FORM 6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of July, 2014
 
Commission File Number   001-31522

Eldorado Gold Corporation
 (Translation of registrant's name into English)	

1188-550 Burrard Street
Bentall 5
Vancouver, B.C.
Canada  V6C 2B5
 (Address of principal executive offices)	

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F....[    ]..... Form 40-F...[. X .]...
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes  [    ]  No [ X ]
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date:  August 1, 2014	ELDORADO GOLD CORPORATION

/s/ Dawn Moss

Dawn Moss, Corporate Secretary	

 

 
 
Exhibits
 
99.1    Consolidated Financial Statements
99.2    Management's Discussion and Analysis
99.3    Certification of Interim Filings CEO
99.4    Certification of Interim Filings CFO

 

 

 
 
June 30, 2014 Unaudited Condensed Consolidated Financial Statements

 

Suite 1188, 550 Burrard Street
Vancouver, British Columbia
V6C 2B5

Phone: (604) 687-4018
Fax: (604) 687-4026

1

 
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
 
 	 	Note	 	 	June 30, 2014	 	 	December 31, 2013	 	
 	 	 	 	 	$	 	 	$	 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	 	 	 	559,498	 	 	 	589,180	 	
Term deposits	 	 	 	 	 	25,026	 	 	 	34,702	 	
Restricted cash	 	 	 	 	 	262	 	 	 	262	 	
Marketable securities	 	 	 	 	 	4,637	 	 	 	4,387	 	
Accounts receivable and other	 	 	 	 	 	82,822	 	 	 	89,231	 	
Inventories	 	 	 	 	 	233,531	 	 	 	244,042	 	
 	 	 	 	 	 	905,776	 	 	 	961,804	 	
Investment in associate	 	 	 	 	 	-	 	 	 	10,949	 	
Deferred income tax assets	 	 	 	 	 	1,601	 	 	 	997	 	
Restricted assets and other	 	 	 	 	 	55,581	 	 	 	37,330	 	
Defined benefit pension plan	 	 	 	 	 	15,398	 	 	 	13,484	 	
Property, plant and equipment	 	 	 	 	 	5,806,914	 	 	 	5,684,382	 	
Goodwill	 	 	 	 	 	526,296	 	 	 	526,296	 	
 	 	 	 	 	 	7,311,566	 	 	 	7,235,242	 	
LIABILITIES & EQUITY	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable and accrued liabilities	 	 	 	 	 	171,775	 	 	 	211,406	 	
Current debt	 	5	 	 	 	16,253	 	 	 	16,402	 	
 	 	 	 	 	 	188,028	 	 	 	227,808	 	
Debt	 	5	 	 	 	586,104	 	 	 	585,006	 	
Other non-current liability	 	4(b)	 	 	 	47,711	 	 	 	-	 	
Asset retirement obligations	 	 	 	 	 	86,423	 	 	 	85,259	 	
Deferred income tax liabilities	 	 	 	 	 	852,575	 	 	 	842,305	 	
 	 	 	 	 	 	1,760,841	 	 	 	1,740,378	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	
Share capital	 	6	 	 	 	5,314,813	 	 	 	5,314,589	 	
Treasury stock	 	 	 	 	 	(14,845	)	 	 	(10,953	)	
Contributed surplus	 	 	 	 	 	37,197	 	 	 	78,557	 	
Accumulated other comprehensive loss	 	 	 	 	 	(16,450	)	 	 	(17,056	)	
Deficit	 	 	 	 	 	(80,965	)	 	 	(143,401	)	
Total equity attributable to shareholders of the Company	 	 	 	 	 	5,239,750	 	 	 	5,221,736	 	
Attributable to non-controlling interests	 	 	 	 	 	310,975	 	 	 	273,128	 	
 	 	 	 	 	 	5,550,725	 	 	 	5,494,864	 	
 	 	 	 	 	 	7,311,566	 	 	 	7,235,242	 	
 
Approved on behalf of the Board of Directors

(Signed) Robert R. Gilmore	Director	(Signed) Paul N. Wright	Director	
 
The accompanying notes are an integral part of these consolidated financial statements.

2

 
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars except per share amounts)
 
 	 	Three months ended	 	 	Six months ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	
Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Metal sales	 	 	265,497	 	 	 	266,929	 	 	 	545,367	 	 	 	604,997	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production costs	 	 	122,524	 	 	 	116,133	 	 	 	257,309	 	 	 	246,501	 	
Depreciation and amortization	 	 	44,095	 	 	 	35,234	 	 	 	89,667	 	 	 	72,348	 	
 	 	 	166,619	 	 	 	151,367	 	 	 	346,976	 	 	 	318,849	 	
Gross profit	 	 	98,878	 	 	 	115,562	 	 	 	198,391	 	 	 	286,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration expenses	 	 	3,890	 	 	 	10,240	 	 	 	7,785	 	 	 	17,864	 	
General and administrative expenses	 	 	19,099	 	 	 	18,239	 	 	 	34,943	 	 	 	34,725	 	
Defined benefit pension plan expense	 	 	413	 	 	 	619	 	 	 	816	 	 	 	1,248	 	
Share based payments	 	 	5,281	 	 	 	3,291	 	 	 	12,275	 	 	 	12,168	 	
Foreign exchange loss (gain)	 	 	(1,553	)	 	 	5,920	 	 	 	(2,914	)	 	 	5,818	 	
Operating profit	 	 	71,748	 	 	 	77,253	 	 	 	145,486	 	 	 	214,325	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss (gain) on disposal of assets	 	 	1,819	 	 	 	(51	)	 	 	1,825	 	 	 	(15	)	
Loss (gain) on marketable securities and other investments	 	 	550	 	 	 	-	 	 	 	1,322	 	 	 	(21	)	
Loss on investments in associates	 	 	-	 	 	 	214	 	 	 	102	 	 	 	1,123	 	
Other income	 	 	(3,631	)	 	 	(3,138	)	 	 	(2,847	)	 	 	(5,114	)	
Asset retirement obligation accretion	 	 	581	 	 	 	386	 	 	 	1,163	 	 	 	725	 	
Interest and financing costs	 	 	7,916	 	 	 	11,061	 	 	 	16,321	 	 	 	21,562	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit before income tax	 	 	64,513	 	 	 	68,781	 	 	 	127,600	 	 	 	196,065	 	
Income tax expense	 	 	24,999	 	 	 	24,550	 	 	 	57,443	 	 	 	195,802	 	
Profit for the period	 	 	39,514	 	 	 	44,231	 	 	 	70,157	 	 	 	263	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shareholders of the Company	 	 	37,632	 	 	 	43,274	 	 	 	68,900	 	 	 	(2,189	)	
Non-controlling interests	 	 	1,882	 	 	 	957	 	 	 	1,257	 	 	 	2,452	 	
Profit for the period	 	 	39,514	 	 	 	44,231	 	 	 	70,157	 	 	 	263	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	716,249	 	 	 	715,038	 	 	 	716,239	 	 	 	714,739	 	
Diluted	 	 	716,249	 	 	 	715,426	 	 	 	716,239	 	 	 	715,256	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per share attributable to shareholders of the Company:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	 	 	0.05	 	 	 	0.06	 	 	 	0.10	 	 	 	0.00	 	
Diluted earnings per share	 	 	0.05	 	 	 	0.06	 	 	 	0.10	 	 	 	0.00	 	
 
The accompanying notes are an integral part of these consolidated financial statements.

3

 
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
 
 	 	Three months ended	 	 	Six months ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit for the period	 	 	39,514	 	 	 	44,231	 	 	 	70,157	 	 	 	263	 	
Other comprehensive gain (loss):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in fair value of available-for-sale financial assets	 	 	336	 	 	 	(918	)	 	 	(153	)	 	 	(1,400	)	
Realized gains on disposal of available-for-sale financial assets	 	 	-	 	 	 	-	 	 	 	759	 	 	 	(17	)	
Total other comprehensive gain (loss) for the period	 	 	336	 	 	 	(918	)	 	 	606	 	 	 	(1,417	)	
Total comprehensive income (deficit) for the period	 	 	39,850	 	 	 	43,313	 	 	 	70,763	 	 	 	(1,154	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attributable to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shareholders of the Company	 	 	37,968	 	 	 	42,356	 	 	 	69,506	 	 	 	(3,606	)	
Non-controlling interests	 	 	1,882	 	 	 	957	 	 	 	1,257	 	 	 	2,452	 	
 	 	 	39,850	 	 	 	43,313	 	 	 	70,763	 	 	 	(1,154	)	
 
The accompanying notes are an integral part of these consolidated financial statements.

