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 August, 2008

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, 2008	ELDORADO GOLD CORPORATION

/s/ Dawn Moss

Dawn Moss, Corporate Secretary	

Exhibits
 
99.1    News Release dated August 1, 2008  

NEWS RELEASE
ELD No. 08-22
TSX: ELD  AMEX: EGO
August 1, 2008

Q2 2008 Financial and Operating Results
(all figures in United States dollars, unless otherwise noted)

VANCOUVER, BC – Paul N. Wright, President and 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 second quarter ended June 30, 2008. "This was the first full quarter of production from our restarted Kişladağ mine, and our operating and financial results reflect our strong performance. We benefitted from low cash costs, increased production levels and high selling prices as compared to the first quarter of the year. We also commenced construction at our Efemçukuru gold mine in Turkey and continued construction at the Vila Nova iron ore mine in Brazil.”

Q2 2008 Highlights

·
Produced 87,380 ounces of gold from our operations at an average cash cost of $229 per ounce
·
Sold 88,610 ounces of gold from our Tanjianshan and Kişladağ mines at a realized average price of $904 per ounce
·
Reported earnings of $0.07 per share
·
Commenced construction of our Efemçukuru gold mine in Turkey
·
Continued construction of our Vila Nova iron ore mine in Brazil
·
Released $10.8 million in restricted cash as a result of loan repayments from our Tanjianshan gold mine in China.

On July 3, we announced that we were successful in our bid to acquire all outstanding shares of Frontier Pacific Mining Corporation.  On July 9 we announced an agreement with Brazauro Resources to earn an interest in the Tocantinzinho project in Brazil and on July 30 we announced we entered into a letter agreement with AngloGold Ashanti to sell the São Bento mine.

Financial Results
 Our consolidated net income for the second quarter of 2008 was $25.2 million or $0.07 per share, compared with net income of $26.7 million or $0.08 per share in the second quarter of 2007. In the second quarter of 2008, we sold 88,610 ounces of gold at an average price of $904 per ounce, compared to 112,702 ounces at an average price of $664 per ounce in the second quarter of 2007.

Revenues increased 7% over the same period in 2007 due to increases in selling prices, partially offset by lower ounces sold. Production was higher in the second quarter of 2007 due to ounces produced during the plant decommissioning at São Bento as well as a one-time production increase of 12,575 ounces at Kişladağ related to cleaning the electro-winning cathodes.

Operating Performance

Kişladağ
 Our Kişladağ mine benefitted from its first full quarter of production since re-opening on March 6, 2008. During the quarter, we placed 2,092,957 tonnes of ore on the leach pad at a grade of 1.47 grams per tonne of gold. We produced 55,490 ounces of gold at a cash cost of $230 per ounce during the quarter.  

In our transition to making Kişladağ an owner-operated mine, we completed the assembly of two Hitachi hydraulic shovels as well as ten Caterpillar haul trucks and ancillary equipment, and commenced waste mining activities with the fleet

Tanjianshan
 We produced 31,890 ounces of gold at a cash cost of $229 per ounce in the second quarter. We spent $10.3 million on capital expenditures, primarily relating to construction of the sulphide ore processing project, which we expect to complete by the fourth quarter of 2008. Mining has now shifted to the Jinlonggou pit.

Development

 Efemçukuru
 We began construction work at Efemçukuru, spending $2.8 million during the quarter.  Activities during the quarter focused on site clearing and preparation along with engineering work designed to finalize process flow sheets and allow orders to be placed for long lead-time items.

Vila Nova Iron Ore
 We are anticipating start-up of our Vila Nova iron ore project late in the fourth quarter of 2008. Engineering work on the design and detailing of the ore processing plant is nearing completion, and we have placed orders for the major plant and mobile mining equipment and have begun staffing the project. We are continuing with stripping and earthwork preparation in the areas of the pit, process plant and tailings dam and we have begun the civil foundation installation for the crushers and screen plant.

Exploration
 Exploration expense for the second quarter was $2.7 million (Q2 2007 – $2.9 million); exploration activities focused on our properties in Turkey, Brazil and China.

Exploration – Turkey
 Our reconnaissance work during the quarter focused on Zonguldak in the western Pontides and Sayacik, a volcanic center adjacent to Kişladağ.  At Efemçukuru we are finishing a large soil sampling program and preparing for a drill program targeting the North Ore Shoot.  

At Kişladağ we completed 3,775 meters of diamond drilling and 2,598 meters of reverse circulation drilling.  Resource drilling at Kişladağ  is targeting inferred mineralization discovered during last years exploration program and the continuation of known mineralization on the western edge of the deposit.

Exploration – Brazil
 Exploration in Brazil consisted of support for the Vila Nova iron ore project and project evaluations in various prospective areas.

Exploration – China
 We drilled 6,879 meters in 39 holes, primarily at Xijingou (south of the Jinlongou pit limit) and Qinlongtan South, where the target horizon is similar to the mineralization found at the main Qinlongtan deposit. In the third quarter, we will begin drilling in the Qinlongtan deep zone, targeting high grade ore mined at QLT and extending beneath the final pit floor.

Acquisitions
On July 3, we announced that we were successful in our bid to acquire all outstanding shares of Frontier Pacific Mining Corporation. Frontier Pacific owns the Perama Hill gold project in northeastern Greece, and the acquisition will accelerate Eldorado’s growth strategy and strengthen its competitive position in southeastern Europe.

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

ON BEHALF OF
ELDORADO GOLD CORPORATION

“Paul N. Wright”

Paul N. Wright
President and Chief Executive Officer

Eldorado will host a conference call Friday, August 1, 2008 to discuss the 2008 Second Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT).  You may participate in the conference call by dialing 416-641-6127 in Toronto or 1-866-226-1799 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold.  The call will be available on Eldorado’s website. www.eldoradogold.com .  A replay of the call will be available until August 8, 2008 by dialing 416-695-5800 in Toronto or 1-800-408-3053 free in North America and entering the Pass code: 3266194. 

