OMAS kst Gold Project Visit March 2016 Site Visit Itinerary 09:00 - - PowerPoint PPT Presentation

OMAS Öksüt Gold Project Visit – March 2016

Site Visit Itinerary

09:00 – 12:00 Project Review Presentations:

• General – Mike
• Safety and Induction - Tarkan
• Project – Emre
• Operations – Alper. Y
• CR and HR – Alper. S
• Finance – John
• Geology and Core - Mustafa

Project Office Conference Room 12:00 – 13:00 Lunch – Zile restaurant Alper Sezener 13:00 – 17:30 Site Visit:

• Zile Temporary Access
• Keltepe Pit
• Upper Develi Road Access

and HLP – Weather Permitting

• Water Wells Epce Village
• Yusuf Construction Manager
• Alper. Y, Mustafa
• Yusuf, Emre
• Yusuf, Emre

17:30 – 18:30 Travel to Kayseri Ommer Hotel Mıke, Alper, John Shahla Hotel Reservations 3+3 18:30 Drop Adam Melnyk at Aiport Flight TK at19:45 to Istanbul Mike No hotel reservation 18:30 – 19:00 Freshen Up at Hotel 19:00 – 21:30 Dinner Mike, John, Alper Friday 18th March 2016 06:45 Leave hotel for Airport TK 2011 Flight TK 2011 departure 08:40 Mike / Alper

Michael Fischer General Manager Alper Sezener Director External Affairs, HR & Sustainability John Suter Director Finance and Admin Tarkan Yazıcı HSSE&Training Manager Alper Yılmaz Mine Operations Manager Emre Kaytan Project Manager

External Affairs Sustainability Land and Permitting Community Relations Legal Compliance Human Resources Communication Finance Accounting Procurement Supply Chain IT Admin Occupational Health&Safety (Project and Operation) OHS-Training Environment Emergency Response Security Mine Operation Mine Planning Mine Geology Process Maintenance Metallurgy Site HR and Admin Project Management Design&Engineering Construction Commisisioning

OMAS Organization Chart

• As of 1st of March 2016, total 39 employees are in place.
• Key positions are hired for next step.
• Local employment strategy will be implemented for recruitment process as part of existing manpower planning.

Feasibility Study Overview

March 2016

Site Layout – Large Scale

March 2016 5

Öksüt Mineral Reserves

Proven Probable Total Proven & Probable

Zone Tonnes (kt) Grade (g/ t) Contained Gold (koz) Tonnes (kt) Grade (g/ t) Contained Gold (koz) Tonnes (kt) Grade (g/ t) Contained Gold (koz) Keltepe

• 22,821

1.4 1,036 22,821 1.4 1,036

Güneytepe

• 3,316

1.2 125 3,316 1.2 125 Total

• 26,137

1.4 1,162 26,137 1.4 1,162

March 2016 6

Note: Resources clipped using a Whittle shell at US$1,450/oz.

Öksüt Mineral Resources (Exclusive of Reserves)

Classification Unit Keltepe Güneytepe Total

Measured kt 2,024 76 2,100 g/t 0.7 0.5 0.7 koz 44 1 46 Indicated kt 4,450 248 4,698 g/t 0.7 0.7 0.7 koz 106 5 111

Measured I ndicated kt 6,474 324 6,798 g/ t 0.7 0.6 0.7 koz 150 7 157

Inferred kt 1,705 675 2,380 g/t 0.8 1.0 0.8 koz 44 21 64

Measured I ndicated I nferred kt 8,179 1,000 9,179 g/ t 0.7 0.9 0.7 koz 194 28 221

March 2016 7

Production Schedule

• Construction starts in June 2016
• Q3 2017 first gold production
• Due to the fact that Keltepe cutbacks 1 and 2 are significantly

higher grade and lower strip than the final Keltepe cutback, the strip ratio increases significantly and the gold production drops as we transition to that final cutback

– From 2017 – 2020 average gold production is 155koz/yr – From 2021 – 2023 average gold production is 89koz/yr

• Crushing ceases in 2023 but residual gold production from the pad

continues into 2024

March 2016 8

Annual Gold Production and Mine Schedule

0.0 1.0 2.0 3.0 4.0 5.0

• 2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2016 2017 2018 2019 2020 2021 2022 2023

Strip Ratio (w:o) Tonnes

Mine Schedule

Total Ore Total Waste Strip Ratio 50,000 100,000 150,000 200,000 2016 2017 2018 2019 2020 2021 2022 2023 2024

Gold Production

March 2016 9

Fresh Water Supply

• Requirement: 35 l/s, will reduce after Year 2
• Main pumping station at P7
• Property containing the wells has been purchased, and permitted.