4

 
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
 
 	 	 	 	 	Three months ended	 	 	Six months ended	 	
 	 	 	 	 	June 30,	 	 	June 30,	 	
 	 	Note	 	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	 	 	 	 	$	 	 	$	 	 	$	 	 	$	 	
Cash flows generated from (used in):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit for the period	 	 	 	 	 	39,514	 	 	 	44,231	 	 	 	70,157	 	 	 	263	 	
Items not affecting cash:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset retirement obligation accretion	 	 	 	 	 	581	 	 	 	386	 	 	 	1,163	 	 	 	725	 	
Depreciation and amortization	 	 	 	 	 	44,095	 	 	 	35,234	 	 	 	89,667	 	 	 	72,348	 	
Unrealized foreign exchange loss (gain)	 	 	 	 	 	(508	)	 	 	403	 	 	 	(124	)	 	 	524	 	
Deferred income tax expense	 	 	 	 	 	471	 	 	 	560	 	 	 	9,667	 	 	 	136,448	 	
Loss (gain) on disposal of assets	 	 	 	 	 	1,819	 	 	 	(51	)	 	 	1,825	 	 	 	(15	)	
Loss on investments in associates	 	 	 	 	 	-	 	 	 	214	 	 	 	102	 	 	 	1,123	 	
Loss (gain) on marketable securities and other investments	 	 	 	 	 	550	 	 	 	-	 	 	 	1,322	 	 	 	(21	)	
Share based payments	 	 	 	 	 	5,281	 	 	 	3,291	 	 	 	12,275	 	 	 	12,168	 	
Defined benefit pension plan expense	 	 	 	 	 	413	 	 	 	619	 	 	 	816	 	 	 	1,248	 	
 	 	 	 	 	 	92,216	 	 	 	84,887	 	 	 	186,870	 	 	 	224,811	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Changes in non-cash working capital	 	9	 	 	 	(29,383	)	 	 	(63,433	)	 	 	(54,600	)	 	 	(36,265	)	
 	 	 	 	 	 	62,833	 	 	 	21,454	 	 	 	132,270	 	 	 	188,546	 	
Investing activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used on acquisition of subsidiary	 	4(a)	 	 	 	-	 	 	 	-	 	 	 	(30,318	)	 	 	-	 	
Purchase of property, plant and equipment	 	 	 	 	 	(107,917	)	 	 	(116,549	)	 	 	(188,347	)	 	 	(217,763	)	
Proceeds from the sale of property, plant and equipment	 	 	 	 	 	92	 	 	 	136	 	 	 	176	 	 	 	192	 	
Proceeds on production from tailings retreatment	 	 	 	 	 	11,765	 	 	 	10,900	 	 	 	20,557	 	 	 	15,228	 	
Purchase of marketable securities	 	 	 	 	 	(852	)	 	 	-	 	 	 	(852	)	 	 	-	 	
Proceeds from the sale of marketable securities	 	 	 	 	 	243	 	 	 	-	 	 	 	865	 	 	 	332	 	
Investments in associates	 	 	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(6,357	)	
Redemption of (investment in) term deposits	 	 	 	 	 	(20,000	)	 	 	(62,514	)	 	 	9,676	 	 	 	(221,441	)	
Decrease in restricted cash	 	 	 	 	 	(24	)	 	 	15	 	 	 	2	 	 	 	5	 	
 	 	 	 	 	 	(116,693	)	 	 	(168,012	)	 	 	(188,241	)	 	 	(429,804	)	
Financing activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Issuance of common shares for cash	 	 	 	 	 	-	 	 	 	179	 	 	 	-	 	 	 	1,601	 	
Investment by non-controlling interest	 	4(b)	 	 	 	-	 	 	 	-	 	 	 	40,000	 	 	 	-	 	
Dividend paid to shareholders	 	 	 	 	 	-	 	 	 	-	 	 	 	(6,464	)	 	 	(50,241	)	
Dividends paid to non-controlling interest	 	 	 	 	 	(815	)	 	 	 	 	 	 	(815	)	 	 	 	 	
Purchase of treasury stock	 	 	 	 	 	(9	)	 	 	(168	)	 	 	(6,413	)	 	 	(6,462	)	
Long-term and bank debt proceeds	 	 	 	 	 	-	 	 	 	-	 	 	 	16,363	 	 	 	12,412	 	
Long-term and bank debt repayments	 	 	 	 	 	-	 	 	 	-	 	 	 	(16,382	)	 	 	(10,354	)	
Loan financing costs	 	 	 	 	 	-	 	 	 	90	 	 	 	-	 	 	 	(383	)	
 	 	 	 	 	 	(824	)	 	 	101	 	 	 	26,289	 	 	 	(53,427	)	
Net decrease in cash and cash equivalents	 	 	 	 	 	(54,684	)	 	 	(146,457	)	 	 	(29,682	)	 	 	(294,685	)	
Cash and cash equivalents - beginning of period	 	 	 	 	 	614,182	 	 	 	668,615	 	 	 	589,180	 	 	 	816,843	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents - end of period	 	 	 	 	 	559,498	 	 	 	522,158	 	 	 	559,498	 	 	 	522,158	 	

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

5

Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
 
 	 	 	 	 	Three months ended	 	 	Six months ended	 	
 	 	 	 	 	June 30,	 	 	June 30,	 	
 	 	Note	 	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	 	 	 	 	$	 	 	$	 	 	$	 	 	$	 	
Share capital	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	5,314,813	 	 	 	5,303,095	 	 	 	5,314,589	 	 	 	5,300,957	 	
Shares issued upon exercise of share options, for cash	 	 	 	 	 	-	 	 	 	179	 	 	 	-	 	 	 	1,601	 	
Transfer of contributed surplus on exercise of options	 	 	 	 	 	-	 	 	 	273	 	 	 	-	 	 	 	989	 	
Transfer of contributed surplus on exercise of deferred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   phantom units	 	 	 	 	 	-	 	 	 	3,400	 	 	 	224	 	 	 	3,400	 	
Balance end of period	 	 	 	 	 	5,314,813	 	 	 	5,306,947	 	 	 	5,314,813	 	 	 	5,306,947	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Treasury stock	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	(17,357	)	 	 	(12,307	)	 	 	(10,953	)	 	 	(7,445	)	
Purchase of treasury stock	 	 	 	 	 	(9	)	 	 	(168	)	 	 	(6,413	)	 	 	(6,462	)	
Shares redeemed upon exercise of restricted share units	 	 	 	2,521	 	 	 	700	 	 	 	2,521	 	 	 	2,132	 	
Balance end of period	 	 	 	 	 	(14,845	)	 	 	(11,775	)	 	 	(14,845	)	 	 	(11,775	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	35,424	 	 	 	71,827	 	 	 	78,557	 	 	 	65,382	 	
Share based payments	 	 	 	 	 	5,035	 	 	 	3,935	 	 	 	11,750	 	 	 	12,528	 	
Shares redeemed upon exercise of restricted share units	 	 	 	(2,521	)	 	 	(700	)	 	 	(2,521	)	 	 	(2,132	)	
Recognition of other non-current liability and related costs	 	4(b)	 	 	 	(741	)	 	 	-	 	 	 	(50,365	)	 	 	-	 	
Transfer to share capital on exercise of options and deferred	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   phantom units	 	 	 	 	 	-	 	 	 	(3,673	)	 	 	(224	)	 	 	(4,389	)	
Balance end of period	 	 	 	 	 	37,197	 	 	 	71,389	 	 	 	37,197	 	 	 	71,389	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accumulated other comprehensive loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	(16,786	)	 	 	(25,034	)	 	 	(17,056	)	 	 	(24,535	)	
Other comprehensive loss for the period	 	 	 	 	 	336	 	 	 	(918	)	 	 	606	 	 	 	(1,417	)	
Balance end of period	 	 	 	 	 	(16,450	)	 	 	(25,952	)	 	 	(16,450	)	 	 	(25,952	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Retained earnings (deficit)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	(118,597	)	 	 	499,172	 	 	 	(143,401	)	 	 	594,876	 	
Dividends paid	 	 	 	 	 	-	 	 	 	-	 	 	 	(6,464	)	 	 	(50,241	)	
Profit (loss) attributable to shareholders of the Company	 	 	 	37,632	 	 	 	43,274	 	 	 	68,900	 	 	 	(2,189	)	
Balance end of period	 	 	 	 	 	(80,965	)	 	 	542,446	 	 	 	(80,965	)	 	 	542,446	 	
Total equity attributable to shareholders of the Company	 	 	 	5,239,750	 	 	 	5,883,055	 	 	 	5,239,750	 	 	 	5,883,055	 	
Non-controlling interests	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance beginning of period	 	 	 	 	 	312,503	 	 	 	285,595	 	 	 	273,128	 	 	 	284,100	 	
Profit attributable to non-controlling interests	 	 	 	 	 	1,882	 	 	 	957	 	 	 	1,257	 	 	 	2,452	 	
Dividends declared to non-controlling interests	 	 	 	 	 	(3,410	)	 	 	-	 	 	 	(3,410	)	 	 	-	 	
Increase during the period	 	4(b)	 	 	 	-	 	 	 	-	 	 	 	40,000	 	 	 	-	 	
Balance end of period	 	 	 	 	 	310,975	 	 	 	286,552	 	 	 	310,975	 	 	 	286,552	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	 	 	 	5,550,725	 	 	 	6,169,607	 	 	 	5,550,725	 	 	 	6,169,607	 	

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

6

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
1. 	General Information	
 
Eldorado Gold Corporation (“Eldorado” or the “Company”) is a gold exploration, development, mining and production 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	
 
a) 	Statement of compliance	
 
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’. They do not include all of the information and footnotes required by the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board for full annual financial statements and should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2013.
 
The same accounting policies are used in the preparation of these unaudited condensed consolidated interim financial statements as for the most recent audited annual financial statements and reflect all the adjustments necessary for fair presentation in accordance with IFRS for the interim periods presented.
 
b) 	Judgement and estimates	
 
The preparation of these unaudited condensed consolidated interim 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 and liabilities, income and expense. Actual results may differ from these estimates.
 
The significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2013.
 
3. 	Adoption of new accounting standards	
 
The following interpretation of a standard has been adopted by the Company commencing January 1, 2014:
 
· 	IFRIC 21 ‘ Levies ’ – This interpretation of IAS 37, ‘Provisions , Contingent Liabilities and Contingent Assets’, applies to the accounting for levies imposed by governments. IAS 37 sets out criteria for the recognition of a liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (“obligating event”). IFRIC 21 clarifies that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. There was no impact on these unaudited condensed consolidated interim financial statements as a result of the adoption of this standard.	
 
The following standards have been published and are mandatory for Eldorado’s annual accounting periods no earlier than January 1, 2017:
 
· 	IFRS 9 ‘Financial Instruments: Classification and Measurement’ – This is the first part of a new standard on classification and measurement of financial assets that will replace IAS 39, ‘ Financial Instruments: Recognition and Measurement’ . IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is recorded at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. Otherwise it is measured at fair value with changes in fair value through profit or loss. In addition, this new standard has been updated to include guidance on financial liabilities and derecognition of financial instruments. The Company is currently evaluating the extent of the impact of the adoption of this standard.	

