Centerra Gold, 2014 Year-End Reserve and Resource Update and Fourth Quarter Exploration Update

TORONTO, ON--(Marketwired - February 09, 2015) -

This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 10 and in our Cautionary Note Regarding Forward-looking Information on page 12.
All figures are in United States dollars.

Centerra Gold Inc. (TSX: CG) today issued its 2014 year-end estimates for reserves and resources and a fourth quarter 2014 exploration update. The estimates of reserves and resources are based on the Company's 2014 exploration programs and, with respect to the Kumtor project, on an updated mine plan and block model. The Company has used a gold price of $1,300 per ounce as the basis for its reserve estimates, which is unchanged from the 2013 year-end reserve estimates.

Highlights:

• At Centerra's 100% owned Öksüt Project in Turkey, total measured and indicated resources increased to an estimated 1.4 million contained ounces of gold (40.0 million tonnes (Mt) at 1.1 grams per tonne gold (g/t Au)), an overall increase of 295,000 ounces of contained gold. During 2014, in-fill and exploration drilling on the Keltepe and Güneytepe deposits and related improved level of confidence in the estimation of the resources converted 946,000 contained ounces of gold of indicated resources to a measured resource. For both deposits, the identified resources are oxide or transition material that is expected to be amenable to heap leach processing. The Company continues to work on completing an environmental impact assessment and expects to complete the feasibility study for the Öksüt Project mid-2015.

• At Kumtor, the Company has completed its analysis of the impact on reserves and resources of the buttress on the pit design, the updated geotechnical information that requires lower pit slope angles in some sectors of the pit, and the performance of the Kumtor block model. The results of this work, together with the negative production reconciliation experienced in 2014 have resulted in a reduction in Kumtor's reserves and resources. We expect that this reduction in reserves and resources will result in an approximate $120 million impairment charge to the goodwill of the Company's Kyrgyz segment. See "Kumtor Update on Block Model and Mine Plan".

• At the Gatsuurt Project in Mongolia, which has been designated as a mineral deposit of strategic importance, the gold mineral reserves and resources remain unchanged from the 2013 year-end statement. Now that the project has been designated as a strategic deposit, the Company expects to carry out further exploration drilling on the deposit, since no exploration work has been done on the property since 2010.

Ian Atkinson, President and CEO of Centerra Gold said: "In 2014, we continued to add resources at the Öksüt Project and elevated our level of confidence on the existing resource as the majority of the ounces were upgraded to the measured resource category. We are on track to have the feasibility study completed by mid-year. At Kumtor, with the new resource model that has been developed and a revised mine plan, we have made the necessary adjustments to reserves and resources and will be publishing the new life of mine plan in the near-term."

"Last week we announced the acquisition of a 50% interest in Premier Gold Mines' Trans-Canada Property in northern Ontario, Canada, which we expect to close on or around March 6, 2015. This acquisition gives our shareholders exposure to a significant gold resource and an advanced stage development project in an excellent jurisdiction. The acquisition gives us a 50% interest in a mineral resource on the Hardrock Project, which has an estimated 4.87 million total contained ounces of gold in an indicated resource (89.04 Mt at 1.70 g/t Au) and 2.74 million ounces of gold in an inferred resource (23.15 Mt at 3.69 g/t Au)," he concluded.

Please refer to the Technical Report and Mineral Resource Estimate Update for the Hardrock Deposit issued by Premier on August 22, 2014 with an effective date of July 4, 2014.

Kumtor Update on Block Model and Mine Plan
Historically, the reconciliation of the Kumtor block model has indicated that the model performed very well until 2013, but as the Company reported in February 2014, the Kumtor operation experienced negative production reconciliation during 2013, totaling 184,000 contained ounces of gold. As a result, during 2014, the Company retained an independent consultant to conduct an audit of the resource model. The work determined that the KS13 resource model was potentially biased and that Centerra should investigate different methodologies for estimating the higher grade section of the SB Zone. They also recommended that Kumtor undertake additional infill drilling in the deeper parts of the ore body which is scheduled to be completed in the first half of 2015.