March 2016 10

Electrical Power Supply

• Requested connected power supply: 20mVa
• Initial requirement:

8mVa

• Voltage supply, by TEIAŞ

154kV

• FS plan:

– Use TEIAŞ supply at 154kV on a dedicated line from a tie point 28kM from the site

March 2016 11

Financial Model*

(All Figures in millions of US$) Production Profile:

Ore Tonnes (millions) 26.1 Gold Grade 1.38 Waste Tonnes (millions) 51.1 Contained ounces 1,161,758 Recovered ounces 895,220 Gold Price 1,250/oz

Gross Revenue 1,119.0 Operating Costs:

Mining 140.7 Processing 135.1 Administration 83.5 Refining 3.0 Royalties (State, Stratex, and Teck) 35.6

Total OPEX (excludes capital stripping) 397.9

* Tax and Financial Model reviewed by Ernst and Young

March 2016 12

Financial Model

(All Figures in millions of US$) Capital Costs

Sustaining Capital (includes $30 million in capitalized stripping) 39.9 Expansion Capital 184.5 Reclamation 27.0 Government Refunds (12.3) Net Change in WC 0.0

Total Capital Costs (after refunds) 239.1

Total Capital Costs (after refunds & excluding reclamation) 212.1

EBI TDA 721.1

Undiscounted Pre-Tax CF (includes refunds) 482.0 Income Taxes* 46.0

After Tax Undiscounted CF 436.0

* Centerra is eligible for tax incentives under an Investment Incentive Certificate which are estimated to be worth $62 million at $1,250/oz gold

March 2016 13

Project Valuation Going Forward

• 200

400 600 800 1,000 2017 2018 2019 2020 2021 2022 2023 2024 AISC Growth Capital & Taxes

(US$/oz)

(200)

• 200

400 600 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Cumulative (US$M) Discount Rate 0% 5% 8% 10% Gold Price US$1,050

298.2 (137.7) 195.6 (106.1) 150.5 (91.5) 125.5 (83.3)

US$1,150

367.0 (68.9) 249.0 (52.7) 196.7 (45.3) 167.6 (41.2)

US$1,250 435.9 301.7 242.0 208.8 US$1,350

497.0 61.1 348.4 46.7 282.1 40.1 245.2 36.4

US$1,450

567.1 131.2 400.3 98.6 326.7 84.7 285.5 76.7

All In Unit Costs

(avg. LOM AISC = $490/oz)

Free Cashflow NPV Sensitivities

• 15%

Base Case + 15% Operating Costs

271.2

242.0

212.8

Capital Costs

269.7

242.0

214.3

Gold Grade

157.8

242.0

325.6

Process Recovery

157.8

242.0

325.6

At a gold price of $767 per ounce and an 8% discount rate the project is cash flow neutral, but meets all foreseen capital and operating expenses including taxes

March 2016 14

Valuation – Returns on Oksut Project

Projected Cashflow (US$M)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Incremental (19.7) (159.0) 15.1 140.2 170.2 111.5 55.5 62.1 46.9 11.7 1.4 Cumulative1-Aug-2015

(19.7) (178.7) (163.6) (23.4) 146.8 258.3 313.8 375.9 422.8 434.5 435.9

2015 – 2025 Cash Flows Valuation Unit Value

NPV0% US$M 435.9 NPV5% US$M 301.7 NPV8% US$M 242.0 NPV10% US$M 208.8 IRR % 42.5

March 2016 15

Öksüt: Fully Funded High Margin Gold Producer

Mine Type Open Pit, Heap Leach

• Avg. LOM Annual Production

110koz Au

• Avg. LOM AISC1 (US$/oz)

$490 Reserve Mine Life 8 years Development Capex (US$MM) $221 Reserves6 (Moz) at $1,250 gold 1.2 Au grade (g/t) 1.40 Life of Mine Strip Ratio (w:o) 2:1 First Gold Pour Q3-2017 IRR (after tax) 43% NPV(8%) - after tax >$240MM

2015 Feasibility Highlights

EIA approval received in November 2015 Construction expected in mid-2016 Heap leach processing start expected mid-2017 2 stage crushing, stack at 11,000 tpd Life of mine recovery of 77% Significant exploration upside Bought back Stratex and Teck royalties

Near-Term Gold Production

0.00 0.50 1.00 1.50 2.00 2.50 50 100 150 200 250 2016 2017 2018 2019 2020 2021 2022 2023 2024

Process Grade (g/tonne) Gold Production (000's)

Catalyst Schedule

16

Öksüt Gold Project

March 2016

Öksüt Social & Environmental Performance

Öksüt

Project Location

World‐class deposits Kışladağ (17 Moz), Çöpler (10 Moz) Smaller high‐grade deposits Kaymaz, Ovacık, Mastra,Efemçukuru, Bolkardağ

18 March 2016

Oksut Gold Project

• ~300km south‐east of Ankara; ~60km south of

Kayseri; and 8 km south of Develi Town in the Central Anatolia Region.

