Centerra Gold’s Kemess Preliminary Economic Assessment Highlights Strong Economics that Support the Company’s Long-Term Growth Pipeline Expanded mineral resource and strong exploration upside support long-term production potential
Centerra Gold’s Kemess Preliminary Economic Assessment Highlights Strong Economics that Support the
Company’s Long-Term Growth Pipeline
Expanded mineral resource and strong exploration upside support long-term production potential
Streamlined project execution driven by integrated open pit and underground mining strategy
Existing infrastructure and staged capital investment result in lowered execution risk
This news release contains forward-looking information about expected future events that is subject to risks and assumptions set out in the “Cautionary Statement on Forward-
Looking Information” below. All figures are in United States dollars unless otherwise stated. All production figures reflect payable metal quantities and are on a 100% basis, unless
otherwise stated. For references denoted with NG, refer to the “Non-GAAP Financial Measures” disclosures at the end of this news release for a description of these measures. The
preliminary economic assessment (“PEA”) described in this news release is preliminary in nature and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be
realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
TORONTO, Jan. 19, 2026 -- Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG) (NYSE: CGAU) is pleased to announce an updated mineral resource and the results of a
PEA for its Kemess project (“Kemess” or the “Project”) in British Columbia, showing robust economics including an after-tax net present value (5%) (“NPV 5%”) of $1.1 billion and an
after-tax internal rate of return (“IRR”) of 16%, using long-term pricing of $3,000 per ounce gold and $4.50 per pound of copper.
President and CEO, Paul Tomory, commented, “The Kemess PEA represents an important step forward in advancing Centerra’s organic growth pipeline in British Columbia. The
study builds on a significant mineral endowment, outlining a de-risked restart plan that leverages substantial existing infrastructure and employs an integrated development strategy
based on conventional open pit and longhole open stoping underground mining operation. This approach supports strong economics, including an initial 15-year mine life with average
annual production of 171,000 ounces of gold and 61 million pounds of copper (approximately 267,000 gold equivalent ounces), at an all-in sustaining cost (“AISC”) on a by-product
basisNG of $971 per ounce. Given the significant unstreamed gold and copper production profile, the value of Kemess increases to $2.8 billion at spot metal prices.”
Paul Tomory continued, “The expanded resource estimate reflects a thorough and disciplined evaluation of the full body of available geological data across the site including additional
drilling and technical work in the Nugget zone and the historical Kemess South deposit. The PEA evaluates only the Kemess Main and Kemess Underground areas, which represent
approximately 47% of the total indicated and inferred resource tonnes, highlighting the potential for additional resources to be incorporated into future technical studies.”
Paul Tomory concluded, “The PEA also demonstrates the strategic opportunity Kemess represents as Centerra continues to advance its self-funded organic growth pipeline. We see
an opportunity for Kemess to become Centerra’s second long-life gold-copper asset in British Columbia, complementing Mount Milligan and strengthening our presence in the
Toodoggone, one of the most prospective mining jurisdictions in North America. Kemess represents a compelling growth opportunity, supported by strong economics and significant
upside exploration potential in the deep Kemess Offset zone and along the Kemess East trend. We are now focused on ongoing exploration and advancing technical work towards a
Pre-Feasibility Study expected in 2027.”
The Honourable, David Eby, Premier of British Columbia, commented “This is promising news for our province and Canada as a whole. Centerra’s continued interest reflects the
incredible momentum we’re building in British Columbia’s mining sector. The potential reopening of the Kemess mine is one of several mining projects that will create thousands of
good paying, family supporting jobs, and generate billions of dollars for our economy. Together with investors, communities, and First Nations, we are meeting the moment as the
economic engine of a stronger and more independent Canada.”
Kemess Updated Resource and PEA Highlights
• Expanded mineral resource at Kemess enhances the project’s overall scale and supports its long-term production potential: The updated mineral resource
contains 3.3 million ounces of gold and 1.1 billion pounds of copper in the indicated category, and 3.6 million ounces of gold and 1.2 billion pounds of copper in the inferred
category. Details of the mineral resource are in the tables below. The resource estimate reflects a comprehensive evaluation of the available geological data across the site.
Recent drilling and technical work included the Nugget zone and the historical Kemess South deposit, which when combined with the Kemess Main zone, emphasize the
scale of the mineral resource at Kemess. The findings of this PEA are limited to the Kemess Main and Kemess Underground areas as a subset of the mineral resource.
• Strong project economics complemented by leverage to higher metal prices, enhance project attractiveness: The PEA confirms Kemess’s robust economics,
including NPV5% of $1.1 billion and IRR of 16%, based on long-term gold and copper price assumptions of $3,000 per ounce and $4.50 per pound, respectively. The PEA
mineral inventory of over 2.3 million ounces of gold and 851 million pounds of copper provides Kemess with strong leverage to rising metal prices, with further upside potential
as ongoing exploration advances resource growth and confidence. At spot commodity prices of approximately $4,500 per ounce of gold and $6.00 per pound of copper, the
after-tax NPV5% increases to $2.8 billion and the IRR increases to 29%.
