Percentage from local communities

Turkey

Kişladağ

Efemçukuru

Jinfeng

473

100%

60%

324

100%

35%

205

15%

100%

25%

China

White
Mountain

329

100%

70%

Greece

Tanjianshan

Stratoni, Skouries,
Olympias

219

10%

100%

68%

1,005

100%

61%

(1) Contractor numbers fluctuate over the course of a given year . The data displayed in Table 12 represents the average of the number of contractors as at January 31, 2016 and December 31, 2015 .

The contractor numbers above do not include contractors we hire elsewhere in Greece, Brazil, Romania and Canada .

TABLE 13: NEW EMPLOYEE HIRES

Total number of new hires

Percentage new hires female

Percentage new hires nationals

Percentage new hires from
local communities

Turkey

China

White

Kişladağ

Efemçukuru

Jinfeng

Mountain (1)

Tanjianshan

99%

74%

0 .2%

100%

48%

56%

100%

56%

100

100%

30%

55%

100%

55%

Greece

Stratoni, Skouries,
Olympias

12%

100%

41%

(1) 70 temporary workers were hired at White Mountain as boiler workers in 2015 .

TABLE 14: EMPLOYEE TURNOVER (VOLUNTARY & INVOLUNTARY)

Male turnover

Female turnover

Turkey

Kişladağ

Efemçukuru

Jinfeng

8 .5%

0 .6%

China

White
Mountain

2 .4%

0 .3%

Greece

Tanjianshan

Stratoni, Skouries,
Olympias

8 .5%

0 .6%

2 .6%

11 .6%

TABLE 15: EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS

Percentage employees covered by
collective bargaining agreements

Turkey

Kişladağ

Efemçukuru

71%

69%

Jinfeng

100%

China

White
Mountain

Greece

Tanjianshan

Stratoni, Skouries,
Olympias

100%

0%(1)

66%

(1) Union membership at Tanjianshan is voluntary, though most hourly workers use individual Bargaining Agreements .

42 Eldorado Gold Year in Review 2015

Monitoring the floatation process at Olympias, Greece

Sample testing at Efemçukuru, Turkey

DEVELOPING OUR PEOPLE

Training and Up-Skilling

Developing workforce capacity and conducting regular training across
all of our sites is an ongoing priority . The majority of our workforce
comes from local communities and regions, and often have no prior
mining experience . We see the social and economic benefits of fostering
a local workforce and economy, and we invest in relevant training and
development to improve the productivity and safety of our employees .
We are proud of the low turnover rates across each of our sites,
as the retention of personnel is a great indicator of both our company
performance and employee satisfaction .

All new recruits and interns at our facilities undergo training on safety,
accident prevention, environmental issues and company procedures,
among other topics . Ongoing training priorities are defined based on
job requirements, performance evaluation notes and legal requirements,
and consist of occupational, leadership, technical, and safety and
environment training . Even at sites with a long mining history and
well-established workforce, such as Tanjianshan, we see the benefits
of training to improve employee capacity, productivity, and health and
safety performance .

TABLE 16: EMPLOYEE TRAINING HOURS

Average number of
hours training per employee

Turkey

Kişladağ

Efemçukuru

Jinfeng

China

White
Mountain

Greece

Tanjianshan

Stratoni, Skouries,
Olympias

Eldorado Gold Year in Review 2015 43

KEEPING our PEOPLE SAFE

Safety is a core value at Eldorado and is fully ingrained in
the way we do business. From design criteria through to
operations, we strive to reduce risk through elimination,
substitution, engineering controls, procedures, training and
protective equipment. Our managers are expected to lead
by example, and prioritize and implement safe attitudes
and initiatives to promote a culture of safety.

44 Eldorado Gold Year in Review 2015

Employees underground at Efemçukuru, Turkey

CREATING A SAFETY CULTURE

Our approach to health and safety is a balance between equipping
individuals with the skills to recognize hazards and the values to make
the right decisions, and ensuring that strong policies, procedures and
systems are in place to safeguard workplaces . We continue to strengthen
our safety culture by taking a holistic view towards safety leadership that
incorporates psychological aspects (how our people feel), behavioural
aspects (what our people do) and situational aspects (our policies,
procedures and systems) .

Through a global commitment to leadership and training, identification
of risks, management and mitigation of risks, being prepared for
incidents, and learning from incidents, we are succeeding at making
our workplaces safer .

Core principles of our health and safety approach include:

■ That safe work practices and productivity go hand in hand

■ Risk identification and control

■ Education and training

■ Empathy in leadership

■ Continuous improvement through the review

of safety performance

HEALTH AND SAFETY MANAGEMENT SYSTEMS

Each of our operations has established a site-specific Occupational Health
and Safety policy that is aligned with our corporate policy, to monitor and
report lead and lag indicators . We have found site-specific approaches to
be particularly successful as they account for cultural attitudes towards
safety and can be targeted at areas of priority . Site-specific health and
safety targets are defined annually as part of the management review
element of our health and safety management systems .

Weekly health and safety incident reports are prepared by each
site and region outlining weekly, month-to-date and year-to-date
statistics, including:

■ Near misses – an event which, in different circumstances, could have
resulted in harm to people, damage to property or loss to a process

■ First aid incidents – care is provided to a person who is injured or

who suddenly becomes ill (e .g . disinfecting a cut, applying a bandage,
helping someone who is choking, etc .)

■ Medically treated injuries – an injury or disease that resulted in a

certain level of treatment (not first aid treatment) given by a physician
or other medical personnel (e .g . prescription medication, sutures,
therapeutic treatment)

■ Restricted work injuries – an injury or disease that resulted in the
restriction of work or motion, including temporary or permanent
transfer to another job

■ Lost-Time Injuries – a work-related injury or disease that resulted in

time lost from work of at least one day or shift, a permanent disability,
or a fatality

■ Fatalities – death resulting from an accident

Health and safety reporting is reviewed during weekly operational
calls between site General Managers and Eldorado’s Corporate office,
including the Chief Operating Officer and Senior Vice President of
Operations . All reported incidents are discussed, and the results of any
investigations are provided during these calls .

To complement our internal systems, we use the internationally
recognized OHSAS 18001 Occupational Health and Safety management
framework to help us better identify and manage safety risks and
improve our safety performance .

Our Kişladağ and Efemçukuru mines in Turkey and our Halkidiki assets
in Greece are certified to OHSAS 18001 . Our Chinese operations have
established Occupational Health and Safety management systems that
are consistent with OHSAS 18001 . However, they have not yet sought
certification, for the same reasons that they have not sought certification
for their environmental management systems: the decision was made to
focus on achieving and maintaining certification under the International
Cyanide Management Code (ICMC), a component of which includes an
assessment of health and safety management practices . We have now
achieved ICMC certification at our Jinfeng and Tanjianshan operations,
with our White Mountain operation passing all operational aspects of the
ICMC compliance audit .

Eldorado Gold Year in Review 2015 45

Ensuring Contractor Safety

We communicate our minimum expectations regarding contractor health
and safety practices within all tender notices and project assignments
at Eldorado’s mining facilities . They form an integral part of the contracts
Eldorado signs with each consultant . The objective of these rules is to
ensure that contractors carry out work safely and in-line with Eldorado’s
standards; prevent accidents among their staff, our staff or third parties;
and avoid damage or harm to facilities and equipment belonging to the
contractor, Eldorado or third parties .

Tagging in at Efemçukuru, Turkey

SAFETY PERFORMANCE

We accomplished very strong health and safety performance in

2015, with a 25% reduction to our Lost-Time Injury Frequency Rate

compared to the prior year – the fourth consecutive year of reduction .

Unfortunately, we were deeply saddened to have had a fatal accident

in February 2016 at our Stratoni mine in Greece . Employee health and

safety is our highest priority and we continue to review and reinforce our

safety practices across each of our sites and projects to prevent similar

incidents from occurring .

■ We are constantly modernizing infrastructure, procedures

and equipment

■ We inform, train, listen to, mobilize and actively engage with
all employees about Occupational Health and Safety issues

■ We prevent accidents by carrying out constant checks, assessing
occupational risks and immediately taking suitable measures

■ We strive for our policy to be consistently applied in every

partnership we build

TABLE 17: FATALITIES, LTIFR AND TRIFR PER MILLION HOURS WORKED (1)

Turkey

China

Greece

2015
Total

2014
Total

Kişladağ

Efemçukuru

Jinfeng

White
Mountain

Tanjianshan (1)

0 .7

5 .49

14 .21

1 .79

0 .4

1 .35

0 .51

Stratoni,
Skouries,
Olympias

2 .1

6 .97

1 .03

4 .59

1 .38(4)

6 .68

Fatalities(2)

LTIFR

TRIFR(3)

(1) Data by gender is not available .

(2) Reported performance is for the 2015 calendar year; however, we are deeply saddened to report a fatality on February 29, 2016 at our Stratoni mine in Greece .

(3) TRIs include medically treated injuries, restricted work injuries, and lost-time injuries .

(4) An adjustment to the reported LTIFR in 2014 occurred following updated site data for total working hours, falling from 1 .44 to 1 .38 .

46 Eldorado Gold Year in Review 2015

EMERGENCY RESPONSE

Emergency response programs are in place at all of our operations .

Our emergency response teams are made up of employees who have

received additional training in emergency protocols, procedures and

equipment . The emergency response programs include extensive emergency

drills and emergency training, such as mine rescue drills, fire drills, CPR and

first aid training, and training in the use of hazardous materials suits and

other safety equipment . Our emergency response teams maintain close

working relationships with community-based emergency responders .

SAFETY BEYOND THE MINE

Making a safety commitment board at Tanjianshan, China

Our commitment to health and safety does not end with our employees

and contractors . We also consider local stakeholders’ health and safety in

all of our activities . To promote health and safety in the communities near

our operations, all of our sites have informal or formal mutual aid assistance

programs in which Eldorado’s emergency response teams help in community

emergencies, if requested . At our Chinese mines, clinics offer both Western

and traditional Chinese medicine . Employees and community members

may choose between the two when seeking treatment . Health programs

at our sites provide basic medical treatments and services for employees,

contractors, including immunizations and medical checkups .

SPOTLIGHT: IMPROVING WORKER
SAFETY AT TANJIANSHAN: HANDS UP
FOR SAFETY INITIATIVE

In 2013 our Tanjianshan mine noticed a number of incidents related
to preventable hand injuries . To raise awareness of the hazards and
to remind employees of the importance of their hands, the Hands Up
for Safety initiative was introduced . Employees participated in games
and exercises that provided a fun yet powerful demonstration of
the difficulties of conducting simple tasks while dealing with a hand
injury . Hand safety statistics and safety practices were also discussed,
and employees signed pledges of their commitment to safety .

After the Hands Up for Safety group session, hand injuries at
Tanjianshan decreased from 64% of all site injuries in 2013 to 31%
of all site injuries in 2014 . In 2015, there was only one minor hand
injury at Tanjianshan, and it did not result in a lost-time injury . In fact,
Tanjianshan has not had a lost-time injury for over two years .

Welding at Tanjianshan, China

Eldorado Gold Year in Review 2015 47

G4–3

G4–4

G4–5

G4–6

G4–7

G4–8

G4–9

G4–10

G4–11

G4–12

G4–13

G4–14

G4–15

GRI G4 ‘CORE’ CONTENT INDEX

General Standard
Disclosures

Description of Indicator

Page Number, Link, or Location of Information

STRATEGY AND ANALYSIS

G4–1

Letter from CEO

ORGANIZATIONAL PROFILE

Organization name

4–5

Primary brands, products, and services

1, 10, 11, 53

Location of headquarters

Number of countries where the organization
has significant operations

Nature of ownership

Markets served

Scale of the organization: employees,
operations, net revenues, production

Employee numbers
(by region, type and gender)

1, 53

1, 3

3, 10, 11, 15–17

1, 3, 10–11

41–42

Percentage of employees covered by collective
bargaining agreements

Organization’s supply chain

Significant changes during
the reporting period

Precautionary principle

Externally developed economic,
environmental and social charters, principles,
or other initiatives to which the organization
subscribes or which it endorses

14–17

10–11, 25, 31 .
We recognize there are environmental and social impacts from our operations .
Eldorado Gold is committed to using a precautionary approach throughout the
lives of our mines, and before any activities commence we assess the potential
environmental and social impacts, and evaluate how to avoid, control, or
mitigate these, even when impacts are not scientifically certain .

G4–16

Memberships of associations

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4–17

G4–18

G4–19

G4–20

G4–21

G4–22

G4–23

All entities included in the organization’s
consolidated financial statements

Please see Eldorado Gold’s 2015 Annual Information Form –
www .eldoradogold .com/investors/financial-information/filings/

Process for defining report content and
aspect boundaries

22–23

List all Material Aspects

Which Aspects are material within the
organization

Which Aspects are material external
to the organization

Restatements of information

0 (“About This Report”), 46

Significant changes from previous reporting
periods in the Scope and Aspect boundaries

The scope of the report has not changed . Material aspects were determined
in our formal materiality assessment undertaken in 2015, per pages 22–23 .

48 Eldorado Gold Year in Review 2015

General Standard
Disclosures

Description of Indicator

Page Number, Link, or Location of Information

STAKEHOLDER ENGAGEMENT

G4–24

G4–25

G4–26

G4–27

REPORT PROFILE

G4–28

G4–29

G4–30

G4–31

G4–32

G4–33

GOVERNANCE

List of stakeholder groups

Basis for identification and selection of
stakeholders with whom to engage

Organization’s approach to stakeholder
management

Key topics and concerns raised through
stakeholder engagement

20–22

20–21

21, 23

Reporting period

0 (“About This Report”)

Date of most previous report

2014 Sustainability Report, published April 2015 .

Reporting cycle

Contact point

GRI Reporting Level

External assurance

0 (“About This Report”)

G4–34

Governance structure of the organization

18–19, www .eldoradogold .com/about-us/governance/

ETHICS AND INTEGRITY

G4–56

Values, principles, standards and norms of
behaviour of the organization

19, www .eldoradogold .com/about-us/governance/

Eldorado Gold Year in Review 2015 49

GRI G4 ‘CORE’ CONTENT INDEX

Fully reported against the GRI G4 guidelines

Partially reported against the GRI G4 guidelines

MATERIAL
ASPECTS

Report Section

Page
Number

Level of
Reporting

Identified Omission(s) and
Reason(s) for Omission(s)

Comments & Links

ECONOMIC / OPERATIONS
Economic Performance

G4–DMA

G4–EC1

CEO Letter, Our Business,
Contributing to Sustainable
Development, Our Value Chain
and Local Procurement, Our
Communities

Our Performance and Targets,
Payments to Suppliers, Payments
to Governments, Local
Community Investment

5, 10, 11,
14–15,
17, 25

1, 8, 17,
19, 25

HEALTH, SAFETY, ENVIRONMENT
Overall Environmental Performance

G4–DMA

Year In Review, Our Performance
and Targets, Our Approach
to Responsible Mining,
Managing our Inputs, Managing
our Outputs, Biodiversity
and Reclamation

7–9, 13,
32–39

Waste Management

G4–DMA

G4–EN24

Water

G4–DMA

Waste Management, Spotlight:
Managing our Tailings

The number of reportable spills
that occurred at Eldorado’s sites
in 2015 (0)

Managing our Environmental
Footprint, Managing our Inputs

28–34

G4–EN8

Water Use

G4–EN10

Volume of water treated as a
percentage of total water use
(305%), Water Use

33–34

6, 33–34

Health and Safety

G4–DMA

Letter from the CEO, Year In
Review, Our Performance
and Targets, Our Approach to
Responsible Mining, Keeping our
People Safe

4, 7–9,
13,
45–47

G4–LA6

Safety Performance

50 Eldorado Gold Year in Review 2015

Payments to Providers of Capital
and Economic Value Retained has
not been reported . This data is
available within Eldorado's 2015
Financial Report .

www .eldoradogold .com/
investors/financial-information/
annual-reports/

Water recycled and reused is
currently not reported . We report
on the total volume of water treated
by our water treatment plants as a
percentage of total water use .

Safety performance is not
broken down by employees and
contractors or gender, as we do not
internally track and report by these
breakdowns . Site safety performance
is reported in accordance with local
government requirements .

MATERIAL
ASPECTS

Report Section

Page
Number

Level of
Reporting

Identified Omission(s) and
Reason(s) for Omission(s)

Comments & Links

HEALTH, SAFETY, ENVIRONMENT (Continued)
Biodiversity and Reclamation

G4–DMA

G4–MM1

Our Business, Biodiversity and
Reclamation

2015 Highlights & Year in
Review, Reclamation

10–11,
38–39

6, 38

G4–MM2

Biodiversity

Energy Use

G4–DMA

Managing our Environmental
Footprint, Managing our Inputs

28–31,
35

G4–EN3

G4–EN5

Energy Consumption

Energy Intensity

GOVERNANCE
Permits and Licences

G4–2

CEO Letter, Year In Review,
Our Business, Stakeholder
Engagement, Managing our
Environmental Footprint

5, 7,
10–11,
21, 31

Emergency Preparedness

G4–DMA

Managing our Environmental
Footprint, Emergency Response

30, 47

Workforce Skills Development

G4–DMA

Managing our Environmental
Footprint, Emergency Response

G4–DMA

Our People

G4–LA1

New Employee Hires, Employee
Turnover

G4–LA9

Employee Training Hours

G4–LA11

Sustainability Factors in
Compensation

30, 47

40–43

At this time, we do not report on
the total land disturbed and not yet
rehabilitated, or the total amount of
new land disturbed .

www .eldoradogold .com/
investors/financial-information/
annual-reports/

Energy intensity ratio
calculated based on total energy
consumption (scope 1 and scope
2 sources) .

We do not monitor or report on new
employee hires or employee turnover
by age group .

We do not track training hours
by gender .

We do not track our performance
review information by gender or
employment category .

Training hours reflect Eldorado
Gold employee training and
does not include training hours
provided to Contractors .

We aim for all our employees
(100%) to conduct regular
(annual, if not more frequent)
performance reviews .

Eldorado Gold Year in Review 2015 51

GRI G4 ‘CORE’ CONTENT INDEX

Fully reported against the GRI G4 guidelines

Partially reported against the GRI G4 guidelines

MATERIAL
ASPECTS

Report Section

Page
Number

Level of
Reporting

Identified Omission(s) and
Reason(s) for Omission(s)

Comments & Links

COMMUNITY
Social Licence

G4–24

G4–25

G4–26

G4–27

G4–DMA

G4–SO1

G4–SO11

List of stakeholder groups

Basis for identification and
selection of stakeholders with
whom to engage

Organization’s approach to
stakeholder management

Key topics and concerns raised
through stakeholder engagement

Stakeholder Engagement,
2015 Materiality Assessment,
Our Communities – Building
Opportunities, Spotlight:
The Four Party Coalition

Stakeholder Engagement,
Our Communities – Building
Opportunities, Environmental
Impact Assessments

Requests and Complaints
Received

20–22

20–21

21, 23

20–27

20–21,
24–27,
31

20–21

Localization of Goods and Services

G4–DMA

G4–EC6

Our Value Chain and Local
Procurement, Our People

Our Employees (Percentage
Nationals, Percentage from
Local Communities)

16–17,
40–43

41–42

G4–EC9

Payments to Suppliers

16–17

52 Eldorado Gold Year in Review 2015

At this time, we are unable to report
the number of site stakeholder
engagement plans based on
stakeholder mapping .

At this time, we do not track the
number of grievances addressed and
resolved during the reporting period .

Our sites review and investigate
all requests, complaints and
grievances filed at our sites .
As we review our current
grievance mechanisms, we aim
to improve the tracking of these
grievances from filing to closure .

We report on the total number
of employees hired from local
communities – not just Senior
Management – as we believe
this is more compelling statistic
to demonstrate our local hiring
preferences and influence .

MATERIAL
ASPECTS

Report Section

Page
Number

Level of
Reporting

Identified Omission(s) and
Reason(s) for Omission(s)

Comments & Links

COMMUNITY (Continued)
Community Investment

G4–DMA

G4–EC1

G4–EC7

CEO Letter, Our Business,
Contributing to Sustainable
Development, Our Value
Chain and Local Procurement,
Our Communities

Our Performance and Targets,
Payments to Suppliers, Payments
to Governments, Local
Community Investment

5, 10, 11,
14–15,
17, 25

1, 8, 17,
19, 25

Local Community Investment,
Community Investment
by Operation

25–27

Payments to Providers of Capital
and Economic Value Retained has
not been reported . This data is
available within Eldorado’s 2015
Financial Report .

www .eldoradogold .com/
investors/financial-information/
annual-reports/

Eldorado Gold Year in Review 2015 53

MINERAL RESERVES

as of December 31, 2015

Proven Mineral Reserves

Probable Mineral Reserves

Total Proven & Probable

GOLD

Certej
Eastern Dragon
Efemçukuru
Jinfeng
Kişladağ
Olympias
Perama
Skouries
Tanjianshan
Tocantinzinho
White Mountain

Total Gold

SILVER

Certej
Eastern Dragon
Olympias
Perama
Stratoni

Total Silver

COPPER

Skouries

Total Copper

LEAD

Olympias
Stratoni

Total Lead

ZINC

Olympias
Stratoni

Total Zinc

Tonnes
(x1000)

In-situ oz
(x1000)

g/t

Tonnes
(x1000)

In-situ oz
(x1000)

g/t

Tonnes
(x1000)

In-situ oz
(x1000)

g/t

22,788

1 .93
837 11 .07
8 .31
801
3 .94
5,360
0 .85
48,581
8 .65
4,851
4 .44
2,477
0 .91
73,474
2 .18
1,340
1 .53
16,699
3 .26
3,510

1,414
297
214
680
1,333
1,349
354
2,148
94
821
368

21,500
2,168
3,367
9,767
282,378
11,236
7,220
79,262
1,267
22,914
2,446

1 .43
6 .46
6 .84
3 .77
0 .67
7 .54
2 .68
0 .64
3 .83
1 .36
3 .10

988
447
740
1,183
6,065
2,724
621
1,643
156
1,003
244

44,288
3,005
4,168
15,127
330,959
16,087
9,697
152,736
2,607
39,613
5,956

180,718

1.56

9,072

443,525

1.11

15,814

624,243

22,788
837
4,851
2,477
428

10
81
124
3
172

7,004
2,178
19,339
254
2,367

21,500
2,168
11,236
7,220
227

12
67
130
4
184

8,551
4,628
46,962
897
1,343

31,381

31,142

42,351

62,381

44,288
3,005
16,087
9,697
655

73,732

1 .69
7 .70
7 .12
3 .83
0 .70
7 .87
3 .13
0 .77
2 .98
1 .43
3 .20

1.24

11
70
128
4
176

2,402
744
954
1,863
7,398
4,073
975
3,791
250
1,824
612

24,886

15,555
6,806
66,301
1,151
3,710

93,523

Tonnes
(x1000)

In-situ t
(x1000)

Tonnes
(x1000)

In-situ t
(x1000)

Tonnes
(x1000)

73,474

0 .54

73,474

0.54

394

79,262

0 .48

79,262

0.48

382

152,736

0 .51

0.51

4,851
428

5,279

4 .1
6 .6

4.3

4,851
428

5 .1
10 .2

5,279

5.5

199
28

227

247
44

291

11,236
227

11,463

4 .4
7 .3

4.5

11,236
227

6 .0
10 .3

11,463

6.1

494
17

511

674
23

697

16,087
655

16,742

4 .3
6 .9

4.4

16,087
655

16,742

5 .7
10 .2

5.9

In-situ t
(x1000)

776

693
45

738

921
67

988

Notes on Mineral Resources and Reserves

Mineral Reserve Notes

1 . Mineral reserves and mineral resources are as of

1. Long Term Metal Price Assumptions:

3. Qualified Persons:

December 31, 2015 .

2 . Mineral reserves are included in the mineral resources .

3 . The mineral reserves and mineral resources are disclosed on

a total project basis .

4 . The Olympias mineral reserves and mineral resources now

exclude the remaining old tailings material .

5 . Vila Nova mineral reserves have been removed from the

Reserve tabulation due to not being economic at projected
long term iron ore prices .

54 Eldorado Gold Year in Review 2015

Gold = $1,200/oz . Silver = $16 .00/oz (for Stratoni it was
$7 .74/oz Ag as governed by a streaming agreement
with Silver Wheaton (Caymans) Ltd .); Copper = $3 .00/lb;
Pb price = $2,000/t and Zn price = $2,000/t .

2. Cut-off grades:

Kişladağ: $7 .30 NSR; Efemçukuru: 3 .48 g/t Au; Perama Hill:
0 .8 g/t Au; Tanjianshan: 1 .30 g/t Au (JLG) , 1 .7 g/t Au
(QLT South), 3 .80 g/t Au (QLT); Jinfeng: 0 .65 g/t Au
(open pit), 2 .3g/t Au (underground); White Mountain:
1 .8 g/t Au; Eastern Dragon: 1 .0 g/t Au (open pit), 1 .7g/t Au
(underground); Tocantinzinho: 0 .42 g/t Au; Skouries:
$12 .00 NSR (open pit), $33 .33 NSR (underground);
Olympias: $76 .00 NSR; Stratoni: 15 .54% Zn Equivalent
grade (=Zn%+Pb%*1 .20+Ag%*165); Certej: 0 .90 g/t Au
Equivalent grade (=Au(g/t)+Ag(g/t)*0 .0121) .

