Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) is pleased to announce that its wholly-owned subsidiary, Hellas Gold Single Member S.A. has entered into a €680 million project financing facility for the development of the Skouries Project in Northern Greece with National Bank of Greece S.A. and Piraeus Bank S.A. as lead arrangers. Consistent with the Company’s previous disclosure, the Term Facility will provide 80% of the expected future funding required to complete the Project, which is approximately half-built. The Term Facility is non-recourse to Eldorado and the collateral securing the Term Facility covers the Skouries Project and the Hellas operating assets. The remaining 20% of Project funding is expected to be fully covered by Eldorado’s existing cash and future cash flow from operations. Until such further equity is fully invested, Eldorado’s investment undertaking for the Project will be fully backstopped by a letter of credit from the Company’s Revolving Credit Facility. Drawdown on the Term Facility is subject to customary closing conditions. The Company expects such conditions to be satisfied and the initial drawdown to occur in the first quarter of 2023.

The Company is also pleased to announce that its Board of Directors has approved, conditional upon the initial drawdown of the Term Facility, the investment decision and full re-start of construction at Skouries. The Company will host a conference call on Thursday, December 15, 2022, at 11:30 am ET (8:30 am PT). The call details are at the end of this news release.

“Skouries represents the next phase of growth at Eldorado, generating significant value for all of our stakeholders with robust project economics and providing many benefits to the local communities and economy in Greece,” said Steve Reid, Chair of the Board. “Having had the opportunity to tour Skouries recently, Eldorado’s board and the leadership team are excited to be resuming construction and bringing this world-class asset into production. On behalf of the Board, I want to congratulate the team on this important milestone.”

“We are proud to be announcing the signing of this financing and the restart of construction at Skouries,” said George Burns, President and CEO of Eldorado Gold. “The participation of Greek lenders in the Project provides aligned strategic partners as we advance Skouries towards commercial production. The Term Facility covers 80% of the expected remaining future funding required to complete the Project. The Company is able to fund the remaining 20% from its current balance sheet, future cash flow from existing operations and will receive a credit for its actual expenditures during the pre-construction phase in 2022, all of which fully addresses the Project funding requirement.”

“Our focus now shifts to project execution, with first production expected in the second half of 2025, followed by a ramp-up as we optimize facilities,” continued Burns. “Once in production, Skouries will have a significant impact on Eldorado’s total gold production and cash cost profile and will diversify our business through revenue from copper. On behalf of the Eldorado and Hellas teams, I want to thank our local partners and workforce, the Aristotle Municipality, the Greek government, and National Bank of Greece and Piraeus Bank, for their support of the Project. We look forward to working with them and developing a world-class mine in the region adhering to best-in-class sustainability standards.”

Highlights of the Term Facility:

• Borrower: Hellas Gold Single Member S.A., a 100%-owned subsidiary of Eldorado.
• Mandated Lead Arrangers: National Bank of Greece and Piraeus Bank (the “Lenders”)
• Term Facility Amount: €680 million, consisting of:
  • €480 million commercial loan;
  • €100 million of initial funding from the Greek Recovery and Resilience Facility (“RRF”);
  • €100 million commercial bridge loan that is expected to be replaced by an additional RRF loan in 2023.
• Interest Rate:
  • Commercial loans: Variable interest rate of 5.4% (comprised of six-months EURIBOR plus a fixed margin) until Project completion, and then 5.2% (comprised of six-months EURIBOR plus a fixed margin) following Project completion, with 70% of the variable rate exposure to be hedged via an interest rate swap for the term of the facility.
  • Initial RRF loan: Fixed interest rate of 3.04% for the term of the facility.
  • Additional RRF loan: Fixed interest rate to be set at issuance on replacement of bridge facility.
• Term: 3 years availability, 7 years repayment.
• Cost Overrun Facility: Although not expected to be necessary, the project financing includes, in addition to the Term Facility, a Contingent Overrun Facility for an additional 10% of capital costs, funded by the Lenders and Hellas in the same proportion as the Term Facility.
• Hedging: Hellas will hedge limited volumes of gold and copper production to manage downside commodity price exposure and support minimum debt service coverage ratios. It is expected that hedging will be limited to not more than 50% of the first year of commercial production and this will be reviewed at least annually. In addition, Hellas will hedge a portion of its foreign exchange exposure (Euro/US dollar). Terms of the hedging program will be confirmed at initial drawdown.
• Repayment: Semi-annual instalments over seven years, commencing on June 30, 2026, with a weighted average life to maturity of approximately eight years.

Focused on Execution

Eldorado remains confident in the capital cost estimate of $845 million⁽¹⁾ to bring the Skouries project into commercial production, which is derived from the “Technical Report, Skouries Project, Greece” prepared for Eldorado with an effective date of January 22, 2022 (the “Feasibility Study” or “FS”), and believes it is well-positioned to execute. The Project is approximately half built, with most major processing equipment already purchased and installed or in storage.