7

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
3.	Adoption of new accounting standards (continued)	
 
· 	IFRS 15 ‘Revenue from Contracts with Customers’ – This standard contains a single model that applies to contracts with customers and two approaches to recognising 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 judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. This standard is effective for fiscal years ending on or after December 31, 2017. The Company does not expect this standard to have a material impact on its financial statements.	
 
4. 	Acquisitions and other transactions	
 
a) 	Acquisition of Glory	
 
Eldorado completed the acquisition of all of the issued and outstanding common shares of Glory that it did not already own on March 14, 2014. 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 net reduction of cash 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 2014, the Company, through one of its subsidiaries, entered into a Subscription and a Shareholders agreement (“Agreements”) with a third party (“Third Party”).
 
As a result of these Agreements, Third Party 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, Third Party has the right to require Eldorado to purchase or procure the purchase by another party of Third Party’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 Third Party 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 and $2,654 of transaction costs were 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 June 30, 2014 is $47,711.

8

Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)

5. 	Debt	
 
 	 	June 30,
2014
$	 	 	December 31,
 2013
$	 	
Current:	 	 	 	 	 	 	
Jinfeng China Merchant Bank (“CMB”) working capital loan (a)	 	 	16,253	 	 	 	16,402	 	
 	 	 	 	 	 	 	 	 	
Non-current:	 	 	 	 	 	 	 	 	
Senior notes (b)	 	 	586,104	 	 	 	585,006	 	
Total debt	 	 	602,357	 	 	 	601,408	 	
 
(a)	Jinfeng CMB working capital loan	
 
On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($16,253) working capital loan with CMB. Each drawdown bears fixed interest at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. 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. This facility is unsecured.
 
As at June 30, 2014, Jinfeng has drawn down the full amount under this facility and has used the proceeds to fund working capital obligations. All tranches of the loan have a term of six months and a fixed interest rate of 5.6%.
 
Subsequent to June 30, 2014, Jinfeng repaid RMB 13.0 million ($2,113) on this loan.
 
(b)	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. Net deferred financing costs of $13,896 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.
 
The fair market value of the notes as at June 30, 2014 was $609.0 million.
 
(c)	Entrusted loan	
 
In November 2010, Eastern Dragon, HSBC Bank (China) and Qinghai Dachaidan Mining Ltd (“QDML ”) , our 90% owned subsidiary, entered into a RMB 12.0 million ($1,950) entrusted loan agreement, which has been increased to RMB 720.0 million ($117,020) 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 drawdown bears interest fixed at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. Each draw down has a term of three months and can be rolled forward at the discretion of QDML. The interest rate on this loan as at June 30, 2014 was 4.59%.
 
As at June 30, 2014, RMB 643.2 million ($104,530) had been drawn under the entrusted loan.
 
The entrusted loan has been recorded on a net settlement basis.

9

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
6. 	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 June 30, 2014 there were no non-voting common shares outstanding (December 31, 2013 – none).
 
Voting common shares	 	Number of
Shares	 	 	Total
$	 	
 	 	 	 	 	 	 	
At January 1, 2014	 	 	716,216,690	 	 	 	5,314,589	 	
Common shares issued for deferred phantom units	 	 	31,920	 	 	 	224	 	
At June 30, 2014	 	 	716,248,610	 	 	 	5,314,813	 	
 
7. 	Share-based payments	
 
(a)	Share option plans	
 
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
 
 	 	2014	 	
 	 	Weighted average exercise price Cdn$	 	 	Number of
options	 	
At January 1,	 	 	13.20	 	 	 	16,753,421	 	
Granted	 	 	7.82	 	 	 	6,210,824	 	
Exercised	 	 	-	 	 	 	-	 	
Forfeited	 	 	12.25	 	 	 	(845,322	)	
At June 30,	 	 	11.72	 	 	 	22,118,923	 	

At June 30, 2014, 16,040,895 share options (June 30, 2013 – 12,914,273) with a weighted average exercise price of Cdn$12.89 (June 30, 2013 – Cdn$13.17) had vested and were exercisable.
 
Share based compensation expense related to share options for the quarter ended June 30, 2014 was $2,096 (YTD – $7,077).
 
(b)	Restricted share unit plan	
 
A total of 877,753 restricted share units (“RSUs”) at a grant-date fair value of Cdn$7.84 per unit were granted during the period ended June 30, 2014 under the Company’s RSU plan and 292,137 RSUs were exercisable as at June 30, 2014.
 
The fair value of each RSU issued is determined as the closing share price at grant date. The current maximum number of common shares authorized for issue under the RSU plan is 5,000,000.

10

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)

7.	Share-based payments (continued)	
 
A summary of the status of the restricted share unit plan and changes during the quarter ended June 30, 2014 is as follows:
 
 	 	Total RSUs	 	
Balance at December 31, 2013	 	 	774,845	 	
RSUs Granted	 	 	877,753	 	
Redeemed	 	 	(364,140	)	
Forfeited	 	 	-	 	
Balance at June 30, 2014	 	 	1,288,458	 	

As at June 30, 2014, 1,288,458 common shares purchased by the Company remain held in trust in connection with this plan. At the end of the period, 460,885 restricted share units are fully vested and exercisable. These shares purchased and held in trust have been included in treasury stock in the balance sheet.
 
Restricted share units expense for the period ended June 30, 2014 was $2,939 (YTD – $4,673).
 
(c)	Deferred share units plan	
 
At June 30, 2014, 246,655 deferred share units (“DSUs”) were outstanding with a value of $1,886, which is included in accounts payable and accrued liabilities.
 
Compensation expense related to the DSUs was $246 for the period ended June 30, 2014 (YTD – $525).
 
8. 	Fair value of financial instruments	
 
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.
 
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 – Inpts 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 June 30, 2014 are marketable securities. No liabilities are measured at fair value on a recurring basis as at June 30, 2014.
 
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.
 
With the exception of the fair market value of our senior notes (note 5b), all carrying amounts of financial instruments approximate their fair value.

11

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
9. 	Supplementary cash flow information	
 
 	 	Three months ended
June 30,	 	 	Six months ended
June 30,	 	
 	 	2014
$	 	 	2013
$	 	 	2014
$	 	 	2013
$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Changes in non-cash working capital	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts receivable and other	 	 	(4,449	)	 	 	(20,586	)	 	 	(11,055	)	 	 	(5,691	)	
Inventories	 	 	(4,975	)	 	 	(12,693	)	 	 	4,365	 	 	 	(1,906	)	
Accounts payable and accrued liabilities	 	 	(19,959	)	 	 	(30,154	)	 	 	(47,910	)	 	 	(28,668	)	
Total	 	 	(29,383	)	 	 	(63,433	)	 	 	(54,600	)	 	 	(36,265	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Supplementary cash flow information	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income taxes paid	 	 	28,981	 	 	 	29,951	 	 	 	40,333	 	 	 	57,269	 	
Interest paid	 	 	17,156	 	 	 	16,923	 	 	 	17,360	 	 	 	17,356	 	
 
10. 	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 gross profit (loss), expenditures on exploration, property, plant and equipment and non-current assets, as well as total debt. As at June 30, 2014, Eldorado had six reportable segments based on the geographical location of mining and exploration and development activities.
 
10.1 Geographical segments
 
Geographically, the operating segments are identified by country and by operating mine or mine under construction as follows:
 
·  	The Turkey reporting segm ent includes the Kişladağ and the Efemçukuru mines and exploration activities in Turkey.	
 
·  	The China reporting segment includes the Tanjianshan (“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 exploration 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.

12

Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
10.	Segment information (continued)	
 
For the three months ended June 30, 2014
 
 	 	Turkey	 	 	China	 	 	Brazil	 	 	Greece	 	 	Romania	 	 	Other	 	 	Total	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	
Information about profit and loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Metal sales from external customers	 	 	127,946	 	 	 	120,963	 	 	 	3,851	 	 	 	12,737	 	 	 	-	 	 	 	-	 	 	 	265,497	 	
Production costs	 	 	49,704	 	 	 	56,356	 	 	 	5,943	 	 	 	10,521	 	 	 	-	 	 	 	-	 	 	 	122,524	 	
Depreciation	 	 	13,179	 	 	 	27,783	 	 	 	928	 	 	 	2,030	 	 	 	-	 	 	 	175	 	 	 	44,095	 	
Gross profit (loss)	 	 	65,063	 	 	 	36,824	 	 	 	(3,020	)	 	 	186	 	 	 	-	 	 	 	(175	)	 	 	98,878	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other material items of income and expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration costs	 	 	566	 	 	 	654	 	 	 	1,526	 	 	 	255	 	 	 	68	 	 	 	821	 	 	 	3,890	 	
Income tax expense (recovery)	 	 	13,655	 	 	 	9,517	 	 	 	(406	)	 	 	2,855	 	 	 	-	 	 	 	(622	)	 	 	24,999	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
equipment during the period	 	 	23,160	 	 	 	12,995	 	 	 	517	 	 	 	69,944	 	 	 	2,317	 	 	 	52	 	 	 	108,985	 	
 