Richard Miller, P .Eng ., General Manager,Kişladağ Mine,
is responsible for the Kişladağ reserves .
John Nilsson, P .Eng ., of Nilsson Mine Services, is responsible
for the Skouries open pit, Certej and Tocantinzinho reserves .

Doug Jones (Registered Member – SME), Senior Vice
President, Operations for the Company, is responsible for
the Tanjianshan, Jinfeng, White Mountain, Eastern Dragon,
Efemçukuru, Olympias, Stratoni and Perama reserves .

Colm Keogh, P .Eng, Principal Mining Engineer, AMC Mining
Consultants (Canada) Ltd ., is responsible for the Skouries
underground reserves .

MINERAL RESOURCES

as of December 31, 2015 Measured Resources

Indicated Resources

Total Measured & Indicated

Inferred Resources

GOLD

Certej
Eastern Dragon
Efemçukuru
Jinfeng
Kişladağ
Olympias
Perama
Piavitsa
Sapes
Skouries
Tanjianshan
Tocantinzinho
White Mountain

Tonnes
(x1000)

In-situ oz
(x1000)

g/t

Tonnes
(x1000)

In-situ oz
g/t (x1000)

Tonnes
(x1000)

In-situ oz
g/t (x1000)

Tonnes
(x1000)

In-situ oz
g/t (x1000)

27,518 1 .80
800 12 .48
2,343 8 .82
6,887 4 .16
48,232 0 .82
4,464 9 .97
3,064 4 .30
–
–
–
–
100,018 0 .79
2,007 2 .13
17,530 1 .51
4,206 3 .64

1,592
322
665
920
1,276
1,431
424
–
–
2,534
137
851
491

62,463 1 .23
2,700 6 .04
2,573 7 .84
13,029 3 .78
441,134 0 .59
10,644 8 .55
9,375 3 .18
–
–
2,423 6 .08
189,263 0 .47
3,384 3 .01
31,202 1 .26
2,678 3 .45

2,472
530
649
1,581
8,325
2,926
958
–
474
2,867
327
1,264
297

89,981 1 .40
3,500 7 .50
4,916 8 .31
19,916 3 .91
489,366 0 .61
15,108 8 .97
12,439 3 .46
–
–
2,423 6 .08
289,281 0 .58
5,391 2 .68
48,732 1 .35
6,884 3 .56

4,064
852
1,314
2,501
9,601
4,357
1,382
–
474
5,401
464
2,115
788

12,228 0 .96
2,200 2 .67
5,524 4 .75
7,818 3 .83
372,643 0 .40
3,955 8 .34
8,766 1 .96
10,542 5 .70
1,011 10 .65
170,136 0 .31
4,341 3 .85
2,395 0 .90
1,685 6 .98

376
190
844
962
4,792
1,060
554
1,932
347
1,680
537
69
378

Total Gold

217,069 1.53 10,643

770,868 0.91 22,670

987,937 1.05 33,313

603,244 0.71

13,721

SILVER

Certej
Eastern Dragon
Olympias
Perama
Piavitsa
Stratoni

27,518
800

7,768
9
91
2,400
4,464 142 20,380
335
3
3,064
–
–
–
4,162
644 201

62,463
2,700

9 17,833
5,900
67
10,644 147 50,305
2,833
–
2,808

9
–
412 212

9,375
–

89,981
3,500
15,108
12,439
–
1,056

9 25,601
8,300
146 70,685
3,168
–
6,970

8
–
205

3
12,228
2,200
20
3,955 118
7
8,766
57
10,542
490 169

1,364
1,500
15,050
1,860
19,156
2,662

Total Silver

36,490

30 35,045

85,594

29 79,679

122,084

29 114,724

38,181

41,592

COPPER

Tonnes
(x1000) %

In-situ t
(x1000)

Tonnes
In-situ t
(x1000) % (x1000)

Tonnes
(x1000)

In-situ t
% (x1000)

Tonnes
(x1000)

In-situ t
% (x1000)

Skouries

100,018 0 .48

Total Copper

100,018 0.48

484

189,263 0 .40

189,263 0.40

289,281 0 .43

1,242

170,136 0 .34

289,281 0.43

1,242

170,136 0.34

578

153
31

184

171
43

214

3,955
490

4,445

3,955
490

4,445

3 .9
6 .4

4.1

4 .3
8 .8

4.8

9,519 59 .7

9,519 59.7

758

532
33

565

724
48

772

210
50

260

259
68

327

10,644
412

11,056

5 .0
7 .9

5.1

10,644

6 .8
412 11 .7

11,056

7.0

15,108
1,056

16,164

4 .9
7 .9

5.1

742
83

825

15,108

6 .5
1,056 11 .0

983
116

16,164

6.8

1,099

10,982 58 .5

10,982 58.5

13,194 58 .7

13,194 58.7

2. Qualified Persons:

Stephen Juras, Ph .D ., P .Geo ., Director, Technical Services
for the Company, is responsible for all of the Company’s
mineral resources except for those associated with Sapes .

Peter Lewis, Ph .D ., P .Geo ., Vice President, Exploration
for the Company, is responsible for the Sapes
mineral resources .

LEAD

Olympias
Stratoni

Total Lead

ZINC

Olympias
Stratoni

Total Zinc

IRON

Vila Nova

Total Iron

4,464
644

4 .7
7 .7

5,108

5.1

4,464

5 .8
644 10 .6

5,108

6.4

2,212 59 .3

2,212 59.3

Mineral Resource Notes

1. Cut-off grades:

Kişladağ: 0 .25 g/t Au; Efemçukuru: 2 .5 g/t Au;
Perama Hill: 0 .5 g/t Au; Jinfeng: 0 .5 g/t Au (open pit),
2 .0 g/t Au (underground); Tanjianshan: 1 .0 g/t Au
(JLG), 1 .0 g/t Au (QLT South), 2 .5 g/t Au (QLT);
White Mountain: 1 .0 g/t Au; Eastern Dragon: 1 .0 g/t
Au; Tocantinzinho: 0 .3 g/t Au; Certej: 0 .7 g/t Au;
Skouries: 0 .20 g/t Au Equivalent grade (open pit),
0 .60 g/t Au Equivalent grade (underground) (=Au g/t
+ 1 .6*Cu%); Piavitsa: 3 .5 g/t Au; Sapes: 2 .5 g/t Au
(underground), 1 .0 g/t Au (open pit) . Resource cut-offs
for Olympias and Stratoni are geological-based due to the
sharpness of the mineralized contacts and the high-grade
nature of the mineralization .

Eldorado Gold Year in Review 2015 55

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION

Certain statements and information in this Report, including all statements that are not historical facts, are forward-looking statements and forward-looking information within the meaning
of applicable US and Canadian securities laws . Such forward-looking statements or information include, but are not limited to, statements or information with respect to our strategy, plans,
goals, outlook, financial disclosure; our future financial and operating performance, price of gold and other commodities, cash flow, cash costs, targets, production and expenditures; our
mineral reserve and resource estimates; and our proposed mine development (including permitting), exploration, acquisitions, our expectation as to future performance at our mines and
other events and developments that have not yet happened . Often, these statements include words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” 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 .

With respect to forward-looking statements and information included in this Report, we have made numerous assumptions, estimates and opinions that may prove to be incorrect, including
among other things, assumptions about the price of gold and other commodities; exchange rates; anticipated costs and expenditures; production, mineral reserves and resources and
metallurgical recoveries; the impact of acquisitions, dispositions, suspensions or delays on our business; the political and economic environment in which we operate; and the ability to achieve
our goals . Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there is no assurance that
the forward-looking statements or information will prove to be accurate . By their nature, forward-looking statements and information are based on assumptions and involve known and
unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements or information . Such risks, uncertainties and other factors include, among other things, the following:

• regulatory restrictions, including environmental regulatory restrictions and liability, including actual costs of reclamation;
• risks of operating in foreign countries, including controls, regulations, changes in mining regimes or governments and political or economic developments in the countries in which

we currently or may in the future conduct business;

• changes in law and regulatory requirements, including permitting, foreign investment, environmental, tax and health and safety laws and regulations;
• title, permitting and licensing risks, including the risks of obtaining and maintaining the validity and enforceability of necessary permits and licenses, the timing of obtaining and renewing

such permits and licenses, and risks of defective title to mineral property;

• competition for mineral properties and merger and acquisition targets;
• environmental risks, including use and transport of regulated substances;
•

infrastructure, water, energy, equipment and other input availability and durability, and their cost and impact on capital and operating costs, exploration, development and
production schedules;

• volatility of global and local economic climate;
• community and non-governmental actions and regulatory risks, including the possibility of a shutdown at any of our operations;
• ability to maintain positive relationships with the communities we operate in and loss of reputation;
• gold and other metal price volatility and the impact of any related hedging activities;
• subjectivity of estimating mineral resources and reserves and the reliance on available data and assumptions and judgments used in interpretation of such data and depletion of grades

or quantities of reserves;

• discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries;
• speculative and uncertain nature of gold and other mineral exploration;
• development, mining and operational risk, including timing, hazards and losses that are uninsured or uninsurable;
• risks of not meeting production and cost targets or estimates;
• the loss of key employees and our ability to attract and retain qualified personnel and labour disputes;
• prices for energy inputs, labour, material costs, supplies and services (including shipping) remaining consistent with expectations;
• risk associated with joint ventures;
•
• currency exchange fluctuations and the impact of any related hedging activities;
• risks associated with maintaining substantial levels of indebtedness, including potential financial constraints on operations, interest rate risk and credit rating risk;
• the risks that the integration of acquired businesses may take longer than expected, the anticipated benefits of the integration may be less than estimated or the costs of acquisition may

increased capital requirements and the ability to obtain financing;

be higher than anticipated;

• the impact of acquisitions and dispositions, monetization, mergers and other business combinations and transactions, including effect of changes in our portfolio of projects on our

operations, capital requirements, and financial condition and ability to complete acquisitions;
litigation risks, including the uncertainties inherent in current and future legal challenges we are, or may become, a party to;

•
• share capital dilution and share price volatility;
• taxation, including change in tax laws and interpretations of tax laws;
• failure, security breaches or disruption of our information technology systems; and
• risks related to natural disasters and climate change .

See our Annual Information Form and our quarterly and annual MD&A for additional information on risks, uncertainties and other factors relating to the forward-looking statements and
information . Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or
information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended . Also, many of the factors are beyond
our control . Accordingly, readers should not place undue reliance on forward-looking statements or information . We undertake no obligation to reissue or update forward-looking statements
or information as a result of new information or events after the date of this Report except as may be required by law . All forward-looking statements and information made in this document
are qualified by this cautionary statement .

Cautionary Note about Production Outlook, Guidance and Estimates
Readers are cautioned that production outlook, guidance and estimates are subject to a variety of factors that are likely to cause actual results to vary from our estimates, and such variations
may be material . Forward-looking information generally involves risks and uncertainties as described above which are, in many instances, beyond our control, including: (i) global and local
economic conditions; (ii) pricing and cost factors; (iii) unanticipated events or changes in current development plans, execution of development plans, future operating results, financial
conditions or other aspects of our business over time; and (iv) unfavourable regulatory developments, that could cause actual events and results to vary significantly from those included in or
contemplated by such statements . The production outlook, guidance and estimates reflect certain assumptions by us, which assumptions may differ with respect to future events, economic,
competitive and regulatory conditions, financial market conditions and future business decisions, including, without limitation, a continuation of existing business operations on substantially
the same basis as currently exists all of which assumptions are difficult to predict and many of which are beyond our control . Accordingly, there is no assurance that the outlook, guidance and
estimates are indicative of our future performance or that actual results would not differ materially from those in the outlook, guidance and estimates .

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred mineral resource” used herein are Canadian mining terms used in accordance
with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining and Metallurgy and
Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time . These definitions differ from the
definitions in the United States Securities & Exchange Commission (“SEC”) Industry Guide 7 . In the United States, a mineral reserve is defined as a part of a mineral deposit which could
be economically and legally extracted or produced at the time the mineral reserve determination is made .

While the terms “mineral resource”, “measured mineral resource,” “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations,
they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC . As such, information
contained herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U .S . companies in
SEC filings . 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 . Accordingly, information herein containing descriptions of our mineral deposits may not be comparable to similar information made public by US companies subject to
the reporting and disclosure requirements under US federal securities laws and the rules and regulations thereunder .

56 Eldorado Gold Year in Review 2015

FINANCIAL REVIEW

TABLE OF CONTENTS

Management’s Discussion and Analysis of Financial Condition . . . . . . . . . . . . . . . 2
and Results of Operations

Management’s Responsibility for Financial Reporting . . . . . . . . . . . . . . . . . . . . . 27

Independent Auditors’ Report of Registered Public Accounting Firm . . . . . . . . . 28

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . 29

Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Consolidated Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Consolidated Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . 32

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Consolidated Statements of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Board of Directors, Officers and Senior Management Team . . . . . . . . . . . . . . . . . 73

Shareholder Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Cautionary Note About Forward-Looking Statements and Information . . . . . . . 76

Eldorado Gold Financials 2015 F1

MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

for the year ended December 31, 2015
Throughout this MD&A, Eldorado, we, us, our and the Company mean Eldorado Gold Corporation.

This year means 2015. All dollar amounts are in United States dollars unless stated otherwise.

The information in this MD&A is as of March 23, 2016. You should also read our audited consolidated financial statements for the year ended
December 31, 2015. We prepare our consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”). We file them with appropriate regulatory authorities in Canada and the United States.
You can find more information about Eldorado, including our Annual Information Form, on SEDAR at www.sedar.com.

About Eldorado

Based in Vancouver, Canada, Eldorado owns and operates mines around the world. Its activities involve all facets of the mining industry including
exploration, development, production and reclamation.

OPERATING GOLD MINES:

■ Kişladağ, in Turkey (100%)

■ Efemçukuru, in Turkey (100%)

■ Tanjianshan, in China (90%)

■ White Mountain, in China (95%)

■

Jinfeng, in China (82%)

GOLD PROJECTS:

■ Perama Hill, in Greece (100%)

■ Olympias, in Greece (95%)

■ Skouries, in Greece (95%)

■ Certej, in Romania (81%)

■ Eastern Dragon, in China (75%)

■ Tocantinzinho, in Brazil (100%)

OTHER MINES:

■ Stratoni – Lead and Zinc Concentrates, in Greece (95%)

■ Vila Nova – Iron Ore, in Brazil (100%)

ELDORADO IS LISTED ON THE FOLLOWING EXCHANGES:

■ Toronto Stock Exchange (“TSX”) under the symbol ELD

■ New York Stock Exchange (“NYSE”) under the symbol EGO

ELD is part of the S&P/TSX Global Gold Index. EGO is part of the AMEX Gold BUGS Index.

2 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 20152015 Overview

SELECTED CONSOLIDATED FINANCIAL INFORMATION

■ Loss attributable to shareholders of the Company of $1,540.9 million or $2.15 loss per share, compared to net income attributable to shareholders

of the Company of $102.6 million or $0.14 per share in 2014.

■ Dividends paid of $11.3 million in 2015, compared to $13.0 million in 2014.

■ Liquidity was $667.6 million at year end, including $292.6 million in cash, cash equivalents, and term deposits, and $375.0 million in unused lines

of credit (2014 – $876.3 million of liquidity).

■ During 2015 the Company recognized non-cash impairment charges of $1,525.2 million, net of taxes.

SELECTED PERFORMANCE MEASURES (1)

■ Gold production of 723,532 ounces, including production from Olympias tailings retreatment (2014 – 789,224 ounces).

■ Total cash costs averaged $606 per ounce (2014 – $557 per ounce).

■ All-in sustaining cash costs averaged $842 per ounce (2014 – $779).

■ Gross profit from gold mining operations of $230.0 million (2014 – $382.7 million).

■ Adjusted net earnings of $13.2 million ($0.02 per share) compared to adjusted net earnings of $138.7 million ($0.19 per share) in 2014.

■ Cash generated from operating activities before changes in non-cash working capital was $193.1 million (2014 – $342.9 million).

IMPAIRMENT CHARGES

During 2015 the Company recorded non-cash impairment charges totalling $1,049.2 million in property, plant and equipment (net of deferred income tax
recovery), and $476.0 million in goodwill mainly related to Greece. The impairment of property, plant and equipment included $739.9 million related to
Skouries, $214.1 million related to Certej, $31.2 million related to Stratoni, $35.8 million related to TJS, and $28.2 million related to Vila Nova.

In addition to ongoing permitting issues at Skouries, higher estimated capital and operating costs affected projected cash flows from Skouries and Certej,
leading to fair value estimates below these projects’ carrying values. Stratoni (lead and zinc) and Vila Nova (iron ore) were both affected by the continuing
world-wide slump in base metals prices.

(1) Throughout this MD&A we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cash costs, gross profit from gold mining operations, adjusted net earnings, and cash flow
from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see page 14 for an explanation and
discussion of these non-IFRS measures.

Eldorado Gold Financials 2015 3

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015Summarized Annual Financial Results

($ millions except as noted)

2015

2014

2013

Revenues

Gold revenues

Gold sold (ounces)

Average realized gold price ($/ounce)

Average London spot gold price ($/ounce)

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

All-in sustaining cash cost ($/ounce sold)

Gross profit from gold mining operations

Adjusted net earnings

Net profit (loss) attributable to shareholders of the Company

Earnings (loss) per share attributable to shareholders of the Company – basic ($/share)

Earnings (loss) per share attributable to shareholders of the Company – diluted ($/share)

Cash flow from operating activities before changes in non-cash working capital

Capital spending – cash basis

Dividends paid – (CDN$/share)

Cash, cash equivalents and term deposits

Total assets
Total long-term financial liabilities(1)

(1) Includes long-term debt net of deferred financing costs, other non-current liabilities, and asset retirement obligations.

863.3

823.8

705,310

1,168

1,159

552

606

842

230.0

13.2

(1,540.9)

(2.15)

193.1

396.0

0.02

292.6

1,067.9

980.9

774,522

1,266

500

557

779

382.7

138.7

102.6

0.14

342.9

410.7

0.02

501.3

1,124.0

1,020.0

725,095

1,407

1,411

494

551

n/a

481.1

192.9

(653.3)

(0.91)

382.0

482.0

0.12

623.9

5,464.6

698.5

7,393.6

745.5

7,235.2

670.3

REVIEW OF ANNUAL FINANCIAL RESULTS

Gold sales volumes decreased 9% year over year, reflecting decreases in gold production at Kişladağ and the Company’s Chinese mines. Total cash costs
per ounce increased 9% year over year, mainly due to increases in operating costs at Kişladağ and Tanjianshan. Gross profit from gold mining operations
of $230.0 million fell 40% year over year on decreasing gross margins as a result of lower sales volumes, higher unit operating costs and lower realized
gold prices.

Loss attributable to shareholders of the Company was $1,540.9 million (or $2.15 per share), compared to a net profit attributable to shareholders
of the Company of $102.6 million (or $0.14 per share) in 2014. The loss in 2015 was mainly due to impairment losses, net of tax, in the amount of
$1,525.2 million ($1,423.0 million attributable to shareholders of the Company), a deferred income tax charge of $63.5 million related to a change
in income tax rates in Greece, and lower gross profits from gold mining operations.

Adjusted net earnings for the year was $13.2 million ($0.02 per share) as compared with $138.7 million ($0.19 per share) for 2014. The main factor
in the decrease in adjusted net earnings was the decrease in gross profit from gold mining operations described above. Please see page 15 for a
reconciliation between loss attributable to shareholders of the Company and adjusted net earnings.

4 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Summarized Quarterly Financial Results

2015

($ millions except as noted)

2015

Revenues

Gold revenues

Gold sold (ounces)

Average realized gold price ($/ounce)

Cash operating costs ($/ounce)

All-in sustaining cash cost ($/ounce sold)

Gross profit from gold mining operations

Adjusted net earnings (loss)

Net profit (loss) attributable to shareholders of the Company

Earnings (loss) per share attributable to shareholders of the

238.3

224.0

181,820

1,232

521

729

77.1

19.5

(8.2)

214.2

204.2

170,056

1,201

569

900

61.4

17.0

(198.6)

211.5

206.2

182,124

1,132

552

835

53.1

(4.0)

(96.1)

199.3

189.4

171,310

1,105

567

914

38.4

(19.3)

863.3

823.8

705,310

1,168

552

842

230.0

13.2

(1,238.0)

(1,540.9)

Company – basic ($/share)

(0.01)

(0.28)

(0.13)

(1.73)

Earnings (loss) per share attributable to shareholders of the

Company – diluted ($/share)

(0.01)

(0.28)

(0.13)

(1.73)

(2.15)

Cash flow from operating activities before changes in

non-cash working capital

58.9

61.9

43.4

28.9

193.1

2014

($ millions except as noted)

2014

Revenues

Gold revenues

Gold sold (ounces)

Average realized gold price ($/ounce)

Cash operating costs ($/ounce)

All-in sustaining cash cost ($/ounce sold)

Gross profit from gold mining operations

Adjusted net earnings

Net profit (loss) attributable to shareholders of the Company

Earnings per share attributable to shareholders of the

Company – basic ($/share)

Earnings per share attributable to shareholders of the

Company – diluted ($/share)

Cash flow from operating activities before changes in

non-cash working capital

279.9

247.6

190,628

1,299

519

786

95.4

37.3

31.3

0.04

94.7

265.5

247.6

190,621

1,299

489

829

100.8

35.9

37.6

0.05

92.2

263.5

241.2

189,321

1,274

488

735

102.0

36.1

19.8

0.03

78.7

259.0

244.5

203,952

1,199

505

761

84.5

29.4

13.9

0.02

77.3

1,067.9

980.9

774,522

1,266

500

779

382.7

138.7

102.6

0.14

342.9

REVIEW OF QUARTERLY RESULTS

Loss attributable to shareholders of the Company for the quarter was $1,238.0 million ($1.73 per share) as compared to net profit for the quarter ended
December 31, 2014 of $13.9 million ($0.02 per share). Adjusted loss was $19.3 million as compared to 2014 adjusted net earnings of $29.4 million.
The main factors that impacted earnings for the fourth quarter year over year was the impairment charge attributable to shareholders of the company,
net of taxes, of $1,249.6 million recorded in the fourth quarter of 2015, and lower gold sales volumes and prices.

Eldorado Gold Financials 2015 5

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 20152015

2014

2016 outlook

723,532

789,224

565,000 to 630,000

552

606

842

94.9

281,280

543

558

30.6

100,482

521

540

24.1

97,563

473

646

14.7

149,655

587

669

10.0

78,156

653

691

15.5

16,396

500

557

779

109.0

585 to 620

n/a

940 to 980

105.0

311,233

225,000 to 240,000

443

461

41.6

98,829

573

595

25.6

107,614

389

559

5.4

168,50

575

658

16.0

85,308

617

657

20.4

17,737

550 to 600

n/a

50.0

90,000 to 100,000

550 to 600

n/a

20.0

70,000 to 80,000

675 to 725

n/a

5.0

95,000 to 105,000

700 to 750

n/a

15.0

75,000 to 85,000

625 to 675

n/a

15.0

n/a

Operations Review and Outlook

GOLD OPERATIONS

Total Operating Gold Mines

Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

All-in sustaining cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

Kişladağ
Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

Efemçukuru

Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

Tanjianshan

Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

Jinfeng

Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

White Mountain

Gold ounces produced

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Sustaining capital expenditure ($ millions)

Olympias

Gold ounces produced from tailings retreatment

6 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Annual Review – Operations

KIŞLADAĞ

Operating Data

Tonnes placed on pad

Average treated head grade (g/t Au)

Gold (ounces)

– Produced

– Sold

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Financial Data ($ millions)

Gold revenues

Depreciation and depletion

Gross profit from mining operations

Sustaining capital expenditures

2015

2014

19,146,685

15,501,790

0.70

1.01

281,280

280,892

543

558

311,233

311,451

443

461

326.5

46.5

121.2

30.6

392.5

28.1

218.2

41.6

Gold production at Kişladağ was 10% lower year over year mainly as a result of lower ore grades, which were expected for this phase of the open pit.
Lower ore grades were partly offset by an increase in ore tonnage and an inventory draw-down resulting from increased solution application to the leach
pad. Kişladağ placed 24% more total tonnes on the leach pad at a 31% lower head grade than in 2014. Cash operating costs per ounce were higher year
over year as a result of the lower grade of ore, partly offset by a decline in diesel fuel prices, and a weakening of the Turkish lira. Capital expenditures at
Kişladağ in 2015 included capitalized waste stripping, equipment overhauls and sustaining construction projects.

