Centerra Gold Achieves 2017 Consolidated Gold Production Guidance, Beats Cost Guidance, Records $210 Million Net Earnings and Generates $234 Million Free Cash FlowNG and Provides 2018 Outlook

NEWS RELEASE

Centerra Gold Achieves 2017 Consolidated Gold Production Guidance, Beats Cost Guidance, Records $210 Million Net Earnings and Generates $234 Million Free Cash Flow^NG and Provides 2018 Outlook

This news release contains forward-looking information that is subject to the risk factors and assumptions set out under “Caution Regarding Forward-looking Information”. It should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2017. The consolidated financial statements of Centerra Gold Inc. are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. All figures are in United States dollars and all production figures are on a 100% basis unless otherwise stated.

All references in this document denoted with NG, indicate a non-GAAP term which is discussed under “Non-GAAP Measures” and reconciled to the most directly comparable GAAP measure.

Toronto, Canada, February 23, 2018: Centerra Gold Inc. (“Centerra”) (TSX: CG) today reported net earnings of $130.0 million or $0.45 per common share (basic) on revenues of $358.2 million in the fourth quarter of 2017. The fourth quarter 2017 result includes a tax benefit of $21.3 million as a result of a change in tax legislation enacted in the U.S. Excluding this item, adjusted earnings^NG in the fourth quarter of 2017 were $108.7 million or $0.37 per common share (basic). During the same period in 2016, the Company reported net earnings of $63.6 million or $0.23 per common share (basic) on revenues of $305.7 million and adjusted earnings^NG of $68.6 million or $0.24 per common share (basic).

For the full year 2017, the Company recorded net earnings of $209.5 million or $0.72 per share (basic) on revenues of $1.2 billion compared to $151.5 million or $0.60 per share (basic) on revenues of $757.7 million in 2016. The increase in earnings in 2017 reflects a full-year of operations at Mount Milligan and increased production at Kumtor. In addition in 2017, the Company recorded charges for a settlement reached with the Kyrgyz Republic Government of $60 million, an impairment charge of the Company’s Mongolian assets of $41.3 million ($39.7 million net of tax), a tax benefit of $21.3 million resulting from the enactment of new tax legislation in the U.S. and a gain of $9.8 million ($6.9 million net of tax) on the sale of the ATO property in Mongolia. Excluding these items, adjusted earnings^NG in 2017 were $281 million or $0.96 per share (basic) compared to adjusted earnings of $160.9 million or $0.64 per share (basic) in the comparative year.

2017 Fourth Quarter and Full Year Highlights

• Entered into a comprehensive settlement agreement in September 2017 with the Government of the Kyrgyz Republic to resolve all the outstanding matters affecting the Kumtor Project.
• Announced a friendly acquisition of AuRico Metals Inc. on November 7, 2017, which closed on January 8, 2018.

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Offset 2017 mining depletion and increased global gold mineral reserves to 16.3 million contained • ounces of gold (746.8 Mt at 0.7 g/t gold) at year-end, primarily as a result of the acquisition of AuRico Metals and successful brownfield exploration at Mount Milligan and Öksüt. Mineral reserves and mineral resources estimates are described in the Company’s news release of February 8, 2018.

• Achieved Company-wide 2017 gold production guidance producing 785,316 ounces; Kumtor produced 562,749 ounces exceeding the upper end of its favourably revised guidance, while Mount Milligan produced 222,567 ounces falling short of the lower end of its revised guidance.
• Mount Milligan produced 53.6 million pounds of copper during 2017, which was slightly below its guidance, but sold 59.7 million pounds of copper. The Mount Milligan mill was shutdown temporarily late December due to a shortage of water in the milling process. The mill was restarted utilizing one ball mill (approximately 30,000 tonnes per day) on February 5, 2018 once sufficient water became available.
• Exceeded Company-wide 2017 guidance for all-in sustaining costs on a by-product basis per ounce sold^NG at $688, excluding revenue-based tax in the Kyrgyz Republic and income tax ($572 per ounce sold in the fourth quarter 2017).
• Cash generated from operations totaled $500.9 million for the year (including $416.1 million from Kumtor and $150.6 million from Mount Milligan). In the fourth quarter 2017 cash generated from operations was $170.4 million (including $160 million from Kumtor and $29.2 million from Mount Milligan).
• Cash, cash equivalents, restricted cash and short-term investments at December 31, 2017 were $416.6 million.
• Received all of the necessary permits and approvals for Kumtor’s 2018 mine plan. The approvals and permits are valid through December 31, 2018.

