September 30, 2013	Unaudited Condensed Consolidated Financial Statements
	Suite 1188, 550 Burrard Street Vancouver, British Columbia V6C 2B5 Phone: (604) 687-4018 Fax: (604) 687-4026

Eldorado Gold Corporation

Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

	Note		September 30, 2013			December 31, 2012
				$			$
ASSETS
Current assets
Cash and cash equivalents				665,840			816,843
Term deposits				59,600			-
Restricted cash				261			241
Marketable securities				3,156			1,988
Accounts receivable and other				99,211			112,324
Inventories				220,888			220,766
				1,048,956			1,152,162
Investments in associates		6		15,935			27,949
Deferred income tax assets				1,673			3,149
Restricted assets and other				34,062			31,846
Defined benefit pension plan				5,513			4,571
Property, plant and equipment				6,081,177			5,868,742
Goodwill				839,710			839,710
				8,027,026			7,928,129
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities				215,514			224,567
Current debt		7		16,265			10,341
				231,779			234,908
Debt		7		584,519			582,974
Asset retirement obligations				80,974			79,971
Deferred income tax liabilities		8		959,300			816,941
				1,856,572			1,714,794
Equity
Share capital		9		5,309,770			5,300,957
Treasury stock				(11,084	)		(7,445	)
Contributed surplus				76,416			65,382
Accumulated other comprehensive loss				(26,273	)		(24,535	)
Retained earnings				544,148			594,876
Total equity attributable to shareholders of the Company				5,892,977			5,929,235
Attributable to non-controlling interests				277,477			284,100
				6,170,454			6,213,335
				8,027,026			7,928,129

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.

Eldorado Gold Corporation

Unaudited Condensed Consolidated Income Statements

(Expressed in thousands of U.S. dollars except per share amounts)

			Three months ended						Nine months ended
			September 30,						September 30,
	Note		2013			2012			2013			2012
				$			$			$			$
Revenue
Metal sales				287,254			281,839			892,251			797,579
Cost of sales
Production costs				120,753			107,615			367,254			293,340
Depreciation and amortization				40,461			26,082			112,809			78,635
				161,214			133,697			480,063			371,975
Gross profit				126,040			148,142			412,188			425,604
Exploration expenses				9,866			11,130			27,730			29,899
General and administrative expenses				14,671			17,518			49,396			53,345
Defined benefit pension plan expense				616			638			1,864			1,899
Share based payments				3,765			4,396			15,933			17,210
Acquisition costs		5		-			552			-			20,005
Foreign exchange loss (gain)				(939	)		(1,926	)		4,879			(2,227	)
Operating profit				98,061			115,834			312,386			305,473
Loss (gain) on disposal of assets				(120	)		(23	)		(135	)		423
Gain on marketable securities and other investments				-			-			(21	)		(1,032	)
Loss on investments in associates				1,426			1,375			2,549			3,119
Impairment loss on investment in associates		6		12,707			-			12,707			-
Other income				(2,460	)		(264	)		(7,574	)		(2,641	)
Asset retirement obligation accretion				278			457			1,003			1,328
Interest and financing costs				9,748			1,481			31,310			3,615
Profit before income tax				76,482			112,808			272,547			300,661
Income tax expense		8		38,152			34,435			233,954			98,965
Profit for the period				38,330			78,373			38,593			201,696
Attributable to:
Shareholders of the Company				36,410			75,845			34,221			190,320
Non-controlling interests				1,920			2,528			4,372			11,376
Profit for the period				38,330			78,373			38,593			201,696
Weighted average number of shares outstanding
Basic				715,083			712,789			714,901			680,121
Diluted				715,364			713,340			715,229			681,222
Earnings per share attributable to shareholders of the Company:
Basic earnings per share				0.05			0.11			0.05			0.28
Diluted earnings per share				0.05			0.11			0.05			0.28

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

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Expressed in thousands of U.S. dollars)

	Three months ended						Nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
		$			$			$			$
Profit for the period		38,330			78,373			38,593			201,696
Other comprehensive loss:
Change in fair value of available-for-sale financial assets		(321	)		(231	)		(1,721	)		(1,368	)
Realized gains on disposal of available-for-sale
financial assets transferred to net income		-			-			(17	)		(24	)
Actuarial losses on defined benefit pension plans		-			-			-			(5,701	)
Total other comprehensive loss for the period		(321	)		(231	)		(1,738	)		(7,093	)
Total comprehensive income for the period		38,009			78,142			36,855			194,603
Attributable to:
Shareholders of the Company		36,089			75,614			32,483			183,227
Non-controlling interests		1,920			2,528			4,372			11,376
Total comprehensive income for the period		38,009			78,142			36,855			194,603

