Mr. Paul Tomory reports

CENTERRA GOLD REPORTS FIRST QUARTER 2024 RESULTS; CONTINUED STRONG CASH FLOW FROM OPERATING ACTIVITIES; CASH AND CASH EQUIVALENTS INCREASED TO $648 MILLION

Centerra Gold Inc. has released its first quarter 2024 operating and financial results. All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100-per-cent basis, unless otherwise stated.

President and chief executive officer Paul Tomory commented: "Centerra had a strong quarter of operating performance with production and costs outperforming our expectations. At Mount Milligan, we continued to advance a site-wide optimization program, implementing tangible initiatives in several areas, including concentrate management, mine operations and mine-to-mill optimization. We are also focused on a preliminary economic assessment to evaluate the substantial mineral resources at the Mount Milligan mine to unlock value beyond its current 2035 mine life. At Oksut, we remain on track with elevated production in the first half of the year, in line with our guidance.

"In the first quarter of 2024, our cash and cash equivalents increased to $647.6-million, despite making the $24.5-million payment related to the additional agreement with Royal Gold. We have been active on share buybacks in late February and March, delivering on our disciplined capital allocation strategy. Looking ahead, in the second quarter we expect to make tax and annual royalty payments in Turkey, totalling approximately $105-million, which will impact our cash balance. We continue to believe that Centerra is well positioned to achieve its 2024 guidance, as we are delivering on our value-maximizing strategy for the company's portfolio of assets," concluded Mr. Tomory.

First quarter 2024 highlights

Operations:

• Production: Consolidated gold production of 111,341 ounces, including 48,317 ounces of gold from the Mount Milligan mine and 63,024 ounces of gold from the Oksut mine. Copper production in the quarter was 14.3 million pounds.
• Sales: First quarter 2024 gold sales of 104,313 ounces at an average realized gold price of $1,841 per ounce and copper sales of 15.6 million pounds at an average realized copper price of $3.12 per pound. The average realized gold and copper prices include the impact from the Mount Milligan streaming agreement.
• Costs: Consolidated gold production costs were $746 per ounce and all-in sustaining costs (AISC) on a byproduct basis were $859 per ounce for the quarter.
• Capital expenditures: Additions to property, plant and equipment (PP&E) and sustaining capital expenditures were $15.3-million and $16.2-million, respectively. Sustaining capital expenditures in the first quarter 2024 included water pumping system construction, equipment overhauls and purchases of mobile equipment at Mount Milligan, as well as the heap leach pad expansion and capitalized stripping and water treatment plant construction at Oksut.

Financial:

• Net earnings: First quarter 2024 net earnings were $66.4-million, or 31 cents per share, and adjusted net earnings were $31.3-million or 15 cents per share. Adjustments to net earnings include $25-million of reclamation provision revaluation recovery, $8.9-million of unrealized foreign currency exchange gains and $6.8-million in income tax adjustments mainly resulting from a withholding tax expense on the repatriation of Oksut's earnings.
• Cash provided by operating activities and free cash flow: Cash provided by operating activities was $99.4-million and free cash flow was $81.2-million. This includes $101.4-million of cash provided by mine operations and $90.1-million of free cash flow at Oksut; and $30-million of cash provided by mine operations and $24.1-million of free cash flow at Mount Milligan. This is offset by cash used in operating activities and a free cash flow deficit from corporate expenses, Thompson Creek expenditures, and other exploration activities.
• Cash and cash equivalents: Total liquidity of $1,046.9-million as at March 31, 2024, comprising a cash balance of $647.6-million and $399.3-million available under a corporate credit facility.
• Dividend: Quarterly dividend declared of seven Canadian cents per common share.

Other:

• Share buybacks: Under Centerra's normal course issuer bid (NCIB) program, the company repurchased 1,783,800 common shares in the first quarter 2024, for the total consideration of $10-million.
• Mount Milligan mine life extension and additional agreement with Royal Gold: In the first quarter of 2024, Centerra announced an additional agreement with Royal Gold related to Mount Milligan, which resulted in a life-of-mine extension to 2035 and established favourable parameters for potential future mine life extensions. This is a key first step in the company's strategy to realize the full potential of this cornerstone asset in a top-tier mining jurisdiction. For additional details, please refer to the announcement entitled "Centerra Gold Announces Mount Milligan Mine Life Extension and Additional Agreement with Royal Gold," issued on Feb. 14, 2024.
• Thompson Creek feasibility study: Work is progressing on the feasibility study to evaluate the restart of mining at the Thompson Creek mine. The company expects to complete the study in late summer of 2024.

