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Message: Acquires Gold Fields' Stake in Sino Gold

Acquires Gold Fields' Stake in Sino Gold

posted on Jun 03, 2009 04:17AM
June 3, 2009
Eldorado Acquires Gold Fields' Stake in Sino Gold
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2009) - Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation ("Eldorado", the "Company", or "we") (TSX:ELD)(NYSE Amex:EGO) is pleased to announce that Eldorado has entered into an agreement to acquire 57.9 million shares of Sino Gold Mining Limited ("Sino Gold") (representing approximately 19.9% of the issued and outstanding shares of Sino Gold) from Gold Fields Limited ("Gold Fields") in a private transaction in exchange for Eldorado shares.

The terms of the agreement between Eldorado and Gold Fields are:

- Eldorado will acquire 57,968,029 Sino Gold shares from Gold Fields. The transaction to be settled through the issuance to Gold Fields of 27,824,654 shares of Eldorado by way of a private placement. The number of Eldorado shares was determined based on an exchange ratio of 0.48 Eldorado shares for each Sino Gold share, which was calculated considering the 30-day volume weighted average price of Sino Gold and Eldorado shares.

- For a period of 18 months Gold Fields will hold a top-up right which will apply should Eldorado purchase an additional 5% or more of the outstanding shares of Sino Gold and the sellers receive consideration equivalent to a share consideration ratio in excess of the share exchange ratio received by Gold Fields.

Sino Gold (ASX:SGX) is an Australian public company focused on the exploration and production of gold in China and is listed on the Australian Stock Exchange and Hong Kong Stock Exchange. It has two operating mines, Jinfeng and White Mountain.

"Eldorado and Sino Gold both have a history of success in China and have become the two largest foreign gold producers in China. We view this stake in Sino Gold as an excellent opportunity to enhance our investment in China. Eldorado will continue to grow in a disciplined and focused manner and we are pleased to have Gold Fields back as a shareholder," Paul N. Wright commented.

The agreement is subject to regulatory and stock exchange approvals and is expected to close by the end of August 2009. Eldorado's financial advisor is Macquarie Capital Markets Canada Ltd. and its Canadian legal advisor is Fasken Martineau DuMoulin LLP and Australian legal advisor is Freehills.

Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil China, Greece, and Turkey and surrounding regions. We are one of the lowest cost pure gold producers. 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

Paul N. Wright, President and Chief Executive Officer
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