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995, and forward looking statements or information within the meaning of the Securities Act (Ontario).  Such forward looking statements or information include, but are not limited to statements or information with respect to  unknown risks, 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 or information 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 or information. 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 “Forward Looking Statements and Risk Factors” in the Company’s Annual Information Form and Form 40-F dated March 31, 2008.  Forward-looking statements herein include statements regarding the expectations and beliefs of management.  Such factors included, 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; risks from litigation; 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 “Risk Factors” in the Company’s Annual Information Form and Form 40-F dated March 31, 2008.  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
in Canada and the U.S.

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: laurelw@eldoradogold.com

                                        PRODUCTION HIGHLIGHTS 1

						
 	First
Quarter
2008	Second
Quarter
2008	Second
Quarter
2007	First
Six Months
2008	First
Six Months 2007	

Gold Production	 	 	 	 	 	
  Total Ounces Produced	67,234	87,380	98,970	154,614	187,750	
  Commercial Production	67,234	87,380	98,970	154,614	175,258	
  Cash Operating Cost ($/oz) 1, 4	213	229	259	222	242	
  Total Cash Cost ($/oz) 2,4	268	259	287	263	263	
  Total Production Cost ($/oz) 3,4	393	293	332	337	305	
  Realized Price ($/oz - sold)	933	904	664	917	658	

Kişladağ Mine, Turkey	 	 	 	 	 	
  Commercial Production	27,228	55,490	68,095	82,718	111,696	
  Tonnes to Pad	529,480	2,092,957	1,872,691	2,622,437	3,722,021	
  Grade (grams / tonne)	1.18	1.47	1.32	1.41	1.30	
  Cash Operating Cost ($/oz) 4	217	230	187	225	189	
  Total Cash Cost ($/oz) 2,4	218	232	190	228	192	
  Total Production Cost ($/oz) 3,4	246	273	221	264	223	

Tanjianshan Mine, China 5	 	 	 	 	 	
  Total Ounces Produced	40,006	31,890	29,135	71,896	68,387	
  Commercial Production	40,006	31,890	29,135	71,896	55,895	
  Tonnes Milled	223,395	193,035	237,909	416,430	380,768	
  Grade (grams / tonne)	6.83	6.04	4.41	6.46	5.44	
  Cash Operating Cost ($/oz) 4	211	229	440	219	353	
  Total Cash Cost ($/oz) 2,4	302	305	522	303	411	
  Total Production Cost ($/oz) 3,4	493	327	616	420	491	

São Bento Mine, Brazil	 	 	 	 	 	
  Commercial Production	-	-	1,740	-	7,667	
  Tonnes Milled	-	-	-	-	20,069	
  Grade (grams / tonne)	-	-	-	-	11.71	
  Cash Operating Cost ($/oz) 4	-	-	80	-	208	
  Total Cash Cost ($/oz) 2,4	-	-	132	-	224	
  Total Production Cost ($/oz) 3,4	-	-	(50)	-	152	

1
Cost figures calculated in accordance with the Gold Institute Standard.
2
Cash Operating Costs, plus royalties and the cost of off-site administration.
3
Total Cash Costs, plus foreign exchange gain or loss, depreciation, amortization and reclamation expenses.
4
Cash operating, total cash and total production costs are non-GAAP measures.  See the section "Non-GAAP Measures" of this MD&A.
5
The Tanjianshan gold mine commenced commercial production on February 1, 2007.

Eldorado Gold Corporation
Unaudited Consolidated Balance Sheets

(Expressed in thousands of US dollars)

					
 	 	June 30,	 	December 31,	
		2008		2007	
		$		$	
     Assets	 	 	 	 	
Current assets	 	 	 	 	
Cash and cash equivalents	 	  96,376 	 	  46,014 	
Restricted cash (note 3)	 	  60,000 	 	  65,710 	
Marketable securities	 	  5,636 	 	  1,615 	
Accounts receivable and other	 	  26,457 	 	  28,720 	
Inventories	 	  61,797 	 	  57,525 	
Derivative contract (note 8)	 	  1,478 	 	  2,956 	
Future income taxes	 	  - 	 	  959 	
 	 	  251,744 	 	  203,499 	
Restricted cash (note 3)	 	  8,300 	 	  8,300 	
Mining interests	 	  404,428 	 	  377,705 	
Other	 	  2,238 	 	  2,238 	
 	 	  666,710 	 	  591,742 	
 	 	 	 	 	
Liabilities	 	 	 	 	
Current liabilities	 	 	 	 	
Accounts payable and accrued liabilities	 	  54,446 	 	  39,943 	
Debt - current	 	  60,380 	 	  65,422 	
Current portion of asset retirement obligations	 	  1,151 	 	  509 	
Current portion of future income taxes	 	  494 	 	  - 	
 	 	  116,471 	 	  105,874 	
Debt - long-term	 	  139 	 	  139 	
Contractual severance obligations	 	  1,220 	 	  1,479 	
Asset retirement obligations	 	  6,517 	 	  8,290 	
Future income taxes	 	  30,480 	 	  26,781 	
 	 	  154,827 	 	  142,563 	
 	 	 	 	 	
Non-controlling interest	 	  5,007 	 	  - 	
 	 	 	 	 	
Shareholders* Equity	 	 	 	 	
Share capital (note 4(a))	 	  760,219 	 	  753,058 	
Contributed surplus (note 4(b))	 	  16,165 	 	  13,083 	
Accumulated other comprehensive income (loss) (note 4(c))	 	  1,776 	 	  214 	
Deficit	 	  (271,284)	 	  (317,176)	
 	 	  506,876 	 	  449,179 	
 	 	  666,710 	 	  591,742 	
 	 	 	 	 	