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

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Expressed in thousands of U.S. dollars)

			Three months ended						Nine months ended
			September 30,						September 30,
	Note		2013			2012			2013			2012
				$			$			$			$
Cash flows generated from (used in):
Operating activities
Profit for the period				38,330			78,373			38,593			201,696
Items not affecting cash
Asset retirement obligation accretion				278			457			1,003			1,328
Depreciation and amortization				40,461			26,082			112,809			78,635
Unrealized foreign exchange loss (gain)				(44	)		(446	)		480			(809	)
Deferred income tax expense (recovery)		8		7,388			(42	)		143,836			(6,730	)
Loss (gain) on disposal of assets				(120	)		(23	)		(135	)		423
Loss on investments in associates				1,426			1,375			2,549			3,119
Impairment loss on investment in associates				12,707			-			12,707			-
Gain on marketable securities and other investments				-			-			(21	)		(1,032	)
Share based payments				3,765			4,396			15,933			17,210
Defined benefit pension plan expense				616			638			1,864			1,899
				104,807			110,810			329,618			295,739
Changes in non-cash working capital		12		15,454			20,743			(20,811	)		(121,914	)
				120,261			131,553			308,807			173,825
Investing activities
Net cash received on acquisition of subsidiary		5		-			-			-			18,789
Purchase of property, plant and equipment				(119,055	)		(136,779	)		(336,818	)		(303,891	)
Proceeds from the sale of property, plant and equipment				412			99			604			890
Proceeds on pre-production sales				9,438			17,412			24,666			37,434
Purchase of marketable securities				-			2,152			-			-
Proceeds from the sale of marketable securities				-			-			332			230
Funding of non-registered supplemental retirement plan
investments, net				-			-			-			14,486
Investments in associates				-			(11,947	)		(6,357	)		(15,359	)
Decrease (increase) on investment in term deposits				161,841			-			(59,600	)		-
Decrease (increase) in restricted cash				(17	)		20,240			(12	)		18,571
				52,619			(108,823	)		(377,185	)		(228,850	)
Financing activities
Issuance of common shares for cash				1,945			3,430			3,546			20,261
Dividend paid to non-controlling interests				-			(967	)		-			(2,238	)
Dividend paid to shareholders				(34,708	)		(43,262	)		(84,949	)		(93,142	)
Purchase of treasury stock				-			(691	)		(6,462	)		(6,702	)
Long-term and bank debt proceeds				3,565			-			15,977			50,000
Long-term and bank debt repayments				-			(24,429	)		(10,354	)		(35,516	)
Loan financing costs				-			-			(383	)		-
				(29,198	)		(65,919	)		(82,625	)		(67,337	)
Net increase (decrease) in cash and cash equivalents				143,682			(43,189	)		(151,003	)		(122,362	)
Cash and cash equivalents - beginning of period				522,158			522,158			816,843			522,158
Cash and cash equivalents - end of period				665,840			478,969			665,840			399,796

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

Eldorado Gold Corporation

Unaudited Condensed Consolidated Statements of Changes in Equity

(Expressed in thousands of U.S. dollars)

