Centerra Gold confirms negotiations with the Kyrgyz government


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TORONTO, January 3, 2022 (GLOBE NEWSWIRE) – Centerra Gold Inc. (Centerra or “Company”) (TSX: CG) (NYSE: CGAU) today confirmed that it is engaged in negotiations with representatives of the Kyrgyz Republic to resolve its disputes over the Kumtor Mine Center and the Kyrgyz government’s takeover of the mine. in May 2021.

Following statements in the Kyrgyz media regarding potential negotiations on the transfer of the Kumtor mine to the Kyrgyz Republic, Centerra expects that the framework for any resolution will include the following basic conditions:

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  • Centerra receives approximately 26.1% of the ordinary shares of Centerra owned by Kyrgyzaltyn JSC (Instrumental Republic of Kyrgyzstan). Upon receipt, Centerra would cancel the shares handed over by Kyrgyzaltyn JSC.
  • The Kyrgyz Republic accepts and assumes full responsibility for the Company’s two subsidiaries in Kyrgyzstan and the Kumtor Mine.
  • Payment by Centerra of a cash amount equal to the net amount of three dividends paid by Centerra in 2021, which Kyrgyzaltyn dd did not receive as a result of mine seizures and certain other financial compensation related to settling intercompany balances between Centerra and its two Kyrgyz subsidiaries.
  • The resignation of two candidates Kyrgyzaltyn JSC from the Board of Directors of the Center.
  • Complete and final release of all claims of the parties and termination of all legal proceedings involving the parties in all jurisdictions without acknowledgment of liability.

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Negotiations with the representatives of the Kyrgyz Republic are ongoing and there can be no guarantee that any proposed resolution will be implemented or with regard to the final economic and other conditions and provisions of any such resolution, if agreed. Any such decision should be formalized in a final agreement and be subject to compliance with all applicable legal and regulatory requirements and approvals, including any applicable independent assessment requirements or shareholder or government approval requirements.

A note regarding information that looks to the future
Information contained in this document that is not a statement of historical facts may be “forward-looking information” for the purposes of Canadian securities law and within the meaning of the 1995 United States Private Securities Reform Litigation Reform Act. the future includes risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied in such forward-looking information. The words “believe”, “expect”, “anticipate”, “think”, “plan”, “potentially”, “intend”, “continue”, “budget”, “estimate”, “can”, “will”, ” schedule “,” understand “and similar expressions identify information related to the future. These forward-looking statements apply, inter alia, to: any negotiation or settlement between Centerra and the Kyrgyz Republic and potential terms and conditions (including legal and regulatory requirements and approvals in this regard) of any such resolution.

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Information looking to the future is necessarily based on a number of estimates and assumptions that, although considered reasonable by the Center, are inherently subject to significant political, business, technical, economic and competitive uncertainties and unforeseen circumstances. Known and unknown factors may cause actual results to differ materially from those predicted in future information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, but are not limited to: uncertainty about the likelihood of a solution resulting from recent negotiations with representatives of the Kyrgyz Republic and the Kyrgyz Republic JSC; the continued imposition of “external management” by the Kyrgyz government on Kumtor Gold Company CJSC (“KGC”) or the extension of such “external management”; inability of “external management” to procure equipment,
spare parts, consumables or other supplies; The Government of Kyrgyzstan is taking further steps to nationalize or expropriate the Kumtor mine, and / or use alleged environmental and tax claims against the KGC to confiscate its property from the KGC; the impact of changes or more aggressive enforcement of laws, regulations and government practices, including unjustified civil or criminal lawsuits against the Company, its affiliates or its current or former employees, including the interaction of environmental or human health claims with the new Kyrgyz law; uncertainty of potential outcomes in the arbitration process; the inability of the Company and its subsidiaries to collect or enforce any favorable arbitration and / or court award against the Kyrgyz Republic or the Kyrgyz JSC; the presence of a significant shareholder who is a state-owned company of the Kyrgyz Republic; and other actions that the Company could take in response to the current situation involving the Kumtor Mine. For additional risk factors, see the “Risk Factors” section of the company’s latest annual information form available on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.

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There can be no guarantee that information and statements relating to the future will be accurate, as many factors and future events, known and unknown, may cause actual results, performance or achievements to differ or materially from results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Consequently, all such factors should be carefully considered when making decisions about Centerra, and potential investors should not unduly rely on information looking to the future. Information relating to the future is as of 3 January 2022. The Center undertakes no obligation to update or revise information relating to the future to reflect changes in assumptions, changes in circumstances or any other events affecting such information relating to the future. future, except as required by applicable law.

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About Centerra Gold
Centerra Gold Inc. is a Canadian gold mining company focused on operating, developing, researching and acquiring gold real estate in North America, Turkey and other markets around the world. Centerra operates two mines: the Mount Milligan mine in British Columbia, Canada, and the Öksüt mine in Turkey. Although the Company still owns the Kumtor mine in the Kyrgyz Republic, it is currently no longer under the Company’s control. The company also owns the pre-development phase of the Kemess Underground Project in British Columbia, Canada and owns and operates the Molybden Business Unit in the United States. Centerra shares are traded 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 headquartered in Toronto, Ontario, Canada.

For more information:
Toby Caron
Treasurer and Investor Relations Director
(416) 204-1694
toby.caron@centerragold.com

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

The PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/e0706f0b-5e13-4bad-a9ed-f85783e8b95c

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