Centerra Gold Reports 2011 Gold Production of 642,380 Ounces and Provides 2012 Guidance

This news release contains forward-looking information that is subject to the
risk factors and assumptions set out on page 5 and in our Cautionary Note
Regarding Forward-looking Information on page 6. All figures are in United
States dollars.


Centerra Gold Inc. (TSX:CG) announced today that its 2011 consolidated gold
production totalled 642,380 ounces, which includes 583,156 ounces of gold from
the Kumtor mine and 59,224 ounces of gold from the Boroo mine.


During the fourth quarter of 2011, consolidated gold production was 151,562
ounces, including 138,696 ounces of gold produced by the Kumtor mine, located in
the Kyrgyz Republic and 12,866 ounces of gold produced by the Boroo mine,
located in Mongolia.


Centerra's 2012 gold production and unit costs are forecast as follows:



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                         2012 Production Forecast   2012 Total Cash Cost(1) 
                                 (ounces of gold)     ($ per ounce produced)
----------------------------------------------------------------------------
Kumtor                          575,000 - 625,000                  430 - 465
----------------------------------------------------------------------------
Boroo                              approx. 60,000                        810
----------------------------------------------------------------------------
Consolidated                    635,000 - 685,000                  465 - 500
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(1) Total cash cost is a non-GAAP measure and includes mine operating costs 
such as mining, processing, regional office administration, royalties and   
production taxes (except at Kumtor where revenue-based taxes are excluded), 
but exclude amortization, reclamation costs, financing costs, capital       
development, community investments and exploration.                         



Steve Lang, President and CEO of Centerra stated, "As expected we achieved our
2011 gold production forecast as both operations had strong fourth quarter
operating performance allowing us to build our balance sheet, which we will use
to grow the Company. Significant capital investment is planned at Kumtor for
2012 in order to renew our mining fleet to enable us to maintain production
levels and manage the pit walls in the Central Pit. Our 2012 gold production
guidance does not include any production from the heap leach facility at Boroo
or the adjacent Gatsuurt project. The continued delays in receiving the final
permits and approvals including the regulatory commissioning of the Gatsuurt
project, pending the discussion of the Water and Forest Law amendment in the
Mongolia Parliament, makes it difficult to predict the timing of the start of
production. We continue to expand our exploration and business development
efforts as we look for additional operating platforms in an effort to increase
our future gold production and help us achieve our goal of producing 1.5 million
ounces of gold annually."


"I am also very pleased to announce that Mr. Patrick James has resumed his role
as Chair of the Board of Directors of Centerra. In early December 2011, Pat took
a short leave of absence for family medical reasons, but has now since rejoined
the board," he concluded.


2012 Outlook 

Centerra's 2012 consolidated gold production is forecast to be in the 635,000 to
685,000 ounce range. The Kumtor mine is expected to produce between 575,000 to
625,000 ounces in 2012. Kumtor's 2012 planned mining sequence results in a
production profile with the majority of the gold production occurring in the
fourth quarter. The high-grade material from the SB Zone is only available for
mining at the end of the third quarter when it is exposed by Cut Back 14A. On a
quarterly basis, Kumtor's 2012 gold production is forecast to have 12% of gold
production being recovered in the first quarter, 20% in the second quarter, 25%
in the third quarter and 43% in the fourth quarter. Gold production in the first
quarter of 2012 will also be impacted by four days of scheduled mill maintenance
of the Ball and SAG mills.


Kumtor's collective bargaining agreement expires at the end of 2012. A work
stoppage at any time during the year could have a significant impact on Kumtor
achieving its forecasted production. Additionally, achieving the 2012 production
is dependent on the delivery of new mining equipment on schedule and
successfully maintaining the mining rates of the waste and ice in the southeast
portion of the pit to gain access to the higher grade ore.


