Mr. Paul Tomory reports

CENTERRA GOLD ANNOUNCES STRATEGIC PLAN INCLUDING THOMPSON CREEK PREFEASIBILITY STUDY HIGHLIGHTS

Centerra Gold Inc. has released its strategic plan for each asset in the company's portfolio along with the company's approach to capital allocation. 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.

President and chief executive officer Paul Tomory commented: "We are excited to roll out our strategic plan that focuses on maximizing the value for each asset in our portfolio. The plan identifies the opportunities at each asset that will drive future value and growth for the company. Specifically, at Mount Milligan, we expect strong operational performance in the next few years, and we will work to optimize operations and maximize the value of the large deposit. At Oksut, our life-of-mine plan demonstrates particularly strong production and cost performance over the next two years with a steady gold production profile continuing throughout the life of mine. Our prefeasibility study on the Thompson Creek molybdenum mine supports a disciplined path to restarting operations and realizing significant vertical integration synergies with the Langeloth metallurgical facility. And finally, at the Goldfield project, we have decided to re-evaluate the project scope of work to achieve a lower-capital flowsheet and to maximize the returns on the project. Our exploration focus will now be on oxide and transition material, with the timing of an initial resource estimate contingent on exploration success and metallurgical test work.

"In conjunction with execution of the strategic plan, we have also developed a capital allocation strategy which focuses on returning capital to shareholders through dividends and share buybacks, investing in internal projects and exploration within our current portfolio, and evaluating external opportunities for growth. We believe that Centerra's exposure to gold and base metals is a differentiating factor; however, our strategic plan has us remaining a gold-focused company. Today's announcement provides a clear path to delivering safe and sustainable operations and creating value for our shareholders and local stakeholders in the future."

Mount Milligan mine

Mount Milligan's production in the first half of 2023 was impacted by mine sequencing and lower-than-planned gold grades as a result of mining in an ore-waste transition zone, which caused lower metal recoveries and throughput challenges in the processing plant in the first quarter. The company has completed mining in the ore-waste transition zone in phase 9 and is currently mining the higher-grade copper and gold zones from phase 7 and phase 9 in the second half of 2023.

Centerra views Mount Milligan's substantial resource base as a strategic asset and is advancing work on productivity and cost-efficiencies in concert with mine plan optimization to offset some of the recent inflationary pressures that have impacted the industry. In parallel, Centerra is working to explore ways to maximize the value of the very large mineral endowment.

Oksut mine

As previously disclosed, Oksut resumed full operations on June 5, 2023. In June, 2023, the mine started ramping up its crushing, stacking and processing activities and produced 20,503 ounces during the month. Oksut continues to process gold-in-carbon inventory, and on July 31, 2023, Centerra issued 2023 gold production guidance of 180,000 to 190,000 ounces.

The company expects elevated production at Oksut through mid-2024, as the inventory and stockpiles are processed through the adsorption, desorption and recovery (ADR) plant, at which point the production levels are expected to return to steady state. The life-of-mine (LOM) plan, in the attached table, has been updated to reflect the restart of operations and other optimizations. The updated Oksut LOM will generate positive free cash flow, and the mine remains a strategic asset in Centerra's portfolio.

Molybdenum business unit

The molybdenum business unit (MBU) is a fully integrated business in North America with a long operating history. The MBU consists of the Thompson Creek mine in Idaho, the Endako mine in Northern British Columbia, a joint venture in which Centerra owns a 75-per-cent interest and the remaining 25 per cent is held by Sojitz Moly Resources Inc., and the Langeloth metallurgical facility near Pittsburgh, Pa. The two mines have been in care and maintenance since late 2014 and mid-2015, respectively, with significant infrastructure in place that is in excellent condition, while Langeloth has continued to operate at reduced capacity processing third party concentrates and selling finished molybdenum products.

The company has completed a prefeasibility study (PFS) on the restart of mining at Thompson Creek, with the objective of realizing value for the MBU. A restart of Thompson Creek, vertically integrated with operations at Langeloth, would result in a combined $373-million after-tax net present value (5 per cent) and 16-per-cent after-tax internal rate of return, based on a flat molybdenum price of $20 per pound.

Langeloth is among the largest molybdenum conversion plants in North America and is a unique and strategic asset given its proximity to the North American steel market. Significant synergies and margin improvements that will enhance future cash flow generation and profitability from the MBU will result from: (1) increased capacity utilization at Langeloth from the current level of 30 to 35 per cent to leverage fixed costs; (2) ability to blend the high-quality Thompson Creek concentrate with lower-quality third party concentrates; and (3) ability to produce an increased volume of higher-margin final molybdenum products. Over all, the restart and integration of Thompson Creek with Langeloth presents an opportunity to establish a fully integrated business that can leverage existing infrastructure and create long-term value through profitable operations and significant optionality.

The Thompson Creek PFS includes an optimized mine plan with an 11-year mine life. A summary of the PFS production profile is included in the attached table.

In line with the company's disciplined approach to capital allocation, Centerra expects to phase the operations restart at Thompson Creek. The PFS, requiring between $350-million and $400-million of preproduction capital expenditures, includes an optimized mine design, which leads to a longer mine life and provides for greater exposure to molybdenum price cycles. As previously disclosed with the company's outlook on Feb. 23, 2023, capital spending at Thompson Creek in 2023 is expected to be $9-million to $10-million associated with advancement of project studies, including project derisking activities such as geotechnical drilling, additional engineering costs and site early works.