Subsequent events (note 10)	 	 	 	 	

Eldorado Gold Corporation
Unaudited Consolidated Statements of Operations and Deficit
For the period ended June 30,

(Expressed in thousands of US dollars except per share amounts)

										
 	 	Three months ended	 	Six months ended	 	
 	 	2008	 	2007	 	2008	 	2007	 	
		$		$	 	$		$		
Revenue	 	 	 	 	 	 	 	 	 	
Gold sales	 	  80,059 	 	  74,876 	 	  148,734 	 	  116,424 	 	
Interest and other income	 	  2,469 	 	  1,786 	 	  6,313 	 	  3,725 	 	
 	 	  82,528 	 	  76,662 	 	  155,047 	 	  120,149 	 	
 	 	 	 	 	 	 	 	 	 	
Expenses	 	 	 	 	 	 	 	 	 	
Operating costs	 	  22,977 	 	  31,642 	 	  42,796 	 	  46,708 	 	
Depletion, depreciation and amortization	 	  3,512 	 	  4,645 	 	  12,336 	 	  7,754 	 	
General and administrative	 	  9,937 	 	  4,618 	 	  19,731 	 	  12,040 	 	
Exploration	 	  2,672 	 	  2,865 	 	  4,863 	 	  5,661 	 	
Mine standby costs	 	  - 	 	  - 	 	  2,433 	 	  - 	 	
Accretion of asset retirement obligation	 	  133 	 	  80 	 	  266 	 	  160 	 	
Foreign exchange gain	 	  (1,686)	 	  (2,089)	 	  (832)	 	  (2,654)	 	
Gain on disposal of assets	 	  - 	 	  (187)	 	  (24)	 	  (3,664)	 	
Interest and financing costs	 	  842 	 	  1,120 	 	  1,870 	 	  1,896 	 	
Unrealized loss on derivative contract	 	  739 	 	  - 	 	  1,478 	 	  - 	 	
 	 	  39,126 	 	  42,694 	 	  84,917 	 	  67,901 	 	
Income before income taxes and other items	 	  43,402 	 	  33,968 	 	  70,130 	 	  52,248 	 	
 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	 	 	 	 	 	 	 	
Current	 	  (8,397)	 	  (1,042)	 	  (14,079)	 	  (1,064)	 	
Future	 	  (4,843)	 	  (6,195)	 	  (5,152)	 	  (11,871)	 	
 	 	  (13,240)	 	  (7,237)	 	  (19,231)	 	  (12,935)	 	
 	 	 	 	 	 	 	 	 	 	
Non-controlling interest	 	  (5,007)	 	  - 	 	  (5,007)	 	  - 	 	
 	 	 	 	 	 	 	 	 	 	
Net income for the period	 	  25,155 	 	  26,731 	 	  45,892 	 	  39,313 	 	
 	 	 	 	 	 	 	 	 	 	
Deficit, beginning of period	 	  (296,439)	 	  (340,888)	 	  (317,176)	 	  (353,470)	 	
Deficit, end of period	 	  (271,284)	 	  (314,157)	 	  (271,284)	  - 	  (314,157)	 	
 	 	 	 	 	 	 	 	 	 	
Weighted average number of shares	 	 	 	 	 	 	 	 	 	
     outstanding	 	 	 	 	 	 	 	 	 	
Basic	 	  345,051 	 	  343,220 	 	  344,827 	 	  342,294 	 	
Diluted		  346,822 	 	  344,915 	 	  346,230 	 	  344,044 	 	
 	 	 	 	 	 	 	 	 	 	
Earnings per share	 	 	 	 	 	 	 	 	 	
Basic income per share - US$	 	  0.07 	 	  0.08 	 	  0.13 	 	  0.11 	 	
Diluted income per share - US$	 	  0.07 	 	  0.08 	 	  0.13 	 	  0.11 	 	
 	 	 	 	 	 	 	 	 	 	
Basic income per share - Cdn$	 	  0.07 	 	  0.09 	 	  0.13 	 	  0.13 	 	
Diluted income per share - Cdn$	 	  0.07 	 	  0.09 	 	  0.13 	 	  0.13 	 	

 	 	 	 	 	 	 	 	 	 	

Eldorado Gold Corporation
Unaudited Consolidated Statements of Cash Flows
For the period ended June 30,

(Expressed in thousands of US dollars, unless otherwise stated)

									
 	Three months ended	 	Six months ended	 	
 	2008	 	2007	 	2008	 	2007	 	
	$	 	$	 	$	 	$	 	
Cash flows generated from (used in):	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Operating activities	 	 	 	 	 	 	 	 	
Net earnings for the period	  25,155 	 	  26,731 	 	  45,892 	 	  39,313 	 	
Items not affecting cash	 	 	 	 	 	 	 	 	
Accretion of asset retirement obligation	  133 	 	  80 	 	  266 	 	  160 	 	
Contractual severance expense	  - 	 	  - 	 	  - 	 	  598 	 	
Depletion, depreciation and amortization	  3,512 	 	  4,646 	 	  12,336 	 	  7,754 	 	
Unrealized foreign exchange loss	  - 	 	  218 	 	  418 	 	  365 	 	
Future income taxes	  4,843 	 	  6,195 	 	  5,152 	 	  11,871 	 	
Gain on disposal of assets	  - 	 	  (187)	 	  (24)	 	  (3,664)	 	
Imputed interest and financing costs	  9 	 	  17 	 	  19 	 	  34 	 	
Stock-based compensation	  2,961 	 	  1,136 	 	  7,843 	 	  4,230 	 	
Non-controlling interest	  5,007 	 	  - 	 	  5,007 	 	  - 	 	
Unrealized loss on derivative contract	  739 	 	  - 	 	  1,478 	 	  - 	 	
 	  42,359 	 	  38,836 	 	  78,387 	 	  60,661 	 	
Property reclamation payments	  (745)	 	  (1,459)	 	  (1,397)	 	  (2,642)	 	
Contractual severance payments	  (28)	 	  (298)	 	  (259)	 	  (1,910)	 	
Changes in non-cash working capital (note 6)	  (2,255)	 	  3,880 	 	  9,643 	 	  (2,457)	 	
 	  39,331 	 	  40,959 	 	  86,374 	 	  53,652 	 	
 	 	 	 	 	 	 	 	 	
