Centerra Gold Brings Additional Claims in Arbitration Against the Kyrgyz Republic and Names Kyrgyzaltyn JSC as a Co-Respondent over Seizure of the Kumtor Mine
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Toronto, ON
M5J 2P1
tel 416-204-1953
fax 416-204-1954
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NEWS RELEASE
Centerra Gold Brings Additional Claims in Arbitration Against the Kyrgyz Republic and
Names Kyrgyzaltyn JSC as a Co-Respondent over Seizure of the Kumtor Mine
Toronto, Canada, July 7, 2021: Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG)
(NYSE: CGAU) announced today that it has brought additional claims against the government of
the Kyrgyz Republic in binding arbitration and asserted claims against the state-owned entity
Kyrgyzaltyn JSC in response to the wrongful expropriation of the Kumtor Mine.
Among other relief, the Company’s amended Notice of Arbitration seeks to hold the Kyrgyz
government and Kyrgyzaltyn JSC responsible for any and all losses and damages that result from
their coordinated campaign to seize the gold mine in violation of longstanding investment
agreements and without compensation to Centerra.
The amended notice adds claims against Kyrgyzaltyn JSC, the gold refining monopoly in the
Kyrgyz Republic and Centerra’s largest shareholder. It asserts that Kyrgyzaltyn JSC conspired
with the Kyrgyz government to take control of the mine under the guise of temporary “external
management” and continues to act at the behest of the government with regard to the operation
of Kumtor and its shareholding in Centerra.
Scott Perry, President & Chief Executive Officer of Centerra, said: “Rather than honor its
commitment to arbitrate any disputes in a transparent manner in a neutral forum, the government
and those acting in concert with it have proceeded to expropriate the Kumtor Mine, placing
Centerra’s investment and the livelihoods of thousands of Kyrgyz workers at risk. Centerra
would much prefer to resolve this dispute in a constructive dialogue with the Kyrgyz authorities,
but their repeated refusal to engage leaves us no choice but to seek effective remedies through
arbitration and other legal means.”
As disclosed on May 16, 2021, Centerra initiated binding arbitration against the Kyrgyz
government in response to actions taken against the Company’s wholly owned subsidiary
Kumtor Gold Company (“KGC”), including meritless fines and tax claims as well as legislation
providing for its operations to be placed under “external management.” The amended notice
asserts additional claims arising from the seizure of the mine and seeks to enjoin the respondents
from any further actions to nationalize the mine or transfer KGC’s assets.
Under applicable investment agreements, Centerra’s claims will be adjudicated by a single
arbitrator in arbitration proceedings to be held in Stockholm, Sweden and conducted under the
rules of the United Nations Commission on International Trade Law (“UNCITRAL”). Under the
1 University Avenue, Suite 1500
Toronto, ON
M5J 2P1
tel 416-204-1953
fax 416-204-1954
www.centerragold.com
2
agreements, the governing law is the law of the State of New York. Centerra has requested that
the Permanent Court of Arbitration in the Hague designate an appointing authority to select an
arbitrator promptly.
About Centerra
Centerra Gold Inc. is a Canadian -based gold mining company focused on operating, developing,
exploring and acquiring gold properties in North America, Asia and other markets worldwide and
is one of the largest Western-based gold producers in Central Asia. Centerra owns three mines, the
Kumtor Mine in the Kyrgyz Republic, the Mount Milligan Mine in British Columbia, Canada and
the Öksüt Mine in Turkey. 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.
Caution Regarding Forward-Looking Information
Information contained in this document which are not statements of historical facts may be
“forward-looking information” for the purposes of Canadian securities laws and within the
meaning of the United States Private Securities Litigation Reform Act of 19 95. 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. The words “believe”, “expect”, “anticipate”, “contemplate”,
“plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule”, “understand”
and similar expressions identify forward-looking information. These forward-looking statements
relate to, among other things: the claims brought and relief sought by the Company against the
Kyrgyz Republic and Kyrgyzaltyn JSC in binding arbitration, and the potential success thereof;
the ability of Centerra to appoint an arbitrator promptly; the court proceedin gs brought by the
Company against Mr. Bolturuk to obtain injunctive relief; future discussions with the Government
of the Kyrgyz Republic relating to disputes that have arisen under the investment agreement; and
the Company’s ability to obtain effective remedies through arbitration and other legal means.
Forward-looking information is necessarily based upon a number of estimates and assumptions
that, while considered reasonable by Centerra, are inherently subject to significant political,
business, technic al, economic and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially from those projected in the
forward-looking information. Factors and assumptions that could cause actual results or even ts
to differ materially from current expectations include, among other things: the continued
imposition by the Kyrgyz Government of “external management” on KGC or the prolongation of
such “external management” the ongoing failure of the Kyrgyz Republic Go vernment to comply
with its continuing obligations under the investment agreements governing the Kumtor Mine to
allow for the continued operation of the Kumtor mine by KGC and Kumtor Operating Company
(“KOC”) and not take any expropriation action against t he Kumtor mine; actions by the Kyrgyz
Republic Government or any state agency or the General Prosecutor’s Office that serve to restrict
or otherwise interfere with the payment of funds by KGC and KOC to Centerra; the Kyrgyz
Government taking further steps to nationalize or expropriate the Kumtor mine, and/or utilizing
the purported environmental and tax claims being asserted against KGC to strip KGC of its assets;
the impact of changes in, or to the more aggressive enforcement of, laws, regulations and
1 University Avenue, Suite 1500
Toronto, ON
M5J 2P1
tel 416-204-1953
fax 416-204-1954
www.centerragold.com
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government practices, including unjustified civil or criminal action against the Company, its
affiliates or its current or former employees, including the interaction of claims of harm to the
environment or human health with the new Kyrgyz Republic law that en abled the imposition of
external management on the Kumtor Mine by the Kyrgyz Republic Government; potential impact
on the Kumtor mine of investigations by Kyrgyz Republic instrumentalities; the inability of the
Company and its subsidiaries to enforce their legal rights in certain circumstances or to collect
on any favorable arbitral and/or court judgement awarded against the Kyrgyz Republic,
Kyrgyzaltyn JSC and/or Mr. Bolturuk, as applicable; other political risks associated with the
Company’s operations in the Kyrgyz Republic; the presence of a significant shareholder that is a
state-owned company of the Kyrgyz Republic; and the management of external stakeholder
expectations in respect of the foregoing risk factors. For additional risk factors, please see section
titled “Risks Factors” in the Company’s most recently filed Annual Information Form available
on SEDAR at www.sedar.com and EDGAR www.sec.gov/edgar.
There can be no assurances that forward -looking information and statements will prove to be
accurate, as many factors and future events, both known and unknown could cause actual results,
performance or achievements to vary or differ materially from the results, performance or
achievements that are or may be expressed or implied by such forward -looking statements
contained herein or incorporated by reference. Accordingly, all such factors should be considered
carefully when making decisions with respect to Centerra, and prospective investors should not
place undue reliance on forward looking informa tion. Forward-looking information is as of July
7, 2021. Centerra assumes no obligation to update or revise forward-looking information to reflect
changes in assumptions, changes in circumstances or any other events affecting such forward -
looking information, except as required by applicable law.
For more information:
John W. Pearson
Vice President, Investor Relations
(416) 204-1953
Additional information on Centerra is available on the Company’s web site at
www.centerragold.com on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.
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