• Streamlined project execution through integrated open pit and underground mining strategy: The Kemess PEA outlines a development approach in which open pit
mining begins first, followed by the start of underground production approximately two years later. Once underground production commences, both mining methods operate
concurrently for the remainder of the projected 15-year mine life. This integrated mine plan helps streamline the project execution, optimize the plant feed and utilize the
existing infrastructure, while maintaining the expected timeline to first production in late 2031. Key critical-path items include the required BC Hydro sub-station upgrade, as
well as permitting activities.
• Lowered execution risk resulting from existing infrastructure and staged capital investment: Kemess’s capital profile is structured to reflect the project’s development
sequence, with open pit mining starting first and underground production added shortly thereafter. Approximately $771 million in initial non-sustaining capital expendituresNG is
required to achieve first production from the open pit. This includes open pit capital stripping, construction of the underground conveyor system from Kemess Main to the
Kemess South process plant, and refurbishment of the process plant and camp. An additional $277 million in expansionary non-sustaining capital expenditures NG will be
invested over the two years following open pit start-up to support the commencement of underground operations. This includes underground development and the construction
of a leach plant, which is expected to both improve overall gold recovery by approximately 14% and provide valuable optionality by enabling the processing of ore from potential
satellite deposits in the future.
• Significant exploration upside across the property: In 2025, a total of 28 kilometres (“km”) of drilling was completed, focused on infill drilling at Kemess Main open pit,
Kemess Underground and Nugget zones, as well as resource extension drilling at Kemess Offset. Results confirm the continuity of mineralization within the resource areas.
Exploration programs planned for 2026 will prioritize additional infill drilling of the Kemess Main zone, and delineating porphyry mineralization at the Kemess Offset zone to
evaluate underground mineable grades and potential continuity with the Kemess East resource. Future exploration opportunities may also include testing the eastern
extensions of Kemess East to KEY and Hilda South targets.
• Potential to become Centerra’s second long-life gold-copper asset in British Columbia: With an estimated initial 15-year mine life and average annual production of
171,000 ounces of gold and 61 million pounds of copper (approximately 267,000 gold equivalent ounces assuming $3,000 per ounce gold, $4.50 per pound copper and $37.50
per ounce silver), Kemess has the scale and jurisdictional advantages to complement Mount Milligan as a cornerstone asset. Importantly, Kemess is unencumbered by a gold
or copper stream, positioning the project to deliver stronger economics and greater value retention for Centerra. The PEA reinforces Kemess as a high-quality growth project,
capable of contributing meaningful long-term gold and copper production and supporting strong future cash flow generation.
Summary of Kemess PEA Key Metrics
Summary of Kemess PEA Key Metrics (1)
Production
Type of operation Open Pit & Underground
Mine Life (years) 15
Total gold production (koz) 2,323
Average annual gold production(2)(koz) 171
Total copper production (Mlbs) 851
Average annual copper production(2)(Mlbs) 61
Total process plant feed (M tonnes) 254,869
Average process plant throughput – post-2033 (tonnes per day “tpd”) 50,000
Average gold grade (grams per tonne “g/t”) 0.39
Average copper grade (%) 0.18
Average gold recovery (%) 74.5
Average copper recovery (%) 88.2
Costs
Open pit mining cost per tonne mined ($/tonne) 2.81
Underground mining cost per tonne mined(3)($/tonne) 31.48
Processing cost per tonne processed ($/tonne) (4) 6.11
General & Administrative (“G&A”) cost per tonne processed(5)($/tonne) 3.83
Gold production costs per ounce sold ($/oz) 1,401
All-in sustaining costs on a by-product basis NGper ounce sold ($/oz) 971
Capital Expenditures
Initial non-sustaining capital expendituresNG(6)($ millions) 771
Expansionary non-sustaining capital expendituresNG($ millions) 277
Sustaining capital expendituresNG(7)($ millions) 595
PEA Economics(8)
After-tax NPV5%($ millions) 1,094
IRR (%) 16.4
Economics at Spot Commodity Prices(9)
After-tax NPV5%($ millions) 2,754
IRR (%) 28.7
(1) The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. (2) 2033-2045 excluding start-up and ramp-down. (3) Underground mining cost includes underground operating development, drill and blast, paste
backfill, underground crushing and conveying, production geology, equipment maintenance, and power costs. The underground mining costs were calculated using engineering
estimates and benchmarks from similar operations. The direct underground mining costs are estimated at $23.51 (C$32.45) per ore tonne mined, including primary and secondary
stoping. The underground operating development and ore conveying costs are estimated to be $7.59 (C$10.47) and $0.38 (C$0.52) per ore tonne mined. (4) Includes pumping costs
to tailings storage facility. (5) Excludes corporate allocations and includes impact benefit agreement costs over life of mine (“LOM”). (6) Does not include lease payments of $40
million which impact net cash flow. (7) Does not include capital lease payments of $229 million which are included in the economics and costs above. (8) PEA economics are based
on long-term prices of $3,000/oz gold and $4.50/lb. USD/CAD exchange rate assumptions are $1.38:1. (9) Economics at spot commodity prices assumes $4,500/oz gold and
$6.00/lb copper over LOM. USD/CAD exchange rate assumptions are $1.38:1.
