Centerra Gold : Repays $112 Million of Debt in Third Quarter 2017 and Generates $62 Million Free Cash FlowNG

This news release contains forward-looking information that is subject to the risk factors and assumptions set out under "Caution Regarding Forward-looking Information". It should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and the notes thereto for the three and nine month period ended September 30, 2017. The consolidated financial statements of Centerra are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. All figures are in United States dollars unless otherwise stated.

All references in this document denoted with NG, indicate a non-GAAP term which is discussed under "Non-GAAP Measures".

$9.8 million ($6.9 million net of tax or $0.02 per share) on the sale of the ATO property in Mongolia. Excluding these items, adjusted earningsNG in the third quarter 2017 were $52.3 million or $0.18 per common share (basic). During the same period in 2016, the Company reported net earnings (and adjusted earningsNG) of $66.9 million or $0.28 per common share (basic) on revenues of $218.7 million.

The Company's results include Thompson Creek operations for the three and nine months ended September 30, 2017. Comparative results for the same periods in 2016 do not include Thompson Creek operations, as the Company closed the acquisition of Thompson Creek Metals Company Inc. on October 20, 2016.

• Entered into a comprehensive settlement agreement with the Government of the Kyrgyz Republic to resolve all the outstanding matters affecting the Kumtor Project. Closing expected in the fourth quarter.

• Repaid $111.9 million of debt in the quarter under the Company's credit facilities.

• Produced a total of 200,201 ounces of gold, including 138,561 ounces at Kumtor and 61,640 ounces at Mount Milligan.

• Sold a total of 174,099 ounces of gold in the quarter, including 99,514 ounces at Kumtor and 74,585 ounces at Mount Milligan. Kumtor's gold sales to the refinery were limited in the quarter.

• Mount Milligan produced 13.7 million pounds of copper during the period and sold 18.6 million pounds of copper.

• Company-wide all-in sustaining costs on a by-product basis per ounce soldNG for the third quarter were $722, excluding revenue-based tax in the Kyrgyz Republic and income tax.

• Cash generated from operations totaled $119.5 million.

• Cash provided by operating activities before changes in working capitalNG of $108.0 million (including $74.3 million from Kumtor and $48.0 million from Mount Milligan).

• Cash, cash equivalents and short-term investments at September 30, 2017 was $352.1 million.

• Gold doré inventory held at Kumtor as of September 30, 2017 valued at market at $53.4 million.

• Revised Company-wide gold production guidance for 2017 to 775,000 to 815,000 ounces reflecting increased production guidance at Kumtor and lower payable gold production guidance at Mount Milligan.

• Completed an updated feasibility study on the Gatsuurt Project which shows total open pit mineral reserves of 1.3 million contained ounces of gold (15.4 million tonnes at an average gold grade of 2.7 grams per tonne gold), using a gold price assumption of $1,250 per ounce of gold.

Scott Perry CEO of Centerra Gold stated, "During the third quarter both of our operating sites completed the deployment of our Company-wide safety leadership program "Work Safe, Home Safe" with every employee. For the rest of the year we will continue to deploy the program at the balance of our sites, so that by year-end every Centerra employee will have received training."

"In the quarter, we achieved an important milestone when we reached a comprehensive settlement agreement with the Government of the Kyrgyz Republic to resolve all of the outstanding matters affecting the Kumtor Project. The settlement provides for the lifting of all restrictions on the freedom of movement of Kumtor employees as well as the restrictions on the ability of Kumtor to distribute funds to Centerra. The agreement also provides business certainty for future mining operations at the Kumtor Project, as it preserves all rights of Centerra and Kumtor under the Kumtor Project Agreements."

"Operationally, we had a good quarter producing 200,201 ounces of gold and 13.7 million pounds of copper at a low all-in sustaining cost on a by-product basis of $722 per ounce soldNG, reflecting Mount Milligan achieving all-in sustaining costs on a by-product basis per ounce soldNG (before tax) of $437."

"Financially, both operations generated a significant amount of cash from operations before working capital changesNG during the quarter, Mount Milligan generated $48.0 million and Kumtor generated

$74.3 million."

"The lifting of Kumtor's cash restriction along with the positive cash flow generated from both our operations during the quarter enabled the Company to aggressively pay down its debt by approximately

$112 million. Looking forward to the fourth quarter, our production levels are expected to increase which means the Company's cash position should continue to grow as the operations continue to generate positive cash flows. We are well positioned to achieve our updated production and cost guidance for the year, ranking the Company in the lower-cost quartile on the global gold producers All-In Sustaining Cost curve."

The Company also announces that Frank Herbert, President of Centerra will be retiring at December 31, 2017. Mr. Herbert joined Centerra in 2004 as General Counsel and was named President in 2015. In recognition of Frank's service, Stephen Lang, Chairman of Centerra, stated "On behalf of the Board of Directors and the Company, I thank Frank for his leadership, hard work and integrity as well as his thoughtful advice and contributions to the strategic direction of the Company during his many years of service, particularly in the area of government relations and negotiations with the Kyrgyz Republic and Mongolia. We wish Frank well in his retirement."

