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Centerra Gold Provides Update on Strategic Agreement with the Kyrgyz Republic

Corporate Updates

1 University Avenue, Suite 1500

Toronto, ON

M5J 2P1

tel 416-204-1953

fax 416-204-1954

www.centerragold.com

NEWS RELEASE

Centerra Gold Provides Update on

Strategic Agreement with the Kyrgyz Republic

TORONTO, CANADA – April 20, 2018 – Centerra Gold Inc. (TSX: CG) announced today that it has agreed

with the Government of the Kyrgyz Republic to extend the First Longstop Date under the Strategic Agreement

for Environmental Protection and Investment Promotion previously entered into with the Government of the

Kyrgyz Republic on September 11, 2017. The First Longstop Date is the date by which all conditions precedent

to the completion of the Strategic Agreement are required to be satisfied and it has been extended by agreement

of the parties from April 20, 2018 to May 31, 2018.

The Company notes that the government of Prime Minister Sapar Isakov was dismissed by the President of the

Kyrgyz Republic yesterday following a vote of no confidence in the Kyrgyz Republic Parliament. We

understand that Parliament is in the process of appointing a new government and that Mr. Isakov and other

government officials will continue in their roles until a new government is formed.

Centerra expects to continue to work with the Government of the Kyrgyz Republic to ensure the satisfaction of

the remaining conditions precedent to completion of the Strategic Agreement, including the termination of

certain legal proceedings and the granting of land use permits. The Company notes that many of the conditions

precedent have already been satisfied, including the granting of various permits and approvals for the Kumtor

Mine. In addition, the Government of the Kyrgyz Republic has terminated all of the environmental claims

previously brought by the Kyrgyz Republic State Inspectorate Office for Environmental and Technical Safety

(SIETS).

While the Strategic Agreement provides a pathway for the resolution of all outstanding matters affecting the

Kumtor Project, there are no assurances that all of the conditions precedent to the completion of the settlement

contained in the Strategic Agreement will be satisfied. The inability to successfully resolve all such matters,

whether through the Strategic Agreement or otherwise could have a material adverse impact on the Company’s

future cash flows, earnings, results of operations and financial condition.

Cautionary Note Regarding Forward-looking Information

Information contained in this news release which is not a statement of historical fact may be “forward-looking

information” for the purposes of Canadian securities laws. Such forward-looking information involves

assumptions, 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 Company’s expectations regarding its future

discussions with the Government of the Kyrgyz Republic to satisfy the remaining conditions precedent, and

reach completion of, the Strategic Agreement.

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

1 University Avenue, Suite 1500

Toronto, ON

M5J 2P1

tel 416-204-1953

fax 416-204-1954

www.centerragold.com

2

competitive uncertainties and contingencies. Known 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: risks that any of the conditions

precedent to the Strategic Agreement will not be satisfied in a timely manner or at all, particularly as the

Government may not bind the General Prosecutor’s Office or the Parliament of the Kyrgyz Republic; a decision

by the General Prosecutor’s Office, or its successor the Anti-Corruption Service of the State Committee for

National Security, to re-open at any time civil or criminal proceedings against Centerra, its subsidiaries or other

stakeholders; the failure of the Government to comply with its continuing obligations under the Strategic

Agreement, including the requirement that it comply at all times with its obligations under the 2009 Kumtor

Project Agreements, allow for the continued operation of the Kumtor Mine by Kumtor Gold Company (KGC)

and Kumtor Operating Company (KOC) and not take any expropriatory action; actions by the 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. See section titled “Risks that can affect our business” in the Company’s

most recently filed Annual Information Form available on SEDAR at www.sedar.com.

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 Republic 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.

For more information:

John W. Pearson

Vice President, Investor Relations

(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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