Mr. Paul Tomory reports

CENTERRA GOLD REPORTS THIRD QUARTER 2023 RESULTS; SIGNIFICANT FREE CASH FLOW DRIVES INCREASED CASH BALANCE

Centerra Gold Inc. has released its third quarter 2023 operating and financial 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.

President and chief executive officer Paul Tomory commented: "Centerra had a strong third quarter, with cash provided by mine operations of $144-million and $36-million, from Oksut and Mount Milligan, respectively. In addition, the Langeloth metallurgical facility returned $17-million from the previous investment into working capital, all of which drove a substantial increase to our cash balance. Oksut outperformed our expectations, producing almost 87,000 ounces in the quarter. Our 2023 consolidated gold production guidance remains on track to be between 340,000 to 360,000 ounces and we expect to continue to generate significant free cash flow in the fourth quarter, resulting in a higher cash balance by the end of the year. We remain on track for a strong finish to 2023.

"In September, we announced positive economics for the Thompson Creek mine restart, while simultaneously initiating a process to evaluate all strategic options for the molybdenum business unit assets. We also continue to drive operational and technical improvements at Mount Milligan to unlock its full potential as our cornerstone asset. Given the results from this quarter, we are optimistic about the future of Centerra and our ability to internally fund our strategic initiatives with cash flows from operations."

Third quarter highlights

Operations:

• Production: Third quarter 2023 gold production was 126,221 ounces, including production of 39,554 ounces of gold from the Mount Milligan mine and 86,667 ounces of gold from the Oksut mine. Copper production in the quarter was 15.0 million pounds.
• Sales: Third quarter 2023 gold sales were 130,973 ounces at an average realized market price of $1,741 per ounce and copper sales were 15.4 million pounds at an average realized copper price of $2.99 per pound.
• Costs: Consolidated gold production costs were $643 per ounce and all-in sustaining costs (AISC) on byproduct basis were $827 per ounce for the quarter, with the effect of higher gold sales from Oksut offsetting higher production costs from Mount Milligan.
• Capital expenditures: Third quarter 2023 additions to property, plant and equipment (PPE) and sustaining capital expenditures were $25.0-million and $23.5-million, respectively. Sustaining capital expenditures in the third quarter 2023 included capitalization to the tailings storage facility (TSF), as well as construction of a water pumping system at Mount Milligan and deferred stripping at Oksut.
• Guidance: Centerra's 2023 consolidated gold production guidance remains on track to be between 340,000 and 360,000 ounces. The company is increasing gold production guidance at Oksut and lowering it at Mount Milligan. Centerra's 2023 copper production guidance remains unchanged at 60 million to 70 million pounds and is expected to be near the low end of the range. Centerra's 2023 consolidated gold production cost guidance is unchanged and is expected to be in the range of $700 to $750 per ounce.

Financial:

• Net earnings: Net earnings were $60.6-million or 28 cents per share, and adjusted net earnings were $44.4-million or 20 cents per share. Adjustments include $23.1-million of reclamation provision revaluation recovery, $2.3-million unrealized foreign exchange gains related to the reclamation provision at the Endako mine and the Kemess project, and $9.2-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 Oksut and Mount Milligan.
• Free cash flow: Cash provided by operating activities was $166.6-million and free cash flow was $144.5-million, including cash provided by mine operations and free cash flow from Oksut of $143.9-million and $133.8-million, respectively.
• Cash and cash equivalents: Total liquidity was $890.2-million, representing a cash balance of $492.1-million and $398.1-million available under a corporate credit facility as at Sept. 30, 2023.
• Dividend: A quarterly dividend of seven Canadian cents per common share was declared.

