NEWS RELEASE

Centerra Gold Favourably Revises 2016 Guidance and Reports Second Quarter Results

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 condensed consolidated financial statements and notes for the three and six months ended June 30, 2016 and the associated Management's Discussion and Analysis. The condensed interim 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 and six months ended June 30, 2016, please visit the following link: http://media3.marketwire.com/docs/cg726-mdafs.pdf

Toronto, Canada, July 26, 2016: Centerra Gold Inc. (TSX: CG) today reported net earnings of $2.9 million or $0.01 per common share (basic) in the second quarter of 2016, compared to a net earnings of $21.9 million or $0.09 per common share (basic) for the same period in 2015, reflecting the processing and sale in the second quarter of 2016 of lower grade material from stockpiles and ore from the initial benches of cut-back 17 at Kumtor, partially offset by higher average realized gold prices and lower share-based compensation expense.‌‌

For the first six months of 2016, the Company recorded net earnings of $21.0 million or $0.09 per common share (basic), compared to a net earnings of $62.6 million or $0.26 per common share (basic) in the comparative period of 2015, reflecting a 36% decrease in gold ounces sold in the first half of 2016.‌

2016 Second Quarter Highlights‌

• Favourably revised gold production guidance range to 500,000 to 530,000 ounces and lowered all-in sustaining cost1 guidance for Kumtor to $717 - $759 per ounce and Company-wide to $776 - $824 per ounce.

• Received the maximum allowable emissions ("MAE") and the maximum allowable discharge ("MAD") permits at Kumtor for 2016, followed by the environmental expertise (approval) of Kumtor's 2016 mine plan which was received on June 27, 2016. With the issuance of the MAE and MAD permits and the receipt of the environmental expertise, Kumtor has the necessary permits and approvals in place for continuous operations throughout the second half of 2016.

• Produced 97,724 ounces of gold at Kumtor at all-in sustaining costs1 of $768 per ounce sold, gold production was in line with the Company's forecast, while all-in sustaining costs1 (AISC) were lower than forecast.

• Sold 127,909 ounces of gold in the quarter, which includes sales of 33,165 ounces of accumulated gold doré inventory at Kumtor as a result of delays in shipping doré in the first quarter of 2016.

1 Non-GAAP measure, see discussion under "Non-GAAP Measures". All-in sustaining costs exclude revenue-based taxes in the Kyrgyz Republic and income taxes.‌

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• Company-wide all-in sustaining costs per ounce sold1 for the second quarter were $822 due in part to more ounces sold.

• Continued discussions with the Mongolian Government regarding finalizing definitive agreements relating to the Gatsuurt Project. Discussions are expected to continue in the third quarter of 2016.

• Following the quarter-end, the Company announced on July 5, 2016 that it had entered into a definitive arrangement agreement with Thompson Creek Metals Company Inc. ("TCM") to acquire all of the issued and outstanding common shares of TCM and redeem all of TCM's secured and unsecured notes at their call price plus accrued and unpaid interest in accordance with their terms. The total transaction value is approximately $1.1 billion. Centerra has also entered into a binding commitment letter with Royal Gold Inc. ("Royal Gold") whereby, upon the closing of the Arrangement, Royal Gold's 52.25% gold streaming interest at Mount Milligan will be amended to a 35.00% gold stream and 18.75% copper stream. Centerra expects to finance the acquisition through a combination of a new US$325 million senior secured revolver and term loan facility provided by The Bank of Nova Scotia and a recently completed bought deal offering of subscription receipts of C$170 million (total gross proceeds of C$195.5 million including underwriters fully-exercised over- allotment; net proceeds after fees of C$185.7 million). Refer to the Company's July 20, 2016 news release for further details. The acquisition is subject to the approval of TCM shareholders and other applicable regulatory approvals, and satisfaction of other customary conditions. If approved, the transaction is expected to close in the fall of 2016.

Centerra's cash, cash equivalents and short-term investments at the end of the second quarter of 2016 increased $25.6 million to $527.4 million compared to the March 31, 2016. During the second quarter of 2016, the Company drew $24 million from its $150 million corporate revolving credit facility provided by the European Bank for Reconstruction and Development to bring its current principal amount outstanding to $100 million at June 30, 2016. The funds are available to be re-drawn on a semi-annual basis and at the Company's discretion repayment of the loaned funds may be extended until 2021.

CEO Commentary

Scott Perry CEO of Centerra Gold stated, "Kumtor delivered strong gold production in the quarter producing 97,724 ounces which was in line with our expectations and plans. Kumtor's all-in sustaining costs were a competitive $768 per ounce sold1 well below our original guidance for the year. With mining activities at Kumtor slightly ahead of plan and the business improvement opportunities achieved so far this year combined with the favourable diesel fuel costs and currency exchange rate environment, we have decided to favourably revise our guidance for gold production, AISC1 and capital expenditures."