Late in the third quarter of 2014, mining reached the high-grade SB Zone. The negative reconciliation experienced in the fourth quarter of 2013 re-occurred in the fourth quarter of 2014 and as a result the Company retained an independent consultant to assist in the development of a new resource model for the Kumtor Central Pit. This new resource model was used for the reserve and resource estimate in this news release. The estimate also incorporates the impact of the buttress on the pit design and updated geotechnical information that requires lower pit slope angles in some sectors of the pit. The Company is planning on carrying out further geotechnical drilling in 2015. The results of this work will be incorporated into an updated geotechnical model to determine what, if any, further revisions are required to the pit slope angles. 

Using the new reserve estimates, Kumtor's new life of mine plan (LOM) is now being optimized and will also reflect the deferral of capital related to additional mine haulage equipment (20 trucks) and the cancelation of the mill expansion, both of which were planned and described in the December 2012 technical report. The new LOM is expected to be filed on SEDAR by March 26, 2015 and will reflect an updated production profile, and updated operating and capital costs from those that were disclosed in the NI 43-101 technical report for Kumtor dated December 20, 2012.

The Company expects that this reduction in reserves and resources will result in an approximate $120 million impairment charge to the goodwill of the Company's Kyrgyz segment.

In addition, Kumtor has experienced difficulty in achieving the gold recoveries published in the December 2012 technical report which assumed a LOM gold recovery rate of 81%. It is now estimated that going forward the average LOM gold recovery is expected to be 77%, which will be reflected in the new LOM production profile in the updated technical report. Work continues at Kumtor on implementing strategies to improve gold recoveries.

Year-end Reserves and Resources
Reserves
At the end of 2014, Centerra's estimated consolidated proven and probable gold reserves decreased by 1.65 million contained ounces, after accounting for processing of 776,000 contained ounces in 2014. Centerra's proven and probable reserves now total an estimated 7.7 million ounces of contained gold (85.6 Mt at 2.8 g/t Au), compared to 10.2 million ounces as of December 31, 2013. The reserve decrease is primarily at Kumtor and is the result of: negative production reconciliation in 2014; the use of a new resource model for reserve estimation; and design changes to the Kumtor Central Pit to reflect the impact of the buttress and the flattening of certain pit slopes. An independent NI 43-101 technical report on Kumtor is expected to be filed on SEDAR by March 26, 2015. The report will provide an update on Kumtor's life of mine production profile as well as revisions to life of mine operating and capital costs. All 2014 year-end reserves were estimated using a gold price of $1,300 per ounce, which is unchanged from December 31, 2013.

At the Kumtor mine, in the Kyrgyz Republic, proven and probable gold reserves decreased by 1.6 million contained ounces, after accounting for processing of 731,000 contained ounces in 2014. Kumtor's proven and probable reserves now total an estimated 6.1 million ounces of contained gold (68.5 Mt at 2.8 g/t Au), compared to 8.5 million ounces as of December 31, 2013. At the end of December 2014, work on a new Central Pit resource model was completed to account for negative block model reconciliation experienced during the year. The net impact of the new resource model was to decrease probable reserves by 590,000 contained ounces. In addition, the mine design was revised as a result of the new resource model and flattening of certain pit slopes to mitigate geotechnical concerns. The new mine design has resulted in a decrease in probable reserves of 743,000 contained ounces. During 2014, a buttress was built to limit the movement in the South Arm of the Davidov Glacier. The location of the buttress has reduced the ultimate pit wall boundary thereby decreasing probable reserves by an additional 358,000 contained ounces. Optimization of the Sarytor and Southwest open pits resulted in an increase in the Sarytor probable reserves of 147,000 contained ounces and a decrease in the Southwest probable reserves of 105,000 contained ounces. 

