Mr. Paul Tomory reports

CENTERRA GOLD REPORTS FIRST QUARTER RESULTS

Centerra Gold Inc. has released its first quarter 2023 results. All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100-per-cent basis, unless otherwise stated.

Significant financial and operating results of the first quarter ended March 31, 2023, included:

• Net loss for the quarter of $73.5-million, or 34 cents per common share, including (net of tax): a non-cash reclamation expense at the care and maintenance sites of $15.6-million, or seven cents per common share; exploration and evaluation costs at the Goldfield project of $11.7-million, or six cents per common share; and standby cash costs at the Oksut mine of $7.8-million, or four cents per common share. Mining costs at the Oksut mine were expensed in the period due to the focus on waste stripping activities with limited mining, crushing and stacking of ore. Adjusted net loss for the quarter was $52.9-million, or 24 cents common share.
• Cash used in operating activities and free cash flow deficit for the quarter of $99.8-million and $105.9-million, respectively, were primarily due to working capital requirements at the molybdenum business unit and the suspension of production activities at the Oksut mine. Total operating cash flow deficit for the quarter was driven by a $75.8-million increase in working capital. Mount Milligan mine generated cash from mine operating activities and free cash flow of $27.6-million and $24.6-million, respectively, for the quarter. Cash used in operating activities at the Oksut mine was $20.8-million for the quarter. Cash used in operating activities at the molybdenum business unit was $76.6-million for the quarter, primarily due to an increase in working capital, as a result of higher molybdenum prices. This is expected to partially reverse through the remainder of the year if molybdenum prices remain at their current levels.
• Gold production and copper production for the quarter at the Mount Milligan mine was 33,215 ounces and 13.4 million pounds, respectively. Lower production during the quarter was driven by lower plant throughput primarily due to a planned mill maintenance shutdown as well as material handling issues during winter months. Additionally, sequencing of the mining phases during the quarter resulted in lower-than-expected ore grades and differences in the ore-waste transition zone which also impacted feed grades and metal recoveries. Due to mining activities remaining at expected production rates for the quarter, the company continues to be on track to access the higher-grade copper and gold from phase 7 and phase 9 in the second half of the year, but given lower-than-planned production during the first quarter, the company expects 2023 gold production to be near the low end of guidance. Copper production for the year is expected to be at the midpoint of guidance.
• The regulatory review of Oksut mine's amended environmental impact assessment (EIA) remains on track. The company completed its technical review meeting with local authorities at the end of March and posted its EIA for public comment in late April, with no significant comments received. With all review steps now completed, the EIA has been submitted for final ministry approval.
• The company's mercury abatement retrofit to the Oksut mine's ADR plant was completed. The system was tested in March, 2023, under the supervision of the Turkish Ministry of Environment Urbanization and Climate Change. Subject to receipt of the final regulatory approvals and the restart of the ADR plant, the company will be in a position to begin processing the gold-in-carbon inventory on hand of approximately 100,000 recoverable ounces. The ADR plant has the capacity to produce gold at a rate of approximately 35,000 ounces per month.
• Goldfield project significantly advanced drilling activities in the first quarter of 2023, with the large portion of drilling costs that were planned for the year incurred during the quarter. The company remains on track to issue an initial resource estimate by midyear 2023, followed by an updated resource estimate accompanied by a feasibility study.
• New president and chief executive officer Paul Tomory joined the company, effective May 1, 2023.
• Strong balance sheet with a cash and cash equivalents position at the quarter-end of $412.1-million.
• Gold production costs for the quarter of $1,124 per ounce, due to higher allocation of costs to gold from changes in the relative market prices of gold and copper, and mill shutdown activities.
• Copper production costs for the quarter of $2.66 per pound.
• All-in sustaining costs on a byproduct basis for the quarter of $1,383 per ounce, due to higher gold production costs at the Mount Milligan mine.
• Quarterly dividend declared of seven Canadian cents per common share.

Chair of the board of directors and CEO discussion

Michael Parrett, chair of the board of directors, stated: "On behalf of the board and our fellow shareholders I would like to thank Paul Wright for his leadership of Centerra as the interim president and CEO, since September, 2022. We look forward to Paul's continued insight, input and contribution on the board of directors. I am also pleased to welcome Paul Tomory, who assumed the role of president and chief executive officer on May 1, 2023. We are delighted to have him lead Centerra at this significant stage of the company's journey."

Mr. Tomory, president and chief executive officer of Centerra, stated: "Since starting as president and chief executive officer on May 1, 2023, having spent time with our corporate and sites teams, and having visited the Mount Milligan mine, I am excited for the future of the company. Over the weeks and months ahead, I look forward to visiting the Oksut mine and our U.S. assets and engaging with many of our shareholders and other stakeholders, with a focus on delivering sustainable value and growth at Centerra."