Subsequent to December 31, 2017

• Received approval of the pastureland permit for the Öksüt Gold Project in Turkey, the last remaining outstanding permit needed for the project’s future development. In addition, received from the Turkish Ministry of Economy an investment incentive certificate which provides Öksüt with certain tax incentives.
• Received Board approval for the construction of the Öksüt Project, subject to continued availability of the OMAS Facility (defined below). Construction is expected to commence in April 2018.
• Received an amendment to the Mount Milligan Environmental Assessment Certificate that allows for limited withdrawal of water from Philip Lake until October 2018. The Company expects to commence drawing water by the end of February and to carry out the necessary studies, and to consult with affected First Nations groups to work toward a further, longer-term amendment to the Environmental Assessment Certificate.
• On February 1, 2018, entered into a $500 million, four-year senior secured revolving credit facility with a lending syndicate of eight financial institutions as lenders, led by The Bank of Nova Scotia and National Bank of Canada. This facility amended and restated the Centerra B.C. Facility which had an outstanding amount of $190 million and replaced the $125 million AuRico Acquisition Facility which was fully drawn. See “Liquidity – Credit Facilities”.

Commentary

Scott Perry, President and Chief Executive Officer of Centerra stated, “I am pleased to report that we met our overall gold production guidance producing 785,316 ounces at an all-in sustaining cost^NG on a byproduct basis of $688 per ounce sold, beating the low-end of our all-in-sustaining cost guidance for the year. Kumtor had another strong year exceeding its revised production guidance and beating its all-insustaining cost guidance, delivering 562,749 ounces of gold production at all-in-sustaining cost on a by- 1 University Avenue, Suite 1500 2 product basis of $698 per ounce sold in 2017. In 2017, Mount Milligan met its all-in-sustaining cost guidance at all-in-sustaining cost on a by-product basis of $505 per ounce sold but fell short of its gold and copper production producing 222,567 ounces of gold and 53.6 million pounds of copper.”

“Financially, both operations generated a significant amount of cash provided by operations before changes in working capital^NG during the year, Mount Milligan generated $138.6 million and Kumtor generated $424.3 million. The lifting of the restrictions on Kumtor’s cash along with the positive cash flow generated from both our operations during the year enabled the Company to aggressively pay down its debt by approximately $209 million. In 2017, we generated $188 million of free cash flow^NG from Kumtor and $127.4 million from Mount Milligan.”

“For 2018, we are estimating consolidated gold production to be in the range of 645,000 to 715,000 ounces. Additionally, we are expecting 47 million to 52 million pounds of payable copper production from Mount Milligan for the year. At Kumtor, we are expecting gold production to be weighted more towards the backhalf of the year with approximately 45% of the production expected in the fourth quarter of 2018. At Mount Milligan we expect 60% of the production to be in the second half of the year. Centerra’s projected consolidated all-in sustaining cost per ounce sold^NG on a by-product basis for 2018 is expected to be in the range of $799 to $885 per ounce.”

“Our projected capital expenditures for 2018, excluding capitalized stripping, is estimated to be $242 million which includes $100 million of sustaining capital^NG and $142 million of growth capital^NG spending. Growth capital spending includes $82 million for the Öksüt Project in Turkey where we expect to commence construction activity in April and $36 million to advance the Kemess Underground Project with pre-construction activities. Öksüt represents the new generation of low-cost production and an important third source of cash flow for the Company.” See “2018 Outlook” for further details.

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This Management Discussion and Analysis (“MD&A”) has been prepared as of February 22, 2018, and is intended to provide a review of the financial position and results of operations of Centerra Gold Inc. (“Centerra” or the “Company”) for the three and twelve months ended December 31, 2017 in comparison with the corresponding periods ended December 31, 2016. This discussion should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2017 prepared in accordance with International Financial Reporting Standards (“IFRS”). In addition, this discussion contains forward-looking information regarding Centerra’s business and operations. Such forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. See “Risk Factors” and “Caution Regarding Forward-Looking Information” in this discussion. All dollar amounts are expressed in United States dollars (“USD”), except as otherwise indicated. Additional information about Centerra, including the Company’s most recently filed Annual Information Form, is available at www.centerragold.com and on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

Overview

Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties worldwide and is one of the largest Western-based gold producers in Central Asia. Centerra’s principal operations are the Kumtor Gold Mine located in the Kyrgyz Republic and the Mount Milligan Gold-Copper Mine located in British Columbia, Canada.