In Mongolia, all remaining reserves in the stockpile at the Boroo mine were processed in 2014. The Boroo operation will continue to recover gold from the heap leach pad in 2015. 

At the Gatsuurt Project, proven and probable reserves are unchanged and total more than 1.6 million contained ounces of gold.

Resources
As of December 31, 2014, Centerra's measured and indicated resources increased by 223,000 contained ounces to an estimated total of 5.7 million ounces of contained gold (99.8 Mt at 1.8 g/t Au) compared to the December 31, 2013 estimate. The change is a result of a 295,000 contained ounce increase in the measured and indicated resources on the Öksüt Project and a 217,000 contained ounce net increase in the measured and indicated resources at Kumtor offset by a 289,000 contained ounce decrease at Kara Beldyr. The Company divested its interest in the Kara Beldyr property in 2014. 

At the 100% owned Öksüt Project in Turkey, measured and indicated resources total an estimated 1.4 million ounces of contained gold (40.0 Mt at 1.1 g/t Au), an increase of 295,000 ounces from December 31, 2013. This increase resulted from adding 166,000 contained ounces to measured and indicated resources at the Keltepe deposit and converting 128,000 contained ounces in the Güneytepe deposit from the inferred resource category to the measured and indicated resource category. Also, during 2014, a total of 946,000 contained ounces were upgraded to the measured resource category from indicated resource category (Keltepe 894,000 contained ounces and Güneytepe 51,000 contained ounces) reflecting an increase in drill density and related improved level of confidence in the estimation of the resources.

At Kumtor measured and indicated open pit resources increased by 284,000 contained ounces of gold, to an estimated total 2.8 million contained ounces of gold (29.5 Mt at 3.0 g/t Au) at December 31, 2014, primarily as a result of the downgrade of reserves to resources at the Kumtor Central Pit. Measured resources decreased by 158,000 contained ounces to an estimated 1.47 million contained ounces (14.3 Mt at 3.2 g/t Au) and indicated resources increased by 441,000 contained ounces of gold to an estimated 1,330,000 contained ounces of gold (15.1 Mt at 2.7 g/t Au). These changes are attributable to the pit optimization undertaken at the Sarytor and Southwest deposits and to applying a standardized methodology on all deposits at Kumtor in 2014.

As of December 31, 2014, Centerra's inferred resource estimate totals 2.4 million ounces of contained gold (21.2 Mt at 3.6 g/t Au), a decrease of 1.2 million contained ounces of gold over the December 31, 2013 estimate. The decrease in inferred contained ounces is, primarily the result of 411,000 contained ounces being reallocated to open pit indicated resources from the high-grade underground Stockwork Zone inferred resource category, 128,000 inferred contained ounces at the Güneytepe deposit of the Öksüt Project being upgraded to the measured and indicated resource category, 581,000 inferred contained ounces being removed from the Northeast Prospect, Southwest and Sarytor deposits as a result of not being captured within the constraining pit resource shell developed at a gold price of $1,450 per ounce and 211,000 contained ounces being removed by the divestiture of the Kara Beldyr Project.

The use of a constraining pit resource shell captures the open pit mineral resources outside the mineral reserves pit and includes parameters for location, deposit scale and continuity, mining method, metallurgical recovery, operating costs and commodity price. However the resource shell does not take into account any future capital requirements; therefore it should not be used as a proxy for conversion to mineral reserves.

At Kumtor, of the estimated 1.7 million contained ounces of inferred resources, 1.6 million estimated ounces are contained within the high-grade underground inferred resources shell in the SB and Stockwork Zones. There was a minor change in the 2014 year-end inferred underground resource estimate at the SB Zone due to the impact of the buttress, which increased the inferred underground resources by 86,000 contained ounces to 1.3 million contained ounces (3.8 Mt at 10.7 g/t Au); however, the inferred underground resources at the Stockwork Zone declined to an estimated 294,000 contained ounces (0.8 Mt at 11.8 g/t Au) reflecting 411,000 contained ounces being reallocated to open pit indicated resources.

