Centerra
Gold Inc. has issued a statement further clarifying the status of its Mongolian
licenses, in particular, the principal Gatsuurt hardrock mining license which
is not on the list of alluvial licenses to be revoked.

In
July 2009, the Mongolian Parliament enacted legislation that would prohibit
mineral prospecting, exploration and mining in water basins and forest areas in
Mongolia and provides for the revocation of licenses affecting such areas. This
“Water and Forest Law” provides a specific exemption for “mineral
deposits of strategic importance”, and accordingly, the company”s main
Boroo mining licenses are not subject to the law. The Gatsuurt licenses and its
other exploration license holdings in Mongolia, however, are currently not
exempt.

The
Mongolian government has announced its intention to initiate the revocation of
licenses under the Water and Forest Law on a staged basis, beginning with the
revocation of 254 alluvial gold mining licenses. The Company has four licenses
on the list of alluvial gold mining licenses that may be revoked. None of these
licenses is material to the company. The principal Gatsuurt hardrock mining
license is not on the list of alluvial licenses to be revoked.

The
company continues its constructive discussions with the Government of Mongolia
to resolve uncertainty resulting from the Water and Forests Law and to obtain
necessary approvals for the commissioning of the Gatsuurt project.