El­do­rado Gold heads to ar­bi­tra­tion in Greece

El­do­rado Gold Corp. unit Hel­las Gold SA has re­ceived no­tice from Greece’s Min­istry of Fi­nance and Min­istry of En­vi­ron­ment and En­ergy that the min­istries have started do­mes­tic ar­bi­tra­tion. The no­tice al­leges that the Ma­dem Lakkos plant study is de­fi­cient.

Stockwatch Daily - - FRONT PAGE - Mr. Ge­orge Burns re­ports

EL­DO­RADO GOLD Corp.’s Greek sub­sidiary, Hel­las Gold SA, to­day re­ceived a for­mal no­tice from Greece’s Min­istry of Fi­nance and Min­istry of En­vi­ron­ment and En­ergy ini­ti­at­ing Greek do­mes­tic ar­bi­tra­tion. This ar­bi­tra­tion is pur­suant to the pro­vi­sions of the con­tract be­tween the Greek state and Hel­las Gold and in it the min­istries have named its nom­i­nee to the three-per­son ar­bi­tral panel.

The ar­bi­tra­tion no­tice al­leges that the tech­ni­cal study for the Ma­dem Lakkos met­al­lur­gi­cal plant for treat­ing Olympias and Sk­ouries con­cen­trates in the Stra­toni Val­ley, sub­mit­ted in De­cem­ber, 2014, is de­fi­cient and thereby is in vi­o­la­tion of the trans­fer con­tract and the en­vi­ron­men­tal terms of the project. The com­pany is highly con­fi­dent that the sub­ject tech­ni­cal study is ro­bust and con­sis­tent with the trans­fer con­tract, the busi­ness plan and the ap­proved en­vi­ron­men­tal terms of the project.

Ge­orge Burns, pres­i­dent and chief ex­ec­u­tive of­fi­cer of El­do­rado Gold, said: “El­do­rado has al­ways sought a con­struc­tive re­la­tion­ship and di­a­logue with all lev­els of the Greek gov­ern­ment. De­spite the Greek gov­ern­ment’s re­fusal to en­gage with El­do­rado, we be­lieve that this mat­ter could still be re­solved through good faith ne­go­ti­a­tions. We again in­vite the min­istry to en­gage with us for such pur­pose. Nev­er­the­less, we will vig­or­ously de­fend our rights and em­ploy all le­gal means at our dis­posal. We are con­fi­dent in the com­plete­ness of our ef­forts in Greece, the rigour of our en­gi­neer­ing and the vast po­ten­tial ben­e­fit of th­ese projects for re­gional and na­tional stake­hold­ers.

“We carry on busi­ness to the high­est in­dus­try stan­dards at all of our op­er­a­tions and projects, and we seek to im­ple­ment best-in-class tech­nolo­gies wher­ever pos­si­ble to meet com­mer­cial and en­vi­ron­men­tal goals. This is ac­knowl­edged in our orig­i­nal agree­ments and will be re­in­forced through the res­o­lu­tion of this mat­ter. What can­not be overlooked is the 2,400 peo­ple work­ing di­rectly for our projects in Greece to de­liver high-qual­ity mines and the sig­nif­i­cant con­tri­bu­tions be­ing made to Greece’s econ­omy. Upon ap­proval and re­ceipt of all the re­quired per­mits and a gov­ern­ment that en­gages in good faith with the

com­pany, we will then be in a po­si­tion to re­assess our in­vest­ment op­tions in Greece.”

About El­do­rado Gold Corp. El­do­rado is a lead­ing in­ter­me­di­ate gold pro­ducer with min­ing, de­vel­op­ment and ex­plo­ration op­er­a­tions in Turkey, Greece, Ro­ma­nia, Ser­bia, Canada and Brazil.

We seek Safe Har­bor.

Ge­orge R Al­bino, Ge­orge Ray­mond Burns, Pamela M Gib­son, Robert Rus­sell Gil­more, Ge­of­frey Arthur Han­d­ley, Michael A Price, Steven Paul Reid, Jonathan Arn Ruben­stein, John Web­ster, Paul Ni­cholas Wright

(ELD) Shares: 794,010,680

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