EFEMÇUKURU

Operating Data

Tonnes milled

Average treated head grade (g/t Au)

Average recovery rate (to concentrate)

Gold (ounces)

– Produced

– Sold

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Financial Data ($ millions)

Gold revenues

Depreciation and depletion

Gross profit from mining operations

Sustaining capital expenditures

2015

2014

454,863

7.82

91.7%

100,482

99,147

521

540

113.5

30.3

28.0

24.1

436,852

8.34

93.3%

98,829

101,717

$573

$595

128.8

26.9

40.2

25.6

Gold production at Efemçukuru increased 2% year over year due to favorable smelter settlement adjustments as well as an increase in mill throughput.
Gold ounces sold were lower due to concentrate inventory movements. Lower cash operating costs were the result of both the impact of the weakening
Turkish lira, cost reduction initiatives, and slightly higher gold production. Capital spending included costs related to capitalized underground development,
mobile equipment, tailings dam construction, and process improvements.

Eldorado Gold Financials 2015 7

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

TANJIANSHAN

Operating Data

Tonnes milled

Average treated head grade (g/t Au)

Average recovery rate

Gold (ounces)

– Produced

– Sold

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Financial Data ($ millions)

Gold revenues

Depreciation and depletion

Gross profit from mining operations

Sustaining capital expenditures

2015

2014

1,060,176

1,045,440

3.14

82.4%

97,563

473

646

115.5

25.3

26.8

14.7

3.69

81.7%

107,614

389

559

136.6

22.2

53.5

5.4

Gold production at Tanjianshan was 9% lower year over year mainly due to lower average treated head grade, and gold-in-circuit inventory movements.
Cash operating costs per ounce were higher than 2014 mainly due to lower average treated head grade and higher ore and waste tonnes mined.
Capital expenditures for the year included construction of a tailings dam lift and driving the Qinlongtan (“QLT”) Deep decline in order to evaluate the
QLT resource.

JINFENG

Operating Data

Tonnes milled

Average treated head grade (g/t Au)

Average recovery rate

Gold (ounces)

– Produced

– Sold

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Financial Data ($ millions)

Gold revenues

Depreciation and Depletion

Gross profit from mining operations

Sustaining capital expenditures

2015

2014

1,303,863

1,470,824

4.13

86.2%

149,655

149,552

587

669

176.6

37.2

39.3

10.0

3.99

86.8%

168,503

168,432

575

658

214.5

52.2

51.5

16.0

Gold production at Jinfeng was 11% lower year over year mainly as a result of less ore milled, partially offset by higher average treated head grade.
Ore production fell year over year with the completion of the open pit in April 2015. Cash operating costs per ounce were 2% higher year over year
mainly due to lower gold production. Capital expenditures for the year included underground development, mining equipment and the construction of
dry stacking facilities at the flotation and carbon in leach (“CIL”) tailings dams.

8 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

WHITE MOUNTAIN

Operating Data

Tonnes milled

Average treated head grade (g/t Au)

Average recovery rate

Gold (ounces)

– Produced

– Sold

Cash operating costs ($/ounce)

Total cash costs ($/ounce)

Financial Data ($ millions)

Gold revenues

Depreciation and depletion

Gross profit from mining operations

Sustaining capital expenditures

2015

2014

849,335

3.30

86.5%

78,156

653

691

91.6

27.0

10.5

15.5

850,782

3.47

86.9%

85,308

617

657

108.6

33.1

19.2

20.4

Gold production at White Mountain was 8% lower year over year due to lower average treated head grade and gold-in-circuit inventory movements.
Cash operating costs per ounce were 6% higher than in 2014 principally as a result of the lower average treated head grade. Capital expenditures for
the year included underground electrical infrastructure, upgrades to the mill and backfill plant, and ongoing expansion of the tailings storage facility.

STRATONI

Operating Data

Tonnes ore processed (dry)

Pb grade (%)

Zn grade (%)

Tonnes of concentrate produced

Tonnes of concentrate sold

Average realized concentrate price ($/tonne)

Cash Costs ($/tonne of concentrate sold)

Financial Data ($ millions)

Concentrate revenues

Depreciation and depletion

Gross profit (loss) from mining operations

Sustaining capital expenditures

2015

2014

154,992

219,861

6.5%

8.5%

40,232

46,502

771(1)
774

35.9

8.6

(12.5)

3.2

5.9%

10.5%

58,375

57,719

884

714

51.0

8.4

0.6

5.0

(1) Average realized price included mark to market downward adjustments to accounts receivable in the amount of $48 per tonne.

Stratoni produced 31% less concentrate than 2014 mainly due to lower mine output. Mine output was impacted by fewer available underground
production faces as well as an extended mine shutdown related to Kassandra mines’ permitting issues. Stratoni reported a loss from mining operations of
$12.5 million (2014 – gross profit $0.6 million). The loss included write down of inventory to net realizable value of $3.3 million. In addition to the shortfall
in production, the profitability of mining operations was impacted by weak lead and zinc prices. Capital expenditures for the year included upgrades to
health, safety and environmental equipment, and upgrades to the water treatment plant.

Eldorado Gold Financials 2015 9

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

VILA NOVA

Operating Data

Tonnes processed

Iron ore produced

Average Grade (% Fe)

Iron ore tonnes

– Sold
Average realized iron ore price(1) ($/tonne)
Cash costs ($/tonne sold)

Financial Data ($ millions)

Iron ore revenues

Depreciation and depletion

Gross profit (loss) from mining operations

Sustaining capital expenditures

2015

2014

20,017

16,038

63.7%

806,082

693,714

63.1%

47,815

524,645

(8)

(0.4)

1.0

(11.8)

–

31.6

4.9

(16.7)

1.0

(1)

Average realized price includes negative adjustments to prior shipments.

A nominal amount of iron ore was processed and shipped in the first quarter of 2015 while preparing the plant for shutdown. No production was realized
during the rest of the 2015 year, and sales and logistic activities remained suspended during the year due to low iron ore market prices.

10 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Annual Review – Development Projects

KIŞLADAĞ

Design concepts were developed during 2015 for additional crushing and screening capacity to increase plant throughput at Kişladağ to 20 million tonnes
per year. The crushing circuit was optimized with a change in crush size that is expected to improve gold recovery when it becomes operational in 2016.

OLYMPIAS

The Olympias plant treated 589,675 tonnes of tailings at a grade of 1.99 grams per tonne during 2015. A total of 16,396 ounces of gold were produced
during the year. The Olympias plant is expected to cease treating tailings during the first quarter of 2016.

During 2015 basic engineering for Phase II was completed, and full implementation began with detailed engineering and procurement of long lead items
well advanced by year end. The construction phase is expected to begin in 2016 assuming the timely receipt of the required installation permit, with
commissioning forecast by the end of the year. Underground mine development and refurbishment continued at Olympias during 2015, with underground
ore production for Phase II projected to begin early in 2017. During 2015, 659 metres of underground access were rehabilitated and 1,901 metres of
new development were completed. In addition, approximately 330 metres were advanced on the main Stratoni-Olympias decline, bringing total decline
advance project-to-date to 1,950 metres. Capital costs incurred in 2015 were $97 million, consisting of $72 million in construction capital and $25 million
in capitalized cost for tailings retreatment.

SKOURIES

Engineering design work for the processing plant and surface facilities progressed during 2015, with engineering at over 93% complete by year end.
During the year a substantial amount of the equipment and various steel structures required to complete construction of the plant and facilities were
delivered to the Skouries site, with over 80% of the procurement scope completed by the end of the year. Work continued on construction of the process
plant and road access was completed to the base of the tailings dam.

Work on the development of the Skouries underground mine design was advanced during 2015 from scoping level through prefeasibility level.
The underground mine design is expected to be completed in 2016. The mine is projected to achieve a throughput rate of 4.5 million tonnes per year
using shaft and ramp access with sub-level open stoping along vertical development intervals of 60 metres. The open pit is expected to be used for
disposal of mill tailings during the life of the underground operation. The open pit is projected to operate for a period of eight years to be followed by
22 years of underground mining. During 2015 a total of $112.9 million was spent on Skouries, excluding capitalized exploration and capitalized interest.

On January 11, 2016 the Company announced that construction and development activities at the Skouries project were being suspended due to delays
in the issuance of routine permits and licences by the Greek permitting authorities. Environmental protection works and care and maintenance activities
continued to be performed in order to safeguard the environment and the assets of the Company at site at a cost of approximately $1.0 million per month.

CERTEJ

In May 2015 the Company released the results of the feasibility study for the Certej project. The study included improvements in the mine design and
further optimization of the flotation and oxidation processes for gold recovery. This study resulted in a decrease in projected capital investment and
reduced life of mine operating costs, as compared with the previous feasibility study. Engineering work continued during 2015 on trade off studies
with a focus on further opportunities to improve the project and increase the level of engineering confidence. Work began on amending the existing
environmental permits to reflect the proposed changes, and will continue to be the focus of efforts in 2016. During 2015 a total of $15.8 million was
spent on Certej, mainly on geotechnical and metallurgical testing, site preparation and engineering studies.

Eldorado Gold Financials 2015 11

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015PERAMA HILL

Project engineering was completed during the year on Perama Hill and the project was placed on care and maintenance pending receipt of the
Environmental Impact Assessment approval. In 2015, a total of $1.0 million was spent on the Perama Hill project.

EASTERN DRAGON

A key milestone was achieved in June 2015 with the receipt of the Project Permit Approval (“PPA”). The PPA, which was approved by the National
Development and Reform Commission (“NDRC”), provides verification of previous permitting steps including the Environmental Protection Assessment
approval. The conversion of the Exploration Licence to a Mining Licence is progressing, evidenced by formal acceptance of the application by the Ministry
of Land and Resources (“MLR”) on March 1, 2016. Mine personnel continue to be engaged with local, state and central government authorities to actively
pursue all avenues to advance permitting while maintaining all existing agreements in good standing.

TOCANTINZINHO

The Company completed a feasibility study for the Tocantinzinho project during 2015. The project is projected to generate positive cash flows with a
return rate of 13.5% after tax at a forecast gold price of $1,250 per ounce. Capital costs incurred at Tocantinzinho in 2015 totalled $4.1 million and were
spent on engineering and site works to advance the installation of the access road to the site.

12 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015Annual Review – Exploration

A total of $30.0 million was spent in 2015 on exploration, which included 58,000 metres of drilling. Exploration activities were conducted at 17 projects
including early-stage, brownfields and in-mine programs in Turkey, China, Brazil, Greece, Serbia and Romania.

TURKEY

At the Efemçukuru mine 5,500 metres of drilling focused on establishing the grade and continuity of mineralized trends within the Kokarpinar vein system.
Reconnaissance teams drill-tested porphyry-epithermal targets at the Dölek project in Northeast Turkey (1,900 metres), and conducted project generation
work mainly in northern and western Turkey. Aeromagnetic data were acquired covering roughly 6,000 square kilometres in an area west of Kişladağ,
which will form the basis of regional reconnaissance work in 2016, directed towards identifying new porphyry and epithermal targets.

CHINA

In China, brownfields and in-mine exploration programs were completed at Tanjianshan and White Mountain. At Tanjianshan, 4,700 metres of drilling,
collared from the new underground development, defined along-strike and down-dip extensions to the high-grade Qinlongtan North deposit. Drilling
was also completed at the nearby Xijingou deposit (2,200 metres), and the Dushugou and Qingshan prospects (800 metres total). At White Mountain,
14,200 metres of underground drilling were completed, focused mainly on expanding resources in the South, North, and Far North zones. Finally,
a 600 metres drill program tested new exploration targets on the Anbao licence, north of Jinfeng.

BRAZIL

In Brazil, the KRB prospect in the Tocantinzinho project area was tested with 3,000 metres of drilling completed. Other exploration activities in Brazil were
limited project generation, mainly in the Central Brazil gold belt and in the northeastern part of the country. In December an option agreement was signed
with a private Brazilian company covering parts of the prospective Mara Rosa greenstone belt. The agreement includes the right to earn up to 100% in the
subject licences.

GREECE

Exploration drilling in Greece totalled 900 metres of underground drilling that targeted extensions of the Mavres Petres deposit. Other exploration activities
focused on mapping and sampling programs on our Halkidiki and Sapes licence areas, and project generation work in Northern Greece. Several new high-
grade vein occurrences were identified peripheral to the Skouries deposit, and drilling targets were defined at the Tsikara and Fisoka prospects.

ROMANIA

In Romania, five exploration projects were drilled in the Certej area. A total of 5,100 metres of drilling were completed at the Muncel VMS deposit aimed
at identifying gold-rich areas within the base metal system. At Magura, 8,900 metres of drilling targeted down-dip and along-strike extensions of high-
grade veins that were historically explored in underground workings. At the newly acquired Certej North exploration licence, 4,700 metres of drilling
were completed intersecting broad zones of peripheral porphyry and epithermal-style alteration/mineralization. Drilling programs also tested the P. Avram
prospect (1,700 metres) and porphyry targets on the Deva exploration licence (650 metres).

Eldorado Gold Financials 2015 13

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015Non-IFRS Measures

Throughout this document we have provided measures prepared in accordance with IFRS, as well as some non-IFRS performance measures as additional
information for investors who also use them to evaluate our performance. Since there is no standard method for calculating non-IFRS measures, they are
not a reliable way to compare us against other companies. Non-IFRS measures should be used with other performance measures prepared in accordance
with IFRS. We have defined our non-IFRS measures below and reconciled them with the IFRS measures we report.

Cash Operating Cost, Total Cash Cost
The table below reconciles cash operating cost and total cash cost to operating costs. We calculate costs according to the Gold Institute Standard.

($ millions, except for gold ounces sold and per ounce amounts)

Production costs (from consolidated income statements)

Vila Nova and Stratoni production costs

Production costs – excluding Vila Nova and Stratoni

Less:

By-product credits

Total cash cost

Less:

Royalty expense and production taxes

Cash operating cost

Gold ounces sold

Total cash cost per ounce

Cash operating cost per ounce

2015

469.8

38.1

431.7

(4.2)

427 .5

2014

508.3

72.5

435.8

(4.4)

431 .4

(38.2)

(44.1)

389 .3

705,310

606

552

387 .3

774,522

557

500

All-in Sustaining Cash Cost
All-in sustaining costs are calculated by taking total cash costs and adding sustaining capital expenditures, corporate administrative expenses, exploration
and evaluation costs, and reclamation cost accretion. Sustaining capital expenditures are defined as those expenditures which do not increase annual
gold ounce production at a mine site, and exclude all expenditures at the Company’s projects. Certain other cash expenditures, including tax payments,
dividends and financing costs, are also not included. The Company believes that this measure represents the total costs of producing gold from current
operations, and provides the Company and other stakeholders of the company with additional information of the Company’s operational performance
and ability to generate cash flows. The Company reports this measure on a gold ounces sold basis.

Calculation of All-in Sustaining Cash Costs

($ millions, except for gold ounces sold and all-in sustaining cash cost per ounce sold)

Total cash cost – excluding Vila Nova and Stratoni (per table above)

Sustaining capital spending at operating gold mines

Exploration spending at operating gold mines
General and administrative expenses(1)
All-in sustaining cash costs

Gold ounces sold

All-in sustaining cash cost per ounce sold

2015

427.5

94.9

10.4

61.4

594.2

705,310

842

2014

431.4

109.0

9.1

53.6

603.1

774,522

779

(1) Excludes G&A expenses related to business development activities and projects. Includes share-based payments expense and defined benefit pension plan expense as well as asset retirement obligation

accretion expense.

14 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Cash Flow From Operations Before Changes in Non-cash Working Capital
We use cash flow from operations (or operating activities) before changes in non-cash working capital to supplement our consolidated financial
statements, and calculate it by not including the period to period movement of non-cash working capital items, like accounts receivable, advances and
deposits, inventory, accounts payable and accrued liabilities.

We believe this provides a better indication of our cash flow from operations and may be meaningful to investors in evaluating our past performance or
future prospects. It is not meant to be a substitute for cash flow from operations (or operating activities), which we calculate according to IFRS.

Adjusted Net Earnings
The Company has included non-IFRS performance measures, adjusted net earnings and adjusted net earnings per share, throughout this document.
Adjusted net earnings excludes gains/losses and other costs incurred for acquisitions and disposals of mining interests, impairment charges, unrealized and
non-cash realized gains/losses of financial instruments and foreign exchange impacts on deferred income tax. The Company also excludes net earnings and
losses of certain associates that the Company does not view as part of the core mining operations. The Company excludes these items from net earnings
to provide a measure which allows the Company and investors to evaluate the results of the underlying core operations of the Company and its ability to
generate cash flow. Accordingly, it is 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.

The following table provides a reconciliation of adjusted net earnings to the consolidated financial statements for the years ended December 31:

($ millions, except for weighted average shares and earnings per share)

Q4 2015

2015

2014

Net (loss) earnings attributable to shareholders of the Company

(1,238 .0)

(1,540 .9)

102 .6

Transaction costs

Losses (gains) on disposal of assets

Losses (gains) on available-for-sale securities

Loss on investment in associates

Impairment loss on investment in associates

Write-down of assets & inventory
Impairment loss on property, plant and equipment, and goodwill (net of taxes)(1)
Unrealized losses (gains) on foreign exchange translation of deferred income tax balances
Deferred income tax charge for change in Greek tax rates(1)
Total adjusted net earnings

Weighted average shares outstanding

Adjusted net earnings ($/share)

(1) Attributable to shareholders of the Company.

1.2

0.2

0.0

15.2

1,208.9

(3.6)

(3.2)

(19 .3)

3.1

0.2

0.0

28.5

1,423.0

38.9

60.4

13 .2

0.0

1.9

2.4

0.1

0.0

16.5

0.0

15.2

0.0

138 .7

716,587

716,586

(0 .03)

0 .02

716,288

0 .19

Gross Profit from Gold Mining Operations
Gross profit from gold mining operations represents gross revenues from gold mining operations less production costs and depreciation, depletion and
amortization related to those operations.

Eldorado Gold Financials 2015 15

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Financial Condition & Liquidity

OPERATING ACTIVITIES

Operating activities before changes in non-cash working capital generated $193.1 million in cash in 2015, compared to $342.9 million in 2014.

INVESTING ACTIVITIES

The Company invested $396.0 million in capital expenditures this year. Evaluation and development expenditures, including capitalized drilling programs
and Olympias tailings retreatment, totalled $262.9 million, while sustaining capital spending at our producing mines totalled $98.1 million ($94.9 million
at our producing gold mines and $3.2 million at Stratoni and Vila Nova). We also spent $5.0 million on land acquisitions in Turkey and Romania. A total of
$27.2 million in bond interest was also charged to capital projects. The remaining $2.8 million related to fixed assets for our corporate offices in Canada,
Brazil, Turkey, Greece, Romania and China. In addition, cash proceeds of $17.9 million related to gold concentrate sales proceeds from tailings retreatment
were recorded as cash flows from investment activities.

FINANCING ACTIVITIES

The Company paid dividends of $10.9 million to non-controlling interests and $11.3 million to shareholders during 2015.

The Company is suspending the cash payment of its semi-annual dividend payment effective the first quarter of 2016. The decision of the Board of
Directors has been made in view of the low gold price, the terms and conditions of the Dividend Policy and the requirements of the Canada Business
Corporations Act (“CBCA”). We continue to believe that a portion of funds from operations should be shared with our investors and look forward to
resuming dividend payments in an environment of stronger gold prices.

Capital Resources

($ millions)

Cash, cash equivalents and term deposits

Working capital

Restricted collateralized accounts

Debt – Current and long-term

2015

292.6

335.4

0.2

589.4

2014

501.3

646.2

0.3

603.5

Management believes that the working capital at December 31, 2015, together with future cash flows from operations and, where appropriate, selected
financing sources, including available credit lines, are sufficient to support our planned and foreseeable commitments, and dividends, if declared, in 2016
and beyond.

Within 1 year

2 to 3 years

4 to 5 years Over 5 years

Total

–

0.7

5.9

53.1

59 .7

–

0.7

6.0

2.5

9 .2

600.0

–

6.2

0.2

606 .4

–

6.1

–

6 .1

600.0

1.4

24.2

55.8

681 .4

Contractual Obligations
As at December 31, 2015

($ millions)

Debt

Capital leases

Operating leases

Purchase obligations

Totals

The table does not include interest on debt.

16 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

As at December 31, 2015, Hellas Gold had entered into off-take agreements pursuant to which Hellas Gold agreed to sell a total of 17,280 dry metric
tonnes of zinc concentrates, 9,860 dry metric tonnes of lead/silver concentrates, and 26,225 gold concentrate through the financial year ending
December 31, 2016.

In April 2007, Hellas agreed to sell to Silver Wheaton (Caymans) Ltd. (“Silver Wheaton”) all of the payable silver contained in lead concentrate produced
within an area of approximately seven square kilometres around Stratoni. The sale was made in consideration of a prepayment to Hellas of $57.5 million
in cash, plus a fixed price per ounce of payable silver to be delivered of the lesser of $3.90 and the prevailing market price per ounce, adjusted higher
every April by 1%. For the period April 2015 through March 2016, this amount is equal to $4.14 per ounce. In October 2015 the agreement with
Silver Wheaton was amended to provide an increase in the price per ounce of payable silver to be delivered to Hellas based on Hellas achieving certain
exploration drilling milestones.

In May 2013, the Company, in connection with Hellas Gold, entered into a Letter of Guarantee in favour of the Greek Ministry of Environment, Energy and
Climate Change, in the amount of €50.0 million, as security for the due and proper performance of rehabilitation works committed in connection with the
Environmental Impact Assessment approved for the Kassandra Mines (Stratoni, Olympias and Skouries). The Letter of Guarantee is renewed annually and
expires on July 26, 2026. The Letter of Guarantee has an annual fee of 57 basis points.

As at December 31, 2015, Tuprag Metal Madencilik Sanayi Ve Ticaret A.S. (“Tuprag”) had entered into off-take agreements pursuant to which Tuprag
agreed to sell a total of 36,000 dry metric tonnes of gold concentrate through the financial year ending December 31, 2016.

Debt

JINFENG

On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($15.4 million) working capital loan with China Commerce Bank (“CMB”). Each
draw-down had a fixed interest rate of 5.6% and had a term of six months. The facility had a term of up to one year, from January 16, 2013 to
January 14, 2014. In January 2014 the term of the facility was extended to January 28, 2015 and was not subsequently renewed. This facility was
unsecured. The proceeds were used to fund working capital obligations. As at December 31, 2015, Jinfeng repaid the full amount under this facility.

REVOLVING CREDIT FACILITY

The Company has a $375.0 million revolving credit facility with a syndicate of banks (“the credit facility” or “ARCA”). The ARCA matures on
November 23, 2016. The ARCA is secured by the shares of SG Resources and Tuprag, wholly owned subsidiaries of the Company. The ARCA contains
covenants that restrict, among other things, the ability of the Company to incur an aggregate unsecured indebtedness exceeding $850.0 million, incur
secured indebtedness up to $200.0 million, make distributions in certain circumstances, sell material assets and carry on a business other than one related to
the mining business. Significant financial covenants include a maximum debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)
of 3.5:1 and a minimum EBITDA to interest of 3:1. The Company is in compliance with these covenants at December 31, 2015. Loan interest is variable
depending on a leverage ratio pricing grid. The Company’s current leverage ratio is approximately 1.99:1. At this ratio, interest charges and fees are as follows:
LIBOR plus margin of 2.00% and undrawn standby fee of 0.50%. Fees of $4.7 million were paid in relation to the credit facility. This amount was deferred as
pre-payments for liquidity services and was amortized to financing costs. No amounts were drawn down under the ARCA as at December 31, 2015.

SENIOR NOTES

On December 10, 2012, the Company completed an offering of $600.0 million senior notes (“the notes”) at par value, with a coupon rate of 6.125%
due December 15, 2020. The notes pay interest semi-annually on June 15 and December 15. The Company received proceeds of $589.5 million from the
offering, which is net of the commission payment. The notes are redeemable by the Company in whole or in part, for cash:

a) At any time prior to December 15, 2016 at a redemption price equal to 100% of the aggregate principal amount of the notes at the treasury yield plus

50 basis points, and any accrued and unpaid interest;

b) on and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set forth

below, plus accrued and unpaid interest on the notes:

December 15, 2016
December 15, 2017
2018 and thereafter

103.063%
101.531%
100.000%

The early prepayment prices are to reimburse the lender for lost interest for the remaining term. The fair market value of the notes as at
December 31, 2015 is $526.9 million.

Eldorado Gold Financials 2015 17

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015
ENTRUSTED LOAN

In November 2010, Eastern Dragon, HSBC Bank (China) and QDML, our 90% owned subsidiary, entered into a RMB 12.0 million ($2.0 million) entrusted
loan agreement, which has been increased to RMB 720.0 million ($110.9 million) through a series of amendments. Under the terms of the entrusted loan,
QDML with its own funds entrusts HSBC Bank (China) to provide a loan facility in the name of QDML to Eastern Dragon. The loan can be drawn down
in tranches. Each draw-down bears interest fixed at the prevailing lending rate stipulated by the People’s Bank of China on the date of draw-down. Each
draw-down has a term of one year and can be rolled forward at the discretion of QDML. The interest rate on this loan as at December 31, 2015 was
4.59%. As at December 31, 2015, RMB 667.1 million ($102.7 million) had been drawn under the entrusted loan. Subsequent to December 31, 2015,
RMB 3.1 million ($0.5 million) was drawn under this loan. The entrusted loan has been recorded on a net settlement basis.

