TORONTO, ON --(Marketwired - April 30, 2015) -

This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 26 and in the Cautionary Note Regarding Forward-looking Information on page 31. It should be read in conjunction with the Company's unaudited interim consolidated financial statements and notes for the three-month period ended March 31, 2015 and associated Management's Discussion and Analysis. The consolidated financial statements of Centerra are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. All figures are in United States dollars unless otherwise stated.

To view Management's Discussion and Analysis and the Unaudited Interim Consolidated Financial Statements and Notes for the three-months ended March 31, 2015, please visit the following link:  http://media3.marketwire.com/docs/CG2015MDAFS.pdf .

Centerra Gold Inc. ( CG.TO ) today reported net earnings of $40.7 million or $0.17 per common share (basic) in the first quarter of 2015, compared to net earnings of $2.1 million or $0.01 per common share (basic) for the same period in 2014. The increase in earnings reflects a 53% increase in gold ounces sold, partially offset by lower average realized gold price ¹ , currency movements and higher share-based compensation charges in 2015.

2015 First Quarter Highlights

• Produced 170,683 ounces of gold in the first quarter, including 164,272 ounces at Kumtor and 6,411 ounces at Boroo.
• All-in sustaining costs per ounce sold ¹  for the first quarter of $718, excluding revenue-based tax in the Kyrgyz Republic and income tax.
• All-in costs per ounce sold ¹ , which excludes revenue-based tax in the Kyrgyz Republic and income tax, were $799 for the first quarter.
• The Gatsuurt Project in Mongolia was designated as a mineral deposit of strategic importance by the Mongolian Parliament.
• Completed forming a 50/50 partnership for the joint ownership, exploration and development of Premier Gold's Trans-Canada Property including the Hardrock Gold Project located in the Geraldton-Beardmore Greenstone Belt in northwestern Ontario.
• Filed an updated Technical Report and new life-of-mine plan for Kumtor.

Centerra's cash, cash equivalents and short-term investments at the end of the first quarter of 2015 was $544.1 million after spending $67.4 million (C$85 million) to acquire a 50% interest in the Trans-Canada Partnership compared to $562.0 million at December 31, 2014. As at March 31, 2015, the Company had drawn $76 million on its $150 million revolving credit facility with EBRD, leaving a balance of $74 million undrawn. The amount drawn is due to be repaid on August 11, 2015 or, at the Company's discretion, repayment of the loaned funds may be extended until February 2016. Centerra believes, based on its current forecast, that it has sufficient cash and short-term investments to carry out its business plan in 2015 (see "2015 Outlook").

¹ Non-GAAP measure, see discussion under "Non-GAAP Measures".

Commentary

Ian Atkinson, President and CEO of Centerra Gold stated, "I am pleased to report that we are on track to achieve our production and cost guidance for the year. At Kumtor, the operation performed well during the quarter exceeding our expectations for gold production as it produced 164,272 ounces. Financially, cash provided by operations was $130.4 million for the first quarter and our cash, cash equivalents and short-term investments totaled $544 million at March 31, 2015 after closing the Trans-Canada transaction."

"At the Öksüt Project in Turkey things are proceeding well. As we announced earlier, measured and indicated resources increased to an estimated 1.4 million contained ounces of gold (40.0 million tonnes (Mt) at 1.1 grams per tonne gold (g/t Au)). We have recently filed the environmental impact assessment and work is progressing as planned on the full feasibility study which we are targeting to complete by mid-year."

"In the Kyrgyz Republic, the Company continues to work toward a resolution of all outstanding matters affecting the Kumtor Project. Any proposed resolution would need to be fair to all shareholders of Centerra and to receive all necessary legal and regulatory approvals under the Kyrgyz Republic and Canadian laws."

"During the quarter, we reported the designation of Gatsuurt as a mineral deposit of strategic importance by the Mongolian Parliament and this designation allows the Gatsuurt Project to move forward within the application of the Water and Forest Law. We are currently working with the Mongolian Government to determine either the level of state ownership or a special royalty in lieu of ownership and we expect the new proposal to be considered by Parliament in the current Parliamentary session. We also announced the formation of a partnership with Premier Gold to develop the Trans-Canada Property in northwestern Ontario. These two projects together with our Öksüt Project represent a significant step forward for Centerra in creating a development pipeline and reducing the risk associated with over reliance on a single project," Mr. Atkinson concluded.

Recent Developments
Kumtor Operations

• In 2013, the Company disclosed that it had discovered significant cracking in Kumtor's ball mill ring gear, requiring the Company to rotate the ring gear to continue milling operations. During the first quarter of 2015, the Company successfully replaced the ball mill ring gear during the scheduled mill maintenance with the replacement ring gear that had been delivered in late-2014, returning the mill to full operating capacity.
• On March 20, 2015, Centerra announced that it had filed an updated NI 43-101 technical report for the Kumtor Mine. The updated technical report describes in detail Kumtor's new life-of-mine plan (LOM), which is based on Kumtor's mineral reserve estimates as at December 31, 2014 and reflects an updated production profile, and updated operating and capital costs from those that were disclosed in the prior technical report for Kumtor dated December 20, 2012. See the Company's news releases dated February 9, 2015 and March 20, 2015 and the updated technical report which are available on SEDAR. Refer as well to the "Operations Update - Kumtor Operating Results - Technical Matters" below.
• The Company continued its discussions with the Government of the Kyrgyz Republic relating to the restructuring described in the Heads of Agreement dated January 18, 2014 (the "HOA"). On April 9, 2015, the Company announced that it was aware of certain statements made by the Prime Minister of the Kyrgyz Republic at a meeting of the Kyrgyz Republic Parliament and to local media suggesting that the restructuring of the Kumtor Project as a 50/50 joint venture between Centerra and Kyrgyzaltyn JSC ("Kyrgyzaltyn"), as previously announced by Centerra in its news release of December 24, 2013, would not be in the interests of the Kyrgyz Republic. The Prime Minister is also reported to have stated that nationalization of the Kumtor mine is not a viable alternative. Additionally, the Prime Minister is reported to have proposed changes or additions to the composition of Centerra's Board of Directors. See "Other Corporate Developments".
• Starting in the fourth quarter of 2014, Kumtor has submitted to various Kyrgyz Republic governmental agencies for approval its 2015 annual mine plan and its ecological passport, which provides for, among other things, allowable levels of environmental emissions and discharges. The ecological passport requires renewal every five years. Similar to Kumtor's experience in 2014, Kumtor initially received correspondence from such agencies declining to review such documents. The Company and Kumtor dispute the reasons provided by the regulatory agencies for their refusal to review the documents. Subsequently, Kumtor received the required expertise of the 2015 annual mine plan from the Kyrgyz Republic State Agency for Geology and Mineral Resources ("SAGMR"). It has also received notice from the Kyrgyz Republic State Agency for Environmental Protection and Forestry ("SAEPF") on March 31, 2015 stating that: (i) SAEPF is reviewing the 2015 annual mine plan and that the time frame for such review ends on June 4, 2015; and (ii) Kumtor's permits for emissions into the atmosphere and waste disposal into tailings ponds have been extended until June 4, 2015.
• The Company notes that project agreements governing the Kumtor Project require relevant Kyrgyz Republic Government authorities to be reasonable in relation to their approval of any mining plans submitted for approval. Similarly with respect to permits and approvals, Kumtor is entitled to maintain, have renewed and receive such licenses, consents, permissions and approvals as are from time to time necessary or convenient for the operation of the Kumtor Project. The Company intends to continue discussion with the Kyrgyz Republic Government and the applicable agencies to obtain the relevant approvals and permits but there can be no assurances that such approvals and permits will be received or that a suspension of mining will not occur. See "Other Corporate Developments - Kyrgyz Permitting and Regulatory Matters".