2024 outlook

The company's 2024 outlook previously disclosed in the management's discussion and analysis for the year ended Dec. 31, 2023, filed on SEDAR+ and EDGAR, is unchanged except for the following revisions: the Kemess project's reclamation costs have been revised down from the range of $24-million to $30-million to the range of $19-million to $25-million and the expected Oksut mine taxes have been increased from the range of $46-million to $52-million to the range of $54-million to $60-million due to higher gold prices. The company notes that except for the changes highlighted above the rest of the outlook remains unchanged. The company's full-year 2024 outlook, as adjusted, and comparative actual results for the three months ended March 31, 2024, are set out in the attached table.

Project evaluation, exploration and other costs

The company's 2024 outlook for the Goldfield project, Kemess project, corporate administration, and other exploration projects and comparative actual results for the three months ended March 31, 2024, are set out in the attached table.

Mount Milligan

Mount Milligan produced 48,317 ounces of gold and 14.3 million pounds of copper in the first quarter of 2024. Mining activities were carried out in phases 6, 7 and 9 of the open pit. A total of 12.3 million tonnes were mined in the first quarter of 2024. Process plant throughput for the first quarter of 2024 was 5.2 million tonnes, averaging 56,728 tonnes per day. Mount Milligan is on track for its 2024 gold production guidance of 180,000 to 200,000 ounces and copper production guidance of 55 million to 65 million pounds. Both gold and copper production are expected to be evenly weighted throughout the year; however, gold and copper sales in the second half of 2024 are expected to contribute approximately 55 per cent of the annual sales.

Gold production costs in the first quarter 2024 were $954 per ounce, in line with $946 per ounce last quarter. AISC on a byproduct basis was $688 per ounce, 27 per cent lower than last quarter, due to lower sustaining capital expenditures and higher byproduct credits. The company expects gold production costs and AISC on a byproduct basis to be higher in the second quarter of 2024 as a result of a lower percentage of annual sales in the first half of 2024 (as noted above), along with higher expected sustaining capital expenditures. Mount Milligan is on track for its full-year 2024 gold production costs guidance and AISC on a by-product basis guidance.

In the first quarter 2024, sustaining capital expenditures at Mount Milligan were $4.1-million, focused on the tailings storage facility, projects related to water sourcing and access, equipment overhauls, and equipment purchases. The company maintains the 2024 sustaining capital guidance at Mount Milligan and expects the sustaining capital spending to increase throughout the year.

In the first quarter of 2024, Centerra made progress on its site-wide optimization program at Mount Milligan, initially launched in the fourth quarter 2023 and focused on a holistic assessment of occupational health and safety, as well as improvements in mine and plant operations. This program covers all aspects of the operation to maximize the potential of the orebody, setting up Mount Milligan for long-term success to 2035 and beyond. Notable achievements in the first quarter of 2024 were observed in key areas, including:

• Occupational health and safety: An improved safety record, including an increase in pro-active safety interactions, fewer incidents and a much lower severity index compared with the same period last year. There has been a significant increase of focus and measurement of the leading indicators such as the company's visible felt leadership program, root cause incident investigation and mitigation of fatal risks (MFR). These initiatives collectively have contributed to cultivating a safer and more informed workplace, fostering the well-being and productivity of all personnel.
• Mine: Increase in the mining fleet mechanical availability, utilization and overall productivity of the load-haul cycle. These strategies have contributed to higher tonnes mined compared with the same period last year, while simultaneously lowering the unit operating costs.
• Plant: Increased mill throughput per operating day due to factors such as consistent ore supply, renewed operating strategy of the flotation circuit and equipment modifications. Additionally, as part of the optimization efforts, the site has started to test a number of initiatives that aim to increase the overall copper and gold recoveries. This includes real-time adjustments to the flotation circuit for improved stabilization with optimal grind sizing and throughput, producing a higher volume of gold-copper concentrate with lower copper grades and ore blending initiatives to improve the processing of elevated pyrite-bearing high-grade gold, low-grade copper ore.

On Feb. 14, 2024, Centerra announced that the company has entered into an additional agreement with Royal Gold relating to Mount Milligan, which has resulted in a life-of-mine extension to 2035 and established favourable parameters for potential future mine life extensions. Centerra has initiated a preliminary economic assessment (PEA) to evaluate the substantial mineral resources at the Mount Milligan mine with a goal to unlock additional value beyond its current 2035 mine life. The PEA is expected to be completed in first half of 2025.

