CG.TO · 2010-04-28

Centerra Gold Reports First Quarter Earnings of $0.52 per share (This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 13 and in our Cautionary Note Regarding Forward-looking Information on page 15. All

Production Results Financials

NEWS RELEASE

Centerra Gold Reports First Quarter Earnings of $0.52 per share

(This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 13 and in our Cautionary Note Regarding Forward-looking Information on page 15. All figures are in United States dollars.)

Toronto, Canada, April 28, 2010: Centerra Gold Inc. (TSX: CG) today reported net earnings of $122.1 million or $0.52 per share on revenues of $255.5 million compared to a net loss of $20.3 million or $0.09 per common share based on revenues of $98.4 million in the same quarter last year.

Consolidated gold production for the first quarter of 2010 totaled 211,039 ounces at a total cash cost of $340 per ounce produced compared to 103,204 ounces at a total cash cost of $871 per ounce produced in the corresponding quarter of 2009. The significant increase in gold production in the first quarter of 2010 is a result of the mining and processing of higher grade material and achieving higher recoveries at the Kumtor mine. Cash provided by operations, net of working capital changes was $82.4 million compared to $10.8 million in the first quarter of 2009. (Total cash cost is a non- GAAP measure and is discussed under “Non-GAAP Measures” in the Management’s Discussion and Analysis issued in conjunction with this news release.)

The recent civil and political unrest in the Kyrgyz Republic has not caused any interruption in production at the Kumtor mine.

First Quarter Highlights

� Consolidated gold production of 211,039 ounces at a total cash cost of $340 per ounce � Cash provided by operations of $82.4 million � Cash and short-term investments increased to $384.2 million; no debt � Consolidated gold production guidance for 2010 remains unchanged � Exploration at Gatsuurt identifies new oxide gold mineralization

Commentary

“While we are pleased with the results of the first quarter, I would like to express our condolences to all those who lost family members or who were injured during the events of recent weeks in the Kyrgyz Republic,” said Steve Lang, President and CEO of Centerra Gold. “Centerra is committed to work with the government of the Kyrgyz Republic and has offered to provide humanitarian aid and support,” he concluded.

1 University Avenue, Suite 1500 Toronto, ON M5J 2P1 tel 416-204-1953 fax 416-204-1954 www.centerragold.com

Financial and Operating Summary

Revenues for the first quarter of 2010 were $255.5 million compared to $98.4 million during the same period one year ago. First quarter 2010 revenue reflects a 114% increase in ounces sold and a 22% increase in realized gold price ($1,112 per ounce in the first quarter of 2010 versus $915 per ounce in the first quarter of 2009) in the period. The increase in ounces sold reflects the higher production available for sale in the 2010 quarter and the destocking from the inventory built-up at the end of 2009.

Gold production for the first quarter was 211,039 ounces compared to 103,204 ounces reported in the first quarter of 2009. Gold production at Kumtor was significantly higher for the period which more than offset lower production at Boroo. At Kumtor, production was higher than anticipated due to the processing of higher grade stockpiles established in the fourth quarter of 2009 and extracting more ore than expected from the benches mined in the first quarter of 2010. Production at Boroo was lower in the first quarter 2010 mainly due to the heap leach operation remaining idle during the quarter.

Centerra’s total cash cost per ounce of gold produced was $340 in the first quarter compared to $871 in the first quarter of 2009. The year-over-year decrease in unit cash costs was primarily due to the increased production at Kumtor and lower operating costs at both sites (see “Operations Update”). (Total cash cost is a non-GAAP measure and is discussed under “Non-GAAP Measures” in the Management’s Discussion and Analysis for the three months ended March 31, 2010, issued in conjunction with this news release.)

Cash provided by operations was $82.4 million for the first quarter of 2010 compared to $10.8 million for the prior year first quarter. The increase reflects increased earnings as a result of higher gold volumes and prices and lower operating costs, partially offset by the negative impact of higher working capital levels in 2010.

Capital expenditures spent and accrued in the first quarter of 2010 amounted to $29.2 million of which $6.8 million was spent on sustaining capital projects. Growth capital totaled $22.4 million which related mainly to the SB Zone underground development at Kumtor ($8.9 million), the purchase of haul trucks at Kumtor ($7.7 million) and spending on development of the Gatsuurt project ($5.5 million).

Exploration expenditures for the first quarter were $5.1 million dollars compared to $5.6 million in the first quarter of 2009 reflecting lower drilling activity at Kumtor.

