Mr. Paul Tomory reports

CENTERRA GOLD REPORTS SECOND QUARTER RESULTS AND PROVIDES UPDATED 2023 GUIDANCE INCLUDING OKSUT

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

Second Quarter Highlights

Operations:

• Production: Second quarter 2023 gold production of 61,622 ounces, including production from Mount Milligan Mine ("Mount Milligan"), which achieved record throughput in May and June in the process plant, and a partial month of production from the Oksut Mine ("Oksut"). Copper production in the quarter was 13.8 million pounds.
• Sales: Second quarter 2023 gold sales of 48,155 ounces at an average realized market price of $1,532 per ounce and copper sales of 12.8 million pounds at an average realized copper price of $2.56 per pound. Gold sales were 22% lower than gold production in the quarter due to timing related to Turkish national holidays at the end of June 2023.
• Costs: Consolidated gold production costs were $1,066 per ounce and all-in sustaining costs ("AISC") on by-product basisNG were $1,711 per ounce for the quarter. Costs were primarily impacted by mine sequencing and other timing factors, in addition to general inflation on labour and consumable costs. In the quarter, the weakening of the Canadian dollar, which offset some of the cost increases at Mount Milligan, was mitigated by a loss on the Company's foreign exchange hedging program.
• Capital expenditures NG : Additions to property, plant, equipment ("PPE") and sustaining capital expendituresNG of $20.8 million and $20.7 million, respectively. Sustaining capital expendituresNG in the second quarter 2023 included costs for equipment overhauls and the tailings storage facility ("TSF") step out at Mount Milligan, as well as capitalized stripping costs at Oksut.
• Updated production guidance: Centerra's 2023 consolidated gold production guidance has been updated following the resumption of operations at Oksut and is now expected to be between 340,000 to 360,000 ounces, including estimated gold production of 180,000 to 190,000 ounces at Oksut and 160,000 to 170,000 ounces at Mount Milligan. Although guidance for Mount Milligan is unchanged, production is trending to near the low end of the range. Copper production guidance is unchanged and is expected to be within the range of 60 to 70 million pounds.
• Updated cost guidance: Centerra's 2023 consolidated gold production costs are expected to be $700 to $750 per ounce, reflecting the full restart of gold production at Oksut, with lower unit costs expected during the second half of 2023. Full year 2023 gold production costs at Oksut are expected to be $450 to $500 per ounce and the Company has increased full year gold production costs at Mount Milligan which are now expected to be $1,000 to $1,050 per ounce, up from $900 to $950 per ounce previously. Full year 2023 AISC on a by-product basisNG is expected to be $1,000 to $1,050 per ounce, including $650 to $700 per ounce at Oksut and $1,125 to $1,175 per ounce at Mount Milligan, an increase from previous guidance of $1,075 to $1,125.

Financial:

• Net loss: Net loss of $39.7 million or $0.18 per share and adjusted net lossNG of $42.3 million or $0.20 per share. Adjustments include $8.3 million of reclamation provision revaluation recovery at sites on care and maintenance and $5.7 million of deferred income tax expense resulting from the effect of foreign exchange rate changes on monetary assets and liabilities in the determination of taxable income related to the Oksut and the Mount Milligan mines.
• Free cash flow NG : Cash provided by operating activities of $33.4 million and free cash flowNG of $10.6 million, including a $35 million reduction in working capital from the Langeloth Metallurgical Facility.
• Cash and cash equivalents: Total liquidity of $799.9 million, representing a cash balance of $401.8 million and $398.1 million available under a corporate credit facility as at June 30, 2023.
• Dividend: Quarterly dividend declared of C$0.07 per common share

Other:

• Oksut: On May 31, 2023, the Turkish Ministry of Environment, Urbanization and Climate Change (the "Ministry of Environment") approved an amended Environmental Impact Assessment ("EIA") for Oksut and the Company resumed full operations on June 5, 2023.
• Share buy-backs: Under Centerra's Normal Course Issuer Bid ("NCIB") program, the Company repurchased and cancelled 1,271,900 common shares for the total consideration of $7.3 million (C$9.7 million) in the second quarter 2023. The Company continued to make purchases via an Automatic Share Purchase Plan in July 2023.
• Executive Appointment: In May 2023, the Company appointed Helene Timpano as its new Executive Vice-President, Strategy & Corporate Development.