^{(1) All financial figures are in U.S. dollars unless otherwise stated.}

In 2022, Project activity was focused on steel erection and enclosure of the processing facilities, which is now largely complete, as well as execution readiness and critical path activities. In 2023, Project activities will focus on finalizing detailed engineering, which is 42% complete and forecasted to be 70-75% complete for full construction mobilization in the second half of 2023, release of remaining procurement packages, and community engagement. Additionally, Eldorado has built a highly capable owners’ team that is based at Skouries, and the Engineering, Procurement and Construction Management contractor has been progressively mobilizing.

The Company has confidence in the level of expertise and availability of the construction workforce in the Halkidiki region and Greece. Since the Project was placed on care & maintenance in November 2017, the Company has continued to engage with local communities and key stakeholders and is committed to continuing this open dialogue for the life of the mine.

Project Capital Cost and Schedule

Eldorado remains confident in the project schedule and capital cost estimate, based on several factors:

• The filter press, a long-lead item for tailings dewatering, was ordered in the second quarter of 2022, with cost and delivery schedules in line with the FS assumptions; and the labour productivity for the steel erection and enclosure of the processing facility has been consistent with the FS assumptions.
• Labour accounts for approximately half of the capital cost estimate. A readily available Greek workforce and stable labour rates remain consistent with the FS capital cost assumptions.
• In 2022, construction activities at the nearby Olympias dry-stack tailings management facility, which is of a similar design in similar topography, support the FS assumptions made for the Skouries dry-stack tailings facility construction.
• Overall, commodity price assumptions, including copper, steel, and cement, remain in line with the FS.
• Approximately 80% of the capital cost estimate is in Euros, which has weakened since the FS assumptions.
• The Project will benefit from early-works activities completed throughout 2022, and is on track to deliver in line with the three-year construction and commissioning schedule.

Project Economics⁽¹⁾

The Skouries Project has robust economics, with a 19% after-tax Internal Rate of Return (“IRR”) and $1.3 billion after-tax Net Present Value (“NPV_5%”) (5%), based on long-term prices of $1,500 per ounce (“oz”) gold and $3.85 per pound copper. The Project is expected to produce 2.9 million ounces of gold over the 20-year life of mine, with average annual production of 140,000 oz of gold and 67 million pounds of copper (approximately 312,000 oz gold equivalent), with exploration potentially extending mine life. The Project is expected to generate, on average, $215 million of free cash flow⁽²⁾ per year for the first five years. Overall, the Skouries Project has the potential to increase Eldorado’s production profile and lower Eldorado’s cash cost per ounce.

^{(1) Project economics are based on the “Technical Report, Skouries Project, Greece” prepared for Eldorado with an effective date of January 22, 2022.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section “Non-IFRS Measures” below.}

Project Sensitivities ⁽¹⁾

^{(1) Economics are shown on an unlevered basis and do not include the impact of the Term Facility.
(2) Base case development assumptions are based on the “Technical Report, Skouries Project, Greece” prepared for Eldorado with an effective date of January 22, 2022.
(3) These financial measures or ratios are non-IFRS financial measures or ratios. See the section “Non-IFRS Measures” below.}

Social Benefit

The development of the Project, part of the Kassandra Mines Complex in the Halkidiki region will provide long-term value for both the national and local economies.

Where possible, Hellas prioritizes hiring local employees and working with local suppliers. During peak construction, the Project is expected to employ an additional 800 people and, once in production, Skouries will create over 25 years of steady and well-paid employment with 1,400 long-term jobs expected to be filled by members of the local community.

Over the life of the Kassandra Mines, it is estimated that 5,000 direct and indirect jobs will be created and more than $2 billion in revenue will be contributed to the Greek State from income taxes, social contributions and royalties over the life of mine. Eldorado expects to provide employees with enhanced skills through the development of an innovative Technical Training Center. In addition, $80 million will be committed to Corporate Social Responsibility programs, including community, cultural, social, and environmental investments.

About Skouries

Skouries is located within the Halkidiki Peninsula of Northern Greece. It is a gold-copper porphyry deposit to be mined using a combination of conventional open pit and underground mining techniques. Based on the Feasibility Study, Skouries is expected to produce, on average, 140,000 ounces of gold and 67 million pounds of copper annually over its initial 20-year mine life. For more information about the Project, and details of the Feasibility Study, please refer to the news release dated December 15, 2021 or the Technical Report dated January 22, 2022, both of which are available on the Eldorado Gold website or under the Company’s name on SEDAR at www.sedar.com.

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece. The Company has a highly skilled and dedicated workforce, 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 and the New York Stock Exchange.

Qualified Person

Except as otherwise noted, Simon Hille, FAusIMM, Senior Vice President, Technical Services, is the Qualified Person under NI 43-101 responsible for preparing and supervising the preparation of the scientific or technical information contained in this press release and verifying the technical data disclosed in this document relating to our operating mines and development projects.