Centerra Gold Reports Record Fourth Quarter Production at Kumtor; Fourth Quarter Earnings of $0.20 per Share

Market Wire, February, 2009

For the year, cash provided by operations was $166.3 million compared to $41.3 million for the prior year. The increase reflects the increased gold sales and higher average gold price received.

Capital expenditures for 2008 amounted to $94.5 million of which $47.5 million was spent on sustaining capital projects and $47.0 million invested in growth capital. The major components are related to the SB Zone underground development at Kumtor ($15.4 million), completion of the heap leach facility at Boroo ($10.6 million) and Pit 3 pre-stripping at Boroo ($13.2 million).

Exploration expenditures in 2008 were $23.5 million compared to $19.1 million in 2007 reflecting higher spending at Kumtor in 2008 and the increase in exploration activities elsewhere.

Market Update

A significant factor in determining profitability and cash flow from the Company's operations is the price of gold. The spot market gold price based on the London PM fix was approximately $870 per ounce at the end of 2008. For the three months ended December 31, 2008, the gold price averaged $795 per ounce compared to $788 per ounce for the same period in 2007. For the year 2008, the gold price averaged $872 per ounce compared to $696 per ounce for 2007.

The Company receives its revenues through the sale of gold in U.S. dollars. The Company has operations in the Kyrgyz Republic and Mongolia, and its corporate head office is in Toronto, Canada. During 2008, approximately $281 million in non-U.S. dollar operating and capital costs were incurred by Centerra. The percentage of Centerra's non-U.S. dollar costs, by currency was, on average, as follows: 45% in Kyrgyz som, 25% in Mongolian tugrik, 17% in Canadian dollars, 11% in Euros, and approximately 2% in British pounds and Australian dollars, combined. In 2008, the currencies of the Kyrgyz Republic, Canada, the United Kingdom and Australia declined against the U.S. dollar by approximately 3.0%, 7.6%, 8.3% and 4.7%, respectively, from their value at December 31, 2007. The Tugrik and the Euro remained virtually unchanged against the U.S. dollar. The net impact of these movements in 2008 was to reduce operating and capital costs by $7.4 million.

Other Corporate Developments

Kyrgyz Republic

Centerra continues to hold discussions with Cameco Corporation and a Kyrgyz Republic Government working group with a view to resolving outstanding matters relating to the Kumtor project. The Company is optimistic that these discussions will ultimately result in a mutually acceptable and lasting settlement of all issues.

The following discussion summarizes the legal, arbitration and regulatory proceedings affecting the Company and the Kumtor project since June, 2008, when the previously announced framework agreements among the parties expired. To allow for discussion with Cameco and the Kyrgyz Republic to continue and for the parties to concentrate on resolving the issues, the Company agreed in September 2008 to suspend the international arbitration proceedings previously initiated by it. That suspension continues. The Company believes that all of the proceedings affecting the project will be resolved when the principal matters at issue between Cameco, the Kyrgyz Republic and Centerra have been resolved.