Centerra Gold : Records Third Quarter 2018 Net Earnings of $6 million; Increases 2018 Gold Production Guidance Range to 665,000 to 705,000 ounces and Lowers Cost Guidance Range

NEWS RELEASE

Centerra Gold Records Third Quarter 2018 Net Earnings of $6 million; Increases 2018 Gold Production Guidance Range to 665,000 to 705,000 ounces and Lowers Cost Guidance

Range to $782 to $829 per ounce sold

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 periods ended September 30, 2018. The consolidated financial statements of Centerra Gold Inc. are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. All figures are in United States dollars and all production figures are on a 100% basis, unless otherwise stated.

All references in this document denoted with NG, indicate a non-GAAP term which is discussed under "Non-GAAP Measures", included in the Company's MD&A herein, and reconciled to the most directly comparable GAAP measure.

Toronto, Canada, October 31, 2018: Centerra Gold Inc. ("Centerra" or "Company") (TSX: CG) today reported net earnings of $6 million or $0.02 per common share (basic) on revenues of $259.1 million in the third quarter of 2018. The third quarter 2018 results include an impairment charge of $8.5 million to write-down the net assets of the Company's Mongolian business unit to their sale value which closed on October 11, 2018. Excluding this item, adjusted earningsNG in the third quarter of 2018 were $14.5 million or $0.05 per common share (basic). During the same period in 2017, the Company reported a net loss of $0.8 million or nil per common share (basic) on revenues of $276.2 million. The third quarter 2017 results included a one-time charge of $60 million ($0.20 per share) as a result of the settlement reached with the Government of the Kyrgyz Republic and a gain from proceeds received of $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).

2018 Third Quarter Highlights

• • Increased Company-wide gold production guidance range for 2018 to 665,000 to 705,000 ounces (from 625,000 to 695,000) reflecting increased gold production guidance at Kumtor of 490,000 to 510,000 ounces (from 450,000 to 500,000).

• • Lowered all-in sustaining costs on a by-product basis per ounce soldNG Company-wide range to $782 to $829 (from $812 to $903) which reflects lower cost guidance at both Kumtor and Mount Milligan. Capital spending lowered to $217 million (from $237 million), reflecting lower spending at the Öksüt Project and at Kumtor.

• • Produced a total of 181,243 ounces of gold, including 122,445 ounces at Kumtor and 58,798 ounces at Mount Milligan. Kumtor accessed and processed high grade ore ahead of plan.

• • Sold a total of 166,716 ounces of gold in the quarter, including 119,521 ounces at Kumtor and 47,195 ounces at Mount Milligan.

• • Produced 12.7 million pounds of copper during the period and sold 13.6 million pounds of copper at Mount Milligan.

• • Company-wide all-in sustaining costs on a by-product basis per ounce soldNG were $698, excluding revenue-based tax in the Kyrgyz Republic and income tax.

• • Progressed construction of the Öksüt Project, substantially completing main road access and site preparation and advancing site infrastructure preparation. The Öksüt Project remains on budget and on schedule.

• • Completed the sale of the Company's Mongolian business unit on October 11, 2018 for net proceeds of $35 million.

• • Extended long-stop date in connection with the Strategic Agreement with the Government of the Kyrgyz Republic to January 31, 2019.

• • Gold and copper mineralization identified at depth and to the west of Mount Milligan's existing pit design.

• • Cash provided by operating activities before changes in working capitalNG of $67.1 million.

• • Cash, cash equivalents, restricted cash and short-term investments at September 30, 2018 were $222 million.

Mount Milligan Water Matters

As noted in the Company's September 14, 2018 news release, Mount Milligan received approval to access certain short-term water sources, namely to (i) pump from groundwater wells within Mount Milligan's tailings storage facility ("TSF") (as well as from a single groundwater well outside of the TSF for the entire life-of-mine) and (ii) pump up to 15% of the base flow from Philip Lake until November 15, 2018.

In addition, and in accordance with its regulatory plan, the Company has made applications for certain additional / extended water sources until 2021 and is also working on a long-term solution to meet its water needs at Mount Milligan. The Company is in discussions with regulators, First Nations and other affected stakeholders with respect to such applications.

The Company notes that as the flow from its current water sources declines during the fourth quarter and during the remainder of the winter season, Mount Milligan expects to reduce its throughput to properly manage its water balance until the water flow increases in the spring.