Centerra’s common shares are listed for trading on the Toronto Stock Exchange under the symbol CG. As of February 22, 2018, there are 291,785,970 common shares issued and outstanding and options to acquire 4,816,297 common shares outstanding under its stock option plan.

As of December 31, 2017, Centerra’s significant subsidiaries are as follows:

Property Current Ownership Entity Property - Location Status 2017 2016 Kumtor Mine - Kyrgyz Kumtor Gold Company (“KGC”) Republic Operation 100% 100% Thompson Creek Metals Company Inc. Mount Milligan Mine - Operation 100% 100% Canada Langeloth Metallurgical Company LLC Langeloth - United States Operation 100% 100% (Molydbenum Processing Plant)

Boroo Gold LLC ("BGC") Boroo Mine - Mongolia Stand-by 100% 100%

100% 100% Centerra Gold Mongolia LLC Gatsuurt Project - Mongolia Pre-Development Öksüt Madencilik A.S. (“OMAS”) Öksüt Project - Turkey Pre-Development 100% 100% Greenstone Gold Property - Greenstone Gold Mines LP Canada Pre-development 50% 50% Thompson Creek Mining Co. Thompson Creek Mine - Care and 100% 100% United States Maintenance

Care and Thompson Creek Metals Company Inc. Endako Mine - Canada Maintenance 75% 75%

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On January 8, 2018, the Company completed the acquisition of AuRico Metals Inc. (“AMI”), thereby acquiring AMI’s Kemess Underground and Kemess East properties as well as a royalty portfolio which includes a 1.5% net smelter return (“NSR”) royalty on the Young-Davidson gold mine in Ontario and a 2.0% NSR royalty on the Fosterville mine in Australia. See “Subsequent to December 31, 2017” for further information.

As at December 31, 2017, the Company has also entered into agreements to earn an interest in joint venture exploration properties located in Mexico, Sweden and Nicaragua. In addition, the Company has exploration properties in Armenia, Canada and Turkey.

Substantially all of Centerra’s revenues are derived from the sale of gold and copper. The Company’s revenues are derived from gold and gold/copper concentrate production from its mines and gold and copper prices realized upon the sale of these products. Gold doré production from the Kumtor mine is purchased by Kyrgyzaltyn JSC (“Kyrgyzaltyn”), a Kyrgyz Republic state owned refinery and significant shareholder of Centerra, for processing at its refinery in the Kyrgyz Republic while gold and copper concentrate produced by the Mount Milligan mine in Canada is sold to various smelters and off-take purchasers.

The Mount Milligan Mine in Canada is subject to a streaming arrangement whereby RGLD Gold AG and Royal Gold Inc. (collectively “Royal Gold”) is entitled to purchase 35% of the gold and 18.75% of the copper produced from the Mount Milligan Mine for $435 per ounce of gold delivered and 15% of the spot price per metric tonne of copper delivered (the “Mount Milligan Streaming Arrangement”).

The Company’s costs are comprised primarily of operating costs at the Kumtor and Mount Milligan mines and the Langeloth molybdenum processing facility, project development costs at the Öksüt Gold Project and the Greenstone Gold Property, closure and holding costs of the Boroo Mine (a majority of the Boroo infrastructure is on stand-by pending progress on the Gatsuurt Gold Project), care and maintenance costs at the Company’s molybdenum mines (Endako Mine and Thompson Creek Mine), exploration expenses relating to the Company’s own projects and its earn-in projects, administrative costs from offices worldwide and depreciation, depletion and amortization (“DD&A”).

There are many operating variables that affect the cost of producing an ounce of gold and a pound of copper. In the mine, unit costs are influenced by the ore grade and the stripping ratio. The stripping ratio is the ratio of the tonnage of waste material which must be removed per tonne of ore mined. Ore grade refers to the amount of gold and/or copper contained in a tonne of ore. The significant costs of mining include labour, diesel fuel and equipment maintenance.

At the mill, costs are impacted by the ore grade and the metallurgical characteristics of the ore, which can impact gold and copper recovery. For example, a higher grade ore would typically result in a lower unit production cost. The significant costs of milling are labour, energy, grinding media, reagents, consumables and mill maintenance.