• Population of Kayseri city is 1.25 million.
• Population of Develi Town 64,381.

Settlement Population Develi center 64,381 Gazi 1,178 Epçe 882 Gömedi 90 Öksüt 608 Tombak 219 Sarıca 371 Zile 430 Yazıbaşı 266

Öksüt

Location & Settlements

19 March 2016

Öksüt

Topography and Terrain

20 March 2016

Öksüt

Baseline & Impact Studies

• Feasibility Study (NI 43‐101 compliant)

preliminary draft completed for internal review.

• Turkish EIA document completed and EIA

Granted 9th November 2015.

• International standard ESIA nearing

completion and 60 day public comment period starting April 2016.

• Water access and quality deemed a key

focus area for the baseline and impacts assessments.

• New social, environmental and H&S

management systems – including EMP/SMP components per our ESIA commitments.

21 March 2016

Öksüt

Turkish EIA

• Community engagement
• Current land use patterns
• Sensitive areas
• Socio‐economics
• Ecology & Biodiversity
• Air quality (PM10, SO2 and NOX)
• Geochemistry & water quality
• Soil quality
• ARD assessments
• Waste management
• Hydrology & hydrogeology
• Alternatives
• Cumulative Impacts

22 March 2016

Öksüt

Proactive Stakeholder Engagement

• An

interim Stakeholder Engagement Plan (SEP) is currently being implemented and tracked.

• Öksüt,

Zile, Gazi, Sarıca & Tombak quarters identified as potential impacted areas.

• Epçe and Gümüşören quarters initiated

for the more recent for access road and water supply studies.

• OMAS have aimed to provide timely and

reliable information in a culturally appropriate manner about

• ur
• ngoing

exploration activities and various EIA, ESIA and feasibility studies.

• We have communicated in a context of

uncertainty whilst always seeking to minimize community tensions. Consistent & meaningful engagement: Proactively addressing perceptions/concerns and managing expectations

Number of Stakeholder Meetings in 2015

334 stakeholder

meetings held in 2015

23 March 2016

49 76 83 82 14 2 2 10 30 49 49 58 20 40 60 80 100 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Consultation Meeting Disclosure Meeting Regular Visit Öksüt Quarter 77 Zile Quarter 85 Gazi Quarter 25 Sarıca Quarter 28 Tombak Quarter 26 Yukarı Develi Quarter 10 Yazıbaşı Quarter 15 Gömedi Quarter 17 Epçe Quarter 43

Öksüt

Proactive Stakeholder Engagement

Öksüt

Accessible Grievance Resolution

• Fully implemented the Centerra Standard that is based on proven international good

practice.

• Creates an opportunities to identify problems and discover solutions together. Avoids

conflict.

• For our local stakeholders:
• To have a consistent and reliable channel to raise concerns about any impacts.
• An early, faster and more affordable option for remedy.
• For us:
• Strengthens our local credibility
• Early warning for community concerns.
• Addresses and resolves concerns and issues before they escalate.
• Promotes mutual confidence and trust with our local stakeholders

Building local legitimacy & credibility : demonstrating our accountability and

responsiveness to local community issues and mitigating our ongoing and emerging impacts.

25 March 2016

Grievance Resolution

# % resolved within the targeted timeframe # of unresolved Grievances (cumulative) 2015 Q1-2016 2015 Q1-2016 2015 Q1-2016

1

Öksüt

Appropriate Community Investment

• We are focused on relationships not benefit negotiations.
• Not about a short term objective of racing to ‘make a deal’ or buying popularity.
• High expectations but have avoided engendering community dependency or acting paternalistically.
• Total investment ~$50k (₺138k) spent in 2015 from an approved budget of $100k.
• Total budget $250K for 2016.

Consistent and proportional to the actual project stage: Providing good faith

support for locally identified needs focusing on self‐help and active partnerships.

