CC Filed by Filing Services Canada Inc. 403-717-3898

EX-99.1 2 newsrelease.htm NEWS RELEASE CC Filed by Filing Services Canada Inc. 403-717-3898

NEWS RELEASE

ELD No. 06-18

TSX: ELD, AMEX: EGO

November 6, 2006

Q3 2006 Financial and Operational Results

(all figures in United States dollars, unless otherwise noted)

VANCOUVER, BC – Paul N. Wright, President & Chief Executive Officer of Eldorado Gold Corporation (“Eldorado” the “Company” or “we”) is pleased to report on the Company’s financial and operational results for the third quarter ended September 30, 2006.

“We are extremely pleased with our first quarter of commercial production at Kisladag. Production continues to increase monthly as the solution inventory increases and our costs have quickly assumed a level at or better than plan. Despite a short term delay associated with a minor fire at our Tanjianshan project commissioning is back underway with our first production anticipated by month end. These are significant milestones for our Company and attest to the high quality of Eldorado staff in successfully building and commissioning two mines this year,” said Paul Wright, President and Chief Executive Officer. “We look forward to continued growth as we acquire, explore and develop mineral properties.”

Q3 2006 Highlights

Earnings of $0.02 per share

Produced 41,082 ounces of gold from two mines during the quarter

Commenced commercial production at our Kisladag gold mine in Turkey and produced 27,477 ounces at a cash operating cost of $218 per ounce

Began commissioning our Tanjianshan gold mine in China, which is scheduled to start production in November

Commenced drilling program at Efemçukuru to support the feasibility study

Financial Results

At September 30, 2006, we held $81.1 million in cash and short-term deposits and a further $65.0 million in two reserve accounts, offsetting our debt of $61.3 million. We remain hedge free.

Our consolidated net income for Q3 2006 was $5.2 million or $0.02 per share compared with a net loss of $6.5 million or ($0.02) per share in Q3 2005. This increase in net income resulted from increased revenues from gold sales, increased interest revenues and a foreign exchange gain resulting primarily from Canadian dollars on hand, offset by increased exploration and administrative expenses.

In Q3 2006, we sold 46,238 ounces of gold at an average price of $620 per ounce, compared to 17,906 ounces at an average price of $615 per ounce in Q2 2006. The increased gold production results from the start of commercial production at our Kisladag mine in July.

Operating Performance

Kisladag

During the quarter, we produced 27,477 ounces of gold at a cash operating cost of $218 per ounce. For 2006, we estimate total production from Kisladag of approximately 70,000 ounces.


Kisladag production	June	July	August	September	October	Total to date
Gold produced (oz)	6,872	7,502	9,781	10,194	11,603	45,952
Cash operating cost ($/oz)	242	223	222	210	not yet available

Mine production continues in accordance with plan with 2.0 million tonnes of ore mined and placed on the leach pad in the quarter. Reconciliation of the mine ore and reserve model continues to be excellent.

During the quarter crushed ore placement continues to increase in accordance with plan with 1.6 million tonnes of crushed ore transported to the leach pad.

Sao Bento

In Q3 2006, our Sao Bento mine produced 13,605 ounces of gold at a cash operating cost of $493 per ounce. We expect to complete commercial production at Sao Bento near the end of 2006 or early 2007, and we are currently considering alternatives for the sale of infrastructure.

Development

China

During Q3 the majority of the construction was completed at Tanjianshan and commissioning commenced in October. The tailings dam and lines are complete, power is hooked up to the national grid, and installation of the crushing and grinding circuit is complete.

The commissioning team has completed the assessment of the fire. The damaged cyclones have been temporarily replaced with Chinese-made units, pending delivery of the final Warman cyclones. Commissioning has restarted, and we expect to complete commissioning and testing at Tanjianshan in November, with commercial production during the first quarter of 2007.

Turkey

At Efemçukuru, we initiated a drilling program designed to convert inferred resources into measured and indicated resources. Based on results received to date, we have elected to accelerate the Efemçukuru drilling program of 13,000 meters with the objective of both increasing reserves and planned production rates. Accordingly, we expect to release the results of our feasibility study in April 2007.

