Eldorado Gold Signs Amended Investment Agreement with the Hellenic Republic - Seite 2

“We now have a modernized investment agreement that will provide a stable, commercial path for Eldorado in Greece, as well as a strong precedent for future investment in the country once ratified by the Greek Parliament. Together, we are building a positive legacy for generations to come as we continue to commit to operating responsibly and with care for local communities and the environment.”

Key Benefits of the Agreement

• Investor protection mechanisms, similar to other large-scale foreign investment agreements in Greece;
• A permitting framework allowing for a clear path to production and stable operations;
• Increased fiscal revenues for all levels of government, including a 10% increase in royalty rates for all contained metals³;
• Enhanced opportunities for local communities, including the creation of approximately 3,000 jobs and an $80 million commitment to community projects over the life of the mines; and
• Reduced environmental footprint through the use of best-available techniques (BAT) at the EU level, as well as global best practices, such as dry-stack tailings, improved water management systems and other design and monitoring improvements.
  

Next Steps at Skouries

The Company is advancing several key pieces of technical work on the Skouries project, including additional engineering and feasibility-level updates to the capital cost estimate. An application for dry-stack tailings was submitted to the Ministry of Energy & Environment in late 2020 with approval expected once the Ministry has completed its review. The Company is continuing to evaluate financing options for Skouries. Once re-started, the Company expects to complete construction in approximately 2.5 years.

About Skouries Project

Skouries is a high-grade gold-copper porphyry project that is partially constructed and currently in care and maintenance. Skouries is expected to operate for approximately 23 years based on current reserves, initially as an open pit and underground mine, followed by underground mining only.

Highlights of the project as outlined in the Technical Report for Skouries dated January 1, 2018 include:

• Proven and Probable reserves of 3.8 million ounces of gold at 0.74 g/t Au and 1.7 billion pounds of copper at 0.49% Cu, support a 23 year mine life at an average annual production of 140,000 ounces of gold and 67 million pounds of copper with production from both open-pit and underground.
• Estimated capital cost of $689.2 million, including $87 million in contingency, to fully develop both the open pit and Phase I of the Skouries underground, generating an estimated after-tax project NPV $925 million at a 5% discount rate, an internal rate of return of 21.2%, and a payback period of 3.4 years (at a gold price of $1,300/oz and a copper price of $2.75/lb).
• The project design specifies a dramatically-reduced environmental footprint reflecting some of the best-available control technology, and utilization of filtered dry stack tailings.