Investing activities	 	 	 	 	 	 	 	 	
Mining interests	 	 	 	 	 	 	 	 	
Capital expenditures	  (19,482)	 	  (20,088)	 	  (29,778)	 	  (34,028)	 	
Sales proceeds	  219 	 	  659 	 	  440 	 	  1,362 	 	
Available-for-sale securities	 	 	 	 	 	 	 	 	
Purchases	  (651)	 	  (380)	 	  (2,443)	 	  (380)	 	
Disposals	  - 	 	  - 	 	  263 	 	  - 	 	
Pre-production gold sales capitalized in mining interests	  - 	 	  - 	 	  - 	 	  10,052 	 	
Non-producing properties under development	  (7,570)	 	  (3,458)	 	  (9,988)	 	  (6,417)	 	
Value added taxes recoverable on mining interests	  - 	 	  2,384 	 	  - 	 	  3,461 	 	
Restricted cash	  11,010 	 	  3,178 	 	  5,710 	 	  (4,053)	 	
 	  (16,474)	 	  (17,705)	 	  (35,796)	 	  (30,003)	 	
 	 	 	 	 	 	 	 	 	
Financing activities	 	 	 	 	 	 	 	 	
Capital stock	 	 	 	 	 	 	 	 	
Issuance of common shares for cash	  4,050 	 	  6,675 	 	  5,263 	 	  7,497 	 	
Debt	 	 	 	 	 	 	 	 	
Proceeds	  - 	 	  - 	 	  5,000 	 	  - 	 	
Repayment	  (10,479)	 	  (15,229)	 	  (10,479)	 	  (15,229)	 	
 	  (6,429)	 	  (8,554)	 	  (216)	 	  (7,732)	 	
Net increase in cash and cash equivalents	  16,428 	 	  14,700 	 	  50,362 	 	  15,917 	 	
Cash and cash equivalents - beginning of period	  79,948 	 	  61,184 	 	  46,014 	 	  59,967 	 	
Cash and cash equivalents - end of period	  96,376 	 	  75,884 	 	  96,376 	 	  75,884 	 	
 	 	 	 	 	 	 	 	 	
Supplementary cash flow information (note 6)	 	 	 	 	 	 	 	 	

 

Eldorado Gold Corporation
Unaudited Consolidated Statements of Comprehensive Income
For the period ended June 30,

(Expressed in thousands of US dollars, unless otherwise stated)

								
 	 Three months ended	 	 Six months ended	
 	 2008	 	 2007	 	 2008	 	 2007	
 	 $	 	 $	 	 $	 	 $	
 	 	 	 	 	 	 	 	
Net earnings for the period ended June 30,	25,155		26,731		45,892		39,313	
 								
Other comprehensive income (loss)								
Net unrealized gains (losses) on available-for-sale								
            Investment (note 4(c))	2,083		(48)		1,562		(9)	
 								
Comprehensive income for the period ended June 30,	27,238		26,683		47,454		39,304	

 

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

1.
Nature of operations and basis of presentation
Eldorado Gold Corporation (“Eldorado”, “we” or “the Company”) is a gold exploration, development, mining and production company. We have ongoing exploration and development projects in Brazil, China and Turkey. On July 1, 2006, Eldorado began production in Turkey and on February 1, 2007, Eldorado began production in China. We suspended production at the Kişladağ mine in Turkey in August 2007 as a result of a court injunction and the mine remained shut down throughout the remainder of 2007. The court injunction was removed in February 2008 and the mine restarted production on March 6, 2008. We ceased production operations at the São Bento mine in Brazil in the second quarter of 2007, and the mine is now in reclamation.
With the exception of changes in accounting policies as outlined in note 2 below, these unaudited interim consolidated financial statements have been prepared by Eldorado in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”) consistent with those used to prepare Eldorado’s audited consolidated financial statements for the year ended December 31, 2007. As these unaudited interim consolidated financial statements do not contain all of the disclosures required by Canadian GAAP, they should be read in conjunction with the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2007.
In the opinion of management, Eldorado has made all adjustments necessary to present fairly the consolidated financial position as at June 30, 2008 and the consolidated results of operations, cash flows and comprehensive income for the three- and six-month periods ended. These interim results are not necessarily indicative of the results for a full year.
Certain comparative figures have been reclassified to conform to the current year’s presentation.

2.
Changes in accounting policies and new accounting developments

Capital Disclosures – Section 1535

Effective January 1, 2008, the Company adopted Section 1535 “Capital Disclosures”, which requires disclosure of qualitative and quantitative information that enables the users to evaluate the Company’s objectives, policies and processes for managing capital as well as the implications of non-compliance. Disclosures required by this standard are included in note 7.

Inventories – Section 3031

Effective January 1, 2008, the Company adopted Section 3031 “Inventories”. This Section prescribes the accounting treatment for inventories and provides guidance on the determination of costs and its subsequent recognition as an expense, including any write-down to net realizable value. It also provides guidance on the cost formulas that are used to assign costs to inventories. The adoption of this new accounting policy did not have any impact on the Company’s consolidated financial statements.