Mining and milling costs are also affected by the cost of labour, which depends mostly on the availability of qualified personnel in the region where the operations are located, the wages in those markets, and the number of people required. Mining and milling activities involve the use of many materials. The varying costs of acquiring these materials and the amount used in the processing of the ore also influence the cash costs of mining and milling. The non-cash costs (namely DD&A) are influenced by the amount of capital costs related to the mine’s acquisition, development and ongoing capital requirements and the estimated useful lives of capital items.

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Figure A

In Figure A, the Company’s 2017 production costs^NG at its two operating mines totaled $551 million, which includes a full year of production at Mount Milligan. Production costs at Kumtor were 3% lower than 2016 ($332 million in 2017 compared to $343 million in 2016). The reduction reflects the impact of lower input prices (mainly for consumables) and the varying levels of production in both years. These impacts on costs are discussed in the operational sections of this MD&A. There is no comparable data for Mount Milligan as the Company acquired the asset on October 20, 2016.

Over the life of each mine, another significant cost that must be planned for is the closure, reclamation and decommissioning of each operating site. In accordance with standard practices for international mining companies, Centerra carries out remediation and reclamation work during the operating period of the mine, where feasible, in order to reduce the final decommissioning costs. Nevertheless, the majority of rehabilitation work can only be performed following the completion of mining operations. Centerra’s practice is to record the estimated final decommissioning costs based on conceptual closure plans, and to accrue these costs according to the principles of IFRS. Kumtor has established a reclamation trust fund to pay for these costs (net of forecast salvage value of assets) from the revenues generated over the life of mine. At Boroo, 50% of the upcoming year’s annual environmental budget is deposited by Boroo into a government account and such funds are recovered by Boroo during the mine closure phase after completion of the annual environmental commitments. As required by Canadian provincial laws and US federal and state laws, the Company has provided reclamation bonds for mine closure obligations at its Canadian and U.S. sites, including the Mount Milligan Mine.

The Company reports the results of its operations in U.S. dollars, however not all of its costs are incurred in U.S. dollars. As such, the movement in exchange rates between currencies in which the Company incurs costs and the U.S. dollar also impact reported costs of the Company.

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Economic Indicators

Gold Price Copper Price The average quarterly gold spot price of $1,275 The average quarterly copper spot price increased in the in the fourth quarter was in-line with the 2017 fourth quarter to $3.09 per pound, the highest quarterly quarterly high of $1,278 reached in third quarter. average of 2017, from $2.88 per pound in the third The average gold spot price for 2017 was $1,258 quarter. The average copper spot price for 2017 was per ounce, an increase of 1% over the average in $2.80 per pound, an increase of 27% over the average 2016. in 2016.

Figure B Figure C

Currency

Figure D Canadian dollar Kyrgyz Som

Canadian Dollar

The Canadian dollar, despite starting the year under pressure, and facing the prospects of a widening rate disadvantage with the U.S., saw a 7% gain against the U.S. dollar during 2017 (1.34 to 1.25). With the exception of the U.S. dollar, the Canadian dollar underperformed against other major currencies. In Canada, the Bank of Canada raised its overnight rate twice, from 0.5% to 1%, and suggested it is beginning 1 University Avenue, Suite 1500 7 a tightening phase although it continues to be cautious on concerns surrounding ongoing NAFTA negotiations. The Canadian dollar is highly exposed to fluctuations in crude oil prices due to the country’s status as a major exporter of oil. Energy prices are predicted to remain strong in the short term and interest rates to increase through 2018, which may help prevent potential depreciation of the Canadian dollar.

Kyrgyz Som

The Kyrgyz Som to U.S. dollar exchange rate appreciated 1% over 2017. The Som continues to be influenced by the strengthening of currencies of the Kyrgyz Republic’s main trading partners, mainly Russia, and by economic growth in the Kyrgyz Republic. In 2017, the Russian Ruble and Kazak Tenge, strengthened against the U.S. dollar by 5% and 2%, respectively. The strengthening in the Russian ruble reflects higher oil prices and Russia’s improving economic situation. Independent of the performance of the Kyrgyz Republic’s main trading partners, economic growth in the Kyrgyz Republic in 2017 can be attributed to increases in gold mining, manufacturing, electricity generation and construction.

