Centerra Gold : 2020 ESG Report (20MB)

2020

Environmental, Social and Governance Report

2  |	2020 Environmental, Social and Governance Report
INTRODUCTION	GOVERNANCE	ENVIRONMENT SOCIAL	PERFORMANCE DATA

TABLE OF CONTENTS

	03	INTRODUCTION	3
			About Centerra Gold
			Operations and Assets	4
			Scope of this Report	5
			Our ESG Topics and Approach to ESG Disclosure	6
			2020 ESG Highlights	7
			Chairperson and CEO Annual Messages	8
			ESG Targets and Progress	10
			Our COVID-19 Response	12
14	1.0 GOVERNANCE	15
			1.1	Our Approach
			1.2	Process to Manage Risks and Opportunities	17
			1.3	Performance	21
	22	2.0 ENVIRONMENTAL STEWARDSHIP	23
			2.1	Our Approach
			2.2	Greenhouse Gas (GHG) Emissions	26
			2.3	Energy Management	34
			2.4	Air Quality	36
			2.5	Water Stewardship and Management	39
			2.6	Waste and Hazardous Materials Management	45
			2.7	Biodiversity	52
59	3.0 SOCIAL PERFORMANCE
3.1	Our Approach	60
			3.2	Security, Human Rights and Rights of Indigenous Peoples	61
			3.3	Labour Relations	67
			3.4	Community Relations	74
			3.5	Workforce Health and Safety	83
88	PERFORMANCE DATA
Sustainability Accounting Standards Board (SASB) Index	88
			Task Force on Climate-related Financial Disclosures (TCFD) Index	90

CAUTIONARY NOTE REGARDING

FORWARD-LOOKING STATEMENTS

Information contained in this report, which are not statements of historical facts, and the documents incorporated by reference herein, may be "forward-lookinginformation" for the purposes of Canadian securities laws. Such forward-lookinginformation involves risks, uncertainties, assumptions and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-lookinginformation. For a detailed discussion of such risks and other factors, see the Company's most recent Management's Discussion and Analysis (MD&A) and Annual Information Form, both of which are available on SEDAR atwww.sedar.com.

Although Centerra believes that the assumptions inherent in these forward-looking statements are reasonable, the reader should not place undue reliance on these statements. Centerra disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

SUBSEQUENT EVENT NOTE

This 2020 ESG Report is prepared in respect of the 2020 financial year. Readers are cautioned that, in May 2021, the Government of the Kyrgyz Republic illegally seized control of the Kumtor Mine and therefore Centerra is no longer in control of the Kumtor Mine or the ESG policies, procedures and initiatives relating to the Kumtor Mine which are described in this report. Reference is made to the Company's public disclosure available on SEDAR at www.sedar.com.

3  |	2020 Environmental, Social and Governance Report	INTRODUCTION	GOVERNANCE	ENVIRONMENT SOCIAL	PERFORMANCE DATA

ABOUT CENTERRA GOLD

Centerra Gold Inc. ("Centerra" or the "Company") is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties worldwide. Centerra operates two mines, the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Turkey. The Company also owns the Kumtor Mine in the Kyrgyz Republic, which is currently not under the Company's control. The Öksüt Mine achieved commercial production as of May 31, 2020.

In 2020, Centerra produced 824,059 ounces of gold and 82.8 million pounds of copper.

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The Company has one property in Canada in the pre-development stage, the Kemess Underground Gold Property. The Company sold its interest in the Greenstone Gold Mines Partnership, which included its interest in the Hardrock deposit, effective January 19, 2021, and as a result, treated it as available for sale as at December 31, 2020. The Company owns exploration properties in Canada, the United States of America and Turkey and has options to acquire exploration joint venture properties in Canada, Finland, Turkey and the United States of America. The Company owns various assets within its Molybdenum Business Unit, particularly the Langeloth Metallurgical Facility in Pennsylvania, USA,

and two primary molybdenum mines currently on care and maintenance, Thompson Creek Mine in Idaho, USA, and the Endako Mine (75% ownership) in British Columbia, Canada.

At Centerra, we are focused on quality assets defined by low cost, long life and sustainable robust margins and returns. We recognize that robust environmental and social performance is not only the right thing to do but that it is key to achieving this strategy.

Being a responsible miner is one of our key values. For Centerra, this means putting our people first, creating and sharing economic value in the countries and communities where we operate, and protecting our surrounding natural environment.

