Mr. Paul Tomory reports

CENTERRA GOLD ANNOUNCES MOUNT MILLIGAN MINE LIFE EXTENSION AND ADDITIONAL AGREEMENT WITH ROYAL GOLD

Centerra Gold Inc. and its subsidiary, Thompson Creek Metals Company Inc. (TCM), have entered into an additional agreement with RGLD Gold AG, a subsidiary of Royal Gold Inc., relating to the Mount Milligan mine, which has resulted in a life of mine extension to 2035 and establishes favourable parameters for potential future mine life extensions. All dollar figures are in United States dollars unless otherwise stated.

Paul Tomory, president and chief executive officer, commented: "We are pleased to announce a mutually beneficial additional agreement with Royal Gold, which has allowed us to immediately unlock additional reserves beyond the current mine life. Extending Mount Milligan's mine life by two years is a key first step in our strategy to realize the full potential of this cornerstone asset in a top-tier mining jurisdiction. Our strategy to further increase mine life at Mount Milligan has three prongs. First, we are immediately initiating a preliminary economic assessment to study the incorporation of the significant drilled inventory to the west of the existing pit, and to evaluate options for capital projects in the mine and the mill that could lead to further mine life extensions, and will soon be starting the associated work on permitting, and engagement with our first nations partners and local stakeholders. Second, we will continue to invest in exploration drilling to unlock the large mineral endowment at Mount Milligan. Finally, we are continuing to advance a site optimization program at Mount Milligan, which began in the fourth quarter of 2023, with a focus on enhanced safety performance and cash flow improvement. We are encouraged by today's announcement and the prospects for continued optimization at Mount Milligan, which will benefit our shareholders, our partner Royal Gold, and Mount Milligan's first nations partners, employees and local stakeholders."

Highlights of the transaction:

• Mutually beneficial additional agreement that unlocks incremental mineral reserves and resources at Mount Milligan: Immediately extends the mine life by two years to 2035, subject to normal course permitting, and grows mineral resources to 510 million tonnes, inclusive of reserves.
• Potential for future mine life increases beyond 2035: The additional agreement enables Centerra to study mine life extensions via the conversion of existing mineral resources into mineral reserves, most of which are classified in the measured and indicated categories, coupled with the potential addition of new mineral resources. It also establishes a strong platform for Centerra to continue to invest in further drilling at Mount Milligan.
• Beneficial outcome for all stakeholders at Mount Milligan: The additional agreement supports Centerra's strategy of extending Mount Milligan's mine life to, and potentially beyond, 2035, for the benefit of Centerra's shareholders, as well as Mount Milligan's first nations partners, employees and local stakeholders.
• Centerra will receive increased cash payments for Mount Milligan gold and copper production sold to Royal Gold, starting in approximately 2030: When added to the streaming payments under the existing stream agreement (as defined below), the additional agreement will effectively provide aggregate cash payments for gold and copper sold under the existing stream agreement as follows:
  • For gold, up to: (i) the lower of $850 per ounce and 50 per cent of the gold spot price for the period between approximately 2030 and approximately 2035; and (ii) the lower of $1,050 per ounce and 66 per cent of the gold spot price from and after approximately 2036;
  • For copper, up to: (i) 50 per cent of the copper spot price for the period between approximately 2030 and approximately 2035; and (ii) 66 per cent of the copper spot price from and after approximately 2036.
• As part of the additional agreement, Centerra and TCM have agreed to make certain payments and deliveries to Royal Gold:
  • Upfront cash payments of $24.5-million;
  • A commitment to deliver an aggregate of 50,000 ounces of gold;
  • Commencing in approximately 2030, payments equal to 5 per cent of Mount Milligan's annual free cash flow, which increase by an additional 5 per cent of annual free cash flow commencing in approximately 2036 (for a total of 10 per cent per year after such date).

Mount Milligan life of mine extension

Two thousand twenty-three year-end mineral reserves and mineral resources

As of Dec. 31, 2023, Mount Milligan's proven and probable gold mineral reserves were an estimated 2.8 million ounces (Moz) of contained gold (250 million tonnes (Mt) at 0.35 gram per tonne (g/t) gold), and its measured and indicated gold resources was 2.3 million ounces of contained gold (260 million tonnes at 0.27 g/t gold). As of Dec. 31, 2023, the mine's proven and probable copper mineral reserves were an estimated 961 million pounds (Mlb) of contained copper (250 million tonnes at 0.17 per cent copper), and its measured and indicated mineral resources were an estimated 851 million pounds (260 million tonnes at 0.15 per cent copper).

Further study, preliminary economic assessment (PEA), exploration and optimization

Centerra will be initiating a PEA to evaluate the substantial mineral resources at Mount Milligan with a goal to unlock additional value beyond its current 2035 mine life. The scope of the PEA is expected to include significant drilling completed to the west of the pit, not currently included in the existing resource, plus inclusion of existing resources, most of which are classified in the measured and indicated categories. The PEA will also evaluate several capital projects to support a further expansion of Mount Milligan's mine life, including options for a new tailings storage facility (TSF) and potential process plant upgrades. The company will also be starting the associated work on permitting and engagement with its first nations partners and local stakeholders. The PEA is expected to be completed in first half of 2025.

The company is also continuing its exploration drilling program aimed at expanding the mineral resource base significantly at Mount Milligan. In 2023, approximately 80 per cent of the exploration drilling at Mount Milligan was carried out in the pit and three brownfield areas within the mining lease. In all these areas, results received showed mineralization extending west from the pit margin and below the ultimate pit boundary. Centerra is encouraged by the significant mineral endowment at Mount Milligan, setting the stage for potential future resource additions. At Goldmark and South Boundary, there are possibilities for near-surface additions. At North Slope, DWBX extension and Saddle West, the company continues to test for depth extensions. Centerra expects to invest approximately $5-million to $7-million in exploration spending at Mount Milligan in 2024. For additional details and drill results from the 2023 Mount Milligan exploration program, please refer to the announcement entitled "Centerra Gold announces 2023 year-end mineral reserves and resources, and provides exploration update," which was issued in conjunction with this news release on Feb. 14, 2024.

