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 November, 2006

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:  November 6, 2006	ELDORADO GOLD CORPORATION

/s/ Dawn Moss

Dawn Moss, Corporate Secretary	

Exhibits
 
99.1    News Release 06-18

NEWS RELEASE
ELD No.  06-18
TSX: ELD, AMEX: EGO
November 6, 2006

Q3 2006 Financial and Operational Results
(all figures in United States dollars, unless otherwise noted)

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

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

Q3 2006 Highlights

·
Earnings of $0.02 per share
·
Produced 41,082 ounces of gold from two mines during the quarter
·
Commenced commercial production at our Kisladag gold mine in Turkey and produced 27,477 ounces at a cash operating cost of $218 per ounce
·
Began commissioning our Tanjianshan gold mine in China, which is scheduled to start production in November
·
Commenced drilling program at Efemçukuru to support the feasibility study

Financial Results

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

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

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

Operating Performance

Kisladag

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

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

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

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

Sao Bento

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

Development

China

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

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

Turkey

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

Exploration

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

Turkey

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

Brazil

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

China

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

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

ON BEHALF OF ELDORADO GOLD CORPORATION

/s/ Paul N. Wright

Paul N. Wright
President and Chief Executive Officer

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

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

Contact:
Nancy E. Woo, Manager Investor Relations
Eldorado Gold Corporation
Phone: 604.601.6650 or 1.888.353.8166
1188, 550 Burrard Street
Fax: 604.687.4026
Vancouver, BC V6C 2B5
Email nancyw@eldoradogold.com
Web site: www.eldoradogold.com

Request for information packages: info@eldoradogold.com

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

 	 	September 30	 	 	December 31	 	
 	 	2006	 	 	2005	 	
 	 	(unaudited)	 	 	 	 	
ASSETS  	 		 	 		 	
   Current assets 	 		 	 		 	
       Cash and cash equivalents 	$ 	81,051	 	$ 	33,826	 	
       Restricted cash (note 4) 	 	15,000	 	 	–	 	
       Accounts receivable 	 	14,168	 	 	8,264	 	
       Prepaids 	 	4,608	 	 	2,024	 	
       Inventories 	 	23,345	 	 	7,597	 	
 	 	138,172	 	 	51,711	 	
   Restricted cash (note 4) 	 	58,300	 	 	50,000	 	
   Property, plant and equipment 	 	262,297	 	 	186,610	 	
   Mineral properties and deferred development 	 	27,948	 	 	23,326	 	
   Investments and advances 	 	51	 	 	562	 	
   Other assets 	 	8,103	 	 	6,288	 	
   Goodwill 	 	2,238	 	 	2,238	 	
	 	 	 	 	 	 	
 	$ 	497,109	 	$ 	320,735	 	
LIABILITIES  	 		 	 		 	
   Current liabilities 	 		 	 		 	
       Accounts payable and accrued liabilities 	$ 	20,419	 	$ 	20,909	 	
       Current portion of capital lease obligation 	 	30	 	 	37	 	
       Current portion of long term debt (note 4) 	 	10,424	 	 	309	 	
 	 	30,873	 	 	21,255	 	
   Capital lease obligation 	 	74	 	 	90	 	
   Long term debt (note 4) 	 	50,832	 	 	50,832	 	
   Asset retirement obligation 	 	11,628	 	 	11,143	 	
   Contractual severance obligation 	 	3,268	 	 	2,437	 	
   Future income taxes 	 	11,005	 	 	10,051	 	
 	 	107,680	 	 	95,808	 	
SHAREHOLDERS' EQUITY  	 		 	 		 	
   Share capital (note 5) 	 	739,365	 	 	573,721	 	
   Warrants (note 5(d)) 	 	24	 	 	902	 	
   Contributed surplus (note 5(e)) 	 	8,852	 	 	7,074	 	
	 	(358,812	) 	 	(356,770	) 	
   Deficit 	 	389,429	 	 	224,927	 	
 	 	 	 	 	 	 	
 	$ 	497,109	 	$ 	320,735	 	

Commitments and contingencies (note 6)
See accompanying notes to consolidated financial statements
APPROVED BY THE BOARD OF DIRECTORS
/s/ Paul N. Wright                    /s/ Robert R. Gilmore
Director                                    Director

