Mr. Paul Tomory reports

CENTERRA GOLD ACHIEVES 2023 PRODUCTION GUIDANCE; BEGINS 2024 WITH OVER $600 MILLION IN CASH AND CASH EQUIVALENTS; ANNOUNCES 2024 OUTLOOK

Centerra Gold Inc. has released preliminary production results for the fourth quarter and full year ended Dec. 31, 2023, and issued 2024 guidance. Centerra will release its fourth quarter and full-year 2023 operating and financial results after the market closes on Thursday, Feb. 22, 2024. The company will host a conference call and webcast to discuss the results on Friday, Feb. 23, 2024, at 9 a.m. Eastern Time. Details for the conference call and webcast are included at the end of this news release. All figures are in United States dollars.

2023 fourth quarter and full-year highlights:

• Fourth quarter 2023 gold production was 129,259 ounces.
• Full-year 2023 gold production was 350,317 ounces, which was near the midpoint of the 2023 gold production guidance range of 340,000 to 360,000 ounces, as published on July 31, 2023.
• Copper production was 19.7 million pounds in the fourth quarter 2023, and 61.9 million pounds for the full year 2023, in line with the 2023 copper production guidance range of 60 million to 70 million pounds, as published on Jan. 16, 2023.
• As at Dec. 31, 2023, unaudited preliminary cash and cash equivalents was $613-million.
• Consolidated full-year 2023 production costs and all-in sustaining costs (AISC) on a byproduct basis are expected to be near the midpoint of the previously disclosed guidance ranges of $700 to $750 per ounce and $1,000 to $1,050 per ounce, respectively.

2024 guidance highlights:

• 2024 gold production guidance of 370,000 to 410,000 ounces, an 11-per-cent increase from the midpoint of guidance year-over-year;
• 2024 copper production guidance of 55 million to 65 million pounds;
• 2024 gold production cost guidance of $800 to $900 per ounce and AISC on a byproduct basis guidance of $1,075 to $1,175 per ounce;
• 2024 sustaining capital guidance of $100-million to $125-million and non-sustaining capital guidance of $8-million to $15-million;
• 2024 exploration guidance of $35-million to $45-million, including $17-million to $22-million of brownfield exploration, and $18-million to $23-million of greenfield and generative exploration programs.

President and chief executive officer Paul Tomory commented: "We ended the year with strong operating performance from Oksut and Mount Milligan, which allowed us to achieve our production guidance for both gold and copper for the year. We generated strong free cash flow for a second consecutive quarter, with our cash and cash equivalents exceeding $600-million. Looking ahead to 2024, we are forecasting higher gold production compared to last year, and we expect to continue to generate strong cash flow from operations.

"Our team is focused on several key areas in 2024, including the completion of Mount Milligan's site-wide optimization program in the second half of the year, which is focused on assessments of safety, productivity and cost-efficiency opportunities. We will be initiating a preliminary economic assessment at Mount Milligan to evaluate the substantial resources with the goal to unlock value beyond the current 2035 mine life, targeted for the first half of 2025. We are also expecting to complete a feasibility study for the Thompson Creek molybdenum mine restart in mid-2024, as well as an initial resource estimate at the Goldfield project by the end of 2024. In the year ahead, we expect to continue to deliver on our strategic plan that will drive future value and growth for Centerra."

Mount Milligan

Mount Milligan's 2024 gold production is expected to be in the range of 180,000 to 200,000 ounces, a 22-per-cent increase of the midpoint year-over-year, driven by mine sequencing and higher gold grades. Copper production is expected to be 55 million to 65 million pounds in 2024. As previously disclosed with the third quarter 2023 financial results on Oct. 31, 2023, the company deferred processing a portion of the elevated pyrite-bearing high-grade gold, low-grade copper ore mined in phase 7 to 2024, for blending purposes. This is expected to result in overall higher gold grades this year. In 2024, gold and copper recoveries are expected to be similar to those achieved in 2023. Additional metallurgical reviews are continuing, aimed at increasing gold and copper recoveries. Both gold and copper production are expected to be evenly weighted throughout the year; however, gold and copper sales will be weighted more toward the second half of 2024, resulting in lower AISC on a byproduct basis in this period.

