Centerra Gold Reports First Quarter Results

All figures are in United States dollars. All production figures reflect payable metal quantities and are on a 100%-basis, unless otherwise stated. For references denoted with NG, refer to the “Non-GAAP and Other Financial Measures” disclosure at the end of this news release for a description of these measures.

Toronto, Canada, May 15, 2023: Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG and NYSE: CGAU) today reported its first quarter 2023 results.

Significant financial and operating results of the first quarter ended March 31, 2023 included:

• Net loss for the quarter of $73.5 million, or $0.34 per common share, including (net of tax): a non-cash reclamation expense at the care and maintenance sites of $15.6 million, or $0.07 per common share, exploration and evaluation costs at the Goldfield project of $11.7 million, or $0.06 per common share, and stand-by cash costs at the Öksüt Mine of $7.8 million, or $0.04 per common share. Mining costs at the Öksüt Mine were expensed in the period due to the focus on waste stripping activities with limited mining, crushing and stacking of ore. Adjusted net loss^NG for the quarter was $52.9 million, or $0.24 per common share.
• Cash used in operating activities and free cash flow deficit^NG for the quarter of $99.8 million and $105.9 million, respectively, were primarily due to working capital requirements at the Molybdenum Business Unit and the suspension of production activities at the Öksüt Mine. Total operating cash flow deficit for the quarter was driven by a $75.8 million increase in working capital. Mount Milligan Mine generated cash from mine operating activities and free cash flow^NG of $27.6 million and $24.6 million, respectively, for the quarter. Cash used in operating activities at the Öksüt Mine was $20.8 million for the quarter. Cash used in operating activities at the Molybdenum Business Unit was $76.6 million for the quarter, primarily due to an increase in working capital, as a result of higher molybdenum prices. This is expected to partially reverse through the remainder of the year if molybdenum prices remain at their current levels.
• Gold production and copper production for the quarter at the Mount Milligan Mine was 33,215 ounces and

13.4 million pounds, respectively. Lower production during the quarter was driven by lower plant throughput primarily due to a planned mill maintenance shutdown as well as material handling issues during winter months. Additionally, sequencing of the mining phases during the quarter resulted in lower than expected ore grades and differences in the ore-waste transition zone which also impacted feed grades and metal recoveries. Due to mining activities remaining at expected production rates for the quarter, the Company continues to be on track to access the higher grade copper and gold from Phase 7 and Phase 9 in the second half of the year but given lower than planned production during the first quarter, the Company expects 2023 gold production to be near the low end of guidance. Copper production for the year is expected to be at the mid-point of guidance.

• The regulatory review of Öksüt Mine’s amended Environmental Impact Assessment (“EIA”) remains on track. The Company completed its technical review meeting with local authorities at the end of March and posted its EIA for public comment in late April, with no significant comments received. With all review steps now completed, the EIA has been submitted for final ministry approval.
• The Company’s mercury abatement retrofit to the Öksüt Mine’s ADR plant was completed. The system was tested in March 2023 under the supervision of the Turkish Ministry of Environment Urbanization and Climate Change. Subject to receipt of the final regulatory approvals and the restart of the ADR plant, the Company will be in a position to begin processing the gold-in-carbon inventory on hand of approximately 100,000 recoverable ounces. The ADR plant has the capacity to produce gold at a rate of approximately 35,000 ounces per month.
• Goldfield Project significantly advanced drilling activities in the first quarter of 2023, with the large portion of drilling costs that were planned for the year incurred during the quarter. The Company remains on track to issue an initial resource estimate by mid year 2023, followed by an updated resource estimate accompanied by a feasibility study.
• New President and CEO Paul Tomory joined the Company effective May 1, 2023.

• Strong balance sheet with a cash and cash equivalents position at the quarter-end of $412.1 million.
• Gold production costs for the quarter of $1,124 per ounce, due to higher allocation of costs to gold from changes in the relative market prices of gold and copper, and mill shutdown activities.
• Copper production costs for the quarter of $2.66 per pound.
• All-in sustaining costs on a by-product basis^NG for the quarter of $1,383 per ounce, due to higher gold production costs at the Mount Milligan Mine.
• Quarterly dividend declared of CAD$0.07 per common share.