Mongolian Operations

• The Company announced on January 23, 2015 that the Gatsuurt Project, which is located approximately 55 km (by road) from the Company's Boroo mine in Mongolia, has been designated as a mineral deposit of strategic importance by the Mongolian Parliament. This designation allows the Gatsuurt Project to proceed in compliance with the Water and Forest Law and also allows Mongolia to acquire up to a 34% interest in the project. On February 17, 2015, the Government's proposal on state ownership of 20% was considered by Parliament but rejected and returned to the Government for review. On February 18, 2015, amendments to the Mongolian Minerals Law were approved by Parliament which provides an option for the Government to impose a special royalty at a rate up to 5% for strategic deposits rather than take an ownership interest in the project. The terms of such participation are subject to continued discussions between the Company and the Mongolian Government. Further development of the Gatsuurt Project is expected to be subject to, among other things, receiving Parliamentary approval of the Mongolia's state ownership or special royalty charge as well as the all required approvals and regulatory commissioning from the Mongolian Government. See "Other Corporate Developments - Mongolia".

Corporate
Trans-Canada Partnership

• Centerra and Premier Gold Mines Limited ("Premier") announced on March 9, 2015 the formation of a 50/50 partnership for the purpose of the joint ownership, exploration and development of the Trans- Canada Property including the Hardrock Gold Project located in the Geraldton-Beardmore Greenstone belt in Ontario, Canada. Premier, through a wholly-owned subsidiary, has contributed all property, assets and rights it held in respect of the Trans-Canada Property to the partnership and Centerra: (i) in return for a 50% limited partner interest, has made an initial cash contribution to the partnership in the amount of C$85 million (Premier withdrew C$85 million from the partnership in return for its contribution); and (ii) has agreed to make capital contributions to the partnership in the aggregate amount of C$185 million to be used to complete a comprehensive technical and economic feasibility study including an updated mineral resource calculation for the Hardrock Project at the Trans-Canada Property and for further development of the project. The C$185 million is subject to the satisfaction of certain feasibility study results and project advancement criteria. Centerra has also agreed to make an additional contingent payment to Premier not to exceed C$30 million based on the results of an updated mineral resource estimate in respect of the Trans-Canada Property.

Other matters

• On February 25, 2015, Centerra was served with an order (the "Belokon Order") from the Ontario Superior Court of Justice in favour of Mr. Valeri Belokon ("Belokon") which prohibits Kyrgyzaltyn from, among other things: (i) selling, disposing or exchanging 6,500,340 shares (the "Belokon Frozen Shares") of the 77,401,766 shares it holds in the capital of Centerra; (ii) obtaining share certificates in respect of such shares; or (iii) exercising its rights as a registered shareholder of Centerra in a manner that is inconsistent with or would undermine the terms of the Belokon Order. The order also prohibits Centerra from, among other things, registering any transfers or issuing share certificates in respect of the Belokon Frozen Shares, and requires Centerra to hold in trust for the proceeding under the Belokon Application (as defined below) any amounts payable to Kyrgyzaltyn in respect of dividends or distributions that Centerra may declare or pay in the future.
• Centerra was also served by Belokon with a notice of application to the Ontario Superior Court of Justice (the "Belokon Application") which seeks to enforce an October 24, 2014 arbitral award (the "Belokon Arbitration Award") obtained by Belokon against the Kyrgyz Republic from an ad hoc Arbitration Tribunal established in accordance with the Agreement between the Government of the Republic of Latvia and the Government of the Kyrgyz Republic for the Promotion and Protection of Investments in the amount of approximately $16.5 million. The Belokon Application seeks, among other things, an order declaring that the Kyrgyz Republic has a beneficial interest in all of the shares in Centerra held by Kyrgyzaltyn and that monies, interest, dividends and other rights of Kyrgyzaltyn in the stock of Centerra may be seized in order to satisfy the Belokon Arbitration Award.

1. Includes business development of $1.1 million for the three months ended March 31, 2015 (nil for three months ended March 31, 2014).
2. As at March 31, 2015, the Company had 236,475,477 common shares issued and outstanding.
3. Average for the period as reported by the London Bullion Market Association (US dollar Gold P.M. Fix Rate).
4. Adjusted operating costs, all-in sustaining costs, all-in costs and all-in costs - including taxes ($ millions and per ounce sold) as well as average realized gold price per ounce and cost of sales per ounce sold are non-GAAP measures and are discussed under "Non-GAAP Measures".
5. Includes capitalized stripping of $67.5 million in the three months ended March 31, 2015 ($88.1 million in the three months ended March 31, 2015) and $67.4 million to acquire a 50% interest in the Trans-Canada Property.
6. Operating costs (on a sales basis) are comprised of mine operating costs such as mining, processing, regional office administration, royalties and production taxes (except at Kumtor where revenue-based taxes are excluded), but excludes reclamation costs and depreciation, depletion and amortization. Operating costs (on a sales basis) represents the cash component of cost of sales associated with the ounces sold in the period.

First Quarter 2015 compared to First Quarter 2014

• Gold production for the first quarter of 2015 totaled 170,683 ounces compared to 116,669 ounces in the comparative quarter of 2014. The increase in ounces poured reflects higher production at Kumtor due to higher grade feed being processed through the mill. Boroo production in the first quarter of 2015 was lower than the comparable period as a result of the mill shutdown in the fourth quarter of 2014 and lower production from the heap leach operation as it transitioned to 100% secondary leaching.
• All-in sustaining costs per ounce sold ¹ , which excludes revenue-based tax and income tax, for the first quarter decreased to $718 from $1,109 in the comparative period of 2014. The decrease in the first quarter of 2015 results primarily from higher ounces sold and lower spending on capitalized stripping, partially offset by higher stock-based compensation, and higher spending on sustaining capital ¹ .
• All-in costs per ounce sold ¹ , which excludes revenue-based tax and income tax, were $799 compared to $1,158 in the comparative quarter of 2014, and includes all cash costs related to gold production, excluding revenue-based tax and income tax. The decrease reflects the additional ounces sold, the lower costs (described above) and lower exploration costs partially offset by increased spending for growth capital at Kumtor and spending in the first quarter of 2015 for pre-development activities at the new Trans-Canada partnership.
• Revenue in the first quarter of 2015 increased 44% to $212.6 million, as a result of 53% more ounces sold (175,232 ounces in the first quarter of 2015 compared to 114,493 ounces in the first quarter of 2014) partially offset by a 6% lower average realized gold price ¹ ($1,213 per ounce compared to $1,293 per ounce in the same quarter of 2014).
• In the first quarter of 2015, ounces sold increased 53% year-over-year, but cost of sales only increased by 4% to $113.9 million compared to the same period of 2014. This reflects the lower costs in both the stockpiled ore and in the ore mined and processed at Kumtor from cut-back 16 in the first quarter of 2015. The cost of sales in the first quarter of 2015 benefited from cut-back 16 containing more ounces and lower operating costs (for diesel, labour and other consumables) and reduced waste stripping as compared to cut-back 15 ore that was processed in the first quarter of 2014.
• Depreciation, depletion and amortization ("DD&A") associated with production was $70.4 million in the first quarter of 2015 (2014:$66.7 million), reflecting the increased ounces sold in 2015, which was partially offset by 31% lower capitalized stripping charges per ounce from cut-back 16 ore.
• Operating costs (on a sales basis) ¹ increased by 3% to $43.5 million in the first quarter of 2015 compared to the same period of 2014, reflecting 66% more ounces sold at Kumtor. The increase was limited to 3% due to processing lower cost ounces which reflect a reduction in costs for diesel, labour and other consumables as compared to the same period of 2014. At Boroo, operating costs were lower in the first quarter of 2015 as milling activities ceased in late 2014, while leaching costs were lower as secondary leaching commenced in the third quarter of 2014 and site support costs reflected reduced personnel levels.
• During the first quarter of 2015 Boroo incurred standby costs to place the mill and operation on care and maintenance totaling $2.7 million which included spending mainly on labour to clean mill circuits and to maintain equipment in a ready state, as well as fixed costs for administration. There were no standby costs incurred in the same period of 2014. The mine recovered 3,595 ounces of gold from the clean out process and was cash positive for the quarter.
• In the first quarter of 2015, pre-development projects costs increased by $2.5 million to $3.3 million compared to the comparative quarter in 2014. The increase in the first quarter of 2015 represents higher spending at the Öksüt Project and spending at the Company's new Trans-Canada Property.
• Exploration expenditures in the first quarter totaled $1.7 million compared to $2.6 million in the same period of 2014. The decrease in the first quarter reflects reduced spending on the Company's projects in Turkey and Mongolia and the closure of its regional offices in Beijing, China and Khabarovsk, Russia.
• Business development spending in the first quarter of 2015 totaled $1.1 million, representing consulting and legal charges in connection with the acquisition of the Company's 50% interest in the Trans- Canada partnership. There was no spending on business development activities in the same period of 2014.
• Other expenses of $4.2 million incurred in the first quarter of 2015 represent mainly the impact of currency movements, as the Canadian dollar weakened 9% against the US dollar and devalued the Canadian assets held by the Company.
• Corporate administration costs increased to $9.4 million in the first quarter of 2015 from $6.5 million in the same period of 2014. The increase was primarily due to higher legal and consulting costs related to on-going negotiations and higher share-based compensation resulting from the revaluation, at March 31, 2015, of underlying share awards issued to employees under the Company's share-based plans. Share-based compensation charge in the first quarter of 2015 was $2.0 million, compared to $0.9 million in the same period in 2014.
• Cash provided by operations increased by $28.8 million to $130.4 million in the first quarter of 2015 compared to $101.6 million in the same period of 2014. The increase reflects the higher earnings in the first quarter 2015.
• Total capital expenditures in the first quarter of 2015 were $155.6 million, which included sustaining capital ¹ of $12.6 million, growth capital ¹ of $6.6 million, $68.9 million to acquire a 50% interest in the Trans-Canada Property including pre-development project costs of $1.5 million and $67.5 million of capitalized stripping costs ($51.7 million cash). Capital expenditures in the same quarter of 2014 were $98.9 million, which included $8.6 million for sustaining capital and $2.2 million for growth capital ¹ and capitalized stripping of $88.1 million ($62.4 million cash). The capital expenditures were 12% lower in the first quarter of 2015 as a result of lower capitalized stripping at Kumtor (a decrease of 23%), partially offset by higher sustaining capital ¹ for equipment rebuilds and overhauls and increased spending on the infrastructure relocation project at Kumtor.

