Centerra Gold and Kyrgyz Government Consider Potential Restructuring Transaction for Kumtor Project

Centerra Gold Inc. today confirmed that as previously disclosed, the Company is in discussions with representatives of the Government of the Kyrgyz Republic in connection with the previously reported State Commission report and Kyrgyz Republic Parliamentary decree (resolution) that recommended negotiations with Centerra to revise the project agreements signed in 2009 that govern the Kumtor Project.

As noted in a press release issued by the Government earlier today, the parties are currently considering a potential restructuring transaction under which Kyrgyzaltyn JSC 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. No further details concerning the potential restructuring transaction are being provided at this time.

Discussions are on-going and any definitive agreement would be subject to compliance with all applicable legal and regulatory requirements and approvals, including any independent valuation and minority shareholder approval requirements. Centerra expects to continue discussions with the Government with the objective of resolving matters through constructive dialogue. However, there can be no assurance that any transaction will be consummated or that the Company will be able to successfully resolve any of the matters currently affecting the Kumtor Project. Further updates and information will only be provided if and when appropriate.