In 2024, gold production costs at Mount Milligan are expected to be $950 to $1,050 per ounce and AISC on a byproduct basis is expected to be $1,075 to $1,175 per ounce. In the fourth quarter of 2023, Centerra embarked on a site-wide optimization program at Mount Milligan, focused on a holistic assessment of occupational health and safety, as well as improvements in mine and plant operations. This program is focused on all aspects of the operation to maximize the potential of the orebody, setting up Mount Milligan for long-term success to 2035 and beyond. Some examples of initiatives include:

• Occupational health and safety -- improvements through a complete engagement of the operating team, with a focus on improving employee retention and reduced turnover.
• Mine -- improvements of the load/haul cycle, productivity, enhanced mine maintenance practices and refinement of the geology-metallurgy model; working toward seamless integration of mine and plant operations.
• Plant -- continuous improvement in the overall operability of the plant, flotation circuit, consumables, materials handling systems and blending consistency of feed to the plant. The company expects these actions to enhance plant throughput and recovery.

The company is encouraged by the preliminary cash flow improvement estimates from the first phases of work on the program. Estimates of the potential cost savings from the asset optimization review are still being developed and are not included in Mount Milligan's 2024 cost guidance ranges.

In 2024, Mount Milligan is expected to have between $55-million and $65-million in additions to plant, property and equipment, all of which are sustaining capital. This includes capital carried over from 2023, equipment rebuilds and annual capital related to the tailings storage facility (TSF).

Oksut

At Oksut, 2024 gold production is expected to be in the range of 190,000 to 210,000 ounces, which is unchanged from the previously disclosed life of mine (LOM) plan, published on Sept. 18, 2023. Gold production is expected to be weighted more toward the first half of 2024, as the elevated leach pad inventories and stockpiles are processed through the adsorption, desorption and recovery (ADR) plant.

In 2024, gold production costs at Oksut are expected to be $650 to $750 per ounce and AISC on a byproduct basis is expected to be $900 to $1,000 per ounce, $50 per ounce higher, and $100 per ounce higher, than previously disclosed in the LOM plan. The increase is related to higher royalty rates based on the current elevated gold price environment, a slight increase in sustaining capital, and a new multiyear contract with the existing mining and hauling services provider.

In 2024, Oksut is expected to have between $40-million and $50-million in additions to plant, property and equipment, all of which is sustaining capital. This includes capital stripping, heap leach construction and equipment purchases. The increase in sustaining capital compared with the previously disclosed LOM plan is related to deferred stripping as a result of the new mining and hauling services contract.

The Turkish corporate income tax rate applicable to Oksut is 25 per cent. In 2024, Oksut's current income tax paid is expected to be between $85-million and $95-million, which includes withholding tax related to repatriation of earnings. Income tax payments in Turkey are typically paid in cash on a one-quarter lag and the Turkish Government State royalty payment is made in the second quarter on an annual basis. In 2024, tax payments for the fourth quarter 2023 and the first quarter 2024 will both be paid in the second quarter of 2024. As a result, cash flows at Oksut in the second quarter of 2024 will be impacted by the tax and royalty payments.

Molybdenum business unit

In 2024, the care and maintenance and reclamation expenditures for the molybdenum business unit (MBU) are expected to be between $21-million and $28-million. This includes $15-million to $18-million of reclamation expenditures at the Endako mine, $5-million to $7-million of care and maintenance costs at Endako, and $1-million to $3-million of care and maintenance costs for the first six months of 2024 at the Thompson Creek mine. Substantially all reclamation costs planned in 2024 have been included in the reclamation provision as at Dec. 31, 2023.