Exploration

Our exploration budget for 2006 is $14 million. We continue to advance our pipeline of promising properties in Turkey, Brazil and China. To September 30, 2006, we have spent approximately $9 million in exploration.

Turkey

Third quarter activity on our Turkish properties consisted of mapping and sampling activities. We wound down our activities at Mahmur Tepe following completion of the diamond drill program. We continued reconnaissance work on our other concessions.

Brazil

During the third quarter we conducted trenching and channel sampling over the Gaivotas West and Guaxeba pit areas, and diamond drilling, completing 18 holes in the quarter. We commissioned and executed a structural geology review designed to better understand the geology and mineralization at the Vila Nova project. We continued drill testing using three contract diamond drill rigs.

China

We completed the bulk of the planned exploration work at our Tanjianshan licenses this quarter. The diamond drilling focused on infill and near deposit areas at Jinlonggou and Qinlongtan, and we drilled 58 holes. Drilling results will be incorporated in our updated reserve statement early in 2007. Mapping and surface sampling took place in the Longbaigou–Huanglvgou target region, an area that lies between the Jinlonggou and Qinlongtan deposits. We conducted induced polarization ("IP") geophysical surveys in this area, and drilled six holes.

Eldorado is a gold producing and exploration company actively growing businesses in Turkey, China, and Brazil. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

/s/ Paul N. Wright

Paul N. Wright

President and Chief Executive Officer

Certain of the statements made may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, or results to differ from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward looking statements. Specific reference is made to “Narrative Description of the Business – Risk Factors” in the Company’s latest Annual Information Form, and Form 40-F. Forward-looking statements in this release include statements regarding the expectations and beliefs of management. Such factors include, amongst others, the following: gold price volatility; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the section entitled “Business - Risk Factors” in the Company’s latest Annual Information Form, and Form 40F. We do not expect to update forward-looking statements continually as conditions change and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities.

Eldorado Gold Corporation’s shares trade on the Toronto Stock Exchange (TSX: ELD) and the American Stock Exchange (AMEX: EGO). The TSX has neither approved nor disapproved the form or content of this release.

Contact:

Nancy E. Woo, Manager Investor Relations

Eldorado Gold Corporation

Phone: 604.601.6650 or 1.888.353.8166

1188, 550 Burrard Street

Fax: 604.687.4026

Vancouver, BC V6C 2B5

Email nancyw@eldoradogold.com

Web site: www.eldoradogold.com

Request for information packages: info@eldoradogold.com

ELDORADO GOLD CORPORATION

Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)

		September 30			December 31
		2006			2005
		(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	81,051		$	33,826
Restricted cash (note 4)		15,000			–
Accounts receivable		14,168			8,264
Prepaids		4,608			2,024
Inventories		23,345			7,597
		138,172			51,711
Restricted cash (note 4)		58,300			50,000
Property, plant and equipment		262,297			186,610
Mineral properties and deferred development		27,948			23,326
Investments and advances		51			562
Other assets		8,103			6,288
Goodwill		2,238			2,238

	$	497,109		$	320,735
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	20,419		$	20,909
Current portion of capital lease obligation		30			37
Current portion of long term debt (note 4)		10,424			309
		30,873			21,255
Capital lease obligation		74			90
Long term debt (note 4)		50,832			50,832
Asset retirement obligation		11,628			11,143
Contractual severance obligation		3,268			2,437
Future income taxes		11,005			10,051
		107,680			95,808
SHAREHOLDERS' EQUITY
Share capital (note 5)		739,365			573,721
Warrants (note 5(d))		24			902
Contributed surplus (note 5(e))		8,852			7,074
		(358,812	)		(356,770	)
Deficit		389,429			224,927

	$	497,109		$	320,735

Commitments and contingencies (note 6)

See accompanying notes to consolidated financial statements

APPROVED BY THE BOARD OF DIRECTORS

/s/ Paul N. Wright /s/ Robert R. Gilmore

Director Director

ELDORADO GOLD CORPORATION

Consolidated Statements of Operations
(Unaudited – Expressed in thousands of U.S. dollars except per share amounts)