The Company has commenced a feasibility study (FS) for Thompson Creek, which is expected to be completed by mid-2024. Upon completion of the FS, the company expects to authorize a limited notice to proceed, requiring $100-million to $125-million of capital for prestripping within current authorizations and to purchase long lead items. While the current authorizations support early works and certain activities defined in the limited notice to proceed stage, the company has initiated discussions with the appropriate authorities to obtain a modified permit for the full scope of the optimized mine plan. The company expects to authorize full notice to proceed in mid-2025, linked to sufficient progress toward permit modification approvals for the optimized mine plan, at which time the remaining $250-million to $275-million of capital will be released to complete the project. First production is expected in the second half of 2027. A breakdown of the PFS capital spending profile is included in the attached table.

The Thompson Creek PFS and synergies at Langeloth demonstrate solid economics at flat molybdenum prices of $20 per pound. The sensitivity of project economics due to changes in molybdenum prices is illustrated in the attached table.

Endako is expected to remain in care and maintenance as the company focuses on the Thompson Creek restart. Endako is an important molybdenum asset with a large defined resource in a top-tier jurisdiction, with valuable modern plant infrastructure, providing longer-term optionality. Should Endako be restarted in the future, it could support many years of continuous mining from Centerra's MBU.

While Centerra remains primarily a gold mining business, the company sees value from its exposure to base metals. As part of the value maximizing plan for the MBU, the company will evaluate all strategic options for the assets.

Goldfield project

As previously disclosed with the company's second quarter results on July 31, 2023, after a review of the Goldfield project, the company has made the decision to re-evaluate the project scope of work to achieve a lower-capital flowsheet and to maximize returns on the project. As a result, it will now focus exploration activities only on oxide and transition material, principally in the Gemfield and nearby deposit areas. Due to this strategic pivot, Centerra will take additional time to perform exploration activities in Goldfield's large, underexplored land position before releasing an initial resource estimate. The timing for Goldfield's initial resource estimate will be contingent on exploration success and metallurgical test work. Centerra will provide an update on exploration progress at Goldfield with the company's third quarter 2023 results. The company continues to believe that Goldfield presents an attractive opportunity in a top mining jurisdiction.

Kemess

Kemess is a past-producing mine located in the Toodoggone district within British Columbia's prolific Golden Horseshoe, a highly prospective area with multiple gold and copper discoveries. Kemess benefits from infrastructure already on site, including a process plant, water treatment plant, air strip and an open pit available for waste storage. In addition, Kemess has several permits in place and an impact benefit agreement with its first nation partner. Centerra's strategic approach at Kemess is to leverage the existing infrastructure to unlock regional potential and continue to evaluate the underground prospect of Kemess which could be a future source of gold and copper production.

Capital allocation

Centerra expects to generate significant free cash flow in the short and medium term and has developed a capital allocation strategy that focuses on three key areas: (1) returning capital to shareholders through continued dividends and share buybacks; (2) investing in internal growth projects and exploration within the company's current portfolio, including the Thompson Creek restart, the Goldfield project and greenfield exploration; and (3) evaluating external opportunities for growth. Even after accounting for these three areas of priority, the company expects to maintain a significant cash balance through the end of 2024 and beyond.

Exploration

Total exploration expenditures estimated for 2023 are expected to be $40-million to $50 million. This includes exploration spending at Goldfield of $16-million to $20-million, $16-million to $19-million on greenfield and generative exploration projects, and $8-million to $11-million on brownfield exploration. In 2023, brownfield exploration at Mount Milligan is focused on resource expansion drilling programs within the open pit and to the west and southwest of the ultimate pit margins, while exploration at Oksut will continue to test oxide gold potential at peripheral prospects and assess potential for deeper porphyry-style copper-gold mineralization. In the next few years, Centerra will continue to invest in exploration spending with roughly 50 per cent of annual exploration spending allocated to brownfield and 50 per cent allocated to greenfield activities.

About Centerra Gold Inc.

Centerra Gold is a Canadian-based gold 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 district 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.

Qualified persons

Andrey Shabunin, professional engineer, a member of Professional Engineers of Ontario (PEO) and general manager of Oksut mine at Oksut Madencilik Sanayi Ticaret AS, a wholly owned subsidiary of Centerra, has reviewed and approved the scientific and technical information under the heading "Oksut mine" in this news release. Mr. Shabunin is a qualified person within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

Jean-Francois St-Onge, professional engineer, a member of the Professional Engineers of Ontario (PEO) and Centerra's senior director, technical services, has reviewed and approved the scientific and technical information in this news release related to mining. Mr. St-Onge is a qualified person within the meaning of NI 43-101.

Dr. Lars Weiershauser, PhD, PGeo and Centerra's director, geology, has reviewed and approved the scientific and technical information included in this news release related to geology and mineral resources. Dr. Weiershauser is a qualified person within the meaning of NI 43-101.

Anna Malevich, professional engineer, a member of the Professional Engineers of Ontario (PEO) and Centerra's senior director, projects, has reviewed and approved the scientific and technical information included in this news release related to processing and metallurgy. Ms. Malevich is a qualified person within the meaning of 43-101.

All other scientific and technical information presented in this document was reviewed and approved by Centerra's geological and mining staff under the supervision of W. Paul Chawrun, professional engineer, a member of the Professional Engineers of Ontario (PEO), and Centerra's executive vice-president and chief operating officer. Mr. Chawrun is a qualified person within the meaning of NI 43-101.

We seek Safe Harbor.