For the first six months of 2024, project development costs at Thompson Creek are expected to be $17-million to $20-million of expensed costs related to stripping and general and administrative expenses, and $7-million to $12-million of non-sustaining capitalized costs related to equipment purchases and refurbishments. The company continues to progress work on the Thompson Creek feasibility study (FS), which is expected to be completed by mid-2024. Upon completion of the FS, the company will update the Thompson Creek guidance as necessary.

In 2024, cash from operations at the Langeloth metallurgical facility is expected to be between positive $20-million and negative $25-million, with movements in working capital dependent on market molybdenum prices. Sustaining capital expenditures at Langeloth in 2024 are expected to be $5-million to $10-million and are related to a planned acid plant maintenance shutdown that routinely occurs every several years.

Goldfield project

In 2024, Goldfield project development costs are expected to be $9-million to $13-million related to exploration drilling and metallurgical test work. The company is focused on exploration programs on the large land package with a focus on oxide and transition material. Contingent on exploration success and metallurgical test work results throughout the year, the company expects an initial resource estimate at the Goldfield project by the end of 2024.

Kemess project

In 2024, the Kemess project will continue to be on care and maintenance. Care and maintenance costs are expected to be $12-million to $14-million and reclamation costs are expected to range from $12-million to $16-million. Reclamation activities are expected to be focused on decommissioning of the Kemess South TSF sedimentation pond and associated works. These activities were originally planned for 2023, but were deferred to 2024 due to the high occurrence of wildfires in British Columbia last year. Substantially all reclamation costs planned in 2024 have been included in the reclamation provision as at Dec. 31, 2023.

Exploration expenditures

In 2024, exploration expenditures are expected to be $35-million to $45-million, including $17-million to $22-million of brownfield exploration and $18-million to $23-million of greenfield and generative exploration programs. The exploration targets for brownfield projects include further drilling and testing work at Mount Milligan, as well as Goldfield and Oakley projects.

2024 material assumptions

Material assumptions or factors used to forecast production and costs for 2024, after giving effect to the hedges in place as at Dec. 31, 2023, include the following:

• A market gold price of $1,850 per ounce and an average realized gold price at Mount Milligan of $1,355 per ounce after reflecting the streaming arrangement with Royal Gold (35 per cent of Mount Milligan's gold at $435 per ounce).
• A market price of $3.50 per pound for the unhedged portion of copper production. This equates to a blended copper price of $3.50 per pound, reflecting a minimum projected impact of a reduced volume of copper hedges in place for 2024. Realized copper price at the Mount Milligan mine is estimated to average to $2.94 per pound after reflecting the Mount Milligan streaming arrangement (18.75 per cent of the Mount Milligan mine's copper is sold at 15 per cent of the spot price per metric tonne), and copper treatment and refining costs.
• A molybdenum price of $20 per pound.
• Exchange rates of $1 per $1.33 (Canadian) and $1 per 30.00 Turkish lira.
• Diesel fuel price assumption of $1.06 per litre ($1.41 (Canadian) per litre) at Mount Milligan.

Fourth quarter and full-year 2023 operating and financial results and conference call

Centerra will release its fourth quarter and full-year 2023 operating and financial results after the market closes on Thursday Feb. 22, 2024. The company will host a conference call and webcast to discuss the results on Friday, Feb. 23, 2024, at 9 a.m. Eastern Time. Details for the conference call and webcast are included below.

Webcast

An archive of the webcast will be available until the end of day on May 23, 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 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 the end of day March 23, 2024. The recording can be accessed by dialling 412-317-0088 or 1-855-669-9658 and using the passcode 0641. In addition, the webcast will be archived on Centerra's website.

Qualified person

The scientific and technical information presented in this document, including the production estimates, were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 Standards of Disclosure for Mineral Projects and were prepared, reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Paul Chawrun, PEng, who is a member of the Professional Engineers Ontario and Centerra's executive vice-president and chief operating officer, who is a qualified person for the purpose of NI 43-101.

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 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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