Chair of the Board of Directors and CEO Discussion

Michael Parrett, Chair of the Board of Directors stated, “On behalf of the Board and our fellow shareholders I would like to thank Paul Wright for his leadership of Centerra as the Interim President and CEO, since September 2022. We look forward to Paul’s continued insight, input, and contribution on the Board of Directors. I am also pleased to welcome Paul Tomory who assumed the role of President and Chief Executive Officer on May 1, 2023. We are delighted to have him lead Centerra at this significant stage of the Company’s journey.”

Paul Tomory, President and Chief Executive Officer of Centerra stated, “Since starting as President and Chief Executive Officer on May 1, 2023, having spent time with our corporate and sites teams, and having visited the Mount Milligan Mine, I am excited for the future of the Company. Over the weeks and months ahead, I look forward to visiting the Öksüt Mine and our US assets and engaging with many of our shareholders and other stakeholders, with a focus on delivering sustainable value and growth at Centerra.”

Paul Tomory continued, “In the first quarter of 2023, the Company continued to demonstrate that safety remains Centerra’s top priority, with a number of our sites achieving milestones without a lost time or reportable injury. In Turkiye, I’m pleased to announce that we have completed the mercury abatement retrofit to the Öksüt Mine’s ADR plant and that the system has been tested under the supervision of the Turkish ministry. The regulatory review of Öksüt Mine’s amended EIA remains on track; all review steps have been completed and it has been submitted for final ministry approval. Subject to receipt of the final approvals of the EIA and ADR plant, the Company will be well positioned to begin processing the approximately 100,000 recoverable ounces of gold-in-carbon inventory on hand. We will then be able to shift our focus to the additional approximately 200,000 recoverable ounces of gold in the Öksüt Mine’s gold in ore stockpiles and on the heap leach pad.”

Paul Tomory stated,“Pivoting to Centerra’s other operating mine in British Colombia, there were lower levels of copper and gold production at the Mount Milligan Mine in the first quarter due to a combination of the grade profile delivered to the mill from mine sequencing that also impacted lower metal recoveries, a planned mill maintenance shutdown and challenges with material handling during winter months. As a result, the Company now expects gold production to be near the low end of guidance whilst copper production is currently tracking towards the mid-point of guidance. Mine sequencing remains on track to access the higher-grade copper and gold ore in the second half of the year resulting in back-end weighted production.”

Paul Tomory concluded, “Lastly, I’m happy to announce that Lisa Wilkinson has joined the Company as Vice President, Investor Relations & Corporate Communications, and will lead these functions going forward.”

Update on Öksüt Mine Operations

In March 2022, Centerra announced it had temporarily suspended gold doré bar production at the Öksüt Mine due to mercury detected in the gold room at the ADR plant. From the date of suspension of gold room operations through to the end of 2022, the Company built up gold-in-carbon inventory of approximately 100,000 recoverable ounces and 200,000 recoverable ounces of gold in ore stockpiles and on the heap leach pad. For the gold-in-carbon inventory, substantially all the production costs have already been incurred. Once operations resume, the ADR plant is expected to have sufficient production capacity to process up to approximately 35,000 ounces of gold per month.

The Company has completed construction of a mercury abatement system to allow processing of mercury-bearing ores. In February and March 2023, the ADR facility underwent inspection and testing by the Turkish Ministry of Environment, Urbanization and Climate Change (the “Ministry of Environment”) and the Ministry of Labour and Social Security. The Company continues to work with relevant authorities to obtain the required approvals to restart gold room operations at the ADR plant.

Permitting

Following inspection by and several discussions with the Ministry of Environment in 2022, the Company determined that an updated EIA should be prepared and submitted to clarify various production and other capacity limits for the Öksüt Mine and to align the EIA production levels with current operating plans. The updated EIA was submitted in January 2023. The Company completed its technical review meeting with local authorities at the end of March and posted its EIA for public comment in late April, with no significant comments received. With all review steps now completed, the EIA has been submitted for final ministry approval. The Company continues to work with Turkish officials and other stakeholders on the approval of its EIA and other permits that may be required to allow for a timely full restart of all operations.