¹ Non-GAAP measure, see discussion under "Non-GAAP Measures".

1. Adjusted operating costs, all-in sustaining costs, all-in costs and all-in costs - including taxes (in $ millions and per ounce sold), as well as average realized gold price per ounce sold, cost of sales per ounce sold and capital expenditures (sustaining and growth) are non-GAAP measures and are discussed under "Non-GAAP Measures".
2. Operating costs (on a sales basis) is comprised of mine operating costs such as mining, processing, regional office administration, royalties and production taxes (except at Kumtor where revenue-based taxes are excluded), but excludes reclamation costs and depreciation, depletion and amortization.

At the Kumtor mine in the Kyrgyz Republic, mining activities in the first quarter of 2015 focused on completing mining the ore from cut-back 16 and starting the waste stripping in cut-back 17. During the quarter, Kumtor mined approximately 1.3 million tonnes of ore at an average grade of 3.30 g/t from cut-back 16, compared to 0.1 million tonnes of ore mined at an average grade of 1.45 g/t in the first quarter of 2014, when the Company focused exclusively on waste stripping and processed lower grade stockpiled ore. During 2015, Kumtor will continue the development and waste mining from cut-back 17 which is expected to provide an increase in the grade of ore at the end of the third quarter of 2015 compared to the lower grade stockpiled ore currently being processed and uncover the high-grade ore in the third quarter of 2016.

Total waste rock and ore mined during the first quarter of 2015 was 41.7 million tonnes compared to 50.8 million tonnes in the comparative period of 2014, representing a decrease of 18%, primarily due to a 19.5% increase in average haulage distance when compared to the same period of 2014. Other negative factors include unfavourable weather conditions, as the mine experienced increased precipitation and higher temperatures than normal during the first quarter of 2015 which had an adverse impact on pit productivity, and decreased haul truck availability by 4% compared to the comparative period of 2014.

Gold production for the first quarter of 2015 was 164,272 ounces compared to 102,933 ounces in the comparative quarter of 2014. The increase in ounces poured during 2015 was due to processing higher grade mill feed and achieving higher recoveries than in the comparative quarter. During the quarter, Kumtor's mill processed a blend of the higher grade ore mined during the quarter and the stockpiled ore mined from cut-back 16 during the fourth quarter of 2014. Approximately 1.2 million tonnes were processed in the quarter, which was 21% lower than the comparative quarter of 2014 due the scheduled mill shutdown to replace the ring gear and the SAG and Ball Mill liners in the first quarter of 2015. Kumtor's average mill head grade was 5.13 g/t with a recovery of 81.0% in the quarter, compared to 2.65 g/t with a recovery of 76.2% for the same period of 2014.

Operating costs (on a sales basis) ¹ , excluding capitalized stripping, increased 20% to $37.9 million during the first quarter of 2015 predominately due to increased ounces sold which absorbed more higher cost ounces from the stockpiled inventory at the end of 2014.

Mining costs, including capitalized stripping costs, totaled $55.7 million for the first quarter of 2015, which was $8.2 million lower than the comparative quarter of 2014. The decrease reflects lower diesel costs ($3.7 million) due to lower fuel prices (69.4 cents per litre compared to 77.6 cents per liter), lower labour costs ($2.4 million) mainly due to a favourable foreign exchange movement on local salaries and reduced expatriate personnel, and lower blasting costs ($1.3 million) that resulted from implementing an improved wider drill pattern on waste material.

Milling costs of $16.0 million in the first quarter of 2015 compared to $16.4 million in the same period of 2014 reflects lower sodium cyanide costs ($1.0 million) as a result of both lower tonnes milled (1.17 vs 1.48 million tonnes), decreased sodium cyanide prices and lower maintenance costs due to the timing of planned maintenance work. This was partially offset by higher costs for the replacement of mill liners ($1.2 million) which occurred during the scheduled mill shutdown in the first quarter of 2015 (no liner replacements were performed in the first quarter of 2014).

Site support costs of $11.5 million in the first quarter of 2015 compared to $14.2 million in the same period of 2014 reflects lower labour costs ($1.2 million) due to a favourable foreign currency exchange movement with a weakening of the Som against the US dollar and reduced expatriate support staff, and decreased insurance premiums ($0.8 million).

DD&A associated with production increased to $68.8 million in the first quarter of 2015 from $63.5 million in the comparative period of 2014. The increase in DD&A resulted primarily from the increase in ounces sold.

All-in sustaining costs per ounce sold ¹ , which excludes revenue-based tax, for the first quarter of 2015 decreased 40% to $634 compared to $1,058 in the comparative period of 2014. The decrease results primarily from higher ounces sold, lower operating costs, and lower capitalized stripping costs, partially offset by higher spending on sustaining capital ¹ for equipment rebuilds and overhauls.

All-in costs per ounce sold ¹ , which excludes revenue-based tax, for the first quarter of 2015 was $673 compared to $1,077 in the comparative period of 2014, representing a decrease of 38%. The decrease is mainly due to the reduction in all-in sustaining cost, partially offset by an increase in growth capital ¹ spending for the infrastructure relocation at Kumtor.

Capital expenditures in the first quarter of 2015 totaled $86.4 million which includes $12.4 million of sustaining capital ¹ mainly on equipment rebuilds and overhauls, $6.5 million invested in growth capital ¹ mainly on infrastructure relocation and $67.5 million for capitalized stripping ($51.7 million cash). Capital expenditures the comparative quarter of 2014 totaled $98.3 million, consisting of $8.3 million for sustaining capital ¹ , $1.9 million for growth capital ¹ and $88.1 million of capitalized stripping ($62.4 million cash).

Ongoing Technical Matters

As previously noted in the Company's news release of March 20, 2015, the Company filed a NI 43-101 technical report for the Kumtor Mine. The updated technical report describes in detail Kumtor's new life-of-mine plan (LOM) based on Kumtor's mineral reserve estimates as at December 31, 2014. The new LOM takes into account, among other things, the impact of the buttress constructed at the edge of the Kumtor open pit, updated geotechnical design that requires lower pit slope angles in some sectors of the Kumtor open pit and the cancellation of certain capital spending that was planned and described in the December 2012 technical report on the Kumtor Project.