Centerra’s cash and cash equivalents and short-term investments at the end of March 2010 increased to $384.2 million, compared to cash and short-term investments of $322.9 million at December 31, 2009.

Other Corporate Developments Kyrgyz Republic

In early April 2010, civil unrest in the Kyrgyz Republic resulted in the ousting of President Kurmanbek Bakiyev and the formation of an interim government by opposition groups. Production at the Kumtor mine has not been affected by these events. However, the political situation in the Kyrgyz Republic continues to evolve and there can be no assurances that future political developments will not have an adverse impact on the Company’s assets or operations.

On April 13, 2010, Kyrgyzaltyn JSC (“Kyrgyzaltyn”), the Kyrgyz Republic state-owned shareholder of the Company and owner of the Kara-Balta refinery which purchases Kumtor’s gold doré, notified the Company that due to the civil unrest in the Kyrgyz Republic and a moratorium on certain transactions imposed by the governmental authorities, Kyrgyzaltyn had been forced to defer the sale of gold to its off-take bank. The restrictions on Kyrgyzaltyn’s sale of gold to its off-take bank have been lifted and the Company has now received full payment of the balance outstanding.

Pursuant to a restated shareholders agreement dated as of June 6, 2009 between Kyrgyzaltyn and Centerra, so long as Kyrgyzaltyn and its affiliates continue to hold 10% or more of Centerra’s outstanding shares, Centerra has agreed to include in Centerra’s proposed slate of directors to be nominated for election at each annual or special meeting at which directors are to be elected, two board nominees designated by Kyrgyzaltyn, at least one of whom must be independent of the Kyrgyz Government, within the meaning of applicable securities laws in Canada. Should Kyrgyzaltyn and its affiliates own less than 10% but more than 5% of Centerra’s outstanding shares, Centerra has agreed to include in the slate of directors one nominee of Kyrgyzaltyn who shall not be required to be independent. Kyrgyzaltyn currently owns approximately 33% of Centerra’s outstanding shares and accordingly is entitled to two board nominees to be included in Centerra’s annual general meeting of shareholders scheduled for May 19, 2010 (the “AGM”). As of the date hereof, the identity of the Kyrgyzaltyn nominees for the upcoming year has not been communicated to Centerra’s board of directors. As a result of the recent events in the Kyrgyz Republic, there may be some further delay in Kyrgyzaltyn communicating to Centerra’s board the identity of its nominees. Accordingly, the board of directors of Centerra expects to appoint two nominees of Kyrgyzaltyn to the board on or after the date of the AGM once the identities are communicated.

Mongolia

On April 23, 2010, President Elbegdorj issued an order temporarily suspending the issuance and transfer of mineral licenses. The order appears to be aimed at limiting speculation and other abuses and non-compliance by license holders. According to a statement released by the President’s office, the order will remain in effect until amendments to minerals laws are implemented to remedy such abuses. Centerra does not expect that its operations or its existing mining and exploration licenses, including the Boroo and Gatsuurt licenses, will be affected by the order.

Mongolian Regulatory Matters

On June 12, 2009, the main operating licenses at the Company’s Boroo mine were suspended by the Minerals Resources Authority of Mongolia (“MRAM”) following extensive inspections of the Boroo mine operation conducted by the Mongolian General Department of Specialized Inspection (“SSIA”). While the suspension was lifted on July 27, 2009, several issues arising from the inspection continue to be discussed by Centerra and the Mongolian regulatory authorities. On October 23, 2009, Centerra received a very significant claim for compensation from the SSIA in respect of certain mineral reserves, including state alluvial reserves covered by the Boroo mine licenses, that are recorded in the Mongolian state reserves registry, but for which there are no or incomplete records or reports of mining activity. Centerra disputes the claim. While Centerra cannot give assurances, it believes settlement will be concluded through negotiation and will not result in a material impact. In addition, the SSIA inspections raised a concern about the production and sale of gold from the Boroo heap leach facility. The heap leach facility was operated under a temporary permit from June 2008 until the expiry of the temporary permit in April 2009 and Boroo Gold Company Ltd. (“BGC”) paid all relevant royalties and taxes with respect to gold produced from the heap leach facility during that period. BGC believes that it had all necessary permits to carry out its heap leach activities and that any regulatory concerns are unfounded. BGC is continuing its effort to obtain a final permit for the operation of its heap leach facility at the Boroo mine. Centerra understands that this matter has been referred to the Mongolian Ministry of Mineral Resources and Energy for review but has received no official notice of any concern.