Other:

• Corporate credit facility: In September, 2023, the company announced the extension of its $400-million revolving credit facility, which is currently undrawn, with a renewed four-year term maturing on Sept. 8, 2027.
• Corporate development updates: In the third quarter of 2023, a deferred milestone payment of $31.5-million was paid to Waterton Nevada Splitter LLC in connection with the February, 2022, acquisition of the Goldfield project. Partially offsetting the third quarter payment to Waterton, in the fourth quarter 2023, Centerra expects to receive a milestone payment of $25-million from a subsidiary of the Orion Mine Finance Group in relation to the sale of its 50-per-cent interest in the Greenstone gold mines partnership in 2021. Future payments to Centerra in relation to the Greenstone project are payable as certain production thresholds are met.
• Intention to renew normal course issuer bid (NCIB): Centerra believes its share price continues to be trading in a range that does not adequately reflect the value of its assets and future prospects. As a result, subject to the approval of the Toronto Stock Exchange, Centerra intends to renew its NCIB to purchase for cancellation up to an aggregate of 18,293,896 common shares in the capital of the company, representing 10 per cent of the public float. As of Oct. 31, 2023, Centerra had 215,807,212 issued and outstanding common shares.

2023 outlook

Centerra's consolidated guidance for production and unit costs remains unchanged from the previously disclosed guidance on June 30, 2023, in its second quarter report. The company has revised its 2023 outlook for Oksut and Mount Milligan based on updated estimates for metal production and corresponding unit costs at both mines. The company's updated 2023 outlook and comparative actual results for the nine months ended Sept. 30, 2023, are set out in the attached tables.

Mount Milligan

Mount Milligan produced 39,554 ounces of gold and 15.0 million pounds of copper in the third quarter of 2023. Production in the quarter was impacted by mine sequencing. While most of the ore waste transition material was mined in the first half of 2023, some residual ore waste transition material was mined in the third quarter 2023. In addition, recoveries were impacted by the elevated ratio of pyrite to chalcopyrite from blending low-grade gold, high-grade copper ore mined in phase 9 with high-grade gold, low-grade copper ore mined in phase 7. The company expects medium-term recoveries for gold and copper to be similar to those achieved in 2023. The company is currently undertaking additional metallurgical reviews aimed at increasing recoveries from current levels.

During the third quarter of 2023, mining activities were carried out in phases 5, 6, 7 and 9 of the open pit. A total of 13.4 million tonnes were mined in the third quarter of 2023. Process plant throughput for the third quarter of 2023 was 5.6 million tonnes and averaged 60,927 tonnes per day.

Mount Milligan's gold production guidance has been lowered to 150,000 to 160,000 ounces, from 160,000 to 170,000 ounces previously. This is mainly due to mine sequencing and lower-than-planned gold recoveries from the elevated ratio of pyrite to chalcopyrite as discussed above. Processing a portion of the elevated pyrite-bearing high-grade gold, low-grade copper ore mined in phase 7 is expected to be deferred to 2024 for blending purposes, which is expected to result in overall higher gold grades in 2024. Copper production of 60 million to 70 million pounds remains unchanged but is expected to be near the low end of the guidance range. In 2024, the company anticipates higher levels of gold production and similar levels of copper production compared with 2023 production guidance levels.

Gold production costs in the third quarter 2023 were $1,050 per ounce, a decrease from the second quarter 2023, driven by higher gold ounces sold. AISC on a byproduct basis was $1,150 per ounce, a decrease from the second quarter 2023, driven by lower gold production costs per ounce and higher byproduct credits as a result of higher realized copper prices.

As a result of Mount Milligan's reduced gold production outlook, full-year 2023 gold production costs have been increased and are now expected to be $1,050 to $1,100 per ounce, up from $1,000 to $1,050 per ounce previously. Full-year 2023 AISC on a byproduct basis guidance at Mount Milligan has also been increased and is now expected to be $1,175 to $1,225 per ounce, up from $1,125 to $1,175 per ounce previously. A full asset optimization review has been launched, with the assistance of a third party consultant, which includes assessments of occupational health and safety (OH&S), productivity, and cost-efficiency opportunities in concert with mine plan optimization. This review is designed to identify and drive incremental improvements in the mine's operations and is expected to be completed in 2024.

Oksut

Oksut produced 86,667 ounces of gold in the third quarter of 2023. During the quarter, mining activities were focused on stripping and waste removal from phase 5 and phase 6 of the Keltepe pit, with some activities carried out in phase 2 of the Guneytepe pit. In the third quarter 2023, a total of 3.1 million tonnes were mined and 1.0 million tonnes were stacked at an average grade of 1.98 grams per tonne (g/t), containing 62,332 ounces of gold. As at Sept. 30, 2023, all the stored gold-in-carbon inventory had been processed. The mine continues to draw down high-grade inventory from the stockpiles and to leach previously stacked high-grade inventory on the heap leach pad. These ounces are expected to be processed in the coming months and into the first half of 2024.