For the three months ended June 30, 2013
 
 	 	Turkey	 	 	China	 	 	Brazil	 	 	Greece	 	 	Romania	 	 	Other	 	 	Total	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	
Information about profit and loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Metal sales from external customers	 	 	141,454	 	 	 	103,653	 	 	 	8,680	 	 	 	13,142	 	 	 	-	 	 	 	-	 	 	 	266,929	 	
Production costs	 	 	41,467	 	 	 	54,696	 	 	 	6,060	 	 	 	13,910	 	 	 	-	 	 	 	-	 	 	 	116,133	 	
Depreciation	 	 	8,967	 	 	 	21,436	 	 	 	871	 	 	 	3,447	 	 	 	-	 	 	 	513	 	 	 	35,234	 	
Gross profit (loss)	 	 	91,020	 	 	 	27,521	 	 	 	1,749	 	 	 	(4,215	)	 	 	-	 	 	 	(513	)	 	 	115,562	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other material items of income and expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration costs	 	 	2,791	 	 	 	1,602	 	 	 	3,208	 	 	 	26	 	 	 	97	 	 	 	2,516	 	 	 	10,240	 	
Income tax expense	 	 	20,345	 	 	 	5,608	 	 	 	859	 	 	 	- 2,370	 	 	 	108	 	 	 	-	 	 	 	24,550	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
equipment during the period	 	 	50,815	 	 	 	26,580	 	 	 	1,935	 	 	 	36,465	 	 	 	7,338	 	 	 	36	 	 	 	123,169	 	

13

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
10.	Segment information (continued)	
 
For the six months ended June 30, 2014
 
 	 	Turkey	 	 	China	 	 	Brazil	 	 	Greece	 	 	Romania	 	 	Other	 	 	Total	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	
Information about profit and loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Metal sales from external customers	 	 	251,972	 	 	 	245,792	 	 	 	22,496	 	 	 	25,107	 	 	 	-	 	 	 	-	 	 	 	545,367	 	
Production costs	 	 	97,521	 	 	 	119,841	 	 	 	19,028	 	 	 	20,919	 	 	 	-	 	 	 	-	 	 	 	257,309	 	
Depreciation	 	 	26,017	 	 	 	56,004	 	 	 	3,071	 	 	 	4,160	 	 	 	-	 	 	 	415	 	 	 	89,667	 	
Gross profit (loss)	 	 	128,434	 	 	 	69,947	 	 	 	397	 	 	 	28	 	 	 	-	 	 	 	(415	)	 	 	198,391	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other material items of income and expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration costs	 	 	1,114	 	 	 	1,119	 	 	 	2,170	 	 	 	646	 	 	 	1,121	 	 	 	1,615	 	 	 	7,785	 	
Income tax expense (recovery)	 	 	33,695	 	 	 	19,553	 	 	 	(805	)	 	 	5,000	 	 	 	-	 	 	 	-	 	 	 	57,443	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
equipment during the period	 	 	41,039	 	 	 	20,478	 	 	 	1,879	 	 	 	120,036	 	 	 	5,673	 	 	 	270	 	 	 	189,375	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Information about assets and liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant and equipment (*)	 	 	869,346	 	 	 	1,433,258	 	 	 	200,308	 	 	 	2,679,303	 	 	 	622,578	 	 	 	2,121	 	 	 	5,806,914	 	
Goodwill	 	 	-	 	 	 	52,514	 	 	 	-	 	 	 	473,782	 	 	 	-	 	 	 	-	 	 	 	526,296	 	
 	 	 	869,346	 	 	 	1,485,772	 	 	 	200,308	 	 	 	3,153,085	 	 	 	622,578	 	 	 	2,121	 	 	 	6,333,210	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	 	-	 	 	 	16,253	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	586,104	 	 	 	602,357	 	
 
For the six months ended June 30, 2013
 
 	 	Turkey	 	 	China	 	 	Brazil	 	 	Greece	 	 	Romania	 	 	Other	 	 	Total	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	
Information about profit and loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Metal sales from external customers	 	 	339,596	 	 	 	215,468	 	 	 	23,840	 	 	 	26,093	 	 	 	-	 	 	 	-	 	 	 	604,997	 	
Production costs	 	 	100,367	 	 	 	106,083	 	 	 	14,561	 	 	 	25,490	 	 	 	-	 	 	 	-	 	 	 	246,501	 	
Depreciation	 	 	22,080	 	 	 	41,585	 	 	 	2,107	 	 	 	5,577	 	 	 	-	 	 	 	999	 	 	 	72,348	 	
Gross profit (loss)	 	 	217,149	 	 	 	67,800	 	 	 	7,172	 	 	 	(4,974	)	 	 	-	 	 	 	(999	)	 	 	286,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other material items of income and expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploration costs	 	 	4,965	 	 	 	2,974	 	 	 	4,481	 	 	 	914	 	 	 	483	 	 	 	4,047	 	 	 	17,864	 	
Income tax expense	 	 	52,797	 	 	 	15,436	 	 	 	1,704	 	 	 	125,701	 	 	 	108	 	 	 	56	 	 	 	195,802	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additions to property, plant and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
equipment during the period	 	 	95,491	 	 	 	49,634	 	 	 	7,524	 	 	 	57,415	 	 	 	11,843	 	 	 	877	 	 	 	222,784	 	
 
For the year ended December 31, 2013
 
 	 	Turkey	 	 	China	 	 	Brazil	 	 	Greece	 	 	Romania	 	 	Other	 	 	Total	 	
 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Information about assets and liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant and equipment (*)	 	 	854,893	 	 	 	1,461,592	 	 	 	201,791	 	 	 	2,546,935	 	 	 	616,906	 	 	 	2,265	 	 	 	5,684,382	 	
Goodwill	 	 	-	 	 	 	52,514	 	 	 	-	 	 	 	473,782	 	 	 	-	 	 	 	-	 	 	 	526,296	 	
 	 	 	854,893	 	 	 	1,514,106	 	 	 	201,791	 	 	 	3,020,717	 	 	 	616,906	 	 	 	2,265	 	 	 	6,210,678	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt	 	 	-	 	 	 	16,402	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	585,006	 	 	 	601,408	 	
 
* Net of revenues from sale of production from tailings retreatment

14

 
Eldorado Gold Corporation
Notes to the unaudited condensed consolidated financial statements
(Expressed in thousands of U.S. dollars, unless otherwise stated)
 
10.	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.
 
10.2	Economic dependence	
 
At June 30, 2014, each of our Chinese mines had one major customer, to whom each sells its entire production, as follows:
 
TJS Mine	Henan Zhongyuan Gold Smelter Factory Co. Ltd.of Zhongjin Gold Holding Co. Ltd.	
Jinfeng Mine	China National Gold Group	
White Mountain Mine	Refinery of Shandong Humon Smelting Co. Ltd.	
 
10.3	Seasonality/cyclicality of operations	
 
 	Management does not consider operations to be of a significant seasonal or cyclical nature.	

 
15

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014	  	
 
MANAGEMENT’S DISCUSSION and ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
for the three and six-month periods ended June 30, 2014
 
Throughout this MD&A, Eldorado , we, us, our and the Company mean Eldorado Gold Corporation.
This quarter means the second quarter of 2014. All dollar amounts are in United States dollars unless stated otherwise.

The information in this MD&A is as of July 31, 2014. You should also read our audited consolidated financial statements for the year ended December 31, 2013 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the unaudited interim condensed consolidated financial statements for the three and six-month periods ended June 30, 2014 prepared in accordance with International Accounting Standard (IAS) 34 – “Interim Financial Reporting”. We file our financial statements and MD&A 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 gold mines around the world. Its activities involve all facets of the gold mining industry including exploration and evaluation, development, production and reclamation.

Operating gold mines:
·  	Kisladag, in Turkey (100%)	
·  	Efemcukuru, in Turkey (100%)	
·  	Tanjianshan, in China (90%)	
·  	Jinfeng, in China (82%)	
·  	White Mountain, in China (95%)	

Gold projects:
·  	Skouries, in Greece (95%)	
·  	Olympias, in Greece (95%)	
·  	Perama Hill, in Greece (100%)	
·  	Sappes, in Greece (100%)	
·  	Certej, in Romania (81%)	
·  	Eastern Dragon, in China (75%)	
·  	Tocantinzinho, in Brazil (100%)	

Other mines:
·  	Vila Nova – iron ore, in Brazil (100%)	
·  	Stratoni – silver, lead, zinc, in Greece (95%)	

Eldorado’s common shares are 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.

1

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014	  	
 
Second quarter summary results and corporate developments

Selected consolidated financial information and corporate developments

·  	Net profit attributable to shareholders of the Company was $37.6 million ($0.05 per share), compared to $43.3 million ($0.06 per share) in the second quarter of 2013.	

·	Gold revenues were $247.6 million (2013 - $243.6 million) on sales of 190,621 ounces of gold at an average realized gold price of $1,299 per ounce (2013 – 176,260 ounces at $1,382 per ounce).	

·  	Liquidity of $959.5 million, including $584.5 million in cash, cash equivalents and term deposits, and $375.0 million in lines of credit.	

·  	During the quarter the Company received a positive Environmental Impact Assessment (“EIA”) decision from the Ministry of Environment and Urbanization of Turkey on the Kisladag Mine Expansion project.	

·  	On July 31, 2014 the Company declared a dividend of Cdn$0.01 per share to shareholders of record.	

Selected performance measures (1)

·  	Gold production of 200,551 ounces, including Olympias production from tailings retreatment (2013 – 183,971 ounces), a 9% increase year over year.	

·  	Cash operating costs averaged $489 per ounce (2013 – $478 per ounce).	

·  	All-in sustaining cash costs averaged $829 per ounce.	

·  	Gross profit from gold mining operations were $100.8 million (2013 – $117.2 million).	

·  	Adjusted net earnings of $35.9 million ($0.05 per share) compared to adjusted net earnings of $48.2 million ($0.07 per share) in 2013.	

·  	Cash generated from operating activities before changes in non-cash working capital was $92.2 million (2013 – $84.9 million).	

(1) Throughout this MD&A we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost per ounce, 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 10 for an explanation and discussion of these non-IFRS measures.