At the Boroo mine, gold production is forecast to be approximately 60,000 ounces
and assumes mining of Pit 6 at Boroo starting in January 2012. The 2012 forecast
also assumes no production from the heap leach facility or the Gatsuurt project
due to uncertainties with permitting. The Boroo mill is expected to process
mostly higher grade heap leach ore stockpiles for the first eight months of
2012, followed by processing the higher grade ore from Pit 6 from September 2012
to January 2013. During September to December 2012, the Boroo mill is expected
to process a mixture of higher grade Pit 6 ore with an average grade of
approximately 2.1 g/t and stockpiled heap leach material with grades between
0.67 - 0.76 g/t.


Receipt of the final heap leach operating permit would add approximately 2,000
ounces of gold a month. At Gatsuurt, the project is ready to begin mining the
oxide ore on receipt of the final approvals and regulatory commissioning.


2012 Exploration Expenditures 

Exploration expenditures of $45 million are planned for 2012, a 13% increase
from $40 million planned expenditures in 2011. The 2012 program will continue
the aggressive exploration work at the Kumtor mine together with an increase in
the exploration in the Kumtor district, planned expenditures are expected to be
about $15 million. In Mongolia, $8 million is allocated for exploration programs
and work will continue along the Onon trend in eastern Mongolia and to follow up
on the positive results on the Altan Tsagaan Ovoo ("ATO") project. 


In 2012, drilling programs will continue on the Kara Beldyr and Dvoinoy projects
in Russia and expenditures for the two projects are expected to be approximately
$6 million. Drilling programs will also continue in Turkey on the Company's
joint venture projects with expenditures expected to be approximately $6
million. Drilling of the Laogouxi project in China is expected to commence as
soon as the joint venture is approved by the applicable Chinese regulatory
authorities. In addition, generative programs will continue in Central Asia,
Russia, China, and Turkey to increase the pipeline of projects that the Company
is developing to meet the longer term growth targets of Centerra.


2012 Capital Expenditures 

The capital expenditures for 2012 are estimated to be $389 million, including
$49 million of sustaining capital and $340 million of growth capital.


Capital expenditures include:



----------------------------------------------------------------------------
                            2012 Growth Capital      2012 Sustaining Capital
Projects                  (millions of dollars)        (millions of dollars)
----------------------------------------------------------------------------
Kumtor mine                      $          328               $           45
----------------------------------------------------------------------------
Mongolia                         $           12               $            3
----------------------------------------------------------------------------
Corporate                                     -               $            1
----------------------------------------------------------------------------
Consolidated Total               $          340               $           49
----------------------------------------------------------------------------



Kumtor 

At Kumtor, 2012 total capital expenditures are forecast to be $373 million
including $45 million of sustaining capital. The largest sustaining capital
spending will be the major overhaul maintenance of the heavy duty mine equipment
($21 million), expenditures for dewatering and infrastructure ($8 million),
effluent treatment plant relocation ($5 million), tailings dam construction
works ($4 million) and for equipment replacement and other items ($7 million). 


Growth capital investment at Kumtor for 2012 is forecast at $328 million, which
includes pre-strip costs related to the development of the open pit ($128
million), purchase of new mining equipment including 25 CAT 789 haul trucks, 4
drills and 4 Hitachi 3600 shovels ($126 million), and other items ($11 million).
Growth capital for 2012 has increased compared to the most recent Kumtor
technical report as purchases of mine expansion equipment planned for 2013 ($61
million) have been brought forward to 2012. This was done to ensure that all of
the new CAT 789 haul trucks were of the same model "C" series, given that CAT is
discontinuing the C series in late 2012. Additionally, the added capacity will
help to ensure the required mine production rate is maintained. Also, $63
million is included in 2012 growth capital investment for the underground
project to continue to develop the SB and Stockwork Zones, as well as for
delineation drilling and capital purchases in 2012. 