Finally, in the fourth quarter of 2023, Centerra embarked on a site-wide optimization program at Mount Milligan, focused holistically on assessments of operational health and safety, productivity, and cost-efficiency opportunities, in concert with mine plan optimization. The comprehensive optimization program will set up Mount Milligan for long-term success to 2035 and beyond. The company is encouraged by the preliminary cash flow improvement estimates from the first phases of work on the program.

Highlights of the additional Royal Gold agreement

The additional agreement entered into with Royal Gold, which is effective immediately, provides supplementary payments to Mount Milligan that have enabled the reserve increase and corresponding extension of the mine life described above. The existing amended and restated purchase and sale agreement with Royal Gold, dated as of Dec. 14, 2011, as amended, is not affected by the additional Royal Gold agreement. The additional Royal Gold agreement, taken together with the existing stream agreement, will have the effect of increasing payments for Mount Milligan gold and copper production sold to Royal Gold under the existing stream agreement, among other things. The percentage of gold and copper production streamed to Royal Gold remains unchanged at 35 per cent gold and 18.75 per cent copper.

Optional prethreshold payments

The additional Royal Gold agreement also provides TCM an option to elect to receive additional payments from Royal Gold prior to the first threshold, in a low-commodity-price environment. If both the gold spot price falls below $1,600 per ounce and the copper spot price falls below $3.50 per pound, then Centerra may elect to receive up to:

• For gold, the lesser of: (i) $415 per ounce, for an aggregate cash payment per ounce equal to $850 per ounce when including any cash payment under the existing stream agreement; and (ii) an amount per ounce equal to the difference of 66 per cent of the gold spot price, less any cash payment under the existing stream agreement for such gold;
• For copper, 35 per cent of the copper spot price, for an aggregate cash payment per metric tonne equal to 50 per cent of the copper spot price when including any cash payment under the existing stream agreement for such copper.

After the prethreshold period, any optional prethreshold payments previously received by TCM will be repayable if the prices of gold and copper each increase above $1,600 per ounce and $3.50 per pound, respectively, at the time of any gold or copper delivery under the existing stream agreement.

Centerra payments

As part of the additional Royal Gold agreement, Centerra and TCM have agreed to make certain payments and deliveries to Royal Gold as outlined below:

• Upfront consideration: Cash payment of $24.5-million;
• Deferred gold consideration: Deliver an aggregate of 50,000 ounces of gold. The first 33,333 ounces are expected to be delivered in tranches of 11,111 ounces after an equivalent number of gold ounces are received by Centerra in relation to the sale of Centerra's 50-per-cent interest in the Greenstone Gold Mines partnership. Any remaining ounces are to be delivered to Royal Gold in quarterly instalments equally over a five-year period, with the first delivery to occur by June 30, 2030;
• Free cash flow payments: Payments equal to 5 per cent of Mount Milligan's cumulative free cash flow, commencing approximately 2030, payable annually. Commencing in approximately 2036, the annual payments will double (for a total of 10 per cent of free cash flow per year after such date). No payments will be made for a calendar year in which free cash flow is negative, and Centerra is allowed to recoup any negative free cash flow (that is, such that cumulative free cash flow from the commencement of the payments in 2030 is positive) before any such payments to Royal Gold resume. For the purposes of calculating these payments, free cash flow is defined as gross revenue received by TCM from the sale of minerals, less treatment and refining costs, operating costs, exploration costs, interest costs, taxes (excluding federal and provincial income taxes), lease payments, capital costs, reclamation costs, net stream costs, intercompany costs, and changes in working capital (all in respect of Mount Milligan).

Conference call to discuss the Mount Milligan mine life extension and additional Royal Gold agreement

Centerra will host a conference call and webcast to discuss the Mount Milligan mine life extension and additional Royal Gold agreement on Wednesday, Feb. 14, 2024, at 8 a.m. ET. Details for the conference call and webcast are included below.

Webcast:

• Participants can access the webcast on-line;
• An archive of the webcast will be available until end of day May 14, 2024.

Conference call:

• Participants can register for the conference call on-line. Upon registering, you will receive the dial-in details and a unique PIN (personal identification number) to access the call. This process will bypass the live operator and avoid the queue. Registration will remain open until the end of the live conference call.
• Participants who prefer to dial in and speak with a live operator can access the call by dialling 1-800-319-4610 or 604-638-5340. It is recommended that you call 10 minutes before the scheduled start time.
• After the call, an audio recording will be made available via telephone for one month, until end of day March 14, 2024. The recording can be accessed by dialling 412-317-0088 or 1-855-669-9658 and using the passcode 0700. In addition, the webcast will be archived on Centerra's website.

Advisers and counsel

National Bank Financial acted as financial adviser and Stikeman Elliott LLP acted as legal adviser to Centerra.

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, and the Oksut mine in Turkey. The company also owns the Goldfield district project in Nevada, the Kemess project in British Columbia, and owns and operates the Molybdenum Business Unit in the United States and Canada. The company is based in Toronto, Ont., Canada.

Qualified persons

Jean-Francois St-Onge, professional engineer, 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 National Instrument 43-101.

Lars Weiershauser, PhD, PGeo, 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.

All other scientific and technical information presented in this document were reviewed and approved by Centerra's geological and mining staff, under the supervision of W. Paul Chawrun, professional engineer, 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.