Defined Benefit Plans

The Company operates defined benefit pension plans in Canada with two components: a registered pension plan (“the Pension Plan”) and a
supplementary pension plan (“the SERP”). During the second quarter of 2012, the SERP was converted into a Retirement Compensation Arrangement
(“RCA”), a trust account. As it is a trust account, the assets in the account are protected from the Company’s creditors. The RCA requires the Company to
remit 50% of any contributions and any realized investment gains to the Receiver General of Canada as refundable tax.

These plans, which are available only to certain qualifying employees, provide benefits based on an employee’s years of service and final average earnings
at retirement. Annual contributions related to these plans are actuarially determined and made at or in excess of minimum requirements prescribed
by legislation.

Eldorado’s plans have actuarial valuations performed for funding purposes. The Pension Plan last had an actuarial valuation performed as of
January 1, 2014 for funding purposes with the next required valuation as of January 1, 2017. The SERP’s last valuation was on January 1, 2015 for funding
purposes and the next valuation will be prepared in accordance with the terms of the pension plan. The measurement date to determine the pension
obligation and assets for accounting purposes was December 31, 2015.

The SERP is designed to provide supplementary pension benefits to qualifying employees affected by the maximum pension limits under the
Income Tax Act pursuant to the registered Pension Plan. Further, the Company is not required to pre-fund any benefit obligation under the SERP.

Cash contributed to the Pension Plan and the SERP was $2.8 million (2014 – $2.7 million). Cash payments totalling $0.1 million were made directly to
beneficiaries during the year (2014 – $0.2 million). The Company expects to contribute $0.04 million to the Pension Plan and $1.7 million to the SERP
in 2016.

Equity

In 2015 the Company received net proceeds of $0.1 million for issuing 22,610 common shares related to stock options and warrants being exercised.

Common Shares Outstanding
– as of March 23, 2016

– as of December 31, 2015

Share purchase options – as of March 23, 2016
(Weighted average exercise price per share: CDN$7.67)

Managing Risk

716,587,134

32,290,135

This section describes the types of risks we are exposed to and our objectives and policies for managing them (please read the Company’s Annual
Information Form for additional information).

We monitor risk using our risk management review process. Management prepares a risk assessment report every quarter outlining our operational and
financial risks. The Board reviews the report to evaluate and assess the risks we are exposed to in various markets, and discusses the steps management
takes to manage and mitigate them.

18 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

FINANCIAL RISK

Liquidity Risk
Liquidity risk is the risk that we cannot meet our financial obligations. The Company mitigates liquidity risk through the implementation of its capital
management policy by spreading the maturity dates of investments over time, managing its capital expenditures and operational cash flows, and
maintaining adequate lines of credit. We use a rigorous planning, budgeting and forecasting process to help determine the funds we will need to support
our ongoing operations and our expansion plans. Management believes that the working capital at December 31, 2015, together with future cash
flows from operations and, where appropriate, selected financing sources, is sufficient to support our planned and foreseeable commitments in 2016
and beyond.

Credit Risk
Credit risk is the risk that the counterparty to a financial instrument will not meet its obligations and will cause the Company to incur a financial loss.
The Company limits counterparty risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to
each counterparty and monitoring the financial condition of counterparties. For cash, cash equivalents and accounts receivable, credit risk is represented
by the carrying amount on the balance sheet.

Payment for metal sales is normally in advance or within 15 days of shipment depending on the buyer. The historical level of customer defaults is negligible
which reduces the credit risk associated with trade receivables at December 31, 2015.

We invest our cash and cash equivalents in major financial institutions and in government issuances, according to our short-term investment policy.
The credit risk associated with these investments is considered to be low.

Currency Risk
We sell gold in US dollars, but our costs are mainly in US dollars, Canadian dollars, Turkish lira, Brazilian real, euros, Romanian lei, and Chinese renminbi.
An increase in the value of any of these currencies against the US dollar can increase our production costs and capital expenditures, which can affect
future cash flows. The Company has a risk management policy that includes hedging its foreign exchange exposure to reduce the risk associated with
currency fluctuations. The Company currently does not have any currency hedges, but may hedge in the future.

The table below shows our assets and liabilities and debt denominated in currencies other than the US dollar at December 31, 2015. We recognized a loss
of $16.8 million on foreign exchange this year, compared to a loss of $7.2 million in 2014.

(thousands)

Canadian Australian
dollar

dollar

Euro

Turkish
lira

Chinese
renminbi

Swedish Romanian Great British Brazilian
real

pound

krona

lei

172

4,737

2,165

357,183

1,774

8,014

244

21,559

Cash and cash equivalents

Marketable securities

Accounts receivable

and other

Accounts payable and

4,705

25,369

2,261

–

6,143

54,785

182,288

accrued liabilities

(12,111)

(192)

(58,596)

(97,073)

(434,573)

Other non-current liabilities

Debt

–

(2,158)

(11,116)

–

9,212

(6,027)

–

10,255

(3,953)

–

Net balance

20,224

(19)

(49,874)

(51,239)

104,898

1,774

11,199

244

27,861

Equivalent in US dollars

14,614

(14)

(54,143)

(17,622)

16,155

210

2,700

360

7,112

Accounts receivable and other current and long-term assets relate to goods and services taxes, income taxes, value-added taxes and insurance receivables.
Based on the balances at December 31, 2015, a 10% increase/decrease in the exchange rates on that date would have resulted in a decrease/increase of
approximately $3.1 million in profit before taxes.

Eldorado Gold Financials 2015 19

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Interest Rate Risk
Interest rates determine how much interest we pay on our debt, and how much we earn on our cash and cash equivalents, which can affect future
cash flows.

All of our debt is in the form of notes with a fixed interest rate of 6.125%. However, borrowings under the ARCA are at variable rates of interest and any
borrowings would expose the Company to interest rate cost and interest rate risk. In the future we may enter into interest rate swaps that involve the
exchange of floating for fixed rate interest payments in order to reduce interest rate volatility.

Price Risk
Our profitability depends on the price of gold, which is affected by many things, including the sale or purchase of gold by central banks and financial
institutions, interest rates, exchange rates, inflation or deflation, fluctuations in the value of the US dollar and foreign currencies, global and regional
supply and demand, and the political and economic conditions of the world’s major gold-producing countries. The cost of production, development and
exploration varies depending on the market prices of certain mining consumables, including diesel fuel and electricity. Electricity is regionally priced in
Turkey and China and semi-regulated by the federal governments of those countries, which reduces the risk of price fluctuations. The Company currently
does not have any long-term gold hedges or other commodity hedges, but we may hedge in the future.

Sensitivity Analysis for Key Variables

A change of

Would change our
after-tax net earnings by

Currency values against the US dollar

Price of gold (based on the expectations and assumptions we used in our 2016 outlook)

Interest rate on variable interest debt

Price of diesel fuel

10%

(1) The Company did not have any variable interest debt outstanding at the end of 2015.

OTHER RISKS AND UNCERTAINTIES

$3.1 million

$49.0 million

N/A (1)

$2.1 million

Exploration and Development
The cost and results of our exploration and development programs affect our profitability and value. The life of a mine is fixed based on its mineral
reserves, so we actively seek to replace and expand our reserves, mainly through exploration, acquisition and the development of our existing operations.
Exploring for minerals involves many risks and may not lead to new economically viable mining operations or yield new reserves to replace and expand
current reserves. Our reserve estimates are based on certain assumptions and affected by the inherent limitations of the estimation process.

Acquiring title to mineral properties is a detailed and time-consuming process. We take steps, in accordance with industry standards, to verify and secure
legal title to mineral properties that we have, or are seeking, an interest in. Although we take every precaution to ensure that legal title to our properties
is properly recorded in our name, there can be no assurance we will ultimately secure title on every property. Legal title to our properties depends on the
laws in the countries we operate in, and their appropriate and consistent application.

Operations
The business of gold mining involves many operational risks and hazards. We work to reduce the risks associated with our projects by setting high
operational standards, hiring and training appropriately skilled personnel, and making improvements to our operations. We maintain adequate insurance
to cover normal business risk. We rely on a number of key employees. Our success depends on attracting and retaining qualified personnel in a
competitive labour environment.

Environment
There may be environmental hazards at our mines or projects that we are unaware of. We may be liable for any associated losses, or be forced to do
extensive remedial cleanup or pay for governmental remedial cleanup, even if the hazards were caused by previous or existing owners or operators of the
property, past or present owners of adjacent properties or by natural conditions. The costs of any cleanup could have a material and adverse effect on our
operations and profitability.

20 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Laws, Regulations and Permits
Our activities are subject to extensive federal, provincial, state and local laws and regulations governing environmental protection and employee health
and safety. We must obtain government permits and provide associated financial assurance to conduct certain activities. We are also subject to various
conditions related to reclamation that are imposed under federal, state or provincial air, water quality and mine reclamation rules and permits.

We have budgeted for future capital and operating expenditures to obtain such permits and maintain compliance with these environmental, health and
safety laws; however, any changes to these laws in the future could have an adverse effect on our financial condition, liquidity or results of operations and
could delay our ability to obtain such permits.

If these laws are not complied with, we may face injunctions, damages and penalties, or our permits could be suspended or revoked. There is no
assurance that we have been, or will be, in compliance with environmental, health and safety laws at all times, that our compliance will not be challenged,
or that the cost of complying with current or future laws will not have a material and adverse effect on our future cash flow, results of operations and
financial condition.

Litigation
All industries, including the mining industry, are subject to legal claims that are with and without merit.

We are currently involved in various routine legal and regulatory proceedings. It’s unlikely that the final outcome of these routine proceedings will have a
material and adverse effect on our financial condition or results of operations; however, defense and settlement costs can be substantial, even for claims
that are without merit. Due to the inherent uncertainty of the litigation process and dealings with regulatory bodies, there is no assurance that any legal
or regulatory proceeding will be resolved in a manner that will not have a material and adverse effect on our future cash flow, results of operations or
financial condition.

Political Risk
We operate in five countries outside of North America: Turkey, China, Brazil, Romania and Greece. Our operations in these countries may be subject to
political, economic and other risks that may affect our future operations and financial position.

We review these and other risks related to the business in foreign countries on an ongoing basis. Such reviews may cause us to re-evaluate and realign our
business objectives and strategic direction from time to time, including considering suspension of projects or disposition of certain assets.

Other Information

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We are required to make estimates that affect the amount of assets, liabilities, contingent liabilities, revenue and expenses we report. We have identified
the following critical accounting policies and estimates. You can find all of our significant accounting policies in note 3 of our 2015 consolidated
financial statements.

Inventories
We value finished goods (including metal concentrates, doré and iron ore), work-in-process, heap leach ore and stockpiled ore at the average production
cost or its net realizable value – whichever is lower.

We consider ore stacked on our leach pads and in process at our mines as work-in-process inventory and record their value in earnings, and include them
in the cost of sales based on ounces of gold sold, using the following assumptions in our estimates:

■
■
■
■
■

the amount of gold we estimate is in the ore stacked on the leach pads
the amount of gold we expect to recover from the stacks
the amount of gold and other metals in the mill circuits
the amount of gold and other metals in concentrates
the gold and other metal prices we expect to realize when the gold and other metals is sold

If our estimates or assumptions are inaccurate, we could be required to write down the value we have recorded on our work-in-process inventories,
which would reduce our earnings and working capital. At December 31, 2015, the average cost of inventory was below its net realizable value.

Eldorado Gold Financials 2015 21

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015Reserves and Resources
Our estimates for Kişladağ, Efemçukuru, Tanjianshan, Jinfeng, White Mountain, Perama Hill, Tocantinzinho, Eastern Dragon, Skouries, Olympias, Stratoni,
Certej and Vila Nova are based on the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in compliance with
Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101), developed by the Canadian Securities Administrators.

You will not be able to compare the mineral reserve and resources information in this report with similar information from US companies. The United
States Securities & Exchange Commission (SEC) defines a mineral reserve as the part of a mineral deposit that can be economically and legally extracted or
produced. It does not recognize the terms measured, indicated and inferred mineral resources (mining terms under NI 43-101), and does not accept them
in reports and registration statements. You should not assume that:

■

the mineral reserves defined in this report qualify as reserves under SEC standards

the measured and indicated mineral resources in this report will ever be converted to reserves

the inferred mineral resources in this report are economically mineable, or will ever be upgraded to a higher category

Value Beyond Proven and Probable Reserves (“VBPP”)
On acquisition of a mineral property, we prepare an estimate of the fair value of the exploration potential of that property and record this amount as an
asset, called value beyond proven and probable, as at the date of acquisition. As part of our annual business cycle, we prepare estimates of proven and
probable reserves for each mineral property. The change in reserves, net of production, is used to determine the amount to be converted from VBPP to
proven and probable reserves subject to amortization.

Property, Plant and Equipment
We depreciate most of our mining properties, plant and equipment using the unit-of-production method, where the value of property is reduced as
reserves are depleted. We base this on mining rates and our estimates of reserves. If these change, we could be required to write down the recorded value
of our mining properties, plant and equipment, or to increase the amount of future depreciation, depletion and amortization expense, both of which
would reduce our earnings and net assets.

At each reporting period if there are indicators of an impairment of property, plant and equipment, we assess whether there has been impairment. In the
event of impairment we would be required to write down the recorded value of our mining properties, plant and equipment, which would reduce our
earnings and net assets.

For producing properties, we base our assessment on the future net cash flows we expect the property will generate. There may be an impairment if metal
prices have declined, production costs have increased, or metal recoveries are lower than previously estimated.

For non-producing properties, we base our assessment on whether there are factors that might indicate the need for a write-down. There may be an
impairment if we believe current economics or permitting issues will prevent us from recovering the costs we have deferred for the property.

Goodwill and Impairment Testing
We account for business combinations using the purchase method of accounting. We record the fair market value of assets acquired and liabilities
assumed as of the date of acquisition, and record any excess of the purchase price over fair value as goodwill. When the excess is negative it is recognized
immediately in income. The assumptions underlying fair value estimates are subject to significant risks and uncertainties.

We review and evaluate the carrying amount of goodwill in the fourth quarter of every fiscal year, and when events or changes in circumstances suggest
that the carrying amount may not be fully recoverable. Management is required to make a judgement with respect to which cash generating units (CGUs)
should be grouped together for goodwill testing purposes, including the assessment of operating segments, the highest level at which goodwill can
be tested.

To test the recoverability of the carrying amount of goodwill we compare the fair value of our CGUs or operating segments to their carrying amounts.
Calculating the estimated fair values of these CGUs or operating segments requires management to make estimates and assumptions with respect to
future production levels, operating and capital costs in our life-of-mine (“LOM”) plans, long-term metal prices, foreign exchange rates and discount
rates. Changes in any of the assumptions or estimates used in determining the fair values could impact the impairment analysis. If a CGU’s or operating
segment’s carrying value exceeds its fair value, we compare its carrying value to the implied fair value of its goodwill, and charge the amount the carrying
value exceeds fair value to operations.

At December 31, 2015, our consolidated balance sheet included $50.3 million in goodwill all pertaining to White Mountain.

22 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015Asset Retirement Obligations
We estimate the mine closure date, the discount rate, the inflation rate and the timing reclamation costs to determine the carrying value of an asset
retirement obligation.

Income Taxes
We record income taxes using income tax rates we expect to apply in the years we estimate the various temporary differences will be recovered or
settled. Where the tax laws and regulations are unclear or subject to varying interpretations, these estimates could change, and materially affect the
amount of income tax liabilities recorded at the balance sheet date.

Pension Plans
We use various actuarial assumptions to estimate our obligations and expenses, including a long-term estimate of the expected rate of return on plan
assets, the discount rate, the rate of salary escalation and the average remaining service period of active employees expected to receive benefits.

December 31, 2015

December 31, 2014

Key assumptions – pension plans

Pension Plan

SERP

Pension Plan

Expected long-term rate of return on plan assets

Discount rate – Beginning of year

Discount rate – End of year

Rate of salary escalation

Average remaining service period of active
employees expected to receive benefits

SERP

4.0%

4.8%

4.0%

2.5%

4.0%

2.0%

4.0%

2.0%

4.0%

4.8%

4.0%

2.5%

8.5 years

7.2 years

Eldorado Gold Financials 2015 23

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015

Upcoming Changes in Accounting Standards

The following standards have been published and are mandatory for Eldorado’s annual accounting periods no earlier than January 1, 2018:

■

IFRS 9 “Financial Instruments” – This standard was published in July 2014 and replaces the existing guidance in IAS 39, ‘Financial Instruments:
Recognition and Measurement’. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new
expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward
the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or
after January 1, 2018, with early adoption permitted. The Company is currently evaluating the extent of the impact of the adoption of this standard.

IFRS 15 “Revenue from Contracts with Customers” – This standard contains a single model that applies to contracts with customers and two
approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine
whether, how much and when revenue is recognized. New estimates and judgemental thresholds have been introduced, which may affect the amount
and/or timing of revenue recognized. This standard is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption
permitted. The Company does not expect this standard to have a material impact on its consolidated financial statements.

IFRS 16 “Leases” – This standard was published in January 2016 and replaces the existing guidance in IAS 17, ‘Leases’. IFRS 16 introduces a single
accounting model for lessees and for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee will be
required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make
lease payments. The accounting treatment for lessors will remain largely the same as under IAS 17. IFRS 16 is effective for annual reporting periods
beginning on or after January 1, 2019, with early adoption permitted. The Company is currently evaluating the extent of the impact of the adoption
of this standard.

There are other new standards, amendments to standards and interpretations that have been published and are not yet effective. The Company believes
they will have no material impact on its consolidated financial statements.

24 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to provide reasonable assurance that material information is gathered and reported to senior
management, including the CEO and CFO, as appropriate to allow for timely decisions about public disclosure.

Management, including the CEO and CFO, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as
at December 31, 2015, as defined in the rules of the US Securities and Exchange Commission and Canadian Securities Administrators. Based on this
evaluation, they concluded that our disclosure controls and procedures are effective in providing reasonable assurance that the information required to
be disclosed in reports we filed or submitted under United States and Canadian securities legislation was recorded, processed, summarized and reported
within the time periods specified in those rules.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Management, including the CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting, and used
the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) to evaluate the effectiveness of our controls
in 2015. Based on this evaluation, management concluded that our internal control over financial reporting was effective as at December 31, 2015 and
provided a reasonable assurance of the reliability of our financial reporting and preparation of the financial statements.

No matter how well designed, however, any system of internal control has inherent limitations. Even systems determined to be effective can provide only
reasonable assurance of the reliability of financial statement preparation and presentation.

KPMG LLP, an independent registered public accounting firm, has audited the effectiveness of internal control over financial reporting, and has expressed
their opinion in their report included with our annual consolidated financial statements in Form 40-F.

Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting during the year ended December 31, 2015 that have materially affected,
or are reasonably likely to materially affect, our internal control over financial reporting.

QUALIFIED PERSON

Except as otherwise noted, Paul Skayman, P. Eng., the Company’s Chief Operating Officer, is the Qualified Person under NI 43-101 who approved the
scientific or technical information contained in this MD&A and has verified the technical data disclosed in this document.

Eldorado Gold Financials 2015 25

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015FORWARD-LOOKING INFORMATION AND RISKS

This MD&A includes statements and information about what we expect to happen in the future. When we discuss our strategy, plans and future
financial and operating performance, or other things that have not yet happened in this review, we are making statements considered to be
forward-looking information or forward-looking statements under Canadian and United States securities laws. We refer to them in this document
as forward looking information.

Key things to understand about the forward-looking information in this document:

■

It typically includes words and phrases about the future, such as: plan, expect, forecast, intend, anticipate, believe, estimate, budget,
scheduled, may, could, would, might, will, as well as the negative of these words and phrases.

■ Although it represents our current views, which we consider to be reasonable, we can give no assurance that the forward-looking

■

the changing price of gold and currencies and the impact of any hedging activities

information will prove to be accurate.
It is based on a number of assumptions, including things like the future price of gold, anticipated costs and spending, and our ability
to achieve our goals.
It is also subject to the risks associated with our business, including:
■
■ actual and estimated production and cost of production
■ discrepancies between actual and estimated mineral reserves and resources
■
■
■
■ acquisition risks
■ other risks that are set out in our Annual Information Form

the speculative nature of gold exploration
risks associated with mining operations and development
regulatory, title, permitting and licensing risks

If our assumptions prove to be incorrect or the risks materialize, our actual results and events may vary materially from what we currently expect.

Forward-looking 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. We will not necessarily update this information unless we are required to by securities laws.

The Company’s operations are subject to a number of risks and other uncertainties, including risks related to the Company’s foreign operations,
government, environmental and other regulations and operating costs. Occurrence of various factors and uncertainties of risk cannot be accurately
predicted and could cause actual results to differ significantly from our current expectations and result in a material adverse effect on the Company’s
operations or profitability. A comprehensive discussion of the Company’s risks and uncertainties is set out in our Annual Information Form dated
March 27, 2015. By this reference we hereby incorporate this discussion as a part of this MD&A. The reader is directed to carefully review this discussion
for a proper understanding of these risks and uncertainties.

26 Eldorado Gold Financials 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)For the year ended December 31, 2015MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The management of Eldorado Gold Corporation is responsible for the integrity and fair presentation of the financial information contained in this annual
report. Where appropriate, the financial information, including financial statements, reflects amounts based on management’s best estimates and
judgements. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board. Financial information presented elsewhere in the annual report is consistent with that disclosed in the financial statements.

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management has established and
maintains a system of internal accounting control designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use,
financial information is reliable and accurate and transactions are properly recorded and executed in accordance with management’s authorization.
This system includes established policies and procedures, the selection and training of qualified personnel and an organization providing for appropriate
delegation of authority and segregation of responsibilities. Any system of internal control over financial reporting, no matter how well designed, has
inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement
preparation and presentation.

Management has a process in place to evaluate internal control over financial reporting based on the criteria established by the Committee of Sponsoring
Organizations of the Treadway Commission (2013) in Internal Control – Integrated Framework. Based on this assessment, management has concluded that
as at December 31, 2015, the Company’s internal control over financial reporting was effective.

The Board of Directors oversees management’s responsibility for financial reporting and internal control systems through an Audit Committee, which
is composed entirely of independent directors. The Audit Committee meets periodically with management, the Company’s outside advisors and the
independent auditors to review the scope and results of the annual audit and to review the financial statements and related financial reporting and
internal control matters before the financial statements are approved by the Board of Directors and submitted to the Company’s shareholders.

KPMG, an independent registered public accounting firm, appointed by the shareholders, has audited the Company’s financial statements in accordance
with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) and has
expressed their opinion in their report titled “Independent Auditors’ Report of Registered Public Accounting Firm”. The effectiveness of the Company’s
internal control over financial reporting as at December 31, 2015 has also been audited by KPMG, and their opinion is included in their report titled
“Report of Independent Registered Public Accounting Firm”.

Paul N . Wright
President & Chief Executive Officer

Fabiana E . Chubbs
Chief Financial Officer

March 23, 2016
Vancouver, British Columbia, Canada

Eldorado Gold Financials 2015 27

INDEPENDENT AUDITORS’ REPORT OF REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Eldorado Gold Corporation

We have audited the accompanying consolidated financial statements of Eldorado Gold Corporation, which comprise the consolidated balance sheets as
at December 31, 2015 and December 31, 2014, the consolidated income statements, statements of comprehensive income, changes in equity and cash
flows for each of the years in the two-year period ended December 31, 2015, and notes, comprising a summary of significant accounting policies and
other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial
Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to
enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance
with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair
presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Eldorado Gold
Corporation as at December 31, 2015 and December 31, 2014, and its consolidated financial performance and its consolidated cash flows for each of
the years in the two-year period ended December 31, 2015, in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board.

Other Matter
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Eldorado Gold Corporation’s
internal control over financial reporting as of December 31, 2015, based on the criteria established in Internal Control – Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (2013), and our report dated March 23, 2016 expressed an unmodified
(unqualified) opinion on the effectiveness of Eldorado Gold Corporation’s internal control over financial reporting.

Chartered Accountants
Vancouver, Canada

March 23, 2016

28 Eldorado Gold Financials 2015

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Eldorado Gold Corporation

We have audited Eldorado Gold Corporation’s (the Company) internal control over financial reporting as of December 31, 2015, based on criteria
established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013).
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness
of internal control over financial reporting, included in the accompanying report titled “Management’s Responsibility for Financial Reporting”.
Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on
criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013).

We also have audited, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight
Board (United States), the consolidated balance sheets of the Company as of December 31, 2015 and December 31, 2014 and the related consolidated
income statements, statements of comprehensive income, changes in equity and cash flows for each of the years in the two-year period ended
December 31, 2015, and our report dated March 23, 2016 expressed an unmodified (unqualified) opinion on those consolidated financial statements.

