How the challenges and constant 'crises' were handled: Reactions at local level Reactions at national level Institutional gaps The crisis and us

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1 Generating Gold Value: Producing and securing benefits for the national and local economy 4October 2016 Mihalis Theodorakopoulos Vice President and Managing Director of Hellas Gold S.A.

2 Hellas Gold How the challenges and constant 'crises' were handled: Reactions at local level Reactions at national level Institutional gaps The crisis and us

3 Background to Hellas Gold's investment The company was founded in 2003 Milestones: January 2004: The contract with the Hellenic Republic was ratified bythe Greek Parliament July 2011: The Environmental Terms and Conditions of the EIS were approved byjoint Ministerial Decision February 2012: The company began operating as a subsidiary of the Canadian firm Eldorado Gold April 2013: The Council of State approves the EIS (16 more judgments in our favour follow)

4 Hellas Gold's projects Olympias: Mixed sulphur-rich deposits: 9 gr/tn of gold (Au) 138 gr/tn of silver (Ag) 4.6% lead (Pb) content 6.01% zinc (Zn) content 11.5 million tons of ore Skouries: Porphyritic deposit: 0.54% copper (Cu) content 0.83 gr/tn of gold (Au) million tons of ore Mavres Petres: Mixed sulphur-rich deposits: 6.0% lead (Pb) content 8.3% zinc (Zn) content 170 gr/tn of silver (Ag) 1 million tons of ore

5 Map of operations

6 The investment in numbers Investment worth $1.5 billion $700 million invested so far More than 2,000 jobs created -Annual cost per employee: 45, % 35% of total revenues a year pumped back into the national economy (in the production phase) Over the next 20 years: 1.6 billion in direct taxes and 1.5 billion in salaries 1 billion insurance contributions 2.5 billion to local businesses and suppliers 150 million on environmental protection 30 million on CSR activities

7 Challenges at the start of the investment Legacy left behind by former companies Negative climate in the area -Reactions Permitting: Rejectiveruling from the Council of State on gold metallurgy plan in 2000 (under TVX) Project development: Gapsin the statutory frameworkfor for the mining industry Blinkered outlooks: bureaucracy, delays Investment framework: political dimension and fear of taking immediate decisions Protracted delays -some lasting years-for routine permits

8 Managing key challenges Planning Overall verallplan for the three projects: Parallel development of the Skouries -Olympias deposits and Stratoni site Full vertical integration

9 Managing key challenges Environment Focus on the environment Least possible area occupied Principle of parallel rehabilitation Freeing up the coastal zone Handling of environmental issues: Rehabilitation of all tailingsleft behind by the previous mine operators at Stratoni and Olympias Managing acid waters Managing mine waste

10 Building trust with local communities Consultation: Networking with organisations, key players and partners to communicate information and represent our viewpoint Briefings about all issues Ongoing dialogue and transparent relations Acceptance gained through: Legitimacy (permits, certificates, awards/distinctions, court rulings) Dedication to environmental credentials Building trust with the community - jobs, supporting the economy, increasing cash liquidity, parallel development, social investment

11 Economic and socialcontribution contribution 110 million injected directly into the local economy between 2006 and 2013 (supplies and contracting work) The figure rose from 2.5 million in 2006 to 30 million a year in 2015 More housing and growing population in the mining villages Social Investment 13 million spent over the last 10 years on CSR activities 19 million spent on infrastructure works in NE Halkidiki between 2006 and 2015 Summer internships for local students. 350 students in 2015 Open Doors Policy: More than 5,000 citizens have visited Hellas Gold's projects

12 How perception of the investment changed An outward-looking approach: Contacts and partnerships with business organisations (Hellenic Federation of Enterprises, Federation of Industries of Northern Greece, Greek Mining Enterprises Association) Transparent communication and information on all levels (general public, local bodies, politicians) High levels of employee safety,, safeguarding workers' rights, industrial peace Dedication to environmental protection and gradual reversal of the negative climate we inherited Resisting the political and economic crisis and continuing the investment through: Consistently contributing to the local and national economy Consistent social investment No shortcuts when it comes to environmental protection and employee safety

13 How perception of the investment changed Distinctions and Awards: ISO certificationfor our Environmental Management System for all operations at all Hellas Gold mining facilities. CSR Prize from Federation of Industries of Northern Greece as part of the Greek Value awards. CRI BRONZE award Winner & Gold Health and safety awards for our H&S policies and contingency plans. HR Awards ΟΗSAS 18001:2007 certification for our occupational health and safety management system. ISO Energy management ISO Road Traffic Safety Management

14 How perception of the investmentchanged Transparency -Open communication Interviews and real answers - data about everything Announcements, press releases, press conferences, reacting immediately by providing information in every crisis Official information, direct from the company: site, blog, social media, etc. An outward-looking approach: Members of Officialinstitutions, activities, conferences, events

15 Hellas Gold in the mass media Gradual change in the public image of the investment: 2012: Demonstrations against the investment -negative publicity 2013: Attacks at Skouries (negative event) made the investment front page news and well-known nationwide effective crisismanagement from the company 2015:Employee reactions changed the perception of the investment 2016: Announcement that operations at Skouries were to be suspended -the view that the investment needed to be continued was widespread in the media METRON ANALYSIS survey about acceptance of the mining investment in Halkidiki (Feb. 2016) APR AUG-1 SEP SEP-15 FEB-16 SEP-16 Agree Disagree

16 Conclusions Hellas Gold has experienced perhaps the greatest ever hostility towards an investment that had already begun to be implemented The shift in mood started in the local community -the peoplewho have to accept what we do are the people who live, workand make a life for themselves in NE Halkidiki As Greek workers, engineers and scientists we are proud to continue an investment designed by Greek minds for the benefit of Greece and its people

17 Why this investment? Eldorado is committed to its investment in Greece because: Greece has mineral wealth and a mining tradition stretching back to antiquity Human resources are top class (engineers, scientists, technicians, etc.) The local community in Halkidiki supports mining Eldorado has the funds needed plus the know-how required to successfully implement it

18 Rehabilitation in Olympias Valley in parallel with the upgrade of surface facilities

19 Thank You