Mr. George Burns reports

ELDORADO GOLD REPORTS Q2 2023 FINANCIAL AND OPERATIONAL RESULTS; WELL POSITIONED TO MEET 2023 GUIDANCE

Eldorado Gold Corp. today released the company's financial and operational results for the second quarter of 2023. For further information, please see the company's consolidated financial statements and management's discussion and analysis (MD&A) filed on SEDAR+ under the company's profile.

Second quarter 2023 highlights

Operations

• Gold production: A total of 109,435 ounces, compared with 113,462 ounces in Q2 2022, a 4-per-cent decrease from Q2 2022 as a result of lower throughput at Lamaque due to the wildfires in the region and lower average gold grade and recoveries at Olympias.
• Gold sales: A total of 110,134 ounces at an average realized gold price per ounce sold of $1,953, compared with 107,631 ounces at an average realized gold price per ounce sold of $1,849 in Q2 2022. Gold sales increased 2 per cent from Q2 2022 primarily a result of an increase in production at Kisladag.
• Production costs: A total of $117.0-million, compared with $109.3-million in Q2 2022. The increase was primarily due to higher royalty expense and increased sales volumes.
• Cash operating costs: A total of $791 per ounce gold sold, compared with $789 per ounce gold sold in Q2 2022. Cash operating costs increased from Q2 2022 primarily as a result of lower byproduct credits.
• All-in sustaining costs (AISC): A total of $1,296 per ounce sold, compared with $1,270 per ounce sold in Q2 2022, primarily reflecting the increase in cash operating costs per ounce sold and slightly offset by lower sustaining capital expenditures.
• Total capital expenditures: A total of $99.4-million, including $42.6-million of growth capital1 invested at Skouries, with activity focused on mobilization, procurement and advancement of contracts. Growth capital invested at the operating mines totalled $29.0-million and was primarily related to Kisladag waste stripping to support mine life extension and construction of the first phase of the North Heap leach pad. Sustaining capital totalled $26.1-million, including $16.2-million at Lamaque for underground development, equipment rebuilds and the expansion of the tailing management facility.
• Production and cost outlook: The company is maintaining its 2023 annual gold production guidance and cost guidance. Gold production is expected to be 475,000 to 515,000 ounces of gold. Cash operating costs per ounce sold are expected to be $760 to $860, total operating costs of $860 to $960 per ounce sold and AISC per ounce sold of $1,190 to $1,290.

Financial

• Revenue: A total of $229.9-million in Q2 2023, an increase of 8 per cent from $213.4-million in Q2 2022, primarily due to higher sales volumes and higher average realized gold price.
• Net cash generated from operating activities from continuing operations: $75.3-million compared with $27.0-million in Q2 2022, primarily as a result of higher gold sales volumes and higher average realized prices.
• Cash flow from operating activities before changes in working capital: A total of $82.4-million in Q2 2023, compared with $49.2-million in Q2 2022, primarily driven by higher sales volumes, lower finance costs and lower income taxes paid.
• Cash, cash equivalents and term deposits: A total of $456.6-million, as at June 30, 2023. Cash increased by $194.7-million from March 31, 2023, primarily as a result of a strategic equity investment ($61.3-million) by the European Bank for Reconstruction and Development (EBRD) and a bought deal financing ($101.1-million) that were both completed during the quarter.
• Net earnings (loss): Net earnings of $1.5-million, or one cent earnings per share, compared with net loss of $22.9-million or 12 cents loss per share in Q2 2022. Higher net earnings in Q2 2023, compared with Q2 2022, is primarily a result of higher gold sales, higher average realized gold prices, foreign exchange gain and lower finance costs.
• Adjusted net earnings before interest, taxes, depreciation and amortization (adjusted EBITDA): A total of $106.8-million, compared with $88.5-million in Q2 2022. The increase was primarily driven by increased gold sales, coupled with lower finance costs.
• Adjusted net earnings (loss): A total of $16.1-million or nine cents earnings per share, compared with net earnings of $13.6-million or seven cents earnings per share in Q2 2022. Adjusted net earnings in Q2 2023 added back a non-cash loss of $21.4-million on foreign exchange translation of deferred tax balances and removed a non-cash $8.4-million gain on derivative instruments, primarily on gold collars entered into during this quarter.
• Free cash flow: Negative $21.7-million compared with negative $62.7-million in Q2 2022. Free cash flow excluding Skouries was $13.2-million compared with negative $56.9-million in Q2 2022, with the stronger figure this quarter due primarily to both higher sales volumes and realized gold price as well as lower tax instalments and temporary working capital movements.
• Project facility drawdowns: Drawdowns on the Skouries term facility for Q2 2023 totalled 65.9 million euros, including the previously reported initial drawdown of 32.3 million euros in April, 2023.

