KGC Kestrel Gold Inc

Centerra Gold Inc. (TSX:CG) announces that despite its efforts to obtain
approval from Kyrgyz Republic authorities for the 2014 Kumtor mine plan and
related permits, such approval and permits have not been issued. Therefore,
absent the issuance of such approval and permits by June 13, 2014, Centerra
intends to begin an orderly shutdown of operations at the Kumtor project. Prior
to such date, Centerra will continue to work and cooperate with relevant
authorities in an attempt to facilitate the issuance of such approval and
permits. 


As previously disclosed, the Company's subsidiary in the Kyrgyz Republic, Kumtor
Gold Company ("KGC"), has been working since late 2013 with the relevant
government agencies to obtain approval of its 2014 annual mine plan and related
operating permits. Unfortunately, this year, despite repeated submissions and
discussions with senior officials, such approvals and permits have not been
provided. The continuing absence of such approval and permits creates
significant uncertainty and risks for Centerra and its employees.


KGC has consistently operated the Kumtor project to high environmental, safety
and technical standards. Throughout Kumtor's history, we have engaged
constructively and in good faith with relevant authorities to obtain approval of
mine plans and designs. We also note that the 2009 Restated Investment Agreement
between the Kyrgyz Republic, Centerra and KGC requires that government agencies
be reasonable in their review of mining plans and also provides certain
assurances and guarantees to Centerra regarding the issuance of required
permits. 


The shutdown plan provides for the shutdown of all mine and mill operations on
the close of business June 13, 2014. KGC would retain sufficient staff to
provide essential environmental and safety monitoring, security and essential
maintenance of the mill and mine equipment. 


The impact of the potential shutdown on future operations will depend in part on
the duration of the shutdown. The Company has begun an analysis of possible
impacts and would expect to make a statement in this regard if the shutdown
proceeds and after it has completed the necessary analysis. The Kumtor mine
operation is complex and the Kumtor open pit is subject to significant
geo-technical and other challenges, including in-flow of water, ice movement
from the Davydov glacier toward the open pit and pit-wall instability. An
extended shutdown without active monitoring and management of such challenges
would likely have a material adverse impact on the Kumtor mine and the Company's
operations, future cash flows, earnings, results of operations and financial
condition.


Centerra notes that all disputes in relation to the Kumtor project are subject
to international arbitration in accordance with the agreements governing the
project.


Cautionary Note Regarding Forward-looking Information 

Information contained in this news release which is not a statement of
historical facts, may be "forward-looking information" for the purposes of
Canadian securities laws. Such forward-looking information involves risks,
uncertainties and other factors that could cause actual results, performance,
prospects and opportunities to differ materially from those expressed or implied
by such forward looking information. The words "expects", "continue", "may",
"will", and similar expressions identify forward-looking information. This
forward-looking information includes statements as to management's expectations
with respect to, among other things the possible shutdown of mining operations
at the Kumtor project, the continuing absence of approvals for the 2014 Kumtor
annual mine plan and the issuance of related permits, the timing and impact of
an orderly shutdown on mining operations, retention of sufficient staff for
essential environmental and safety monitoring, security and essential
maintenance of the mill and mine equipment, the possible impact of a potential
shutdown on future operations and Centerra's analysis thereof, and the
complexity of the Kumtor mine's operations, including geotechnical and other
challenges. Forward-looking information is necessarily based upon a number of
estimates and assumptions that, while considered reasonable by us, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. Factors that could cause actual results or
events to differ materially from current expectations include, among other
things, the political and regulatory risks associated with the Company's
operations in the Kyrgyz Republic, the impact of the failure of relevant Kyrgyz
Government agencies to provide approvals of annual mine plans and other required
permits and authorizations, risks related to environmental, safety and technical
matters, the impact of the significant environmental claims made in December
2012 and February 2013 relating to the Kumtor Project, and the Company's ability
to enforce its legal rights. There may be other factors that cause results,
assumptions, performance, achievements, prospects or opportunities in future
periods not to be as anticipated, estimated or intended. See "Risk Factors" in
the Company's Annual Information Form for the year ended December 31, 2013
available on SEDAR at www.sedar.com. 


There can be no assurances that forward-looking information and statements will
prove to be accurate, as many factors and future events, both known and unknown
could cause actual results, performance or achievements to vary or differ
materially, from the results, performance or achievements that are or may be
expressed or implied by such forward-looking statements contained herein or
incorporated by reference. Accordingly, all such factors should be considered
carefully when making decisions with respect to Centerra, and prospective
investors should not place undue reliance on forward-looking information.
Forward-looking information is as of June 2, 2014. Centerra assumes no
obligation to update or revise forward-looking information to reflect changes in
assumptions, changes in circumstances or any other events affecting such
forward-looking information, except as required by applicable law. 


About Centerra

Centerra is a gold mining company focused on operating, developing, exploring
and acquiring gold properties primarily in Asia, the former Soviet Union and
other markets worldwide. Centerra is a leading North American-based gold
producer and is the largest Western-based gold producer in Central Asia.
Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG.
The Company is headquartered in Toronto, Ontario, Canada.


Additional information on Centerra is available on the Company's web site at
www.centerragold.com and at SEDAR at www.sedar.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Centerra Gold Inc.
John W. Pearson
Vice President, Investor Relations
(416) 204-1241
john.pearson@centerragold.com
www.centerragold.com

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