Chartered Accountants
Vancouver, Canada

March 23, 2016

Eldorado Gold Financials 2015 29

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of US dollars)

For the year ended December 31

Note

2015

2014

288,189

4,382

248

18,331

85,468

175,626

572,244

–

83,147

10,897

4,747,759

50,276

5,464,323

236,819

–

236,819

589,395

6,166

102,636

607,871

498,514

2,800

262

4,251

117,995

223,412

847,234

104

43,605

12,790

5,963,611

526,296

7,393,640

184,712

16,343

201,055

587,201

49,194

109,069

869,207

1,542,887

1,815,726

5,319,101

(10,211)

47,236

(20,572)

(1,583,873)

3,751,681

169,755

3,921,436

5,464,323

5,318,950

(12,949)

38,430

(18,127)

(31,721)

5,294,583

283,331

5,577,914

7,393,640

Assets

Current assets

Cash and cash equivalents

Term deposits

Restricted cash

Marketable securities

Accounts receivable and other

Inventories

Deferred income tax assets

Other assets

Defined benefit pension plan

Property, plant and equipment

Goodwill

Liabilities & equity

Current liabilities

Accounts payable and accrued liabilities

Current debt

Debt

Other non-current liability

Asset retirement obligations

Deferred income tax liabilities

Equity

Share capital

Treasury stock

Contributed surplus

Accumulated other comprehensive loss

Deficit

Total equity attributable to shareholders of the Company

Attributable to non-controlling interests

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Board of Directors

John Webster
Director

Date of approval: March 23, 2016

30 Eldorado Gold Financials 2015

Paul N . Wright
Director

CONSOLIDATED INCOME STATEMENTS

(Expressed in thousands of US dollars except per share amounts)

For the year ended December 31

Note

2015

2014

Revenue

Metal sales

Cost of sales

Production costs

Inventory write-down

Depreciation and amortization

Gross profit

Exploration expenses

Mine standby costs

General and administrative expenses

Defined benefit pension plan expense

Share-based payments

Impairment loss on property, plant and equipment and goodwill

11, 12

Other write-down of assets

Foreign exchange loss

Operating profit (loss)

Loss on disposal of assets

Loss on marketable securities and other investments

Loss on investments in associates

Other income

Asset retirement obligation accretion

Interest and financing costs

Profit (loss) before income tax

Income tax expense (recovery)

Profit (loss) for the year

Attributable to:

Shareholders of the Company

Non-controlling interests

Profit (loss) for the year

Weighted average number of shares outstanding (thousands)

Basic

Diluted

Earnings per share attributable to shareholders of the Company:

Basic earnings (loss) per share

Diluted earnings (loss) per share

The accompanying notes are an integral part of these consolidated financial statements.

863,292

1,067,899

469,818

12,024

178,978

660,820

202,472

17,853

10,244

56,191

1,670

15,877

1,881,665

16,451

16,794

(1,814,273)

159

–

(5,661)

2,411

18,328

(1,829,510)

(184,368)

(1,645,142)

(1,540,895)

(104,247)

(1,645,142)

716,586

716,590

(2.15)

508,280

13,469

177,227

698,976

368,923

16,230

–

68,196

1,620

18,775

–

3,001

7,176

253,925

1,926

2,415

102

(9,436)

2,326

28,779

227,813

121,269

106,544

102,607

3,937

106,544

716,288

716,300

0.14

Eldorado Gold Financials 2015 31

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of US dollars)

For the year ended December 31

Note

Profit (loss) for the year

Other comprehensive income (loss):

Change in fair value of available-for-sale financial assets

Realized gains on disposal of available-for-sale financial assets

Actuarial gains on severance obligation

Actuarial losses on defined benefit pension plans

Total other comprehensive loss for the year

2015

(1,645,142)

(2,232)

–

642

(855)

(2,445)

2014

106,544

(2,353)

1,878

–

(596)

(1,071)

Total comprehensive income (loss) for the year

(1,647,587)

105,473

Attributable to:

Shareholders of the Company

Non-controlling interests

The accompanying notes are an integral part of these consolidated financial statements.

(1,543,340)

(104,247)

(1,647,587)

101,536

3,937

105,473

32 Eldorado Gold Financials 2015

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of US dollars)

For the year ended December 31

Note

2015

2014

Cash flows generated from (used in):

Operating activities

Profit (loss) for the year

Items not affecting cash:

Asset retirement obligation accretion

Depreciation and amortization

Unrealized foreign exchange loss

Deferred income tax expense (recovery)

Loss on disposal of assets

Loss on investment in associates

Other write-down of assets

Impairment loss on property, plant and equipment and goodwill

Loss on marketable securities and other investments

Share-based payments

Defined benefit pension plan expense

Property reclamation payments

Changes in non-cash working capital

Investing activities

Net cash paid on acquisition of subsidiary

Purchase of property, plant and equipment

Proceeds from the sale of property, plant and equipment

Proceeds on production of tailings retreatment

Purchase of marketable securities

Proceeds from the sale of marketable securities

Redemption of (investment in) term deposits

Decrease (increase) in restricted cash

Financing activities

Issuance of common shares for cash

Proceeds from contributions from non-controlling interest

Dividend paid to shareholders

Dividend paid to non-controlling interests

Purchase of treasury stock

Long-term and bank debt proceeds

Long-term and bank debt repayments

Net decrease in cash and cash equivalents

Cash and cash equivalents – Beginning of year

5(a)

(1,645,142)

2,411

178,978

2,250

(261,232)

159

–

16,451

1,881,665

–

15,877

1,670

193,087

(722)

29,393

221,758

–

(396,027)

3,481

17,918

(16,312)

–

(1,582)

(345)

(392,867)

121

1,600

(11,257)

(10,929)

(2,394)

8,171

(24,528)

(39,216)

(210,325)

498,514

106,544

2,326

177,227

1,154

27,795

1,926

102

3,001

–

2,415

18,775

1,620

342,885

(3,038)

(56,502)

283,345

(30,318)

(410,690)

147

26,599

(3,313)

1,521

31,902

(384,121)

1,996

40,000

(13,010)

(12,466)

(6,413)

32,625

(32,622)

10,110

(90,666)

589,180

Cash and cash equivalents – End of year

288,189

498,514

The accompanying notes are an integral part of these consolidated financial statements.

Eldorado Gold Financials 2015 33

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of US dollars)

For the year ended December 31

Note

2015

2014

Share capital

Balance – Beginning of year

Shares issued upon exercise of share options, for cash

Transfer of contributed surplus on exercise of options

Transfer of contributed surplus on exercise of deferred phantom units

5,318,950

5,314,589

121

–

1,996

2,141

224

Balance – End of year

5,319,101

5,318,950

Treasury stock

Balance – Beginning of year

Purchase of treasury stock

Shares redeemed upon exercise of restricted share units

Balance – End of year

Contributed surplus

Balance – Beginning of year

Share-based payments

Shares redeemed upon exercise of restricted share units

Recognition of other non-current liability and related costs

Transfer to share capital on exercise of options and deferred phantom units

Balance – End of year

Accumulated other comprehensive loss

Balance – Beginning of year

Other comprehensive loss for the year

Balance – End of year

Deficit

Balance – Beginning of year

Dividends paid

Profit (loss) attributable to shareholders of the Company

Balance – End of year

Total equity attributable to shareholders of the Company

Non-controlling interests

Balance – Beginning of year

Profit (loss) attributable to non-controlling interests

Dividends declared to non-controlling interests

Increase during the period

Balance – End of year

(12,949)

(2,394)

5,132

(10,211)

38,430

16,258

(5,132)

(2,290)

(30)

47,236

(18,127)

(2,445)

(20,572)

(31,721)

(11,257)

(1,540,895)

(1,583,873)

3,751,681

283,331

(104,247)

(10,929)

1,600

169,755

(10,953)

(6,413)

4,417

(12,949)

78,557

18,503

(4,417)

(51,848)

(2,365)

38,430

(17,056)

(1,071)

(18,127)

(121,318)

(13,010)

102,607

(31,721)

5,294,583

251,045

3,937

(11,651)

40,000

283,331

Total equity

3,921,436

5,577,914

The accompanying notes are an integral part of these consolidated financial statements.

34 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise stated)

1 . General Information

Eldorado Gold Corporation (“Eldorado” or the “Company”) is a gold exploration, development and mining company. The Company has operations and
ongoing exploration and development projects in Turkey, China, Greece, Brazil and Romania. The Company acquired Glory Resources Ltd. (“Glory”) in
March 2014. Glory has the Sapes project in Thrace, Greece.

Eldorado is a public company which is listed on the Toronto Stock Exchange and New York Stock Exchange and is incorporated and domiciled in Canada.

2 . Basis of Preparation

These consolidated financial statements, including comparatives, have been prepared using accounting policies in compliance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Certain prior period balances have been reclassified to conform to current period presentation.

The consolidated financial statements were authorized for issue by the Board of Directors on March 23, 2016.

UPCOMING CHANGES IN ACCOUNTING STANDARDS

The following standards have been published and are mandatory for Eldorado’s annual accounting periods no earlier than January 1, 2018:

■

IFRS 9 ‘Financial Instruments’ – This standard was published in July 2014 and replaces the existing guidance in IAS 39, ‘Financial Instruments:
Recognition and Measurement’. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new
expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward
the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or
after January 1, 2018, with early adoption permitted. The Company is currently evaluating the extent of the impact of the adoption of this standard.

IFRS 15 ‘Revenue from Contracts with Customers’ – This standard contains a single model that applies to contracts with customers and two approaches
to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether,
how much and when revenue is recognized. New estimates and judgemental thresholds have been introduced, which may affect the amount
and/or timing of revenue recognized. This standard is effective for annual reporting periods beginning on or after January 1, 2018, with early
adoption permitted. The Company does not expect this standard to have a material impact on its consolidated financial statements.

IFRS 16 ‘Leases’ – This standard was published in January 2016 and replaces the existing guidance in IAS 17, ‘Leases’. IFRS 16 introduces a single
accounting model for lessees and for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee will be
required to recognize a right-of-use asset, representing its right to use the underlying asset, and a lease liability, representing its obligation to make
lease payments. The accounting treatment for lessors will remain largely the same as under IAS 17. IFRS 16 is effective for annual reporting periods
beginning on or after January 1, 2019, with early adoption permitted. The Company is currently evaluating the extent of the impact of the adoption
of this standard.

Eldorado Gold Financials 2015 35

3 . Significant Accounting Policies

The principal accounting policies set out below have been applied consistently to all years presented in these consolidated financial statements,
and have been applied consistently by all Eldorado entities.

3 .1 BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

(i) Subsidiaries and Business Combinations

Subsidiaries are entities controlled by Eldorado. Control exists when Eldorado is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity. In assessing control, potential voting rights that currently
are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the date that control ceases.

The acquisition method of accounting is used to account for business acquisitions. The cost of an acquisition is measured as the fair value of the
assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of
any non-controlling interest.

The excess of the cost of acquisition over the fair value of Eldorado’s share of the identifiable net assets acquired is recorded as goodwill. If the cost
of acquisition is less than the fair value of the net assets acquired, the difference, or gain is recognized directly in the income statement.

Transaction costs, other than those associated with the issue of debt or equity securities, which the Company incurs in connection with a business
combination, are expensed as incurred.

The most significant wholly-owned and partially-owned subsidiaries of Eldorado, are presented below:

Subsidiary
projects owned

Location

Ownership interest

Status

Operations and development

Tüprag Metal Madencilik Sanayi ve Ticaret AS (“Tüprag”) Turkey

100%

Consolidated

Kişladağ Mine

Efemçukuru Mine

Qinghai Dachaidan Mining Ltd. (“QDML”)

Sino Guizhou Jinfeng Mining Ltd. (“Jinfeng”)

Sino Gold Jilin BMZ Mining Ltd.

Heihe Rockmining Ltd. (“Eastern Dragon”)

Hellas Gold SA (“Hellas”)

Olympias Project

Skouries Project

Thracean Gold Mining SA

Glory Resources Ltd.

Unamgen Mineração e Metalurgia S/A

Brazauro Resources Corporation (“Brazauro”)

Deva Gold SA (“Deva”)

China

Greece

Brazil

Romania

90%

82%

95%

75%

95%

Consolidated

TJS Mine

Jinfeng Mine

White Mountain Mine

Eastern Dragon Project

Stratoni Mine

100%

Consolidated

100%

Consolidated

100%

Consolidated

100%

Consolidated

81%

Consolidated

Perama Hill Project

Sapes Project

Vila Nova Iron Ore Mine

Tocantinzinho Project

Certej Project

(ii)

Investments in Associates (Equity Accounted for Investees)
Associates are those entities where Eldorado has the ability to exercise significant influence, but not control, over the financial and operating policies.
Significant influence is presumed to exist when the Company holds between 20% and 50% of the voting power of another entity.

Associates are accounted for using the equity method (equity accounted investees) and are recognized initially at cost. The consolidated financial
statements include Eldorado’s share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the
accounting policies with those of Eldorado, from the date that significant influence commences until the date that significant influence ceases.

36 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-
term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Company has an obligation to
make, or has made, payments on behalf of the investee.

At each balance sheet date, each investment in associates is assessed for indicators of impairment.

(iii) Transactions with Non-Controlling Interests

For purchases from non-controlling interests, the difference between any consideration paid and the relevant share of the carrying value of net assets
of the subsidiary acquired is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

Eldorado treats transactions in the ordinary course of business with non-controlling interests as transactions with third parties.

(iv) Transactions Eliminated on Consolidation

Intra-company and intercompany balances and transactions, and any unrealized income and expenses arising from all such transactions, are
eliminated in preparing the consolidated financial statements.

3 .2 FOREIGN CURRENCY TRANSLATION

(i) Functional and Presentation Currency

Items included in the financial statements of each of Eldorado’s entities are measured using the currency of the primary economic environment
in which the entity operates (the functional currency). The consolidated financial statements are presented in US dollars, which is the Company’s
functional and presentation currency, as well as the functional currency of all significant subsidiaries.

(ii) Transactions and Balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate
at that date. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and
liabilities denominated in foreign currencies, are recognized in the income statement.

3 .3 PROPERTY, PLANT AND EQUIPMENT

(i) Cost and Valuation

Property, plant and equipment are carried at cost less accumulated depreciation and any impairment in value. When an asset is disposed of,
it is derecognized and the difference between its carrying value and net sales proceeds is recognized as a gain or loss in the income statement.

(ii) Property, Plant and Equipment

Property, plant and equipment include expenditures incurred on properties under development, significant payments related to the acquisition of
land and mineral rights and property, plant and equipment which are recorded at cost on initial acquisition. Cost includes the purchase price and the
directly attributable costs of acquisition or construction required to bring an asset to the location and condition necessary for the asset to be capable
of operating in the manner intended by management.

Eldorado Gold Financials 2015 37

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

(iii) Depreciation

Mine development costs, property, plant and equipment and other mining assets whose estimated useful life is the same as the remaining life of the
mine are depreciated, depleted and amortized over a mine’s estimated life using the units-of-production method calculated based on proven and
probable reserves.

Capitalized development costs related to a multi-pit operation are amortized on a pit-by-pit basis over the pit’s estimated life using the units-of-
production method calculated based on proven and probable reserves related to each pit.

Property, plant and equipment and other assets whose estimated useful lives are less than the remaining life of the mine are depreciated on a
straight-line basis over the estimated useful life of the assets.

Where components of an asset have a different useful life and cost that is significant to the total cost of the asset, depreciation is calculated on each
separate component.

Depreciation methods, useful lives and residual values are reviewed at the end of each year and adjusted if appropriate.

(iv) Subsequent Costs

Expenditure on major maintenance or repairs includes the cost of replacement parts of assets and overhaul costs. Where an asset or part of an asset
is replaced and it is probable that further future economic benefit will flow to the Company, the expenditure is capitalized. Similarly, overhaul costs
associated with major maintenance are capitalized when it is probable that future economic benefit will flow to the Company and any remaining
costs of previous overhauls relating to the same asset are derecognized. All other expenditures are expensed as incurred.

(v) Deferred Stripping Costs

Stripping costs incurred during the production phase of a mine are considered production costs and included in the cost of inventory produced
during the period in which the stripping costs are incurred, unless the stripping activity can be shown to be a betterment of the mineral property,
in which case the stripping costs are capitalized. Betterment occurs when stripping activity increases future output of the mine by providing access
to additional reserves. Stripping costs incurred to prepare the ore body for extraction are capitalized as mine development costs (pre-stripping).
Capitalized stripping costs are amortized on a unit-of-production basis over the proven and probable reserves to which they relate.

(vi) Borrowing Costs

Borrowing costs are expensed as incurred except where they are directly attributable to the financing of construction or development of qualifying
assets requiring a substantial period of time to prepare for their intended future use. Interest is capitalized up to the date when substantially all the
activities necessary to prepare the asset for its intended use are complete.

Investment income arising on the temporary investment of proceeds from borrowings is offset against borrowing costs being capitalized.

(vii) Mine Standby and Restructuring Costs

Mine standby costs and costs related to restructuring a mining operation are charged directly to expense in the period incurred. Mine standby costs
include labour, maintenance and mine support costs during temporary shutdowns of a mine.

3 .4 EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURES

(i) Exploration

Exploration expenditures reflect the costs related to the initial search for mineral deposits with economic potential or obtaining more information
about existing mineral deposits. Exploration expenditures typically include costs associated with the acquisition of mineral licences, prospecting,
sampling, mapping, diamond drilling and other work involved in searching for ore. All expenditures relating to exploration activities are expensed as
incurred except for the costs associated with the acquisition of mineral licences which are capitalized.

38 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

(ii) Evaluation

Evaluation expenditures reflect costs incurred at projects related to establishing the technical and commercial viability of mineral deposits identified
through exploration or acquired through a business combination or asset acquisition.

Evaluation expenditures include the cost of:

a) establishing the volume and grade of deposits through drilling of core samples, trenching and sampling activities in an ore body that is classified

as either a mineral resource or a proven and probable reserve;

b) determining the optimal methods of extraction and metallurgical and treatment processes;
c) studies related to surveying, transportation and infrastructure requirements;
d) permitting activities; and
e) economic evaluations to determine whether development of the mineralized material is commercially justified, including scoping, prefeasibility

and final feasibility studies.

Evaluation expenditures are capitalized if management determines that there is evidence to support probability of generating positive economic
returns in the future. A mineral resource is considered to have economic potential when it is expected the technical feasibility and commercial viability
of extraction of the mineral resource is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management
determines that the following conditions have been met:

■ There is a probable future benefit that will contribute to future cash inflows;

■ The Company can obtain the benefit and control access to it; and

■ The transaction or event giving rise to the benefit has already occurred.

The evaluation phase is complete once technical feasibility of the extraction of the mineral deposit has been determined through preparation of a
reserve and resource statement, including a mining plan as well as receipt of required permits and approval of the Board of Directors to proceed with
development of the mine.

(iii) Development

Development expenditures are those that are incurred during the phase of preparing a mineral deposit for extraction and processing. These include
pre-stripping costs and underground development costs to gain access to the ore that is suitable for sustaining commercial mining, preparing land,
construction of plant, equipment and buildings and costs of commissioning the mine and mill.

Expenditures incurred on development projects continue to be capitalized until the mine and mill moves into the production stage. The Company
assesses each mine construction project to determine when a mine moves into production stage. The criteria used to assess the start date are
determined based on the nature of each mine construction project, such as the complexity of a plant or its location. Various relevant criteria are
considered to assess when the mine is substantially complete and ready for its intended use and moved into the production stage. Some of the
criteria considered would include, but are not limited to, the following: (1) the level of capital expenditures compared to construction cost estimates;
(2) the completion of a reasonable period of testing of mine plant and equipment; (3) the ability to produce minerals in saleable form (within
specification); and (4) the ability to sustain ongoing production of minerals.

Alternatively, if the factors that impact the technical feasibility and commercial viability of a project change and no longer support the probability of
generating positive economic returns in the future, expenditures will no longer be capitalized.

3 .5 GOODWILL

Goodwill represents the excess of the cost of an acquisition over the fair value of Eldorado’s share of the net assets of the acquired business at the
date of acquisition. When the excess is negative (negative goodwill), it is recognized immediately in income. Goodwill on acquisition of subsidiaries
and businesses is shown separately as goodwill in the financial statements. Goodwill on acquisition of associates is included in investments in
significantly influenced companies and tested for impairment as part of the overall investment.

Eldorado Gold Financials 2015 39

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

Goodwill is carried at cost less accumulated impairment losses and tested annually for impairment. Impairment losses on goodwill are not reversed.
The impairment testing is performed annually or more frequently if events or changes in circumstances indicate that it may be impaired.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash generating units
or groups of cash generating units (“CGUs”) that are expected to benefit from the business combination in which the goodwill arose.
If the composition of one or more cash generating units to which goodwill has been allocated changes due to a re-organization, the goodwill
is re-allocated to the units affected.

The gain or loss on disposal of an entity includes the carrying amount of goodwill relating to the entity sold.

3 .6 IMPAIRMENT OF NON-FINANCIAL ASSETS

Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment test is performed when the impairment indicators demonstrate that the carrying amount may not be recoverable, and it
is reviewed at least annually.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less cost to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash flows or CGUs.

Value in use is determined as the present value of the future cash flows expected to be derived from an asset or CGU based on the detailed mine
and/or production plans. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.

Fair value less cost to sell is the amount obtainable from the sale of an asset or CGU in an arm’s length transaction between knowledgeable, willing
parties, less the costs of disposal. For mining assets, fair value less cost to sell is often estimated using a discounted cash flow approach because a
fair value is not readily available from an active market or binding sale agreement. Estimated future cash flows are calculated using estimated future
prices, mineral reserves and resources, operating and capital costs. All assumptions used are those that an independent market participant would
consider appropriate. Non-financial assets other than goodwill impaired in prior periods are reviewed for possible reversal of the impairment when
events or changes in circumstances indicate that an item is no longer impaired.

3 .7 FINANCIAL ASSETS

(i) Classification

The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available-for-sale.
The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial
assets at initial recognition.

(a) Financial Assets at Fair Value Through Profit or Loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired
principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges.

(b) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are
included in current assets, except for those with maturities of greater than 12 months after the end of the reporting period, which are classified as
non-current assets. Eldorado’s loans and receivables comprise cash and cash equivalents, restricted cash, accounts receivable and other, and other
assets in the balance sheet.

40 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

(c) Available-for-sale Financial Assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other
categories. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the
end of the reporting period. Eldorado’s available-for-sale financial assets comprise marketable securities not held for the purpose of trading.

(ii) Recognition and Measurement

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.
Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income
statement. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and
the Company has transferred substantially all risks and rewards of ownership.

Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables
are subsequently carried at amortized cost using the effective interest method.

Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are presented in the income
statement within ‘Gain or loss on marketable securities’ in the period in which they arise. Dividend income from ‘financial assets at fair value through
profit or loss’ is recognized in the income statement as part of other income when Eldorado’s right to receive payments is established.

Gains or losses arising from changes in the fair value of available-for-sale financial assets are recognized in other comprehensive income and
presented within equity. When marketable securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments
recognized in other comprehensive income are included in the income statement as ‘Gain or loss on marketable securities’.

(iii) Impairment of Financial Assets

The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is
impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment
as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact
on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount, and the
present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-
for-sale financial asset is calculated by reference to its fair value. In the case of equity instruments classified as available-for-sale, a significant or
prolonged decline in the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence exists for available-
for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment
loss on that financial asset that was previously recognized in profit or loss – is removed from equity and recognized in the income statement.

All impairment losses are recognized in profit or loss. Any cumulative loss in respect of an available-for-sale financial asset recognized previously
in equity is transferred to profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognized. Impairment losses recognized for equity securities are not reversed.

Eldorado Gold Financials 2015 41

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

3 .8 DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives are recognized initially at fair value on the date a derivative contract is entered into. Subsequent to initial recognition, derivatives are
measured at fair value, and changes in fair value thereafter are recognized in profit and loss. Fair values for derivative instruments are determined
using valuation techniques, using assumptions based on market conditions existing at the balance sheet date. Derivatives are not accounted for using
hedge accounting.

3 .9 INVENTORIES

Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each product to its present location and condition are
accounted for as follows:

i) Product inventory consists of stockpiled ore, ore on leach pads, crushed ore, in-circuit material at properties with milling or processing operations,
gold concentrate, other metal concentrate, iron ore stockpile awaiting shipment, doré awaiting refinement and unsold bullion. Product inventory
costs consist of direct production costs including mining, crushing and processing; site administration costs; and allocated indirect costs, including
depreciation and amortization of property, plant and equipment.

Inventory costs are charged to production costs on the basis of quantity of metal sold. The Company regularly evaluates and refines estimates
used in determining the costs charged to production costs and costs absorbed into inventory carrying values based upon actual gold recoveries
and operating plans.

