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Centerra Gold Reports Kumtor Mine Receives Permit to Raise Tailings Dam

Permits & Approvals

1 University Avenue, Suite 1500

Toronto, ON

M5J 2P1

tel 416-204-1953

fax 416-204-1954

www.centerragold.com

NEWS RELEASE

Centerra Gold Reports Kumtor Mine Receives Permit to Raise Tailings Dam

Toronto, Canada, March 6, 2017: Centerra Gold Inc. (TSX: CG) reports that the Kumtor operation, located

in the Kyrgyz Republic, has received the necessary permits from the state authorities to raise the tailings dam

to the 3674 metre elevation. The construction permits enables the mine to commence the 3-year construction

program to provide adequate tailings storage cap acity for Kumtor’s mill tailings deposition from 2021

through the end of 2024. The tailings dam constructi on in 2017 is the first such construction required to

contain the additional 3.6 million ounces of gold reserves th at resulted from the KS-13 pit expansion. It is

estimated that in 2017 the Company will invest appr oximately $11 million (no change to 2017 guidance) of

the total estimated investment of $32 million.

The tailings dam approval process at Kumtor requires th e mine to permit each of the 3 metre tailings dam

raises. After the initial raise is completed in 2020, th e mine would then submit a design to raise the dam to

the final elevation of 3677.5 starting in 2021. The Co mpany expects that it would apply for and receive, in

the ordinary course, the necessary approvals and permits for the final tailings dam raise.

About Centerra

Centerra is a Canadian-based gold mining company focused on operating, deve loping, exploring and

acquiring gold properties in North America, Asia and ot her markets worldwide. Centerra 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 headquartered in Toronto, Ontario, Canada.

Caution Regarding Forward-Looking Information

Information contained in this news release which are not statements of historical facts may be “forward-

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

involves risks, uncertainties and other factors that could cause actual results and performance to differ

materially from those expressed or implied by such forward looking information. The words “believe”,

“expect”, “anticipate”, and similar expressions identify forward-looking information. These forward-looking

statements relate to, among other things, the expecta tions for the construction of the tailings dam at the

Kumtor Mine and receiving the necessary future approvals and permits for the final tailings dam raise at the

Kumtor Mine.

Forward-looking information is necessarily based up on a number of estimates and assumptions that, while

considered reasonable by Centerra, are inherently s ubject to significant political, business, economic and

competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ

materially from those projected in the forward looking in formation. Factors that could cause actual results or

events to differ materially from current expectations include, among other things, political risks associated

with the Company’s operations in the Kyrgyz Republic, th e impact of changes in, or to the more aggressive

enforcement of, laws, regulations and government practices in the Kyrgyz Republic, including any unjustified

civil or criminal action against the Company, its affiliat es or its current or former employees; the impact of

any actions taken by the Kyrgyz Republic Government and Parliament relating to the agreements governing

the Kumtor Project which are inconsistent with the ri ghts of Centerra and Kumtor Gold Company under such

1 University Avenue, Suite 1500

Toronto, ON

M5J 2P1

tel 416-204-1953

fax 416-204-1954

www.centerragold.com

2

agreements; any impact on the purported cancellation of Kumtor’s land use rights at the Kumtor Project

pursuant to a court claim commenced by the Kyrgyz Re public General Prosecutor’s Office; the risks related

to other outstanding litigation affecting the Company’s op erations in the Kyrgyz Republic; risks related to

operational matters and geotechnical issues at the Ku mtor Project, including, movement of the Davidov

Glacier, waste and ice movement, the continued perform ance of the buttress, the occurrence of further ground

movements, inherent risks associated with the use of sodium cyanide in the mini ng operations; the adequacy

of the Company’s insurance to mitigate operational ri sks; mechanical breakdowns ; the Company’s ability to

obtain the necessary permits and authorizations to (am ong other things) raise the tailings dam at the Kumtor

Project to the required height; the occurrence of any labour unrest or disturbance; the risk that Centerra’s

workforce may be exposed to widesp read epidemic; seismic activity in the vicinity of the Company’s

operations; long lead times required for equipment and supplies; reliance on a limited number of suppliers for

certain consumables, equipment and components; and the Company’s ability to attract and retain qualified

personnel. See section titled “Risk Factors” in the Company’s most recently filed MD&A for December 31,

2016 and 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 resu lts, 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 care fully 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 March 6, 2017. Centerra assum es 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

[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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