The Öksüt Mine suspended leaching of ore on the heap leach pad and ceased using activated carbon on site as of late August 2022 though mining, crushing and stacking activities continued in line with existing EIA limits for the remainder of 2022. After building substantial inventories of gold-in-carbon, ore stacked on the heap leach pad and ore stockpiles, crushing and stacking activities were paused during the first quarter of 2023 until the new EIA is received. The Öksüt Mine is currently focusing mining activities on the Phase 5 pit wall pushback to expand the Keltepe pit.

In January 2023, the Öksüt Mine received notice of approval of its operating license extension application for a period of ten years, as well as approval of an enlarged grazing land permit to allow for the expansion of the Keltepe and Güneytepe pits, as planned.

As noted above, Centerra is involved in several permitting processes with Turkish regulatory authorities and notes that a general election in Türkiye on May 14, 2023 could result in administrative delays to such processes. The Company will continue to diligently pursue approvals of an amended EIA and all required permits for the Öksüt Mine.

Conference Call

Centerra invites you to join its 2023 first quarter conference call on Monday, May 15, 2023 at 11:00 AM Eastern Time. The call is open to all investors and the media. To join the call, please dial toll-free in North America 1 (800) 954-0651. International participants may access the call at +1 (416) 620-9188. Presentation slides will be available on Centerra’s website at www.centerragold.com. Alternatively, an audio feed webcast will be broadcast live by Notified and can be accessed live at Centerra’s website at www.centerragold.com. A recording will be available after the call and via telephone until midnight Eastern Time on May 29, 2023 by calling +1 (416) 626-4100 or (800) 558-5253 and using

passcode 22026857.

Non-GAAP and Other Financial Measures

This MD&A contains “specified financial measures” within the meaning of NI 52-112, specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing gold and copper, understanding the economics of gold and copper mining, assessing operating performance, the Company’s ability to generate free cash flow from current operations and on an overall Company basis, and for planning and forecasting of future periods. However, the measures 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 other expenditures a company has to make to fully develop its properties. The specified financial measures used in this MD&A do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council (“WGC”) guidelines. Accordingly, these specified financial measures should not be considered in isolation, or as a substitute for, analysis of the Company’s recognized measures presented in accordance with IFRS.

Definitions

The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures used in this MD&A:

• All-in sustaining costs on a by-product basis per ounce is a non-GAAP ratio calculated as all-in sustaining costs on a by-product basis divided by ounces of gold sold. All-in sustaining costs on a by-product basis is a non- GAAP financial measure calculated as the aggregate of production costs as recorded in the condensed consolidated statements of (loss) earnings, refining and transport costs, the cash component of capitalized stripping and sustaining capital expenditures, lease payments related to sustaining assets, corporate general and administrative expenses, accretion expenses, asset retirement depletion expenses, copper and silver revenue and the associated impact of hedges of by-product sales revenue. When calculating all-in sustaining costs on a by- product basis, all revenue received from the sale of copper from the Mount Milligan Mine, as reduced by the effect of the copper stream, is treated as a reduction of costs incurred. A reconciliation of all-in sustaining costs on a by-product basis to the nearest IFRS measure is set out below. Management uses these measures to monitor the cost management effectiveness of each of its operating mines.
• All-in sustaining costs on a co-product basis per ounce of gold or per pound of copper, is a non-GAAP ratio calculated as all-in sustaining costs on a co-product basis divided by ounces of gold or pounds of copper sold, as applicable. All-in sustaining costs on a co-product basis is a non-GAAP financial measure based on an allocation of production costs between copper and gold based on the conversion of copper production to equivalent ounces of gold. The Company uses a conversion ratio for calculating gold equivalent ounces for its copper sales calculated by multiplying the copper pounds sold by estimated average realized copper price and dividing the resulting figure by estimated average realized gold price. For the first quarter ended March 31, 2023, 423 pounds of copper were equivalent to one ounce of gold. A reconciliation of all-in sustaining costs on a co-product basis to the nearest IFRS measure is set out below. Management uses these measures to monitor the cost management effectiveness of each of its operating mines.
• Sustaining capital expenditures and Non-sustaining capital expenditures are non-GAAP financial measures. Sustaining capital expenditures are defined as those expenditures required to sustain current operations and exclude all expenditures incurred at new operations or major projects at existing operations where these projects will materially benefit the operation. Non-sustaining capital expenditures are primarily costs incurred at ‘new operations’ and costs related to ‘major projects at existing operations’ where these projects will materially benefit the operation. A material benefit to an existing operation is considered to be at least a 10% increase in annual or life of mine production, net present value, or reserves compared to the remaining life of mine of the operation. A reconciliation of sustaining capital expenditures and non-sustaining capital expenditures to the nearest IFRS measures is set out below. Management uses the distinction of the sustaining and non-sustaining capital expenditures as an input into the calculation of all-in sustaining costs per ounce and all-in costs per ounce.
• All-in costs on a by-product basis per ounce is a non-GAAP ratio calculated as all-in costs on a by-product basis divided by ounces sold. All-in costs on a by-product basis is a non-GAAP financial measure which includes all- in sustaining costs on a by-product basis, exploration and study costs, non-sustaining capital expenditures, care and maintenance and other costs. A reconciliation of all-in costs on a by-product basis to the nearest IFRS