Under the stability agreement relating to the Boroo mine between the Company and the Government of Mongolia, signed July 6, 1998, as amended (the “Boroo Stability Agreement”), the Company is permitted to offset any value added taxes (“VAT”) that it pays against other taxes payable in respect of its Boroo mine operation. In 2009, the Mongolian Ministry of Finance indicated that, despite the Boroo Stability Agreement, Centerra would no longer be permitted to offset its VAT payments. This decision was challenged by Centerra and in November 2009, Centerra was notified by Ministry of Finance officials that VAT payments up to August 31, 2009 could be offset. Despite this, recovery of any VAT payments from September 1, 2009 onwards continues to be subject to negotiations with the Ministry of Finance.

On November 2, 2009, Centerra received a letter from the Mongolian Ministry of Finance reiterating some of the issues raised by the SSIA and indicating that the Boroo Stability Agreement would be terminated if such issues were not resolved within a period of 120 days from the date of the letter. The Company has held discussions with the Ministry of Finance regarding such concerns and has received no further notice from the Ministry of Finance with respect to the possible termination of the Boroo Stability Agreement. While the Company believes that the issues raised by the Ministry of Finance and the SSIA will be resolved through negotiations without a material impact on the Company, there can be no assurance that this will be the case.

Mongolian Legislation

In July 2009, the Mongolian Parliament enacted legislation that would prohibit mineral prospecting, exploration and mining in water basins and forest areas in the territory of Mongolia and provides for the revocation of licenses affecting such areas (the “Water and Forest Law”). The Company understands that, prior to the revocation of any licenses, the Mongolian government will undertake physical surveys and consult with local officials to determine which, if any, existing licenses will be subject to the new law. The legislation provides a specific exemption for “mineral deposits of strategic importance”, and accordingly, the main Boroo mining licenses will not be subject to the law. The Company’s Gatsuurt licenses and its other exploration license holdings in Mongolia are currently not exempt. In March 2010, the Company received a letter from MRAM stating that certain of its mining and exploration licenses, including the Gatsuurt mining licenses, could be revoked under the Water and Forest Law. The letter requested that the Company submit an estimate of expenses incurred in relation to each license and the compensation that it would expect to receive if such licenses were to be revoked. The Company has provided a detailed estimate to MRAM for all potentially affected licenses. The Company has submitted a draft Investment Agreement for the Gatsuurt Project to the Ministry of Mineral Resources and Energy (“MMRE”). In April 2010, the Company received a letter from the MMRE indicating that the Gatsuurt licenses are within the area designated on a preliminary basis where minerals mining is prohibited under the Water and Forest Law. The letter also stated that the MMRE will communicate with the Company regarding the investment agreement when the MMRE has more clarity on the impact of the law. The Company is reasonably confident that the economic and development benefits resulting from its exploration and development activities will ultimately result in the law having a limited impact on the Company’s Mongolian activities.

In August 2009, the Government of Mongolia repealed its windfall profit tax of 68% in respect of gold sales at a price in excess of US$850 an ounce, with the repeal to take effect on January 1, 2011. The windfall profit tax will be applicable to the Gatsuurt project (but not the Boroo project).

Other

On February 4, 2010, Centerra Gold (U.S.) Inc. (“Centerra U.S.”), a wholly-owned subsidiary of Centerra, signed a purchase agreement with Rye Patch Gold Corp. and its U.S. subsidiary, Rye Patch Gold US Inc. (collectively “Rye Patch”) for the sale of Centerra U.S.’s interest in the REN project in Nevada, subject to the joint venture project partner, Homestake Mining Company of California (“Homestake”), a subsidiary of Barrick Gold Corporation, waiving its pre-emptive right to acquire Centerra U.S.’s interest. On April 8, 2010, Homestake elected to exercise its pre-emptive right to acquire Centerra Gold U.S. Inc.’s 64% interest in the REN joint venture for $35.2 million. As a result of Homestake’s election to purchase the Centerra U.S. interest, Rye Patch’s agreement with Centerra will terminate. Rye Patch is entitled to receive a break fee of $0.25 million from Centerra U.S. upon completion of Homestake’s acquisition of the Centerra U.S. interest which is expected to close on or before July 7, 2010. On closing, Centerra will transfer the joint venture interest to Homestake. The Company will record a gain on sale for the value of the proceeds received, less any related expenses.