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

2.
Changes in accounting policies and new accounting developments (continued)

Financial Instruments – Disclosures – Section 3862 and Presentation – Section 3863
Effective January 1, 2008, the Company adopted Section 3862 “Financial Instruments – Disclosures” and Section 3863 “Financial Instruments – Presentation”. These Sections require entities to disclose quantitative and qualitative information in their financial statements that enables users to evaluate (a) the significance of financial instruments for the entity's financial position and performance; and (b) the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the balance sheet date, and management’s objectives, policies and procedures for managing such risks. Disclosures required by these standards are included in note 8.

Goodwill and intangible assets – Section 3064
In February 2008, the CICA issued Section 3064, “Goodwill and Intangible Assets”, which replaces Section 3062, “Goodwill and Other Intangible Assets”. This new standard provides guidance on the recognition, measurement, presentation and disclosure of goodwill and intangible assets and is effective beginning January 1, 2009. Concurrent with the adoption of this standard, EIC-27, “Revenues and Expenditures in the Pre-operating Period”, will be withdrawn. This will result in a change to the Company’s accounting for the start-up of mining operations, as pre-commercial production costs will no longer be capitalized as an asset. We are currently assessing the impact of this standard on our consolidated financial statements.

International Financial Reporting Standards
In 2006, the Canadian Accounting Standards Board (“AcSB”) published a new strategic plan that will significantly affect financial reporting requirements for Canadian companies. The AcSB strategic plan outlines the convergence of Canadian GAAP with International Financial Reporting Standards (IFRS) over an expected five-year transitional period. In February 2008, the AcSB announced that 2011 is the transition date for publicly listed companies to use IFRS, which will replace Canadian GAAP. The effective date is for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The transition date of January 1, 2011 will require the restatement for comparative purposes of amounts reported by the Company for the year ended December 31, 2010. While we have begun assessing the adoption of IFRS for 2011, the financial reporting impact of the transition to IFRS cannot be reasonably estimated at this time.

3.
Restricted cash
Restricted cash represents short-term interest-bearing money market securities and funds held on deposit as collateral:
					
 	 	June 30, 2008
$	 	December 31, 2007
$	
Current:	 		 		
Collateral account against the HSBC bank loan – Turkey	 	60,000	 	55,000	
Collateral account against the HSBC bank loan – China	 	-	 	10,500	
Electricity deposit	 	-	 	210	
 	 	60,000	 	65,710	
Non-current:	 		 		
Environmental guarantee deposit	 	8,300	 	8,300	
 	 	8,300	 	8,300	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

					
3.
Restricted cash (continued)
The environmental guarantee deposit is held on account with a Turkish bank under environmental and pollution guarantees required by the Turkish Ministry of the Environment. The funds are invested at prevailing bank rates. Interest earned on these deposits is included in interest and other income as presented in the Consolidated Statements of Operations.

4.
Shareholders’ equity

(a)
Authorized 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, 2008, there were no non-voting common shares outstanding.

Voting common shares	 	Number of shares	 	Amount
$	
 	 		 		
Balance, December 31, 2007	 	344,208,540	 	753,058	
 	 		 		
Estimated fair value of share options exercised	 	-	 	1,898	
Shares issued upon exercise of share options, for cash	 	1,261,326	 	5,263	
 	 		 		
Balance, June 30, 2008	 	345,469,866	 	760,219	

(b)
Contributed surplus
The continuity of contributed surplus on the Consolidated Balance Sheet is as follows:

 	 	 Contributed surplus attributable to:	
 	 	 Stock-based
 compensation
 $	 	 Other
 $	 	Total
$	
 	 		 		 		
Balance, December 31, 2007	 	11,989	 	1,094	 	13,083	
 	 		 		 		
Non-cash stock-based compensation	 	4,980	 	-	 	4,980	
Options exercised, credited to share capital	 	(1,898)	 	-	 	(1,898)	
 	 		 		 		
Balance, June 30, 2008	 	15,071	 	1,094	 	16,165	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

4.
Shareholders’ equity (continued)

(c)
Accumulated other comprehensive income
Accumulated other comprehensive income is as follows:

 	$	
 	 		
Balance, December 31, 2007	 	214	
 	 		
Unrealized gains on available-for-sale investment	 	1,623	
Realized gains on sale of available-for-sale investment transferred to net income	 	(61)	
 	 		
Balance, June 30, 2008	 	1,776	

5.
Stock-based compensation
(a)
Share option plans
The continuity of share purchase options outstanding is as follows:

 	 	Weighted average exercise price
Cdn$	 	Number of options	 	Contractual weighted average remaining life
(years)	
 	 	 	 	 	 	 	
Balance, December 31, 2007	 	 5.36	 	 8,224,279	 	 3.1	
Granted	 	 6.45	 	 2,828,000	 	 	
Exercised	 	 4.17	 	 (1,261,326)	 	 	
                    Cancelled	 	 6.46	 	 (10,001)	 	 	
 	 	 	 	 	 	 	
Balance, June 30, 2008	 	 5.83	 	 9,780,952	 	 3.3	

At June 30, 2008, 6,172,697 share purchase options (December 31, 2007 – 5,064,193) with a weighted average exercise price of Cdn$5.49 (December 31, 2007 – Cdn$4.64) had vested and were exercisable.