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

 		Three months ended	 	 	Nine months ended	 	
 	 	September 30	 	 	September 30	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
REVENUE  			 	 		 	 		 	 		 	
   Gold sales 	$	28,680	 	$  	9,170	 	$  	48,279	 	$  	21,532	 	
   Interest and other income 	 	2,043	 	 	1,352	 	 	5,137	 	 	3,026	 	
 	 	30,723	 	 	10,522	 	 	53,416	 	 	24,558	 	
EXPENSES  			 	 		 	 		 	 		 	
   Operating costs 		15,022	 	 	9,405	 	 	31,343	 	 	24,379	 	
   Depletion, depreciation and amortization 		1,831	 	 	2,467	 	 	2,002	 	 	7,384	 	
   General and administrative 		4,154	 	 	3,573	 	 	10,382	 	 	8,240	 	
   Exploration expense 		3,608	 	 	2,423	 	 	9,011	 	 	5,251	 	
   Stock based compensation expense 		625	 	 	365	 	 	2,639	 	 	1,907	 	
   Accretion of asset retirement obligation 		162	 	 	120	 	 	485	 	 	362	 	
   Foreign exchange gain 		(651	)  	 	(1,897	)  	 	(1,565	)  	 	(189	)  	
   Gain on disposal of assets 		(41	)  	 	(39	)  	 	(945	)  	 	(39	)  	
   Interest and financing costs 		736	 	 	8	 	 	797	 	 	44	 	
   Writedown of assets 	 	–	 	 	–	 	 	–	 	 	662	 	
		25,446	 	 	16,425	 	 	54,149	 	 	48,001	 	
   	 	  	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes  		5,277	 	 	(5,903	)  	 	(733	)  	 	(23 ,443	)  	
    Tax recovery (expense) – current  		(287	)  	 	(164	)  	 	(356	)  	 	(234	)  	
    Tax recovery (expense) – future  	 	209	 	 	(440	)  	 	(953	)  	 	(2,850	)  	
 													
NET INCOME (LOSS) FOR THE PERIOD  	$	5,199	 	$  	(6,507	)  	$  	(2,042	)  	$  	(26,527	)  	
  													
Basic income (loss) per share – US$  	$	0.02	 	$  	(0.02	)  	$  	(0.01	)  	$  	(0.10	)  	
Diluted income (loss) per share – US$  	$	0.02	 	$  	(0.02	)  	$  	(0.01	)  	$  	(0.10	)  	
 													
Basic income (loss) per share – Cdn$  	$	0.02	 	$  	(0.03	)  	$  	(0.01	)  	$  	(0.12	)  	
Diluted income (loss) per share – Cdn$  	$	0.02	 	$  	(0.03	)  	$  	(0.01	)  	$  	(0.12	)  	
 													
Weighted average number of shares outstanding  	 	340,885,429	 	 	277,933,154	 	 	335,515,842	 	 	277,892,706	 	

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

See accompanying notes to consolidated financial statements

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

 		Three months ended	 	 	Nine months ended	 	
 	 	September 30  	 	 	September 30  	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
Cash flows from operating activities  			 	 		 	 		 	 		 	
   Net income (loss) for the period 	$	5,199	 	$  	(6,507	)  	$  	(2,042	)  	$  	(26,527	)  	
   Items not affecting cash 			 	 		 	 		 	 		 	
       Accretion of asset retirement obligation 		162	 	 	120	 	 	485	 	 	362	 	
       Contractual severance expense 		344	 	 	106	 	 	1,032	 	 	318	 	
       Depletion, depreciation and amortization 		1,831	 	 	2,467	 	 	2,002	 	 	7,384	 	
       Foreign exchange (gain) loss 		(519	)  	 	(1,963	)  	 	(2,498	)  	 	(434	)  	
       Future income taxes 		(210	)  	 	440	 	 	953	 	 	2,850	 	
       Gain on disposal of assets 		(41	)  	 	(39	)  	 	(945	)  	 	(39	)  	
       Interest and financing costs 		720	 	 	8	 	 	709	 	 	44	 	
       Stock based compensation 		831	 	 	134	 	 	3,044	 	 	1,907	 	
       Writedown of assets 		–	 	 	–	 	 	–	 	 	662	 	
   Changes in non-cash working capital 			 	 		 	 		 	 		 	
       Accounts receivable and prepaids 		(4,902	)  	 	(2,444	)  	 	(8,488	)  	 	(4,544	)  	
       Inventories 		(4,414	)  	 	909	 	 	(15,748	)  	 	(436	)  	
       Accounts payable and accrued liabilities 	 	466	 	 	608	 	 	(2,330	)  	 	4,261	 	
Cash flows used for operating activities  	 	(533	)  	 	(6,161	)  	 	(23,826	)  	 	(14,192	)  	
Cash flows from investing activities  			 	 		 	 		 	 		 	
   Acquisition of property, plant and equipment for cash 		(29,487	)  	 	(25,150	)  	 	(78,421	)  	 	(58,373	)  	
   Proceeds on disposal of property, plant and equipment 		1,904	 	 	–	 	 	1,904	 	 	–	 	
   Mineral properties and deferred development 		(2,916	)  	 	(198	)  	 	(4,622	)  	 	(492	)  	
   Acquisition of Afcan, net of cash received 		–	 	 	895	 	 	–	 	 	895	 	
   Proceeds from disposal of investments and advances 		–	 	 	40	 	 	1,481	 	 	40	 	
   Restricted cash, related to environmental deposit 		(8,300	)  	 	–	 	 	(8,300	)  	 	–	 	
   Contractual severance obligation 		(201	)  	 	–	 	 	(201	)  	 	–	 	
   Other assets 	 	367	 	 	–	 	 	(1,815	)  	 	–	 	
Cash flows used for investing activities 	 	(38,633	)  	 	(24,413	)  	 	(89,974	)  	 	(57,930	)  	
 													
