Name and Location
Öksüt gold project, Turkey.

Client
Centerra Gold.

Project Description
The Öksüt project’s estimated mineral reserves as at June 30, 2015, were 26.1-million tonnes at an average grade of 1.4 g/t of gold containing 1.2-million ounces of gold using a cutoff grade of 0.3 g/t and a gold price of $1 250/oz.

The feasibility study envisions a conventional openpit and heap-leach operation.

The heap-leach pad has been designed with an ultimate ore capacity of 40-million tonnes.

Electrical power is expected to be supplied to the project by a dedicated 28 km power line connected to the local power grid.

Water supply is expected to be sourced from two company-owned water wells, which have been fully permitted.

Mining is planned to be conducted by a local contractor using a conventional truck-and-shovel fleet using small, selective loading equipment and 36 t trucks.

The life-of-mine strip ratio is expected to be 2:1.

The ore will be crushed to 38 mm through two stages of crushing and will be placed on the heap-leach pad at a rate of 11 000 t/d.

Life-of-mine gold recovery is expected to be 77%.

The project is expected to process 26.1-million tonnes of ore at an average grade of 1.4 g/t gold over eight years producing 895 000 oz of gold at an average all-in-sustaining cost of $490/oz sold.

Net Present Value/Internal Rate of Return
The project has a base case net present value, at an 8% discount rate, of about $242-million and an internal rate of return of 42.5%.

Value
Preproduction and construction capital is expected to be a modest $221-million, which includes a $25-million contingency.

Duration
Centerra expects to begin development of the Öksüt project in the first quarter of 2016, with first gold production expected in the second quarter of 2017.

Latest Developments
Centerra received the final approval for the environmental-impact assessment for the Oksüt project from the Turkish Ministry of Environment and Urbanisation in November 2015.

The company believes there is exploration upside on the property as evidenced by recent drilling which extended the Guneytepe deposit and has identified additional oxide material in the Keltepe NW prospect 1 km away from the existing reserve area.

Additional drilling is planned once the necessary drill permits are approved.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Centerra Gold VP investor relations John W Pearson, tel +1 416 204 1953 or email john.pearson@centerragold.com.