Corporate

• Strategic investment by the EBRD: On June 14, 2023, Eldorado completed a strategic investment of $81.5-million ($61.3-million (U.S.)) by the EBRD. In June the funds were invested in the Skouries project in Northern Greece, and were credited against the company's 20-per-cent equity funding commitment per the terms of the project financing facility that closed on April 5, 2023.
• Bought deal: On June 7, 2023, the company completed a bought deal offering for gross proceeds of $135.2-million ($101.1-million (U.S.)). Proceeds from the offering are expected to be used to finance growth initiatives across Eldorado's portfolio, including some not currently contemplated within the company's five-year plan, as well as for general corporate and working capital purposes.
• Gold collar contracts: In May, 2023, Eldorado entered into a series of zero-cost gold collar contracts in order to manage potential cash flow variability during the Skouries construction period.
• Sustainability: On May 31, 2023, the company published the 2022 sustainability report, its 11th annual report, detailing the company's environmental, social and governance performance.
• Appointed vice-president, legal: On July 24, 2023, Tamiko Ohta was appointed as vice-president, legal.

Skouries highlights

• As at June 30, 2023, detailed engineering is 48 per cent complete and procurement is 62 per cent complete.
• Growth capital invested of $42.6-million in Q2 2023, expected total investment of $240-million to $260-million in 2023.
• Mobilized the first major earthwork initiative for construction of the haul roads to build earthworks structures.
• Commenced structural steel and cladding of process plant and foundation construction of primary crusher.
• On track for commissioning in mid-2025 and commercial production at the end of 2025.

Transitioned to full construction in Q2 2023 with finalization of the project financing. Capital investment in Q2 2023 continued to focus on early construction works, engineering and procurement. Underground development advanced the west decline while mobilization occurred related to the first major earthwork initiative for construction haul roads to build earthworks structures. Upcoming milestones in 2023 include the mobilization of major construction contracts for concrete, finalizing the awards of the remaining major procurement and contract packages to 90-per-cent completion, and advancing detailed engineering to 90-per-cent completion.

"During the quarter, both Kisladag and Lamaque demonstrated resiliency in the face of extraordinary weather-related events," said George Burns, Eldorado Gold's president and chief executive officer. "Starting in late May, wildfires in the Abitibi region impacted operations at Lamaque. The safety of our employees and contractors is our top priority and a number of shifts were suspended. Our team took the opportunity to resequence the maintenance schedule and devised an alternative route to safely get employees to the Triangle underground that has resulted in minimal impact to expected production for the year. During the month of May at Kisladag, the region experienced heavy rainfall, and despite the impact, the team safely delivered on its key milestones during the quarter which included successfully completing the commissioning of the new agglomeration circuit and rotating the high-pressure grinding rolls for the first time.

"At Olympias, I am pleased to report that the team delivered on a number of key productivity initiatives including implementing ventilation on demand and bulk emulsion blasting during the quarter," continued Mr. Burns. "Further, the substation is now energized, and in early July, the ventilation fans were able to start, which is expected to not only improve our energy efficiency and health and safety of our employees, but also increase the number of development headings we can effectively work in. I see this as the inflection point that we have been working towards over the past several years through our transformation efforts, which we expect will give us the ability to drive increased tonnage and production going forward. During the quarter, as we worked to finalize the implementation of these initiatives at Olympias which were expected earlier in the year, our mine sequencing was impacted which resulted in lower grades impacting gold and byproduct production. That, in combination with lower realized zinc byproduct prices and higher treatment charges, resulted in much higher all-in sustaining costs. We expect these costs to trend downwards as we realize the benefits of our productivity initiatives and sequence back into higher grade stopes in the second half of the year, consistent with our 2023 Olympias guidance.