			Three months ended						Nine months ended
			September 30,						September 30,
	Note		2013			2012			2013			2012
				$			$			$			$
Share capital
Balance beginning of period				5,306,947			5,282,368			5,300,957			2,855,689
Shares issued upon exercise of share options, for cash				1,945			3,430			3,546			20,261
Transfer of contributed surplus on exercise of options				694			4,518			1,683			22,674
Shares issued on acquisition of European Goldfields Ltd.		5		-			-			-			2,380,140
Transfer of contributed surplus on exercise of deferred
phantom units				184			-			3,584			11,552
Balance end of period				5,309,770			5,290,316			5,309,770			5,290,316
Treasury stock
Balance beginning of period				(11,775	)		(7,355	)		(7,445	)		(4,018	)
Purchase of treasury stock				-			(691	)		(6,462	)		(6,702	)
Shares redeemed upon exercise of restricted share units				691			729			2,823			3,403
Balance end of period				(11,084	)		(7,317	)		(11,084	)		(7,317	)
Contributed surplus
Balance beginning of period				71,389			70,444			65,382			30,441
Share based payments				3,685			4,081			16,213			16,231
Shares redeemed upon exercise of restricted share units				(691	)		(729	)		(2,823	)		(3,403	)
Options issued on acquisition of European Goldfields Ltd.		5		-			-			-			31,130
Deferred phantom units granted on acquisition of European
Goldfields Ltd.				-			-			-			29,105
Reversal of portion of non-controlling interest acquired due to buy out				2,911			-			2,911			-
Transfer to share capital on exercise of options and deferred
phantom units				(878	)		(4,518	)		(5,267	)		(34,226	)
Balance end of period				76,416			69,278			76,416			69,278
Accumulated other comprehensive loss
Balance beginning of period				(25,952	)		(16,931	)		(24,535	)		(10,069	)
Other comprehensive loss for the period				(321	)		(231	)		(1,738	)		(7,093	)
Balance end of period				(26,273	)		(17,162	)		(26,273	)		(17,162	)
Retained earnings
Balance beginning of period				542,446			447,311			594,876			382,716
Dividends paid				(34,708	)		(43,262	)		(84,949	)		(93,142	)
Profit attributable to shareholders of the Company				36,410			75,845			34,221			190,320
Balance end of period				544,148			479,894			544,148			479,894
Total equity attributable to shareholders of the Company				5,892,977			5,815,009			5,892,977			5,815,009
Non-controlling interests
Balance beginning of period				286,302			316,029			284,100			56,487
Profit attributable to non-controlling interests				1,920			2,528			4,372			11,376
Dividends declared to non-controlling interests				(7,584	)		-			(7,584	)		(9,399	)
Non-controlling interest acquired from European Goldfields Ltd.		5		(2,911	)		-			(2,911	)		260,093
Non-controlling interest buy out				(250	)		-			(500	)		-
Balance end of period				277,477			318,557			277,477			318,557
Total equity				6,170,454			6,133,566			6,170,454			6,133,566

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

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 and mining company. The Company has operations and ongoing exploration and development projects in Turkey, China, Greece, Brazil and Romania. The Company acquired control of European Goldfields Ltd. (“EGU”) in February 2012, including its producing mine, Stratoni, and development projects, Olympias and Skouries in Greece and Certej in Romania.

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

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, 2012.

The same accounting policies are used in the preparation of these unaudited condensed consolidated interim financial statements, except as included in note 3, 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.

3.  Adoption of new accounting standards and upcoming changes

The following standards and amendments to existing standards have been adopted by the company commencing January 1, 2013:

·   IAS 19 ‘Employee Benefits’ – On June 16, 2011, the International Accounting Standards Board (IASB) published a revised version of IAS 19.  The revised IAS 19 (“IAS 19R”) represents IASB’s effort to improve the accounting for employee retirement benefits.  The revisions include:

-   Requirement to recognize past service costs immediately in net income rather than using the corridor method.

-   Requirement to recognize actuarial gains and losses immediately in other comprehensive income OCI. Previously, companies had the option of recognizing actuarial gains and losses through OCI immediately or via use of the corridor method.

-   Requirement that expected return on plan assets be calculated based on the rate used to discount the defined benefit obligation which is based on high quality bond yields.  Previously, equity returns were incorporated into the expected return on plan assets.

-   Requirement for more disclosure relating to the characteristics and risks of the amounts in the financial statements regarding defined benefit plans, including the timing and uncertainty of the entity’s cash flows.

The adoption of this standard had a nominal impact on the Company’s unaudited condensed interim consolidated financial statements. Therefore comparative periods have not been restated.

·   IFRS 10 ‘Consolidated Financial Statements’ – This IFRS establishes control as the basis for an investor to consolidate its investee; it defines control as an investor’s power over the investee with exposure, or rights, to variable returns from the investee and the ability to affect the investor’s return through its power over the investee. At January 1, 2013, the Company adopted this standard and there was no impact on its unaudited condensed interim consolidated financial statements.

(1)

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 and upcoming changes (continued)

·   IFRS 11 ‘Joint Arrangements’ – This standard replaces the guidance in IAS 31 ‘Interests in Joint Ventures’.  Under IFRS 11, joint arrangements are classified as either joint operations or joint ventures.  Joint ventures entities are now accounted for using the equity method. 

