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    CG   CA1520061021

CENTERRA GOLD INC.

(CG)
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Centerra Gold : September 2021 Investor Presentation

09/03/2021 | 10:12am EST

Mount Milligan

Öksüt

DELIVER ON RESULTS

Investor Presentation September 2021

TSX: CG NYSE: CGAU www.centerragold.com

Caution Regarding Forward-Looking Information

Information contained in this document which are not statements of historical facts, and the documents incorporated by reference herein, may be "forward-looking information" for the purposes of Canadian securities laws and within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: statements regarding 2021 Guidance and the three-year outlook, including outlook on production (including the timing thereof), cost, free cash flow and capital spend in 2021 and production and costs in 2022 and 2023, and the assumptions used in preparing such guidance and outlook, including those discussed under "2021 Material Assumptions"; the impact of the seizure of the Kumtor Mine on the Company's other operations and businesses; the outcome of arbitration and other proceedings initiated by the Company regarding the unlawful seizure by the Kyrgyz Government of the Kumtor Mine in May, 2021, or the outcome or effect of the legacy environmental and tax disputes and criminal investigations relating to the Kumtor Mine or the outcome of any future discussions or negotiations to resolve any or all of the disputes relating to the Kumtor Mine; possible impacts to operations relating to COVID-19; Company's expectations regarding ongoing forest fires in British Columbia, Canada not posing a risk of disruption of, or having an impact on the 2021 production or cost guidance for the Mount Milligan Mine; the Company's expectation regarding having sufficient water at the Mount Milligan Mine in the medium term and for its targeted throughput and its plans for a long term water solution; expectations regarding planned mill maintenance shutdowns at Mount Milligan in the second half of 2021 and the impact of Mount Milligan's continuous improvement projects, including staged flotation reactors; expectations regarding the receipt of a forestry permit for the Öksüt Mine, plans to access the Güneytepe deposit in 2022, the expected construction of the Öksüt Mine's heap leach facility and its ability to accommodate 2022 production and planned heap leach recovery rates at the Öksüt Mine; the Company's expectations of adequate liquidity for 2021; and expectations regarding contingent payments to be received from the sale of Greenstone Gold Mine Partnership.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant technical, political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, among other things: (A) strategic, legal, planning and other risks, including: political risks associated with the Company's operations in Turkey and Canada; resource nationalism including the management of external stakeholder expectations; the impact of changes in, or to the more aggressive enforcement of, laws, regulations and government practices, including unjustified civil or criminal action against the Company, its affiliates or its current or former employees; risks that community activism may result in increased contributory demands or business interruptions; the risks related to outstanding litigation affecting the Company, including the potential failure to negotiate a mutually acceptable outcome of disputes relating to the Kumtor Mine; risks that an arbitrator will reject the Company's claims against the Kyrgyz Republic and/or Kyrgyzaltyn JSC ("Kyrgyzaltyn")or that such claims may not be practically enforceable against the Kyrgyz Republic and/or Kyrgyzaltyn; risks related to the continued imposition by the Kyrgyz Government of external management on KGC or the prolongation of such external management, including risks that the external manager materially damages the Kumtor Mine's operations; the ongoing failure of the Kyrgyz Republic Government to comply with its continuing obligations under the investment agreements governing the Kumtor Mine and not take any expropriation action against the Kumtor Mine; risks that the Kyrgyz Government