TORONTO, ONTARIO -- (MARKET WIRE) -- 02/06/07 -- Centerra Gold Inc. (TSX: CG) today reported net earnings of $1.9 million ($0.01 per common share) on revenue of $88.4 million in the fourth quarter, compared to net earnings of $6.4 million ($0.03 per common share) on revenue of $75.0 million in the same quarter of last year. Cash provided by operations, net of working capital changes and other operating items, was $26.6 million compared to $4.8 million in the fourth quarter of 2005. Gold production, on a 100% basis, totaled 142,000 ounces at a total cash cost of $473 per ounce in the fourth quarter compared to 167,000 ounces at a total cash cost of $300 per ounce in the corresponding quarter of 2005. The Company implemented a 3-for-1 share split by way of a stock dividend effective June 1, 2006, which is reflected in all current and historic per share metrics in this release.

Fourth quarter 2006 results reflect lower gold production at Kumtor due to lower ore grades, recoveries and throughput, as a result of changes in the mine plan stemming from the pit wall ground movement in July 2006, the accrual of $6 million for the government mandated high altitude co-efficient settlement at Kumtor, that had the effect of increasing salaries of national employees at mine site, and a $1.2 million land tax settlement payment at Kumtor. These were partially offset by higher realized gold prices, and a tax recovery of $8.1 million primarily resulting from tax benefits recognized by Kumtor Gold Company.

For the 12 months of 2006, net earnings were $60.6 million ($0.28 per common share) on revenue of $364.5 million and cash provided by operations amounted to $94.6 million, net of working capital changes and other operating items. Gold production, on a 100% basis, totaled 586,000 ounces at a total cash cost of $386 per ounce. In the comparable period of 2005, Centerra reported net earnings of $42.4 million ($0.20 per common share) on revenue of $338.6 million and cash provided by operations of $83.4 million, net of working capital changes and other operating items. In 2005, gold production was 787,000 ounces at a total cash cost of $241 per ounce.

The higher year-over-year net earnings reflects higher realized gold prices due to the substantially higher market prices for gold in 2006, a one-time $13.6 million insurance settlement received during the third quarter of 2006 and a tax recovery of $5.8 million. This is partially offset by lower gold production at the Kumtor mine due to the revised mine plan as a result of the previously reported pit wall movement in July 2006 and approximately $7 million in additional costs at Kumtor booked in the fourth quarter as discussed earlier.

2006 Highlights

- Centerra's ore reserves total 7.0 million ounces of contained gold at the end of 2006, on a 100% project basis (Centerra's share is 6.9 million ounces); the Company has replaced the 742,000 ounces of contained gold mined in 2006.

- Measured and indicated resources at the end of 2006 total 5.6 million ounces of contained gold on a 100% project basis (Centerra's share is 5.1 million ounces), an increase of 625,000 ounces over 2005.

- The exploration program identified a 1.8 million ounce high-grade inferred resource at depth in the SB Zone at Kumtor, 296,000 ounces of reserves at Sarytor and continues to show positive results at REN expanding the known mineralization.

- Heap leach project approved at Boroo.

- Underground exploration and development program approved for Kumtor.

- Kumtor performed in line with revised mine plan.

- Discussions ongoing with the Mongolian government regarding investment agreements for Boroo and Gatsuurt.

Commentary

"Our exploration program continues to be successful, replacing reserves mined in 2006 and adding significantly to our resources," said Len Homeniuk, President and CEO. "Operationally, the mines continue to perform well. Production at Kumtor was significantly less due to the pit wall movement in July. Despite that, Kumtor met the revised mine plan and Boroo once again exceeded our expectations. Overall, the Company exceeded its revised forecast gold production by 2% for the year, producing over 586,000 ounces of gold. Regarding total cash costs, while they came in at $386 per ounce for 2006, above our forecast range of $370 - 380 per ounce, we would have improved over our forecast if not for the extra costs recorded in December regarding various settlements at Kumtor."