"With our second quarter released today, the Company favourably revised its guidance for the year, narrowing expected gold production to 500,000 - 530,000 ounces, lowered our expected all-in sustaining costs1 by 14% at Kumtor to $738 per ounce sold and 14% Company-wide to $800 per ounce sold, based on the mid-point of the ranges, and lowered our overall expected capital expenditures for the year to $140 million a 48% decrease, excluding capitalized stripping. We are well positioned to achieve our revised gold production and cost guidance for the year, since mining at Kumtor recently intersected the higher grade ore in the SB Zone in cut-back 17."

"Following the quarter end, we announced a transformational $1.1 billion business combination of Centerra and Thompson Creek that diversifies Centerra's operating platform and adds low risk production and cash flow from a very high quality, long-lived asset in Mount Milligan. This business combination is complementary in nature, combining Centerra's robust balance sheet with Thompson Creek's high quality asset base. We expect the transaction to close in the fall of 2016 and will create a geographically and operationally diversified gold producer with a high quality producing platform and a strong fully-funded growth pipeline."

Consolidated Financial and Operating Summary

1. Includes business development of $2.1 million for the three and six months ended June 30, 2016 ($0.8 million and $1.9 million for the three and six months ended June 30, 2015, respectively).

2. As at June 30, 2016, the Company had 242,164,285 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, excluding development projects and all-in costs, excluding development projects (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 $25.6 million and $39.7 million in the three and six months ended June 30, 2016, respectively ($66 million and $133.5 million of capitalized stripping in the three and six months ended June 30, 2015, respectively).

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.

(7) Results may not add due to rounding.

Second Quarter 2016 compared to Second Quarter 2015

• Gold production for the second quarter of 2016 totaled 97,724 ounces compared to 125,088 ounces in the comparative quarter of 2015. The 22% decrease in ounces poured at Kumtor reflects processing of lower grade ore mined from the upper benches of cut-back 17, blended with low-grade stockpiled ore, as well as lower recoveries. In contrast, in the comparative quarter of 2015 Kumtor mined and processed the final benches from cut-back 16 that contained higher grade ore.

• Operating costs (on a sales basis) increased 71% to $61.6 million in the second quarter of 2016 from

  $36.0 million in the same period of 2015 and reflect more ounces sold and higher unit costs in the second quarter of 2016. The increase in costs in the second quarter of 2016 was due to processing ounces at Kumtor from cut-back 17 which is a larger cut-back, requiring more waste to be moved and resulting in higher mining unit costs as compared to cut-back 16. Capitalization of mining costs in cut- back 17 ceased when ore was uncovered in September 2015. In the comparative period of 2015, the mining costs were capitalized as mining was focused on the initial development of cut-back 17 before accessing ore.

• All-in sustaining costs per ounce sold1 for the second quarter decreased to $822 from $937 in the comparative period of 2015. The decrease in the second quarter of 2016 results primarily from more ounces sold and less spending on capitalized stripping.

• All-in costs per ounce sold1, (excluding development project costs), were $894 compared to $986 in the comparative quarter of 2015 and includes all cash costs related to gold production, excluding revenue- based taxes and income tax. The decrease reflects the additional ounces sold, partially offset by additional spending in the second quarter of 2016 for exploration and business development.

• Revenue in the second quarter of 2016 increased 10% to $161.6 million, as a result of 4% more ounces sold (127,909 ounces compared to 123,079 ounces in the second quarter of 2015), as well as a 4% higher average realized gold price1 ($1,240 per ounce compared to $1,192 per ounce in the same quarter of 2015). The build-up of gold bullion inventory at Kumtor at the end of March 2016 of 33,165 ounces was sold in April 2016 once Kyrgyzaltyn completed contractual negotiations with its off-take bank.

• In the second quarter of 2016, 4% more ounces were sold while cost of sales increased by 46% to $118 million compared to the same period of 2015. This reflects higher costs for mining and stripping in both the stockpiled ore and in the lower grade ore mined and processed at Kumtor from cut-back 17 in the second quarter of 2016. The cost of sales in the second quarter of 2015 benefited from the processing of ore from the final benches of cut-back 16 which contained higher grades and higher recoveries, resulting in lower unit operating costs, and reduced waste stripping as compared to cut-back 17 ore that was processed in the second quarter of 2016. Depreciation, depletion and amortization ("DD&A") associated with production was $57.1 million in the second quarter of 2016 as compared to

  $46.5 million in the same quarter of 2015, reflecting more ounces sold in 2016 and higher equipment charges for the longer mining campaign of cut-back 17.

• Regional office administration costs in the second quarter of 2016 decreased by 26% to $3.7 million, reflecting lower labour costs at Kumtor from favourable currency movements of the Kyrgyz Som and lower staffing levels in Mongolia.

• In the second quarter of 2016, pre-development projects costs decreased by $0.9 million to $4.0 million, compared to the same quarter in 2015. The decrease was due to the Company starting to capitalize development costs at the Öksüt Project following the approval of the feasibility study in July 2015, partially offset by higher spending at the Greenstone Property.

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