Kemess PEA Summary
Kemess is located in the highly prospective Toodoggone District in the northern interior of British Columbia. It was a past producing mine which benefits from significant infrastructure
already on-site, including: a 380 km, 230 kilovolt power line; a 50,000 tpd nameplate processing plant in need of some refurbishment and equipment replacements; “mothballed” site
infrastructure including a water treatment plant, camp, administration facilities, air strip, truck shop and warehouse which will require some refurbishment; and tailings storage using
the previously mined pit as well as an existing tailings facility, which is capable of expansion.
Kemess is a gold-copper porphyry deposit, and the PEA outlines a development approach in which conventional truck-shovel open pit mining begins first, followed by the start of
longhole open stoping underground operations approximately two years later. Once underground production commences, both mining methods operate concurrently for the remainder
of the 15 year mine life. Average annual production is expected to be 171,000 ounces of gold and 61 million pounds of copper (approximately 267,000 gold equivalent ounces
assuming $3,000 per ounce gold, $4.50 per pound copper and $37.50 per ounce silver), at an AISC on a by-product basis NG of $971 per ounce. This integrated mine plan helps
streamline the project execution, optimize plant feed and utilize existing infrastructure, while maintaining the expected timeline to first production in late 2031. Key critical-path items
include the required BC Hydro sub-station upgrade, as well as permitting activities.
The PEA includes the construction of a leach plant at Kemess, planned as part of the expansionary capital program. The plant is expected to increase overall gold recovery by
approximately 14%, enhancing the project’s economics. In addition to improving recovery, it would provide valuable flexibility by enabling the processing of ore from potential satellite
deposits in the future. The leach plant is expected to cost $116 million, including indirects and contingency, as part of the expansionary non-sustaining capital expenditures NG,
starting in 2032.
Kemess will initially produce a gold-copper concentrate that will be shipped to a British Columbia port and then transported to overseas refineries for final processing, similar to Mount
Milligan. With the addition of the leach plant as the underground operations come online, Kemess is expected to produce both a gold-copper concentrate and gold doré bars, with
82% of production to be in the form of concentrate.
The PEA estimates open pit mining costs to average $2.81 per tonne mined and underground mining costs, including development, to average $31.48 per tonne mined over the LOM.
Processing costs are estimated to average $6.11 per tonne processed, and G&A costs are estimated to average $3.83 per tonne processed.
Kemess PEA Production and Cost Profile (1)
(1) AISC on a by-product basisNG is presented net of copper and silver revenues, after reflecting the impact of the silver stream.
Capital Expenditures NG
Initial non-sustaining capital expenditures NG required to achieve first production from the open pit are estimated at $771 million, and focused mainly on open pit capital stripping,
construction of the underground conveyor system from the Kemess Main zone to the Kemess South process plant, and refurbishment of the process plant, open pit infrastructure
and camp. Approximately 30% of the initial non-sustaining capital NG is allocated to stripping and underground development activities, with the remainder directed towards
infrastructure construction and development.
An additional $277 million in expansionary non-sustaining capital expendituresNG will be invested following open pit start-up to support the commencement of underground operations.
This includes underground development and the construction of a leach plant, which is expected to improve overall gold recovery by approximately 14%.
Sustaining capital expenditures NG over the LOM are estimated at approximately $595 million, averaging $98 million per year in the first six years, and $26 million per year over the
remainder of the mine life. Sustaining capital in the early years includes a paste backfill plant for underground operations and the infrastructure and civil works required to transition
tailings deposition to the Kemess South tailings storage facility.
The mining fleet is expected to be leased using equipment leases. The capital lease payments of approximately $40 million made during the initial project development period, are
not included in the initial non-sustaining capital expenditures NG, but form part of the initial cash outflow prior to first production. Capital lease payments, including equipment and
other leases, of $229 million, made after first production, are treated as sustaining capital lease payments and are not included in the sustaining capital expenditure estimates.
Sustaining capital lease payments are included in the determination of the LOM AISC for the Project. Refer to the PEA LOM Summary table at the end of this news release for
details on capital lease payments throughout the LOM.
A breakdown of the initial non-sustaining capitalNG is included in the table below.
Initial Non-Sustaining Capital NGBreakdown Total ($M)
Open pit conveyor system 65
Open pit crusher 25
Process plant refurbishment 96
Kemess Main infrastructure 53
General site infrastructure 27
Tailings facility (existing Kemess South pit) 9
Subtotal Infrastructure Directs 275
Indirects 110
Contingency 115
Subtotal Infrastructure 500
Capitalized open pit stripping 124
Capitalized pre-production G&A 101
Open pit fleet 7
Open pit conveyor tunnel development 39
Total Initial Non-Sustaining Capital NG 771
Non-sustaining lease payments 40
Total Initial Non-Sustaining Capital NGand Non-Sustaining Lease Payments 811
NOTE: Totals may not sum due to rounding.
