Production and Reserves

The following information is based upon the "NI 43-101 Technical Report, Mount Milligan Mine, North-Central British Columbia" dated March 22, 2017 with an effective date of December 31, 2016 (the "Mt. Milligan Technical Report"). The Mount Milligan Technical Report was prepared for Centerra by Mr. Peter Andrews, P.Eng. and Doug Berthelsen, P.Geo and Mr. Ignacy (Tony) Lipiec, P.Eng. from Amec Foster Wheeler Americas Limited.

The following tables set forth the estimated copper and gold mineral reserves for Mount Milligan as of December 31, 2016:

Proven and Probable Copper and Gold Estimated Mineral Reserves at December 31, 2016(1)

Property Category Tonnes Copper Grade Contained Copper Gold Grade Contained Gold
    (millions) (% Cu) (millions of lbs) (gram per tonne) (millions of oz)
Mount Milligan Proven 256.8 0.187 1,059 0.42 3.50
  Probable 239.4 0.188 911 0.29 2.26
  Proven+Probable 496.2 0.187 2,050 0.36 5.76

(1)The mineral reserves have been estimated at a $6.25/t (C$8.12/t) cut-off value which takes into consideration metallurgical recoveries, concentrate grades, transportation costs, smelter treatment charges and royalty and streaming arrangements in determining economic viability using metal prices of $1,200 per ounce, copper price of $2.95 per pound and an exchange rate of 1USD:1.30CAD.

Royal Gold streaming agreement entitles Royal Gold to 35% and 18.75% of gold and copper sales, respectively, from the Mount Milligan mine. Under the stream arrangement, Royal Gold will pay $435 per ounce of gold delivered and 15% of the spot price per metric tonne of copper delivered.

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