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Centerra Gold Provides Operations Update

Mine Development & Operations

1 University Avenue, Suite 1500 1

Toronto, ON

M5J 2P1

tel. 416-204-1953

fax 416-204-1954

www.centerragold.com

NEWS RELEASE

Centerra Gold Provides Operations Update

Toronto, Canada, December 27, 2017: Centerra Gold Inc. (TSX: CG) today reported that, due to a lack of

sufficient water resources, mill processing operations at the Mount Milligan mine in British Columbia,

Canada have been temporarily suspended. Mill processing operations are expected to recommence at partial

capacity by the end of January 2018 and at full capacity after the spring melt.

As disclosed in the Company’s news release of Octobe r 31, 2017, Mount Milligan experienced a drier than

normal spring and summer during 2017 with a limited amount of spring snow melt. This resulted in lower

than expected reclaim water volumes in the tailings storage Facility (TSF) at Mount Milligan which is used

for mill processing operations. The water shortage has been exacerbated by unanticipated extremely cold

temperatures at Mount Milligan, which has resulted in a greater than expected loss of water volumes in the

TSF due to ice formation.

In the fourth quarter of 2017, the Company sought to mitigate the water shortfall by drilling additional water

wells to draw water from nearby aquifers located on the property. While such wells were partially

successful, the additional water obtained was not sufficient to offset the loss of water volumes noted above.

In addition, as a further, longer-term mitigation measur e, the Company is pursuing an amendment to Mount

Milligan’s Environmental Assessment (EA) to allow pumping of water from a nearby lake (Phillips Lake)

and is applying for the additional related permits.

It is expected that by the end of January 2018 there will be adequate fresh water available to restart mill

processing operations utilizing just one of the ball mills (38,000 tpd to minimize water requirements). The

Company expects that additional fresh water will become available after the spring melt, typically in April,

at which time it expects to re-start the second ball mi ll returning mill processing operations to full capacity.

However, as noted, above, the availability of water is subject to, among other things, natural forces that can

be unpredictable.

During this downtime, mill maintenance crews will continue to carry out outstanding preventative

maintenance activities and will look to bring forward othe r maintenance work that had been planned for later

in the year. The Mount Milligan mine continues to opera te according to its mine plan and will continue to

expose, mine and stockpile additional ores for future processing.

Year-to-date the Mount Milligan mine has produced approximately 225,000 ou nces of payable gold and

approximately 54 million pounds of payable copper. 2017 gold production at the Kumtor mine, located in

the Kyrgyz Republic, has continued to be strong and the mine is expected to finish the year with production

of approximately 560,000 ounces of gold.

Additionally, the Kumtor mine has received its ma ximum allowable emissions permit (“MAE”) and its

maximum allowable discharge permit (“MAD”) from the Kyrgyz Republic State Agency for Environmental

Protection and Forestry (“SAEPF”) for the full calendar year of 2018. With the MAE and MAD permits in

place, Kumtor now has all the necessary permits and approvals to operate throughout 2018.

1 University Avenue, Suite 1500 2

Toronto, ON

M5J 2P1

tel. 416-204-1953

fax 416-204-1954

www.centerragold.com

The Company expects to issue its 2018 full year pr oduction guidance in mid-January 2018 and will be

providing additional information rega rding Mount Milligan as it becomes available, including updates on

and additional steps to mitigate Mount Milligan’s water shortfall.

Caution Regarding Forward-Looking Information

Information contained in this document which are not statements of historical facts, and the documents

incorporated by reference herein, may be “forward -looking information” for the purposes of Canadian

securities laws. Such forward-looking information invol ves risks, uncertainties and other factors that could

cause actual results, performance, prospects and opportuni ties 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 timing and outcome of the amendment to Mount Milligan’s EA to allow pumping from a nearby

lake to access additional fresh water and that adequa te fresh water becomes available in sufficient quantities

to restart mill processing operations.

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, economic and

competitive uncertainties and contingencies. Know n and unknown factors could cause actual results to

differ materially from those projected in the forward looking information. Factors that could cause actual

results or events to differ materially from current expectations include, among other things: Aboriginal

claims and consultative issues relating to Mount Milligan’s permitting and regulatory matters, risks related to

operational matters and the Company’s ability to successf ully manage such matters, including the ability of

the Company to successfully manage water issues, mechanical breakdowns and maintenance at Mount

Milligan; the availability of water resources at Mount Milligan and the Company’s expectations regarding

the effects and timing of weather and spring melt at M ount Milligan; the Company’s expectations regarding

the results of drilling to access water from aquifers near Mount Milligan; and the Company’s expectations

regarding the approval of the amendment to Mount Millig an’s EA. See section titled “Risks that can affect

our business” in the 2016 Annual Information Form available on SEDAR at www.sedar.com.

There can be no assurances that forward-looking informa tion 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 r esults, 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 relian ce on forward looking information. Forward-looking

information is as of December 27, 2017. Centerra assu mes 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.

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. Centerra operates two

flagship assets, the Kumtor Mine in the Kyrgyz Repu blic and the Mount Milligan Mine in British Columbia,

Canada and is the largest Western-based gold producer in Central Asia. Centerra's shares trade on the

Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in Toronto, Ontario, Canada.

Additional information on Centerra is available on the Company’s website at www.centerragold.com and at

SEDAR at www.sedar.com.

1 University Avenue, Suite 1500 3

Toronto, ON

M5J 2P1

tel. 416-204-1953

fax 416-204-1954

www.centerragold.com

For more information:

John W. Pearson

Vice President, Investor Relations

Centerra Gold Inc.

(416) 204-1953

[email protected]

Additional information on Centerra is available on the Company’s web site at www.centerragold.com

and at SEDAR at www.sedar.com.

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