Projects

Donations

Traditional meat and food package for poor residents for Ramadan and Sacrifice Holy Days

Quick Impact

Physical Renovation of Oksut Primary School, School needs support to Oksut and Zile Quarters, Mosque Renovation in Zile Quarter, Disabled people support program; Waste Management support via garbage bin supply to the communities;

Community Awareness

Dental Check for School Children at the 5 neighbor settlements, Health Nutrition & Hygiene Training, Health Check/Awareness Program for Women at the neighbor settlements, Healthh Nutrition and Hygiene training program

Cultural

Painting Competition Organization for Zile Primary School's Children, Sponsorship to Develi Town Festival, Cultural Activities Support for Develi Town

TOTAL

26 March 2016

Öksüt

Responsible Mining Stewardship

Current Stakeholder Concerns

• Access to grazing pasture

lands

• Cyanide use and health

impacts

• Impacts to water sources &

irrigated agricultural lands

• Expectations for job and

contract opportunities for nearby villages

• Requests for increased

frequency of engagement

• An appetite for information

about the project

Operational Readiness: E&S Performance Management

• Conduct an international standard Social

Impact Assessment (ESIA) ‐ record baseline conditions , identify and mitigate impacts and capitalize on shared value opportunities.

• Draft an operationally focused

Environment/Social Management Plan (E/SMP)

• Begin to draft Operational Plans and SoPs as

part of the Management System (and implementation started).

• Livelihoods Restoration (pastureland)
• Social Obligations/Commitments
• Stakeholder Engagement (updated)
• Local Content (procurement & labour)
• Contractor Management
• Cultural Heritage Management
• Update and revise Stakeholder Engagement

Plan

• Improve Communications ‐ brochures, 3D

model, ‘fly‐over’ videos and photomontages.

27 March 2016

28

Sustainability: Strategic Objectives for 2016

Strategic Objectives

Key Milestones

I nitiatives Planned

(New or Continuing) KPI s

Regular Stakeholder Engagement Regular formal and informal engagement sessions with local communities and local government

• fficials were done during 2016.

Grievance procedure was followed up. Weekly meetings with village/quarter muhtars Monthly public meetings in the villages/quarters Monthly meetings with Develi Mayor, Develi Sub-district Governor and district

• fficials

Quarterly Meeting with Kayseri Governor Information Meetings with MIGEM, relevant senior officials of Ministry of Energy and Natural Resorces, Ministry of Environment and Urbanization and other directorates in Ankara every 6 months. Quarterly Project Newsletter was prepared. Stakeholder Engagement Schedule was prepared for 2016. All meeting minutes was be recorded and feedbacks, concerns or complaints was adressed weekly basis. All type community grievances were recorded daily and closed within a month. Quarterly Project Newsletter was prepared and distributed 4 times in a year. Implementation of CSR Programs Quick impact and short term CSR programs were implemented at the mine neighbor settlements in accordance with 2016 CSR Programs

• f OMAS.

Handmade Carpet Production, Renovation

• f the Village/Quarters Schools,

Improvement of Village/Quarters Infrastructure, Traffic Safety Awareness Trainings for Students, Women Health Awareness Trainings, Supporting the School Libraries, Supporting the Children Days Organizations during National Sovereignty and Children's Day, Supporting the School Teams, Sheep Farming Protection, Ramadan and Sacrifice Donations to the Poor People, Support to Develi Culture Festivals. CSR Projects were implemented and followed up in accordance with planned schedule and budget. Total 11 specific projects. Budget estimation for 2016 is 250,000 USD.

29

Sustainability: Strategic Objectives for 2016

Strategic Objectives

Key Milestones

I nitiatives Planned

(New or Continuing) KPI s

Increasing of Local Employment & Procurement Opportunities Local employment and procurement

• pportunities were increased in

accordance with existing procedures during the year. Existing Local employment and procurement plans were implemented and followed up by contractors and OMAS. Local employment and procurement database system was established. Recruitment and Selection Criterias for local hire process was implemented. Employment tools were used such like Vienna Test System during hire proces. Priority employment and procurement zones updated in accordance with projects requirements. Local level Employment Targets: 90% Local level hire for unskilled workers; 40% local level hire for skilled workers; 90% national level hire for all levels. Local Procurement will be linked with local

• sources. Long term business opportunities

to be created for locals. Implementation of National EIA and International ESIA EIA and ESIA commitments were implemented regularly and monitored in cooperation with external consultants every 3 months. Turkish EIA Requirements were implemented in accordance with legal commitments. EBRD Environmental and Social Requirements were implemented in accordance with ESIA commitments. Social and Environment Management Plans and relevant registers was established and updated in timely manner. Target: 100% compliance for EIA and ESIA commitments according to yearly plans. EIA and ESIA commitment register updated monthly. External Monitoring for compliance control done every 3 months. Conducting Responsible Mining Trainings 100% of construction and operation personnel (both contractor and OMAS) received training in responsible mining until end of the year. All employees were trained regarding OHS, environmental and social responsibilities, code of conduct and corrective actions as part of national and international commitments of OMAS. Target: All employees (contractors and OMAS) Training Participation Record and Certification. 2 hours induction per employee. Yearly refreshment of the training.