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Centerra Gold Brings Additional Claims in Arbitration Against the Kyrgyz Republic and Names Kyrgyzaltyn JSC as a Co-Respondent over Seizure of the Kumtor Mine

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TORONTO, July 07, 2021 (GLOBE NEWSWIRE) — Centerra Gold Inc. (“Centerra” or the “Firm”) (TSX: CG) (NYSE: CGAU) introduced at the moment that it has introduced extra claims towards the federal government of the Kyrgyz Republic in binding arbitration and asserted claims towards the state-owned entity Kyrgyzaltyn JSC in response to the wrongful expropriation of the Kumtor Mine.

Amongst different aid, the Firm’s amended Discover of Arbitration seeks to carry the Kyrgyz authorities and Kyrgyzaltyn JSC answerable for any and all losses and damages that outcome from their coordinated marketing campaign to grab the gold mine in violation of longstanding funding agreements and with out compensation to Centerra.

The amended discover provides claims towards Kyrgyzaltyn JSC, the gold refining monopoly within the Kyrgyz Republic and Centerra’s largest shareholder. It asserts that Kyrgyzaltyn JSC conspired with the Kyrgyz authorities to take management of the mine beneath the guise of non permanent “exterior administration” and continues to behave on the behest of the federal government with regard to the operation of Kumtor and its shareholding in Centerra.

Scott Perry, President & Chief Govt Officer of Centerra, stated: “Reasonably than honor its dedication to arbitrate any disputes in a clear method in a impartial discussion board, the federal government and people performing in live performance with it have proceeded to expropriate the Kumtor Mine, putting Centerra’s funding and the livelihoods of hundreds of Kyrgyz staff in danger. Centerra would a lot desire to resolve this dispute in a constructive dialogue with the Kyrgyz authorities, however their repeated refusal to have interaction leaves us no alternative however to hunt efficient treatments by way of arbitration and different authorized means.”

As disclosed on Could 16, 2021, Centerra initiated binding arbitration towards the Kyrgyz authorities in response to actions taken towards the Firm’s wholly owned subsidiary Kumtor Gold Firm (“KGC”), together with meritless fines and tax claims in addition to laws offering for its operations to be positioned beneath “exterior administration.” The amended discover asserts extra claims arising from the seizure of the mine and seeks to enjoin the respondents from any additional actions to nationalize the mine or switch KGC’s belongings.

Below relevant funding agreements, Centerra’s claims shall be adjudicated by a single arbitrator in arbitration proceedings to be held in Stockholm, Sweden and carried out beneath the foundations of the United Nations Fee on Worldwide Commerce Legislation (“UNCITRAL”). Below the agreements, the governing legislation is the legislation of the State of New York. Centerra has requested that the Everlasting Court docket of Arbitration within the Hague designate an appointing authority to pick out an arbitrator promptly.

About Centerra
Centerra Gold Inc. is a Canadian-based gold mining firm targeted on working, creating, exploring and buying gold properties in North America, Asia and different markets worldwide and is among the largest Western-based gold producers in Central Asia. Centerra owns three mines, the Kumtor Mine within the Kyrgyz Republic, the Mount Milligan Mine in British Columbia, Canada and the Öksüt Mine in Turkey. Centerra’s shares commerce on the Toronto Inventory Change (TSX) beneath the image CG and on the New York Inventory Change (NYSE) beneath the image CGAU. The Firm relies in Toronto, Ontario, Canada.