The 2014 year-end resource estimates for Gatsuurt, ATO and Ulaan Bulag properties in Mongolia are unchanged from 2013 year-end estimates.

Table 1
Centerra Gold Inc.
2014 Year-End Gold Reserve and Resource Summary
(as of December 31, 2014)

Table 1 (continued)
2014 Year-End Polymetallic Resource Summary
(as of December 31, 2014)

Table 2 
Centerra Gold Inc. 
Reconciliation of Gold Reserves and Resources 
(in thousands of ounces of contained gold) ^{(8) (9)}

Exploration Update

Turkey

Öksüt Project
During the fourth quarter of 2014 thirteen diamond drill holes were completed to further test the Keltepe and Güneytepe gold deposits and the Keltepe NW prospect area. Year to date, sixty-five diamond drill holes were completed; fifty of these holes were drilled for exploration purposes, seven PQ holes for metallurgical samples and eight boreholes were drilled to collect geotechnical information which has now been incorporated in the ongoing feasibility study.

Along with the diamond drilling, during the fourth quarter of 2014 additional RC drilling was done to test geophysical targets proximal to the defined gold resources previously outlined. For the year, a total of fifty-four RC drill holes were completed.

The diamond drilling that was completed during 2014 at the Keltepe deposit was largely focused on expanding the resources. Exploration drill holes were concentrated along the southern margin of the deposit and intersections of oxidized gold mineralization in four of these holes resulted in the southeast portion of the deposit being extended by 100 metres to the southeast. Based on the mineralized intercepts in drill holes ODD248 and ODD0255, which are highlighted below, the Keltepe deposit remains open in the southeast direction.

Drill holes ODD0248 and ODD0255 were drilled to follow up on positive results obtained by holes ODD0205 and ODD0217 which were previously reported in the Centerra Gold news release dated October 29, 2014.

At the Güneytepe deposit, which is located approximately 700 metres south of the Keltepe deposit, seven diamond drill holes were completed in 2014 as in-fill holes designed to convert Inferred Mineral Resources into Indicated Resources. Fourth quarter highlights of the drilling from the Güneytepe Zone of oxidized gold mineralization include:

The four Güneytepe drill holes described above were collared along the northern margin of the modelled resource, and the mineralized intersections made by these holes have resulted in an expansion of the deposit which remains open to the north. A diamond drilling program has been planned for 2015, in part to close off the northern and southeastern flanks of the Güneytepe and Keltepe deposits, respectively. 

In addition to the drilling that was done on the Keltepe and Güneytepe deposits, ten exploration diamond drill holes tested the Keltepe Northwest target which is centered approximately 400 metres north-northwest of Keltepe. Hydrothermally altered volcanic rocks were encountered by the majority of these drill holes and three holes intersected oxidized gold mineralization similar to that found in the Keltepe deposit. Highlights of the drilling completed in 2014 on the Keltepe Northwest alteration zone include:

A complete listing of the drill results and supporting maps for the Öksüt Project have been filed on the System for Electronic Document Analysis and Retrieval ('SEDAR') at www.sedar.com and are available at the Company's web site at: www.centerragold.com.

Mongolia

ATO Project
During 2014, exploration programs, including extensive mechanical trenching and diamond drilling, were conducted in areas of the ATO mining license and on adjoining exploration licenses. In total 21 diamond core holes were completed and also 106 shallow, grid-controlled holes were drilled to collect bedrock samples for a geochemical survey. 

Many of the trenches exposed weak, variably oxidized gold ± lead-zinc mineralization hosted in granitic intrusive rocks, hornfelsed sedimentary rocks and intrusion-related exoskarn rocks. The diamond drill holes completed in 2014 tested beneath the zones of strongest alteration and mineralization observed in the trenches, but failed to intersect economically significant mineralization of any kind. The best assay results from the 2014 drilling program were obtained in two drill holes that tested the Bayanmunkh East granite-hosted target located 20 kilometres northeast of the ATO deposit. Noted intervals of gold mineralization are from:

The results of the 2014 drilling campaign at the ATO project have not changed the mineral resource estimates that were reported at December 31, 2013, therefore the 2014 year-end mineral resource estimates for the ATO project remain unchanged.