Outlook

Gold production for 2014 is forecast to be 790,000 ounces of gold with average cash costs for commercial production of $495 per ounce and all-in sustaining cash costs of $850 per ounce. Previous guidance was production of 730,000 - 800,000 ounces at average cash costs of $550 to $590 per ounce and all-in sustaining cash costs of $915 to $985 per ounce. Capital spending is forecast to be $170.0 million in sustaining capital and $265.0 million in project development capital compared with previous guidance of $170.0 million and $345.0 million respectively. The forecast for project development capital is lower than original guidance mainly due to presently projected lower capital spending at Skouries.

The Company is evaluating the merits of pursuing a potential overseas listing on the Hong Kong Stock Exchange in relation to its Chinese business. Eldorado is the largest foreign producer of gold in China with three operating gold mines (Jinfeng, Tanjianshan and White Mountain) and the Eastern Dragon project. The Company’s Chinese operations presently produce approximately 300,000 ounces of gold annually, and contain 5.3 million ounces of measured and indicated resources, and 2.2 million ounces of inferred resources.

2

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Review of Financial Results
 
Summarized financial results	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Revenues (millions)	$	265.5	 	 	$	266.9	 	 	$	545.4	 	 	$	605.0	 	
Gold revenues (millions)	$	247.6	 	 	$	243.6	 	 	$	495.2	 	 	$	550.8	 	
Gold sold (ounces)	 	190,621	 	 	 	176,260	 	 	 	381,249	 	 	 	365,606	 	
Average realized gold price (US$ per ounce)	$	1,299	 	 	$	1,382	 	 	$	1,299	 	 	$	1,506	 	
Cash operating costs (US$ per ounce sold)	$	489	 	 	$	478	 	 	$	504	 	 	$	492	 	
Total cash cost (US$ per ounce sold)	$	549	 	 	$	536	 	 	$	563	 	 	$	552	 	
All-in sustaining cash cost (US$ per ounce sold)	$	829	 	 	 	n/a	 	 	$	809	 	 	 	n/a	 	
Gross profit from gold mining operations (millions)	$	100.8	 	 	$	117.2	 	 	$	196.2	 	 	$	281.0	 	
Adjusted net earnings (millions)	$	35.9	 	 	$	48.2	 	 	$	73.2	 	 	$	131.5	 	
Net profit (loss) attributable to shareholders of the Company (millions)	$	37.6	 	 	$	43.3	 	 	$	68.9	 	 	$	(2.2	)	
Earnings (loss) per share attributable to shareholders of the Company – Basic (US$/share)	$	0.05	 	 	$	0.06	 	 	$	0.10	 	 	$	0.00	 	
Earnings (loss) per share attributable to shareholders of the Company – Diluted (US$/share)	$	0.05	 	 	$	0.06	 	 	$	0.10	 	 	$	0.00	 	
Dividends paid (Cdn$/share)	$	0.00	 	 	$	0.00	 	 	$	0.01	 	 	$	0.07	 	
Cash flow from operating activities before changes in non-cash working capital (millions)	$	92.2	 	 	$	84.9	 	 	$	186.9	 	 	$	224.8	 	
 
Net income for the quarter was $37.6 million (or $0.05 per share), compared with $43.3 million (or $0.06 per share) in the second quarter of 2013. Gold revenues of $247.6 million were two percent higher year over year as higher gold sales volumes were partially offset by lower gold prices. Gross profit from gold mining operations was fourteen percent lower than that of the second quarter of 2013 reflecting higher production costs and depreciation expense as a result of higher sales volumes. Total cash cost per ounce increased two percent year over year.
 
Exploration expenses fell $6.4 million year over year reflecting changes in the Company’s exploration program in response to lower gold prices. The Company reported a foreign exchange gain of $1.6 million for the quarter as compared to a loss of $5.9 million for the second quarter of 2013 mainly as a result of changes in foreign exchange rates on the Company’s Canadian dollar investments. Interest and financing costs fell $3.1 million year over year, reflecting an increase in capitalization of interest on the Company’s Greek development projects.
 
The effective tax rate for the quarter was thirty-nine percent as compared to a rate of thirty-six percent in the second quarter of 2013. The effective tax rate for the second quarter of 2013 was lower due to a tax recovery related to recognition of investment tax credits in Turkey, partly offset by the impact of movements in the Turkish lira on deferred tax balances. The effective tax rate for the second quarter of 2014 was higher due to higher withholding tax accruals on dividends from our Turkish and Chinese subsidiaries.

3

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Operations update

Summarized Operating Results	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Gross profit – gold mining operations (millions)	$	100.8	 	 	$	117.2	 	 	$	196.2	 	 	$	281.0	 	
Ounces produced – including Olympias production from tailings retreatment	 	200,551	 	 	 	183,971	 	 	 	397,074	 	 	 	347,739	 	
Cash operating costs ($ per ounce sold)	$	489	 	 	$	478	 	 	$	504	 	 	$	492	 	
Total cash cost ($ per ounce sold)	$	549	 	 	$	536	 	 	$	563	 	 	$	552	 	
Kisladag	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit – gold mining operations (millions)	$	52.5	 	 	$	77.6	 	 	$	100.2	 	 	$	162.6	 	
Ounces produced	 	76,980	 	 	 	76,735	 	 	 	144,055	 	 	 	146,956	 	
Cash operating costs ($ per ounce sold)	$	443	 	 	$	327	 	 	$	449	 	 	$	331	 	
Total cash cost ($ per ounce sold)	$	466	 	 	$	348	 	 	$	470	 	 	$	353	 	
Efemcukuru	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit – gold mining operations (millions)	$	11.6	 	 	$	12.2	 	 	$	26.3	 	 	$	51.0	 	
Ounces produced	 	25,034	 	 	 	26,289	 	 	 	52,003	 	 	 	46,145	 	
Cash operating costs ($ per ounce sold)	$	552	 	 	$	519	 	 	$	538	 	 	$	561	 	
Total cash cost ($ per ounce sold)	$	576	 	 	$	537	 	 	$	561	 	 	$	592	 	
Tanjianshan	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit – gold mining operations (millions)	$	13.5	 	 	$	15.2	 	 	$	27.0	 	 	$	34.2	 	
Ounces produced	 	25,790	 	 	 	27,938	 	 	 	54,169	 	 	 	54,145	 	
Cash operating costs ($ per ounce sold)	$	391	 	 	$	398	 	 	$	407	 	 	$	419	 	
Total cash cost ($ per ounce sold)	$	570	 	 	$	577	 	 	$	581	 	 	$	605	 	
Jinfeng	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit – gold mining operations (millions)	$	17.0	 	 	$	8.3	 	 	$	29.4	 	 	$	17.0	 	
Ounces produced	 	45,568	 	 	 	28,889	 	 	 	86,863	 	 	 	50,631	 	
Cash operating costs ($ per ounce sold)	$	540	 	 	$	757	 	 	$	581	 	 	$	789	 	
Total cash cost ($ per ounce sold)	$	622	 	 	$	845	 	 	$	664	 	 	$	881	 	
White Mountain	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit – gold mining operations (millions)	$	6.2	 	 	$	3.9	 	 	$	13.3	 	 	$	16.2	 	
Ounces produced	 	21,000	 	 	 	17,462	 	 	 	47,473	 	 	 	38,377	 	
Cash operating costs ($ per ounce sold)	$	583	 	 	$	742	 	 	$	596	 	 	$	683	 	
Total cash cost ($ per ounce sold)	$	623	 	 	$	781	 	 	$	636	 	 	$	726	 	
Olympias	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ounces produced from tailings retreatment	 	6,179	 	 	 	6,658	 	 	 	12,511	 	 	 	11,485	 	

4

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Kisladag

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes placed on pad	 	3,127,844	 	 	 	3,301,333	 	 	 	6,984,726	 	 	 	6,216,841	 	
Average treated head grade - grams per tonne (g/t)	 	1.11	 	 	 	1.26	 	 	 	0.90	 	 	 	1.28	 	
Gold (ounces)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Produced	 	76,980	 	 	 	76,735	 	 	 	144,055	 	 	 	146,956	 	
-   Sold	 	72,815	 	 	 	76,680	 	 	 	139,667	 	 	 	146,930	 	
Cash operating costs (per ounce sold)	$	443	 	 	$	327	 	 	$	449	 	 	$	331	 	
Total cash costs (per ounce sold)	$	466	 	 	$	348	 	 	$	470	 	 	$	353	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold revenues	$	93.7	 	 	$	108.6	 	 	$	180.2	 	 	$	223.1	 	
Depreciation and depletion	$	6.4	 	 	$	3.6	 	 	$	12.7	 	 	$	6.8	 	
Gross profit – gold mining operations	$	52.5	 	 	$	77.6	 	 	$	100.2	 	 	$	162.6	 	
Capital expenditure on mining interests	$	17.2	 	 	$	35.3	 	 	$	25.1	 	 	$	70.7	 	

Gold production at Kisladag during the quarter was level year over year while sales of approximately 4,600 ounces of gold were delayed into the third quarter due to the timing of dore shipments to the refinery. Leaching of run of mine ore placed on the pad during the first quarter of 2014 contributed to gold production during the second quarter, making up for lower tonnes and grade year over year. Cash costs in the quarter were higher than the same period of 2013 due to lower head grade and an increase in operational waste mining (2014 – 4.9 million tonnes versus 2013 – 0.7 million tonnes). Capital expenditures during the quarter included equipment for expansion and capitalized waste stripping.