President and CEO, Paul Tomory, commented, "The second quarter of 2023 was pivotal for Centerra, as we achieved several milestones that should contribute to stronger performance in the second half of the year. Most notably, at the end of May, we received approval from the Turkish Ministry of Environment for Oksut's amended EIA. Having received these regulatory approvals, we restarted full operations at the mine in early June and produced 20,503 ounces of gold within the month. Looking ahead, Oksut's gold production guidance is between 180,000 and 190,000 ounces of gold in 2023. At Mount Milligan, we sequenced out of the ore-waste transition zone of the mine and are on track to access higher grade copper and gold ore in the second half of the year, which should help to bolster the production profile going forward."

"We are in the process of evaluating all Centerra's assets with the intent of developing a comprehensive value maximizing strategic plan. Key aspects of this plan will include a view on the Molybdenum Business Unit, with an assessment of the potential for a restart of operations at the Thompson Creek molybdenum mine in Idaho, continuing to drive operational and technical improvements at Mount Milligan, repositioning our approach at the Goldfield project to target higher returns, and assessing opportunities for growth in gold production. This new strategy will focus on safe and sustainable operations while maximizing value for our shareholders and our local stakeholders."

2023 Outlook

Centerra's initial 2023 guidance was disclosed in January 2023, however, as a result of restarting activities at Oksut and changes in the unit costs and sustaining capital expendituresNG at Mount Milligan, the Company has revised its outlook. The Company also updated costs relating to exploration activities, including the Goldfield Project.

The Company's updated 2023 outlook and comparative actual results for the six months ended June 30, 2023 are set out in the table below.

Mount Milligan

Mount Milligan produced 41,119 ounces of gold, a 24% increase from last quarter, and 13.8 million pounds of copper in the second quarter of 2023. Production in the quarter was impacted by lower than planned metal recoveries due to mine sequencing, which resulted in more oxide ore than planned in an ore-waste transition zone in Phase 9. Mount Milligan is now deeper in Phase 9 and has mostly mined through the ore-waste transition zone. Copper head grades are expected to improve in the second half of the year as the mine progresses deeper, which is expected to improve metal recoveries compared to the first half of the year.

During the second quarter of 2023, mining activities were carried out in phases 4, 5, 6, 7, and 9 of the open pit, with phase 6 being mainly composed of top soil stripping and phase 5 waste being used to construct the TSF. A total of 12.9 million tonnes were mined in the second quarter of 2023. Process plant throughput for the second quarter of 2023 was 5.6 million tonnes and averaged 61,482 tonnes per day. The Mount Milligan processing plant achieved record tonnes processed in the months of May and June 2023.

The Company remains on track to access the higher-grade copper and gold from phase 7 and phase 9 in the second half of the year. Given the lower than planned production in the first quarter, the Company's 2023 gold production guidance remains unchanged at 160,000 to 170,000 ounces, although trending near the low end of the range. Copper production guidance is tracking towards the mid-point of 60 to 70 million pounds for the year. Mount Milligan's 2023 gold and copper production is expected to be back-end weighted. Full year guidance includes a planned mill shutdown in the third quarter 2023. Mount Milligan is expected to have four concentrate shipments in the third quarter, and another four shipments in the fourth quarter. The timing of shipments and associated sales between quarters may be affected by logistical delays from the union strike in the Port of Vancouver.

Gold production costs in the second quarter 2023 were $1,255 per ounce driven by higher mining costs and a decrease in gold ounces sold. Mining costs in the quarter were impacted by mine sequencing and other timing factors, in addition to general inflation on labour and consumable costs. The benefits of a weakening Canadian dollar on costs in the quarter were offset by a loss on the Corporate foreign exchange hedge program. AISC on a by-product basisNG was $1,599 per ounce was driven by slightly higher operating costs, lower copper credits as a result of lower sales, partially offset by lower sustaining capital expenditures.

Full year 2023 gold production costs at Mount Milligan have been increased and are now expected to be $1,000 to $1,050 per ounce, up from $900 to $950 per ounce previously. Full year 2023 AISC on a by-product basisNG guidance at Mount Milligan has also been increased to be in the range of $1,125 to $1,175 per ounce, up from $1,075 to $1,125 per ounce previously. This was driven by an increase in gold production costs per ounce, partially offset by lower sustaining capital expenditures. Full year 2023 capital guidance at Mount Milligan has been lowered to between $50 to $60 million, down from $65 to $70 million previously. This was driven by lower capitalized costs for the TSF as a result of lower than planned TSF step-out tonnes and a deferral of some capital projects to 2024.