measures is set out below. Management uses these measures to monitor the cost management effectiveness of each of its operating mines.

• Adjusted net (loss) earnings is a non-GAAP financial measure calculated by adjusting net (loss) earnings as recorded in the condensed consolidated statements of (loss) earnings for items not associated with ongoing operations. The Company believes that this generally accepted industry measure allows the evaluation of the results of income-generating capabilities and is useful in making comparisons between periods. This measure adjusts for the impact of items not associated with ongoing operations. A reconciliation of adjusted net (loss) earnings to the nearest IFRS measures is set out below. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
• Free cash flow (deficit) is a non-GAAP financial measure calculated as cash provided by operating activities from continuing operations less property, plant and equipment additions. A reconciliation of free cash flow to the nearest IFRS measures is set out below. Management uses this measure to monitor the amount of cash available to reinvest in the Company and allocate for shareholder returns.
• Free cash flow (deficit) from mine operations is a non-GAAP financial measure calculated as cash provided by mine operations less property, plant and equipment additions. A reconciliation of free cash flow from mine operations to the nearest IFRS measures is set out below. Management uses this measure to monitor the degree of self-funding of each of its operating mines and facilities.

Certain unit costs, including all-in sustaining costs on a by-product basis (including and excluding revenue-based taxes) per ounce, are non-GAAP ratios which include as a component certain non-GAAP financial measures including all-in sustaining costs on a by-product basis which can be reconciled as follows:

Adjusted net (loss) earnings is a non-GAAP financial measure and can be reconciled as follows:

⁽¹⁾       Income tax adjustments reflect the impact of a one-time income tax levied by the Turkish government and impact of foreign currency translation on deferred income taxes at the Öksüt Mine.

Free cash flow (deficit) is a non-GAAP financial measure and can be reconciled as follows:

⁽¹⁾       As presented in the Company’s condensed consolidated statements of cash flows.

Sustaining capital expenditures and non-sustaining capital expenditures are non-GAAP measures and can be reconciled as follows:

⁽¹⁾       As presented in the Company’s condensed consolidated financial statements.

⁽²⁾       Includes reclassification of insurance and capital spares from supplies inventory to PP&E.

About Centerra

Centerra Gold Inc. is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Türkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. The Company also owns the Goldfield Project in Nevada, United States, the Kemess Underground Project in British Columbia, Canada, and owns and operates the Molybdenum Business Unit in the United States and Canada. Centerra’s shares trade on the Toronto Stock Exchange (“TSX”) under the symbol CG and on the New York Stock Exchange (“NYSE”) under the symbol CGAU. The Company is based in Toronto, Ontario, Canada.

For more information:

Lisa Wilkinson                                                                      Shae Frosst

Vice President, Investor Relations & Corporate Communications     Manager, Investor Relations

(416) 204-3780                                                                      (416) 204-2159

lisa.wilkinson@centerragold.com                                              shae.frosst@centerragold.com

Additional information on Centerra is available on the Company’s website at www.centerragold.com and at SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.