Upon application of IFRS 11, entities which had previously accounted for joint ventures using proportionate consolidation shall collapse the proportionately consolidated net asset value into a single investment balance at the beginning of the earliest period presented.  The investment’s opening balance is tested for impairment in accordance with IAS 28 and IAS 36 ‘Impairment of Assets’.  Any impairment losses are recognized as an adjustment to opening retained earnings at the beginning of the earliest period presented. At January 1, 2013, the Company adopted this standard and there was no impact on its unaudited condensed interim consolidated financial statements.

·   IFRS 12 ‘Disclosure of Interests in Other Entities’ – This IFRS is a new standard that applies to companies with an interest in subsidiaries, joint arrangements, associates or unconsolidated structured entities.  The application of this standard intends to enable users of the financial statements to evaluate the nature of and risks associated with its interests in other entities, and the effects of those interests on its financial position, financial performance and cash flows. Companies are now required to disclose information about significant judgments and assumptions made in determining the control of another entity, the joint control of an arrangement or significant influence over another entity and the type of joint arrangement when the arrangement has been structured through a separate vehicle.  At January 1, 2013, the Company adopted this standard. The adoption did not require any adjustments to its unaudited condensed interim consolidated financial statements but will require extended disclosures at year end.

·   IFRS 13 ‘Fair value measurement’ – This IFRS aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRS. The requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRS. At January 1, 2013, the Company adopted this standard and the required disclosures are included in note 10 of these unaudited condensed interim consolidated financial statements.

·   IFRIC 20 ‘Stripping costs in the production phase of a surface mine’ – This interpretation applies to waste removal costs that are incurred in open pit mining activity during the production phase of the mine.  Recognition of a stripping activity asset requires the asset to be related to an identifiable component of the ore body.  Stripping costs that relate to inventory produced should be accounted for as a current production cost in accordance with IAS 2, ‘Inventories’. Stripping costs that generate a benefit of improved access and meet the definition of an asset should be accounted for as an addition to an existing asset.  Existing stripping costs on the balance sheet at transition that do not relate to a specific ore body should be written off to opening retained earnings. The stripping activity asset shall be depreciated on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity.  At January 1, 2013, the Company adopted this interpretation and there was no impact on its unaudited condensed interim consolidated financial statements.

·   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. IFRIC 21 is effective for annual periods commencing on or after January 1, 2014. The Company is currently evaluating the extent of the impact of adoption of this standard.

(2)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

4.  Critical accounting estimates and judgements

The preparation of 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, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant areas requiring the use of management estimates include assumptions and estimates relating to determining defined proven and probable reserves, value beyond proven and probable reserves, fair values for purposes of purchase price allocations for business acquisitions, asset impairment analyses, asset retirement obligations, share-based payments and warrants, pension benefits, valuation allowances for deferred income tax assets, the provision for income tax liabilities, deferred income taxes and assessing and evaluating contingencies.

Actual results could differ from these estimates.  Outlined below are some of the areas which require management to make estimates and assumptions in determining carrying values.

Purchase price allocation

Business combinations require estimates to be made at the date of acquisition in relation to determining asset and liability fair values and the allocation of the purchase consideration over the fair value of the assets and liabilities.

In respect of mining company acquisitions, such as the acquisition of EGU in February 2012, purchase consideration is typically allocated to the mineral reserves and resources being acquired. The estimate of reserves and resources is subject to assumptions relating to life of the mine and may change when new information becomes available. Changes in reserves and resources as a result of factors such as production costs, recovery rates, grade or reserves or commodity prices could impact depreciation rates, asset carrying values and environmental and restoration provisions. Changes in assumptions over long-term commodity prices, market demand and supply, and economic and regulatory climates could also impact the carrying value of assets, including goodwill.

Estimated recoverable reserves and resources

Mineral reserve and resource estimates are based on various assumptions relating to operating matters, including, with respect to production costs, mining and processing recoveries, cut-off grades, as well as assumptions relating to long-term commodity prices and, in some cases, exchange rates, inflation rates and capital costs. Cost estimates are based on feasibility study estimates or operating history. Estimates are prepared by appropriately qualified persons, but will be impacted by forecasted commodity prices, inflation rates, exchange rates, capital and production costs and recoveries amongst other factors. Estimated recoverable reserves and resources are used to determine the depreciation of property, plant and equipment at operating mine sites, in accounting for deferred stripping costs, in performing impairment testing and for forecasting the timing of the payment of decommissioning and restoration costs. Therefore, changes in the assumptions used could impact the carrying value of assets, depreciation and impairment charges recorded in the income statement and the carrying value of the decommissioning and restoration provision.