undertake further unjustified civil or criminal action against the Company, its affiliates or its current or former employees; the impact of constitutional changes in Turkey; the impact of any sanctions imposed by Canada, the United States or other jurisdictions against various Russian and Turkish individuals and entities; potential defects of title in the Company's properties that are not known as of the date hereof; the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances; the presence of a significant shareholder that is a state-owned company of the Kyrgyz Republic; risks related to anti-corruption legislation; risks related to the concentration of assets in Central Asia; Centerra not being able to replace mineral reserves; Indigenous claims and consultative issues relating to the Company's properties which are in proximity to Indigenous communities; and potential risks related to kidnapping or acts of terrorism; (B) risks relating to financial matters, including: sensitivity of the Company's business to the volatility of gold, copper and other mineral prices, the use of provisionally-priced sales contracts for production at the Mount Milligan Mine, reliance on a few key customers for the gold-copper concentrate at the Mount Milligan Mine, use of commodity derivatives, the imprecision of the Company's mineral reserves and resources estimates and the assumptions they rely on, the accuracy of the Company's production and cost estimates, the impact of restrictive covenants in the Company's credit facilities which may, among other things, restrict the Company from pursuing certain business activities or making distributions from its subsidiaries, the Company's ability to obtain future financing, the impact of global financial conditions, the impact of currency fluctuations, the effect of market conditions on the Company's short-term investments, the Company's ability to make payments including any payments of principal and interest on the Company's debt facilities depends on the cash flow of its subsidiaries; and (C) risks related to operational matters and geotechnical issues and the Company's continued ability to successfully manage such matters, including the stability of the pit walls at our operations; the risk of having sufficient water to continue operations at the Mount Milligan Mine and achieve expected mill throughput; the risk of forest fires in BC disrupting or otherwise impacting the Mount Milligan Mine; the success of the Company's future exploration and development activities, including the financial and political risks inherent in carrying out exploration activities; inherent risks associated with the use of sodium cyanide in the mining operations; the adequacy of the Company's insurance to mitigate operational risks; mechanical breakdowns; the Company's ability to replace its mineral reserves; the occurrence of any labour unrest or disturbance and the ability of the Company to successfully re-negotiate collective agreements when required; the risk that Centerra's workforce and operations may be exposed to widespread epidemic including, but not limited to, the COVID-19 pandemic; seismic activity and wildfires in the vicinity of the Company's properties; long lead times required for equipment and supplies given the remote location of some of the Company's operating properties; reliance on a limited number of suppliers for certain consumables, equipment and components; the ability of the Company to address physical and transition risks from climate change and sufficiently manage stakeholder expectations on climate-related issues; the Company's ability to accurately predict decommissioning and reclamation costs; the Company's ability to attract and retain qualified personnel; competition for mineral acquisition opportunities; risks associated with the conduct of joint ventures/partnerships; and the Company's ability to manage its projects effectively and to mitigate the potential lack of availability of contractors, budget and timing overruns and project resources. For additional risk factors, please see section titled "Risks Factors" in the Company's most recently filed Annual Information Form available on SEDAR at www.sedar.comand EDGAR www.sec.gov/edgar.