Efemcukuru

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes Milled	 	110,706	 	 	 	109,349	 	 	 	217,207	 	 	 	196,228	 	
Average treated head grade - grams per tonne (g/t)	 	7.99	 	 	 	9.28	 	 	 	8.27	 	 	 	8.91	 	
Average Recovery Rate (to Concentrate)	 	93.2	%	 	 	94.0	%	 	 	93.1	%	 	 	93.8	%	
Gold (ounces)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Produced	 	25,034	 	 	 	26,289	 	 	 	52,003	 	 	 	46,145	 	
-   Sold	 	25,435	 	 	 	25,187	 	 	 	53,082	 	 	 	75,478	 	
Cash operating costs (per ounce sold)	$	552	 	 	$	519	 	 	$	538	 	 	$	561	 	
Total cash costs (per ounce sold)	$	576	 	 	$	537	 	 	$	561	 	 	$	592	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold revenues	$	33.1	 	 	$	31.6	 	 	$	69.7	 	 	$	112.7	 	
Depreciation and depletion	$	6.6	 	 	$	5.3	 	 	$	13.0	 	 	$	15.1	 	
Gross profit – gold mining operations	$	11.6	 	 	$	12.2	 	 	$	26.3	 	 	$	51.0	 	
Capital expenditure on mining interests	$	5.8	 	 	$	6.8	 	 	$	11.3	 	 	$	16.6	 	

Gold production at Efemcukuru during the quarter was lower year over year and cash operating costs per ounce were higher mainly due to a lower planned average treated head grade. Capital spending in the quarter included costs related to capitalized underground development and mobile equipment, surface infrastructure, and process improvements.

5

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Tanjianshan

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes Milled	 	278,226	 	 	 	273,065	 	 	 	541,836	 	 	 	520,126	 	
Average treated head grade - grams per tonne (g/t)	 	3.30	 	 	 	3.50	 	 	 	3.37	 	 	 	3.61	 	
Average Recovery Rate	 	82.0	%	 	 	83.6	%	 	 	81.6	%	 	 	82.3	%	
Gold (ounces)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Produced	 	25,790	 	 	 	27,938	 	 	 	54,169	 	 	 	54,145	 	
-   Sold	 	25,790	 	 	 	27,938	 	 	 	54,169	 	 	 	54,145	 	
Cash operating costs (per ounce sold)	$	391	 	 	$	398	 	 	$	407	 	 	$	419	 	
Total cash costs (per ounce sold)	$	570	 	 	$	577	 	 	$	581	 	 	$	605	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold revenues	$	33.7	 	 	$	38.4	 	 	$	70.7	 	 	$	81.0	 	
Depreciation and depletion	$	5.4	 	 	$	6.7	 	 	$	11.8	 	 	$	13.3	 	
Gross profit – gold mining operations	$	13.5	 	 	$	15.2	 	 	$	27.0	 	 	$	34.2	 	
Capital expenditure on mining interests	$	3.7	 	 	$	3.2	 	 	$	4.8	 	 	$	5.0	 	

Gold production at Tanjianshan during the quarter was lower year over year as a result of lower average treated head grade and recovery rate. Capital spending included exploration activities and waste stripping.

Jinfeng

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes Milled	 	371,971	 	 	 	336,707	 	 	 	736,958	 	 	 	688,608	 	
Average treated head grade - grams per tonne (g/t)	 	4.17	 	 	 	3.33	 	 	 	4.08	 	 	 	2.87	 	
Average Recovery Rate	 	86.4	%	 	 	84.5	%	 	 	87.0	%	 	 	83.4	%	
Gold (ounces)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Produced	 	45,568	 	 	 	28,889	 	 	 	86,863	 	 	 	50,631	 	
-   Sold	 	45,581	 	 	 	28,993	 	 	 	86,858	 	 	 	50,676	 	
Cash operating costs (per ounce sold)	$	540	 	 	$	757	 	 	$	581	 	 	$	789	 	
Total cash costs (per ounce sold)	$	622	 	 	$	845	 	 	$	664	 	 	$	881	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold revenues	$	59.6	 	 	$	40.8	 	 	$	113.0	 	 	$	75.9	 	
Depreciation and depletion	$	14.2	 	 	$	8.1	 	 	$	26.0	 	 	$	14.2	 	
Gross profit – gold mining operations	$	17.0	 	 	$	8.3	 	 	$	29.3	 	 	$	17.0	 	
Capital expenditure on mining interests	$	1.6	 	 	$	15.4	 	 	$	7.1	 	 	$	29.3	 	
 
Gold production at Jinfeng during the quarter was higher year over year and cash operating costs per ounce were lower mainly due to higher tonnes milled, average treated head grade and recovery rate, mainly due to ore production from the open pit. The open pit had resumed full mining operations midway through the second quarter of 2013 after completion of a cutback. Capital spending during the quarter included underground mine development and tailings dam construction.

6

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
White Mountain

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes Milled	 	213,741	 	 	 	203,033	 	 	 	414,423	 	 	 	401,967	 	
Average treated head grade - grams per tonne (g/t)	 	3.56	 	 	 	3.25	 	 	 	3.84	 	 	 	3.52	 	
Average Recovery Rate	 	88.5	%	 	 	87.0	%	 	 	87.6	%	 	 	86.3	%	
Gold (ounces)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Produced	 	21,000	 	 	 	17,462	 	 	 	47,473	 	 	 	38,377	 	
-   Sold	 	21,000	 	 	 	17,462	 	 	 	47,473	 	 	 	38,377	 	
Cash operating costs (per ounce sold)	$	583	 	 	$	742	 	 	$	596	 	 	$	683	 	
Total cash costs (per ounce sold)	$	623	 	 	$	781	 	 	$	636	 	 	$	726	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gold revenues	$	27.5	 	 	$	24.2	 	 	$	61.7	 	 	$	58.1	 	
Depreciation and depletion	$	8.1	 	 	$	6.6	 	 	$	18.1	 	 	$	13.9	 	
Gross profit – gold mining operations	$	6.2	 	 	$	3.9	 	 	$	13.3	 	 	$	16.2	 	
Capital expenditure on mining interests	$	6.2	 	 	$	5.8	 	 	$	9.2	 	 	$	11.9	 	

Gold production at White Mountain for the quarter was higher year over year mainly as a result of increased process throughput, higher head grades, and improved recovery rates. Cash operating costs per ounce decreased significantly due to higher gold production and reduced operation costs. Capital spending this quarter included underground development, exploration, camp improvements, and completion of the new mobile maintenance work shop.

Vila Nova

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes Processed	 	190,721	 	 	 	179,864	 	 	 	394,202	 	 	 	392,775	 	
Iron Ore Produced	 	162,721	 	 	 	155,172	 	 	 	337,799	 	 	 	338,598	 	
Average Grade (% Fe)	 	62.8	%	 	 	60.1	%	 	 	62.8	%	 	 	59.8	%	
Iron Ore Tonnes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-   Sold	 	87,518	 	 	 	81,874	 	 	 	304,900	 	 	 	211,421	 	
Average Realized Iron Ore Price	$	56	 	 	$	106	 	 	$	74	 	 	$	113	 	
Cash Costs (per tonne produced)	$	69	 	 	$	74	 	 	$	62	 	 	$	69	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues	$	3.9	 	 	$	8.7	 	 	$	22.5	 	 	$	23.8	 	
Depreciation and depletion	$	0.9	 	 	$	0.9	 	 	$	3.1	 	 	$	2.1	 	
Gross profit / loss from mining operations	$	(3.0	)	 	$	1.8	 	 	$	0.4	 	 	$	7.2	 	
Capital expenditure on mining interests	$	0	 	 	$	0.2	 	 	$	0.1	 	 	$	3.6	 	

Vila Nova recorded a loss of $3.0 million for the quarter compared with gross profit of $1.8 million in the second quarter of 2013. A $1.0 million negative price adjustment related to prior quarters’ shipments impacted profitability. The average realized iron ore price for the quarter not including the price adjustment fell from $106 per tonne to $56 per tonne year over year. The Company is reviewing options to improve profitability at Vila Nova in light of the recent decline in iron ore prices.

7

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Stratoni

Operating Data	3 months ended June 30,	 	 	6 months ended June 30,	 	
 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Tonnes ore mined (wet)	 	57,275	 	 	 	60,109	 	 	 	114,517	 	 	 	114,234	 	
Tonnes ore processed (dry)	 	55,548	 	 	 	62,331	 	 	 	110,997	 	 	 	110,852	 	
Pb grade (%)	 	6.03	%	 	 	6.57	%	 	 	6.15	%	 	 	6.41	%	
Zn grade (%)	 	11.39	%	 	 	9.38	%	 	 	11.33	%	 	 	9.37	%	
Ag grade (g/t)	 	150	 	 	 	173	 	 	 	157	 	 	 	168	 	
Tonnes of concentrate produced	 	15,714	 	 	 	16,054	 	 	 	31,650	 	 	 	28,332	 	
Tonnes of concentrate sold	 	12,989	 	 	 	16,783	 	 	 	29,706	 	 	 	30,751	 	
Average realized concentrate price (per tonne)	$	981	 	 	$	783	 	 	$	845	 	 	$	849	 	
Cash Costs (per tonne of concentrate sold)	$	735	 	 	$	829	 	 	$	671	 	 	$	829	 	
Financial Data (millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues	$	12.7	 	 	$	13.1	 	 	$	25.1	 	 	$	26.1	 	
Depreciation and depletion	$	1.9	 	 	$	3.4	 	 	$	4.0	 	 	$	5.3	 	
Gross profit from mining operations	$	0.3	 	 	$	(4.2	)	 	$	0.2	 	 	$	(4.7	)	
Capital expenditure on mining interests	$	1.1	 	 	$	0.5	 	 	$	1.5	 	 	$	0.6	 	

Combined metal concentrate production at Stratoni for the quarter was level year over year, with lower lead concentrate production offset by higher zinc concentrate production as a result of changes in metal head grades. The average realized combined concentrate price increased year over year as zinc prices improved while lead prices weakened. Taken in conjunction with the increase in zinc concentrate production the change in metal prices contributed to Stratoni’s gross profit performance year over year.
 