To view the graphics, maps/drill sections and complete drill results discussed in this news release, please visit the following link:
http://file.marketwire.com/release/Q4%202014%20Oksut%20Press%20Release%20v2.pdf  or visit the Company's web site at: www.centerragold.com.

Material Assumptions and Risks:
Material assumptions or factors used to estimate reserves in this news release include the following:

• a gold price of $1,300 per ounce,
• exchange rates:
• $1USD:$1.10 CAD
• $1USD:58 Kyrgyz som
• $1USD:1,815 Mongolian tugriks
• $1USD:0.77 Euro
• diesel fuel price assumption:
• $0.70/litre at Kumtor

The assumed diesel price of $0.70/litre at Kumtor assumes that no Russian export duty will be paid on the fuel exports from Russia to the Kyrgyz Republic. Diesel fuel is sourced from separate Russian suppliers for both sites and only loosely correlates with world oil prices. The diesel fuel price assumptions were made when the price of oil was approximately $77 per barrel.

Other material assumptions were used in this news release. These material assumptions include the following:

• That current discussions between the Government of the Kyrgyz Republic and Centerra regarding a potential restructuring of the Kumtor Project will result in a mutually satisfactory solution to the outstanding matters affecting the Kumtor Project, which is fair to all of Centerra's shareholders, and that such proposal will receive all necessary legal and regulatory approvals under Kyrgyz law and/or Canadian law.
• All mine plans and related permits and authorizations at Kumtor receive timely approval from all relevant governmental agencies.
• The buttress constructed at the bottom of the Davidov glacier continues to function as planned.
• Any recurrence of political or civil unrest in the Kyrgyz Republic will not impact operations, including movement of people, supplies and gold shipments to and from the Kumtor mine and/or power to the mine site.
• Any actions taken by the Kyrgyz Republic Parliament and Government do not have a material impact on operations or financial results. This includes any action being taken by the Parliament or Government to cancel the agreements governing the Kumtor Project, or taking any actions which would be inconsistent with the rights of Centerra or Kumtor Gold Company (KGC) under the project agreements.
• The previously disclosed environmental claims received from the Kyrgyz regulatory authorities in the aggregate amount of approximately $450 million (at then current exchange rates) and the claims of the Kyrgyz Republic's General Prosecutor's Office purporting to invalidate land use rights and/or seize land at Kumtor and to unwind the $200 million inter-company dividend declared and paid by KGC to Centerra in December 2013, and any further claims, whether alleging environmental allegations or otherwise, are resolved without material impact on Centerra's operations or financial results.
• The movement in the Central Valley Waste Dump at Kumtor, referred to in the 2013 Annual Information Form, does not accelerate and will be managed to ensure continued safe operations, without impact to gold production, including the successful demolition of buildings and relocation of certain other infrastructure as planned.
• Grades and recoveries at Kumtor will remain consistent with the 2015 production plan to achieve the forecast gold production.
• The Company is able to manage the risks associated with the increased height of the pit walls at Kumtor.
• The dewatering program at Kumtor continues to produce the expected results and the water management system works as planned.
• The Kumtor ball mill and the rotated ring gear or replacement ring gear continue to operate as expected.
• Prices of key consumables, costs of power and water usage fees are not significantly higher than prices assumed in planning.
• No unplanned delays in or interruption of scheduled production from our mines, including due to civil unrest, natural phenomena, regulatory or political disputes, equipment breakdown or other developmental and operational risks.

The Company cannot give any assurances in this regard.