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

5.
Stock-based compensation (continued)

Options outstanding at June 30, 2008 are as follows:

											
 	 	 Total options outstanding	 	 Exercisable options	
Range of
exercise price
Cdn$	 	 Shares
 	 	 Weighted
 average
 remaining
 contractual
 life
 (years)	 	 Weighted
 average
 exercise
 price
 Cdn$	 	 Shares
 	 	 Weighted
 average
 exercise
 price
 Cdn$	
 	 	 	 	 	 	 	 	 	 	 	
$3.00 to $3.99	 	2,097,000	 	1.1	 	3.57	 	2,097,000	 	3.57	
$4.00 to $4.99	 	225,000	 	2.5	 	4.69	 	133,333	 	4.59	
$5.00 to $5.99	 	1,514,418	 	3.4	 	5.40	 	950,666	 	5.52	
$6.00 to $6.99	 	2,983,000	 	4.5	 	6.43	 	1,085,998	 	6.40	
$7.00 to $7.99	 	2,961,534	 	3.7	 	7.13	 	1,905,700	 	7.12	
 	 		 		 		 		 		
 	 	9,780,952	 	3.3	 	5.83	 	6,172,697	 	5.49	

(b)
Stock-based compensation expense
Stock-based compensation expense incurred to June 30, 2008 has been included in the undernoted expenses in the Consolidated Statement of Operations as follows:

 	 	Three months ended	 	Six months ended	
 	 	June 30,	 	June 30,	
 	 	2008
$	 	2007
$	 	2008
$	 	2007
$	
         	 	 	 	 	 	 	 	 	
Operating costs	 	214	 	225	 	648	 	833	
Exploration	 	200	 	130	 	753	 	496	
General and administrative	 	909	 	781	 	3,579	 	2,901	
 	 		 		 		 		
 	 	1,323	 	1,136	 	4,980		4,230	

(c)
Bonus Cash Award Units
As of June 30, 2008, Eldorado had awarded 587,500 Bonus Cash Award Units (“BCAUs”) with a vesting date of February 8, 2008 and 587,500 BCAUs with a vesting date of February 8, 2009. A total of 287,580 BCAUs from the first vesting remained unexercised at June 30, 2008. The carrying value of BCAUs at June 30, 2008 was $1,689 and is reflected in accrued liabilities on the balance sheet. The related cost in the amount of $2,863 is reflected in “general and administrative expense” in the Consolidated Statements of Operations.

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

6.
Supplementary cash flow information

 	 	Three months ended	 	Six months ended	
 	 	June 30,	 	June 30,	
 	 	2008
$	2007
$	 	2008
$	 	2007
$	
 	 	 	 	 	 	 	 	
Changes in non-cash working capital	 			 		 		
Accounts receivable and other	 	1,829	(2,637)	 	2,008	 	(2,975)	
Inventories	 	(5,078)	2,503	 	(2,421)	 	(3,306)	
Accounts payable and accrued liabilities	 	994	4,014	 	10,056	 	3,824	
 	 			 		 		
 	 	(2,255)	3,880	 	9,643	 	(2,457)	
 	 			 		 		
Supplementary cash flow information	 			 		 		
Income taxes paid	 	8,678	-	 	8,678	 	-	
Interest paid	 	259	1,196	 	259	 	1,411	

7.
Capital disclosure
Eldorado’s objectives when managing capital are to:

a)
safeguard our ability to continue as a going concern,
b)
have sufficient capital to develop our mining projects and take them into production, and
c)
meet external capital requirements on our credit facilities.

The Company monitors capital based on the debt to adjusted capital ratio. Debt is total debt shown on the balance sheet. Adjusted capital includes all components of shareholders’ equity, which includes accumulated comprehensive income, share capital, contributed surplus and deficit.

Eldorado’s strategy is to keep the debt to adjusted capital ratio below 40%. The debt to adjusted capital ratio at June 30, 2008 and December 31, 2007 was 11.94% and 14.60% respectively.

8.
Financial instruments
a)
Fair value

The fair value of financial instruments at June 30, 2008 and December 31, 2007 is summarized as follows:

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

8.
Financial instruments (continued)

 	June 30, 2008	 	December 31, 2007	
 	Carrying amount	Fair value	 	Carrying amount	Fair value	
 			 			
 	           $	              $	 	           $	              $	
Financial Assets	 	 	 	 	 	
 	 	 	 	 	 	
Held for trading	 	 	 	 	 	
  Cash and cash equivalents	96,376 	96,376 	 	46,014 	46,014 	
  Restricted cash	68,300 	68,300 	 	74,010 	74,010 	
  Marketable securities	236 	236 	 	  -   	  -   	
  Accounts receivable and other	26,457 	26,457 	 	28,720 	28,720 	
  Derivative contract	1,478 	1,478 	 	2,956 	2,956 	
 	 	 	 	 	 	
Available for sale	 	 	 	 	 	
  Marketable securities	5,400 	5,400 	 	1,615 	1,615 	
 	 	 	 	 	 	
Financial Liabilities	 	 	 	 	 	
 	 	 	 	 	 	
  Accounts payable and accrued liabilities	54,446 	54,446 	 	39,943 	39,943 	
  Debt	60,519 	60,519 	 	65,561 	65,561 	

Fair value estimates are made at the balance sheet date, based on relevant market information and other information about the financial instruments.

Derivative financial instruments are reported at fair value, with unrealized gains or losses included in earnings. 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 the markets.

The derivative contract fair value was calculated based on a capital asset pricing model (“CAPM”) to estimate the forward price of Brazilian electricity for 2008, adjusted by the Brazilian real and US dollar forward exchange rates and then discounted for time value.

The CAPM estimates the risk-adjustment applied to spot electricity prices as a means of deriving a forward price.

We used the following assumptions when calculating the fair value of this contract:

Quantity of energy to purchase	39,655.60 MWh	
Set price per contract	$24.50/MWh	
Spot price in Brazilian real – January 2008	R$502.45/MWh	
Forward price of energy (range)	$111.78/MWh – $54.75/MWh	
US treasury yield (range)	2.90% – 3.31%	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

		
8.
Financial instruments (continued)
b)
Financial risk management
Eldorado’s activities expose it to a variety of financial risks, including credit risk, foreign exchange risk, interest rate risk, liquidity risk and gold price risk.

Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents, restricted cash and accounts receivable. Eldorado deposits its cash and cash equivalents, including restricted cash, with high credit quality financial institutions as determined by ratings agencies.
 
