Mongolian Parliamentary Resolution on Gatsuurt

Parliament of Mongolia passed a resolution setting the state ownership interest in the Gatsuurt Gold Mine, at 34% and authorizing the Government to complete negotiations with Centerra on the terms of such ownership. Gatsuurt Gold Mine was included in a list of strategic deposits that is exempt from the restrictions but requires government ownership in December 2014. Gatsuurt Gold Mine is an open-pit gold mining site in Mongolia located about 110 kilometers north of the capital Ulaanbaatar in Mandal sum of Selenge Province. The Gatsuurt Gold Mine’s estimated mineral reserves as at December 31, 2014 were 17.1 million tonnes at an average grade of 2.9 grams of gold per tonne containing 1.6 million ounces of gold using a cut-off grade of 1.4 grams per tonne.