¹ Non-GAAP measure, see discussion under "Non-GAAP Measures".

1. Adjusted operating costs, all-in sustaining costs, all-in costs and all-in costs - including taxes (in $ millions and per ounce sold), as well as average realized gold price per ounce sold, cost of sales per ounce sold and capital expenditures (sustaining and growth) are non-GAAP measures and are discussed under "Non-GAAP Measures".
2. Operating costs (on a sales basis) is comprised of mine operating costs such as mining, processing, regional office administration, royalties and production taxes, but excludes reclamation costs and depreciation, depletion and amortization.

At the Boroo mine, located in Mongolia, gold production in the first quarter of 2015 was 6,411 ounces as compared to 13,736 ounces of gold in the same period of 2014. The lower gold production reflects no mill processing activities in the first quarter of 2015, as Boroo milled the last of its stockpiled ore in December 2014. As a result of the mill shutdown, Boroo recovered 3,595 ounces from the cleaning of the gold circuit. In addition, fewer ounces were poured from the heap leach operation as a result of transitioning to 100% secondary leaching from August of 2014, compared to primary leaching in the comparative quarter of 2014.

Operating costs (on a sales basis) ¹ decreased by $5.3 million to $5.5 million in the first quarter of 2015, as a result of lower activity at the project with no milling operations and the continued secondary leaching in 2015.

All-in sustaining costs per ounce sold ¹ and all-in costs per ounce sold ¹ which excludes income tax, increased in the first quarter of 2015 to $1,501 from $1,001 in the same quarter of 2014. The increase is primarily due to a 52% decrease in ounces sold, partially offset by lower adjusted operating costs and lower sustaining capital ¹ spending. During the quarter Boroo was cash positive.

¹ Non-GAAP measure, see discussion under "Non-GAAP Measures".

Although the Gatsuurt Project was designated as a mineral deposit of strategic importance by the Mongolian Parliament, the project remained under care and maintenance in the first quarter of 2015. The Company now expects that Parliament will consider a new proposal for the level of state ownership in the project or the rate of the special royalty during its spring session which began in early April. The terms of such participation are subject to continued discussions between the Company and the Mongolian Government. Further development of the project will be subject to finalizing a deposit development agreement, and receiving all required approvals and regulatory commissioning from the Mongolian Government. See "Other Corporate Developments - Mongolia".

Non-GAAP Measures

This news release contains the following non-GAAP financial measures: all-in sustaining costs, all-in costs, all-in costs including taxes and adjusted operating costs in dollars (millions) and per ounce sold, as well as cost of sales per ounce sold, capital expenditures (sustaining), capital expenditures (growth) and average realized gold price. These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers, even as compared to other issuers who may also be applying the World Gold Council ("WGC") guidelines, which can be found at http://www.gold.org .

Management believes that the use of these non-GAAP measures will assist analysts, investors and other stakeholders of the Company in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance, our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis, and for planning and forecasting of future periods. However, the measures do have limitations as analytical tools as they may be influenced by the point in the life cycle of a specific mine and the level of additional exploration or expenditures a company has to make to fully develop its properties. Accordingly, these non-GAAP measures should not be considered in isolation, or as a substitute for, analysis of our results as reported under GAAP.

Definitions

The following is a description of the non-GAAP measures used in this news release. The definitions are consistent with the WGC's Guidance Note on these non-GAAP measures:

• Operating costs (on a sales basis) include mine operating costs such as mining, processing, site support, royalties and operating taxes (except at Kumtor where revenue-based taxes are excluded), but exclude depreciation, depletion and amortization (DD&A), reclamation costs, financing costs, capital development and exploration.
• Adjusted operating costs per ounce sold include operating costs (on a sales basis), regional office administration, community costs related to current operations, refining fees and by-product credits.
• All-in sustaining costs per ounce sold include adjusted operating costs, the cash component of capitalized stripping costs, regional office administration costs, accretion expenses, and sustaining capital. The measure incorporates costs related to sustaining production.
• All-in costs per ounce sold include all-in sustaining costs and additional costs for growth capital, corporate general and administrative expenses, global exploration expenses and social development costs not related to current operations.
• All-in cost per ounce sold exclude the following:
• Working capital (except for adjustments to inventory on a sales basis).
• All financing charges (including capitalized interest).
• Costs related to business combinations, asset acquisitions and asset disposals.
• Other non-operating income and expenses, including interest income, bank charges, and foreign exchange gains and losses.
• All-in costs including taxes per ounce sold measure includes revenue-based taxes at Kumtor and income taxes at Boroo.

• Capital expenditures (Sustaining) is a capital expenditure necessary to maintain existing levels of production. The sustaining capital expenditures maintain the existing mine fleet, mill and other facilities so that they function at levels consistent from year to year.
• Capital expenditures (Growth) is capital expended to expand the business or operations by increasing productive capacity beyond current levels of performance.
• Average realized gold price is calculated by dividing revenue derived from gold sales by the number of ounces sold.

Adjusted Operating Cost, All-in Sustaining Costs and All-in Costs (including and excluding taxes) are non-GAAP measures and can be reconciled as follows:

(1) By operation

Kumtor

(1) Results may not add due to rounding

Boroo

(1) Results may not add due to rounding

2) Consolidated

Centerra

1. Results may not add due to rounding
2. Includes both expensed and capitalized spending by Centerra for the Trans-Canada Property.

Sustaining capital, growth capital and capitalized stripping presented in the All-in measures can be reconciled as follows:

⁽¹⁾ As reported in the Company's Consolidated Statement of Cash Flows as "Investing Activities -- Additions to property, plant & equipment".

Exploration Update

Turkey
Öksüt Project

A Diamond drilling campaign of 5,500 metres has been planned for 2015 and drilling will commence as soon as permits are received from the General Directorate of Mining Affairs (MIGEM). At least three drill holes will be positioned along the northern margin of the Güneytepe Deposit with the objective of expanding the currently defined measured plus indicated resource of 128,000 contained ounces of gold further to the north by 30 to 50 metres. The remainder of the planned drill holes have been designed to test satellite targets outlined on the mining concession west and south of the Keltepe and Güneytepe resources. These targets were identified in previous years through alteration mapping, soil geochemistry surveys and induced polarization surveying.

Portugal
Lagares Gold Property

Centerra-funded exploration programs were initiated during the quarter on the Lagares gold property located 30 kilometres east of the city of Porto in northern Portugal. Centerra holds an option to earn a 70% interest in the four-concession property from Medgold Resources Corp. During the quarter, soil geochemistry survey grids were completed at the northern and southern ends of the two kilometre-long Castromil-Serra da Quinta gold zone which was defined by previous claim-holders with approximately 8,000 metres of drilling (Diamond core and shallow percussion holes). Analytical results of the 434-sample soil survey have outlined two new soil anomalies on the central Lagares concession; coincident gold and arsenic soil anomalies were detected one kilometre north of the Castromil gold prospect and the previously defined Au-As soil anomaly that marks the Serra da Quinta prospect was extended for more than one kilometre to the southeast. In addition to the soil sampling that was done at Lagares, the end of first quarter saw the commencement of Diamond drilling on the property. By the end of March only the first drill hole of 80 metres length had been completed, and assay results are still pending. Approximately 3,000 metres of drilling are planned for the 2015 exploration campaign at Lagares.

Canada
Hardrock Gold Project

In the first quarter, TCP Partnership Corporation, Centerra's 50/50 joint venture partnership with Premier, initiated a 14,000-metre Diamond drilling program at the Hardrock gold project located in the Geraldton-Beardmore greenstone belt approximately 250 kilometres northeast of Thunder Bay, Ontario. The drilling campaign comprises 46 drill-holes which have been designed to analyze specific portions of Premier's resource block model which was used by Premier in its estimation of measured, indicated and inferred resources for the Hardrock Deposit. At the end of quarter, a total of 4,836 metres of in-fill drilling had been completed at the Hardrock Project and drilling continues in the second quarter of 2015.