4  |	2020 Environmental, Social and Governance Report	INTRODUCTION	GOVERNANCE	ENVIRONMENT SOCIAL	PERFORMANCE DATA

OPERATIONS AND ASSETS

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OPERATIONS

DEVELOPMENT

MOLYBDENUM ASSETS

CANADA				UNITED STATES		TURKEY	KYRGYZ REPUBLIC
	OPERATION		DEVELOPMENT			MOLYBDENUM ASSET		OPERATION		OPERATION
3	MOUNT MILLIGAN MINE	4	KEMESS: Underground	2	THOMPSON CREEK		7 ÖKSÜT MINE		8 KUMTOR MINE2
	Au, Cu		and East Projects			MINE: Care and		Au		Au
			Au, Cu			Maintenance
	DEVELOPMENT					Mo
5	GREENSTONE		MOLYBDENUM ASSET
	PROJECT1	1	ENDAKO MINE: Care			MOLYBDENUM ASSET
	50% Au		and Maintenance	6	LANGELOTH
			75% Mo			METALLURGICAL
						FACILITY

Mo

1. On January 19, 2021, Centerra completed the previously announced sale of Centerra's 50% interest in the Greenstone Gold Mines Partnership.
2. Refer to the subsequent event note on page 2for further information.

5  |	2020 Environmental, Social and Governance Report	INTRODUCTION	GOVERNANCE	ENVIRONMENT SOCIAL	PERFORMANCE DATA

SCOPE OF THIS REPORT

Centerra's 2020 Environmental, Social and Governance (ESG) Report is for the 2020 financial year (12 months ending December 31, 2020). This report is primarily focused on the Company's three main operating assets in 2020. These assets, the Mount Milligan Mine in British Columbia, Canada, the Kumtor Mine in the Kyrgyz Republic, and the Öksüt Mine in Central Anatolia, Turkey, represent the most significant ESG risks and opportunities for the Company1. In the sections related to labour relations, health and safety, and waste management, namely tailings management, Centerra has expanded the scope of its reporting to include its development stage and molybdenum business unit in this discussion.

In future reporting, Centerra will assess the feasibility of including enhanced environmental and social disclosure on its development stage projects and molybdenum business unit.

Financial amounts are reported in US dollars (USD) unless otherwise stated. References herein to "Centerra" or the "Company" refer to the consolidated Company unless the context suggests otherwise.

This report has been prepared in accordance with the Sustainability Accounting Standards Board (SASB) Metals & Mining Industry Standard. SASB has been selected as the main reporting framework as it is the preferred framework by Centerra's institutional investors who are seeking comparable, consistent and financially material ESG disclosures by the industry. Adopting the SASB reporting framework will allow us to undertake improved year-over-year performance analysis and industry benchmarking in future reporting years. For the financial year ending December 31, 2020, Centerra's Scope 1 and Scope 2 emissions have been prepared in accordance with the GHG Protocol - Corporate Standard and

verified under ISO 14064-3 by an accredited third-party verification firm.

To normalize our operating results against our peers in the mining and metals space, SASB has recommended two activity metrics for the mining industry: operational results and total employees. Obtaining information related to contractor detail has been challenging. We intend to work toward providing this data in future reporting years to align with SASB expectations. Table 1 and Table 2 capture this information for 2020.

Further information and analysis on the Company's operational results are detailed in Centerra's 2020 Annual Information Form.

Table 1. Operational Results

	2020	2019	2018
Gold Produced (oz)	824,059	783,308	729,556
Payable Copper	82,816	71,146	47,091
Produced (000s lb)

Table 2. 2020 Total Employees by Employment Type and Region (as of December 31)

			Permanent						Temporary			Total
# of Employees	Female	Female %	Male	Male %	Total		Female	Female %	Male	Male %	Total
Canada	113	17.5%	532	82.5%	645	11	55.0%	9	45.0%	20	665
Turkey	31	13.9%	192	86.1%	223	2	12.5%	14	87.5%	16	239
Kyrgyz Republic	276	12.6%	1,919	87.4%	2,195	32	5.4%	563	94.6%	595	2,790
USA	19	11.4%	148	88.6%	167	0	0.0%	0	0.0%	0	167
Total	439	13.6%	2,791	86.4%	3,230	44	7.0%	586	93.0%	630	3,861

1 Refer to the subsequent event note on page 2for further information.