Reserve and resource estimates are forward-looking information and are based on key assumptions and subject to material risk factors. If any event arising from these risks occurs, the Company's business, prospects, financial condition, results of operations or cash flows and the market price of Centerra's shares could be adversely affected. Additional risks and uncertainties not currently known to the Company, or that are currently deemed immaterial, may also materially and adversely affect the Company's business operations, prospects, financial condition, results of operations or cash flows and the market price of Centerra's shares. See the section entitled "Risk Factors" in the Company's most recently filed Annual Information Form (the "2013 Annual Information Form"), available on SEDAR at www.sedar.com and see also the discussion below under the heading "Cautionary Note Regarding Forward-looking Information".

Qualified Person & QA/QC
All reserve and resource estimates, production information and other scientific and technical information in this news release were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and were prepared, reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Gordon Reid, Professional Engineer and Centerra's Vice-President and Chief Operating Officer, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs are used with the exception of the Kumtor project as described in its technical report dated December 20, 2012.

Exploration information and related scientific and technical information in this news release regarding the Öksüt project were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101 and were prepared, reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Malcolm Stallman, Member of the Australasian Institute of Mining and Metallurgy (AusIMM), Centerra's Regional Exploration Manager -- Western Asia and Eastern Europe, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs are used.

Exploration information and related scientific and technical information in this news release regarding the ATO project were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101 and were prepared, reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Boris Kotlyar, Certified Professional Geologist, Centerra's Director, Asia Exploration, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs are used.

The Kumtor deposit is described in Centerra's 2013 Annual Information Form and a technical report dated December 20, 2012, which is filed on SEDAR at www.sedar.com. The technical report is prepared in accordance with NI 43-101 and describes the exploration history, geology and style of gold mineralization at the Kumtor deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Kumtor site are described in the technical report.

The Boroo deposit is described in Centerra's 2013 Annual Information Form and a technical report dated December 17, 2009 prepared in accordance with NI 43-101, which is available on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Boroo deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Boroo site are the same as, or similar to, those described in the technical report.

The Gatsuurt deposit is described in Centerra's 2013 Annual Information Form and a technical report dated May 9, 2006 prepared in accordance with NI 43-101. The technical report has been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Gatsuurt deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Gatsuurt project are the same as, or similar to, those described in the technical report.

Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts, and the documents incorporated by reference herein, may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things, mineral reserve and mineral resource estimates; methods of processing material at the Öksüt Project; the estimated timing for the completion of an environmental impact assessment and feasibility study at the Öksüt Project; further exploration drilling on the Gatsuurt Project; the expected level of impairment on goodwill at Kumtor; infill and geotechnical drilling, continued studies to improve metallurgical recoveries, and updating of the geotechnical model at the Kumtor Project; the filing of an independent NI 43-101 technical report relating to the Kumtor Project; expected recoveries from the Boroo project in 2015; additional drilling planned for the Güneytepe and Keltepe deposits, and the closing of the acquisition of a 50% interest in the Premier Gold Mines' Trans-Canada Property.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward looking information. Factors that could cause actual results or events to differ materially from current expectations include, among other things: (A) political and regulatory risks, including the political risks associated with the Company's principal operations in the Kyrgyz Republic and Mongolia, resource nationalism, the impact of changes in, or to the more aggressive enforcement of, laws, regulations and government practices in the jurisdictions in which the Company operates, the impact of any actions taken by the Government and Parliament relating to the Kumtor Project Agreement, any impact on the purported cancellation of Kumtor's land use rights at the Kumtor Project, the impact of the failure of relevant Kyrgyz Government agencies to provide approvals, required permits and authorizations, the ability of Stans Energy Corp. to seize Centerra shares held by Kyrgyzaltyn and the ability of the Company to complete the proposed restructuring of the Kumtor Project in accordance with the Heads of Agreement on the Kumtor Restructuring of January 18, 2014, the effect of the Water and Forest Law on the Company's operations in Mongolia, the impact of continued scrutiny from Mongolian regulatory authorities on the Company's Boroo Project, the impact of changes to, the increased enforcement of, environmental laws and regulations relating to the Company's operations, the impact of any sanctions imposed by Canada, the United States or other jurisdictions against various Russian individuals and entities; (B) risks related to operational matters and geotechnical issues, including the movement of the Davidov Glacier and the Davidov Waste-rock Dump (Central Valley Waste Dump), the waste and ice movement at the Kumtor Project and the Company's continued ability to successfully manage such matters, including by the building of a buttress at the bottom of the Davidov Glacier, the occurrence of further ground movements at the Kumtor Project, the timing of the infrastructure move potentially impacting the maintenance of the mobile fleet and its availability, the success of the Company's future exploration and development activities, including the financial and political risks inherent in carrying out exploration activities, the adequacy of the Company's insurance to mitigate operational risks, mechanical breakdowns, the Company's ability to obtain the necessary permits and authorizations to (among other things) raise the tailings dam at the Kumtor Project to the required height, the Company's ability to replace its mineral reserves, the occurrence of any labour unrest or disturbance and the ability of the Company to successfully re-negotiate collective agreements when required, seismic activity in the vicinity of the Company's operations in the Kyrgyz Republic and Mongolia, long lead times required for equipment and supplies given the remote location of the Company's properties, reliance on a limited number of suppliers for certain consumables, equipment and components, illegal mining on the Company's Mongolian properties, the Company's ability to accurately predict decommissioning and reclamation costs, the Company's ability to attract and retain qualified personnel, competition for mineral acquisition opportunities, and risks associated with the conduct of joint ventures; (C) risks relating to financial matters including the sensitivity of the Company's business to the volatility of gold prices, the imprecision of the Company's mineral reserves and resources estimates and the assumptions they rely on, the accuracy of the Company's production and cost estimates, the impact of restrictive covenants in the Company's revolving credit facility which may, among other things, restrict the Company from pursuing certain business activities, the Company's ability to obtain future financing, the impact of global financial conditions, the impact of currency fluctuations, the effect of market conditions on the Company's short-term investments, the Company's ability to make payments including any payments of principal and interest on the Company's debt facilities depends on the cash flow of its subsidiaries; and (D) risks related to environmental and safety matters, including the ability to continue obtaining necessary operating and environmental permits, licenses and approvals, the impact of the significant environmental claims made in December 2012 and February 2013 relating to the Kumtor Project, inherent risks associated with using sodium cyanide in the mining operations; legal and other factors such as litigation, defects in title in connection with the Company's properties, the Company's ability to enforce its legal rights, risks associated with having a significant shareholder, and possible director conflicts of interest. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended. See "Risk Factors" in the Company's 2013 Annual Information Form available on SEDAR at www.sedar.com.

Furthermore, market price fluctuations in gold, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and may ultimately result in a restatement of reserves. The extent to which resources may ultimately be reclassified as proven or probable reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors which may change over time always influence the evaluation of reserves or resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable reserves.

Centerra's mineral reserve and mineral resource figures are estimates and Centerra can provide no assurances that the indicated levels of gold will be produced or that Centerra will receive the gold price assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Centerra believes that these mineral reserve and mineral resource estimates are well established and the best estimates of Centerra's management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences which may ultimately prove unreliable. If Centerra's reserve or reserve estimates for its properties are inaccurate or are reduced in the future, this could have an adverse impact on Centerra's future cash flows, earnings, results or operations and financial condition.

Centerra estimates the future mine life of its operations. Centerra can give no assurance that mine life estimates will be achieved. Failure to achieve these estimates could have an adverse impact on Centerra's future cash flows, earnings, results of operations and financial condition.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference.

Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward looking information. Forward-looking information is as of February 9, 2015. Centerra assumes no obligation to update or revise forward looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

About Centerra
Centerra Gold Inc. is a North-American based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, Canada and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in Toronto, Ontario, Canada.

Additional information on Centerra is available on the Company's web site at www.centerragold.com and at SEDAR at www.sedar.com.