Molybdenum Business Unit

Langeloth Metallurgical Facility

PENNSYLVANIA, USA

The Langeloth Metallurgical Facility (“Langeloth”), located 40 kilometres west of Pittsburgh, Pennsylvania, is among the largest molybdenum conversion plants in North America, with a long history of producing high-quality products that are sold to the metallurgical and specialty markets. It is a unique strategic asset due to its proximity to North American steel manufacturers.

Langeloth purchases molybdenum concentrate from third parties, refines into, and sells finished molybdenum products. The facility is currently operating at approximately 30% of capacity.

In September 2024 Centerra announced plans to ramp up Langeloth progressively over the next few years to increase production towards its full annual capacity of 40 million pounds by 2028, which aligns with Thompson Creek’s first full year of production. When Thompson Creek begins production, it will provide additional high-grade, high-quality feed to Langeloth, enabling a ramp-up of production towards the facility’s full capacity while improving operational flexibility to meet market demand.

At full capacity, significant synergies and margin improvements that will enhance future cash flow generation and profitability from the US Molybdenum Operations are expected to result from:
(1) ability to leverage fixed costs, related to increased capacity utilization at Langeloth from the current level of approximately one third;
(2) ability to blend the high-quality Thompson Creek concentrate with lower quality third-party concentrates; and
(3) the ability, enabled by the quality of the Thompson Creek concentrate, to produce an increased volume of higher margin final molybdenum products.

Thompson Creek Mine

IDAHO USA

Thompson Creek is a primary, surface molybdenum mine and mill located approximately 48 kilometres southwest of the town of Challis in Idaho’s Custer County.

The mine, which began operations in 1983, has significant existing infrastructure, including a fleet of mobile equipment, a processing facility, and waste and tailings storage facilities with additional available capacity. Molybdenum ore is extracted using conventional open-pit mining methods and processed at the on-site mill (concentrator) to produce concentrate.

The high quality molybdenum disulfide concentrate produced at the mine is further processed into technical grade molybdenum oxide, with the majority of concentrate historically processed at Langeloth. Additionally, a small portion of the concentrate in the form of high performance molybdenum is packaged at the mine and sold directly to customers.

In September 2024 Centerra announced the restart of operations at Thompson Creek, with first production targeted for the second half of 2027.

Technical Report on Thompson Creek

Centerra completed a feasibility study on the restart of mining at Thompson Creek, with the objective of realizing value for the US Molybdenum Operations.

TECHNICAL REPORT

Integrated Highlights – US Molybdenum Operations

Robust integrated economics of Thompson Creek and Langeloth: Strong project economics due to synergies with the high-quality concentrate blend that could be achieved when Thompson Creek is vertically integrated with Langeloth. Once Thompson Creek resumes full production, the US Molybdenum Operations (“US Moly”) are expected to generate sustainable strong annual cash flows.

	US Moly ^( 1 ) (Thompson Creek + Langeloth)	Thompson Creek Only ⁽³⁾	Langeloth Only
NPV _8%	$472M	$185M	$258M
Internal Rate of Return (“IRR”)	22%	15%	n.m.
Additions to PP&E / Non-sustaining capital expenditures ^NG( 2 )	$397M	$397M	–

(1) US Moly includes an additional $29M of unattributed tax synergies.
(2) Additions to Property, Plant, and Equipment (“PP&E”) are the same as Capital Expenditures ^NG.
(3) The economic assessment for Thompson Creek in the feasibility study has been prepared on a stand-alone basis and does not include integration with Langeloth. The economics for integrating Thompson Creek and Langeloth are extrapolated from the Thompson Creek feasibility study.
NOTE: See Assumptions at the end of the news release Centerra Gold Announces Thompson Creek Feasibility Study Results and Strategic Plan for US Molybdenum Operations. “n.m.” stand for not meaningful.

Improved integrated economics compared to the pre-feasibility study (“PFS”) in September 2023: Integrated economics based on the feasibility study (“FS”) have improved as compared to the PFS, specifically the Thompson Creek updated life of mine (“LOM”) plan has an additional 12 million pounds of molybdenum being produced, one year of additional mine life, more concentrate produced in the first four years, and a de-risked capital estimate.

	US Moly: Thompson Creek + Langeloth
	FS ⁽¹⁾	PFS
NPV _8%	$472M	$218M
NPV _5%	$692M	$373M
IRR	22%	16%
LOM	12 years	11 years
Thompson Creek Molybdenum Production	146M lbs	134M lbs
Additions to PP&E / Non-sustaining capital expenditures ^{NG(2 ,3)}	$397M	$350M – $400M

(1) The economics for integrating Thompson Creek and Langeloth are extrapolated from the Thompson Creek FS.
(2) Additions to PP&E are the same as Capital Expenditures ^NG.
(3) Thompson Creek only; Langeloth additions to PP&E are in the range of $3 to $4 million per year and are considering sustaining capital.

Endako Mine

BRITISH COLUMBIA, CAN

The Endako Mine is a primary, surface molybdenum mine located near Fraser Lake, 161 kilometres northwest of Prince George, British Columbia. The mine is operated as a joint venture with Thompson Creek holding a 75% interest and Moon River Capital Ltd. holding a 25% interest.

The Endako Mine is a fully integrated facility that began operations in 1965. It includes a concentrator that processes ore through crushing, grinding, and flotation circuits into molybdenum disulfide concentrate, and a multiple-hearth roasting facility that converts the concentrate into technical grade molybdenum oxide.

The mine and concentrator were placed on care and maintenance in July 2015 due to ongoing weakness in the molybdenum price. We expect to re-evaluate the status of Endako Mine as market conditions warrant.

Resources

Proven & Probable Molybdenum Mineral Reserves
	Proven Resources⁽²⁾			Probable Resources⁽²⁾			Total Proven & Probable Resources
Property	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)
Thompson Creek Mine⁽⁴⁾	44	0.08	75	68	0.06	86	113	0.07	161

Measured & Indicated Molybdenum Mineral Resources
Property	Measured Resources⁽²⁾			Indicated Resources⁽²⁾			Total Measured & Indicated Resources
Property	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)
Thompson Creek Mine⁽⁴⁾	5	0.06	6.6	45	0.06	57	50	0.06	63
Endako⁽⁵⁾	47	0.05	48	122	0.04	118	169	0.04	166
Total	52	0.06	55	167	0.05	175	219	0.05	229

Property	Inferred Resources⁽³⁾
Property	Tonnes (Mt)	Moly Grade (%)	Contained Moly (Mlbs)
Thompson Creek Mine⁽⁴⁾	11	0.07	17
Endako⁽⁵⁾	47	0.04	44
Total	58	0.06	61

(1) Centerra’s equity interests are as follows: Thompson Creek 100%, and Endako 75%. Mineral reserves and resources for these properties are presented on a 100% basis. Numbers may not add up due to rounding.
(2) Mineral resources are in addition to mineral reserves. Mineral resources do not have demonstrated economic viability.
(3) Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the inferred mineral resources will ever be upgraded to a higher category.
(4) As of September 1, 2024.
(5) As of December 31, 2023.