"In sustainability, Eldorado released its 11th annual sustainability report in late May highlighting our environmental, social and governance performance over the past year," said Mr. Burns. "Further, our team in Greece completed their first verification against the Mining Association of Canada's 'Towards Sustainable Mining' protocols. They achieved 'Triple A' ratings across all indicators for tailings management and biodiversity, underlining our commitment to responsible mining practices. At Lamaque, despite the wildfires, we took delivery of our first electric underground haul truck, marking the first of its kind in Quebec. Once fully operational, we expect electric trucks at Lamaque to both mitigate our GHG emissions and support lower operating costs due to anticipated productivity improvements."

Total revenue was $229.9-million in Q2 2023, an increase of 8 per cent from $213.4-million in Q2 2022 and was comparable to $229.4-million earned in Q1 2023. Total revenue was $459.2-million in the six months ended June 30, 2023, an increase from $408.1-million in the six months ended June 30, 2022. The increases in both three- and six-month periods were primarily due to higher sales volumes, and higher average realized gold price.

Production costs increased to $117.0-million in Q2 2023 from $109.3-million in Q2 2022 and to $228.2-million in the six months ended June 30, 2023, from $213.9-million in the six months ended June 30, 2022. Increases in both periods were primarily due to higher royalty expense and increased sales volumes.

Cash operating costs averaged $791 per ounce sold in Q2 2023, an increase from $789 in Q2 2022, which is primarily due to lower byproduct credits. Cash operating costs per ounce sold averaged $784 in the six months ended June 30, 2023, a decrease from $810 in the six months ended June 30, 2022, primarily due to an increase in volume sold.

AISC (all-in sustaining costs) per ounce sold averaged $1,296 in Q2 2023, an increase from $1,270 in Q2 2022, due to increases in royalties and G&A (general and administrative) costs per ounce sold, partially offset by lower sustaining capital expenditures. AISC per ounce sold averaged $1,252 in the six months ended June 30, 2023, a decrease from $1,306 in the six months ended June 30, 2022, primarily reflecting the decrease in cash operating costs per ounce sold and lower sustaining capital expenditures.

The company reported net earnings attributable to shareholders from continuing operations of $1.5-million (one cent earnings per share) in Q2 2023 compared with net loss of $22.9-million (12 cents loss per share) in Q2 2022 and net earnings of $20.9-million (11 cents earnings per share) in the six months ended June 30, 2023, compared with net loss of $62.6-million (34 cents loss per share) in the six months ended June 30, 2022. The higher net earnings this quarter, compared with Q2 2022, was driven by gains on both derivative instruments and foreign exchange, partially offset by higher income tax expense. The higher net earnings in the six months ended June 30, 2023, was primarily due to higher operating income from the increase in gold sales, lower mine standby costs and writedown of assets, gains on derivatives and foreign exchange, and lower income tax expense.

Adjusted net earnings was $16.1-million (nine cents earnings per share) in Q2 2023 compared with adjusted net earnings of $13.6-million (seven cents per share) in Q2 2022. Adjusted net earnings in Q2 2023 removed a $8.4-million gain on derivative instruments, primarily on gold collars entered into during this quarter, while adjusted net earnings in Q2 2022 added back a $14.4-million loss on redemption option derivative for the senior notes.

Conference call

A conference call to discuss the details of the company's second quarter 2023 results will be held by senior management on Friday, July 28, 2023, at 11:30 a.m. ET (8:30 a.m. PT). The call will be webcast and can be accessed at Eldorado's website.

About Eldorado Gold Corp.

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada, Greece and Romania. The company has a highly skilled and dedicated work force, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

We seek Safe Harbor.