Development project update

Kişladağ Mine Expansion
During the quarter the Company received a positive Environmental Impact Assessment (“EIA”) decision from the Ministry of Environment and Urbanization of Turkey on the Kisladag Mine Expansion project. The EIA approval will allow for the expansion of the Kisladag open pit mine production from its current 12.5 million tonnes per annum to a maximum of 35.0 million tonnes per annum. The Company has decided to proceed with an expansion to an annual production rate of 20 million tonnes per year of crushed ore to the leach pad at an additional capital cost of approximately $90.0 million. We are forecasting completion in mid-2016, producing an average of 325,000 ounces per annum in the first five years after expansion.
 
Skouries
Major structural concrete placements for the semi-autogenous grinding (“SAG”) and ball mills commenced in the quarter. The SAG mill foundation was completed, and concrete placement in the SAG mill plinths was begun. The majority of the ball mill concrete piles were completed and reinforcing fabrication and formwork for other major plant foundations was ongoing. Mill mechanical equipment was being pre-assembled in a nearby warehouse and will be mobilized to site with onsite erection scheduled to begin in the third quarter. Construction of access roads to the tailings dam progressed during the quarter. A review of the tailings dam construction materials and methodology was completed and design modifications to enhance constructability were finalized. Site earthwork continued during the quarter, and included excavation and fill for the regrind mill, the flotation area and the tailings thickening area. The site batch plant construction commenced and is scheduled to be completed in the third quarter. The open pit surface area was cleared of trees and topsoil removal commenced. Progress continued on the underground decline during the quarter. Capital spending totaled $29.7 million during the quarter.

8

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Olympias
Approximately 168,000 tonnes of tailings were reprocessed during the quarter at a grade of 2.84 grams per tonne. A total of 6,179 payable ounces of gold in concentrate were produced. Cash proceeds from the sale of concentrate generated $11.8 million during the quarter on approximately 9,300 ounces of gold in concentrate. Capital spending totalled $35.6 million during the quarter including approximately $11.0 million related to tailings reprocessing, production royalties and transportation and selling costs, $1.9 million related to capitalized interest, and the remainder on mine development as well as Phase II engineering.

Perama Hill
Preliminary engineering continued on the project during the quarter with completion expected in the third quarter this year. Metallurgical test work to optimize the process is planned to be completed during the third quarter this year, with detailed engineering expected to begin shortly thereafter. The Company continues to work with Greek government authorities to facilitate approval of the Environmental Impact Assessment (“EIA”). Capital spending totaled $3.1 million during the quarter.

Certej
During the quarter studies were conducted focussing on optimization of critical elements of the project identified in the prefeasibility study, including pressure oxidation, oxygen supply, open pit development and use of Romanian resources to build the mine. Metallurgical test work continued during the quarter in order to provide further data for optimization of the pressure oxidation circuit. The Company plans to commence work on the feasibility study in the third quarter this year. Capital spending totaled $2.3 million during the quarter.

Tocantinzinho
During the quarter work continued on optimization of the Tocantinzinho feasibility study. Additionally, preparations were begun to upgrade the access road to the site, including obtaining the necessary permits and authorizations from the municipality. Capital spending totaled $0.5 million during the quarter.
 
Eastern Dragon
Eastern Dragon remained on care and maintenance pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits and permissions in good standing. Work continued on the preparation of the revised EIA for submission to the Ministry of Environmental Protection (“MEP”). This will be followed by submission of the project permit approval to the National Development and Reform Commission.

Exploration update
 
Greece
In the Halkidiki District, underground exploration drilling continued at the Mavres Petres mine, targeting the western extension of the orebody. Several drillholes cut massive sulfide zones outside of the existing resource, and activities are now focused on extending underground development to allow further stepout drilling. Drilling commenced late in the quarter at the Piavitsa deposit with a 6,000 meter program planned to test the continuity of mineralized zones identified in previous widely-spaced drillholes. At the Olympias deposit, drilling completed in the east ramp development project encountered several significant zones of high grade gold and silver mineralization that lie outside of the current resource model.

In the Perama district exploration activities focused on extending geological mapping coverage in the Perama South area, conducting reconnaissance field visits to nearby prospects, and evaluating historical data for the newly acquired Sappes project.

9

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Romania
Exploration activities during the quarter near Certej focused on defining drill targets at the Magura, Bocsa, and P. Avram prospect areas. Reconnaissance mapping, soil sampling, and drillhole targeting commenced during the quarter at the nearby Muncel and Brad exploration licenses.

Turkey
Exploration activities in Turkey focussed on reconnaissance of regional target areas in western Turkey, and definition of new drilling targets at the Efemcukuru minesite.

China
Underground drilling at White Mountain targeted down-plunge extensions in the middle and north ore zones. Detailed geological mapping was conducted over the mine area, and surface exploration drilling programs will commence in the third quarter. At Tanjianshan, drilling programs were completed at the Xijingou deposit and Dushugou prospect, and drilling is ongoing at the Qinlongtan North deposit.

Brazil
Exploration resumed at the Tapajos region projects, including soil sampling along the Tocantinzinho trend northwest of the Tocantinzinho deposit, and drill-testing of geochemical anomalies at the adjacent Ruben Zilio project.
 
Quarterly results

millions (except per share amounts)
 	 	2014	 	 	2014	 	 	2013	 	 	2013	 	 	2013	 	 	2013	 	 	2012	 	 	2012	 	
 	 	Second quarter	 	 	First quarter	 	 	Fourth quarter	 	 	Third quarter	 	 	Second quarter	 	 	First quarter	 	 	Fourth quarter	 	 	Third quarter	 	
Total revenues	 	$	265.5	 	 	$	279.9	 	 	$	231.7	 	 	$	287.3	 	 	$	266.9	 	 	$	338.1	 	 	$	350.0	 	 	$	281.8	 	
Profit (loss)	 	$	37.6	 	 	$	31.3	 	 	$	(687.5	)	 	$	36.4	 	 	$	43.3	 	 	$	(45.4	)	 	$	115.0	 	 	$	75.8	 	
Earnings (loss) per share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- basic	 	$	0.05	 	 	$	0.04	 	 	$	(0.96	)	 	$	0.05	 	 	$	0.06	 	 	$	(0.06	)	 	$	0.16	 	 	$	0.11	 	
- diluted	 	$	0.05	 	 	$	0.04	 	 	$	(0.96	)	 	$	0.05	 	 	$	0.06	 	 	$	(0.06	)	 	$	0.16	 	 	$	0.11	 	

Quarterly loss for the first quarter of 2013 was due to a one-time $125.2 million non-cash adjustment related to an increase in Greek income tax rates. Quarterly loss for the fourth quarter of 2013 was due to a one-time $684.6 million impairment charge.
 
Non-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 along 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.

10

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Cash operating cost and total cash cost
The table below reconciles cash operating cost from our gold mining operations to production costs. We calculate costs according to the Gold Institute Standard. Total cash cost is the sum of cash operating cost, royalty expense and production tax expense.
 
Reconciliation of cash operating costs to production costs	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
millions (except for gold ounces sold and cash operating cost per ounce sold)	 	Second
quarter	 	 	Second
quarter	 	 	Year to date	 	 	Year to
 date	 	
Production costs – excluding Vila Nova and Stratoni
(from consolidated income statement)	 	$	106.0	 	 	$	96.2	 	 	$	217.4	 	 	$	206.5	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
By-product credits and other adjustments	 	 	(1.3	)	 	 	(1.7	)	 	 	(2.7	)	 	 	(4.6	)	
Total cash cost	 	$	104.7	 	 	$	94.5	 	 	$	214.7	 	 	$	201.9	 	
Royalty expense and production taxes	 	 	(11.5	)	 	 	(10.3	)	 	 	(22.6	)	 	 	(22.1	)	
Cash operating cost	 	$	93.2	 	 	$	84.2	 	 	$	192.1	 	 	$	179.8	 	
Gold ounces sold	 	 	190,621	 	 	 	176,260	 	 	 	381,249	 	 	 	365,606	 	
Total cash cost per ounce sold	 	$	549	 	 	$	536	 	 	$	563	 	 	$	552	 	
Cash operating cost per ounce sold	 	$	489	 	 	$	478	 	 	$	504	 	 	$	492	 	
 
All-in sustaining cash cost
Effective January 31, 2014 the Company, in conjunction with an initiative undertaken within the gold mining industry and set out in the guidance note released by the World Gold Council on June 27, 2013, has adopted an all-in sustaining cost performance measure. All-in sustaining costs are calculated by taking total cash costs as indicated in the reconciliation above and adding sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs, and reclamation cost accretion. 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. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included. The Company reports this measure on a gold ounces sold basis. The table below provides additional detail on the calculation of the Company’s all-in sustaining cash cost for the current periods.

Calculation of all-in sustaining cash costs	 	2014	 	 	2014	 	
millions (except for gold ounces sold and all-in sustaining cash cost per ounce sold)	 	Second
quarter	 	 	Year to
 date	 	
Total cash cost – excluding Via Nova and Stratoni (per table above)	 	$	104.7	 	 	$	214.6	 	
Sustaining capital spending at operating gold mines	 	 	34.5	 	 	 	57.5	 	
Exploration spending at operating gold mines	 	 	2.2	 	 	 	3.3	 	
General and administrative expenses	 	 	16.6	 	 	 	32.6	 	
All-in sustaining cash costs	 	$	158.0	 	 	$	308.0	 	
Gold ounces sold	 	 	190,621	 	 	 	381,249	 	
All-in sustaining cash cost per ounce sold	 	$	829	 	 	$	809	 	

11

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		
 
Cash flow from mining operations before changes in non-cash working capital
We use cash flow from mining operations 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.