Foreign Exchange Transactions

The Company receives its revenues through the sale of gold, copper and molybdenum in U.S. dollars. The Company has operations in Canada, where the Mount Milligan Mine and its corporate head office are also located, the Kyrgyz Republic, Turkey, Mongolia and the United States of America. During 2017, the Company incurred combined expenditures (including capital) totalling approximately $1,066 million. Approximately $567 million of this (53%) was in currencies other than the U.S. dollar (Figure F). The percentage of Centerra’s non-U.S. dollar costs, by currency was, on average, as follows:

Figure F

In 2017, Centerra’s non-U.S. dollar costs were incurred 51% in Canadian dollars, 40% in Kyrgyz soms, 5% in Euros, 2% in Mongolian tugrik and 1% in Turkish lira. The average value of the Turkish lira depreciated against the U.S. dollar over the year by approximately 3% from its value at December 31, 2016. The Euro, Canadian dollar, Mongolian tugrik and Kyrgyz som appreciated against the U.S. dollar by approximately 7%, 3%, 2%, and 1%, respectively, from their value at December 31, 2016. The net impact of these movements in the year ended December 31, 2017, after taking into account currencies held at the beginning of the year, was to increase annual costs by $9.1 million (increase of $16 million in the year ended December 31, 2016), inclusive of a foreign exchange gain on Canadian dollars acquired in the fourth quarter of 2017 due to the anticipated closing of the acquisition of AMI in January 2018 ($3.0 million) and currency derivative gain of $1.2 million (nil for the year ended December 31, 2016).

Diesel Fuel Prices

One of the most significant movements in commodity prices in 2017 was the continued strengthening of oil prices.

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According to the U.S. Energy Information Administration, based on the global benchmark North Sea Brent, crude oil prices ended 2017 at $65/bbl the highest end-of-year price since 2013. Brent prices have increased $10/bbl since the end of 2016. West Texas Intermediate (“WTI”) crude oil prices averaged $51/bbl in 2017, up $7/bbl from the 2016 average, and ended the year $6/bbl higher than at the end of 2016.

Figure E

Fuel costs represent a significant cost component for Centerra’s mining operations. Prices for Kumtor diesel fuel in 2017 generally reflected the price movements of Brent crude oil, which dipped downward during summer months of 2017 and then gradually started increasing towards the end of the year. On average, the purchase prices for diesel fuel for Kumtor were up 8% in 2017 compared with 2016, averaging $0.41/l for the year. Kumtor sources its fuel from Russia either directly or through Kyrgyz distributors. Kumtor’s diesel prices include added costs for other factors such as seasonal premiums for winterizing of diesel fuel and transportation costs from the Russian refineries.

To manage its exposure to fluctuations in diesel fuel prices, the Company has established a diesel fuel price hedge program. See “Financial Instruments – Fuel Hedges”.

Liquidity

Financial liquidity provides the Company with the ability to fund future operating activities and investments. The Company’s financial risk management policy focuses on cash preservation, while maintaining the liquidity necessary to conduct operations on a day-to-day basis. The Company manages counterparty credit risk, in respect of cash and short-term investments, by maintaining bank accounts with highly-rated U.S. and Canadian banks and investing only in highly-rated Canadian and U.S. Government bills, term deposits or banker’s acceptances with highly-rated financial institutions, and corporate direct credit of highly-rated, highly-liquid issuers.

Centerra generated $500.9 million in cash from operations in 2017 and has a balance of cash, cash equivalents and short-term investments of $415.9 million as at December 31, 2017.

As at December 31, 2017, the Centerra B.C. Facility, which was entered into as part of the acquisition of Thompson Creek, had an outstanding balance of $190 million at December 31, 2017, after repayments of $135 million in 2017 (outstanding balance as at December 31, 2016 - $325 million). Subsequent to December 31, 2017, this facility was amended and restated to become a corporate facility (see Credit Facility - Centerra Revolving Term Corporate Facility).

As at December 31, 2017, Centerra had drawn $76 million against its $150 million revolving line of credit with the European Bank for Reconstruction and Development (“EBRD”). Subsequent to December 31, 2017, the funds drawn were repaid and the credit facility with EBRD was cancelled.

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The Company believes its cash on hand, cash flow from the Company’s Kumtor and Mount Milligan operations and cash from the Company’s existing credit facilities will be sufficient to fund its anticipated operating, construction and development cash requirements through to the end of 2018.