		Three months ended						Nine months ended
		September 30						September 30
		2006			2005			2006			2005
REVENUE
Gold sales	$	28,680		$	9,170		$	48,279		$	21,532
Interest and other income		2,043			1,352			5,137			3,026
		30,723			10,522			53,416			24,558
EXPENSES
Operating costs		15,022			9,405			31,343			24,379
Depletion, depreciation and amortization		1,831			2,467			2,002			7,384
General and administrative		4,154			3,573			10,382			8,240
Exploration expense		3,608			2,423			9,011			5,251
Stock based compensation expense		625			365			2,639			1,907
Accretion of asset retirement obligation		162			120			485			362
Foreign exchange gain		(651	)		(1,897	)		(1,565	)		(189	)
Gain on disposal of assets		(41	)		(39	)		(945	)		(39	)
Interest and financing costs		736			8			797			44
Writedown of assets		–			–			–			662
		25,446			16,425			54,149			48,001

Income (loss) before income taxes		5,277			(5,903	)		(733	)		(23 ,443	)
Tax recovery (expense) – current		(287	)		(164	)		(356	)		(234	)
Tax recovery (expense) – future		209			(440	)		(953	)		(2,850	)

NET INCOME (LOSS) FOR THE PERIOD	$	5,199		$	(6,507	)	$	(2,042	)	$	(26,527	)

Basic income (loss) per share – US$	$	0.02		$	(0.02	)	$	(0.01	)	$	(0.10	)
Diluted income (loss) per share – US$	$	0.02		$	(0.02	)	$	(0.01	)	$	(0.10	)

Basic income (loss) per share – Cdn$	$	0.02		$	(0.03	)	$	(0.01	)	$	(0.12	)
Diluted income (loss) per share – Cdn$	$	0.02		$	(0.03	)	$	(0.01	)	$	(0.12	)

Weighted average number of shares outstanding		340,885,429			277,933,154			335,515,842			277,892,706

Consolidated Statements of Deficit
(Unaudited – Expressed in thousands of U.S. dollars)
		Three months ended						Nine months ended
		September 30						September 30
		2006			2005			2006			2005
Deficit, beginning of period	$	(364,011	)	$	(327,664	)	$	(356,770	)	$	(307,644	)
Net income (loss) for the period		5,199			(6,507	)		(2,042	)		(26,527	)
Deficit, end of the period	$	(358,812	)	$	(334,171	)	$	(358,812	)	$	(334,171	)

See accompanying notes to consolidated financial statements

ELDORADO GOLD CORPORATION

Consolidated Statements of Cash Flows
(Unaudited – Expressed in thousands of U.S. dollars)

		Three months ended						Nine months ended
		September 30						September 30
		2006			2005			2006			2005
Cash flows from operating activities
Net income (loss) for the period	$	5,199		$	(6,507	)	$	(2,042	)	$	(26,527	)
Items not affecting cash
Accretion of asset retirement obligation		162			120			485			362
Contractual severance expense		344			106			1,032			318
Depletion, depreciation and amortization		1,831			2,467			2,002			7,384
Foreign exchange (gain) loss		(519	)		(1,963	)		(2,498	)		(434	)
Future income taxes		(210	)		440			953			2,850
Gain on disposal of assets		(41	)		(39	)		(945	)		(39	)
Interest and financing costs		720			8			709			44
Stock based compensation		831			134			3,044			1,907
Writedown of assets		–			–			–			662
Changes in non-cash working capital
Accounts receivable and prepaids		(4,902	)		(2,444	)		(8,488	)		(4,544	)
Inventories		(4,414	)		909			(15,748	)		(436	)
Accounts payable and accrued liabilities		466			608			(2,330	)		4,261
Cash flows used for operating activities		(533	)		(6,161	)		(23,826	)		(14,192	)
Cash flows from investing activities
Acquisition of property, plant and equipment for cash		(29,487	)		(25,150	)		(78,421	)		(58,373	)
Proceeds on disposal of property, plant and equipment		1,904			–			1,904			–
Mineral properties and deferred development		(2,916	)		(198	)		(4,622	)		(492	)
Acquisition of Afcan, net of cash received		–			895			–			895
Proceeds from disposal of investments and advances		–			40			1,481			40
Restricted cash, related to environmental deposit		(8,300	)		–			(8,300	)		–
Contractual severance obligation		(201	)		–			(201	)		–
Other assets		367			–			(1,815	)		–
Cash flows used for investing activities		(38,633	)		(24,413	)		(89,974	)		(57,930	)