Full-year 2023 production guidance at Oksut has been increased to 190,000 to 200,000 ounces of gold, up from 180,000 to 190,000 ounces previously, as a result of a successful ramp-up of production in the third quarter of 2023.

Gold production costs and AISC on a byproduct basis for the third quarter 2023 were $445 per ounce and $582 per ounce, respectively. As a result of Oksut's increased gold production outlook, full-year 2023 gold production costs are now expected to be in the range of $425 to $475 per ounce, down from $450 to $500 per ounce previously. Full-year 2023 AISC on a byproduct basis guidance at Oksut has also been lowered and is now expected to be $625 to $675 per ounce, down from $650 to $700 per ounce previously.

Molybdenum business unit

In the third quarter 2023, the molybdenum business unit sold 2.7 million pounds of molybdenum, generating revenue of $67.7-million with an average realized price of $24.08 per pound. In the first quarter of 2023, the Langeloth facility required a $67-million investment in working capital to finance its business due to a rapid increase in molybdenum prices. Approximately $52-million of the investment in working capital has been released in the second and third quarters of 2023.

Intention to renew NCIB

Subject to the approval of the approval of the TSX, Centerra intends to proceed with a renewal of an NCIB to purchase for cancellation up to an aggregate of 18,293,896 common shares, representing 10 per cent of the public float. As of Oct. 31, 2023, Centerra had 215,807,212 issued and outstanding common shares.

Centerra believes that the common shares continue to be trading in a price range that does not adequately reflect the value of such shares in relation to Centerra's assets and its future prospects. As a result, Centerra believes that the NCIB will provide the company with a flexible tool to deploy a portion of its cash balance pursuant to its capital allocation framework to, depending upon future common share price movements and other factors, purchase common shares for cancellation while preserving its strong balance sheet position.

Centerra has filed a notice of intention to renew an NCIB with the TSX and, subject to the approval of the TSX, Centerra may purchase common shares under the NCIB over a 12-month period. Once the NCIB is commenced, the exact timing and amount of any purchases will depend on market conditions and other factors. Centerra will not be obligated to acquire any common shares and may suspend or discontinue purchases under the NCIB at any time. Any purchases made under the NCIB will be made at market price at the time of purchase through the facilities of the TSX and/or alternative Canadian trading systems in accordance with applicable securities laws and stock exchange rules. The company's previous NCIB authorized the purchase of up to 15,610,813 common shares and expired on Oct. 12, 2023. During the period when that program operated, a total of 5,298,200 common shares of the company were repurchased through the facilities of the TSX and alternative Canadian trading systems at a volume weighted average price of $7.44 (Canadian) per common share. Centerra intends to establish an automatic share purchase plan in connection with its renewed NCIB to facilitate the purchase of common shares during times when Centerra would ordinarily not be permitted to purchase common shares due to regulatory restrictions or self-imposed blackout periods. Before entering a blackout period, Centerra may, but is not required to, instruct its designated broker to make purchases under the NCIB based on parameters set by Centerra in accordance with the automatic share purchase plan, applicable securities laws and stock exchange rules.

Conference call details

Centerra invites you to join its 2023 third quarter conference call on Wednesday, Nov. 1, 2023, at 9 a.m. Eastern Time. The call is open to all investors and the media. To join the call, please use the dial-in details found below. A webcast will be available.

Presentation slides will be available on Centerra's website.

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 Sept. 30, 2023, which are available on the company's website or SEDAR+.

About Centerra Gold Inc.

Centerra 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, the Kemess underground project in British Columbia, Canada, and owns and operates the molybdenum business unit in the U.S. and Canada. Centerra's shares trade on the TSX under the symbol CG and on the New York Stock Exchange under the symbol CGAU. The company is based in Toronto, Ont., Canada.

We seek Safe Harbor.