Qualified Person & QA/QC

All production information and other scientific and technical information in this news release were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") and were prepared, reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Gordon Reid, Professional Engineer and Centerra's Vice-President and Chief Operating Officer, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs.

Other Corporate Developments

The following is a summary of corporate developments with respect to matters affecting the Company and its subsidiaries. For a more complete discussion of these matters, see the Company's most recently filed Annual Information Form (the "2014 Annual Information Form") available on SEDAR at www.sedar.com.

Readers are cautioned that there are a number of legal and regulatory matters that are currently affecting the Company and that the following brief description is only a summary of the current status of such matters. For more complete background and information on these matters, including with respect to the Kyrgyz Parliamentary and State Commissions and their reports, Kyrgyz Parliamentary resolutions, discussions with the Government of the Kyrgyz Republic in relation to the Heads of Agreement relating to the proposed restructuring of the Kumtor Project, various environmental and other claims made by Kyrgyz state agencies and the draft Kyrgyz Law on Denunciation of the Agreement on New Terms for the Kumtor Project, please refer to the description contained in the 2014 Annual Information Form.

Kyrgyz Republic

Negotiations between Kyrgyz Republic and Centerra

Following discussions with representatives of the Kyrgyz Government in the second half of 2013, Centerra announced on December 24, 2013 that it had entered into a non-binding heads of agreement with the Government of the Kyrgyz Republic in connection with a potential restructuring transaction under which Kyrgyzaltyn would exchange its 32.7% equity interest in Centerra for an interest of equivalent value in a joint venture company that would own the Kumtor Project. The agreement was revised and re-executed on January 18, 2014 (the "HOA"). On February 6, 2014, after its review of the HOA, the Kyrgyz Parliament adopted a resolution which appeared to support the concept of the restructuring described in the HOA but also contains a number of recommendations that were materially inconsistent with the terms of the HOA.

Following discussions throughout 2014 and 2015, Centerra disclosed on April 9, 2015 that it was aware of certain statements made by the Prime Minister of the Kyrgyz Republic at a meeting of the Kyrgyz Republic Parliament and to local media which suggested that: (i) the restructuring of the Kumtor Project as a 50/50 joint venture between Centerra and Kyrgyzaltyn would not be in the interests of the Kyrgyz Republic; (ii) nationalization of the Kumtor mine is not a viable alternative to such a joint venture; and (iii) that the Government of the Kyrgyz Republic, through its interest in Kyrgyzaltyn, may propose changes or additions to the composition of Centerra's Board of Directors. Prime Minister Otorbayev subsequently resigned on April 23, 2015 and Centerra understands that the Parliament approved Mr. Temir Sariyev as the new Prime Minister of the Kyrgyz Republic on April 30, 2015.

The Company continues to be open to discussions with the Kyrgyz Government to resolve all outstanding matters affecting the Kumtor Project. Any proposed resolution would need to be fair to all shareholders of Centerra and to receive all necessary legal and regulatory approvals under the Kyrgyz Republic and Canadian laws. However, Centerra notes that (as discussed in greater detail below), 53,500,340 shares of Centerra held by Kyrgyzaltyn (out of 77,401,766 shares owned by Kyrgyzaltyn) are currently subject to Ontario court orders which place restrictions on Kyrgyzaltyn's ability to transfer, and their ability to exercise its rights as a registered shareholder of Centerra in a manner that is inconsistent with or would undermine the terms of the applicable court orders.

There are no assurances that a resolution to all outstanding Kumtor matters will be concluded at all, or in a manner that is satisfactory to Centerra. The inability to successfully settle all outstanding matters affecting the Kumtor Project could have a material adverse impact on Centerra's cash flows, earnings, results of operations and financial conditions.

Kyrgyz Permitting and Regulatory Matters

In the normal course of operations at Kumtor, KGC prepares annual mine plans and other documents for approval for the Kumtor Project which are considered and approved by, among others, the State Agency for Environmental and Forestry under the Government of the Kyrgyz Republic ("SAEPF") and the State Agency for Geology and Mineral Resources ("SAGMR"). As was previously disclosed, KGC experienced delays in 2014 in obtaining the required approval of the annual mine plan and other permits and approvals due to concerns raised by SAEPF and SAGMR and other regulatory agencies regarding, among other things, the movement of ice at Kumtor. After months of negotiating, Centerra announced on June 2, 2014 that the continuing absence of such approvals and permits created significant uncertainty and risk for Centerra and its employees and that accordingly, Centerra had instructed Kumtor to begin an orderly shutdown of operations if the approvals and permits were not received by June 13, 2014. Fortunately, the approvals and permits were received prior to any shut down being initiated.

Starting in the fourth quarter of 2014, Kumtor submitted to SAGMR and SAEPF for approval its 2015 annual mine plan and its ecological passport (the Ecological Passport). The Ecological Passport requires renewal every five years. Similar to KGC's experience in 2014, KGC initially received correspondence from such agencies declining to review KGC's submissions. In particular, regulatory authorities referenced the 2005 Water Code of the Kyrgyz Republic (Water Code) and its prohibition regarding the movement of ice (glaciers).

Centerra and Kumtor have disputed the interpretation of the Water Code by Kyrgyz regulatory agencies on the basis that the stabilization and non-discrimination provisions contained in the project agreements governing the Kumtor project (the "Kumtor Project Agreements") and the laws of the Kyrgyz Republic which implemented the Kumtor Project Agreements support the view that the Water Code and any new law which could purport to prohibit movement of ice would not apply to the Kumtor operations. Centerra believes that any disagreement in relation to the application of the Water Code to Kumtor would be subject to the international arbitration provisions of the Kumtor Project Agreements.

Centerra has also informed the Kyrgyz Government and regulatory agencies that the Kumtor Project Agreements require relevant Government agencies to be reasonable in relation to their approval of any mining plans submitted for approval; and with respect to permits and approvals, KGC is entitled to maintain, have renewed and receive such licences, consents, permissions and approvals as are from time to time necessary or convenient for the operation of the Kumtor project. In addition, Centerra and KGC have noted that the movement of ice at the Kumtor project has consistently been a feature of the Kumtor project since its commencement and has been discussed in all earlier annual mine plans which were approved by regulatory agencies. Should Kumtor be prevented from continuing its practice of moving ice, the entire December 31, 2014 Mineral Reserves at Kumtor, and Kumtor LOM plan would be at risk, leading to an early closure of the operation.

Centerra was informed that the Government has passed a Government decree on March 12, 2015 instructing the relevant regulatory authorities to review the annual mine plan. Subsequently, we received from SAGMR their two approvals for the 2015 annual mine plan (dealing with subsoil and industrial safety). The other regulatory authority, SAEPF has written to KGC, noting that due to the complexity of the Kumtor project, they will require the full 90 day review period permitted by Kyrgyz law. This 90 day period expires in early June 2015 (the mine plan was re-submitted by KGC in early March at the request of SAEPF). SAEPF has also extended until early June 2015 KGC's permits for emissions into the atmosphere and waste disposal into the tailings pond, which otherwise would have expired on March 31, 2015.

The Company expects to continue discussions with SAEPF to obtain these approvals and permits. However, there can be no assurances that such approvals and permits will be received or that a suspension will not occur in relation to this matter. The inability to successfully resolve this matter could have a material adverse impact on Centerra's future cash flow, earnings, results of operations and financial conditions.

Kumtor Dividend Claim and Japarov Criminal Proceeding

As previously disclosed, the Kyrgyz Republic General Prosecutor's Office ("GPO") filed on May 23, 2014 a civil claim in Kyrgyz court against KGC which sought to unwind a $200 million inter-corporate dividend declared and paid by KGC to Centerra in December 2013. KGC and Centerra believe the dividend complied with the Kumtor Project Agreements and all applicable Kyrgyz laws, and that the payment of the dividend does not have an impact on the valuation which underlies the restructuring contemplated by the HOA. Effective October 10, 2014, the case has been suspended at the request of the GPO until the completion of the criminal proceedings against Mr. Japarov (see below).