Mongolia (Boroo & Gatsuurt) 

At Boroo, 2012 sustaining capital expenditures are expected to be about $3
million primarily for component change-outs and mill maintenance. Growth capital
is forecast at $12 million, which includes capitalized pre-stripping costs of
Pit 6 at Boroo ($11 million).


No capital for the development of the deeper sulphide ores at Gatsuurt has been
forecast and will only be invested following successful regulatory commissioning
of the Gatsuurt oxide project. The engineering and construction of the
bio-oxidation facility to be located at the Boroo mill, which is needed to treat
Gatsuurt sulphide ores, will be restarted only after the approval to begin
mining at Gatsuurt has been received from the Government of Mongolia. 


2012 Corporate Administration and Community Investment 

Corporate and administration expenses for 2012 are forecast at $41 million. 

Total community investments for 2012 are forecast at $26 million, in accordance
with Centerra's Community Investment policy. This investment includes $5 million
for donations and sustainable development projects in the various communities
Centerra operates in and $21 million for strategic community investment
projects. Note that these costs are not included in cash cost per ounce. 


Centerra has a history of investing in various community sustainable development
and strategic investment projects in the countries and communities where it
operates. For example in 2010, Boroo invested $6.4 million towards the
construction of a new maternity hospital in Ulaanbaatar and in 2011 Kumtor
contributed $10 million for the construction and repair of 27 schools throughout
the Kyrgyz Republic. The Company intends to include community investment as part
of its regular guidance.


Regulatory Matters 

In January 2012, Centerra's wholly owned subsidiary, Boroo Gold LLC, which owns
the Boroo project, resolved the previously disclosed very significant claim for
compensation that it received from the Mongolian General Department of
Specialized Inspection ("SSIA") in October 2009 following the June 2009
inspection at the Boroo project. The claim related to certain mineral reserves,
including state alluvial reserves, covered by the Boroo project licenses, that
are recorded in the Mongolian state reserves registry, but for which there are
no or incomplete records or reports of mining activity. Pursuant to the
resolution, Boroo Gold LLC will pay approximately $2.5 million. While this claim
has been resolved, other regulatory issues remain outstanding in Mongolia,
including the issuance of a final heap leach permit.


Major Assumptions 

The following material assumptions have been used to forecast production, costs
and future capital expenditures;




--  a gold price of $1,700 per ounce, 
--  exchange rates: 
    --  $1USD:$1.01 CAD 
    --  $1USD:46.00 Kyrgyz Som 
    --  $1USD:1,235 Mongolian Tugrik 
    --  $1USD:0.74 Euro
--  diesel fuel price assumption: 
    --  $0.71/litre at Kumtor 
    --  $1.13/litre at Boroo



The assumed diesel price of $0.71/litre at Kumtor assumes that no Russian export
duty will be paid on the fuel exports from Russia to the Kyrgyz Republic.


Diesel fuel is sourced from separate Russian suppliers for both sites and only
loosely correlates with world oil prices. Political and supply pressures and
policies may cause the average price of fuel from Russia to be higher. The
diesel fuel price assumptions were made when the price of oil was approximately
$99 per barrel.


Other important assumptions include the following:



--  Any recurrence of political and civil unrest in the Kyrgyz Republic will
    not impact operations, including movement of people, supplies and gold
    shipments to and from the Kumtor mine, 
--  grades and recoveries at Kumtor will remain consistent with the life-of-
    mine plan to achieve the forecast gold production, 
--  the dewatering program at Kumtor continues to produce the expected
    results and the water management system works as planned, 
--  the remedial plan to deal with the Kumtor waste and ice movement
    continues to be successful, see "Kumtor Mine - Geotechnical Issues
    Affecting the Kumtor Open Pit" in the Company's annual information form
    for the year ended December 31, 2010, 
--  no unplanned delays in or interruption of scheduled production from our
    mines, including due to civil unrest, natural phenomena, labour,
    regulatory or political disputes, equipment breakdown or other
    developmental and operational risks, 
--  domestic inflation rates remain stable, 
--  no further suspension of Boroo's operating licenses, and 
--  all necessary permits, licences and approvals are received in a timely
    manner. 