As at March 31, 2010, the net book value of REN’s property is nil (December 31, 2009- Nil) because all exploration activities on this property were expensed as incurred.

Operations Update

Kumtor

At the Kumtor mine, gold production was 180,562 ounces in the first quarter of 2010 representing a 187% increase from the same quarter in 2009. The significant increase in production in the first quarter of 2010 is the result of the continuation of mining the higher grade SB Zone in the Central Pit, processing of the high-grade stockpile established at the end of 2009 (430,000 tonnes at 4.3 g/t gold) and achieving higher recoveries. During the quarter, ore tonnage increased 164% year-overyear due to more ore being exposed in the SB Zone in the fourth quarter of 2009 and first quarter of 2010 compared to the first quarter of 2009. The mill head grade averaged 4.90 g/t with a recovery of 76.7% in the first quarter of 2010, compared to 1.92 g/t with a recovery of 70.8% in the same quarter of 2009. Due to 2009 delays in mine sequencing, some of the ore originally scheduled to be mined and stockpiled by the end of 2009 was actually mined in the first quarter of 2010 and fed directly to the mill.

During the quarter, the planned removal of ice and waste from the southeast section of the high wall in the SB Zone continued. The rate of movement of waste and ice from this area slowed during the first quarter of 2010 as a result of the offloading, as well as cold weather causing the material to freeze. The mine operations department increased its focus on mining ice and the removal of waste in the central pit using dedicated unload zones and wider benches at the top of the central pit.

Total cash cost per ounce, a non-GAAP measure of production efficiency, decreased to $305 in the first quarter of 2010 from $1,035 in the first quarter of 2009. The year-over-year decrease in unit cash costs was due to the substantially higher gold production and lower operating costs in 2010. Mining costs decreased 24% to $30.0 million in the first quarter of 2010 due to due to lower expenditures on maintenance materials and supplies, reduced costs for dewatering supplies and decreased costs for diesel fuel. Other favorable variances include decreased spending on blasting supplies, explosives and drill bits. While milling costs in 2010 increased 8% to $13.5 million due to increased consumption and costs for sodium cyanide and carbon, increased costs for electricity partially offset by price savings on grinding media. Total cash cost per ounce produced is a non- GAAP measure and is discussed under “Non-GAAP Measures”.

Exploration expenditures totaled $1.8 million for the first quarter of 2010, a decrease from the $3.3 million reported in the first quarter 2009. This is primarily a result of the decrease in the amount of drilling completed in the first quarter.

Capital expenditures in the first quarter of 2010 totalled $23.4 million compared to $21.8 million in the prior year. This consisted of $6.5 million of sustaining capital, predominantly spent on the heavy duty equipment overhaul program ($4.2 million), expansion of the waste dump ($0.8 million) and replacement of four dozers ($0.7 million). Growth capital investment totalled $16.9 million spent mainly on the purchase of CAT 789 haul trucks ($7.7 million), underground development of decline #1, SB Zone underground ($3.8 million), underground development of decline #2, Stockwork Zone ($3.9 million) and the purchase of capital equipment for decline #2 ($1.2 million).

The SB Zone underground decline (Decline #1) has advanced a total of 680 metres. During the quarter poor ground conditions were encountered slowing the decline advancement. The poor ground was primarily associated with faulting and additional work was carried out to implement the necessary ground support. The decline advancement is now back on its planned schedule. Exploration drilling is expected to commence in the second quarter and delineation drilling of the SB Zone is planned for the third and fourth quarters of 2010.

The Stockwork Zone underground decline (Decline #2) has advanced a total of 222 metres of which 195 metres were accomplished in 2010. Decline #2 will facilitate the access to the Stockwork Zone and the SB Zone for further exploration and delineation drilling of the two resources (SB Zone and Stockwork Zone) in 2010.

Boroo/Gatsuurt

At the Boroo mine, gold production was 30,477 ounces in the first quarter of 2010 compared to 40,183 ounces in the first quarter of 2009. The lower gold production is the result of lower mill head grades, 1.90 g/t in first quarter 2010 versus 2.34 g/t in the first quarter 2009 and the heap leach operation remaining idle during the first quarter 2010, pending issuance of the final operating permit by the Mongolian Government. In the comparative 2009 quarter, heap leach production was 9,292 poured ounces of gold. Recoveries improved in the quarter to 72.8% compared to 65.7% last year due to the mill feed which consisted of less refractory ore.

