Centerra Provides Update on International Arbitration
1 University Avenue, Suite 1500
Toronto, ON
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tel 416-204-1953
fax 416-204-1954
www.centerragold.com
NEWS RELEASE
Centerra Provides Update on International Arbitration
Toronto, Canada, July 19, 2017: Centerra Gold Inc. (TSX: CG) announces that an arbitrator has issued an
order providing certain interim relief to Centerra in its ongoing arbitration against the Kyrgyz Republic and
Kyrgyzaltyn JSC in connection with the Kumtor Project.
The interim relief granted by the arb itrator, among other things : (i) orders the Kyrgyz Republic to give 30
days’ prior notice to the arbitrator and Centerra in the event of resumption of the claims brought by Kyrgyz
Government entities in Kyrgyz courts relating to alleged environmental harm, dividends and land use, in
order to allow Centerra to seek appropriate relief from the arbitrator; (ii) directs the Kyrgyz Republic to give
immediate notice to the arbitrator and Centerra if any procedural action is taken in the Kyrgyz court
proceedings; and (iii) orders the Kyrgyz Republic to use its best efforts to ensure that public officials,
authorities, agencies, and instrumentalities of the Kyrgyz Republic comply with her decision.
In addition, the arbitrator found that Centerra had made out both (i) a prima facie case for the arbitrator to
take jurisdiction over the arbitration proceeding; and (ii) a prima facie case on the merits of the case. Such
findings relating to jurisdiction and merits support Centerra’s long -standing view that the Kyrgyz court
proceedings are disputes that should be brought in international arbitration and may not be brought before the
courts of the Kyrgyz Republic. Centerra further believes that the court claims are without foundation or
substance on the merits.
As prev iously disclosed, on January 12, 2017, Centerra filed with the Permanent Court of Arbitration a
request for a partial award or, in the alternative, interim measures, against the Kyrgyz Republic in which
Centerra sought an award ordering that the Kyrgyz Rep ublic withdraw or stay (suspend) the Kyrgyz court
proceedings, and related decisions, court orders and judgments, which proceedings have been continuously
postponed for several months. One consequence of the Kyrgyz court proceedings is a freezing order fro m a
Kyrgyz Republic court seeking to block Centerra’s subsidiary, Kumtor Gold Company (KGC), from
distributing cash it currently holds to Centerra. The interim relief Centerra sought included a declaration that
the freezing order was invalid. However, the arbitrator’s order does not grant the interim relief requested by
Centerra because she did not find an imminent threat of irreparable or substantial harm to Centerra’s rights if
the Kyrgyz court order remained in place while the main arbitration proceeding proceeds. However, her order
effectively prohibits the Kyrgyz Republic from taking further action in the Kyrgyz court proceedings without
providing Centerra the opportunity to object to such action, and preserves for the arbitrator the authority to
order the Kyrgyz Republic to refrain from taking any proposed action. In particular, she noted:
“To avoid the aggravation of the di spute…it appears necessary to ensure that the Kyrgyz Court Claims will
not proceed to final judgments or enforceable orders d uring the pendency of these arbitrations, or at least that
they do not so proceed without [Centerra and its Kyrgyz Republic subsidiaries] having adequate notice
allowing them to take any action they deem appropriate to avoid incurring substantial harm.”
1 University Avenue, Suite 1500
Toronto, ON
M5J 2P1
tel 416-204-1953
fax 416-204-1954
www.centerragold.com
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Centerra will continue to pursue its claims in its main arbitration proceeding, which was commenced in May
2016 and remains ongoing. Responses to Centerra’s statement of claim are expected to be submitted by the
Kyrgyz Republic and Kyrgyzaltyn in September 2017.
In the meantime, Centerra and the Government of the Kyrgyz Republic continue discussions with a view to
settling all outstanding matters relating to the Kumtor Project.
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 is the largest
Western-based gold producer in Central Asia and operates the Kumtor mine in the Kyrgyz Republic and the
Mount Milligan mine in British Columbia, Canada. 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
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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