Board of directors approve merger of Eldorado Gold and HRC Development.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 8, 1996-- ELDORADO GOLD (TSE, VSE ELD.) HRC DEVELOPMENT (VSE HDC.) Eldorado Gold Corporation (TSE, VSE: "ELD") and HRC Development Corporation (VSE: "HDC") are pleased to announce that the Board Of Directors of both Eldorado and HRC have approved the terms and conditions of the previously announced proposed merger of the Companies under the name "Eldorado Gold Corporation".

The approval is based upon the recommendations of the Independent Committees of both Boards Of Directors, which in turn were based upon the receipt of formal valuations and fairness opinions. Under the terms of the proposed merger, shareholders of Eldorado will receive one common share in the capital of the merged company for each existing Eldorado common share.

Shareholders of HRC will receive one share in the capital of the merged company for each two existing HRC common shares, together with one-tenth of a common share purchase warrant for each existing HRC common share.

Each whole share purchase warrant will entitle the holder thereof to purchase one common share in the capital of the merged company at a price of $8.00 for a period which expires on a date which is two years from the closing of the merger. The merger remains subject to regulatory, court and shareholder approvals.

Both Companies are presently preparing a joint information circular which should be mailed to shareholders on or about October 18, 1996 to shareholders of record on October 9, 1996. The Companies have scheduled extraordinary shareholder meetings on November 15, 1996, to receive the approval of shareholders of both Companies to the merger.

The merger of Eldorado and HRC will create a fully integrated gold producer of significant stature with a world class exploration portfolio. Gencor Limited, Eldorado's and HRC's major shareholder, looks forward to the future growth of the merged Eldorado based on the demonstrated ability of management to discover, acquire and develop international gold deposits.

The merged Eldorado's mission is to produce 500,000 ounces and 1,000,000 ounces annually within five and ten years, respectively. The Company expects to achieve its growth through the development of its international asset portfolio, its ongoing business development activities worldwide and its association with the Gencor Group, one of the world's largest international mining companies.

Eldorado Gold Corporation's shares trade on the Toronto Stock Exchange ("TSE") and the Vancouver Stock Exchange ("VSE"), Symbol - ELD. HRC Development Corporation's shares trade on the VSE, Symbol - HDC.

Note: Neither the TSE, nor the VSE have approved or disapproved the

form or content of this release.

CONTACT: Eldorado Gold Corporation

Geoff Chater, 604/687-4018

604/687-4026 (FAX)

E-MAIL: [e-mail]