Capital Management

The Company’s primary objective with respect to its capital management is to provide returns for shareholders by ensuring that it has sufficient cash resources to maintain its ongoing operations, pursue and support growth opportunities, continue the development and exploration of its mineral properties, satisfying debt repayment requirements and other obligations, and certain benefits for other stakeholders.

Management is aware that market conditions, driven primarily by metal prices, may limit the Company’s ability to raise additional funds. The Company is also required to maintain a number of financial covenants as part of its credit facilities, which may limit the Company’s ability to access future funding. These and other factors are considered when shaping the Company’s capital management strategy.

Credit Facilities

Centerra was in compliance with the terms of all of its facilities at December 31, 2017.

Centerra EBRD Corporate Facility In 2016, the Company entered into a five-year $150 million revolving credit facility (the “EBRD Facility”) with EBRD. The EBRD Facility included $50 million for the purpose of funding direct and indirect costs associated with the Gatsuurt Project. At December 31, 2017, the Company had drawn $76 million under the EBRD Facility, after making $74 million of repayments in 2017.

Subsequent to December 31, 2017 and in connection with the entering into of the Corporate Facility, the Company repaid the remaining $76 million principal amount outstanding under the EBRD Facility and subsequently cancelled the EBRD Facility.

Centerra B.C Holdings Credit Facility As part of the acquisition of Thompson Creek in October 2016, Centerra B.C. Holdings Inc., a whollyowned subsidiary of the Company, secured financing from a lending syndicate in the aggregate amount of $325 million (the “Centerra B.C. Facility”), consisting of a $250 million non-revolving term facility and a $75 million senior secured revolving credit facility.

In July 2017, the Company entered into an amendment of the Centerra B.C. Facility to increase the senior secured revolving credit facility under the Centerra B.C. Facility from $75 million to $125 million. The amendment also includes additional favourable terms such as permitting upstream distributions of up to $50 million without the matching pre-payment requirement of the original agreement. Prior to the amendment, the Centerra B.C. Facility required Centerra B.C. Holdings to make a matching pre-payment on all distributions to Centerra. The amendment became effective in August 2017, when the conditions precedents were satisfied, including the execution of hedges for 50% of the gold and 75% of the copper production covering Mount Milligan’s production from July 2017 to June 2019.

In September 2017, in addition to making the scheduled $12.5 million payment towards the non-revolving term facility, the Company repaid the outstanding balance on the revolving facility ($74.4 million). As at December 31, 2017, $190 million was drawn on the Centerra B.C. Facility ($190 million non-revolving 1 University Avenue, Suite 1500 10 term facility and nil from the revolving credit facility). See also “Centerra Revolving Term Corporate Facility” below.

Subsequent to December 31, 2017, Centerra B.C. Facility was amended and restated in connection with the Company entering into the Corporate Facility.

OMAS Facility In 2016, OMAS, a wholly-owned subsidiary of the Company, entered into a $150 million five-year revolving credit facility (the “OMAS Facility”) that currently expires on December 30, 2021. The purpose of the OMAS Facility is to assist in financing the construction of the Company’s Öksüt Project.

Availability of the OMAS Facility is subject to customary conditions precedent, including receipt of all necessary permits and approvals. If the conditions are not satisfied, waived or amended by the deadline (noted below), the commitments under the OMAS Facility will be cancelled. The original deadline for satisfaction of the conditions of June 30, 2017 has been extended several times given the delay in obtaining necessary permits for the Öksüt Project. The current deadline is March 15, 2018, however OMAS and lenders are currently negotiating to further extend the deadline to June 30, 2018. As part of these negotiations, it is expected that the term of the facility will be extended beyond December 30, 2021 and that Centerra will provide a guarantee of OMAS’s obligations under the OMAS Facility but that such guarantee would only be effective if certain conditions relating to the tenure of the Öksüt mining license are not satisfied by August 22, 2022.

As at December 31, 2017, $4.8 million (December 31, 2016 - $4.2 million) of OMAS Facility deferred financing fees were included in prepaid expenses (note 10) as the Company has yet to draw from the facility. The deferred financing fees are being amortized over the term of the OMAS Facility. The Company expects to be in a position to draw on the OMAS Facility in the second quarter of 2018. See “Caution Regarding Forward Looking information”.