Warning Concerning Ahead-Wanting Data

Data contained on this doc which aren’t statements of historic details could also be “forward-looking info” for the needs of Canadian securities legal guidelines and throughout the which means of america Non-public Securities Litigation Reform Act of 1995. Such forward-looking info entails dangers, uncertainties and different components that would trigger precise outcomes, efficiency, prospects and alternatives to vary materially from these expressed or implied by such ahead wanting info. The phrases “imagine”, “anticipate”, “anticipate”, “ponder”, “plan”, “intends”, “proceed”, “price range”, “estimate”, “might”, “will”, “schedule”, “perceive” and comparable expressions determine forward-looking info. These forward-looking statements relate to, amongst different issues: the claims introduced and aid sought by the Firm towards the Kyrgyz Republic
and Kyrgyzaltyn JSC in binding arbitration, and the potential success thereof; the power of Centerra to nominate an arbitrator promptly; the courtroom proceedings introduced by the Firm towards Mr. Bolturuk to acquire injunctive aid; future discussions with the Authorities of the Kyrgyz Republic referring to disputes which have arisen beneath the funding settlement; and
the Firm’s capacity to acquire efficient treatments by way of arbitration and different authorized means.

Ahead-looking info is essentially primarily based upon a lot of estimates and assumptions that, whereas thought of cheap by Centerra, are inherently topic to important political, enterprise, technical, financial and aggressive uncertainties and contingencies. Identified and unknown components might trigger precise outcomes to vary materially from these projected within the forward-looking info. Elements and assumptions that would trigger precise outcomes or occasions to vary materially from present expectations embody, amongst different issues:
the continued imposition by the Kyrgyz Authorities of “exterior administration” on KGC or the prolongation of such “exterior administration” the continued failure of the Kyrgyz Republic Authorities to adjust to its persevering with obligations beneath the funding agreements governing the Kumtor Mine to permit for the continued operation of the Kumtor mine by KGC and Kumtor Working Firm (“KOC”) and never take any expropriation motion towards the Kumtor mine; actions by the Kyrgyz Republic Authorities or any state company or the Basic Prosecutor’s Workplace that serve to limit or in any other case intrude with the fee of funds by KGC and KOC to Centerra; the Kyrgyz Authorities taking additional steps to nationalize or expropriate the Kumtor mine, and/or using the purported environmental and tax claims being asserted towards KGC to strip KGC of its belongings; the influence of adjustments in, or to the extra aggressive enforcement of, legal guidelines, rules and authorities practices, together with unjustified civil or felony motion towards the Firm, its associates or its present or former staff, together with the interplay of claims of hurt to the atmosphere or human well being with the brand new Kyrgyz Republic legislation that enabled the imposition of exterior administration on the Kumtor Mine by the Kyrgyz Republic Authorities; potential influence on the Kumtor mine of investigations by Kyrgyz Republic instrumentalities; the lack of the Firm and its subsidiaries to implement their authorized rights in sure circumstances or to gather on any favorable arbitral and/or courtroom judgement awarded towards the Kyrgyz Republic, Kyrgyzaltyn JSC and/or Mr. Bolturuk, as relevant; different political dangers related to the Firm’s operations within the Kyrgyz Republic; the presence of a big shareholder that may be a state-owned firm of the Kyrgyz Republic; and the administration of exterior stakeholder expectations in respect of the foregoing danger components. For added danger components, please see part titled “Dangers Elements” within the Firm’s most just lately filed Annual Data Kind obtainable on SEDAR at www.sedar.com and EDGAR www.sec.gov/edgar.

There might be no assurances that forward-looking info and statements will show to be correct, as many components and future occasions, each recognized and unknown might trigger precise outcomes, efficiency or achievements to differ or differ materially from the outcomes, efficiency or achievements which can be or could also be expressed or implied by such forward-looking statements contained herein or included by reference. Accordingly, all such components must be thought of rigorously when making choices with respect to Centerra, and potential traders shouldn’t place undue reliance on ahead wanting info. Ahead-looking info is as of July 7, 2021. Centerra assumes no obligation to replace or revise forward-looking info to replicate adjustments in assumptions, adjustments in circumstances or every other occasions affecting such forward-looking info, besides as required by relevant legislation.

For extra info:
John W. Pearson
Vice President, Investor Relations
(416) 204-1953
john.pearson@centerragold.com

Extra info on Centerra is accessible on the Firm’s website online at www.centerragold.com on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.

A PDF accompanying this announcement is accessible at https://ml.globenewswire.com/Resource/Download/14b813f4-63eb-40a6-ab8a-83f4cd5c22b5

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