"Additionally, we have committed significant capital in 2007, approximately $110 million, which includes funds to advance the development of an underground program at Kumtor and to add a heap leach facility to Boroo. We are on track to commence the development of the decline at Kumtor to gain underground access to the high-grade SB Zone, which is still open along strike and down dip. Finally, for 2007, we expect to produce approximately 700,000 to 720,000 ounces of gold, about 20% higher than 2006, with total cash costs forecast to be between $375 and $385 per ounce compared to $386 per ounce in 2006."

Reserves and Resources Update

As of December 31, 2006, on a 100% project basis, Centerra's proven and probable reserves totaled 7.0 million ounces of contained gold (Centerra's share is 6.9 million ounces), compared to 7.2 million ounces as of December 31, 2005 (Centerra's share was 7.1 million ounces). Centerra has replaced the 742,000 contained ounces that were mined in 2006.

As of December 31, 2006, on a 100% project basis, Centerra's measured and indicated resources increased 625,000 ounces over the December 31, 2005 figures to total 5.6 million ounces of contained gold (Centerra's share is 5.1 million ounces), compared to 5.0 million ounces (Centerra's share was 4.5 million ounces) as of December 31, 2005.

At Kumtor, 200,000 ounces of reserves were added before accounting for mining 416,000 contained ounces in 2006. The reserve grade increased by 20% from 3.8 g/t to 4.7 g/t due to the higher grade mineralization being delineated in the SB Zone. Measured and indicated resources increased by approximately 500,000 ounces and inferred resources significantly increased by 1.3 million ounces with almost all of this addition being the result of drilling at the SB Zone, which has identified a high grade underground inferred resource. The SB underground inferred resource, which has been outlined below the current ultimate pit design, is estimated to be 1.8 million ounces of contained gold at an average grade of 20.5 g/t and accounts for almost the entire inferred resource.

At Boroo, 343,000 contained ounces have been added, which replaces reserves mined in 2006.

The increase in reserves and resources comes from the continuing positive results of exploration drilling. There is only a minimal increase attributable to using a gold price of $475 per ounce in 2006, up from $400 per ounce in the 2005 reserve estimation.

                             Centerra Gold Inc.
                2006 Year-end Reserve and Resource Summary
                          (as of December 31, 2006)

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Reserves (1)                     (Tonnes and ounces in thousands) (11) (12)
                     ------------------------------------------------------
                               Proven                   Probable
---------------------------------------------------------------------------
Property                Tonnes  Grade Contained    Tonnes  Grade Contained
                                ( g/t) Gold (oz)            (g/t) Gold (oz)
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Kumtor                  12,014    4.9     1,893    19,426    4.6     2,852
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Boroo                    5,294    2.6       449    19,230    1.3       785
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Gatsuurt                     -      -         -     9,101    3.4     1,005
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Total                   17,308    4.2     2,342    47,757    3.0     4,642
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Reserves (1)                     (Tonnes and ounces in thousands) (11) (12)
                     ------------------------------------------------------
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                     Total Proven and Probable Reserves
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Property                Tonnes  Grade Contained       Centerra      Mining
                                 (g/t) Gold (oz)     Share (oz)   Method(4)
                                                            (3)
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Kumtor                  31,440    4.7     4,745          4,745          OP
---------------------------------------------------------------------------
Boroo                   24,523    1.6     1,234          1,173          OP
---------------------------------------------------------------------------
Gatsuurt                 9,101    3.4     1,005          1,005          OP
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Total                   65,064    3.3     6,984          6,923
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Measured and
 Indicated Resources (2)         (Tonnes and ounces in thousands) (11) (12)
                     ------------------------------------------------------
                             Measured                  Indicated