Heap leach operations at Boroo remain under care and maintenance. The Company continues to work with the Mongolian authorities to obtain the final heap leach operating permit.

Total cash costs per ounce produced, a non-GAAP measure of production efficiency, increased to $551 in the first quarter of 2010 from $479 in the first quarter of 2009. The impact of lower production in 2010 increased cash cost by approximately $152 per ounce. This was partially offset by lower operating cash costs of $79 per ounce. Total cash cost per ounce produced is a non-GAAP measure and is discussed under “Non-GAAP Measures”.

During the first quarter of 2010, exploration expenditures in Mongolia increased to $1.2 million from $0.3 million in the same period of 2009. Capital expenditures in the first quarter of 2010 were unchanged at $0.2 million compared to the same quarter of 2009.

At the Gatsuurt project, $5.5 million of growth capital was spent in the quarter primarily related to the construction of the road to access the Gatsuurt project and connect it with the Boroo mill facilities. To date approximately 65% of the 55 kilometre road has been constructed. The road is projected to be completed by June 2010.

Exploration Update

To view the graphics, maps/drill sections and complete drill results discussed in this news release, please visit the following link: http://media3.marketwire.com/docs/centerradata428.pdf or visit the Company’s web site at: www.centerragold.com.

Kyrgyz Republic

During the first quarter of 2010, exploration drilling programs continued in the Kumtor Central Pit. Regional exploration drilling continued on the Kumtor concession area at the Northeast and Muzdusuu.

Kumtor Pit

In the first quarter of 2010, one drill hole was completed and three holes were in progress at quarterend. Drill hole D1389 drilled on Section -10 was designed to test the Kumtor structure at the 3,000 metre elevation 500 metres vertically below the current pit design. The drill hole intersected lowgrade mineralization, 2.2 g/t Au over 7.0 metres at the 3,000 metre elevation with weak alteration over a 300 metre interval from the 3,200 metre elevation to the bottom of the hole. The hole was stopped at a depth of 1,292 metres due to technical difficulties and did not test the entire Kumtor structural zone.

The results are encouraging. The targeted Kumtor structural zone was intersected in the expected position, 800 metres down dip and 500 metres along strike of the nearest drill holes. This indicates that the Kumtor structure continues to depth with untested potential both down dip and along strike of known mineralized zones.

Drilling in the second quarter will test the SB Zone at the 3,300 metre elevation and holes are also planned to test for down dip extensions of the Stockwork Zone. Drilling on the Southwest Extension of the SB Zone is also planned if mining activity permits.

Decline Exploration

No underground exploration drilling was undertaken in the first quarter. Drilling in decline #1 is expected to resume in the second quarter of 2010. Drilling in the second decline is expected for the third quarter as decline #2 should be advanced sufficiently.

Regional Exploration

Regional exploration drilling continued in the first quarter of 2010 at Northeast, Muzdusuu. No drilling was conducted at the Southwest or Sarytor areas due to high avalanche risk after heavy snowfalls in February and March.

Northeast Area

During the first quarter of 2010 one hole was completed at the Northeast prospect to follow up on the high grade mineralization intersected in drilling completed in the fourth quarter of 2009. Drill hole DN1400A intersected mineralization grading 4.0 g/t Au over 10.8 metres, including 10.9 g/t Au over 3.5 metres, and 2.3g/t Au over 9.2 metres and 5.1 g/t Au over 19.8 metres, including 15.6 g/t Au over 3.0 metres. The continuity of the high grade mineralization is considered to be encouraging and additional drilling will be carried out in the second quarter to define the strike and dip extent of the mineralization.

True widths for the mineralized zones are typically from 70% to 95% of the stated intercept.

A complete listing of the drill results and supporting maps for the Kumtor pit and Northeast area have been filed on the System for Electronic Document Analysis and Retrieval (‘SEDAR’) at www.sedar.com and are available at the Company’s web site at: www.centerragold.com.

Mongolia

During the first quarter of 2010, exploration work in Mongolia included drilling programs at the Gatsuurt project and the Ulaan Bulag prospect.

Gatsuurt Project

During the fourth quarter of 2009 a drill program was carried out to test a target immediately to the east of the planned Central Zone pit. The drilling was at approximately 60 metre centers and returned promising results. In the first quarter of 2010 a 30 by 30 metre infill drill program was completed and the results continue to be encouraging.