Updated Mineral Resource Estimate
The updated indicated mineral resource includes 244.4 million tonnes, with an average grade of 0.42 g/t gold and 0.21% copper, containing 3.3 million ounces of gold and 1.1 billion
pounds of copper. The updated inferred mineral resource includes 299.6 million tonnes, with an average grade of 0.37 g/t gold and 0.19% copper, containing 3.6 million ounces of gold
and 1.2 billion pounds of copper. It reflects a gold and copper price assumption of $2,400 per ounce and $4.00 per pound, respectively, and incorporates additional ounces from the
Nugget and Kemess South deposits resulting from recent drilling and technical work. For the purposes of the PEA mine plan and economics, only 47% of this updated indicated and
inferred resource tonnes has been evaluated, limited to the Kemess Main and Kemess Underground deposits.
Kemess Gold Mineral Resources (1,2)
December 31, 2025 April 15, 2025
Tonnes
(kt)
Grade
(g/t Au)
Contained Metal
(koz)
Tonnes
(kt)
Grade
(g/t Au)
Contained Metal
(koz)
Indicated Resources
Open Pit – Kemess Main 170,513 0.30 1,668 142,570 0.32 1,467
Open Pit – Kemess South 13,204 0.37 158 - - -
Underground - Kemess UG 33,223 0.82 877 25,347 0.91 745
Underground - Kemess East 27,491 0.64 565 25,074 0.66 531
Total Indicated 244,431 0.42 3,269 192,990 0.44 2,742
Inferred Resources
Open Pit – Kemess Main 237,050 0.30 2,299 124,428 0.31 1,232
Open Pit – Kemess South 198 0.34 2 - - -
Underground - Kemess UG 20,094 0.74 481 10,821 0.96 335
Underground - Kemess East 42,252 0.57 772 34,010 0.60 661
Total Inferred 299,593 0.37 3,555 169,260 0.41 2,228
NOTE: Totals may not sum due to rounding. (1) Refer to Tables “Centerra Gold Updated Kemess Resources Summary”, including the respective footnotes and the “Additional
Footnotes” section at the end of the release. (2) The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
Kemess Copper Mineral Resources (1,2)
December 31, 2025 April 15, 2025
Tonnes
(kt)
Grade
(% Cu)
Contained Metal
(Mlbs)
Tonnes
(kt)
Grade
(% Cu)
Contained Metal
(Mlbs)
Indicated Resources
Open Pit – Kemess Main 170,513 0.15 575 142,570 0.16 503
Open Pit – Kemess South 13,204 0.13 38 - - -
Underground - Kemess UG 33,223 0.36 265 25,347 0.39 217
Underground - Kemess East 27,491 0.44 268 25,074 0.45 251
Total Indicated 244,431 0.21 1,146 192,990 0.23 971
Inferred Resources
Open Pit – Kemess Main 237,050 0.13 682 124,428 0.14 395
Open Pit – Kemess South 198 0.08 0.4 - - -
Underground - Kemess UG 20,094 0.33 148 10,821 0.40 95
Underground - Kemess East 42,252 0.42 393 34,010 0.44 331
Total Inferred 299,593 0.19 1,223 169,260 0.22 821
NOTE: Totals may not sum due to rounding. (1) Refer to Tables “Centerra Gold Updated Kemess Resources Summary”, including the respective footnotes and the “Additional
Footnotes” section at the end of the release. (2) The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
Exploration Potential
In 2025, a total of 28 km of drilling was completed, focused on infilling the resource at Kemess Main open pit, Kemess Underground and Nugget, as well as resource extension
drilling at Kemess Offset. Results confirm the continuity of mineralization within the resource areas.
Exploration activities will continue in 2026 with infill drilling in the Kemess Main zone, as well as at the Kemess Offset zone to help bridge the mineralization gap between Kemess
Underground and Kemess East. Beyond Kemess East, additional exploration potential exists along the eastern extension of the Kemess Main mineralization trend, including the
KEY and Hilda South targets. These targets exhibit geophysical signatures consistent with the main Kemess deposits, including shallow, tabular chargeability high anomalies, with
underlying chargeability lows that typically host the bulk of gold-copper mineralization.
Geochemical zonation patterns further support this prospectivity. The KEY zone represents an eastern extension of the Kemess East system. Historic drilling at Hilda South has
intersected anomalous arsenic, zinc, and lead values which mirror the geochemical signature found above the main mineralized zone at Kemess East. Step-out drilling along this
trend, extending eastward from Kemess East, would be exploration targets in the future.
Figure 1: Plan view showing the distance between Kemess Main (formerly Kemess North) and Kemess South
Figure 2: A long sectional view (looking northeast) of the Kemess Main mineralized trend. The PEA evaluates only the Kemess Main and Kemess Underground areas (outlined area),
which represent approximately 47% of the total indicated and inferred resource tonnes.
Permitting and Community Relations
Permitting for the Kemess project is well advanced, with some approvals already in place from the site’s previous operations and development plans. Amendments to existing permits
will be required to align with the updated development plan. Overall, the Project benefits from a strong permitting foundation, with a path to securing the required amendments for both
open pit and underground operations.
Centerra also benefits from established relationships with its First Nations partners through existing impact benefit and other agreements, supported by ongoing discussions
regarding the planned development strategy. These agreements provide a strong foundation for collaboration, support, and shared economic participation.
Kemess is expected to provide consistent employment to more than 700 workers and increase business opportunities for First Nations, surrounding communities, and the province,
representing a significant economic driver for northern communities in British Columbia.