The GPO has brought criminal proceedings against Mr. D. Japarov, who was a member of the KGC board of directors (as nominee of Kyrgyzaltyn) in December 2013, when the KGC board of directors approved the declaration and payment of a $200 million inter-corporate dividend to Centerra. Mr. Japarov was also Chairman of the management board of Kyrgyzaltyn at that time. Such court hearings are ongoing and Mr. Japarov remains in custody.

Environmental Claims

As previously disclosed, Kumtor has received very substantial claims from various Kyrgyz Republic state agencies in relation to alleged environmental offences and other matters. In aggregate, these claims amount to approximately $470 million at the then current exchange rates. Such claims continue to be before the Kyrgyz courts. For further detail on such claims, please refer to the Company's 2014 Annual Information Form.

As previously stated, Kumtor believes the claims are exaggerated and without merit. The Kumtor Project has been the subject of systematic audits and investigations over the years by Kyrgyz and international experts, including by an independent internationally recognized expert who carried out a due diligence review of Kumtor's performance on environmental matters at the request of Centerra's Board of Directors. The report of this expert was released in October 2012 and can be found on the Kumtor website at http://www.kumtor.kg/en/ under the "Environment" section. As a result, the Company has not recorded any provisions related to the alleged claims in its financial statements.

Land Use Claim

As previously disclosed on November 11, 2013, the Company received a claim from the Kyrgyz Republic General Prosecutor's Office requesting the Inter-District Court of the Issyk-Kul Province to invalidate the Company's land use certificate and seize certain lands within Kumtor's concession area. Kumtor challenges this claim and the matter is currently before the Kyrgyz courts. For further details of the claim, see the Company's 2014 Annual Information Form.

Management Assessment

There are several important outstanding issues affecting the Kumtor Project, which require consultation and co-operation between the Company and Kyrgyz regulatory authorities. The Company has benefited from a close and constructive dialogue with Kyrgyz authorities during project operations and remains committed to working with them to resolve these issues in accordance with the Kumtor Project Agreements, which provide for all disputes to be resolved by international arbitration, if necessary. However, there are no assurances that the Company will be able to successfully resolve any or all of the outstanding matters affecting the Kumtor Project. There are also no assurances that continued discussions between the Kyrgyz Government and Centerra will result in a mutually acceptable solution regarding the Kumtor Project, that any agreed upon proposal for restructuring would receive the necessary legal and regulatory approvals under Kyrgyz law and/or Canadian law and that the Kyrgyz Republic Government and/or Parliament will not take actions that are inconsistent with the Government's obligations under the Kumtor Project Agreements, including adopting a law "denouncing" or purporting to cancel or invalidate the Kumtor Project Agreements or laws enacted in relation thereto. The inability to successfully resolve all such matters would have a material adverse impact on the Company's future cash flows, earnings, results of operations and financial condition. See "Caution Regarding Forward-looking Information".

Mongolia
Gatsuurt

The Company announced on January 23, 2015 that the Gatsuurt Project, which is located approximately 55 km (by road) from the Company's Boroo mine in Mongolia, has been designated as a mineral deposit of strategic importance by the Mongolian Parliament. This designation allows the Gatsuurt Project to move forward within the application of the Water and Forest Law and also allows Mongolia to acquire either: (i) up to a 34% interest in the project; or (ii) due to recent changes in the Mongolian Minerals Law, a special royalty of up to 5% on the project. The rate of the special royalty has not yet been determined. The terms of such participation are subject to continued discussions between the Company and the Mongolian Government.

The Government has formed working groups for this purpose as well as to review the potential impacts of the Gatsuurt Project on historical and cultural sites in Mongolia. Centerra understands that, on February 17, 2015, the Government's proposal on state ownership of 20% was considered by Parliament but rejected and returned to the Government for review. The Company now expects that Parliament will consider a new proposal for the level of state ownership in or special royalty on the project during its spring session which began in early April.

Further development of the Gatsuurt Project will be subject to, among other things, receiving Parliamentary approval of the Mongolia's state ownership or special royalty as well as all required approvals and regulatory commissioning from the Mongolian Government. There are no assurances that the Company and the Mongolian Government will be able to finalize and agree upon the terms of the Government's involvement in the project, that the Mongolian Parliament will agree upon and approve a level of ownership or special royalty for the Gatsuurt Project, and that applicable approvals and regulatory commissions from the Mongolian Government are received (in a timely fashion or at all). The inability to successfully resolve all such matters would have a material adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.

Corporate
Enforcement Notice by Sistem

In March 2011, a Turkish company, Sistem initiated a claim in an Ontario court which alleged that the shares in Centerra owned by Kyrgyzaltyn are, in fact, beneficially owned by the Kyrgyz Republic. This claim was made as part of court proceedings seeking to enforce in Ontario an arbitration award received by Sistem against the Kyrgyz Republic in the amount of approximately $9 million plus interest. On April 15, 2014, the Ontario Superior Court of Justice found in favour of Sistem, ruling that the shares of Centerra owned by Kyrgyzaltyn could be seized to satisfy the arbitration award. Kyrgyzaltyn appealed this ruling to the Ontario Court of Appeal where it was heard on October 29, 2014 (the "Sistem Appeal"). No decision has been issued as of the date of this disclosure.

Pursuant to a separate order issued by the Ontario Superior Court of Justice, Centerra was ordered to hold in trust (for the credit of the Sistem court proceedings) dividends otherwise payable to Kyrgyzaltyn in the amount of approximately Cdn$11.3 million. As a result of an agreement reached between Sistem and Kyrgyzaltyn on September 8, 2014, the Ontario Court of Appeal issued an order requiring Centerra to release to Kyrgyzaltyn all of the amounts held in trust for the Sistem proceedings. However prior to receiving instructions from Kyrgyzaltyn with respect to the transfer of the funds, a subsequent order of the Ontario Superior Court of Justice on October 10, 2014 (as later amended) in relation to the Stans Application (as defined below) was made that restricts Centerra from paying such monies to Kyrgyzaltyn. Centerra has advised Kyrgyzaltyn that it will continue holding such funds in trust in accordance with this court order. See "Enforcement Notice by Stans" below.

Enforcement Notice by Stans

On October 10, 2014, Centerra was served with a temporary order from the Ontario Superior Court of Justice in favour of Stans Energy Corp. which prohibits Kyrgyzaltyn from, among other things: (i) selling, disposing or exchanging 47,000,000 shares (the "Stans Frozen Shares") of the 77,401,766 shares it holds in the capital of Centerra; (ii) obtaining share certificates in respect of such shares; or (iii) exercising its rights as a registered shareholder of Centerra in a manner that is inconsistent with or would undermine the terms of the Stans Order. The order also prohibits Centerra from, among other things, registering the transfer of the Stans Frozen Shares, and requires Centerra to hold in trust for the proceeding under the Stans Application (as defined below) any amounts payable to Kyrgyzaltyn in respect of dividends or distributions that Centerra may declare or pay in the future.

Centerra was also served by Stans with a notice of application to the Ontario Superior Court of Justice (the "Stans Application") which seeks to enforce a June 30, 2014 arbitral award (the "Stans Arbitration Award") obtained by Stans against the Kyrgyz Republic from the arbitration tribunal of the Moscow Chamber of Commerce in the amount of approximately $118 million. The Stans Application seeks, among other things, an order declaring that the Kyrgyz Republic has a beneficial interest in all of the shares in Centerra held by Kyrgyzaltyn and that monies, interest, dividends and other rights of Kyrgyzaltyn in the stock of Centerra may be seized in order to satisfy the Stans Arbitration Award. The notice of application was originally served in October 2014, and was recently re-filed in January 2015 with new affidavits. We understand that the Kyrgyz Republic has appealed the Stans Arbitration Award to Russian courts in Moscow and hearings are proceeding. The Kyrgyz Republic is arguing that the Moscow Chamber of Commerce lacked the jurisdiction to hear the matter and accordingly, the arbitration award must be revoked.