Net realizable value is the estimated selling price, less the estimated costs of completion and selling expenses.

ii) Materials and supplies inventory consists of consumables used in operations, such as fuel, chemicals, reagents and spare parts, which are valued
at the lower of average cost and net realizable value and, where appropriate, less a provision for obsolescence. Costs include acquisition, freight
and other directly attributable costs.

3 .10 TRADE RECEIVABLES

Trade receivables are amounts due from customers for bullion, doré, gold concentrate, other metal concentrates and iron ore sold in the ordinary
course of business.

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less a
provision for impairment where neccesary.

3 .11 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with maturities at
the date of acquisition of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the
balance sheet.

3 .12 SHARE CAPITAL

Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as
a deduction from equity, net of any tax effects. Common shares held by the Company are classified as treasury stock and recorded as a reduction
of shareholders’ equity.

3 .13 TRADE PAYABLES

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts
payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer).
If not, they are presented as non-current liabilities.

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

42 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

3 .14 DEBT AND BORROWINGS

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost, calculated
using the effective interest method. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the
income statement over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities and other borrowings are recognized as transaction costs of the loan to the extent that it is probable
that some or all of the facility and other borrowings will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent
there is no evidence that it is probable that some or all of the facility and borrowings will be drawn down, the fee is capitalized as a pre-payment for
liquidity services and amortized over the period of the loan to which it relates.

3 .15 CURRENT AND DEFERRED INCOME TAX

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates
to items recognized either in other comprehensive income or directly in equity, in which case it is recognized in other comprehensive income or in
equity, respectively.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years. Taxes on income in the interim periods are accrued using the tax rate that would be
applicable to expected total annual earnings. The tax rate used is the rate that is substantively enacted.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or
loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference
can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.

3 .16 EMPLOYEE BENEFITS

(i) Defined Benefit Plans

Certain employees have entitlements under Company pension plans, which are defined benefit pension plans. For defined benefit plans, the level of
benefit provided is based on the length of service and earnings of the person entitled.

The cost of the defined benefit plan is determined using the projected unit credit method. The related pension liability recognized in the consolidated
balance sheet is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets.

The Company obtains actuarial valuations for defined benefit plans for each balance sheet date. Actuarial assumptions used in the determination of
defined benefit pension plan liabilities are based on best estimates, including rate of salary escalation and expected retirement dates of employees.
The discount rate is based on high-quality bond yields, as per IAS 19. The assumption used to determine the interest income on plan assets is equal
to the discount rate, as per IAS 19.

Actuarial gains and losses are recognized in full in the period in which they occur in other comprehensive income, without recycling to the statement
of income in subsequent periods. Current service cost, the vested element of any past service cost, the interest income on plan assets and the interest
arising on the pension liability are included in the same line items in the statement of income as the related compensation cost.

Past service costs are recognized immediately to the extent the benefits are vested, and otherwise are amortized on a straight-line basis over the
average period until the benefits become vested.

Eldorado Gold Financials 2015 43

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

(ii) Termination Benefits

Eldorado recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according
to a detailed formal plan without possibility of withdrawal, or providing benefits as a result of an offer made to encourage voluntary termination.
Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(iii) Short-Term Benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is
recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if Eldorado has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

3 .17 SHARE-BASED PAYMENT TRANSACTIONS

The Company applies the fair value method of accounting for all stock option awards and equity-settled restricted share units and performance share
units. Under this method the Company recognizes a compensation expense for all stock options awarded to employees, based on the fair value
of the options on the date of grant which is determined by using the Black-Scholes option pricing model. For equity-settled restricted share units,
compensation expense is recognized based on the quoted market value of the shares. For equity-settled performance share units, compensation
expense is recognized based on the fair value of the shares on the date of grant which is determined by a valuator.

The fair value of the options, restricted share units and performance share units are expensed over the vesting period of the awards with a
corresponding increase in equity. No expense is recognized for awards that do not ultimately vest. Deferred share units are liability awards recorded
at the quoted market price at the grant date. The corresponding liability is marked to market at each reporting date.

3 .18 PROVISIONS

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and
it is probable that an outflow of economic benefits will be required to settle the obligation. They are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

(i) Rehabilitation and Restoration

Provision is made for mine rehabilitation and restoration when an obligation is incurred. The provision is recognized as a liability with a corresponding
asset recognized in relation to the mine site. At each reporting date the rehabilitation liability is re-measured in line with changes in discount rates,
and timing or amount of the costs to be incurred. The rehabilitation liability is classified as an ‘Asset retirement obligation’ on the balance sheet.

The provision recognized represents management’s best estimate of the present value of the future costs required. Significant estimates and
assumptions are made in determining the amount of restoration and rehabilitation provisions. Those estimates and assumptions deal with
uncertainties such as: requirements of the relevant legal and regulatory frameworks, the magnitude of necessary remediation activities, and the
timing, extent and costs of required restoration and rehabilitation activity.

These uncertainties may result in future actual expenditure differing from the amounts currently provided. The provision recognized is periodically
reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated future costs for operating sites are
recognized in the balance sheet by adjusting both the restoration and rehabilitation asset and provision. Such changes give rise to a change in future
depreciation and financial charges.

44 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated3 . Significant Accounting Policies (continued)

3 .19 REVENUE RECOGNITION

Revenue from the sale of bullion, doré, gold concentrate, other metal concentrates and iron ore is recognized when persuasive evidence of an
arrangement exists, the bullion, doré, metal concentrates and iron ore has been shipped, title has passed to the purchaser, the price is fixed or
determinable, and collection is reasonably assured. Revenues realized from sales of pre-commercial production are recorded as a reduction of
property plant and equipment.

Our metal concentrates are sold under pricing arrangements where final metal prices are determined by market prices subsequent to the date of
shipment. Provisional revenue is recorded at date of shipment based on metal prices at that time. Adjustments are made to the provisional revenue
in subsequent periods based on fluctuations in the market prices until date of final metal pricing. Consequently, at each reporting period the
receivable balances relating to sales of concentrates change with the fluctuations in market prices.

3 .20 FINANCE INCOME AND EXPENSES

Finance income comprises interest income on funds invested (including available-for-sale financial assets), gains on the disposal of available-for-sale
financial assets and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues in profit
or loss, using the effective interest method.

Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets at
fair value through profit or loss, and impairment losses recognized on financial assets. All borrowing costs are recognized in profit or loss using the
effective interest method, except for those amounts capitalized as part of the cost of qualifying property, plant and equipment.

3 .21 EARNINGS (LOSS) PER SHARE

Eldorado presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss
attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted
EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares
outstanding for the effects of all dilutive potential common shares, which comprise warrants and share options granted to employees.

4 . Critical Accounting Estimates and Judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.

Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which
the estimates are revised and in any future periods affected.

Significant areas requiring the use of management estimates include assumptions and estimates relating to determining defined proven and probable
reserves, value beyond proven and probable reserves, fair values for purposes of purchase price allocations for business acquisitions, asset impairment
analyses, asset retirement obligations, share-based payments and warrants, pension benefits, valuation of deferred income tax assets, the provision
for income tax liabilities, deferred income taxes, and assessing and evaluating contingencies.

Actual results could differ from these estimates. Outlined below are some of the areas which require management to make significant estimates
and assumptions in determining carrying values.

PURCHASE PRICE ALLOCATION

Business combinations require estimates to be made at the date of acquisition in relation to determining asset and liability fair values and the
allocation of the purchase consideration over the fair value of the assets and liabilities.

Eldorado Gold Financials 2015 45

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated
4 . Critical Accounting Estimates and Judgements (continued)

In respect of mining company acquisitions, purchase consideration is typically allocated to the mineral reserves and resources being acquired.
The estimate of reserves and resources is subject to assumptions relating to life of the mine and may change when new information becomes
available. Changes in reserves and resources as a result of factors such as production costs, recovery rates, grade or reserves or commodity
prices could impact depreciation rates, asset carrying values and environmental and restoration provisions. Changes in assumptions over long-
term commodity prices, market demand and supply, and economic and regulatory climates could also impact the carrying value of assets,
including goodwill.

ESTIMATED RECOVERABLE RESERVES AND RESOURCES

Mineral reserve and resource estimates are based on various assumptions relating to operating matters, including, with respect to production costs,
mining and processing recoveries, cut-off grades, as well as assumptions relating to long-term commodity prices and, in some cases, exchange rates,
inflation rates and capital costs. Cost estimates are based on feasibility study estimates or operating history. Estimates are prepared by appropriately
qualified persons, but will be impacted by forecasted commodity prices, inflation rates, exchange rates, capital and production costs and recoveries,
amongst other factors. Estimated recoverable reserves and resources are used to determine the depreciation of property, plant and equipment at
operating mine sites, in accounting for deferred stripping costs, in performing impairment testing and for forecasting the timing of the payment
of decommissioning and restoration costs. Therefore, changes in the assumptions used could impact the carrying value of assets, depreciation and
impairment charges recorded in the income statement and the carrying value of the decommissioning and restoration provision.

CURRENT AND DEFERRED TAXES

The Company calculates current and deferred tax provisions for each of the jurisdictions in which it operates. Actual amounts of income tax expense
are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the issuance of financial statements.
Therefore, profit in subsequent periods will be affected by the amount that estimates differ from the final tax returns.

Estimates of recoverability are required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the balance
sheet. The Company also evaluates the recoverability of deferred tax assets based on an assessment of the ability to use the underlying future tax
deductions before they expire against future taxable income. Deferred tax liabilities arising from temporary differences on investments in subsidiaries,
joint ventures and associates are recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and
can be controlled.

Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management’s estimates of future
production and sales volumes, commodity prices, reserves, operating costs, decommissioning and restoration costs, capital expenditures, dividends
and other capital management transactions.

Judgement is also required in the application of income tax legislation. These estimates and judgements are subject to risk and uncertainty and could
result in an adjustment to current and deferred tax provisions and a corresponding credit or debit to profit.

IMPAIRMENT OF NON-CURRENT ASSETS AND GOODWILL

Non-current assets are tested for impairment when events or changes in circumstances suggest that the carrying amount may not be fully
recoverable. We conduct an annual test for impairment of goodwill in the fourth quarter of each fiscal year and at any other time of the year if an
indicator of impairment is identified.

Calculating the estimated fair values of CGUs for non-current asset impairment tests and CGUs or groups of CGUs for goodwill impairment tests
requires management to make estimates and assumptions with respect to future production levels, operating and capital costs in our life-of-
mine (“LOM”) plans, long-term metal prices, foreign exchange rates and discount rates. Changes in any of the assumptions or estimates used in
determining the fair values could impact the impairment analysis.

Management is also required to make judgements with respect to the level at which goodwill is tested for impairment. Judgements include an
assessment of whether CGUs should be grouped together for goodwill testing purposes at a level not larger than an operating segment or tested at
the individual CGU level.

46 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

5 . Acquisitions and Other Transactions

A) ACQUISITION OF GLORY

In March 2014, Eldorado completed the acquisition of all of the issued and outstanding common shares of Glory that it did not already own.
As a result, Eldorado acquired a 100% interest in the Sapes project in Thrace, Greece. Prior to the transaction, Eldorado owned 19.9% interest
in Glory and the investment was accounted for as an investment in associate.

Total consideration of $39,219 included cash for 179,504,179 shares in the amount of $27,583, an option buy-out payment of $1,590 to holders of
Glory options, and $10,046 related to the 44,595,920 shares of Glory that Eldorado had purchased prior to the off-market takeover bid. A total of
$1,229 was incurred as transaction costs and was capitalized as property, plant and equipment.

This transaction has been accounted for as an acquisition of assets and liabilities as Glory did not constitute a business, as defined in IFRS 3.
Other than a small working capital amount, the remainder of the value for this transaction was assigned to property, plant and equipment.

Eldorado paid net cash of $30,318 as a result of the transaction. This amount was a result of an acquired cash balance of $84, less cash consideration
of $29,173 and transaction costs of $1,229.

B) EASTERN DRAGON AGREEMENT

In March 25, 2014, the Company, through one of its subsidiaries, entered into a Subscription and a Shareholders agreement (“Agreements”) with
CDH Fortune II Limited (“CDH”).

As a result of these Agreements, CDH acquired 21.5% of the total ordinary shares of Sino Gold Tenya (HK) Limited (“Tenya”), a subsidiary of the
Company, and indirectly a 20% interest in the Eastern Dragon Project.

Under the terms of the Agreements, CDH has the right to require Eldorado to purchase or procure the purchase by another party of the CDH’s shares
in Tenya at a fixed price (“Put Option”) for 90 days following the second anniversary of the Agreements.

The Agreements include other rights and obligations of the Company and CDH associated with the advancement of the Eastern Dragon Project.

This transaction has been accounted as an equity transaction with the recognition of a non-controlling interest in the amount of $40,000
representing the consideration received. A liability in the amount of $46,970 has been recorded at the transaction date, representing the present
value of the redemption amount of the Put Option, as well as $2,654 of transaction costs. The sum of these amounts was recorded against equity.
Future changes in the present value of the redemption amount of the Put Option are being charged against equity. The present value of the liability
representing the Put Option as of December 31, 2015 is $51,484 and is included in accounts payable and accrued liabilities in the balance sheet.
As of December 31, 2014 this liability was included in other non-current liabilities.

6 . Cash and Cash Equivalents

($ thousands)

Cash at bank and on hand

Short-term bank deposits

7 . Accounts Receivable and Other

($ thousands)

Trade receivables

Value added and other taxes recoverable

Other receivables and advances

Prepaid expenses and deposits

December 31, 2015

December 31, 2014

240,389

47,800

288,189

444,176

54,338

498,514

December 31, 2015

December 31, 2014

16,137

16,195

15,903

37,233

85,468

19,771

40,378

18,572

39,274

117,995

Eldorado Gold Financials 2015 47

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

8 .

Inventories

($ thousands)

Ore stockpiles

In-process inventory and finished goods

Materials and supplies

December 31, 2015

December 31, 2014

30,897

36,841

107,888

175,626

44,195

64,314

114,903

223,412

The cost of materials and supplies consumed during the year and included in production costs amounted to $190,875 (2014 – $244,003).

Inventory write-downs related to iron ore, zinc and lead inventories amounting to $12,024 (2014 – $13,469) were recognized during the year.

9 .

Investment in Subsidiaries

The following table summarizes the information relating to each of the Company’s subsidiaries that has non-controlling interests (“NCI”) with
material impact on net profit. The amounts disclosed for each subsidiary are based on those included in the consolidated financial statements before
inter-company eliminations. Disclosures related to Eastern Dragon and White Mountain have not been provided as these subsidiaries currently have
no material impact on net profit.

($ thousands)

NCI percentage

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets

December 31, 2015

QDML

Jinfeng

Hellas

Deva

10%

197,914

88,194

(24,131)

(7,831)

18%

47,920

37,563

588,335

1,777,369

(116,356)

(30,581)

(748,756)

(288,772)

19%

4,279

396,280

(167,749)

(43,688)

254,146

489,318

777,404

189,122

Carrying amount of NCI

21,013

16,572

33,682

56,521

Revenue

Net profit (loss)

Total comprehensive income (loss)

Profit (loss) allocated to NCI

Dividends paid to NCI

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

115,762

176,641

35,869

23,367

(1,371,819)

23,367

(1,371,819)

–

(216,044)

5,071

(69,476)

(40,684)

5,634

30,874

(12,250)

(21,991)

–

249,719

(241,428)

–

14,805

(19,983)

–

9,733

1,830

3,262

44,973

(17,934)

(32,623)

Net increase (decrease) in cash and cash equivalents

(5,584)

(3,367)

8,291

(5,178)

48 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

9 .

Investment in Subsidiaries (continued)

($ thousands)

NCI percentage

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets

December 31, 2014

QDML

Jinfeng

Hellas

Deva

10%

215,370

96,011

(26,457)

(7,886)

18%

59,570

55,214

610,952

3,087,628

(146,685)

(26,583)

(509,296)

(546,404)

19%

10,134

630,672

(151,183)

(84,456)

277,038

497,254

2,087,142

405,167

Carrying amount of NCI

22,445

17,136

101,558

97,205

Revenue

Net profit (loss)

Total comprehensive income (loss)

Profit (loss) allocated to NCI

Dividends paid to NCI

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

136,982

214,527

42,917

35,040

51,018

(35,284)

4,231

5,155

(1,754)

3,898

46,481

(8,833)

(38,978)

7,753

65,219

(15,956)

(43,069)

–

234,506

(240,279)

–

887

–

23,307

(18,731)

–

Net increase (decrease) in cash and cash equivalents

(1,330)

6,194

(5,773)

4,576

Significant Restrictions
The Company cannot increase the draw-down limit of the entrusted loan described in note 14(d) without the consent of QDML’s
non-controlling interest.

10 . Other Assets

($ thousands)

Restricted credit card deposits

Non-current accounts receivable and other

Prepaid loan costs (note 14(b))

Environmental guarantee deposits

Deposit on land acquisition at Jinfeng

Long-term value added and other taxes recoverable

December 31, 2015

December 31, 2014

2,875

–

13,667

2,739

63,827

83,147

627

2,925

1,011

14,423

2,907

21,712

43,605

Eldorado Gold Financials 2015 49

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

11 . Property, Plant and Equipment

($ thousands)

Cost

Land and
Buildings

Plant and
Equipment

Capital Works
in Progress

Mineral
Properties
and Leases

Capitalized
Evaluation

Total

Balance at January 1, 2014

329,112

1,569,539

159,584

4,223,421

55,958

6,337,614

Acquisition of Glory

Additions/transfers

–

36,657

Proceeds on production of tailings retreatment

–

Other movements

Disposals

15,955

(153)

268

93,527

–

535

(876)

–

11,086

–

(26,410)

–

39,285

287,602

(26,599)

6,862

–

13,122

–

360

–

39,553

441,994

(26,599)

(2,698)

(1,029)

Balance at December 31, 2014

381,571

1,662,993

144,260

4,530,571

69,440

6,788,835

Balance at January 1, 2015

381,571

1,662,993

144,260

4,530,571

69,440

6,788,835

Additions/transfers

35,866

67,649

20,588

Proceeds on production of tailings retreatment

Other movements

Disposals

–

(10,566)

–

3,661

(2,237)

–

(455)

(1)

263,183

(17,918)

1,751

(1,038)

4,674

391,960

–

(3,094)

–

(17,918)

1,883

(13,842)

Balance at December 31, 2015

406,891

1,732,066

164,392

4,776,549

71,020

7,150,918

Depreciation and impairment losses

Balance at January 1, 2014

Depreciation for the year

Other movements

Disposals

(57,360)

(35,160)

2,619

102

(459,151)

(110,923)

153

785

Balance at December 31, 2014

(89,799)

(569,136)

Balance at January 1, 2015

Depreciation for the year

Other movements

Impairment losses

Disposals

(89,799)

(32,877)

(666)

(15,883)

7,320

(569,136)

(118,474)

(2,648)

(131,637)

922

–

(136,721)

(23,698)

(5,870)

–

(166,289)

(25,756)

(112)

(4,733)

(1,253,392)

–

Balance at December 31, 2015

(131,905)

(820,973)

(4,733)

(1,445,548)

–

(653,232)

(169,781)

(3,098)

887

(825,224)

(177,107)

(3,426)

(1,405,645)

8,243

(2,403,159)

Carrying amounts

At January 1, 2014

271,752

1,110,388

159,584

4,086,700

55,958

5,684,382

At December 31, 2014

291,772

1,093,857

144,260

4,364,282

69,440

5,963,611

Balance at December 31, 2015

274,986

911,093

159,659

3,331,001

71,020

4,747,759

The amount of capitalized interest during the year ended December 31, 2015 included in property, plant and equipment
was $27,215 (2014 – $14,450).

50 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

11 . Property, Plant and Equipment (continued)

In accordance with the Company’s accounting policies each CGU is assessed for indicators of impairment, from both external and internal sources,
at the end of each reporting period, which may suggest that the carrying values of its assets are impaired for accounting purposes. If such indicators
of impairment exist to any or all CGUs, those CGUs are tested for impairment.

The Company determined that indicators of impairment were identified in the CGUs of the Certej project, Skouries project, the Stratoni mine, the
Vila Nova mine and the TJS mine. No other indicators of impairment were identified.

For the Skouries project, the Company identified indicators of impairment from both internal and external sources of information. Those were
comprised of delays in the permitting process, higher projected capital and operating costs and placement of the project on care and maintenance.
For the Stratoni mine, the Company identified the sustained low prices of lead and zinc as indicators of impairment. For the TJS mine, changes in the
mine plan resulted in an impairment. The assumptions and valuation method used in our asset impairment review for these assets are the same as
those described for the annual impairment testing of goodwill (note 12).

For the Vila Nova mine, the Company identified the sustained low price of iron ore as indicators of impairment. The key assumptions used for the
calculation of Vila Nova were an iron price of $70 and a discount rate of 5%.

For the Certej project, the Company completed a feasibility study which reflected higher capital and operating costs than had been assumed in the
purchase price allocation used to record the Company’s acquisition of European Goldfields Inc. The key assumptions used for the calculations were
as follows:

Gold price ($/oz)
Silver price ($/oz)
Inflation rate
Discount rate

$1,300
$20
2%
7%

As at December 31, 2015, the Company recorded impairment charges totalling $1,405,645 ($1,049,196 net of deferred income tax recovery),
excluding the impairment of goodwill totalling $476,020 (note 12). Impairment charges comprised of $1,042,066 ($739,867 net of deferred income
tax recovery) to the Skouries project, $43,974 ($31,222 net of deferred income tax recovery) to the Stratoni mine, $254,910 ($214,125 net of
deferred income tax recovery) on our Certej project, $36,462 ($35,749 net of deferred income tax recovery) to the TJS mine and $28,233 to the
Vila Nova mine.

These impairment charges were applied to the property, plant and equipment based on the relative carrying amounts of the assets as at
December 31, 2015 that were subject to impairment charges. At December 31, 2015, the carrying amount of our Skouries project, our Certej project
and our TJS mine after impairment charges was $309,110, $396,279 and $50,497, respectively. The full value of the property, plant and equipment
was impaired at the Stratoni mine and the Vila Nova mine; as a result the carrying amount of the Stratoni mine and Vila Nova mine is nil.

The values assigned to the key assumptions represent management’s assessment of future trends in the gold mining industry and in the global
economic environment. The assumptions used are management’s best estimates and are based on both current and historical information from
external and internal sources.

Eldorado Gold Financials 2015 51

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

12 . Goodwill

($ thousands)

Cost

Balance at January 1,

Impaired during the year

Balance at December 31,

2015

2014

526,296

(476,020)

50,276

526,296

–

526,296

Impairment Tests for Goodwill
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may not be recoverable. Impairment is
determined for goodwill by assessing the recoverable amount of each CGU or group of CGUs to which the goodwill relates. Where the recoverable
amount of the CGU is less than its carrying amount including goodwill, an impairment loss is recognized. Impairment losses relating to goodwill
cannot be reversed in future periods.

Goodwill is allocated to the individual CGUs of TJS and White Mountain in China and to a group of CGUs in Greece.

The recoverable amount of a CGU or group of CGUs is determined based on the higher of fair value less costs to sell and value-in-use. These
calculations use projections based on financial budgets approved by management. Cash flows beyond the five-year period are extrapolated using the
estimated growth rates stated below. The estimates of future cash flows were derived from the most recent LOM plans with mine lives ranging from
6 to 38 years.

Key assumptions used for fair value less costs to sell calculations are as follows:

Gold price ($/oz)

Silver price ($/oz)

Copper ($/lb)

Lead ($/lb)

Zinc ($/lb)

Inflation rate

Discount rate

2015

1,100 – 1,300

16 – 18

2.59 – 2.86

0.82 – 0.91

0.91

5% – 9%

2014

1,300

3.00

0.95

1.00

7% – 9%

Based on the goodwill impairment test performed on its CGUs, the Company concluded that the goodwill was recoverable in the CGU of White
Mountain; however, goodwill was not recoverable in the CGU of TJS and the group of CGUs in Greece. The discounted cash flow model yielded an
impairment of the full carrying value of goodwill of Greece ($473,782) and TJS ($2,238).

The above assumptions have been used for the analysis of the recoverability of goodwill and the CGUs to which it relates. The discount rates used
reflect specific risks relating to the relevant CGUs.

Permitting delays and increased capital and operating costs have negatively affected the cash flow at the Skouries project, which was the main
contributor to the decline in the cash flows of the group of CGUs in Greece.

As at December 31, 2015, the goodwill balance is allocated to the White Mountain CGU in the amount of $50,276.

The recoverable amount of CGUs is sensitive to change in gold prices. A 27% decrease in the long-term gold price, in isolation, could cause the
carrying value to exceed the recoverable amount of White Mountain’s CGU.

52 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

12 . Goodwill (continued)

The Company believes that a long-term decline in the gold price environment would result in changes in operating cost inputs that may offset the
impact of a lower gold price environment.