Sensitivity Analysis
The PEA highlights Kemess’s strong economics, supported by an integrated development strategy and disciplined capital investment. Kemess’s after-tax NPV 5% is approximately
$1.1 billion, based on long-term gold and copper price assumptions of $3,000 per ounce and $4.50 per pound, respectively. The scale of the mineral endowment included in the PEA,
with over 2.3 million ounces of contained gold and 851 million pounds of contained copper, together with the long-life production profile, provides Kemess with strong leverage to rising
metal prices, with further upside potential as ongoing exploration advances resource growth. At spot commodity prices of approximately $4,500 per ounce of gold and $6.00 per
pound of copper, the after-tax NPV5% increases to approximately $2.8 billion. The sensitivities to commodity prices and input costs are illustrated in the tables below.
Kemess PEA After-Tax NPV5% Sensitivities ($M)
-10% -5% PEA(1) 5% 10%
Gold Price 848 971 1,094 1,216 1,338
Copper Price 958 1,026 1,094 1,161 1,229
Canadian Dollar 782 946 1,094 1,226 1,346
Capital Costs 941 1,017 1,094 1,170 1,246
Operating Costs 903 999 1,094 1,188 1,283
(1) PEA economics are based on long-term commodity prices of $3,000/oz gold and $4.50/lb copper. USD/CAD exchange rate assumptions are $1.38:1.
Kemess PEA After-Tax NPV5% Sensitivity to Long-Term Gold Price ($M)
Gold Price ($/oz)
$2,000 $2,500 $3,000(1)
(PEA) $4,000 $5,000
NPV5% 262 683 1,094 1,905 2,712
(1) PEA economics are based on long-term commodity prices of $3,000/oz gold and $4.50/lb copper. USD/CAD exchange rate assumptions are $1.38:1.
Kemess PEA After-Tax NPV5% Sensitivity to Long-Term Copper Price ($M)
Copper Price ($/lb)
$3.50 $4.00 $4.50(1)
(PEA) $5.50 $6.50
NPV5% 792 943 1,094 1,394 1,692
(1) PEA economics are based on long-term commodity prices of $3,000/oz gold and $4.50/lb copper. USD/CAD exchange rate assumptions are $1.38:1.
Kemess PEA LOM Summary
LOM
Total 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Assumptions
Gold price
($/oz) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Copper price
($/lb) 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50
Silver price
($/oz) 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50
USD to CAD
Exchange rate 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38
Mine
Production
Ore mined (Mt) 255 - - - 3 14 18 18 18 18 18 18 18 18 18 18 18 18 17 2
Waste mined
(Mt) 170 - 18 18 14 7 12 16 15 14 9 13 13 8 7 3 3 1 1 0
Total
material
mined (Mt) 425 - 18 18 18 21 30 35 33 32 27 31 31 26 25 21 21 19 18 2
Rehandle
material moved
(Mt) 2 - - - - 2 - - - - - - - - - - - - - -
Total
material
moved (Mt) 427 - 18 18 18 23 30 35 33 32 27 31 31 26 25 21 21 19 18 2
Open Pit Strip
ratio
(Waste:Ore) 0.8 4.0 0.4 0.7 1.0 1.0 0.9 0.6 0.8 0.8 0.5 0.5 0.2 0.2 0.1 0.0 0.0
Processing
Ore processed
(Mt) 255 - - - 1 16 18 18 18 18 18 18 18 18 18 18 18 18 17 2
Gold feed
grade (g/t) 0.39 - - - 0.26 0.32 0.35 0.39 0.42 0.39 0.40 0.37 0.39 0.38 0.37 0.39 0.41 0.41 0.44 0.44
Copper feed
grade (%) 0.18% - - - 0.10% 0.17% 0.18% 0.16% 0.19% 0.18% 0.18% 0.17% 0.18% 0.16% 0.17% 0.19% 0.19% 0.20% 0.22% 0.24%
Gold recovery
(%) 74.5% - - - 53.3% 53.3% 69.6% 73.8% 75.9% 75.9% 77.0% 76.7% 78.0% 77.5% 77.6% 77.0% 77.6% 76.6% 75.3% 74.3%
Copper
recovery (%) 88.2% - - - 81.4% 81.4% 83.3% 86.2% 87.1% 87.3% 88.8% 89.5% 90.3% 90.0% 90.4% 90.1% 90.2% 90.0% 89.5% 89.3%
Gold recovered
(kozs) 2,376 - - - 6 88 142 168 189 172 180 165 178 171 168 177 185 186 182 18
Copper
recovered
(Mlbs) 898 - - - 3 48 61 56 66 64 65 59 66 59 61 68 69 71 75 8
Dry
concentrate
produced
(kdmt) 1,939 - - - 6 105 131 121 143 138 140 128 142 128 131 148 149 153 161 17
Gold payable
produced
(kozs) 2,323 - - - 6 86 139 166 185 168 176 162 175 167 165 174 181 182 179 14
Copper
payable
produced
(Mlbs) 851 - - - 2 46 57 53 63 60 61 56 62 56 57 65 65 67 71 7
Metal Sales
Gold ounces
sold (kozs) 2,323 - - - 6 86 139 166 185 168 176 162 175 167 165 174 181 182 179 14 - -
Copper pounds
sold (Mlbs) 851 - - - 2 46 57 53 63 60 61 56 62 56 57 65 65 67 71 7 - -
Revenue
Gold sales
($M) 6,970 - - - 18 257 418 497 554 504 528 485 524 501 494 521 544 547 536 42 - -
Copper sales