As noted above, in a separate proceeding Kyrgyzaltyn has appealed to the Ontario Court of Appeal the decision of the Ontario Superior Court of Justice in the Sistem matter, which found that the Kyrgyz Republic had a beneficial interest in the Centerra shares held by Kyrgyzaltyn. There is no decision as of the date of this disclosure.

If the Kyrgyz Republic does not succeed in overturning the Stans Arbitration Award in the Russian courts and the Ontario Court of Appeal rules that the Kyrgyz Republic has a beneficial interest in the Centerra shares held by Kyrgyzaltyn, Stans would likely succeed in enforcing the Stans Arbitration Award in Ontario and in seizing a sufficient number of the Centerra shares held by Kyrgyzaltyn to satisfy the Stans Arbitration Award. If Stans ultimately seizes such shares, Kyrgyzaltyn would no longer hold a sufficient number of Centerra shares to contribute to the HOA restructuring transaction such that it could receive 50% of a new Kumtor joint venture. In such circumstances, the Company believes that the restructuring of the Kumtor Project in accordance with the HOA would be impossible.

Enforcement Notice by Belokon

On February 25, 2015, Centerra was served with a temporary order, which was subsequently extended on March 5, 2015 (the "Belokon Order"), from the Ontario Superior Court of Justice in favour of Mr. Valeri Belokon ("Belokon") which prohibits Kyrgyzaltyn from, among other things: (i) selling, disposing or exchanging 6,500,340 shares (the "Belokon Frozen Shares") of the 77,401,766 shares it holds in the capital of Centerra; (ii) obtaining share certificates in respect of such shares; or (iii) exercising its rights as a registered shareholder of Centerra in a manner that is inconsistent with or would undermine the terms of the Belokon Order. The order also prohibits Centerra from, among other things, registering the transfer of the Belokon Frozen Shares, and requires Centerra to hold in trust for the proceeding under the Belokon Application (as defined below) any amounts payable to Kyrgyzaltyn in respect of dividends or distributions that Centerra is currently holding in trust or may declare or pay in the future.

Centerra was also served by Belokon with a notice of application to the Ontario Superior Court of Justice (the "Belokon Application") which seeks to enforce an October 24, 2014 arbitral award (the "Belokon Arbitration Award") obtained by Belokon against the Kyrgyz Republic from an ad hoc Arbitration Tribunal established in accordance with the Agreement between the Government of the Republic of Latvia and the Government of the Kyrgyz Republic for the Promotion and Protection of Investments in the amount of approximately $16.5 million.

The Belokon Application seeks, among other things, an order declaring that the Kyrgyz Republic has a beneficial interest in all of the shares in Centerra held by Kyrgyzaltyn and that monies, interest, dividends and other rights of Kyrgyzaltyn in the stock of Centerra may be seized in order to satisfy the Belokon Arbitration Award.

2015 Outlook

Kumtor's forecast 2015 production and unit costs are provided on a 100% basis and the forecast does not make any assumptions regarding possible changes in the structure and management of the Kumtor Project, including without limitation the level of ownership resulting from ongoing discussions with the Government of the Kyrgyz Republic and Kyrgyzaltyn, Centerra's largest shareholder. See "Material Assumption and Risks" for other material assumptions or factors used to forecast production and costs for 2015.

Centerra's 2015 guidance for production, capital spending, exploration, Öksüt Project development costs, corporate administration, community costs and DD&A is unchanged from the previous guidance disclosed in the Company's news release of January 15, 2015.

Centerra's 2015 forecast for unit costs per ounce sold has been revised to reflect new cost assumptions in connection with the Trans-Canada partnership:

2015 All-in Unit Costs

Centerra's forecast for 2015 all-in sustaining costs per ounce sold¹ is unchanged from the previous guidance. The guidance for all-in costs per ounce sold¹ including taxes has been revised to reflect a higher gold price assumption and new costs in connection with the Trans-Canada partnership:

¹ Non-GAAP measure, see discussion under "Non-GAAP Measures".

1. Adjusted operating costs per ounce sold, all-in sustaining costs per ounce sold, all-in costs per ounce sold, all-in costs (including taxes) per ounce sold, as well as capital expenditures (sustaining and growth) are non-GAAP measures and are discussed under "Non-GAAP Measures".
2. Other costs per ounce sold include costs to place the Boroo mill on care and maintenance, global exploration expenses, business development expense and project development costs not related to current operations.
3. Includes revenue-based tax that reflects a forecast gold price assumption of $1,200 per ounce sold.
4. At the Boroo operation, all forecast production and sales are a result of secondary leaching and mill cleanup.
5. All-in costs include both expensed and capitalized spending by Centerra for the Trans-Canada Property.

2015 Trans-Canada Property

Centerra acquired a 50% interest in the Trans-Canada Property from Premier on March 9, 2015. In partnership with Premier, Centerra has planned expenditures in 2015 of approximately $20.3 million. The expenditures include technical studies, environmental and social impact assessments, project support, securing certain properties for future project development, and exploration, in-fill and condemnation drilling. The feasibility study is expected to be completed in late 2015 or early 2016.

Centerra has agreed to fund exploration work and project development work including completion of the feasibility study (via capital contributions) to the partnership in the aggregate amount of C$185 million, which obligation is subject to certain feasibility study results and project advancement criteria. The planned spending for 2015 will be fully funded by Centerra with 50% of spending accounted for as pre-development project spending and expensed through Centerra's income statement and the remaining 50% of spending accounted for as an acquisition cost of the Trans-Canada Property capitalized on Centerra's balance sheet.

Sensitivities

Centerra's revenues, earnings and cash flows for the remaining nine months of 2015 are sensitive to changes in certain variables. The Company has estimated the impact of any such changes on revenues, net earnings and cash from operations.

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 the remaining nine months of 2015 include the following:

• a gold price of $1,200 per ounce (from $1,175 per ounce in the prior guidance),
• exchange rates:
• $1USD:$1.25 CAD
• $1USD:60.0 Kyrgyz som
• $1USD:1,900 Mongolian tugriks
• $1USD:0.90 Euro
• diesel fuel price assumption (unchanged):
• $0.70/litre at Kumtor
• $1.10/litre at Boroo

The assumed diesel price of $0.70/litre at Kumtor assumes that no Russian export duty will be paid on the fuel exports from Russia to the Kyrgyz Republic. Diesel fuel is sourced from separate Russian suppliers for both sites and only loosely correlates with world oil prices. The diesel fuel price assumptions were made when the price of oil was approximately $77 per barrel.

Other material assumptions were used in forecasting production and costs for 2015. These material assumptions include the following:

• That current discussions between the Government of the Kyrgyz Republic and Centerra regarding the resolution of all outstanding matters affecting the Kumtor mine is satisfactory to Centerra, fair to all of Centerra's shareholders, and that any such resolution will receive all necessary legal and regulatory approvals under Kyrgyz law and/or Canadian law.
• All mine plans and related permits and authorizations at Kumtor receive timely approval from all relevant governmental agencies.
• The buttress constructed at the bottom of the Davidov glacier continues to function as planned.
• The pit walls at Kumtor remain stable.
• The new Resource Block Model for the Kumtor central pit reconciles as expected against production.
• Any recurrence of political or civil unrest in the Kyrgyz Republic will not impact operations, including movement of people, supplies and gold shipments to and from the Kumtor mine and/or power to the mine site.
• Any actions taken by the Kyrgyz Republic Parliament and Government do not have a material impact on operations or financial results. This includes any action being taken by the Parliament or Government to cancel the Kumtor Project Agreements, or taking any actions which are not consistent with the rights of Centerra and Kumtor Gold Company (KGC) under the Kumtor Project Agreements.
• The previously disclosed environmental claims received from the Kyrgyz regulatory authorities in the aggregate amount of approximately $470 million (at the then current exchange rates) and the claims of the Kyrgyz Republic's General Prosecutor's Office purporting to invalidate land use rights and/or seize land at Kumtor and to unwind the $200 million inter-company dividend declared and paid by KGC to Centerra in December 2013, and any further claims, whether alleging environmental allegations or otherwise, are resolved without material impact on Centerra's operations or financial results.
• The movement in the Central Valley Waste Dump at Kumtor, referred to in the 2013 Annual Information Form, does not accelerate and will be managed to ensure continued safe operations, without impact to gold production, including the successful demolition of buildings and relocation of certain other infrastructure as planned.
• Grades and recoveries at Kumtor will remain consistent with the 2015 production plan to achieve the forecast gold production.
• The Company is able to manage the risks associated with the increased height of the pit walls at Kumtor.
• The dewatering program at Kumtor continues to produce the expected results and the water management system works as planned.
• The Kumtor mill continues to operate as expected.
• The "strategic deposit" designation of the Gatsuurt deposit will not materially change the capital forecasts for 2015.
• Special royalty, if approved, will not materially affect the business model for developing Gatsuurt.
• Prices of key consumables, costs of power and water usage fees are not significantly higher than prices assumed in planning.
• No unplanned delays in or interruption of scheduled production from our mines, including due to civil unrest, natural phenomena, regulatory or political disputes, equipment breakdown or other developmental and operational risks.
• All necessary permits, licenses and approvals are received in a timely manner.