The mineralization appears to be associated with relatively steep west dipping structures and flat granite bodies. The eastern border is controlled by relatively steep west-dipping fault, and the mineralization bottom is controlled by the relatively flat lying granite – sediment contact.

The Gatsuurt data base is being reviewed to determine if there are other targets on the South slope of the Gatsuurt Central zone similar to the new zone that has been identified that would warrant testing.

A complete listing of the drill results and supporting maps for the Gatsuurt drilling have been filed on the System for Electronic Document Analysis and Retrieval (‘SEDAR’) at www.sedar.com and are available at the Company’s web site at: www.centerragold.com.

Ulaan Bulag Prospect

A resource delineation program was started in late December 2009, after the mining license was issued by the Mongolian Mineral Authorities. During the first quarter of 2010, a 30 by 30 metre spaced drill program targeted the Nuga Zone, where earlier RC drilling has identified a low-grade oxidized resource.

Drilling results continue to be encouraging and additional drilling is being planned to follow up on these results.

United States (Nevada)

REN Joint Venture

On April 8, 2010 Barrick/Homestake elected to exercise their pre-emptive right to acquire Centerra Gold U.S. Inc.'s 64% interest in the REN joint venture for a cash payment of $35.2 million (see “Other Corporate Developments - Other”).

Outlook for 2010

2010 Production

Centerra's 2010 consolidated gold production is forecast to be in the 640,000 to 700,000 ounce range, which is unchanged from the prior guidance disclosed in the Company’s news release of February 23, 2010.

Gold production for the full year 2010 at the Kumtor mine in the Kyrgyz Republic is forecast to be between 530,000 to 570,000 ounces, which is higher than the prior guidance of 520,000 to 560,000 ounces based on incremental ounces mined in the first quarter. This excludes any production from the nearby Sarytor deposit, which will be mined in 2012 and 2013.

It is expected that the higher than anticipated production realized at Kumtor in the first quarter, which resulted from the processing of higher grade stockpiles established in the fourth quarter of 2009 and extracting more ore than expected from the benches mined in the first quarter, may be partially offset by lower production in the second and third quarters of 2010. Centerra still expects to produce approximately 43% of its annual production in the fourth quarter. The second and third quarters of 2010 will have lower production due primarily to the sequence of mining in the Kumtor pit as well as the anticipated change of the ball mill ring gear and a scheduled replacement of the SAG mill liner at the end of the second quarter at the Kumtor mill.

At Boroo/Gatsuurt, gold production is forecast to be 110,000 to 130,000 ounces, which is slightly lower than prior guidance of February 23, 2010 of 120,000 to 140,000 ounces due the delays in obtaining the final heap leach operating permit. The forecast assumes that:

the Company has received the final operating permit for the Boroo heap leach facility by July 2010 allowing it to restart the heap leach within days of receiving the permit. Approximately 28,000 ounces of gold production is planned from the heap leach in 2010 and,
all permitting and commissioning requirements for Gatsuurt are in place by mid-2010 in order to allow for the commencement of processing of Gatsuurt oxide ore in the second half of 2010 (expected production of approximately 50,000 ounces of gold from the Gatsuurt project).

Failing the receipt of the required approvals for Gatsuurt in a timely manner, an alternative plan can be initiated that will allow the Boroo operation to achieve the production within the forecasted range of ounces produced.

These production estimates are based on certain assumptions. See “Material Assumptions” below.

2010 Total Cash Cost per Ounce

Total cash cost in 2010 is expected to be between $460 and $505 per ounce produced, which is unchanged from the prior guidance of February 23, 2010. Total cash cost is a non-GAAP measure and is discussed under "Non-GAAP Measures".

Total cash cost for 2010 for Kumtor is expected to be in the range of $430 to $460 per ounce produced, which is unchanged from the prior guidance.

Boroo/Gatsuurt total cash cost for 2010 reflects the Gatsuurt start-up and is expected to be $590 to $690 per ounce produced, which is unchanged from the prior guidance.

Centerra’s production and unit costs are forecast as follows:

	2010 Production Forecast (ounces of gold)	2010 Total Cash Cost(1) ($ per ounce produced)
Kumtor	530,000 – 570,000	430 – 460
Boroo	110,000 – 130,000	590 – 690
Consolidated	640,000 – 700,000	460 – 505

(1) Total cash cost is a non-GAAP measure. See “Non-GAAP Measures below.