Production and cost forecasts and capital estimates are forward-looking
information and are based on key assumptions and subject to material risk
factors. If any event arising from these risks occurs, the Company's business,
prospects, financial condition, results of operations or cash flows could be
adversely affected. Additional risks and uncertainties not currently known to
the Company, or that are currently deemed immaterial, may also materially and
adversely affect the Company's business operations, prospects, financial
condition, and results of operations or cash flows. See the sections entitled
"Risk Factors" in the Company's most recently filed annual information form,
available on SEDAR at www.sedar.com and see also the discussion below under the
heading "Cautionary Note Regarding Forward-looking Information". 


Qualified Person 

The production information and other scientific and technical information in
this news release were prepared in accordance with the standards of the Canadian
Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") and were reviewed,
verified and compiled by Centerra's geological and mining staff under the
supervision of Ian Atkinson, Certified Professional Geologist, Centerra's Senior
Vice-President, Global Exploration, who is the qualified person for the purpose
of NI 43-101.


The Kumtor deposit is described in Centerra's most recently filed Annual
Information Form (the "AIF") and a technical report dated March 22, 2011
prepared in accordance with NI 43-101. The technical report has been filed on
SEDAR at www.sedar.com. The technical report describes the exploration history,
geology and style of gold mineralization at the Kumtor deposit. Sample
preparation, analytical techniques, laboratories used and quality
assurance-quality control protocols used during the drilling programs at the
Kumtor site are described in the technical report.


The Boroo deposit is described in Centerra's most recently filed AIF and a
technical report dated December 17, 2009 prepared in accordance with NI 43-101,
which is available on SEDAR at www.sedar.com. The technical report describes the
exploration history, geology and style of gold mineralization at the Boroo
deposit. Sample preparation, analytical techniques, laboratories used and
quality assurance-quality control protocols used during the drilling programs at
the Boroo site are the same as, or similar to, those described in the technical
report.


Cautionary Note Regarding Forward-looking Information   

This news release and the documents referred to herein contain statements which
are not statements of current or historical facts and are "forward-looking
information" within the meaning of applicable 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.
Wherever possible, words such as "believe", "expect", "anticipate",
"contemplate", "target", "plan", "intends", "continue", "budget", "forecast",
"projections", "estimate", "may", "will", "schedule", "potential", "strategy"
and other similar expressions have been used to identify forward-looking
information. These forward-looking statements relate to, among other things, the
discussion under the heading "2012 Outlook", including the forecasted gold
production and cash costs, exploration expenditures and exploration plans,
capital expenditures, community investments and corporate administration,
Centerra's expectations regarding the impact of the Water and Forest Law on the
Company's Mongolian operations, business and political environment and business
prospects including the timing and development of new deposits (including the
ATO deposit) and the success of exploration activities. 


Although the forward-looking information in this news release reflects
Centerra's current beliefs as of the date of this news release based on
information currently available to management and based upon what management
believes to be reasonable assumptions, Centerra cannot be certain that actual
results, performance, achievements, prospects and opportunities, either
expressed or implied will be consistent with such forward-looking information.
Forward-looking information is necessarily based upon a number of estimates and
assumptions that, while considered reasonable by Centerra, are inherently
subject to significant political, business, economic and competitive
uncertainties and contingencies. Known and unknown factors could cause actual
results to differ materially from those projected in the forward-looking
information. 


Material assumptions used to forecast production and costs include those
described under the heading "Major Assumptions". 

