A total of $6 million has been budgeted in 2004 for exploration of the REN property in 2004.

While geochemical and geophysical surveys have been completed, the host rocks favourable for gold mineralization on the REN property are located at considerable depths. Mineralization cannot be easily detected from the surface by conventional exploration methods except by drilling.

Drilling techniques for deep targets include the use of relatively inexpensive and fast RC drilling to reach close to the target depth and then changing to core drilling to recover core samples through the potential zone of economic interest. Directional drilling is used to precisely place holes and wedging new holes off an original hole allows several closely-spaced intersections of a mineralized zone at depth.

Initial Resource Estimate

An initial mineral resource estimate for the JB Zone has been compiled for Centerra by Resource Modeling Inc. and includes all drill holes completed through July 2003. At a gold cut-off grade of 8.5 grams per tonne, the inferred resource estimate was 1.9 million tonnes grading 14.8 grams per tonne (900,000 ounces) after cutting all assays above 50 grams per tonne to that level.

Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity and 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 and there is no certainty that inferred mineral resources will be upgraded to mineral reserves through continued exploration.

From July 2003 through April 2004, we completed 17 drill holes totaling 13,180 metres, with eight holes exceeding 8.0 grams per tonne over three metres, as illustrated in the map and table below.

JB Zone Resource Area and Drilling Results July 2003 to April 2004

Selected Drill Results (1) July 2003 to April 2004       Hole No. Gold (g/t) Width (m)       44-W1    11.3     19.8      14.2     21.3 51-W3      7.9       3.4      11.0       6.9 54-W1    12.4       3.0 57-W1      9.9       7.3      10.4       3.0 61M      8.0       4.6 63C      9.0       4.6 63-W2      7.9     15.2        7.6       3.0 65C    14.7       3.0 (1) Intercepts exceeding 8 g/t of gold over three metres.

Recent Exploration

A two-phase exploration budget totaling $6 million was initiated in 2004 to expand the existing resources and test the other targets on the property.

The 2004 exploration program included a 28-hole drilling program totalling 17,396 metres which defined the limits of higher-grade mineralization and tested other geological and geophysical targets at REN. The programs other initiatives included metalurgical test work on core samples, installation of two groundwater pumping wells, hydrological test work and baseline data analysis and development of a new resource estimate.

As a result of these initiatives, the JB Zone was extended south and a new mineralized zone - the 69 Zone - was discovered.

In 2005, additional drilling in the 69 Zone and the completion of two additional holes in a high-grade section of the JB Zone, and increasing the higher grade capping level from 40 g/t gold to 70 g/t gold resulted in an increase of about 400,000 ounces of indicated resources. The resource estimates at REN as of the end of 2005 are 1.2 million ounces of indicated resources and about 128,000 ounces of indicted resource.

Drilling programs in 2006 will focus on testing under-explored areas of favourable alteration and mineralization along the Corona Dyke and the East fault.