Mr. John Pearson reports

PARLIAMENT OF KYRGYZ REPUBLIC ADOPTS RESOLUTION ON NON-BINDING HEADS OF AGREEMENT WITH THE KYRGYZ GOVERNMENT

The Parliament of the Kyrgyz Republic has adopted a resolution after completing a review of the previously announced non-binding heads of agreement (HOA) entered into among Centerra Gold Inc., the government of the Kyrgyz Republic and Kyrgyzaltyn JSC in connection with a potential restructuring transaction under which Kyrgyzaltyn would exchange its 32.7-per-cent equity interest in Centerra for a 50-per-cent interest in a joint venture company that would own the Kumtor project. The material terms of the HOA are summarized in Centerra's news release dated Dec. 24, 2013.

While parliament's resolution appears to support the concept of the restructuring described in the HOA, the resolution also contains a number of recommendations that are materially inconsistent with the terms of the HOA. Among other things, the resolution calls for further audits of the Kumtor operation and for the government and the general prosecutor's office to continue pursuing claims for environmental and economic damages, which the company disputes.

An unofficial translation of the parliamentary resolution will be posted on SEDAR.

Centerra expects to engage in further discussions with the government relating to the potential restructuring transaction reflected in the HOA and notes that any definitive agreements for a potential restructuring remain subject to required approvals in the Kyrgyz Republic, including of the government and Parliament of the Kyrgyz Republic, the recommendation of the Centerra special committee and the approval of the Centerra board, as well as compliance with all applicable legal and regulatory requirements and approvals, including a formal independent valuation and required shareholder approval.

Centerra remains committed to continuing discussions with the Kyrgyz government; however, there can be no assurance that the material differences between the parliamentary resolution and the HOA can be resolved, that any definitive agreements will be reached between the parties or that any agreed upon transaction will receive required approvals or will be consummated. The company can give no assurances in this regard. The inability of Centerra to successfully resolve all outstanding matters affecting the Kumtor project would have a material adverse impact on Centerra's future cash flows, earnings, results of operations and financial conditions.

We seek Safe Harbor.