Oksut

Oksut resumed its full operations in early June 2023 following an approval of the amended EIA. During the month of June 2023, the mine started ramping up its crushing, stacking, and processing activities and produced 20,503 ounces in the second quarter of 2023. As of June 30, 2023, there were approximately 80,000 recoverable ounces in stored gold-in-carbon inventory and approximately 20,000 ounces in the adsorption, desorption and recovery ("ADR") plant inventory. In addition, approximately 200,000 recoverable ounces of gold remain in ore stockpiles and on the heap leach pad as at June 30, 2023. The mine stacked 0.3 million tonnes at an average grade of 1.25 g/t, containing 10,546 ounces of gold in the second quarter.

Full year production guidance at Oksut is expected to be within the range of 180,000 to 190,000 ounces of gold and it is expected that production levels will continue to ramp up in the second half of the year, with gold production approximately split 45% and 55% in the third and fourth quarters, respectively.

Gold production costs and AISC on a by-product basisNG for the quarter were $404 per ounce and $1,143 per ounce, respectively, and full-year gold production costs are expected to be in the range of $450 to $500 per ounce. Remaining cash processing costs associated with the 80,000 recoverable ounces in gold-in-carbon inventory are expected to be less than $50 per ounce, while cash processing costs associated with the 200,000 recoverable ounces of gold in ore stockpiles and on the heap leach pad are expected to be less than $225 and $100 per ounce, respectively.

On July 15, 2023, the Republic of Turkiye increased the corporate income tax rate applicable to Oksut from 20% to 25%. The change applies to earnings beginning January 1, 2023 and subsequent taxation periods. The Company estimated that this change will result in an incremental $0.9 million in cash taxes to be paid with respect to the income earned in the first half 2023 at Oksut. The Company will reflect the impact of the change in tax law in subsequent reporting periods.

To manage gold price risk during an anticipated short-term concentrated gold sales period in Turkiye, the Company purchased gold put option contracts in the second quarter totaling 75,000 ounces at an average strike price of $1,942 per ounce. The options allow full participation to the upside price movements in the gold price while protecting against downward movements in pricing for a portion of expected gold sales in the period from July to October 2023.

Molybdenum Business Unit

In the second quarter 2023, the Molybdenum Business Unit sold approximately 3.0 million pounds of molybdenum, generating revenue of $76.1 million with an average market price of $21.23 per pound. In the first quarter of 2023, the Langeloth Facility required a $67 million investment in working capital to finance its business. Approximately $35 million of the investment in working capital was released during the second quarter of 2023. It is expected that additional releases from working capital will occur during the remaining six months of 2023, provided molybdenum prices remain at their current levels.

Goldfield Project

As a result of a continuing strategic review of the Goldfield project, the Company has made the decision to focus exploration activities only on oxide and transition material, principally in the Gemfield and nearby deposits. The Company will take additional time to perform exploration activities in its large, under explored land position, targeting oxide mineralization that could be incorporated into the initial resource estimate when ready. As a result, the Company's 2023 exploration guidance at Goldfield has been increased to $16 to $20 million, up from $10 million previously.

Exploration

Exploration expenditures in the quarter were $19.1 million and included surface sampling, geological mapping, geophysical surveying, and drilling at the Company's various projects and earn-in properties, targeting gold and copper mineralization in Canada, Turkiye, and the United States of America. The activities were primarily focused on drilling programs at the Goldfield Project, Mount Milligan, and at greenfield projects in the USA and Turkiye.

Conference Call Details

Centerra invites you to join its 2023 second quarter conference call on Tuesday, August 1, 2023 at 9:00am Eastern Time. The call is open to all investors and the media. To join the call, please use the dial-in details found below.

Presentation slides will be available on Centerra's website.

Conference Call

Date & Time:  August 1, 2023 at 9:00 am Eastern

Toll-free NA:  1-800-319-4610

International:  604-638-5340

Replay

Toll-free:  1-855-669-9658

International:  412-317-0088

Passcode:  0325v

For detailed information on the results contained within this release, please refer to the Company's Management's Discussion and Analysis ("MD&A") and financial statements for the quarter ended June 30, 2023 that are available on the Company's website or SEDAR.

About Centerra

Centerra Gold Inc. is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Turkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Oksut Mine in Turkiye. The Company also owns the Goldfield Project in Nevada, United States, 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 ("TSX") under the symbol CG and on the New York Stock Exchange ("NYSE") under the symbol CGAU. The Company is based in Toronto, Ontario, Canada.

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