See "Operating Mines and Facilities - Mount Milligan Mine - Water Permitting Update" and "2018 Outlook" for further details.

Sale of Mongolian business unit

On September 25, 2018, the Company entered into a definitive agreement to sell its Mongolian business unit, including Boroo Gold LLC (including the mine and processing facility) and Centerra Gold Mongolia LLC (including the Gatsuurt Gold Project) to OZD ASIA PTE Ltd. ("OZD"), for net proceeds of $35 million. The agreement closed on October 11, 2018 when the proceeds were transferred.

In the third quarter of 2018, the Company wrote-down the net assets of the Company's Mongolian business unit to $35 million and recorded an impairment charge of $8.5 million (included in discontinued operations), which represents the amount by which its net carrying value exceeds the proceeds less transaction costs.

Commentary

Scott Perry, President and Chief Executive Officer of Centerra stated, "Our sites had another safe quarter and we continue to roll out phase two of our Work Safe - Home Safe program, as we strive to zero harm within the work place."

"During the quarter and earlier than planned, Kumtor accessed and started mining and processing the higher-grade material from the SB Zone in the Central Pit. As a result, Kumtor delivered better than planned results in the quarter, producing over 122,000 ounces of gold at all-in sustaining costs (before taxes)NG of $662 per ounce sold. Company-wide the operations produced a total of 181,243 ounces of gold and 12.7 million pounds of copper in the quarter."

"Company-wide our all-in sustaining costs on a by-product basis per ounce sold (before taxes)NG were $698 per ounce for the quarter bringing year-to-date to $861 per ounce."

"With our third quarter earnings release today, the Company increased its gold production guidance for Kumtor for the year to 490,000 - 510,000 ounces and Company-wide to 665,000 to 705,000 ounces. We also lowered our expected all-in sustaining costs on a by-product basis (before taxes)NG at Kumtor to $700 to $750 per ounce sold and at Mount Milligan to $825 to $875 per ounce sold, which bring the Company's consolidated all-in sustaining costs on a by-product basis (before taxes)NG to $782 to $829 per ounce sold."

"Construction activity continued at the Öksüt Project in Turkey as the main access road and site road construction were substantially completed and the installations including the crusher area, ADR plant area, heap leach pad site and other site infrastructure are advancing according to plan."

"The Kemess Project achieved another milestone in the quarter as it received its effluent discharge permit after receiving the amendment to its Mines Act Permit in the second quarter, which approved the underground mine plan and reclamation program for the Kemess Underground Project."

"Financially, the business delivered approximately $67 million of consolidated cash from operations before changes in working capitalNG in the quarter. Kumtor and Mount Milligan generated $64 million and $19 million respectively, before working capital changes."

"Lastly, after the end of the quarter, we announced the sale of our Mongolian business unit for net proceeds of $35 million. I would like to acknowledge and to personally express my heartfelt thanks to all of our former colleagues in Mongolia for their contributions over many years to Centerra."

Exploration Update

Exploration expenditures in the third quarter of 2018 totaled $7.2 million compared to $2.5 million in the same quarter of 2017, reflecting the restart of exploration activities at Kumtor in 2018. Exploration activities during the third quarter included drilling, trenching, surface sampling, geological mapping and geophysical surveying at the Company's various projects.

Kyrgyz Republic Kumtor Mine

Kumtor has designed and initiated a two-year 60,000 metre drill program to test potential extensions of gold mineralization along the Kumtor trend. The program is focused within the Central, South-West and Sarytor pits and the North-East Target area. A budget of $18 million has been allocated to the program with $6.5 million for 2018 and $11.5 million budgeted for 2019.

Drilling in 2018 is planned to test near surface targets, including the Hockey Stick Zone, the north-west periphery of the Central Pit and the corridor between the Central Pit and South-West Pit.

During the third quarter of 2018, 30 diamond drill holes were completed for a total 8,318 metres, at the vicinity of the Central and South-West Pits and the North-East Target area. More than half of the holes (17 drill holes for a total 4,507 metres) were completed in the Central Pit area targeting the Hockey Stick Zone.