Current and deferred taxes

The Company calculates current and deferred tax provisions for each of the jurisdictions in which it operates. Actual amounts of income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the issuance of financial statements. Therefore, profit in subsequent periods will be affected by the amount that estimates differ from the final tax return.

Estimates of recoverability are required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the balance sheet. The Company also evaluates the recoverability of deferred tax assets based on an assessment of the ability to use the underlying future tax deductions before they expire against future taxable income. Deferred tax liabilities arising from temporary differences on investments in subsidiaries, joint ventures and associates are recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and can be controlled.

(3)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

4.  Critical accounting estimates and judgements (continued)

Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management’s estimates of future production and sales volumes, commodity prices, reserves, operating costs, decommissioning and restoration costs, capital expenditures, dividends and other capital management transactions.

Judgement is also required in the application of income tax legislation. These estimates and judgments are subject to risk and uncertainty and could result in an adjustment to current and deferred tax provisions and a corresponding credit or debit to profit.

5.  Acquisition of European Goldfields Ltd.

On February 24, 2012 the Company acquired 100% of the issued and outstanding shares of EGU.  Under the terms of the Arrangement former EGU shareholders received 0.85 of an Eldorado common share and C$0.0001 in cash for each EGU share. Eldorado issued 157,959,316 common shares pursuant to the Arrangement.  EGU holds a 95% stake in the Kassandra Mines district in Greece, which is comprised of the Stratoni Mine, and the Olympias and Skouries development projects, and an 80% stake in the Certej development project in Romania.

The Company acquired EGU to increase its presence in the Aegean region and leverage local operating knowledge and expertise.

The goodwill of $473,782 resulting from the acquisition arises mainly on the recognition of deferred income tax liabilities and non-controlling interests and represents, among other things, the exploration potential within the assets acquired and future variability in the price of minerals. None of the goodwill is deductible for tax purposes.

In April 2007, Hellas Gold (“Hellas”), a subsidiary of EGU, 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 the Stratoni mine 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 of $57.5 million in cash, plus a payment per ounce of payable silver equal to the lesser of $3.90 and the prevailing market price per ounce calculated, due and payable at the time of delivery. The expected cash flows associated with the sale of the silver to Silver Wheaton at a price lower than market price have been reflected in the fair value of the mining interest recorded upon acquisition of EGU. The Company has presented the value of any expected future cash flows from the sale of any future silver production to Silver Wheaton as part of the mining interest, as the Company did not receive any of the original upfront payment. Further, the Company does not believe that the agreement to sell to Silver Wheaton meets the definition of an onerous contract or other liability as the obligation only arises upon production of the silver.

(4)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

5.  Acquisition of European Goldfields Ltd. (continued)

The allocation of the purchase price is as follows:

Purchase price:
157,959,316 common shares of shares of Eldorado at C$15.05/share	$	2,380,140
4,713,248 replacement options		31,130
1,931,542 equity settled deferred phantom units		29,105
Cash consideration		19
Total Consideration	$	2,440,394
Net assets acquired:
Cash	$	18,808
Accounts receivable		20,844
Inventory		9,689
Other assets		9,232
Mining interests		2,745,440
Goodwill		473,782
Accounts payable		(71,944	)
Other liabilities		(45,457	)
Deferred income taxes		(495,744	)
Non-controlling interest		(224,256	)
	$	2,440,394

The purchase price allocation was finalized as at March 31, 2013. There were no changes from what was reported in the Company’s annual financial statements for the year ended December 31, 2012.

The fair value of the common shares and replacement options issued and the equity settled deferred phantom units (“DPUs”) as part of the consideration paid for EGU was based on the closing share price on February 24, 2012 on the Toronto Stock Exchange. The value of the replacement options was calculated using the Black-Scholes model.  The following inputs were used to value the replacement options:

Risk-free interest rate		1.28	%
Expected volatility (range)		39% – 44	%
Expected life (range)	0.7 – 1.7 years
Expected dividends per share	Cdn $0.09
Forfeiture rate		0	%

Acquisition related costs of $552 have been charged to transaction costs in the unaudited condensed consolidated income statement for the three months ended September 30, 2012 (2012 YTD – $20,005).