As part of the Company's succession plan, Mr. Yousef Rehman, Senior Legal Counsel, will be promoted to General Counsel. Mr. Herbert will work with Mr. Rehman to ensure a smooth transition. Yousef joined Centerra in 2013. Prior to joining Centerra, Yousef worked in the private sector and with Stikeman Elliott LLP on M&A and securities transactions. Since joining Centerra, Yousef has been involved in all of the Company's significant strategic initiatives, including the acquisition of Thompson Creek Minerals and the recently announced Strategic Agreement with the Kyrgyz Republic. Yousef holds undergraduate and law degrees from the University of Toronto and was called to the Ontario Bar in 2007. Additionally, upon Mr. Herbert's retirement, Scott Perry, CEO of Centerra will take on the added title of President of Centerra. Mr. Perry joined Centerra and was named CEO in 2015.

Exploration activities during the third quarter included drilling, geological mapping, soil/chip and channel sampling, and geophysics at the Company's various projects. Exploration expenditures for the third quarter of 2017 totalled $2.5 million compared to $3.5 million in the same period of 2016 ($6.6 million in the first nine months of 2017 compared to $8.6 million in the comparative period of 2016).

During the quarter, drilling activities were initiated at the Northern and Southern Siuna Project in Nicaragua (Calibre JV), the Klippen and Käringberget project areas in Sweden (Erris Resources JV) and the Kapyut Project in Armenia (100% owned). At the Yamaç Project in Turkey (100% owned) a drill program is expected to commence in the fourth quarter 2017. Centerra continues to advance other exploration opportunities in Turkey, Armenia, Canada, Mexico, Nicaragua and Sweden.

Drilling activities continued during the quarter at Öksüt with 12 drill holes completed for 1,870 metres, at a cost of $0.3 million ($0.6 million in the first nine months of 2017). The in-pit infill diamond drill holes were encouraging for both the Keltepe and Güneytepe deposits with some of the better intervals being:

ODD0290 from 81.8 to 231.2 metres; 148.9 metres @ 2.41 g/t gold ("Au")

including 38.3 metres @ 5.96 g/t Au from 111 to 149.3 metres.

ODD0291 from 71.6 to 209.4 metres; 137.3 metres @ 1.47 g/t Au

including 5.5 metres @ 2.48 g/t Au and 65.4 metres @ 2.32 g/t Au

ODD0281 from the surface; 80.8 metres @ 1.23 g/t Au ODD0282 from 21.9 to 71.5 metres 49.6 metres @ 0.58 g/t Au

including 12 metres @1.28 g/t Au ODD0283 from the surface; 42.3 metres @ 1.07 g/t Au

ODD0284 from 72.5 to 83.7 metres 11.2 metres @ 0.35 g/t Au These results will be incorporated into the year-end reserves/resources update.

The 2017 objectives for the 3,000 metres drill program were to upgrade the resources at Keltepe and

Güneytepe, as well as to confirm oxide mineralization at Keltepe NW, Yelibelen and Büyüktepe target areas. The success of the infill drilling at both Keltepe and Güneytepe has warranted an additional 1,000 metres to be added to the 2017 drill program to improve the resource model and to close off Güneytepe mineralization.

The above mineralized intercepts were calculated using a cut-off grade of 0.2 g/t Au and a maximum internal dilution interval of 5.0 metres. Drill collar locations and associated graphics are available at the following link: http://media3.marketwire.com/docs/CGQ32017LOC.pdf

A listing of the drill results, drill hole locations and plan map for the Öksüt Project have been filed on the System for Electronic Document Analysis and Retrieval ('SEDAR') at www.sedar.com and are available at the Company's web site www.centerragold.com.

A near pit drilling program (within the ultimate open pit) was completed in the third quarter for a total of 3,168 metres in six diamond drill holes. Drilling costs in the third quarter and first nine months of 2017 were $0.5 million and were charged to operating costs. Results for three holes were available at the end of the quarter. Intersected mineralization and some of the better results are:

These results, along with the results from the remainder of the planned program (3,650 metres), will be incorporated into the year-end reserves/resources update.

The above mineralized intercepts were calculated using a cut-off grade of 0.1 g/t Au and a maximum internal dilution interval of 4 metres. Drill collar locations and associated graphics are available at the following link: http://media3.marketwire.com/docs/CGQ32017LOC.pdf

A listing of the drill results, drill hole locations and plan map for the Mount Milligan Mine have been filed on the System for Electronic Document Analysis and Retrieval ('SEDAR') at www.sedar.com and are available at the Company's web site www.centerragold.com.

Exploration information and other related scientific and technical information in this news release regarding the Öksüt Project were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 (NI 43-101) and were prepared, reviewed, verified and compiled by Mustafa Cihan, Member of the Australian Institute of Geoscientists (AIG), Exploration Manager at Centerra's Turkish subsidiary Öksüt Madencilik A.Ş., who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs are used.

Exploration information and other related scientific and technical information in this news release regarding the Mount Milligan Mine were prepared in accordance with the standards of NI 43-101 and were prepared, reviewed, verified and compiled by C. Paul Jago, Member of the Engineers and Geoscientists British Columbia, Exploration Manager at Centerra's Mount Milligan Mine, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs are done consistent with industry standards and independent certified assay labs are used.