Oksut

Oksut produced 63,024 ounces of gold in the first quarter of 2024. Mining activities were focused on phase 5 and phase 6 of the Keltepe pit and in phase 2 of the Guneytepe pit. In the first quarter 2024, a total of 3.7 million tonnes were mined and one million tonnes were stacked at an average grade of 1.44 g/t. The company is on track to achieve its production 2024 guidance with approximately 60 per cent of the annual production weighted to the first half of the year.

Gold production costs and AISC on a byproduct basis for the first quarter 2024 at Oksut were $587 per ounce and $823 per ounce, respectively. These costs per ounce were higher compared with last quarter primarily due to increased mining and hauling costs and higher weighted average costs per ounce in the remaining inventory, as well as decreased gold production and sales. Oksut is on track to achieve its gold production costs guidance and AISC on a byproduct basis guidance for 2024.

In the first quarter 2024, sustaining capital expenditures at Oksut were $11.3-million, focused on capitalized stripping and water treatment plant construction.

In 2024, Oksut's current income tax paid is expected to be approximately $95-million to $105-million, with approximately $75-million to be paid in the second quarter of 2024, assuming no change in the exchange rate between the Turkish lira and U.S. dollar. Additionally, the annual Turkish government royalty payment will be made in the second quarter 2024. This is expected to be approximately $30-million. Together, these cash payments will require a cash outflow in the second quarter 2024 of approximately $105-million.

Molybdenum business unit

In the first quarter 2024, the molybdenum business unit sold 2.9 million pounds of molybdenum, generating revenue of $63.4-million with an average realized price of $20.47 per pound. As part of Centerra's previously disclosed 2024 guidance, the Langeloth metallurgical facility is expected to complete an acid plant maintenance shutdown in the second quarter 2024. A portion of Langeloth's full-year sustaining capital expenditure guidance is related to this planned outage. Molybdenum sales are not expected to be impacted by the acid plant maintenance shutdown as Langeloth has sufficient inventory levels to maintain a steady level of sales. As part of Centerra's strategy to maximize the value for each asset in its portfolio, the company has recently completed a commercial optimization plan at Langeloth, geared at increasing profitability and evaluating its future potential. Details of the commercial optimization plan and the value potential at Langeloth will be announced in conjunction with the Thompson Creek mine feasibility study in late summer of 2024.

In the first quarter of 2024, the Thompson Creek mine progressed with early works in the main open-pit area that are expected to continue through 2024. The costs of these activities are expected to be expensed until a limited notice to proceed is authorized by the board of directors, a matter to be considered following completion of the feasibility study.

First quarter 2024 operating and financial results webcast and conference call

Centerra invites you to join its 2024 first quarter conference call on Tuesday, May 14, 2024, at 9 a.m. Eastern Time. Details for the webcast and conference call are included below. Webcast Participants can access the webcast on-line.

An archive of the webcast will be available until the end of day on Aug. 14, 2024.

Conference call:

• Participants can register for the conference call on-line. Upon registering, you will receive the dial-in details and a unique PIN to access the call. This process will bypass the live operator and avoid the queue. Registration will remain open until the end of the live conference call.
• Participants who prefer to dial in and speak with a live operator can access the call by dialling 1-844-763-8274 or 647-484-8814. It is recommended that you call 10 minutes before the scheduled start time.
• After the call, an audio recording will be available by telephone for one month, until the end of day on June 14, 2024. The recording can be accessed by dialling 1-855-669-9658 or 604-674-0852 and using the passcode 0803. In addition, the webcast will be archived on Centerra's website.
• Presentation slides will be available on Centerra's website.

For detailed information on the results contained within this release, please refer to the company's management's discussion and analysis (MD&A) and financial statements for the quarter ended March 31, 2024, that are available on the company's website or SEDAR+.

About Centerra Gold Inc.

Centerra Gold is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Turkey and other markets worldwide. Centerra operates two mines: the Mount Milligan mine in British Columbia, Canada, and the Oksut mine in Turkey. The company also owns the Goldfield project in Nevada, United States, the Kemess project in British Columbia, Canada, and owns and operates the molybdenum business unit in the United States and Canada. Centerra's shares trade on the Toronto Stock Exchange under the symbol CG and on the New York Stock Exchange under the symbol CGAU. The company is based in Toronto, Ont., Canada.

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