13 . Accounts Payable and Accrued Liabilities

($ thousands)

Trade payables

Taxes payable

Accrued expenses

14 . Debt

($ thousands)

Current:

December 31, 2015

December 31, 2014

97,345

5,857

133,617

236,819

83,566

6,230

94,916

184,712

December 31, 2015

December 31, 2014

Jinfeng China Merchant Bank (“CMB”) working capital loan (a)

–

16,343

Non-current:

Senior notes (c)

Total debt

589,395

587,201

603,544

(a) Jinfeng CMB Working Capital Loan

On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($15,400) working capital loan with CMB. Each draw-down had a fixed interest
rate of 5.6% and had a term of six months. The facility had a term of up to one year. In January 2014, the term of the facility was extended to
January 28, 2015 and was not subsequently renewed. This facility was unsecured. The proceeds were used to fund working capital obligations.

As at December 31, 2015, Jinfeng has repaid the full amount under this facility.

(b) Revolving Credit Facility

The ARCA contains covenants that restrict, among other things, the ability of the Company to incur an aggregate unsecured indebtedness exceeding
$850.0 million, incur secured indebtedness up to $200.0 million, make distributions in certain circumstances, sell material assets and carry on a
business other than one related to the mining business. Significant financial covenants include a maximum debt to Earnings before Interest, Taxes,
Depreciation and Amortization (“EBITDA”) of 3.5:1 and a minimum EBITDA to interest of 3:1. The Company is in compliance with these covenants
at December 31, 2015.

Eldorado Gold Financials 2015 53

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

14 . Debt (continued)

Loan interest is variable, dependent on a leverage ratio pricing grid. The Company’s current leverage ratio is approximately 1.99:1. At this ratio,
interest charges and fees are as follows: LIBOR plus margin of 2.00% and undrawn standby fee of 0.50%. Fees of $4,728 were paid in relation to
the credit facility. This amount was deferred as pre-payments for liquidity services and was amortized to financing costs. As at December 31, 2015,
the prepaid loan cost on the balance sheet was nil (2014 – $1,011) (note 10).

No amounts were drawn down under the ARCA as at December 31, 2015.

On December 10, 2012, the Company completed an offering of $600.0 million senior notes (“the notes”) at par value, with a coupon
rate of 6.125% due December 15, 2020. The notes pay interest semi-annually on June 15 and December 15. The Company received proceeds
of $589.5 million from the offering, which is net of the commission payment. The notes are redeemable by the Company in whole or in part,
for cash:

i) At any time prior to December 15, 2016 at a redemption price equal to 100% of the aggregate principal amount of the notes at the treasury

yield plus 50 basis points, and any accrued and unpaid interest;

ii) On and after the dates provided below, at the redemption prices, expressed as a percentage of principal amount of the notes to be redeemed, set

forth below, plus accrued and unpaid interest on the notes:

December 15, 2016 103.063%
December 15, 2017 101.531%
2018 and thereafter 100.000%

The early prepayment prices are to reimburse the lender for lost interest for the remaining term. The fair market value of the notes as at
December 31, 2015 is $526.9 million.

Net deferred financing costs of $10,605 have been included as an offset in the balance of the notes in the financial statements and are being
amortized over the term of the notes.

(d) Entrusted Loan

In November 2010, Eastern Dragon, HSBC Bank (China) and QDML entered into an entrusted loan agreement, which currently has an approved limit
of RMB 720.0 million ($110,878).

Under the terms of the entrusted loan, QDML with its own funds entrusts HSBC Bank (China) to provide a loan facility in the name of QDML to
Eastern Dragon. The loan can be drawn down in tranches. Each draw-down bears interest fixed at the prevailing lending rate stipulated by the
People’s Bank of China on the date of draw-down. Each draw-down has a term of one year and can be rolled forward at the discretion of QDML.
The interest rate on this loan as at December 31, 2015 was 4.59%.

As at December 31, 2015, RMB 667.1 million ($102,735) had been drawn under the entrusted loan.

Subsequent to December 31, 2015, RMB 3.1 million ($477) was drawn under this loan.

The entrusted loan has been recorded on a net settlement basis.

54 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated15 . Asset Retirement Obligations

($ thousands)

Greece

Brazil

China

Turkey

Romania

Total

At January 1, 2015

Accretion during the year

Revisions to estimate of obligation

Settlements

At December 31, 2015

Estimated undiscounted amount

46,344

938

(7,037)

(242)

40,003

68,372

3,110

911

–

4,087

4,113

23,709

480

(1,096)

(171)

34,454

1,452

109,069

890

(881)

(309)

(19)

–

2,411

(8,122)

(722)

22,922

34,154

1,470

102,636

28,795

50,349

2,323

153,952

The Company’s asset retirement obligations relate to the restoration and rehabilitation of the Company’s mining operations and projects under
development. The expected timing of the cash flows in respect of the provision is based on the estimated life of the various mining operations. The
decrease in the estimate of the obligation in 2015 in all countries was mainly due to favourable foreign exchange rates which lowered the unit costs
of the reclamation activities. Additionally, slightly higher discount rates further contributed to a lower net present value of the reclamation obligation.
These favourable movements in Greece were offset marginally by the increased disturbance at the Skouries project.

The provision is calculated as the present value of estimated future net cash outflows based on the following key assumptions:

(%)

Greece

Brazil

China

Turkey

Romania

At December 31, 2014

Inflation rate

Discount rate

At December 31, 2015

Inflation rate

Discount rate

2.0

0.7 to 2.8

2.0

0.6 to 3.0

2.0

2.1

2.0

0.6

2.0

1.1 to 2.1

2.2 to 2.7

2.0

1.0 to 2.3

2.2 to 2.9

2.0

2.5

2.0

2.7

The discount rate is a risk-free rate determined based on US Treasury bond rates. US Treasury bond rates have been used for all of the mine sites, as
the liabilities are denominated in US dollars and the majority of the expenditures are expected to be incurred in US dollars. The inflation rates used in
determining the present value of the future net cash outflows are based on worldwide inflation rates.

Environmental guarantee deposits exist with respect to the environmental rehabilitation of the mines in China (note 10).

Additionally, the Company has a €50.0 million Letter of Guarantee to the Ministry of Environment of Greece as security for the due and proper
performance of rehabilitation works in relation to the mining and metallurgical facilities of the Kassandra Mines (Stratoni, Olympias and Skouries) and
the removal, cleaning and rehabilitation of the old Olympias tailings. This Letter of Guarantee is renewed annually, expires on July 26, 2026 and has
an annual fee of 57 basis points.

Eldorado Gold Financials 2015 55

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

16 . Defined Benefit Plans

($ thousands)

Balance sheet obligations (asset) for:

Pension Plan

Supplemental Pension Plan

December 31, 2015

December 31, 2014

554

(11,452)

(10,898)

839

(13,629)

(12,790)

($ thousands)

December 31, 2015

December 31, 2014

Income statement charge for:

Pension Plan

Supplemental Pension Plan

Actuarial losses (gains) recognized in the statement of other

comprehensive income in the period (before tax)

Cumulative actuarial losses recognized in the statement of other

comprehensive income (before tax)

203

1,467

1,670

855

14,974

198

1,422

1,620

596

14,119

The Company operates defined benefit pension plans in Canada with two components: a registered pension plan (“the Pension Plan”) and a
supplemental pension plan (“the SERP”). During the second quarter of 2012, the SERP was converted into a Retirement Compensation Arrangement
(“RCA”), a trust account. As it is a trust account, the assets in the account are protected from the Company’s creditors. The RCA requires the
Company to remit 50% of any contributions and any realized investment gains to the Receiver General of Canada as refundable tax.

These plans, which are only available to certain qualifying employees, provide benefits based on an employee’s years of service and final average
earnings at retirement. Annual contributions related to these plans are actuarially determined and made at or in excess of minimum requirements
prescribed by legislation.

Eldorado’s plans have actuarial valuations performed for funding purposes. The Pension Plan last had an actuarial valuation performed as of
January 1, 2014 for funding purposes with the next required valuation as of January 1, 2017. The SERP’s last valuation was on January 1, 2015 for
funding purposes, and the next valuation will be prepared in accordance with the terms of the pension plan. The measurement date to determine
the pension obligation and assets for accounting purposes was December 31, 2015.

The SERP is designed to provide supplementary pension benefits to qualifying employees affected by the maximum pen-sion limits under the Income
Tax Act pursuant to the registered Pension Plan. Further, the Company is not required to pre-fund any benefit obligation under the SERP.

Total Cash Payments
The amount contributed to the Pension Plan and the SERP was $2,798 (2014 – $2,700). Cash payments totalling $135 were made directly to
beneficiaries during the year (2014 – $156). The expected contribution to the Pension Plan is $37 and $1,746 to the SERP in 2016.

56 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

16 . Defined Benefit Plans (continued)

The amounts recognized in the balance sheet are determined as follows:

($ thousands)

December 31, 2015

December 31, 2014

Pension Plan

SERP

Total

Pension Plan

SERP

Total

Present value of obligations

Fair value of plan assets

2,522

(1,968)

31,565

(43,016)

34,087

(44,984)

2,763

(1,924)

33,320

(46,949)

36,083

(48,873)

Liability (asset) on balance sheet

554

(11,451)

(10,897)

839

(13,629)

(12,790)

The movement in the defined benefit obligation over the year is as follows:

($ thousands)

2015

Pension Plan

SERP

Total

Pension Plan

SERP

2014

Total

Balance at January 1,

Current service cost

Interest cost

Actuarial loss (gain)

Benefit payments

Exchange gain

2,763

33,320

36,083

2,407

31,529

33,936

176

104

–

(547)

1,972

1,246

1,300

(135)

(6,138)

2,148

1,350

1,326

(135)

(6,685)

172

114

280

–

(210)

2,076

1,487

940

(156)

(2,556)

2,248

1,601

1,220

(156)

(2,766)

Balance at December 31,

2,522

31,565

34,087

2,763

33,320

36,083

The movement in the fair value of plan assets of the year is as follows:

($ thousands)

2015

Pension Plan

SERP

Total

Pension Plan

SERP

At January 1,

Interest income on plan assets

Actuarial gain (loss)

Contributions by employer

Benefit payments

Exchange loss

1,924

46,949

48,873

1,930

(55)

334

–

(312)

1,751

(416)

2,464

(135)

(7,597)

1,828

(471)

2,798

(135)

(7,909)

–

(160)

45,490

2,141

558

2,700

(156)

(3,784)

2014

Total

47,420

2,229

624

2,700

(156)

(3,944)

At December 31,

1,968

43,016

44,984

1,924

46,949

48,873

The amounts recognized in the income statement are as follows:

($ thousands)

2015

Pension Plan

SERP

Total

Pension Plan

SERP

Current service cost

Interest cost

Expected return on plan assets

Defined benefit plans expense

176

104

(77)

203

1,972

1,246

(1,751)

2,148

1,350

(1,828)

1,467

1,670

172

114

(88)

198

2,076

1,487

(2,141)

1,422

2014

Total

2,248

1,601

(2,229)

1,620

The actual return on plan assets was $1,687 (2014 – $3,124).

Eldorado Gold Financials 2015 57

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

16 . Defined Benefit Plans (continued)

The principal actuarial assumptions used were as follows:

(%)

Expected return on plan assets

Discount rate – Beginning of year

Discount rate – End of year

Rate of salary escalation

Average remaining service period of active employees

Pension Plan

4.0

2.0

2015

SERP

4.0

2.0

Pension Plan

4.0

4.8

4.0

2.5

2014

SERP

4.0

4.8

4.0

2.5

expected to receive benefits

8.5 years

7.2 years

The assumption used to determine the interest income on plan assets is equal to the discount rate, as per IAS 19.

Plan Assets
The assets of the Pension Plan and the amounts deposited in the SERP account are managed by a major investment management company and are
invested only in conformity with the investment requirements of applicable pension laws.

The following table summarizes the defined benefit plans’ weighted average asset allocation percentages by asset category:

(%)

December 31, 2015

December 31, 2014

Pension Plan

SERP

Pension Plan

SERP

Investment funds

Money market

Canadian fixed income

Canadian equities

US equities

International equities

Other (1)

Total

–

100

(1) Assets held by the Canada Revenue Agency in the refundable tax account.

The sensitivity of the overall pension liability to changes in the weighted principal assumptions is:

Discount rate

Change in assumption

Impact on overall liability

Increase by 0.5%

Decrease by 0.5%

Decrease by $2,496

Increase by $2,256

Salary escalation rate

Increase/decrease by 0.5%

Increase/decrease by $105

58 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

17 . Income Tax Expense and Deferred Taxes

Total income tax expense (recovery) consists of:

($ thousands)

December 31, 2015

December 31, 2014

Current tax expense

Deferred tax expense (recovery)

Total income tax expense (recovery) attributable to geographical jurisdiction is as follows:

($ thousands)

Turkey

China

Greece

Brazil

Canada

Romania

Other jurisdictions

Factors affecting income tax expense (recovery) for the year:

($ thousands)

Profit (loss) before income tax

Canadian statutory tax rate

Tax expense (recovery) on net income (loss) at Canadian statutory tax rate

Items that cause an increase (decrease) in income tax expense:

Foreign income subject to different income tax rates than Canada

Increase in Greek tax rates

Non-tax effected operating losses

Non-deductible expenses and other items

Non-deductible goodwill impairment

Foreign exchange and other translation adjustments

Amounts under (over) provided in prior years

Investment tax credits

Withholding tax on foreign income

Income tax expense (recovery)

76,864

(261,232)

(184,368)

2015

61,726

37,022

(247,903)

5,719

–

(41,140)

208

(184,368)

2015

(1,829,510)

26.00%

(475,673)

(26,713)

63,503

43,056

13,063

137,397

45,510

1,396

(13,989)

28,082

(184,368)

93,474

27,795

121,269

2014

74,959

37,263

5,005

2,761

–

201

1,080

121,269

2014

227,813

26.00%

59,231

(17,307)

–

24,470

13,481

–

16,914

4,350

(517)

20,647

121,269

Eldorado Gold Financials 2015 59

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

17 . Income Tax Expense and Deferred Taxes (continued)

The change for the year in the Company’s net deferred tax position was as follows:

($ thousands)

Net deferred tax asset (liability)

Balance at January 1,

Deferred income tax (expense) recovery in the income statement

Net balance at December 31,

2015

2014

(869,103)

261,232

(607,871)

(841,308)

(27,795)

(869,103)

The composition of the Company’s net deferred income tax asset and liability and deferred tax expense is as follows:

Type of temporary difference

Deferred tax assets

Deferred tax liabilities

Expense (recovery)
on the income statement

($ thousands)

2015

2014

2015

2014

2015

2014

Property, plant and equipment

Loss carryforwards

Liabilities

Investment tax credits

Other items

–

20,389

18,650

5,665

12,135

2,735

17,590

28,082

1,078

6,729

653,922

913,383

(256,726)

–

10,788

11,883

(2,799)

9,381

(4,587)

(6,501)

36,610

(5,531)

(12,589)

6,717

2,588

Balance at December 31,

56,839

56,214

664,710

925,317

(261,232)

27,795

Unrecognized deferred tax assets

($ thousands)

Tax losses

Other deductible temporary differences

Total unrecognized deferred tax assets

2015

151,889

20,583

172,472

2014

128,169

6,733

134,902

Unrecognized Tax Losses
At December 31, 2015 the Company had losses with a tax benefit of $151,889 (2014 – $128,169) which are not recognized as deferred tax assets.
The Company recognizes the benefit of tax losses only to the extent of anticipated future taxable income that can be reduced by the tax losses. The
gross amount of the tax losses for which a tax benefit has not been recorded expire as shown on the following page.

60 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

17 . Income Tax Expense and Deferred Taxes (continued)

($ thousands)
Expiry date

2016

2017

2018

2019

2020

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

No Expiry

Canada

Brazil

Greece

Australia

Total

–

7,858

14,839

10,703

25,965

23,444

7,285

45,351

75,450

64,883

58,689

58,634

–

19,528

2,199

5,708

10,176

27,095

19,225

–

31,179

2,199

5,708

10,176

27,095

19,225

7,858

14,839

10,703

25,965

23,444

7,285

45,351

75,450

64,883

58,689

58,634

50,707

393,101

19,528

64,403

31,179

508,211

Capital losses with no expiry

Tax effect of total losses not recognized

140,477

120,468

–

140,477

3,390

18,677

9,354

151,889

DEDUCTIBLE TEMPORARY DIFFERENCES

At December 31, 2015 the Company had deductible temporary differences for which deferred tax assets of $20,583 (2014 – $6,733) have not
been recognized, because it is not probable that future taxable profits will be available against which the Company can utilize the benefits. The vast
majority of these temporary benefits have no expiry date.

TEMPORARY DIFFERENCES ASSOCIATED WITH INVESTMENTS IN SUBSIDIARIES

The Company has not recognized deferred tax liabilities in respect of historical unremitted earnings of foreign subsidiaries for which we are able
to control the timing of the remittance and are considered reinvested for the foreseeable future. At December 31, 2015, these earnings amount
to $1,159,318 (2014 – $1,803,336). Substantially all of these earnings would be subject to withholding taxes if they were remitted by the
foreign subsidiaries.

TAX CREDITS

The Company has $0 (2014 – $396) of tax credits that have not been recognized.

OTHER FACTORS AFFECTING TAXATION

During the year the Turkish lira has weakened, causing a deferred income tax expense during the year of $24,505 due to the decrease in the value of
the future tax deductions associated with the Turkish operations. The Company expects that in the future significant foreign exchange movements in
the Turkish lira, euro or Chinese renminbi in relation to the US dollar will cause significant volatility in the deferred income tax expense or recovery.

Eldorado Gold Financials 2015 61

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

18 . Share Capital

Eldorado’s authorized share capital consists of an unlimited number of voting common shares without par value and an unlimited number of non-voting
common shares without par value. At December 31, 2015 there were no non-voting common shares outstanding (December 31, 2014 – none).

Voting common shares

At January 1, 2014

Shares issued upon exercise of share options, for cash

Estimated fair value of share options exercised

Common shares issued for deferred phantom units

At December 31, 2014

Shares issued upon exercise of share options, for cash

Estimated fair value of share options exercised

At December 31, 2015

19 . Share-Based Payments

(a) Share Option Plans

Number of shares

Total $

716,216,690

5,314,589

315,914

–

31,920

716,564,524

22,610

–

716,587,134

1,996

2,141

224

5,318,950

121

5,319,101

The Company has two share option plans (“Plans”) approved, as amended, by the shareholders on May 1, 2014 under which share purchase options
(“Options”) can be granted to directors, officers, employees and consultants.

The Company’s Employee, Consultant and Advisor Plan (“Employee Plan”) consists of Employee Plan Options subject to a 10-year maximum.
Currently all Employee Plan Options have a five-year term. Employee Plan Options vest at the discretion of the Board of Directors at the time an
option is granted. Employee Plan Options granted before November 1, 2015 vest in three separate tranches over two years and Employee Plan
Options granted on or after November 1, 2015 vest annually in three separate tranches commencing one year after the date of grant. As at
December 31, 2015, a total of 15,510,585 options (2014 – 18,287,530) were available to grant to employees, consultants or advisors under the
Employee Plan.

The Company’s Directors and Officers Plan (“D&O Plan”) consists of D&O Plan Options subject to a 10-year maximum. Currently all D&O Plan Options
have a five-year term. D&O Plan Options vest at the discretion of the Board of Directors at the time an option is granted. D&O Plan Options granted
before November 1, 2015 vest in three separate tranches over two years and D&O Plan Options granted on or after November 1, 2015 vest annually
in three separate tranches commencing one year after the date of grant. As at December 31, 2015, a total of 6,810,575 Options (2014 – 9,033,015)
were available to grant to directors and officers under the D&O Plan.

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

Weighted average
exercise price
(CDN$)

11.75

6.64

12.62

9 .97

2015

Number of
options

20,995,992

8,274,440

(22,610)

(3,728,388)

25,519,434

Weighted average
exercise price
(CDN$)

13.20

7.78

7.23

12.01

11 .75

2014

Number of
options

16,753,421

6,365,824

(315,914)

(1,807,339)

20,995,992

At January 1,

Regular options granted

Exercised

Forfeited

At December 31,

62 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

19 . Share-Based Payments (continued)

At December 31, 2015, 18,273,622 share purchase options (December 31, 2014 – 15,199,444) with a weighted average exercise price of
CDN$11.17 (December 31, 2014 – CDN$12.97) had vested and were exercisable. Options outstanding are as follows:

Range of
exercise price
(CDN$)

$3.00 to $3.99

$6.00 to $6.99

$7.00 to $7.99

$8.00 to $8.99

$10.00 to $10.99

$12.00 to $12.99

$14.00 to $14.99

$15.00 to $15.99

$16.00 to $16.99

100,000

8,030,710

5,673,643

45,405

4,925,186

507,952

62,289

4,075,149

2,099,100

25,519,434

Total options outstanding

Exercisable options

December 31, 2015

Weighted average
remaining contractual
life (years)

Weighted average
exercise price
(CDN$)

4.8

4.1

3.2

2.3

2.1

1.4

1.8

1.1

0.1

2 .7

3.96

6.66

7.81

8.19

10.43

12.74

14.45

15.22

16.66

9 .97

16,667

2,759,234

3,782,640

45,405

4,925,186

507,952

62,289

4,075,149

2,099,100

18,273,622

3.95

6.66

7.81

8.19

10.43

12.74

14.45

15.22

16.66

11 .17

Share-based payments expense related to share options for the year ended December 31, 2015 was $11,282 (2014 – $11,123).

The assumptions used to estimate the fair value of options granted during the years ended December 31, 2015 and 2014 were:

Risk-free interest rate

Expected volatility (range)

Expected life (range)

Expected dividends

Forfeiture rate

2015

2014

0.39%

53% – 58%

1.01%

45% – 50%

0.83 – 2.85 years

0.83 – 2.83 years

CDN$0.02

CDN$0.12

The weighted average fair value per stock option was CDN$1.75 (2014 – CDN$1.83). Volatility was determined based on the historical volatility over
the estimated lives of the options.

(b) Restricted Share Unit Plan

The Company has a Restricted Share Unit (‘‘RSU’’) plan whereby restricted share units may be granted to senior management of the Company.
Once vested, an RSU is exercisable into one common share entitling the holder to receive the common share for no additional consideration. For
RSUs granted before November 1, 2015, one-third vest on June 30 of the grant year, a second third vest on the first anniversary of the date of grant
and the last third vest on the second anniversary of the date of grant. For RSUs granted on or after November 1, 2015, one-third vest on the first
anniversary of the date of grant, a second third vest on the second anniversary of the date of grant and the last third vest on the third anniversary of
the date of grant. The current maximum number of common shares authorized for issue under the RSU plan is 5,000,000.

A total of 596,089 RSUs (2014 – 877,753) at a grant-date fair value of CDN$6.67 per unit were granted during the year ended December 31, 2015
(2014 – CDN$7.84) under the Company’s RSU plan and 198,697 RSUs were exercisable at December 31, 2015 (2014 – 292,585).

The fair value of each RSU issued is determined as the closing share price at grant date.

Eldorado Gold Financials 2015 63

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

19 . Share-Based Payments (continued)

A summary of the status of the RSU plan and changes during the year is as follows:

At January 1,

Granted

Redeemed

Forfeited

At December 31,

2015

1,086,523

596,089

(715,889)

(81,877)

884,846

2014

774,845

877,753

(566,075)

–

1,086,523

As at December 31, 2015, 884,846 common shares purchased by the Company remain held in trust in connection with this plan (2014 – 1,086,523).
At the end of the period, 225,406 restricted share units are fully vested and exercisable (2014 – 282,314). These shares purchased and held in trust
have been included in treasury stock in the balance sheet.

Restricted share units expense for the year ended December 31, 2015 was $4,147 (2014 – $7,380).

The Company has an Independent Directors Deferred Share Unit (“DSU”) plan under which DSUs are be granted by the Board from time to time
to independent directors (“participants”). The performance period of each DSU commences on the grant date and expires on the termination date
of the participant. The termination date is when the participant ceases to be a Director of the Company. On redemption each unit entitles the
participant to receive a cash payment equal to the market value of the Company’s shares on the date of redemption.

At December 31, 2015, 386,303 DSUs were outstanding (2014 – 259,037) with a value of $1,144 (2014 – $1,581), which is included in accounts
payable and accrued liabilities.

Compensation income related to the DSUs was $381 for the year ended December 31, 2015 (2014 – expense of $272).

(d) Performance Share Units Plan

The Company has a Performance Share Unit (“PSU”) plan whereby performance share units may be granted to senior management of the Company.
Once vested, a PSU is redeemable into one common share entitling the holder to receive the common share for no additional consideration.

A total of 624,580 PSUs were granted during the year ended December 31, 2015 under the Company’s PSU plan (2014 – none). The PSUs vest
on the third anniversary of the grant date, subject to achievement of predetermined performance criteria. When fully vested the number of PSUs
redeemed will range from 0% to 200% of the target award, subject to the performance of the share price over the three-year period. The current
maximum number of common shares authorized for issuance from treasury under the PSU plan is 3,130,000.

Compensation expense related to PSUs for the year ended December 31, 2015 was $829 (2014 – $0).