Currency risk
The Company operates in numerous countries, including Canada, Turkey, China and Brazil, and is therefore exposed to foreign exchange risk arising from transactions denominated in a foreign currency.

Eldorado’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are held in several currencies (mainly Canadian dollars, Turkish liras, Chinese renminbi and Brazilian real) and are therefore subject to fluctuation against the US dollar.
We held the following balances in foreign currency as at June 30, 2008:

 	Canadian dollar	Euro	Turkish        lira	Chinese renminbi	Brazilian real	

Cash and cash equivalents	  5,362 	  92 	  2,500 	  169,670 	  2,987 	
Accounts receivable	  7,191 	  2 	  17,444 	  24,299 	  10,097 	
Accounts payable and accrued liabilities	  (4,833)	  (57)	  (17,935)	  (205,585)	  (11,560)	
Net balance	  7,720 	  37 	  2,009 	  (11,616)	  1,524 	
 	 	 	 	 	 	
Equivalent in US dollars	  7,589 	  58 	  1,644 	  (3,671)	  956 	

Based on the balances as at June 30, 2008, a 1% increase (decrease) in the exchange rates on that date would have resulted in a (decrease) increase of approximately $66 in earnings before income. There would be no effect in other comprehensive income.
Our cash flows from our operations are exposed to foreign exchange risk, as commodity sales are set in US dollars and a certain amount of our operating expenses are in the currency of the country in which our mining operations take place.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. Current financial assets and financial liabilities are generally not exposed to interest rate risk because of their short-term nature. Eldorado’s debt is not exposed to interest rate cash flow risk as the interest rate has been fixed at the time of each drawdown.

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

8.
Financial instruments (continued)

Gold price risk and other price risk
Eldorado is subject to price risk for fluctuations in the market price of gold. Gold prices are affected by numerous factors beyond our control, including central bank sales, producer hedging activities, the relative exchange rate of the US dollar with other major currencies, global and regional demand and political and economic conditions. Worldwide gold production levels also affect gold prices, and the price of gold is occasionally subject to rapid short-term changes due to speculative activities. We have elected not to actively manage our exposure to gold price risk at this time. From time to time, we may use commodity price contracts to manage our exposure to fluctuations in the price of gold.
Other price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices. Eldorado’s other price risk includes equity price risk and energy price risk, whereby the Company’s investments in available-for-sale securities and derivative contracts, respectively, are subject to market price fluctuation.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. The Company manages liquidity by maintaining adequate cash and cash equivalent balances, and by appropriately using its lines of credit. Our treasury department monitors and reviews both actual and forecasted cash flows, and also matches the maturity profile of financial assets and liabilities.
As at June 30, 2008, Eldorado had $29,928 of purchase obligations with respect to its normal course of business and $25,403 in capital commitments for the remainder of 2008.

9.
Segmented information
During the period ended June 30, 2008, Eldorado had four reporting segments. The Brazil reporting segment includes the reclamation activities of the São Bento mine and exploration activities in Brazil. The Turkey reporting segment includes the operations of the Kişladağ mine and exploration and development activities in Turkey. The China reporting segment includes the operations of the Tanjianshan mine and exploration activities in China. The corporate reporting segment includes the operations of the Company’s corporate office.

 	 	 June 30, 2008	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 	 	 	 	
Net mining interests	 	 	 	 	 	 	 	 	 	 	
Producing or under construction	 	 186,619	 	 155,311	 	 7,960	 	 875	 	 350,765	
Non-producing	 	 42,650	 	 -	 	 11,013	 	 -	 	 53,663	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 229,269	 	 155,311	 	 18,973	 	 875	 	 404,428	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

9.
Segmented information (continued)

 	 	 December 31, 2007	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 	 	 	 	
Net mining interests	 		 		 		 	 	 	 	
Producing or under construction	 	 175,888	 	 149,267	 	 7,919	 	 956	 	 334,030	
Non-producing	 	 38,358	 	 -	 	 5,317	 	 -	 	 43,675	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 214,246	 	 149,267	 	 13,236	 	  956	 	 377,705	

Operations
											
 	 	 For the three months ended June 30, 2008	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 		 	 	
Revenue	 	 	 	 	 	 	 	 	 	 	
Gold sales	 	 50,930	 	 29,129	 	 -	 	 -	 	 80,059	
Interest and other income	 	 279	 	 131	 	 1,539	 	 520	 	 2,469	
 	 	 51,209	 	   29,260	 	 1,539	 	 520	 	 82,528	
Expenses except the undernoted	 	 14,680	 	 11,454	 	 443	 	 6,365	 	 32,942	
Depletion, depreciation and amortization	 	 2,209	 	 1,217	 	 -	 	 86	 	 3,512	
Exploration	 	 1,927	 	 96	 	 346	 	 303	 	 2,672	
 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before tax and other items	 	 32,393	 	 16,493	 	 750	 	 (6,234)	 	 43,402	
Income tax expense	 	 (6,768)	 	 (3,642)	 	 (2,799)	 	 (31)	 	 (13,240)	
Non-controlling interest	 	 -	 	 (5,007)	 	 -	 	 -	 	 (5,007)	
 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 25,625	 	 7,844	 	 (2,049)	 	 (6,265)	 	 25,155	