The unaudited condensed consolidated financial statements for the period ended September 30, 2012 include EGU’s results from February 24, 2012 to September 30, 2012. The revenue included in the unaudited condensed consolidated income statement for the period from February 24, 2012 to September 30, 2012 contributed by EGU was $34,358.  This was from the sales of zinc, lead and silver concentrates produced at the Stratoni Mine in Greece. The net loss before tax was $18,776.

Had EGU been consolidated from January 1, 2012, the unaudited condensed consolidated income statement for the period ended September 30, 2012 would include revenue of $42,136 and a net loss before tax of $41,820 from EGU.

Eldorado received net cash of $18,789 as a result of the EGU transaction. This net increase of cash was a result of an acquired cash balance of $18,808 less cash consideration of $19.

(5)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

6.   Impairment on investment in associates

During the quarter ended September 30, 2013 the Company recorded an impairment loss on its investment in Nordic Mines in the amount of $12,707 due to the decline in fair value of the investment.

7.   Debt

	September 30, 2013		December 31, 2012
Current:	$		$
Jinfeng China Merchant Bank (“CMB”) working capital loan (a)		16,265		-
Eastern Dragon HSBC revolving loan facility (b)		-		10,341
		16,265		10,341
Non-current:
Senior notes  (c)		584,519		582,974
		600,784		593,315

(a) Jinfeng CMB working capital loan

On January 16, 2013, Jinfeng entered into a RMB 100.0 million ($16,265) 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 has a term of up to one year, from January 16, 2013 to January 14, 2014. The facility is unsecured.

As at September 30, 2013, Jinfeng has drawn down the full amount of RMB 100.0 million ($16,265) under this facility, in three tranches, 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%.

(b) Eastern Dragon HSBC revolving loan facility

In March 2013, Eastern Dragon re-paid the full amount of this loan.

(c) 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 $15,481 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 September 30, 2013 was $581.3 million.

(d) 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 ($1,952) entrusted loan agreement, which has been increased to RMB 720.0 million ($117,111) 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 September 30, 2013 was 4.59%.

As at September 30, 2013, RMB 629.0 million ($102,310) had been drawn under the entrusted loan. Subsequent to September 30, 2013, RMB 1.5 million ($244) was drawn under this loan.

The entrusted loan has been recorded on a net settlement basis.

(6)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

8.  Income tax expense and deferred taxes

On January 11, 2013 the government of Greece enacted legislation increasing the corporate income tax rate from 20% to 26%, effective January 1, 2013.  As required by IAS 12, “Income Taxes”, when an income tax rate has changed the deferred tax liability must be adjusted to reflect the change in the income tax rate.  This non-cash adjustment is required to be charged to deferred income tax expense. The Company recorded the adjustment during the quarter ended March 31, 2013 increasing its deferred tax liability and deferred tax expense by $125.2 million.

9.  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 September 30, 2013 there were no non-voting common shares outstanding (December 31, 2012 – none).

Voting common shares	Number of Shares		Total $
At January 1, 2013		714,344,476		5,300,957
Shares issued upon exercise of share options, for cash		665,484		3,546
Estimated fair value of share options exercised		-		1,683
Shares issued for deferred phantom units		449,062		3,584
At September 30, 2013		715,459,022		5,309,770

10.  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:

	2013
	Weighted average  exercise price Cdn$		Number of options
At January 1,		13.68		15,074,444
Granted		10.28		5,792,130
Exercised		5.44		(665,484	)
Forfeited		13.63		(2,289,587	)
At September 30,		12.89		17,911,503

At September 30, 2013, 12,347,754 share options (September 30, 2012 – 10,547,424) with a weighted average exercise price of Cdn$13.42 (September 30, 2012 – Cdn$12.99) had vested and were exercisable.

Share based compensation expense related to share options for the quarter ended September 30, 2013 was $2,551 (YTD – $10,766).

 (b) Restricted share unit plan

A total of 657,151 restricted share units (“RSUs”) at a grant-date fair value of Cdn$10.43 per unit were granted during the nine month period ended September 30, 2013 under the Company’s RSU plan and 219,050 were exercisable as at September 30, 2013.