20 . Supplementary Cash Flow Information

($ thousands)

December 31, 2015

December 31, 2014

Changes in non-cash working capital

Accounts receivable and other

Inventories

Accounts payable and accrued liabilities

Total

Supplementary cash flow information

Income taxes paid

Interest paid

64 Eldorado Gold Financials 2015

(6,562)

45,915

(9,960)

29,393

81,282

34,166

(34,206)

13,184

(35,480)

(56,502)

88,150

34,536

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

21 . Financial Risk Management

21 .1 FINANCIAL RISK FACTORS

Eldorado’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk and price risk), credit risk
and liquidity risk. Eldorado’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential
adverse effects on Eldorado’s financial performance.

(a) Market Risk

(i) Foreign Exchange Risk
The Company operates principally in Canada, Turkey, China, Brazil, Greece and Romania, and is therefore exposed to foreign exchange risk arising
from transactions denominated in foreign currencies. Foreign exchange risk arises when future commercial transactions or recognized assets or
liabilities are denominated in a currency that is not the entity’s functional currency.

Eldorado’s cash and cash equivalents, accounts receivable, marketable securities, accounts payable and accrued liabilities and debt are denominated
in several currencies, and are therefore subject to fluctuation against the US dollar.

The table below summarizes Eldorado’s exposure to the various currencies denominated in the foreign currency, as listed below:

Canadian Australian
dollar

dollar

Turkish

Euro

lira

Chinese Swedish Romanian Great British Brazilian
real

pound

renminbi

krona

lei

Cash and cash equivalents

Marketable securities

4,705

25,369

Accounts receivable and other

2,261

172

4,737

2,165

357,183

1,774

8,014

244

21,559

–

6,143

54,785

182,288

–

9,212

–

10,255

Accounts payable and
accrued liabilities

Other non-current liability

Debt

(12,111)

(192)

(58,596)

(97,073)

(434,573)

–

(6,027)

–

(3,953)

–

(2,158)

(11,116)

–

Net balance

20,224

(19)

(49,874)

(51,239)

104,898

1,774

11,199

244

27,861

Equivalent in US dollars

14,614

(14)

(54,143)

(17,622)

16,155

210

2,700

360

7,112

Based on the balances as at December 31, 2015, a 1% increase/decrease in the US dollar exchange rate against all of the other currencies on
that date would have resulted in a decrease/increase of approximately $306 in profit (loss) before taxes. There would be no effect on other
comprehensive income.

Cash flows from operations are exposed to foreign exchange risk, as commodity sales are set in US dollars and a certain amount of operating
expenses are in the currency of the country in which mining operations take place.

(ii) Metal Price Risk and Other Price Risk
Eldorado is subject to price risk for fluctuations in the market price of gold and other metals. Gold and other metals prices are affected by numerous
factors beyond the Company’s control, including central bank sales, producer hedging activities, the relative exchange rate of the US dollar with other
major currencies, global and regional demand and political and economic conditions.

Worldwide gold and other metals production levels also affect their prices, and the price of these metals is occasionally subject to rapid short-term
changes due to speculative activities. The Company has elected not to actively manage its exposure to metal price risk at this time. From time to time,
Eldorado may use commodity price contracts to manage its exposure to fluctuations in the price of gold and other metals.

Other price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices.

Eldorado’s other price risk includes equity price risk, whereby the Company’s investments in marketable securities are subject to market
price fluctuation.

Eldorado Gold Financials 2015 65

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

21 . Financial Risk Management (continued)

(iii) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates.
Current financial assets and financial liabilities are generally not exposed to interest rate risk because of their short-term nature. The Company’s debt
is in the form of notes with a fixed interest rate of 6.13%.

(b) Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial
loss. Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents, restricted cash and accounts
receivable. Eldorado deposits its cash and cash equivalents, including restricted cash, with high credit quality financial institutions as determined by
rating agencies.

Payment for metal sales is normally in advance or within fifteen days of shipment depending on the buyer. The historical level of customer defaults
is negligible which reduces the credit risk associated with trade receivables at December 31, 2015.

Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments.
The Company manages liquidity by maintaining adequate cash and cash equivalent balances and by using its lines of credit as required. Management
monitors and reviews both actual and forecasted cash flows, and also matches the maturity profile of financial assets and liabilities. Contractual
maturities relating to debt are included in note 14.

21 .2 CAPITAL RISK MANAGEMENT

Eldorado’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development
of our mining projects. Capital consists of all of the components of equity: share capital from ordinary shares, contributed surplus, accumulated other
comprehensive income, deficit and non-controlling interests.

Consistent with others in the industry, Eldorado monitors capital on the basis of the debt to capital ratio and debt to EBITDA. The debt to capital
ratio is calculated as debt, including current and non-current debt, divided by capital. The debt to EBITDA ratio is calculated as debt, including current
and non-current debt, divided by earnings before interest costs, taxes and depreciation. This policy includes a target debt to capital ratio of less than
30% and a debt to EBITDA target ratio below 3.5.

As at December 31, 2015, our debt to capital ratio was 15.0% (2014 – 10.8%) and our debt to EBITDA ratio was 1.99:1 (2014 – 1.3:1).

These policy targets are managed through the repayments and issuances of debt as well as the continuing management of operations and
capital expenditures.

21 .3 FAIR VALUE ESTIMATION

Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique
that uses inputs observed from relevant markets.

66 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated21 . Financial Risk Management (continued)

The three levels of the fair value hierarchy are described below:

■ Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

■ Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e.,quoted prices for similar assets

or liabilities).

■ Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable

(i.e., supported by little or no market activity).

The only assets measured at fair value as at December 31, 2015 are marketable securities. No liabilities are measured at fair value on a recurring basis
as at December 31, 2015.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded
as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency,
and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial
assets held by the group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily publicly
traded equity investments classified as held-for-trading securities or available-for-sale securities.

22 . Commitments

The Company’s contractual obligations, not recorded on the balance sheet, at December 31, 2015, include:

($ thousands)

Operating leases and capital expenditures

Purchase obligations

Totals

2016

6,683

53,136

59,819

2017

4,580

2,354

6,934

2018

2019 and later

2,221

2,284

12,234

126

12,360

Purchase obligations in 2016 relate primarily to sustaining capital expenditures at Kişladağ, mine development projects in Greece, as well as operating
and maintenance supply contracts at our operating mines.

23 . Contingencies

The Company is involved in legal proceedings from time to time, arising in the ordinary course of its business. As at December 31, 2015, the amount
of ultimate liability with respect to these actions will not, in the opinion of management, ma-terially affect Eldorado’s financial position, results of
operations or cash flows.

24 . Related Party Transactions

Key management includes directors (executive and non-executive), officers and senior management. The compensation paid or payable to key
management for employee services, including amortization of share-based payments, is shown below:

($ thousands)

Salaries and other short-term employee benefits

Defined benefit pension plan

Share-based payments

2015

10,106

1,670

9,188

20,964

2014

13,199

1,620

12,514

27,333

Eldorado Gold Financials 2015 67

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

25 . Financial Instruments by Category

Fair Value
The following table provides the carrying value and the fair value of financial instruments at December 31, 2015 and De-cember 31, 2014:

($ thousands)

December 31, 2015

December 31, 2014

Carrying amount

Fair value

Carrying amount

Fair value

Financial Assets

Available-for-sale

Marketable securities

Loans and receivables

Cash and cash equivalents

Term deposit

Restricted cash

Accounts receivable and other

Other assets

Financial Liabilities at amortized cost

Accounts payable and accrued liabilities

Debt

Other non-current liability

26 . Production Costs

($ thousands)

Labour

Fuel

Reagents

Electricity

Mining contractors

Operating and maintenance supplies and services

Site general and administrative costs

Inventory change

Royalties, production taxes and selling expenses

27 . Interest and Financing Costs

($ thousands)

Interest expense

Financing fees

Total interest and financing costs

68 Eldorado Gold Financials 2015

18,331

4,251

288,189

498,514

4,382

248

69,273

19,320

4,382

248

69,273

19,320

2,800

262

77,617

21,893

2,800

262

77,617

21,893

236,819

589,395

–

236,819

526,878

–

184,712

603,544

49,194

184,712

600,221

49,194

2015

95,653

36,686

50,631

39,104

46,668

103,558

32,723

31,199

33,596

469,818

2015

10,108

8,220

18,328

2014

104,118

51,152

48,570

34,865

46,745

144,281

28,664

3,238

46,647

508,280

2014

23,039

5,740

28,779

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

28 . Earnings per Share

The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the weighted average number
of ordinary shares used in the calculation of basic earnings per share as follows:

(Thousands)

December 31, 2015

December 31, 2014

Weighted average number of ordinary shares used in the calculation

of basic earnings per share

Diluted impact of stock options

716,586

716,288

Weighted average number of ordinary shares used in the calculation

of diluted earnings per share

716,590

716,300

29 . Segment Information

IDENTIFICATION OF REPORTABLE SEGMENTS

The Company has identified its operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the
executive management (the chief operating decision makers or CODM) in assessing performance and in determining the allocation of resources.

The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based
on measures of profit and loss as well as assets and liabilities. These measures include operating profit, expenditures on exploration, property,
plant and equipment and non-current assets, as well as total debt. As at December 31, 2015, Eldorado had six reportable segments based on the
geographical location of mining and exploration and development activities.

29 .1 GEOGRAPHICAL SEGMENTS

Geographically, the operating segments are identified by country and by operating mine or mine under construction. The Turkey reporting segment
includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey. The China reporting segment includes the TJS, Jinfeng and
White Mountain mines, the Eastern Dragon project and exploration activities in China. The Brazil reporting segment includes the Vila Nova mine,
Tocantinzinho project and exploration activities in Brazil. The Greece reporting segment includes the Stratoni mine, the Olympias, Skouries, Perama
Hill and Sapes projects and exploration activities in Greece. The Romania reporting segment includes the Certej project and development activities
in Romania. Other reporting segment includes operations of Eldorado’s corporate office and exploration activities in other countries.

Financial information about each of these operating segments is reported to the CODM on at least a monthly basis. The mines in each of the
different segments share similar economic characteristics and have been aggregated accordingly.

Eldorado Gold Financials 2015 69

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

29 . Segment Information (continued)

($ thousands)

Turkey

China

Brazil

Greece

Romania

Other

2015

Total

Information about profit and loss

Metal sales to external customers

Production costs

Inventory write-down

Depreciation

Gross profit (loss)

443,609

384,213

214,001

217,696

–

77,164

89,657

(399)

1,616

8,745

1,028

35,869

36,505

3,279

10,676

152,444

76,860

(11,788)

(14,591)

–

(1)

–

452

863,292

469,818

12,024

178,978

(452)

202,472

Other material items of income and expense

Impairment loss on property, plant and

and equipment and goodwill

–

38,699

28,233

1,559,823

254,910

Other write-down of assets

Exploration expenses

Income tax expense (recovery)

Additions to property, plant and

6,891

5,576

6,387

1,524

61,726

37,021

3,173

1,493

5,719

–

2,421

3,351

3,488

–

1,881,665

16,451

17,853

(247,722)

(41,140)

(184,368)

equipment during the year

83,501

49,517

4,176

242,655

19,983

250

400,082

Information about assets and liabilities
Property, plant and equipment (1)
Goodwill

898,027

1,327,725

179,702

1,942,419

398,147

1,739

4,747,759

–

50,276

–

50,276

898,027

1,378,001

179,702

1,942,419

398,147

1,739

4,798,035

Debt

–

– 589,395

589,395

(1) Net of revenues from sale of production from tailings retreatment.

70 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

29 . Segment Information (continued)

($ thousands)

Turkey

China

Brazil

Greece

Romania

Other

2014

Total

Information about profit and loss

Metal sales to external customers

Production costs

Inventory write-down

Depreciation

Gross profit (loss)

524,919

460,343

207,809

227,958

–

55,420

107,365

31,619

29,926

13,469

4,928

51,018

42,587

–

8,782

–

731

1,067,899

508,280

13,469

177,227

261,690

125,020

(16,704)

(351)

(1)

(731)

368,923

Other material items of income and expense

Other write-down of assets

Exploration expenses

Income tax expense

Additions to property, plant and
equipment during the year

–

3,415

74,959

3,001

2,682

37,263

–

3,796

2,761

–

1,395

6,085

–

2,092

2,850

3,001

16,230

201

–

121,269

88,844

50,410

5,399

253,685

18,730

404

417,472

Information about assets and liabilities
Property, plant and equipment (1)
Goodwill

895,035

1,407,558

205,091

2,817,855

636,134

1,938

5,963,611

–

52,514

–

473,782

–

526,296

895,035

1,460,072

205,091

3,291,637

636,134

1,938

6,489,907

Debt

–

16,343

–

– 587,201

603,544

(1) Net of revenues from sale of production from tailings retreatment.

Eldorado Gold Financials 2015 71

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

29 . Segment Information (continued)

The Turkey and China segments derive their revenues from sales of gold. The Brazil segment derives its revenue from sales of iron ore. The Greece
segment derives its revenue from sales of zinc, lead and silver concentrates.

The measure of total debt represents the current and long-term portions of debt.

29 .2 ECONOMIC DEPENDENCE

At December 31, 2015, each of our Chinese mines had one major customer, to whom each sells its entire production, as follows:

TJS Mine
Jinfeng Mine
White Mountain Mine

Henan Zhongyuan Gold Smelter Factory Co. Ltd.of Zhongjin Gold Holding Co. Ltd.
China National Gold Group
Refinery of Shandong Humon Smelting Co. Ltd.

29 .3 SEASONALITY/CYCLICALITY OF OPERATIONS

Management does not consider operations to be of a significant seasonal or cyclical nature.

30 . EVENTS OCCURRING AFTER THE REPORTING DATE

On January 11, 2016, the Company announced that due to delays on the issuance of routine permits and licences by the Greek authorities,
that would allow Hellas Gold to complete the construction of the Skouries processing plant, construction and development activities at the Skouries
project have been suspended. Environmental protection works and care and maintenance activities will continue to be performed in order to
safeguard the environment and the assets of the Company at site at a cost of approximately $1.0 million per month.

72 Eldorado Gold Financials 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSExpressed in thousands of US dollars, unless otherwise stated

BOARD OF DIRECTORS, OFFICERS
AND SENIOR MANAGEMENT TEAM

BOARD OF DIRECTORS

EXECUTIVE OFFICERS

SENIOR MANAGEMENT

Robert Gilmore (1) (2)
Non-executive Chairman of the Board and
Independent Director

Paul Wright
President and Chief Executive Officer

Jason Cho
VP, Corporate Development

Fabiana Chubbs
Chief Financial Officer

Paul Skayman
Chief Operating Officer

Dawn Moss
Executive VP Administration
and Corporate Secretary

K . Ross Cory (1) (3)
Independent Director

Pamela Gibson (3) (4)
Independent Director

Geoffrey Handley (2) (4)
Independent Director

Michael Price (1) (4)
Independent Director

Steven Reid (2) (4)
Independent Director

Jonathan Rubenstein (2) (3)
Independent Director

Donald Shumka (1) (3)
Independent Director

John Webster (1)
Independent Director

Paul Wright
President and Chief Executive Officer

Committees of the Board of Directors
(1) Audit Committee
(2) Compensation Committee
(3) Corporate Governance and Nominating Committee
(4) Sustainability Committee

Dale Churcher
VP, Engineering

Doug Jones
Senior VP, Operations

Peter Lewis
VP, Exploration

Krista Muhr
VP, Investor Relations and
Corporate Communications

David Bickford
VP and General Manager, Turkey

Eduardo Moura
VP and General Manager, Greece

Lincoln Silva
VP and General Manager, Brazil

Nicolae Stanca
VP and General Manager, Romania

Shane Williams
VP, Capital Projects

Jacinta Zaleski
VP, Human Resources

Eldorado Gold Financials 2015 73

SHAREHOLDER INFORMATION

STOCK EXCHANGES
Eldorado is traded on the Toronto Stock
Exchange (TSX: ELD) and on the New York
Stock Exchange (NYSE: EGO)

ANNUAL SHAREHOLDERS
MEETING
May 25, 2016
3:00pm Pacific Time

INVESTOR CONTACT
INFORMATION
For inquiries related to Eldorado Gold’s
operating activities and financial performance:

Krista Muhr
Vice President Investor Relations
604 687 4018
info@eldoradogold.com

For inquiries related to shares, dividends or
change of address:

Computershare Investor Services
1 800 564 6253
www-us.computershare.com/Investor/
Contact/Enquiry

Vancouver Club
915 West Hastings Street
Vancouver, BC V6C 1C6

TRANSFER AGENT AND
REGISTRAR
Computershare Investor Services
100 University Avenue
8th Floor, North Tower
Toronto, Ontario M5J 2Y1

AUDITORS
KPMG LLP
Vancouver, BC

LEGAL COUNSEL
Fasken Martineau DuMoulin LLP
Vancouver, BC Canada

Dorsey & Whitney LLP
Denver, CO USA

SOURCES OF SHAREHOLDER
INFORMATION
These financials are one of several sources of
information for shareholders of Eldorado Gold
Corporation. Other sources include:

■ The comparative interim financial
statements published quarterly.

■ The Management Proxy Circular describing
the matters to be considered at the Annual
Meeting of Shareholders.

■ The Annual Information Form, Form 40-F
and other corporate and continuous
disclosure documents available on the
Company’s website, the SEDAR website
(www.sedar.com) and the US Securities
and Exchange Commission website
(www.sec.gov).

Section 303A.11 of the NYSE Listed Company
Manual permits foreign private issuers to
follow home country practices in lieu of
certain provisions of the NYSE Listed Company
Manual. A foreign private issuer that follows
home country practices in lieu of certain
provision of the NYSE Listed Company Manual
must disclose any significant ways in which
its corporate governance practices differ
from those followed by domestic companies.
A description of the significant ways in which
the Company’s governance practices differ
from those followed by domestic companies
pursuant to the NYSE Listed Company
Manual is available on the Company’s website
at www.eldoradogold.com.

COMPANY FILINGS
www.sedar.com
www.sec.gov

74 Eldorado Gold Financials 2015

CORPORATE INFORMATION

Canada (Head Office)

Greece

Eldorado Gold Corporation
1188 Bentall 5
550 Burrard Street
Vancouver, BC V6C 2B5 Canada

Tel: 604 687 4018
Fax: 604 687 4026
Toll-free: 1 888 353 8166

Hellas Gold SA & Thracean
Gold Mining SA
23A Vasilissis Sofias Avenue
Athens
10674 Greece

Tel: 30 214 687 0000
Fax: 30 214 687 0095

Turkey

Brazil

Tüprag Metal Madencilik
Sanayive Ticaret A.S.
Iran Caddesi
Turan Emeksiz Sok. No. 1
06700 Gaziosmanpasa
Ankara Turkey

Tel: 90 312 468 4536
Fax: 90 312 468 2646

China

Eldorado Gold Corporation
Room 1001, West Tower
LG Twin Towers
B-12 Jianguomenwai Avenue
Chaoyang District, Beijing
100022 China

Tel: 86 10 5828 7966
Fax: 86 10 5828 7967

Unamgen Mineração e Metalurgia S/A
Avenida Olegário Maciel
1846 – Santo Agostinho
Belo Horizonte, MG
CEP 30180-112 Brazil

Tel: 55 31 2101 3753
Fax: 55 31 2101 3758

Romania

Deva Gold SA
No. 9 Dragos Voda Street
BL. 28, SC. A-B
Deva, Hunedoara County
330034 Romania

Tel: 40 25 423 3680
Fax: 40 25 423 3682

Eldorado Gold Financials 2015 75

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS AND INFORMATION

Certain statements and information in this Report, including all statements that are not historical facts, are forward-looking statements and forward-looking information within the meaning
of applicable US and Canadian securities laws. Such forward-looking statements or information include, but are not limited to, statements or information with respect to our strategy, plans,
goals, outlook, financial disclosure; our future financial and operating performance, price of gold and other commodities, cash flow, cash costs, targets, production and expenditures; our
mineral reserve and resource estimates; and our proposed mine development (including permitting), exploration, acquisitions, our expectation as to future performance at our mines and
other events and developments that have not yet happened. Often, these statements include words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” 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.

With respect to forward-looking statements and information included in this Report, we have made numerous assumptions, estimates and opinions that may prove to be incorrect, including
among other things, assumptions about the price of gold and other commodities; exchange rates; anticipated costs and expenditures; production, mineral reserves and resources and
metallurgical recoveries; the impact of acquisitions, dispositions, suspensions or delays on our business; the political and economic environment in which we operate; and the ability to achieve
our goals. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there is no assurance that
the forward-looking statements or information will prove to be accurate. By their nature, forward-looking statements and information are based on assumptions and involve known and
unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements or information. Such risks, uncertainties and other factors include, among other things, the following:

we currently or may in the future conduct business;

such permits and licenses, and risks of defective title to mineral property;

• competition for mineral properties and merger and acquisition targets;
• environmental risks, including use and transport of regulated substances;
•

infrastructure, water, energy, equipment and other input availability and durability, and their cost and impact on capital and operating costs, exploration, development and
production schedules;

or quantities of reserves;

increased capital requirements and the ability to obtain financing;

be higher than anticipated;

• the impact of acquisitions and dispositions, monetization, mergers and other business combinations and transactions, including effect of changes in our portfolio of projects on our

See our Annual Information Form and our quarterly and annual MD&A for additional information on risks, uncertainties and other factors relating to the forward-looking statements and
information. Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or
information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond
our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements
or information as a result of new information or events after the date of this Report except as may be required by law. All forward-looking statements and information made in this document
are qualified by this cautionary statement.

Cautionary Note about Production Outlook, Guidance and Estimates
Readers are cautioned that production outlook, guidance and estimates are subject to a variety of factors that are likely to cause actual results to vary from our estimates, and such variations
may be material. Forward-looking information generally involves risks and uncertainties as described above which are, in many instances, beyond our control, including: (i) global and local
economic conditions; (ii) pricing and cost factors; (iii) unanticipated events or changes in current development plans, execution of development plans, future operating results, financial
conditions or other aspects of our business over time; and (iv) unfavourable regulatory developments, that could cause actual events and results to vary significantly from those included in or
contemplated by such statements. The production outlook, guidance and estimates reflect certain assumptions by us, which assumptions may differ with respect to future events, economic,
competitive and regulatory conditions, financial market conditions and future business decisions, including, without limitation, a continuation of existing business operations on substantially
the same basis as currently exists all of which assumptions are difficult to predict and many of which are beyond our control. Accordingly, there is no assurance that the outlook, guidance and
estimates are indicative of our future performance or that actual results would not differ materially from those in the outlook, guidance and estimates.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred mineral resource” used herein are Canadian mining terms used in accordance
with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining and Metallurgy and
Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time. These definitions differ from the
definitions in the United States Securities & Exchange Commission (“SEC”) Industry Guide 7. In the United States, a mineral reserve is defined as a part of a mineral deposit which could
be economically and legally extracted or produced at the time the mineral reserve determination is made.

While the terms “mineral resource”, “measured mineral resource,” “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations,
they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information
contained herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies in
SEC filings. 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. Accordingly, information herein containing descriptions of our mineral deposits may not be comparable to similar information made public by US companies subject to
the reporting and disclosure requirements under US federal securities laws and the rules and regulations thereunder.

76 Eldorado Gold Financials 2015

CORPORATE INFORMATION

Canada (Head Office)

Greece

Eldorado Gold Corporation
1188 Bentall 5
550 Burrard Street
Vancouver, BC V6C 2B5 Canada

Tel: 604 687 4018
Fax: 604 687 4026
Toll-free: 1 888 353 8166

Hellas Gold SA & Thracean
Gold Mining SA
23A Vasilissis Sofias Avenue
Athens
10674 Greece

Tel: 30 214 687 0000
Fax: 30 214 687 0095

Turkey

Brazil

Unamgen Mineração e Metalurgia S/A
Avenida Olegário Maciel
1846 – Santo Agostinho
Belo Horizonte, MG
CEP 30180-112 Brazil

Tel: 55 31 2101 3753
Fax: 55 31 2101 3758

Romania

Deva Gold SA
No . 9 Dragos Voda Street
BL . 28, SC . A-B
Deva, Hunedoara County
330034 Romania

Tel: 40 25 423 3680
Fax: 40 25 423 3682

Tüprag Metal Madencilik
Sanayive Ticaret A.S.
Iran Caddesi
Turan Emeksiz Sok . No . 1
06700 Gaziosmanpasa
Ankara Turkey

Tel: 90 312 468 4536
Fax: 90 312 468 2646

China

Eldorado Gold Corporation
Room 1001, West Tower
LG Twin Towers
B-12 Jianguomenwai Avenue
Chaoyang District, Beijing
100022 China

Tel: 86 10 5828 7966
Fax: 86 10 5828 7967

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Eldorado Gold Corporation
1188 Bentall 5
550 Burrard Street
Vancouver, BC V6C 2B5 Canada

Tel: +1 604 687 4018
Fax: +1 604 687 4026
Toll-free: +1 888 353 8166
eldoradogold.com

TSX: ELD
NYSE: EGO