These cost estimates are based on certain assumptions. See “Material Assumptions” below.

2010 Exploration Expenditures

Exploration expenditures of $30 million are planned for 2010, and the exploration plan is unchanged from the prior guidance. The 2010 program will continue the aggressive exploration work at the Kumtor mine with $12.6 million of planned expenditures to test for additional open pit and underground resources. In Mongolia, $2.7 million is allocated for target definition work and drill programs on our large land holdings. In addition, drilling and generative programs will be continued in Russia ($2.7 million), Turkey ($3.2 million) and Nevada ($2.5 million) with drilling programs continuing on the four joint ventures and two projects generated in 2008 and on the four new joint ventures acquired in 2009.

Generative programs will continue in Central Asia, Russia, China, Turkey and the U.S. to increase the pipeline of projects that are being developed to meet the longer term growth targets of Centerra.

2010 Capital Expenditures

The capital expenditures for 2010 are estimated to be $245.2 million, including $49.1 million of sustaining capital and $196.1 million of growth capital. This represents a decrease of $19.2 million from prior guidance primarily due to the timing of expenditures in growth capital at Gatsuurt.

Capital expenditures include:

Projects	2010 Growth Capital (millions of dollars)	2010 Sustaining Capital (millions of dollars)
Kumtor mine	$153.6	$43.8
Boroo mine	$0.5	$4.9
Gatsuurt project	$42.0	0
Other	0	$0.4
Consolidated Total	$196.1	$49.1

Kumtor Capital

At Kumtor, the largest growth capital expenditure will be for the North Wall Expansion project, estimated at $92.6 million primarily for purchases of mining and auxiliary support equipment to renew and expand the mining fleet. The equipment has been ordered and is expected to be delivered in the fourth quarter of 2010 and the first quarter of 2011. To increase haulage capacity to manage the ice/waste movement in the high movement area, Kumtor has started the process of acquiring seven new CAT 789 haul trucks for a total cost of $18.2 million. It is expected that the trucks will be delivered in the second and third quarters of 2010. The underground growth capital for developing the SB Zone and Stockwork Zone, as well as for delineation drilling and capital purchases, is estimated to be $41.1 million in 2010.

Boroo & Gatsuurt Capital

At Boroo, 2010 sustaining capital expenditures are expected to be $4.9 million, primarily for the purchase of new ball and SAG mill gears ($2.1 million) and mobile equipment component changeouts ($1.9 million). These expenditures are based on operational needs and also assume the receipt of the required approvals for Gatsuurt in a timely manner from the Mongolian regulatory authorities.

At Gatsuurt, expected 2010 growth capital spending is forecasted at $42.0 million down from $73.8 million in the prior guidance. The decrease in capital spending is due to a decision to delay the engineering and construction of the Boroo bio-oxidation facility for processing Gatsuurt and other sulphide ores. This decision was made due to issues involving Gatsuurt’s commissioning with the Mongolian Government and the drilling results at Gatsuurt which has identified additional oxide mineralization which may extend the oxide operating life at Gatsuurt, delaying the need for the biooxidation plant. As a result of this decision, the capital spending in 2010 for the engineering and construction of the Boroo bio-oxidation facility has been scaled down to $5.0 million from $40 million reported in the previous guidance.

Other growth capital spending at Gatsuurt includes completion of the Gatsuurt site infrastructure including the haul road between Gatsuurt and Boroo ($8.5 million), purchase of haul trucks to be used for hauling of ore from the Gatsuurt site to the Boroo mill ($5.8 million), pre-stripping of the Gatsuurt orebody ($9.2 million), expansion of the existing Boroo tailings facility to contain Gatsuurt oxide and sulphide tailings ($4.8 million).

The Company has implemented a phased approach to the development of the Gatsuurt orebody consisting of an oxide project component and a sulphide project component. It is anticipated that the Gatsuurt oxide ores will begin to be processed through the Boroo facility in the third quarter of 2010. The balance of the capital for the development of the deeper sulphide ores at Gatsuurt may only be invested if the Company is successful in obtaining an acceptable investment agreement for Gatsuurt with the Government of Mongolia.

Administration

Annual corporate and administration expenses have been revised to amount to approximately $41 million in 2010, which is $7 million higher than the prior guidance in the fourth quarter 2009 mainly due to higher anticipated stock-based compensation resulting from the increased Centerra share price.

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