Furthermore, market price fluctuations in gold and copper, as well as increased capital or production costs or reduced recovery rates may render ore reserves containing lower grades of mineralization uneconomic and may ultimately result in a restatement of reserves. The extent to which resources may ultimately be reclassified as proven or probable reserves is dependent upon the demonstration of their profitable recovery. Economic and technological factors which may change over time always influence the evaluation of reserves or resources. Centerra has not adjusted mineral resource figures in consideration of these risks and, therefore, Centerra can give no assurances that any mineral resource estimate will ultimately be reclassified as proven and probable reserves.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward-looking information. Forward-looking information is as of this presentation. Centerra assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law. Except as otherwise noted herein, Slobodan (Bob) Jankovic, Professional Geoscientist, member of the Association of Professional Geoscientists of Ontario (APGO) and Centerra's Senior Director, Technical Services, has approved the scientific and technical information (other than exploration related information) contained in this presentation and is a Qualified Person within the meaning of NI 43-101. For more information, please refer to the properties technical reports, which are available on SEDAR. All figures are in United States dollars unless otherwise stated.

September 2021

2

Centerra: Built For Success

Corporate Highlights (Continuing Operations Basis)

2021 estimated gold production guidance up to 310koz, copper production up to 80Mlbs, AISC1 of $750 to $800/oz (AIC1 of $900 to $950/oz); 2021 consolidated FCF1 guidance up to $175MM

Sold our 50% interest in Greenstone Gold Mines Partnership for $210MM plus contingent payments2 of up to $75MM

Derecognized assets and liabilities of Kumtor, recorded a loss on change of control of $926.4MM and reclassified Kumtor as a discontinued operation

Q2 2021 gold production 69,854 oz, copper production 19.8Mlbs, at AISC1 of $676/oz (AIC1 $851/oz)

Q2 2021 operating cash flow of $60MM (Mount Milligan $74MM, Öksüt $8MM)

Q2 2021 free cash flow1 of $31MM (Mount Milligan $50MM, Öksüt $2MM)

Debt free Balance Sheet (cash of $883MM) June 30, 2021

Retained Earnings Profile (US$)

2,000

2,000

1,800

1,600

1,600

1,400

Price (US$/oz)

Millions

1,200

1,200

1,000

800

800

US$

Gold

600

400

400

200

0

0

20042005200620072008200920102011201220132014201520162017201820192020 Q2

2021

Retained Earnings

Cumulative Dividends

Gold Price

Mount Milligan FCF1 (US$MM's)

90

80

63

60

50

30

31

0

Q3-2020

Q4-2020

Q1-2021

Q2-2021

Öksüt FCF1 (US$MM's)

Company-Wide Continuing Ops FCF1

(US$MM's)

90

150

124

74

120

60

46

90

68

30

26

60

49

31

30

2

0

0

Q3-2020

Q4-2020

Q1-2021

Q2-2021

Q3-2020

Q4-2020

Q1-2021

Q2-2021

  1. All-insustaining costs per ounce (AISC), All-in costs per ounce (AIC) and free cash flow (FCF) are non-GAAP measures discussed under "Non-GAAP Measures" in the Company's most recent MD&A and News Release August 10, 2021.
  2. Contingent payments assume $1,500 gold price and GGM's Hardrock Project meeting certain construction and/or production milestones see News Releases December 15, 2020 and January 19, 2021.

September 2021

3

Kyrgyz Republic Developments

  • Kumtor Seized by Kyrgyz Government May 15, 2021 Under Pretext of Groundless Corruption, Tax, Environmental and Other Claims
  • KR Government appointed an external manager for Kumtor on May 17, 2021, which is a clear violation of the 2009 Restated Project Agreements, Company No Longer in Control of Kumtor
  • Centerra has initiated international arbitration against KR Government and Kyrgyzaltyn JSC
  • KGC and KOC filed for protection under Chapter 11 to preserve the value of Kumtor for all stakeholders with a worldwide automatic stay of all claims against KGC and KOC
  • Kyrgyzaltyn restricted from transferring or encumbering any common shares of Centerra or exercising any voting rights or dissent rights attached to Centerra common shares
  • Initiated proceedings in Ontario Superior Court against Tengiz Bolturuk (KR Government appointed external manager of Kumtor and former Centerra board member)
  • Company is open to discussion with KR Government but also considering all other legal options

September 2021

4

Centerra: Q2 - 2021 ESG Update

ESG Highlights

Continued focus on safety leadership training/awareness.

Maintained and strengthened our "Social Licence to Operate" at all operations with no interruptions for ~96 months.

No reportable social and environmental incidents in Q2 2021.

Continued work on developing our climate change strategy, aligned with the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), including commencing our inaugural GHG Scope 1 and Scope 2 external assurance.

Established a new DE&I target: Achieve 30% female representation on Centerra's Board of Directors and Officer Group by 2026.

Continued our 15-month Diversity, Equity & Inclusion (DE&I) current state assessment.

Continued progress on Year 2 Responsible Gold Mining

Principles (RGMP) requirements.

September 2021

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Centerra Gold Inc. published this content on 03 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 September 2021 14:11:02 UTC.


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