The Company cannot give any assurances in this regard.

Production, cost and capital forecasts for 2015 are forward-looking information and are based on key assumptions and subject to material risk factors that could cause actual results to differ materially and which are discussed herein under the headings "Material Assumptions & Risks" and "Cautionary Note Regarding Forward-Looking Information" in this news release and under the heading "Risk Factors" in the Company's 2014 MD&A and in the Company's Annual Information Form for the year ended December 31, 2014.

To view the Management's Discussion and Analysis and the Financial Statements and Notes for the three months-ended March 31, 2015, please visit the following link: http://media3.marketwire.com/docs/CG2015MDAFS.pdf.

The Unaudited Interim Consolidated Financial Statements and Notes for the three-months ended March 31, 2015 and Management's Discussion and Analysis for the three-months ended March 31, 2015 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.

Caution Regarding Forward-Looking Information

Information contained in this news release which are not statements of historical facts, and the documents incorporated by reference herein, 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, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward- looking information. These forward-looking statements relate to, among other things: the successful resolution of outstanding matters in the Kyrgyz Republic to the benefit of all shareholders; the potential effects of the Stans Order and the Belokon Order on any proposed resolution of outstanding Kumtor matters; the Company's intentions to continue working with SAEPF to obtain the necessary approvals and permits for the operation of the Kumtor mine; the Company's plans in 2015 for exploration and expenditures for the Trans-Canada partnership with Premier; the timing and outcome of additional geotechnical drilling at Kumtor to validate recommended pit slope angles at Kumtor; and the successful resolution of other claims affecting the Kumtor Project, including those commenced by the Kyrgyz Republic GPO and environmental regulatory authorities.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject 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 information. Factors that could cause actual results or events to differ materially from current expectations include, among other things: (A) Strategic, legal, planning and other risks, including: political risks associated with the Company's operations in the Kyrgyz Republic, Mongolia and Turkey; resource nationalism; the impact of changes in, or to the more aggressive enforcement of, laws, regulations and government practices in the jurisdictions in which the Company operates including any unjustified civil or criminal action against the Company, its affiliates or its current or former employees; the impact of any actions taken by the Kyrgyz Republic Government and Parliament relating to the Kumtor Project Agreements which are inconsistent with the rights of Centerra and KGC under the Kumtor Project 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 Republic GPO; the risks related to other outstanding litigation affecting the Company's operations in the Kyrgyz Republic and elsewhere; the impact of the delay by relevant government agencies to provide required approvals and permits, including the delay currently being experienced at the Kumtor Project over the Kumtor 2015 life of mine and ecological passport; the rights of the Mongolian Government to take an interest in the Gatsuurt Project as a result of the deposit being declared a strategic deposit, and the terms of any such participation, or to take a special royalty rate which has yet to be defined; the impact of changes to, the increased enforcement of, environmental laws and regulations relating to the Company's operations; the impact of any sanctions imposed by Canada, the United States or other jurisdictions against various Russian individuals and entities; the ability of the Company to negotiate a successful deposit development agreement for Gatsuurt; potential defects of title in the Company's properties that are not known as of the date hereof; the inability of the Company and its subsidiaries of being unable to enforce its legal rights in certain circumstances; the presence of a significant shareholder that is a state-owned company of the Kyrgyz Republic; risks related to anti-corruption legislation; risks related to the concentration of assets in Central Asia; Centerra's future exploration and development activities not being successful; Centerra not being able to replace mineral reserves; difficulties with Centerra's joint venture partners; and aboriginal claims and consultative issues relating to the Company's 50% interest in the Trans-Canada Property; (B) risks relating to financial matters, including: sensitivity of the Company's business to the volatility of gold prices, the imprecision of the Company's mineral reserves and resources estimates and the assumptions they rely on, the accuracy of the Company's production and cost estimates, the impact of restrictive covenants in the Company's revolving credit facility which may, among other things, restrict the Company from pursuing certain business activities, the Company's ability to obtain future financing, the impact of global financial conditions, the impact of currency fluctuations, the effect of market conditions on the Company's short-term investments, the Company's ability to make payments including any payments of principal and interest on the Company's debt facilities depends on the cash flow of its subsidiaries; and (C) risks related to operational matters and geotechnical issues, including: movement of the Davidov Glacier and the waste and ice movement at the Kumtor Project and the Company's continued ability to successfully manage such matters, including the continued performance of the buttress; the occurrence of further ground movements at the Kumtor Project, the success of the Company's future exploration and development activities, including the financial and political risks inherent in carrying out exploration activities; inherent risks associated with the use of sodium cyanide in the mining operations; the adequacy of the Company's insurance to mitigate operational risks; mechanical breakdowns; the Company's ability to obtain the necessary permits and authorizations to (among other things) raise the tailings dam at the Kumtor Project to the required height; the Company's ability to replace its mineral reserves; the occurrence of any labour unrest or disturbance and the ability of the Company to successfully re-negotiate collective agreements when required; the risk that Centerra's workforce may be exposed to widespread epidemic; seismic activity in the vicinity of the Company's operations in the Kyrgyz Republic and Mongolia; long lead times required for equipment and supplies given the remote location of some of the Company's operating properties; reliance on a limited number of suppliers for certain consumables, equipment and components; illegal mining on the Company's Mongolian properties; the Company's ability to accurately predict decommissioning and reclamation costs; the Company's ability to attract and retain qualified personnel; competition for mineral acquisition opportunities; and risks associated with the conduct of joint ventures/partnerships, including the Trans-Canada partnership. See "Risk Factors" in the Company's 2014 Annual Information Form available on SEDAR at www.sedar.com.

Furthermore, market price fluctuations in gold, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and may ultimately result in a restatement of reserves. The extent to which resources may ultimately be reclassified as proven or probable reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors which may change over time always influence the evaluation of reserves or resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable reserves.

Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Measured and indicated resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration.

There can be no assurances that forward-looking information 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 results, 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 carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward looking information. Forward-looking information is as of April 30, 2015. Centerra assumes 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.

About Centerra

Centerra Gold Inc. is a North-American based gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, Canada and other 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 based in Toronto, Ontario, Canada.

Additional information on Centerra is available on the Company's website at www.centerragold.com and at SEDAR at www.sedar.com.

Conference Call

Centerra invites you to join its 2015 first quarter conference call on Friday, May 1, 2015 at 11:00AM Eastern Time. The call is open to all investors and the media. To join the call, please dial Toll-Free in North America (800) 763-1505 or International callers dial +1 (416) 981-9007. Alternatively, an audio feed web cast will be broadcast live by Thomson Reuters and can be accessed at Centerra Gold's website at www.centerragold.com. A recording of the call will be available on www.centerragold.com shortly after the call and via telephone until midnight on Friday, May 8, 2015 by calling (416) 626-4100 or (800) 558-5253 and using passcode 21765632.

Additional information on Centerra is available on the Company's website at www.centerragold.com and at SEDAR at www.sedar.com.

Attachment Available: http://www.marketwire.com/library/MwGo/2015/4/30/11G040092/14-Q1-2015-NR-FINAL-1169477822811.pdf