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Ian Atkinson, President and CEO of Centerra Gold said: "2012 was another successful year for Centerra, increasing our reserve and resource base to over 16 million contained ounces of gold, which does not include the 4 million contained ounces of gold in the inferred category. In 2012, we more than replaced reserves mined at Kumtor with the new KS-13 life-of-mine plan and generated our initial resource at our 100% owned Oksut deposit in Turkey."

Year-end Reserves and Resources

Reserves

During 2012, Centerra's proven and probable gold reserves increased by 3.6 million contained ounces (before accounting for 2012 production) to 11.1 million ounces of contained gold, compared to 8.1 million ounces as of December 31, 2011. This represents an increase of 45% before accounting for 534,000 contained ounces processed at Kumtor and Boroo during 2012. The total reserve increase is the result of the significant expansion of the Kumtor Central Pit and is described in detail in a new NI 43-101 technical report filed on SEDAR in December 2012. All 2012 year-end reserves were estimated using a gold price of $1,350 per ounce compared to $1,200 per ounce at December 31, 2011.

For the 2012 Kumtor year-end reserve statement in this news release, the KS-13 model has been updated from the reserve estimate completed and published at the end of September 2012 by the addition of 17 diamond drill holes and accounting for the gold production and mine reconciliation completed during the last quarter of 2012.

In Mongolia, at the Boroo mine, proven and probable reserves total 178,000 contained ounces of gold after accounting for approximately 110,000 contained ounces being processed in the mill and or loaded on the heap leach pad in 2012. The remaining reserves are now entirely within existing ore stockpiles on surface. At the current reserve gold price assumption, the Boroo operation can continue to feed the mill from stockpiles for approximately two more years and operate and recover gold from the heap leach pad into 2014. At the Gatsuurt project, proven and probable reserves remain unchanged at 1.5 million ounces of contained gold.

Resources

As of December 31, 2012, Centerra's measured and indicated resources decreased by 23% or 1.5 million ounces over the December 31, 2011 figures to total 5.1 million ounces of contained gold, compared to 6.6 million contained ounces as of December 31, 2011. The majority of this decrease is a result of the conversion of previously outlined Kumtor Central Pit measured and indicated open pit resources into mineral reserves as a result of the KS-13 Pit expansion. This conversion of resources to reserves has been offset by increased resources at Kumtor described below and the addition of 682,000 contained ounces of new indicated resources at the Oksut project.

As of December 31, 2012, Centerra's inferred resources increased by 22,000 contained ounces over the December 31, 2011 figures to total 4.1 million ounces of contained gold, the conversion of Kumtor underground resources into reserves within the KS-13 expanded pit was offset by new high grade resources outlined below the KS-13 pit design and the addition of 477,000 contained ounces of new inferred resources at the Oksut project.

At Kumtor, as of December 31, 2012, measured and indicated resources total 2.7 million ounces of contained gold, compared to 4.8 million contained ounces as of December 31, 2011. The decrease of 2.1 million ounces is largely attributable to the significant conversion of resources to reserves as a result of the expanded Central Pit at Kumtor. The expansion of the open pit converted approximately 2.0 million ounces of contained gold of measured and indicated open pit resources to reserves. Exploration drilling in 2012 added 400,000 ounces of contained gold to measured and indicated resources and 21,000 ounces of contained gold of the inferred open pit resources were upgraded to measured and indicated resources. These increases in the measured and indicated open pit resources were offset by a reduction of 678,000 ounces of contained gold because of the smaller resource limiting shell used for resource estimation.