 	 	 For the six months ended June 30, 2008	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	 	 	 	 	 	 	 	 	 	
Gold sales	 	 73,244	 	 75,490	 	 -	 	 -	 	 148,734	
Interest and other income	 	 368	 	 226	 	 4,307	 	 1,412	 	 6,313	
 	 	 73,612	 	   75,716	 	 4,307	 	 1,412	 	 154,047	
Expenses except the undernoted	 	 25,474	 	 26,361	 	 1,572	 	 14,311	 	 67,718	
Depletion, depreciation and amortization	 	 3,098	 	 9,069	 	 -	 	 169	 	 12,336	
Exploration	 	 3,170	 	 188	 	 794	 	 711	 	 4,863	
 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before tax and other items	 	 41,870	 	 40,098	 	 1,941	 	 (13,779)	 	 70,130	
Income tax expense	 	 (8,471)	 	 (7,561)	 	 (3,151)	 	 (48)	 	 (19,231)	
Non-controlling interest	 	 -	 	 (5,007)	 	 -	 	 -	 	 (5,007)	
 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 33,399	 	 27,530	 	 (1,210)	 	 (13,827)	 	 45,892	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

											
9.
Segmented information (continued)

											
 	 	 For the three months ended June 30, 2007	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	 	 	 	 	 	 	 	 	 	
Gold sales	 	 45,997	 	 24,247	 	 4,632	 	 -	 	 74,876	
Interest and other income	 	 460	 	 41	 	 65	 	 1,220	 	 1,786	
 	 	 46,457	 	   24,288	 	 4,697	 	 1,220	 	 76,662	
Expenses except the undernoted	 	 13,711	 	 16,992	 	 2,552	 	 2,116	 	 35,371	
Depletion, depreciation and amortization	 	 1,932	 	 2,649	 	 -	 	 64	 	 4,465	
Exploration	 	 1,633	 	 40	 	 809	 	 383	 	 2,865	
Gain on disposal of assets	 	 -	 	 -	 	 -	 	 (187)	 	 (187)	
 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before tax	 	 29,181	 	 4,607	 	 1,336	 	 (1,156)	 	 33,968	
Income tax expense	 	 (5,788)	 	 (166)	 	 (1,260)	 	 (23)	 	 (7,237)	
 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 23,393	 	 4,441	 	 76	 	 (1,179)	 	 26,731	

											
 	 	 For the six months ended June 30, 2007	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 Turkey
 $	 	 China
 $	 	 Brazil
 $	 	 Corporate
 $	 	 Total
 $	
 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	 	 	 	 	 	 	 	 	 	
Gold sales	 	 76,410	 	 33,107	 	 6,907	 	 -	 	 116,424	
Interest and other income	 	 1,085	 	 71	 	 178	 	 2,391	 	 3,725	
 	 	 77,495	 	   33,178	 	 7,085	 	 2,391	 	 120,149	
Expenses except the undernoted	 	 24,949	 	 21,397	 	 4,212	 	 7,592	 	 58,150	
Depletion, depreciation and amortization	 	 3,235	 	 4,385	 	 -	 	 134	 	 7,754	
Exploration	 	 3,111	 	 40	 	 1,894	 	 616	 	 5,661	
Gain on disposal of assets	 	 -	 	 -	 	 (3,341)	 	 (323)	 	 (3,664)	
 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before tax	 	 46,200	 	 7,356	 	 4,320	 	 (5,628)	 	 52,248	
Income tax expense	 	 (10,491)	 	 (166)	 	 (2,233)	 	 (45)	 	 (12,935)	
 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 35,709	 	 7,190	 	 2,087	 	 (5,673)	 	 39,313	

Eldorado Gold Corporation
Notes to the Unaudited Interim Consolidated Financial Statements
June 30, 2008

(Expressed in thousands of US dollars, unless otherwise stated)

10.
Subsequent events
a)
On July 3, 2008 we announced that our bid to acquire all of the outstanding shares of Frontier Pacific Mining Corporation (“FRP”) was successful. The transaction is valued at approximately C$148 million (or C$157 million on a fully diluted basis). FRP shareholders will receive 0.122 common shares of Eldorado and C$0.0001 in cash as well as one exchange receipt (an "Exchange Receipt") for every common share of FRP. Each Exchange Receipt will entitle its holder to receive, without payment of additional consideration, 0.008 common shares of Eldorado, conditional upon a joint ministerial resolution being issued prior to July 1, 2009 by the Greek Joint Ministerial Council, comprised of the Greek Ministries of Environment, Agriculture, Culture, Development and Health, accepting the environmental terms of reference drafted by the Ministry of the Environment for FRP's Perama Hill gold project. If the joint ministerial resolution accepting the environmental terms of reference is not received prior to July 1, 2009, the Exchange Receipts will be cancelled.
b)
On July 9, 2008 we announced our agreement with Brazauro Resources Corporation to earn an interest in the Tocantinzinho (“TZ”) Project in Brazil. Eldorado can earn up to a 75% interest in the TZ Project by undertaking $9.5 million of exploration and development expenditures and making payments to Brazauro in the aggregate of $90.0 million plus a production decision fee of up to $10.0 million. As part of the transaction Eldorado will subscribe for 8,800,000 units of Brazauro at a price of $0.95 per unit.
c)
On July 31, 2008 we announced we have entered into a letter agreement (“the Agreement”) with AngloGold Ashanti (“AngloGold”) for the sale of all the shares of São Bento Gold Limited (“SBGL”) together with its wholly owned subsidiary São Bento Mineracao S.A, which in turn holds all the assets and liabilities of the São Bento Gold Mine in Minas Gerais State, Brazil (“the Transaction”). The Agreement is subject to execution and delivery of final definitive agreements and regulatory approvals in Brazil and the Republic of South Africa. Under the terms of the Agreement AngloGold will acquire all the shares of SBGL for a total consideration of US$70 million, to be paid in American Depositary Shares (“ADS”) of AngloGold which will be freely tradeable on the New York Stock Exchange. Eldorado’s Vila Nova Iron Ore Project and certain pieces of underground equipment are excluded from the Transaction. As a term of the Agreement, Eldorado will be provided with a right of first refusal on any future disposition by AngloGold of the São Bento Mine or AngloGold’s adjacent Corrego do Sitio Gold Project for a period of three years.