(7)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

10.Share-based payments (continued)

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.

A summary of the status of the RSU plan and changes during the period ended September 30, 2013 is as follows:

	Total RSUs
Balance at December 31, 2012		465,832
RSUs Granted		657,151
Redeemed		(324,616	)
Forfeited		-
Balance at September 30, 2013		798,367

As at September 30, 2013, 798,367 common shares purchased by the Company remain held in trust in connection with this plan. At the end of the period, 203,329 RSUs were 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 quarter ended September 30, 2013 was $1,134 (YTD – $5,447).

(c) Deferred share units plan

At September 30, 2013, 199,034 deferred share units (“DSUs”) were outstanding with a value of $1,425, which is included in accounts payable and accrued liabilities.

Compensation expense related to the DSUs was $80 for the quarter ended September 30, 2013 (YTD income – $280).

11.  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 – Inputs 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).

Assets and liabilities measured at fair value as at September 30, 2013 include:

	Balance at September 30, 2013		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable inputs
		$		$		$		$
			(Level 1)		(Level 2)		(Level 3)
Assets
Available-for-sale financial assets
Marketable securities		3,156		3,156		-		-
Non-current assets
Investments in associates - Nordic Mines (note 6)		1,213		1,213		-		-
Total assets		4,369		4,369		-		-

(8)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

11. Fair value of financial instruments (continued)

No liabilities are measured at fair value on a recurring basis as at September 30, 2013.

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.

The following table provides the carrying value and the fair value of financial instruments at September 30, 2013 and December 31, 2012:

	September 30, 2013				December 31, 2012
	Carrying amount		Fair value		Carrying amount		Fair value
		$		$		$		$
Financial Assets
Available-for-sale
Marketable securities		3,156		3,156		1,988		1,988
Loans and receivables
Cash and cash equivalents		665,840		665,840		816,843		816,843
Term depostis		59,600		59,600		-		-
Restricted cash		261		261		241		241
Accounts receivable and other		82,809		82,809		105,600		105,600
Restricted assets and other		19,631		19,631		17,001		17,001
Financial Liabilities
Accounts payable and accrued liabilities		215,514		215,514		224,567		224,567
Debt		600,784		597,515		593,315		622,341

12.  Supplementary cash flow information

	Three months ended September 30,					Nine months ended September 30,
		2013 $		2012 $			2013 $		2012 $
Changes in non-cash working capital
Accounts receivable and other		16,800		(4,239	)		11,109		(2,981	)
Inventories		(4,909	)	5,451			(6,815	)	(27,912	)
Accounts payable and accrued liabilities		3,563		19,531			(25,105	)	(91,021	)
Total		15,454		20,743			(20,811	)	(121,914	)
Supplementary cash flow information
Income taxes paid		20,533		18,939			77,802		81,576
Interest paid		348		741			17,704		3,279
Non-cash investing and financing activities
Shares, options and DPUs issued on acquisition of European Goldfields Ltd.		-		-			-		2,440,375

(9)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

13.  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 September 30, 2013, Eldorado had six reportable segments based on the geographical location of mining and exploration and development activities.

13.1  Geographical segments

Geographically, the operating segments are identified by country and by operating mine or mine under construction as follows:

·   The Brazil reporting segment includes the Vila Nova mine, development activities of Tocantinzinho and exploration activities in Brazil.

·   The Turkey reporting segment 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 development project and exploration activities in China.

·   The Greece reporting segment includes the Stratoni mine and the Olympias, Skouries and Perama Hill development projects and exploration activities in Greece.

·   The Romania reporting segment includes the Certej development 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.

For the three months ended September 30, 2013
	Turkey		China		Brazil		Greece			Romania		Other			Total
		$		$		$		$			$		$			$
Information about profit and loss
Metal sales to external customers		150,160		117,762		9,414		9,918			-		-			287,254
Production costs		45,461		61,383		7,297		6,612			-		-			120,753
Depreciation		10,081		26,510		1,174		2,282			-		414			40,461
Gross profit (loss)		94,618		29,869		943		1,024			-		(414	)		126,040
Other material items of income and expense
Exploration expenses		5,370		1,484		1,395		274			154		1,189			9,866
Income tax expense (recovery)		32,569		9,067		195		(3,679	)		-		-			38,152
Additions to property, plant and equipment during the period		42,429		27,928		1,088		41,832			5,597		771			119,645

