3. Local Growth & Employment

The mining industry can be a substantial source of value, as it generates employment and investment. This is particularly important for local economies, as sites have an almost permanent local presence, which exceeds by far the single generation cycle lifespan. Therefore, we have a proportionately higher responsibility towards local environment, local communities and local citizens.

According to a quantitative survey conducted in August 2019 to 500 members in the Municipality of Aristotle, 49% and 36% consider unemployment and bumpy roads respectively the biggest problems they face.

According to the International Council on Metals and Mining’s (ICMM) ‘The Role of Mining in National Economies' (www.icmm.com/romine/index): • Every direct employee in the mining industry creates 3-5 additional indirect job positions within a country • Every $1 of a mining project’s economic activity generates at least $3 additional economic activity within a country. Our operations also create indirect economic impacts, as: • Real estate prices in Halkidiki were more resilient during the Greek financial crisis compared to the surrounding region • Municipality of Aristotle’s residents have the highest average annual income compared to other municipalities in Halkidiki • The infrastructure we build as part of our activities (e.g. power lines, water wells, roads) also serves local needs.

When Kassandra Mines are fully developed, they will lead to: • Additional $1.9 billion investment, making the

Eldorado Gold investment currently one of the two largest investments in Greece • €2 billion state revenues (from royalties, income tax and social contribution) • Over €191 million revenues from mining fees • €11.3 billion exports • €3.5 billion payments for goods and services to Greek suppliers • Creation of 5,000 direct and indirect job positions (1,400 more job positions compared to nowadays and 900 additional job positions during construction activities) with stable and well-paid employment for over 25 years • €70 million for societal support activities in local communities.

million exports

Our business operations ensure we return significant economic value back to our Stakeholders, mostly through purchases (towards our suppliers), salaries, benefits and insurance payments (towards our employees), taxes (towards the State) and investments. We consider tax payments not only our legal obligation, but also a way to sustain relationships of trust and further contribute to the country’s economic growth.

€47 million to Capital Providers

€53 million to Employees1

€157 million for Operating Costs2

€19 million to Government €1.1 million to Society3

1 The amount refers to gross salaries, benefits and insurance payments 2 The amount does not include employee wages and benefits 3 The amount refers to value of implemented societal support programs

million of total economic value generated

million of total economic value distributed

million paid in employee salaries, insurance and benefits

million revenues from royalties for the Greek State and the Municipality of Aristotle

million paid in direct and indirect taxes

of revenues paid in direct and indirect taxes

According to a quantitative survey conducted in August 2019 to 500 members in the Municipality of Aristotle, only 1 of 3 citizens believe their financial situation will improve in the future.

We prioritize local procurement and aim to develop strong working relationships with the local community and generate additional income for local suppliers and contractors (i.e. suppliers based in and operating within the Municipality of Aristotle). As a result, a significant proportion of our procurement expenditure is directed towards local suppliers of goods and services.

of our suppliers are registered Greek companies

We prioritize procurement of goods and services from local suppliers who meet the standards we require and therefore: • Include local suppliers in all supplier evaluations • Prioritize local suppliers for purchases of consumables • Have defined preferential terms for local suppliers, at 30 days after the end of the invoicing month (compared to 60 days for all other suppliers).

The support we provide to suppliers in Halkidiki has helped them to grow their businesses and increase their capacity to deliver effectively the goods and services we need. While at the moment we have not developed any courses to train our suppliers, their collaboration with us has helped them to: • Develop their knowledge and skills, regarding health and safety, environmental management and governance issues • Develop projects with large companies domestically and internationally.

increase in supplier spending from local suppliers (i.e. within Municipality of Aristotle)

We are the largest employer in the Municipality of Aristotle and play an integral role to improve the region’s employment prospects. Based on the 2016 AMBIO Socio-Economic Impact Assessment Study findings and local labour department data, we directly employ approximately 25% of the Municipality of Aristotle’s total workforce. As a result, the local unemployment rate after 2015 is lower than the national average, while the local unemployment rate was higher than the national average in 2011.

Our priority is to hire workforce from Halkidiki, as well as train them on the necessary skills and expertise to work with us. Therefore, we engage with local communities and local entrepreneurs to identify gaps in skills or education, in order to increase their capacity related to the mining industry.

32% of all new hires were from local communities 98.9%

of workers (contractor employees) are from local communities

We do not only focus on frontline employees, but also on hiring managers from local communities, as we consider local knowledge and expertise an advantage for our business, while also retaining highly educated and talented citizens to their place of birth.