($M) 3,829 - - - 11 206 258 239 283 272 276 253 280 253 258 292 293 303 318 33 - -
Silver revenue
(1) ($M) 13 - - - 0 - - 1 1 1 1 1 1 1 1 1 1 1 1 0 - -
Smelting and
refining costs
($M) (131) - - - (0) (5) (6) (7) (8) (8) (9) (8) (10) (9) (10) (11) (12) (13) (14) (1) - -
Total revenue
($M) 10,681 - - - 29 459 670 729 830 768 797 731 795 747 743 802 826 839 841 74 - -
Silver stream
upfront
payments ($M) 45 10 10 13 13 - - - - - - - - - - - - - - - - -
Total inflows
($M) 10,726 10 10 13 41 459 670 729 830 768 797 731 795 747 743 802 826 839 841 74 - -
Unit Costs(2)
Gold
production
costs ($/oz) 1401 - - - 2,995 1,270 1,504 1,620 1,432 1,515 1,403 1,553 1,424 1,438 1,438 1,320 1,296 1,250 1,129 1,061 - -
AISC on a by-
product
basisNG ($/oz) 971 - - - 4,285 1,606 1,589 1,741 1,428 1,189 900 1,066 836 895 877 610 601 492 205 43
Outflows
Operating
costs ($M) (4,985) (0) (0) (0) (29) (195) (336) (394) (396) (388) (373) (378) (377) (358) (357) (353) (357) (350) (317) (26) - -
Selling and
marketing
costs (3) ($M) (98) - - - (0) (5) (7) (6) (7) (7) (7) (6) (7) (6) (7) (7) (7) (8) (8) (1) - -
Initial non-
sustaining
capital
expendituresNG
($M) (771) (151) (271) (292) (58) - - - - - - - - - - - - - - - - -
Expansionary
non-sustaining
capital
expendituresNG
($M) (277) - - - (91) (186) (1) - - - - - - - - - - - - - - -
Sustaining
capital
expendituresNG
($M) (595) - - - - (109) (93) (78) (89) (17) (41) (27) (26) (24) (24) (19) (20) (17) (10) (1) - -
Lease
payments ($M) (269) - - (25) (21) (28) (35) (41) (44) (48) (3) (3) (3) (3) (3) (3) (3) (3) (3) - - -
Reclamation
expenditures
($M) (100) - - - - - - - - - - - - - - - - - - (36) (36) (27)
Cash taxes
($M) (1,302) - - - - (5) (7) (7) (68) (69) (86) (72) (100) (118) (121) (146) (155) (164) (179) (6) - -
Total
outflows ($M) (8,397) (151) (271) (317) (199) (529) (478) (525) (605) (529) (510) (487) (514) (509) (510) (529) (542) (541) (517) (70) (36) (27)
Net cash flow
($M) 2,329 (141) (261) (304) (157) (70) 191 204 225 239 287 244 281 238 233 273 284 298 325 4 (36) (27)
NPV @ 5%(4)
($M) 1,094
(1) Silver revenues include impact from the Kemess stream arrangement with Triple Flag Precious Metals Corp. (“Triple Flag”).
(2) Unit cost LOM average. Open pit mining costs refer to open pit unit cost per tonne mined. Underground mining costs refer to underground unit cost per tonne mined. Milling and
G&A costs refer to respective unit cost per tonne of ore milled.
(3) Selling and marketing costs include ocean freight.
(4) NPV @ 5% includes a $69 million incremental closure benefit.
“Mt” refers to millions of tonnes; “koz” to thousands of ounces; “Mlb” to millions of pounds; and “kdmt” to thousands of dry metric tonnes. NOTE: Totals may not add due to rounding.
Project Assumptions
The economic analysis of the Project was performed using the following assumptions and basis:
1. Economic assessment of the project uses a discounted cash flow approach. Cash flows are estimated to occur at the mid-year of each period. NPV is calculated by
discounting LOM cash flows from January 1, 2028 to the end of mine life, using 5% discount rate.
2. Economics include the time value of money benefit of pushing out $69 million of care and maintenance and closure costs to the end of the LOM.
3. Project economics are based on long-term commodity prices of $3,000/oz gold and $4.50/lb copper. USD/CAD exchange rate assumption is $1.38:1.
4. All costs presented are in constant US dollars as of January 1, 2026 with no price inflation or escalation factors applied.
5. The silver produced from Kemess is subject to a stream arrangement with Triple Flag. Under the terms of the arrangement, Triple Flag will contribute $45 million as advance
payments at certain milestones following a construction decision and will receive 100% of the silver production from Kemess. Triple Flag will make ongoing payments of 10%
of the then current market price for each ounce of silver delivered. The impact of the stream arrangement is fully incorporated into the project economics.
6. No salvage values are assumed for the capital equipment at the end of mine life.
7. Reclamation and closure costs for the site were estimated at approximately C$247 million, undiscounted (C$138 million discounted from start of closure in 2046).
