Centerra Gold Responds to Latest Developments in the Kyrgyz Republic - Seite 2

Centerra is concerned that these latest actions not only undermine the fundamental basis upon which the Kumtor Mine has been operated, but also put at risk the livelihoods of more than 2,700 employees, 99% of whom are Kyrgyz citizens, and the businesses of hundreds of local suppliers who support KGC operations. The actions risk destroying significant value that the Kyrgyz Republic derives from KGC’s position as the country’s largest private employer and taxpayer and put in question plans Centerra announced this year to provide US$2.0 billion in additional capital investments to extend the life of the mine by five years to 2031.

In light of today’s resolution by the Kyrgyz Parliament, and in view of the fact that Centerra is no longer in control of the Kumtor Mine as a result of the Kyrgyz Government’s actions, the Company is suspending its previously issued 2021 guidance and three-year outlook relating to the mine.”

As noted previously, the recent actions by the Government of the Kyrgyz Republic violate the 2009 restated Kumtor project agreements and the 2009 Kyrgyz Republic laws which confirmed such agreements. Those agreements were re-affirmed by the Kyrgyz Republic Government in 2017 when it entered into the Strategic Agreement on Environmental Protection and Investment Promotion, which was completed and became effective in 2019. As stipulated on numerous occasions, KGC’s operations and activities have always carefully adhered to those agreements and applicable laws, including with regard to the environment, safety and taxation.

No assurances can be given that any of the current or future legal claims and other disputes that have arisen in relation to KGC or the Kumtor Mine can be resolved without a material impact on the Company or potentially the loss of Centerra’s entire investment in the Kumtor Mine.

About Centerra
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia. Centerra operates three mines, the Kumtor Mine in the Kyrgyz Republic, the Mount Milligan Mine in British Columbia, Canada and the Öksüt Mine in Turkey. Centerra's shares trade 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 based in Toronto, Ontario, Canada.