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Over 4.7 tons of gold produced at Kumtor in the first three months of 2020

Centerra Gold Inc. (Centerra) and Kumtor Gold Company (KGC) have summed up their operating results in the first quarter of 2020. In the first three months of 2020, KGC produced 152,307ounces or 4737.28 kg of gold and contributed more than 2.82 billion soms in taxes and mandatory payments.

Gold production and sales

In the first quarter of 2020, Kumtor produced 152,307 ounces of gold from stockpiles, compared to 150,308 ounces of gold in the same prior year period.

The increase in the current quarter was primarily due to higher gold recovery and more gold produced from carbon fines, partially offset by lower grades. During the first quarter of 2020, Kumtor’s average process plant head grade was 3.5 g/t with a recovery of 83.7% compared to 3.7 g/t and a recovery of 82.0% in the first quarter of 2019.

Gold sales in the first quarter of 2020 were 160,090 ounces, or 4,979.36 kilograms. Total revenues from gold sales in the first quarter of 2020 were US$248.9 million.

Payments to the Kyrgyz national budget and mandatory contributions

During the first three months of 2020, contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments have totaled 2.82 billion soms.

Type of payment (US dollars)

As of March 31, 2020

Gross Proceeds Tax

16,181,004

Contribution to Issyk-Kul Development Fund

2,279,527

Contribution to Social Partnership for Regional Development Fund

9,911,811

Pollution Charge

310,000

Total

28,682,342

US$ official exchange rate to the Kyrgyz Soms at the end of the quarter

80.8100

Equivalent of payments effected in Kyrgyz Soms

2,317,820,075

Type of payment (Kyrgyz soms)

As of March 31, 2020

Personal Income tax

80,421,670

State Social Insurance Contribution

395,248,617

Customs Fees

6,262,000

Tax on nonresident companies

6,161,109

Other taxes and mandatory payments

12,614,470

Total

500,707,866

COVID-19 update

During the first quarter of 2020, with the support of the Kyrgyz Republic Government, Kumtor has implemented a number of proactive measures to prevent the spread of COVID-19 such as extending mine site crew rotations, separating key process plant personnel from mining crews, increasing health hygiene protocols, maintaining social distancing to ensure the safety of its employees, contractors, communities and other stakeholders, as well as, to try to ensure the uninterrupted flow of its supply chain to ensure the continuation of operations.

Despite the strict restrictions imposed by the Government of the Kyrgyz Republic on the movement of people and goods within the country, the Government has been supportive of Kumtor’s continued operations.

Commentary

Scott Perry, President and Chief Executive Officer of Centerra stated, «During the current outbreak of COVID-19, we are consciously taking the necessary precautionary measures to prevent the spread and ensure the health, safety and well-being of our employees, contractors and communities. We have also celebrated a recent safety milestone, when on April 19, 2020, our Öksüt Mine achieved one year without a lost time injury. Our continued commitment to Work Safe Home Safe is a driving force behind achieving such milestones.»

«The strong operating performance at Kumtor and Mount Milligan in the fourth quarter of 2019 has carried over into the first quarter of 2020. These two operations delivered consolidated gold production of 185,988 ounces at all-in sustaining costs4 on a by-product basis of $712 per ounce sold in the quarter. Kumtor had another strong quarter producing 152,307 ounces of gold production at all-in-sustaining costs on a by-product basis of $644 per ounce sold,» Scott Perry stated.

During the quarter, Kumtor continued to operate at its planned production rates, with the process plant continuing to operate at approximately 18,000 tonnes per day processing stockpiled ore.

Scott Perry

«In response to COVID-19, the site has extended the crew rotation schedule from the usual two-week rotation up to four weeks, replacement crews are brought in early and segregated; they are thoroughly screened prior to a crew change and the various crews are separated by department when on site,» Scott Perry said.

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