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 as well as significant non-cash, non-recurring items. 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 quarters ended June 30:

Reconciliation of adjusted net earnings to consolidated net earnings (loss)
millions (except for weighted average shares and earnings per share)	 	 	Q2 2014	 	 	 	Q2 2013	 	 	YTD 2014	 	 	YTD 2013	 	
Net (loss) earnings attributable to shareholders	 	$	37.6	 	 	$	43.3	 	 	$	68.9	 	 	$	(2.2	)	
Loss (gain) on disposal of assets	 	 	1.8	 	 	 	(0.1	)	 	 	1.8	 	 	 	0.0	 	
Losses (gains) on available-for-sale securities	 	 	0.5	 	 	 	0.0	 	 	 	1.3	 	 	 	0.0	 	
Loss on investment in associates	 	 	0.0	 	 	 	0.2	 	 	 	0.1	 	 	 	1.1	 	
Unrealized losses (gains) on foreign exchange translation of deferred income tax balances	 	 	(4.0	)	 	 	4.8	 	 	 	1.1	 	 	 	7.4	 	
Deferred income tax charge for change in Greek tax rates	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	125.2	 	
Total adjusted net earnings	 	$	35.9	 	 	$	48.2	 	 	$	73.2	 	 	$	131.5	 	
Weighted average shares outstanding	 	 	716,249	 	 	 	715,038	 	 	 	716,239	 	 	 	714,739	 	
Adjusted net earnings ($/share)	 	$	0.05	 	 	$	0.07	 	 	$	0.10	 	 	$	0.18	 	
 
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.

12

 
MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Operating cash flow, financial condition and liquidity

Operating activities before changes in non-cash working capital generated $92.2 million in cash this quarter, compared to $84.9 million in the same quarter of 2013.

Capital expenditures
We invested $107.9 million in capital expenditures, mine evaluation and development, mining licences and other assets in the second quarter of 2014. Mine evaluation and development totalled $71.6 million while spending at our producing mines (including capitalized exploration) totalled $35.6 million. The remaining $0.7 million related to fixed assets for our corporate offices in Canada, Brazil, Turkey, Greece, Romania, and China.

Liquidity and capital resources

(millions)	 	June 30,
2014	 	 	December 31,
2013	 	
Cash, cash equivalents and term deposits	 	$	584.5	 	 	$	623.9	 	
Working capital	 	$	717.7	 	 	$	734.0	 	
Debt	 	$	602.4	 	 	$	601.4	 	

Management believes that the working capital at June 30, 2014, 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 2014 and beyond.

Contractual obligations

(millions)	 	Within 1 year	 	 	2 to 3 years	 	 	3 to 4 years	 	 	Over 5 years	 	 	Total	 	
Debt	 	 	16.3	 	 	 	-	 	 	 	-	 	 	 	600.0	 	 	 	616.3	 	
Capital leases	 	 	0.5	 	 	 	1.8	 	 	 	0.9	 	 	 	-	 	 	 	3.2	 	
Operating leases	 	 	10.0	 	 	 	15.2	 	 	 	11.0	 	 	 	17.5	 	 	 	53.7	 	
Purchase obligations	 	 	67.0	 	 	 	39.0	 	 	 	29.0	 	 	 	-	 	 	 	135.0	 	
Totals	 	 	93.8	 	 	 	56.0	 	 	 	40.9	 	 	 	617.5	 	 	 	808.2	 	

The table does not include interest on debt.

As at June 30, 2014, Hellas Gold had entered into off-take agreements pursuant to which Hellas Gold agreed to sell a total of 19,565 dry metric tonnes of zinc concentrates, 8,310 dry metric tonnes of lead/silver concentrates over the next three years, and 38,000 dry metric tonnes of gold concentrate through December 31, 2014.

In April 2007, Hellas Gold agreed to sell to Silver Wheaton (Caymans) Ltd. (Silver Wheaton) all of the silver metal to be produced from ore extracted during the mine-life within an area of approximately seven square kilometres around Stratoni, up to 15 million ounces, or 20 million ounces if additional silver is processed through the Stratoni mill from areas other than the current producing mine. The sale was made in consideration of a prepayment to Hellas Gold of $57.5 million in cash, plus a fee per ounce of payable silver to be delivered to Silver Wheaton of the lesser of $3.90 and the prevailing market price per ounce. As at June 30, 2014 approximately 6.2 million ounces of silver have been delivered of the original 15 million ounce commitment.

13

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Debt
Significant changes in our debt from that disclosed in our December 31, 2013 annual MD&A and consolidated financial statements are as follows:

Jinfeng CMB working capital loan
On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($16.3 million) working capital loan with CMB. Each drawdown bears fixed interest at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. The Facility had a term of up to one year, from January 16, 2013 to January 15, 2014. In January 2014, the term of the facility was extended to January 28, 2015. The facility is unsecured .
 
As at June 30, 2014, Jinfeng has drawn down the full amount under this facility and has used the proceeds to fund working capital obligations. All tranches of the loan have a term of six months and a fixed interest rate of 5.6%.

Subsequent to June 30, 2014, Jinfeng repaid RMB 13.0 million ($2.1 million) on this loan.

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. Net deferred financing costs of $13.9 million 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.
 
The fair market value of the notes as at June 30, 2014 was $609.0 million.
 
Entrusted loan
In November 2010, Eastern Dragon, HSBC Bank (China) and Qinghai Dachaidan Mining Ltd (“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 ($117.0 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 drawdown bears interest fixed at the prevailing lending rate stipulated by the People’s Bank of China on the date of drawdown. Each draw down has a term of three months and can be rolled forward at the discretion of QDML. The interest rate on this loan as at June 30, 2014 was 4.59%.

As at June 30, 2014, RMB 643.2 million ($104.5 million) had been drawn under the entrusted loan.
The entrusted loan has been recorded on a net settlement basis.
 
Equity
This quarter no shares were issued related to stock options and warrants being exercised.

Common shares outstanding	 	 	 	
- as of June 30, 2014	 	 	716,248,610	 	
- as of July 31, 2014	 	 	716,266,182	 	
 	 	 	 	 	
Share purchase options	 	 	 	 	
- as of July 31, 2014	 	 	21,849,803	 	
(Weighted average exercise price per share: $11.72 Cdn)	 	 	 	 	

14

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Other information

New accounting developments

The following interpretation of a standard has been adopted by the company commencing January 1, 2014:
 
·  	IFRIC 21 ‘ Levies ’ – This interpretation of IAS 37, ‘Provisions , Contingent Liabilities and Contingent Assets’, applies to the accounting for levies imposed by governments. IAS 37 sets out criteria for the recognition of a liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (“obligating event”). IFRIC 21 clarifies that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. There was no impact on these unaudited condensed consolidated interim financial statements as a result of the adoption of this standard.	
 
The following standards have been published and are mandatory for Eldorado’s annual accounting periods no earlier than January 1, 2017:
 
·  	IFRS 9 ‘Financial Instruments: Classification and Measurement’ – This is the first part of a new standard on classification and measurement of financial assets that will replace IAS 39, ‘ Financial Instruments: Recognition and Measurement’ . IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is recorded at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. Otherwise it is measured at fair value with changes in fair value through profit or loss. In addition, this new standard has been updated to include guidance on financial liabilities and derecognition of financial instruments. 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 recognising 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 judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. This standard is effective for fiscal years ending on or after December 31, 2017. The Company does not expect this standard to have a material impact on its financial statements.	
 
Internal controls over financial reporting
 
Eldorado’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. As a result, even those systems determined to be effective can only provide reasonable assurance regarding the preparation and presentation of our financial statements. There have been no changes in our internal control over financial reporting in the second quarter of 2014 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
 
Qualified Person

Except as otherwise noted, Norman Pitcher, P. Geo., our President, is the Qualified Person under NI 43-101 responsible for supervising the preparation of the scientific or technical information contained in this MD&A and verifying the technical data disclosed in this document relating to our operating mines and development projects.

15

MANAGEMENT’S DISCUSSION AND ANALYSIS
for the three and six-month periods ended June 30, 2014		

Forward-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 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	
 	•	the changing price of gold and currencies,	
 	•	actual and estimated production and mineral reserves and resources,	
 	•	the speculative nature of gold exploration,	
 	•	risks associated with mining operations and development,	
 	•	regulatory and permitting risks,	
 	•	acquisition risks, and	
 	•	other risks that are set out in our Annual Information Form.	
•	If our assumptions prove to be incorrect or the risks materialize, our actual results and events may vary materially from what we currently expect.	
 
We recommend that you review our annual information form, which include a more detailed discussion of material risks that could cause actual results to differ significantly from our current expectations.
 
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.

16

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Paul Wright, Chief Executive Officer of Eldorado Gold Corporation certify the following:
 
1.	I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended June 30, 2014.	

2.	Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.	

3.  	Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.	

4.  	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.	

5.  	Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings	

 	(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that	

 	(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and	

 	(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and	

 	(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.	

5.1	The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework.	

5.2	N/A	
 
5.3	N/A	

6.	The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2014   and ended on June 30, 2014 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.	
 
Date: August 1, 2014
 
“Paul Wright”
_______________________________
Paul Wright
Chief Executive Officer

Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Fabiana Chubbs, Chief Financial Officer of Eldorado Gold Corporation certify the following:
 
1.	I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Eldorado Gold Corporation (the “issuer”) for the interim period ended June 30, 2014.	

2.	Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.	

3.  	Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.	

4.  	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.	

5.  	Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings	

 	(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that	

 	(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and	

 	(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and	

 	(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.	

5.1	The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework.	

5.2	N/A	
 
5.3	N/A	

6.	The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2014   and ended on June 30, 2014 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.	

Date: August 1, 2014
 
“Fabiana Chubbs”
_______________________________
Fabiana Chubbs
Chief Financial Officer