Gold Stocks; Eldorado Gold (TSX: ELD NYSE: EGO ASX: EAU ) Announces Friendly Transaction With Brazauro Resources Corporation (TSX-V: BZO) By Plan Of Arrangement

Gold Stocks; Eldorado Gold (TSX: ELD NYSE: EGO ASX: EAU ) Announces Friendly Transaction With Brazauro Resources Corporation (TSX-V: BZO) By Plan Of Arrangement

May 12, 2010- VANCOUVER, BC -  ( http://www.investorideas.com/ mining stocks newswire) Eldorado Gold Corporation announced today an agreement whereby Eldorado will acquire, through a court approved plan of arrangement under the laws of British Columbia (the“Arrangement”), all of the outstanding common shares (the “Brazauro Shares”) of Brazauro Resources Corporation (TSX-V: BZO) for total consideration consisting of common shares of Eldorado (the“Eldorado shares”) having a value of approximately C$122.4 million (including the value of NewBrazauro).
Under the Arrangement, each Brazauro Share will be exchanged for 0.0675 Eldorado shares, which
together with the contemplated spin out of New Brazauro would value Brazauro at C$1.33 per share,
representing a premium of 92% to the closing price of Brazauro shares on the TSX Venture Exchange
(the “TSX-V”), as at May 11, 2010. In addition, as part of the transaction, Eldorado has agreed to fund
with C$10 million a new exploration company (“New Brazauro”) that will contain certain exploration
properties currently owned by Brazauro. Each shareholder of Brazauro, other than Eldorado, will receive
one share of New Brazauro in addition to 0.0675 Eldorado shares for each Brazauro Share.

The principal asset of Brazauro, the Tocantinzinho Project in Tapajós, Brazil, is a late stage exploration
project with a current Measured and Indicated Resource of 1.9 million ounces of gold. In addition,
Eldorado will also acquire two exploration projects, Água Branca and Piranhas, which are located in closeproximity to the Tocantinzinho Project.

“We are extremely pleased to have achieved a consensual transaction with Brazauro. Unified project
ownership represents the best chance for development of profitable and responsible mining operations at
Tocantinzinho and our intention is to continue with an intensive exploration program with the objective to establish a basis for successful mining operations,” said Paul Wright, President and CEO of Eldorado.

The number of Eldorado shares and warrants to be issued pursuant to the transaction will be
approximately 6.1 million, assuming all existing in the money options and warrants of Brazauro are exercised into Brazauro shares in advance of the transaction closing. The transaction is expected to close
by July 15, 2010 and is subject to customary Court and regulatory approvals.

The Arrangement has been approved by the boards of directors of Eldorado and Brazauro and will be
subject to, among other things, approval by holders of 66 2/3% of the Brazauro common shares, options
and warrants voting as a single class and approval by a majority of Brazauro common shareholders, other
than Eldorado, at a special meeting of Brazauro security holders called to approve the transaction.
Officers and directors of Brazauro, representing approximately 8.9% of Brazauro’s outstanding shares,
options and warrants have entered into lock-up and support arrangements with Eldorado under which they
have agreed to vote in favour of the transaction. Eldorado owns 14,326,000 of Brazauro’s common
shares and 4,916,000 warrants representing approximately 17.2% of Brazauro on a fully diluted basis.

In the event that the transaction is not completed, Brazauro has agreed to pay Eldorado a termination fee
equal to C$4.8 million, under certain circumstances. Brazauro has also provided Eldorado with certain
other customary rights, including a right to match competing offers. Brazauro has received a fairness
opinion in respect of the transaction from BMO Capital Markets Inc.

Mark Jones III, Chairman and Chief Executive Officer of Brazauro commented, “I am delighted with
today’s transaction and very happy to place the future of the Tocantinzinho Project in the hands of a firstclass
operator like Eldorado