Cash flows from financing activities
Issuances of long term debt		10,115			15,459			10,115			50,618
Restricted cash, related to long term debt		(15,000	)		(15,332	)		(15,000	)		(50,447	)
Repayment of capital lease obligation		(15	)		–			(23	)		–
Issuance of common shares for cash		5			4,485			163,500			4,827
Cash flows provided by (used for) financing activities		(4,895	)		4,612			158,592			4,998

Foreign exchange gain (loss) on cash held in foreign currency		520			1,953			2,433			418

Net increase (decrease) in cash and cash equivalents		(43,541	)		(24,009	)		47,225			(66,706	)
Cash and cash equivalents at beginning of the period		124,592			92,693			33,826			135,390

Cash and cash equivalents at end of the period	$	81,051		$	68,684		$	81,051		$	68,684
Supplementary cash flow information
Income taxes paid	$	21		$	108		$	114		$	188
Interest paid	$	1,216		$	–		$	1,907		$	–
Non-cash transactions
Interest capitalized to property, plant and equipment	$	–		$	–		$	1,131		$	–

See accompanying notes to consolidated financial statements.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

Nature of operations

Eldorado Gold Corporation ("Eldorado", or the "Company") is engaged in gold mining and related activities, including exploration and development, extraction, processing, and reclamation. Gold, the primary product, is produced in Turkey and Brazil. Development and construction of mines and processing facilities are underway in China. Exploration activities are carried on in Brazil, Turkey and China.

The Company has not determined whether all of its development properties contain ore reserves that are economically recoverable. The recoverability of the amount shown for mineral properties and deferred development is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing, licenses and permits to complete the exploration and development of its properties, and upon future profitable production or proceeds from the disposition of the properties. The amounts shown as mineral properties and deferred development represent net costs to date, less amounts amortized and/or written off and do not necessarily represent present or future values.

Effective July 1, 2006, the Company commenced commercial production at its Kisladag gold mine in Turkey.

Basis of presentation and principles of consolidation

These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles following the same accounting policies and methods of application as the audited annual financial statements of the Company as at and for the year ended December 31, 2005, except as stated in note 3. The disclosures in these interim financial statements do not conform in all respects to the requirements of generally accepted accounting principles for annual financial statements. These interim financial statements should be read in conjunction with the most recent audited annual financial statements of the Company.

All material intercompany balances and transactions have been eliminated.

Certain of the prior periods' balances have been reclassified to conform to the current period's presentation.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

Significant accounting policies

As a result of the commissioning of the Kisladag mine, the Company adopted an accounting policy for open pit operations, analogous to its accounting policy for underground operations:

Mineral properties and capitalized development costs, where the mine operating plan calls for production from well defined ore reserves, are amortized over the life of the mine on a units of production basis. Buildings, machinery, mobile and other equipment are amortized on a straight-line basis over their estimated useful lives, not exceeding the life of the mine.

The adoption of this policy has no effect on any prior periods presented.

Deposits, and Long term debt


	September 30	December 31
	2006	2005
Long term debt
Tuprag Loan (note (4(b))	$ 50,000	$ 50,000
CCB Loan (note 4(c))	10,115	–
Sino Gold Limited (note 4(d))	1,141	1,141
	61,256	51,141
less: current portion – CCB Loan	(10,115)	–
less: current portion – Sino Gold Limited	(309)	(309)
	$ 50,832	$ 50,832

Restricted cash
Current
Reserve account related to the CCB Loan (notes 4(a) and 4(c))	$ 15,000	$ –

Long term
Reserve account related to the Tuprag Loan (notes 4(a) and 4(b))	$ 50,000	$ 50,000
Environmental Guarantee Deposit (note 4(e))	8,300	–
	$ 58,300	$ 50,000

(a)

Revolving Credit Facility

In April 2005, a wholly-owned subsidiary of the Company, Tuprag Metal Madencilik Sanayi Ve Ticaret Limited Surketi ("Tuprag"), entered into a $65 million Revolving Credit Facility (the "Revolving Credit Facility") with HSBC Bank USA, National Association ("HSBC Bank").