Cash flows from financing activities  			 	 		 	 		 	 		 	
   Issuances of long term debt 		10,115	 	 	15,459	 	 	10,115	 	 	50,618	 	
   Restricted cash, related to long term debt 		(15,000	)  	 	(15,332	)  	 	(15,000	)  	 	(50,447	)  	
   Repayment of capital lease obligation 		(15	)  	 	–	 	 	(23	)  	 	–	 	
   Issuance of common shares for cash 	 	5	 	 	4,485	 	 	163,500	 	 	4,827	 	
Cash flows provided by (used for) financing activities 	 	(4,895	)  	 	4,612	 	 	158,592	 	 	4,998	 	
 													
Foreign exchange gain (loss) on cash held in foreign currency 		520	 	 	1,953	 	 	2,433	 	 	418	 	
  													
Net increase (decrease) in cash and cash equivalents 		(43,541	)  	 	(24,009	)  	 	47,225	 	 	(66,706	)  	
Cash and cash equivalents at beginning of the period 	 	124,592	 	 	92,693	 	 	33,826	 	 	135,390	 	
 													
Cash and cash equivalents at end of the period 	$	81,051	 	$  	68,684	 	$  	81,051	 	$  	68,684	 	
Supplementary cash flow information 			 	 		 	 		 	 		 	
   Income taxes paid 	$	21	 	$  	108	 	$  	114	 	$  	188	 	
   Interest paid 	$	1,216	 	$  	–	 	$  	1,907	 	$  	–	 	
Non-cash transactions 			 	 		 	 		 	 		 	
   Interest capitalized to property, plant and equipment 	$	 –	 	$  	–	 	$  	1,131	 	$  	–	 	

See accompanying notes to consolidated financial statements.

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

1.
Nature of operations

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

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

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

2.
Basis of presentation and principles of consolidation

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

All material intercompany balances and transactions have been eliminated.

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

3.
Significant accounting policies

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

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

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

4.
Deposits, and Long term debt

			
 	September 30	December 31	
 	2006	2005	
Long term debt	 	 	
      Tuprag Loan  (note (4(b))	$    50,000 	$    50,000 	
      CCB Loan  (note 4(c))	10,115 	–   	
      Sino Gold Limited  (note 4(d))	1,141 	1,141 	
 	61,256 	51,141 	
      less: current portion – CCB Loan	(10,115)	–   	
      less: current portion – Sino Gold Limited	(309)	(309)	
 	$    50,832 	$    50,832 	
 	 	 	
Restricted cash	 	 	
      Current	 	 	
           Reserve account related to the CCB Loan (notes 4(a) and 4(c))	$    15,000 	$           –   	
 	 	 	
      Long term	 	 	
           Reserve account related to the Tuprag Loan (notes 4(a) and 4(b))	$    50,000 	$    50,000 	
           Environmental Guarantee Deposit   (note 4(e))	8,300 	–   	
 	$    58,300 	$    50,000 	

(a)
Revolving Credit Facility

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

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

(b)
Tuprag Loan

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

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

(c)
CCB Loan

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

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

(d)
Sino Gold loan

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

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

(e)
Environmental guarantee deposit

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

5.
Share capital

(a)
Authorized share capital

The Company’s authorized share capital consists of an unlimited number of voting common shares without par value, and an unlimited number of non-voting common shares without par value.

(b)
Issued and outstanding common shares

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

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

(c)
Share option plans

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

The continuity of share purchase options is as follows:

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

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

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

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

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

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

(d)
Warrants

The continuity of warrants is:

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

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

(e)
Contributed surplus

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

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

6.
Commitments and contingencies

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

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

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

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

ELDORADO GOLD CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2006
(Unaudited – Expressed in thousands of US dollars, unless otherwise stated)

7.
Segment disclosures

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

 	Three months ended
September 30	 	Nine months ended
September 30	
 	2006	2005	 	2006	2005	
Gold sales	 	 	 	 	 	
   Brazil	$    9,738	$     9,170 	 	$    29,337	$       21,532 	
   Turkey	18,942	–  	 	18,942	–  	
   Total	$    28,680	$     9,170 	 	$    48,279	$       21,532	
 	 	 	 	 	 	
Interest and other revenue	 	 	 	 	 	
   Brazil	$          540	$         57 	 	$          738	$           546 	
   Turkey	152	420 	 	154	530 	
   China	19	11 	 	66	11 	
   Canada	1,332	864 	 	4,178	1,939 	
   All other	–  	–  	 	1	–  	
   Total	$     2,043	$     1,352 	 	$     5,137	$        3,026 	
 	 	 	 	 	 	
Net income (loss)	 	 	 	 	 	
   Brazil	$        115	$    (5,026)	 	$        (915)	$     (16,126)	
   Turkey	7,454	(801)	 	2,090	(3,252)	
   China	(146)	(1,077)	 	(453)	(1,077)	
   Canada	(2,204)	609 	 	(2,729)	(6,072)	
   All other	(20)	(212)	 	(35)	–  	
   Total	$          5,199	$  (6,507)	 	$       (2,042)	$     (26,527)	

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