Centerra Gold’s Öksüt project is a gold deposit situated in Turkey some 300 km southeast of Ankara and 48 km south of Kayseri, the provincial capital. The nearest administrative centre is at Develi (population 64,000) located approximately 10 km north of the project. Öksüt Madencilik Sanayi ve Ticaret Anonim Sirketi (OMAS), a subsidiary of the company, owns the rights to mine and explore Öksüt. 2018 developments:

• In January 2018, received the pastureland permit, which was the last remaining permit needed to begin development
• In February 2018, the Öksüt project received Board approval for the construction and development of the property. OMAS also received an Investment Incentive Certificate (IIC) from the Turkish Ministry of Economy which provides Öksüt with tax related advantages for the development of the project
• In late March 2018, construction activities commenced with the contractor mobilizing equipment and breaking ground on main road access construction.

As at June 30, 2018 the project construction is approximately 14% complete. Following receipt of the pastureland permit and construction approval, activities focused on providing access to the site with the construction of the main access road.

Work on access roads began in April 2018. The road to the main gate and the extension to the administration buildings are expected to be completed in early and mid-August 2018, respectively.

Stripping of top soil on the waste rock dump in the north valley started April 2018.

Excavation of the main sub-station was completed in early July. Construction of the sub-station is due to begin in early August 2018.

Excavation of the absorption, desorption and refining (ADR) plant was completed at the end of July 2018, with construction of the ADR structures due to start in late August 2018.

Topsoil stripping and main excavation of the crusher area has begun and is due to be completed mid-August 2018. Mobilization and construction of the secondary crusher/radial stacker/ crusher laydown area, is due to commence mid-August 2018.

Phase 1 stripping of the top soil in the heap leach area was started in April 2018, and included toe filling and heap leach haul road construction.

Blasting works at the admin/truck shop campus has been completed. Earthworks in this area are ongoing.

Construction of the boundary fence started in July. All material for the fence is onsite.

Earthworks activities in the well area are completed. Construction of the water infrastructure started in late July 2018.

Clay screening started in early July 2018.

Earthworks of cyanide and reagent storage area started in July 2018 and is due to be completed mid-August 2018.

The first gold pour is expected to occur in the first quarter of 2020.

On June 26, 2018, all conditions precedent on the $150 million Öksüt credit facility were satisfied and an initial draw of $15 million was made.

During the three and six months ended June 30, 2018, the Company spent $9.9 million and $15.5 million respectively, mainly on fees associated with the pastureland permit and on development activities as explained above.

In the comparative periods of 2017, the company spent $2.1 million and $4.8 million in the first three and six months of 2017 on development activities to progress access and site preparation and detailed engineering plans.

The picture shows crusher area excavations.