NEWS RELEASE

Centerra Gold Exceeds 2015 Production Guidance and Announces 2016 Outlook

All figures are in United States dollars unless otherwise stated.

Toronto, Canada, January 11, 2016: Centerra Gold Inc. (TSX: CG) announced today that it exceeded its 2015 annual production guidance and that consolidated gold production for 2015 totalled 536,921 ounces. This production total includes 520,695 ounces of gold from the Kumtor mine, located in the Kyrgyz Republic and 16,226 ounces of gold from the Boroo mine, located in Mongolia. During the fourth quarter of 2015, consolidated gold production was 133,665 ounces, including 130,611 ounces of gold produced by the Kumtor mine and 3,054 ounces of gold produced by the Boroo mine.

Scott Perry, Chief Executive Officer of Centerra stated, "I'm very pleased to report that both our operations exceeded their production guidance for the year and that we ended the year with over $535 million in cash and short-term investments. For 2016 we are estimating gold production to be in the range of 480,000 to 530,000 ounces. At Kumtor this year, we are expecting gold production to be weighted more towards the second half of the year as we access the higher grade portion of the SB Zone at the end of the second quarter. Centerra's projected consolidated all-in sustaining cost per ounce sold1 for 2016 is expected to be in the range of $877 to $968."

"We are continuing to advance the Öksüt Project in Turkey. Work on the detailed engineering and procurement of contractors and equipment is ongoing. Our site project management team is now in place and will be moving to our offices in Develi, which is approximately 20 minutes from the site, on February 1st," he concluded.

The Company also notes that, effective January 1, 2016, Ian Atkinson formally stepped down from the Board of Directors and that Scott Perry has been appointed to the Board of Directors.

2016 Outlook

Kumtor's forecast 2016 production and unit costs are provided on a 100% basis. See "Material Assumption and Risks" for other material assumptions or factors used to forecast production and costs for 2016.

2016 Gold Production

Centerra's 2016 gold production is expected to be between 480,000 to 530,000 ounces. All of Centerra's 2016 production is expected to come from the Kumtor mine and is consistent with the 2016 production outlined in the life-of-mine plan set out in the Kumtor NI 43-101 technical report dated March 20, 2015, filed on SEDAR.

The Boroo mine will continue with closure activities mainly focusing on reclamation work at the Boroo property. Any revenue from Boroo gold production from rinsing the heap leach pad will be offset against mine closure costs. The 2016 production forecast assumes no gold production from Boroo or Gatsuurt.

1 Non-GAAP measure, see discussion under "Non-GAAP Measures" in the Company's MDA filed on SEDAR.

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www.centerragold.com

2016 All-in Unit Costs1

Centerra's 2016 all-in sustaining costs per ounce sold1 and all-in costs (excluding Öksüt and Greenstone growth projects) per ounce sold1 are forecast as follows:

1. Adjusted operating costs per ounce sold, all-in sustaining costs per ounce sold, all-in costs (excluding growth projects) per ounce sold, all-in costs (excluding growth projects and including taxes) per ounce sold, as well as capital expenditures (sustaining and growth) are non-GAAP measures and are discussed under "Non-GAAP Measures" in the Company's Management Discussion and Analysis (MDA) filed on SEDAR.

2. Boroo costs include maintaining the Boroo mill on care and maintenance and ongoing closure costs net of gold sales.

3. Other costs per ounce sold include global exploration expenses, business development expense and project development costs not related to current operations.

4. Includes revenue-based tax that reflects a forecast gold price assumption of $1,125 per ounce sold.

2016 Exploration Expenditures

Planned exploration expenditures for 2016 total $11 million, which is approximately equal to the 2015 exploration spending. The 2016 exploration plan includes $1.0 million for further exploration work on the Öksüt property, and

$10 million to fund other ongoing projects (excluding Greenstone) and generative exploration programs. See also 2016 Greenstone Property.

1 Non-GAAP measure, see discussion under "Non-GAAP Measures" in the Company's MDA filed on SEDAR.

2016 Capital Expenditures

Centerra's projected capital expenditures for 2016, excluding capitalized stripping, are estimated to be $269 million, including $85 million of sustaining capital1 and $184 million of growth capital1.

Projected capital expenditures (excluding capitalized stripping) include:

• excludes $4.5 million representing capitalized expenditures related to the Greenstone Property.

  
  

  Kumtor

  At Kumtor, 2016 total capital expenditures, excluding capitalized stripping, are forecast to be $110 million. Spending on sustaining capital1 of $84 million relates primarily to major overhauls and replacements of the heavy duty mine equipment ($69 million), construction to raise the tailings dam ($6 million) and other items ($9 million).