During the period ended September 30, 2006, the Revolving Credit Facility was split into two portions – $50 million was used as security for the Tuprag Loan (note 4(b)), and $15 million was used as security for the CCB Loan (note 4(c)).

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

(b)

Tuprag Loan

As at September 30, 2006, the total debt outstanding by Tuprag to HSBC Bank (the "Tuprag Loan") was $50 million with interest fixed at LIBOR plus 1.25% on the date of the draw. The Company has drawn this $50 million in four tranches at a weighted average interest rate of 6.00%. Each tranche typically has a maturity of approximately 13 months. The Company expects to renew all scheduled repayments as they arise.

The Tuprag Loan is secured by $50 million deposited by the Company into a reserve account.

(c)

CCB Loan

In September 2006, a subsidiary of the Company, Qinghai Dachaidan Mining Limited ("QDML"), entered into a loan agreement with the China Construction Bank (the "CCB Loan") in the amount of 80 million Chinese renminbis. The CCB Loan bears interest at a fixed rate of 5.814% per annum payable quarterly, and matures on September 20, 2007.

The CCB Loan is secured by $15 million deposited by the Company into a reserve account.

(d)

Sino Gold loan

The loan payable to Sino Gold Limited is non-interest-bearing, and has been discounted at 8%. Minimum repayments required under this loan are as follows:



December 31, 2006		$ 400
December 31, 2007		400
December 31, 2008		400
December 31, 2009		150
		1,350
Less: imputed interest		(209)
		$ 1,141

(e)

Environmental guarantee deposit

The Company's wholly-owned subsidiary, Tuprag, has placed $8.3 million into a restricted account, pursuant to routine environmental and pollution guarantees required by the Turkish Ministry of the Environment, related to the Company's Kisladag mine.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

Share capital

(a)

Authorized share capital

The Company’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.

(b)

Issued and outstanding common shares


Voting common shares	Number of shares	Amount
Balance, December 31, 2005	302,577,378	$ 573,721
Shares issued upon exercise of stock options, for cash	1,312,999	3,794
Shares issued upon exercise of Afcan warrants, for cash	2,502,470	5,300
Warrants reallocated to share capital upon exercise	–	878
Financing, February 2006, net of issue costs	34,500,000	154,406
Estimated fair value of stock options exercised	–	1,266
Balance, September 30, 2006	340,892,847	$ 739,365

At September 30, 2006, there were no non-voting common shares outstanding.

(c)

Share option plans

The Company has share option plans approved by shareholders that allow it to grant options, subject to regulatory terms and approval, to its directors, officers, employees, and consultants.

The continuity of share purchase options is as follows:


	Weighted average exercise price (Canadian dollars)	Number of options	Contractual weighted average remaining life (years)
Balance, December 31, 2005	C$ 3.34	7,176,872	3.36
Granted	5.43	1,589,000
Exercised	3.33	(1,312,999)
Cancelled	3.37	(13,334)
Balance, September 30, 2006	C$ 3.80	7,439,539	4.35

At September 30, 2006, an aggregate of 4,836,869 share purchase options with a weighted average exercise price of Cdn$3.65 had vested and were exercisable.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

The exercise prices of all share purchase options granted during the period were at or above the market price at the grant date. Using an option pricing model, the estimated fair values of all options granted, for the three and nine months ended September 30, 2006 and 2005, which have been reflected in the consolidated statements of operations, are as follows:


	Three months ended September 30		Nine months ended September 30
	2006	2005	2006	2005
Operating costs	$ 167	$ 7	$ 243	$ 104
Exploration	39	10	162	144
Administration	625	117	2,639	1,659
Total compensation cost recognized in operations, credited to contributed surplus	$ 831	$ 134	$ 3,044	$ 1,907

The weighted-average assumptions used to estimate the fair value of options granted during the three and nine months ended September 30, 2006 and 2005 were as follows:


	Three months ended September 30		Nine months ended September 30
	2006	2005	2006	2005
Risk free interest rate	4.5%	3.3%	4.2%	3.2%
Expected volatility	42.0%	50.0%	47.9%	50.0%
Expected life	4.0 years	4.0 years	4.2 years	4.0 years
Expected dividends	nil	nil	nil	nil

(d)

Warrants

The continuity of warrants is:


	Number of warrants	Amount
Balance, December 31, 2005	2,594,778	$ 902
Reallocated to share capital upon exercise	(2,502,470)	(878)
Balance, September 30, 2006	92,308	$ 24

Each warrant is exercisable into one common share at C$2.44 until November 18, 2006.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

(e)

Contributed surplus

The continuity of contributed surplus on the consolidated balance sheet is as follows:


Balance, December 31, 2005	$ 7,074
Non-cash stock-based compensation	3,044
Share purchase options exercised, credited to share capital	(1,266)
Balance, September 30, 2006	$ 8,852

Commitments and contingencies

The Company’s contractual obligations at September 30, 2006, comprise:


	Remainder of 2006	2007	2008	2009	2010	2011+
Long term debt	$ 1,217	$ 12,189	$ 360	$ 139	$ –	$ –
Capital leases	32	36	36	–	–	–
Operating leases and property expenditures	1,258	1,057	1,057	1,057	1,057	3,286
Purchase obligations	27,794	49,229	12,205	12,230	11,829	1,952
Totals	$ 30,301	$ 62,511	$ 13,658	$ 13,426	$ 12,886	$ 5,238

The Company has long term debt of $50 million relating to the Tuprag Loan (note 4(b)). Repayments under this revolving credit facility are not listed in the above totals as the Company expects to renew each tranche as it matures.

Purchase obligations in 2006 of $27.8 million relate to construction activities at the Kisladag and Tanjianshan mines, and include the costs of a contract mining company. Purchase obligations from 2006 through to 2008 include energy and oxygen contracts (totalling $1.9 million) at the Sao Bento mine, and equipment purchases and other contracts (totalling $46.7 million) at the Kisladag mine. Property expenditures for 2006 relate to land fees and contractual exploration for the Vila Nova project iron ore project and the Tanjianshan mine.

ELDORADO GOLD CORPORATION

Notes to the Consolidated Financial Statements

Three and nine months ended September 30, 2006

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

Segment disclosures

The Company operates in a single reportable operating segment, the mining, exploration and development of mineral properties.


	Three months ended September 30		Nine months ended September 30
	2006	2005	2006	2005
Gold sales
Brazil	$ 9,738	$ 9,170	$ 29,337	$ 21,532
Turkey	18,942	–	18,942	–
Total	$ 28,680	$ 9,170	$ 48,279	$ 21,532

Interest and other revenue
Brazil	$ 540	$ 57	$ 738	$ 546
Turkey	152	420	154	530
China	19	11	66	11
Canada	1,332	864	4,178	1,939
All other	–	–	1	–
Total	$ 2,043	$ 1,352	$ 5,137	$ 3,026

Net income (loss)
Brazil	$ 115	$ (5,026)	$ (915)	$ (16,126)
Turkey	7,454	(801)	2,090	(3,252)
China	(146)	(1,077)	(453)	(1,077)
Canada	(2,204)	609	(2,729)	(6,072)
All other	(20)	(212)	(35)	–
Total	$ 5,199	$ (6,507)	$ (2,042)	$ (26,527)


			September 30 2006	December 31 2005
Total assets
Brazil			$ 36,118	$ 23,517
Turkey			196,053	138,737
China			91,383	97,901
Canada			173,438	60,556
All other			117	24
Total			$ 497,109	$ 320,735