Significant intercepts are:

D1784

32.1 metres @ 1.37 g/t Gold ("Au") from 191.7 metres;

D1785

15.0 metres @ 3.62 g/t Au from 176.3 metres;

D1786

24.5 metres @ 2.79 g/t Au from 181.5 metres

D1786

4.7 metres @ 2.37 g/t Au from 232.0 metres;

D1787

19.9 metres @ 2.80 g/t Au from 174.2 metres;

D1790

18.5 metres @ 3.62 g/t Au from 156.0 metres

D1790

26.4 metres @ 5.57 g/t Au from 180.5 metres Includes 9.8 metres @ 10.42 g/t Au from 186.0 metres;

D1795

7.0 metres @ 2.45 g/t Au from 22.0 metres;

D1797

48.4 metres @ 2.85 g/t Au from 154.9 metres Includes 3.7 metres @ 11.51 g/t Au from 196.1 metres;

D1803

4.4 metres @ 2.78 g/t Au from 73.6 metres.

In the South-West area, 7 drill holes were completed for a total 2,297.7 metres. Best intercepts include:

• SW-18-257 11.0 metres @ 1.57 g/t Au from 307.9 metres

• SW-18-257 34.0 metres @ 2.23 g/t Au from 344.7 metres;

• SW-18-258 11.6 metres @ 2.15 g/t Au from 290.9 metres

• SW-18-258 9.9 metres @ 2.95 g/t Au from 344.7 metres;

• SW-18-259 22.9 metres @ 2.82 g/t Au from 377.3 metres Includes 3.1 metres @ 8.80 g/t Au from 377.3 metres;

• SW-18-262 4.8 metres @ 1.78 g/t Au from 15.7 metres.

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In the North-East area, 6 drill holes were completed for a total 1,512.4 metres. The best intercept is:DN1800

5.8 metres @ 1.00 g/t Au from 75.2 metres.

In the fourth quarter of 2018, drilling will be focused on inferred near-surface mineralization in the north-east wall of the Central Zone, south-west extension of the Hockey Stick Zone and periphery of the North-East target.

The above mineralized intercepts were calculated using a cut-off grade of 1.0 g/t Au, minimum interval of 4.0 metres and a maximum internal dilution interval of 5.0 metres. Drill collar locations and associated graphics are available at the following link:

http://resource.globenewswire.com/Resource/Download/9a34de56-af74-465c-8617-99019cd8a4a7

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

Canada

Mount Milligan Mine

Exploration activities in the third quarter of 2018 at Mount Milligan included brownfield exploration drilling (within the mine lease) and greenfield exploration drilling (outside the mine lease). Phase-2 of the near-pit infill and expansion drilling began in the Saddle Zone in September.

Receipt of assay results for the latter drill holes of the Phase-1 near-pit infill and expansion drilling program continued during the third quarter. The program was completed on June 30, 2018 and totaled 10,985 metres in 30 drill holes (18-1056 to 18-1084) including one geotechnical hole. The last five drill holes were completed within the 66 Zone. Selected best results include:

• 18-1080: 125.0 metres @ 0.91 g/t Au, 0.01% Copper ("Cu") from 47.0 metres;

• 18-1081: 54.0 metres @ 0.46 g/t Au, 0.01% Cu from 103.0 metres;

• 18-1082: 145.2 metres @ 0.94 g/t Au, 0.08% Cu from 4.1 metres;

• 18-1084: 56.0 metres @ 1.99 g/t Au, 0.04% Cu from 3.1 metres;

The brownfield drilling program completed a total of 6,669 metres in 12 drill holes and three target areas within the mine lease up to 730 metres west of the ultimate pit boundary. Assay results demonstrate near surface high-gold-low-copper targets in all zones and additional gold-copper mineralized porphyries at deeper levels. Selected best results include:

18-1093 (Saddle West zone):	23.0 metres @ 0.98 g/t Au, 0.07% Cu from 242.0 metres;
18-1105 (Saddle West zone):	14.2 metres @ 0.82 g/t Au, 0.11% Cu from 142.0 metres;
18-1108 (Saddle West zone):	7.9 metres @ 4.69 g/t Au, 0.03% Cu from 112.1 metres;
18-1085(Goldmark zone):	29.8 metres @ 0.24 g/t Au, 0.38% Cu from 261.2 metres;
18-1086 (Goldmark zone):	23.1 metres @ 6.21 g/t Au, 0.04% Cu from 20.2 metres;
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