Other factors that could cause actual results or events to differ materially
from current expectations include, among other things: the sensitivity of the
Company's business to the volatility of gold prices; the political risks
associated with the Company's operations in the Kyrgyz Republic and Mongolia;
the impact of changes in, or more oppressive enforcement of, laws, regulations
and government practices in the jurisdictions in which the Company operates; the
effect of the November 2010 amendments to the 2006 Mongolian Minerals Law on the
royalty payments payable in connection with the Company's Mongolian operations;
the effect of the Water and Forest Law on the Company's operations in Mongolia;
the impact of continued scrutiny from Mongolian regulatory authorities,
including further investigations by the SSIA and other Mongolian regulatory
authorities; in the Kyrgyz Republic, the impact of changes to, or the increased
enforcement of, environmental laws and regulations relating to the Company's
operations; the Company's ability to replace its reserves; ground movements at
the Kumtor mine; waste and ice movement at the Kumtor mine; litigation; the
accuracy of the Company's reserves and resources estimate; the accuracy of the
Company's production and cost estimates; the success of the Company's future
exploration and development activities; competition for mineral acquisition
opportunities; the adequacy of the Company's insurance; environmental, health
and safety risks; defects in title in connection with the Company's properties;
the impact of restrictive covenants in the Company's revolving credit facility;
the Company's ability to successfully negotiate an investment agreement for the
Gatsuurt development property to complete the development of the mine and the
Company's ability to obtain all necessary permits and commissions needed to
commence mining activity at the Gatsuurt development property; seismic activity
in the vicinity of the Company's operations in the Kyrgyz Republic and Mongolia;
long lead times required for equipment and supplies given the remote location of
the Company's properties; illegal mining on the Company's Mongolian properties;
the Company's ability to enforce its legal rights; the Company's ability to
accurately predict decommissioning and reclamation costs; the Company's ability
to obtain future financing; the impact of current global financial conditions;
the impact of currency fluctuations; the effect of recent market conditions on
the Company's short-term investments; the Company's ability to attract and
retain qualified personnel; the Company's ability to make payments including
payments of principal and interest on the Company's debt facilities; risks
associated with the conduct of joint ventures; risks associated with the
Company's largest shareholder, Kyrgyzaltyn JSC; and possible director conflicts
of interest. 

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 most
recently filed AIF available on SEDAR at www.sedar.com.


Furthermore, market price fluctuations in gold, as well as increased capital or
production costs or reduced recovery rates may render ore reserves containing
lower grades of mineralization uneconomic and may ultimately result in a
restatement of reserves. The extent to which resources may ultimately be
reclassified as proven or probable reserves is dependent upon the demonstration
of their profitable recovery. Economic and technological factors which may
change over time always influence the evaluation of reserves or resources.
Centerra has not adjusted mineral resource figures in consideration of these
risks and, therefore, Centerra can give no assurances that any mineral resource
estimate will ultimately be reclassified as proven and probable reserves. 


Centerra's mineral reserve and mineral resource figures are estimates and
Centerra can provide no assurances that the indicated levels of gold will be
produced or that Centerra will receive the gold price assumed in determining its
mineral reserves. Such estimates are expressions of judgment based on knowledge,
mining experience, analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information
becomes available. While Centerra believes that these mineral reserve and
mineral resource estimates are well established and the best estimates of
Centerra's management, by their nature mineral reserve and mineral resource
estimates are imprecise and depend, to a certain extent, upon analysis of
drilling results and statistical inferences which may ultimately prove
unreliable. If Centerra's reserve or reserve estimates for its properties are
inaccurate or are reduced in the future, this could have an adverse impact on
Centerra's future cash flows, earnings, results or operations and financial
condition. 


Centerra estimates the future mine life of its operations. Centerra can give no
assurance that mine life estimates will be achieved. Failure to achieve these
estimates could have an adverse impact on Centerra's future cash flows,
earnings, results of operations and financial condition. 


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 in this news
release. 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 January 17, 2012. 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 Gold Inc. is a gold mining company focused on operating, developing,
exploring and acquiring gold properties primarily in Asia, the former Soviet
Union and other emerging 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 website at
www.centerragold.com and at SEDAR at www.sedar.com.