Centerra Gold Updated Kemess Resource Summary (1,4,5) as of December 31, 2025
(see additional footnotes below)
Indicated Mineral Resources (2)
Tonnes (kt) Gold Grade (g/t)
Contained Gold
(koz) Copper Grade (%)
Contained Copper
(Mlbs) Silver Grade (g/t)
Contained Silver
(koz)
Open Pit - Main Zone 170,513 0.30 1,668 0.15 575 1.12 6,155
Open Pit - Kemess South 13,204 0.37 158 0.13 38 0.68 289
Underground - Kemess UG 33,223 0.82 877 0.36 265 2.48 2,652
Underground - Kemess East 27,491 0.64 565 0.44 268 1.91 1,684
Total Indicated 244,431 0.42 3,269 0.21 1,146 1.37 10,780
Inferred Mineral Resources (3)
Tonnes (kt) Gold Grade (g/t)
Contained Gold
(koz) Copper Grade (%)
Contained Copper
(Mlbs) Silver Grade (g/t)
Contained Silver
(koz)
Open Pit - Main Zone 237,050 0.30 2,299 0.13 682 1.06 8,108
Open Pit - Kemess South 198 0.34 2 0.08 0 0.42 3
Underground - Kemess UG 20,094 0.74 481 0.33 148 2.22 1,433
Underground - Kemess East 42,252 0.57 772 0.42 393 1.92 2,602
Total Inferred 299,593 0.37 3,555 0.19 1,223 1.26 12,146
(1) Mineral resources are stated in accordance with CIM (2014) Definitions as incorporated by reference into NI 43-101. Mineral Resources are estimated and have an effective date of
December 31, 2025.
(2) Mineral resources do not have demonstrated economic viability.
(3) Inferred mineral resources have a lower level of confidence as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the
inferred mineral resources will ever be upgraded to a higher category.
(4) Centerra’s equity interests as of this news release are as follows: Kemess Main, Kemess South, Kemess UG, Kemess East 100%.
(5) Numbers may not add due to rounding.
Additional Resource Footnotes
• A conversion factor of 31.1035 grams per troy ounce of gold is used in the mineral reserve and resource estimates.
• The mineral resources are reported based on a gold price of $2,400 per ounce, a copper price of $4.00 per pound, a silver price of $25.00 per ounce and an exchange rate of
1USD:1.33CAD.
• The Kemess Main open pit mineral resources (including the Nugget zone) are constrained by a pit shell and are reported based on a Net Smelter Return (“NSR”) cut-off of
$12.01 per tonne (C$15.97 per tonne) that considers materials handling costs, metallurgical recoveries, concentrate grades, transportation costs, and smelter treatment
charges to determine economic viability. A dilution factor of 0% and a mining recovery of 100% is used.
• The Kemess South open pit mineral resources are constrained by a pit shell and are reported based on a NSR cut-off of $9.98 per tonne (C$13.27 per tonne) that considers
metallurgical recoveries, concentrate grades, transportation costs, and smelter treatment charges to determine economic viability. A dilution factor of 0% and a mining
recovery of 100% is used.
• The Kemess Underground mineral resource is constrained by optimized stope shapes using commercially available software. Optimized stope shapes were included where
the estimated average stope NSR exceeded a minimum stope cut-off value of $40.68 per tonne (C$54.10 per tonne), representing the estimated break-even value required to
cover mining, processing, general and administrative, and sustaining capital costs. Economic screening was performed on stope shapes to ensure reasonable prospects for
eventual economic extraction. Dilution was estimated using equivalent linear overbreak sloughing (“ELOS”) for each slope type and ore-waste contacts, which vary between
zero and 1.25 metres. Mining recovery of 93% was applied to all stopes.
• The Kemess East underground mineral resource is constrained by optimized stope shapes using commercially available software. Optimized stope shapes were included
where the estimated average stope NSR exceeded a minimum stope cut-off value of $40.68 per tonne (C$54.10 per tonne), representing the estimated break-even value
required to cover mining, processing, G&A, and sustaining capital costs. Economic screening was performed on stope shapes to ensure reasonable prospects for eventual
economic extraction. Dilution was estimated using ELOS for each slope type and ore-waste contacts, which vary between zero and 1.25 metres. Mining recovery of 93% was
applied to all stopes.
• The Kemess Main open pit shell was restricted to a minimum floor elevation of 1,355 metres above sea level (“masl”) and the Kemess Underground optimized stope shapes
were restricted to a maximum elevation of 1,355 masl, to represent the conceptual transition between open pit and underground mining zones for resource estimation
purposes.
• A portion of the mineral resource estimate is included in the economic analysis for the PEA, which is limited to the Kemess Main open pit and Kemess Underground zones.
This is a conservative subset that reflects mining, processing and economic assumptions. It is important to note that the PEA mining inventory is not a mineral reserve and
does not demonstrate economic viability. The subset of the mineral resource used in the PEA was based on a gold price of $2,000 per ounce, a copper price of $3.75 per
pound, a silver price of $22.50 per ounce and an exchange rate of 1USD:1.33CAD.