Mr. Tomory continued: "In the first quarter of 2023, the company continued to demonstrate that safety remains Centerra's top priority, with a number of our sites achieving milestones without a lost time or reportable injury. In Turkey, I'm pleased to announce that we have completed the mercury abatement retrofit to the Oksut mine's ADR plant and that the system has been tested under the supervision of the Turkish ministry. The regulatory review of Oksut mine's amended EIA remains on track; all review steps have been completed and it has been submitted for final ministry approval. Subject to receipt of the final approvals of the EIA and ADR plant, the company will be well positioned to begin processing the approximately 100,000 recoverable ounces of gold-in-carbon inventory on hand. We will then be able to shift our focus to the additional approximately 200,000 recoverable ounces of gold in the Oksut mine's gold-in-ore stockpiles and on the heap leach pad."

Mr. Tomory stated: "Pivoting to Centerra's other operating mine in British Colombia, there were lower levels of copper and gold production at the Mount Milligan mine in the first quarter due to a combination of the grade profile delivered to the mill from mine sequencing that also impacted lower metal recoveries, a planned mill maintenance shutdown and challenges with material handling during winter months. As a result, the company now expects gold production to be near the low end of guidance whilst copper production is currently tracking towards the midpoint of guidance. Mine sequencing remains on track to access the higher-grade copper and gold ore in the second half of the year, resulting in back-end weighted production."

Mr. Tomory concluded, "Lastly, I'm happy to announce that Lisa Wilkinson has joined the company as vice-president, investor relations and corporate communications, and will lead these functions going forward."

Update on Oksut mine operations

In March, 2022, Centerra announced it had temporarily suspended gold dore bar production at the Oksut mine due to mercury detected in the gold room at the ADR plant. From the date of suspension of gold room operations through to the end of 2022, the company built up gold-in-carbon inventory of approximately 100,000 recoverable ounces and 200,000 recoverable ounces of gold-in-ore stockpiles and on the heap leach pad. For the gold-in-carbon inventory, substantially all the production costs have already been incurred. Once operations resume, the ADR plant is expected to have sufficient production capacity to process up to approximately 35,000 ounces of gold per month. The company has completed construction of a mercury abatement system to allow processing of mercury-bearing ores. In February and March, 2023, the ADR facility underwent inspection and testing by the Turkish Ministry of Environment, Urbanization and Climate Change and the Ministry of Labour and Social Security. The company continues to work with relevant authorities to obtain the required approvals to restart gold room operations at the ADR plant.

Permitting

Following inspection by and several discussions with the Ministry of Environment in 2022, the company determined that an updated EIA should be prepared and submitted to clarify various production and other capacity limits for the Oksut mine and to align the EIA production levels with current operating plans. The updated EIA was submitted in January, 2023. The company completed its technical review meeting with local authorities at the end of March and posted its EIA for public comment in late April, with no significant comments received. With all review steps now completed, the EIA has been submitted for final ministry approval. The company continues to work with Turkish officials and other stakeholders on the approval of its EIA and other permits that may be required to allow for a timely full restart of all operations.

The Oksut mine suspended leaching of ore on the heap leach pad and ceased using activated carbon on site as of late August, 2022, though mining, crushing and stacking activities continued in line with existing EIA limits for the remainder of 2022. After building substantial inventories of gold-in-carbon, ore stacked on the heap leach pad and ore stockpiles, crushing and stacking activities were paused during the first quarter of 2023 until the new EIA is received. The Oksut mine is currently focusing mining activities on the phase 5 pit wall pushback to expand the Keltepe pit.

In January, 2023, the Oksut mine received notice of approval of its operating licence extension application for a period of 10 years, as well as approval of an enlarged grazing land permit to allow for the expansion of the Keltepe and Guneytepe pits, as planned. As noted above, Centerra is involved in several permitting processes with Turkish regulatory authorities and notes that a general election in Turkey on May 14, 2023, could result in administrative delays to such processes. The company will continue to diligently pursue approvals of an amended EIA and all required permits for the Oksut mine.

Conference call

Centerra invites you to join its 2023 first quarter conference call on Monday, May 15, 2023, at 11 a.m. Eastern Time. The call is open to all investors and the media. To join the call, please dial toll-free in North America 1-800-954-0651. International participants may access the call at 1-416-620-9188. Presentation slides will be available on Centerra's website. Alternatively, an audio feed webcast will be broadcast live by Notified and can be accessed live on Centerra's website. A recording will be available after the call and through telephone until midnight Eastern Time on May 29, 2023, by calling 1-416-626-4100 or 800-558-5253 and using passcode 22026857.

About Centerra Gold Inc.

Centerra Gold is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Turkey and other markets worldwide. Centerra operates two mines: the Mount Milligan mine in British Columbia, Canada, and the Oksut mine in Turkey. The company also owns the Goldfield project in Nevada, United States, and the Kemess underground project in British Columbia, Canada, and owns and operates the molybdenum business unit in the United States and Canada. Centerra's shares trade on the Toronto Stock Exchange under the symbol CG and on the New York Stock Exchange under the symbol CGAU. The company is based in Toronto, Ont., Canada.

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