  
  

  Growth capital1 investment at Kumtor for 2016 is forecast at $26 million and includes the relocation of certain infrastructure at Kumtor related to the KS-13 life-of-mine expansion plan amounting to $17 million, dewatering projects ($6 million) and other items ($3 million).

  
  

  The cash component of capitalized stripping costs related to the development of the open pit is expected to be $122 million of the $162 million total capitalized stripping in 2016.

  
  

  Mongolia (Boroo and Gatsuurt)

  At Boroo, 2016 sustaining capital1 expenditures are expected to be minimal and no growth capital1 is forecast for Boroo or Gatsuurt. This will be re-assessed subject to approval of the Gatsuurt Project by the Mongolian

  Parliament.

  
  

  2016 Öksüt Project

  The Company expects to spend $157 million for capital construction at the Öksüt property in 2016. The total planned spending of $157 million includes mine construction costs of $134 million, capitalized project support and administration costs of $19 million, and other capitalized costs of $4 million.

  
  

  2016 Greenstone Property

  Centerra acquired a 50% interest in the Greenstone Gold Property from Premier Gold on March 9, 2015, resulting in the formation of a 50/50 partnership (Greenstone Gold Mines L.P.). Centerra has agreed to fund exploration work and project development work including completion of the feasibility study (via capital contributions) to the Greenstone Partnership in the aggregate amount of C$185 million, which obligation is subject to certain feasibility study results and project advancement criteria. The joint venture expects to complete the feasibility study for the Hardrock Project by the middle of 2016.

  
  

  
  

  1 Non-GAAP measure, see discussion under "Non-GAAP Measures" in the Company's MDA filed on SEDAR.

  Centerra's guidance for 2016 expenditures in connection with the Greenstone Gold Property is approximately

  $10.8 million (C$14.5 million) and represents costs forecast to be spent to the completion of the feasibility study. At that time, Centerra will re-estimate costs for the balance of the year. The 2016 guidance includes work for technical studies, environmental and social impact assessment, project support ($7.6 million), exploration ($2.2 million) as well as some capital expenditures for the project ($1 million). The forecast spending for 2016 will be fully funded by Centerra with 50% of spending accounted for as pre-development project spending or exploration and expensed through Centerra's income statement. The remaining 50% of spending will be capitalized on Centerra's balance sheet and be accounted for as an acquisition cost of the Greenstone Gold Property ($4.9 million) in addition to $1 million to be spent on capital items.

  
  

  2016 Corporate Administration and Community Investment

  Corporate and administration expense for 2016 is forecast to be $31 million, which includes $30 million for corporate and administration costs, and $1 million for business development activities.

  
  

  2016 Depreciation, Depletion and Amortization

  Consolidated depreciation, depletion and amortization expense included in costs of sales expense for 2016 is forecasted to be approximately $206 million at Kumtor.

  
  

  2016 Taxes

  Pursuant to the Restated Investment Agreement, Kumtor's operations are not subject to corporate income taxes. The agreement assesses tax at 13% on gross revenue (plus 1% for the Issyk-Kul Oblast Development Fund).

  
  

  Sensitivities

  Centerra's revenues, earnings and cash flows for 2016 are sensitive to changes in certain key inputs or currencies. The Company has estimated the impact of any such changes on revenues, net earnings and cash from operations.

  
  

  Change	Impact on ($ millions)
  	Costs	Revenues	Cash flows	Earnings before income tax
  Gold Price	$50/oz	3.4 - 3.6	24.0 - 26.5	20.7 - 22.8	20.7 - 22.8
  Diesel Fuel	10%	1.7	-	4.4	1.7
  Kyrgyz som(1)	1 som	0.9	-	1.4	0.9
  Canadian dollar(1)	10 cents	2.8	-	2.8	2.8

  
  

  (1) appreciation of currency against the US dollar will result in higher costs and lower cash flow and earnings, depreciation of currency against the US dollar results in decreased costs and increased cash flow and earnings.

  
  

  Material Assumptions and Risks

  Material assumptions or factors used to forecast production and costs for 2016 include the following:

  • a gold price of $1,125 per ounce,

  • exchange rates:

    • $1USD:$1.34 CAD

    • $1USD:65.0 Kyrgyz som

    • $1USD:0.95 Euro

  • diesel fuel price assumption:

    • $0.55/litre at Kumtor