AuRico Metals Inc. Acquisition Facility Subsequent to the end of the year, on January 8, 2018, the Company announced it had acquired all of the issued and outstanding common shares of AuRico Metals Inc. (“AMI”). The purchase was funded, in part, by a new $125 million acquisition facility (“AuRico Acquisition Facility”) with the Bank of Nova Scotia, as administrative agent, lead arranger and lender. The AuRico Acquisition Facility was repaid and cancelled subsequent to December 31, 2017, after the Company entered into the Corporate Facility, as noted below.

Centerra Revolving Term Corporate Facility On February 1, 2018, the Company entered into a $500 million four-year senior secured revolving credit facility (the "Corporate Facility") with a lending syndicate led by The Bank of Nova Scotia and National Bank of Canada.

The Corporate Facility is to be held at the corporate level and is an amendment and restatement of the Centerra B.C. Facility (discussed above), which had an outstanding balance owed of $190 million (continued under the Corporate Facility). The Corporate Facility also replaced the EBRD Facility and the AuRico Acquisition Facility discussed above. The Corporate Facility is for general corporate purposes, including working capital, investments, acquisitions and capital expenditures and as at February 22, 2018, $315 million was drawn on the Corporate Facility.

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Mineral Reserves and Mineral Resources

On February 8, 2018, the Company released the results of the updated mineral reserve and mineral resource estimates for the Kumtor mine, the Mount Milligan mine and re-iterated mineral reserve and mineral resource estimates for the Company’s other projects, including the Hardrock deposit, all as of December 31, 2017. The release also included the Kemess Project which was acquired on January 8, 2018 as part of the AuRico Metals Inc. acquisition. For additional details, please see the news release “Centerra Gold 2017 Year-End Statement of Mineral Reserves and Resources and Fourth Quarter Exploration Update” filed on SEDAR and posted on the Company’s website on February 8, 2018.

Mount Milligan’s mineral reserves and mineral resources are presented on a 100% basis. Sales of gold and copper from the Mount Milligan mine are subject to the Mount Milligan Streaming Arrangement whereby Royal Gold is entitled to 35% and 18.75% of gold and copper sales respectively. Under the Mount Milligan Streaming Arrangement this streaming arrangement, Royal Gold pays Centerra $435 per ounce of gold delivered and 15% of the spot price per metric tonne of copper delivered.

Highlights:

Gold Mineral Reserves

• Centerra’s estimated proven and probable gold mineral reserves increased by 343,000 contained ounces, after processing of 1.1 million contained ounces of gold in 2017 and the addition of 1.9 million contained ounces of gold as a result of the purchase of AuRico Metals which closed on January 8, 2018. Centerra’s proven and probable mineral reserves now total an estimated 16.3 million ounces of contained gold (746.8 Mt at 0.7 g/t gold), compared to 16 million contained ounces (673.4 Mt at 0.7 g/t gold) as of December 31, 2016. The 2017 year-end gold mineral reserves have been verified and estimated using a gold price of $1,250 per ounce, except for the Kumtor Mine and the Kemess Underground Project which used a gold price of $1,200 per ounce. At the Kumtor Mine estimating gold mineral reserves using a gold price of $1,250 per ounce would result in no material change to the contained ounces.

Gold Mineral Resources

• Centerra’s measured and indicated gold mineral resources, exclusive of gold mineral reserves, increased by 2.8 million contained ounces compared to the December 31, 2016 estimate and are now estimated to total 10.2 million ounces of contained gold (559.2 Mt at 0.6 g/t gold). The increase is primarily a result of the inclusion of 3.2 million contained ounces of gold (1.5 million contained ounces of gold from the Kemess Underground and 1.7 million contained ounces of gold from the Kemess East deposit) as a result of the acquisition of AuRico Metals and the removal of 771,000 contained gold ounces of measured and indicated mineral resources from the ATO property in Mongolia as a result of the sale of the property to Steppe Gold LLC and Steppe Gold Limited.
• Centerra’s inferred gold mineral resource estimate totals 6.8 million contained ounces of gold (168 Mt at 1.3 g/t gold), an increase of 1.0 million contained ounces from December 31, 2016. The increase is primarily a result of the inclusion of 917,000 contained ounces of gold (277,000 contained ounces of gold from the Kemess Underground and 640,000 contained ounces of gold from the Kemess East deposit) as a result of the acquisition of AuRico Metals. In addition, at Mount Milligan inferred mineral resources increased by 265,000 contained ounces of gold from additional drilling.

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