(10)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

13.  Segment information (continued)

For the three months ended September 30, 2012
	Turkey $		China $		Brazil $			Greece $			Romania $		Other $			Total $
Information about profit and loss
Metal sales to external customers		141,031		118,990		7,292			14,526		-		-				281,839
Production costs		31,606		57,722		6,954			11,333		-		-				107,615
Depreciation		3,550		18,969		1,094			1,845		-			624			26,082
Gross profit (loss)		105,875		42,299		(756	)		1,348		-			(624	)		148,142
Other material items of income and expense
Exploration expenses		2,390		4,578		3,215			(124	)		84		987			11,130
Income tax expense (recovery)		23,511		10,815		171			(64	)		-		2			34,435
Additions to property, plant and equipment during the period		71,068		36,807		4,538			32,853			2,125		(3,786	)		143,605

For the nine months ended September 30, 2013

	Turkey $		China $		Brazil $		Greece $			Romania $		Other $			Total $
Information about profit and loss
Metal sales to external customers		489,756		333,230		33,254		36,011		-		-				892,251
Production costs		145,828		167,466		21,858		32,102		-			-			367,254
Depreciation		32,161		68,095		3,281		7,859		-			1,413			112,809
Gross profit (loss)		311,767		97,669		8,115		(3,950	)	-			(1,413	)		412,188
Other material items of income and expense
Exploration expenses		10,335		4,458		5,876		1,188			637		5,236			27,730
Income tax expense		85,367		24,503		1,899		122,022			108		55			233,954
Additions to property, plant and equipment during the period		137,920		77,562		8,612		99,247			17,440		1,649			342,430
Information about assets and liabilities
Property, plant and equipment		809,244		1,965,756		202,524		2,490,805			610,475		2,373			6,081,177
Goodwill		-		365,928		-		473,782			-		-			839,710
		809,244		2,331,684		202,524		2,964,587			610,475		2,373			6,920,887
Debt		-		16,265		-		-			-		584,519			600,784

(11)

Eldorado Gold Corporation

Notes to the unaudited condensed consolidated financial statements

(Expressed in thousands of U.S. dollars, unless otherwise stated)

13.  Segment information (continued)

For the nine months ended September 30, 2012

	Turkey $		China $		Brazil $		Greece $			Romania $		Other $			Total $
Information about profit and loss
Metal sales to external customers		353,256		380,567		29,398		34,358		-		-				797,579
Production costs		80,103		164,591		23,337		25,309		-		-				293,340
Depreciation		8,949		60,465		3,241		4,522		-			1,458			78,635
Gross profit (loss)		264,204		155,511		2,820		4,527		-			(1,458	)		425,604
Other material items of income and expense
Exploration expenses		5,793		11,616		8,572		-			84		3,834			29,899
Income taxexpense (recovery)		57,756		40,829		1,006		(640	)		-		14			98,965
Additions to property, plant and equipment during the period		144,787		80,113		15,449		55,807			4,680		1,157			301,993

For the year ended December 31, 2012
	Turkey		China		Brazil		Greece		Romania		Other		Total
		$		$		$		$		$		$		$
Information about assets and liabilities
Property, plant and equipment		699,182		1,952,545		198,586		2,422,868		593,210		2,351		5,868,742
Goodwill		-		365,928		-		473,782		-		-		839,710
		699,182		2,318,473		198,586		2,896,650		593,210		2,351		6,708,452
Debt		-		10,341		-		-		-		582,974		593,315

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.

13.2  Economic dependence

At September 30, 2013, 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	Zijin Refinery
White Mountain Mine	Refinery of Shandong Humon Smelting Co. Ltd.

13.3  Seasonality/cyclicality of operations

Management does not consider operations to be of a significant seasonal or cyclical nature.

14.  Events occurring after the reporting date

On October 30, 2013, Eldorado announced that it will acquire, through one of its subsidiaries and by way of a friendly cash takeover, all of the outstanding shares of Glory Resources Limited that are not already owned or controlled by the Company for total consideration of approximately A$30.5 million. Eldorado currently owns 19.9% of the shares in Glory. Eldorado also proposed to acquire all the issued options of Glory for total consideration of approximately A$1.8 million and to settle Glory's deferred obligations in the Sapes Gold Project to Cape Lambert Resources Limited for A$6.5 million.

(12)