Mineral reserve and mineral resource estimates are forward-looking information and are based on key assumptions and are subject to material risk factors. If any event arising from
these risks occurs, the Company’s business, prospects, financial condition, results of operations or cash flows, and the market price of Centerra’s shares could be adversely
affected. Additional risks and uncertainties not currently known to the Company, or that are currently deemed immaterial, may also materially and adversely affect the Company’s
business operations, prospects, financial condition, results of operations or cash flows, and the market price of Centerra’s shares. See the section entitled “Risk That Can Affect
Centerra’s Business” in the Company’s Management’s Discussion and Analysis (MD&A) for the three months ended September 30, 2025, available on SEDAR+ at
www.sedarplus.ca and EDGAR at www.sec.gov/edgar and see also the discussion below under the heading “Cautionary Statement on Forward-Looking Information”.
NI 43-101 Technical Report
A technical report on Kemess will be prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and will be filed within 45
days of this news release on SEDAR+ at www.sedarplus.ca and EDGAR www.sec.gov/edgar.
About Centerra Gold
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Türkiye, and
other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. The Company also owns the Kemess
Project in British Columbia, Canada, the Goldfield Project in Nevada, United States, and owns and operates the Molybdenum Business Unit in the United States and Canada.
Centerra’s shares trade on the Toronto Stock Exchange (“TSX”) under the symbol CG and on the New York Stock Exchange (“NYSE”) under the symbol CGAU. The Company is
based in Toronto, Ontario, Canada.
For more information:
Lisa Wilkinson
Vice President, Investor Relations & Corporate Communications
(416) 204-3780
Additional information on Centerra is available on the Company’s website at www.centerragold.com, on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact contained or incorporated by reference in this news release, which address events, results, outcomes or developments that
the Company expects to occur are, or may be deemed to be, forward looking information or forward-looking statements within the meaning of certain securities laws, including the
provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on
expectations, estimates and projections as of the date of this news release. Such forward-looking information involves risks, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements are generally,
but not always, identified by the use of forward-looking terminology such as “assume”, “believes”, “continue”, “encouraged”, “estimate”, “expect”, “future”, “ongoing”, “plan”, “potential”,
“project”, “target”, “update” or “upside”, or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may”, “could”, “would” or
“will” be taken, occur or be achieved or the negative connotation of such terms. Such statements include but may not be limited to: the estimation of mineral resources, including
inferred mineral resources, at Kemess and the potential of eventual economic extraction of minerals from the project; the identification of future mineral resources at the project; the
Company’s ability to convert existing mineral resources into categories of mineral resources or mineral reserves of increased geological confidence; life of mine estimates; future
exploration potential; timing and scope of future exploration (brownfields or greenfields); the project design, including the location of infrastructure and the proposed open pit and
underground mine plans; the project development timeline to production including future phases of the project and development and construction of and production at the project,
including the possibility of constructing either or both of an open pit and underground mines; the timing of and future prospects for exploration and any expansion of the project,
including upside associated with the project’s land package; the future success of Kemess including results of the preliminary economic assessment and accompanying mining
methods including the possibility of constructing either or both of an open pit and underground mines; the potential for expanding the mineral resources; the potential for identifying
additional mineralization in areas of intercepts and conceptual areas for extension and expansion; any potential synergies between the Kemess project and satellite deposits, if any;
the ability of the existing infrastructure at Kemess to lower execution risk for the project and the possibility that any additional infrastructure will complement it; and the expectation
that a leach plant will increase gold recovery.
The Company cautions that forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company at the
time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies, which may
prove to be incorrect, include but are not limited to: there being no significant disruptions affecting the activities of the Company whether due to extreme weather events and other or
related natural disasters, labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting and development of the project being consistent
with the Company’s expectations; political and legal developments in British Columbia and Canada being consistent with its current expectations; the accuracy of the current mineral
resource estimates of the Company; certain price assumptions for gold and copper and foreign exchange rates; the Company’s future relationship with Indigenous groups being
consistent with the Company’s expectations; and inflation and prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with anticipated
levels. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on
such statements and information.
Market price fluctuations in gold, copper, and other metals, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower
grades of mineralization uneconomic and may ultimately result in a restatement of mineral reserves. The extent to which mineral resources may ultimately be reclassified as proven
or probable mineral reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors, which may change over time, always influence
the evaluation of mineral reserves or mineral resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no
assurances that any mineral resource estimate will ultimately be reclassified as proven and probable mineral reserves.
Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Indicated mineral
resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in
assessing the economic viability of the resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow
technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be
categorized as mineral reserves. There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration.
Centerra’s mineral reserve and mineral resource figures are estimates, and Centerra can provide no assurances that the indicated levels of gold or copper will be produced, or that
Centerra will receive the metal prices assumed in determining its mineral reserves. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of
drilling results, and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Centerra believes that these
mineral reserve and mineral resource estimates are well established, and the best estimates of Centerra’s management, by their nature mineral reserve and mineral resource
estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences, which may ultimately prove unreliable. If Centerra’s mineral
reserve or mineral reserve estimates for its properties are inaccurate or are reduced in the future, this could have an adverse impact on Centerra’s future cash flows, earnings,
results, or operations and financial condition