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Property                Tonnes  Grade Contained    Tonnes  Grade Contained
                                ( g/t) Gold (oz)            (g/t) Gold (oz)
---------------------------------------------------------------------------
Kumtor (5) (6)          17,710    3.5     1,964    14,810    3.2     1,538
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Boroo (5) (8)              680    2.0        45     5,519    1.4       240
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Gatsuurt (9)                 -      -         -     6,238    3.0       607
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REN (10)                                            2,991   12.7     1,220
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Total                   18,390    3.4     2,009    29,558    3.8     3,605
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Measured and
 Indicated Resources (2)         (Tonnes and ounces in thousands) (11) (12)
                     ------------------------------------------------------
---------------------------------------------------------------------------
                     Total Measured and Indicated Resources
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Property                Tonnes  Grade Contained       Centerra      Mining
                                 (g/t) Gold (oz)     Share (oz)   Method(4)
                                                            (3)
---------------------------------------------------------------------------
Kumtor (5) (6)          32,520    3.3     3,502          3,502          OP
---------------------------------------------------------------------------
Boroo (5) (8)            6,199    1.4       284            270          OP
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Gatsuurt (9)             6,238    3.0       607            607          OP
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REN (10)                 2,991   12.7     1,220            756          UG
---------------------------------------------------------------------------

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Total                   47,948    3.6     5,613          5,135
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Inferred Resources (2)           (Tonnes and ounces in thousands) (11) (12)
                      -----------------------------------------------------
                                 Inferred
---------------------------------------------------------------------------
Property                Tonnes  Grade Contained       Centerra      Mining
                                 (g/t) Gold (oz)     Share (oz)   Method(4)
                                                            (3)
---------------------------------------------------------------------------
Kumtor (5), (6)            571    2.2        40             40          OP
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Kumtor SB Underground(7) 2,781   20.5     1,830          1,830          UG
---------------------------------------------------------------------------
Boroo (5) (8)            7,772    1.0       240            228          OP
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Gatsuurt (9)             2,437    3.3       256            256          OP
---------------------------------------------------------------------------
REN (10)                   835   16.1       432            268          UG
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Total                   14,396    6.0     2,798          2,622
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(1)  The reserves have been estimated based on a gold price of $475 per
     ounce.
(2)  Mineral resources are in addition to reserves. Mineral resources that
     are not mineral reserves do not have demonstrated economic viability
     when calculated using mineral reserve assumptions.
(3)  Centerra's equity interests are: Kumtor 100%, Gatsuurt 100%, Boroo 95%
     and REN 62%.
(4)  "OP" means open pit and "UG" means underground.
(5)  Open pit resources occur outside the current ultimate pits which have
     been designed using a gold price of $475 per ounce.
(6)  The open pit reserves and resources at Kumtor are estimated based on a
     cutoff grade of 1.3 grams per tonne.
(7)  Underground resources occur below the main Kumtor pit shell and are
     estimated based on a cutoff grade of 7.0 grams per tonne.
(8)  The reserves and resources at Boroo are estimated based on a variable
     cutoff grade depending on the type of material and the associated
     recovery. The cutoff grades range from 0.2 grams per tonne to 0.8
     grams per tonne.
(9)  The reserves and resources at Gatsuurt are estimated using either a
     1.2 or 1.9 grams of gold per tonne cutoff grade depending on the
     type of material and the associated recovery. High grade values were
     also cut using variable limits ranging from 20 to 45 g/t Au
     depending on the mineralized zone.
(10) The resources at REN are estimated based on a cutoff grade of 8.0
     grams per tonne.
(11) A conversion factor of 31.10348 grams per ounce of gold is used in the
     reserve and resource estimates.
(12) Numbers may not add up due to rounding.

Kyrgyz Republic

The political situation in the Kyrgyz Republic continues to evolve. The President has gained substantial constitutional powers through constitutional amendments introduced at the end of 2006. The Government resigned on December 19, 2006. A new Prime Minister, Mr. A. Isabekov, was appointed on Feb. 1, 2007, and the new structure of the Government has been approved by Parliament. We expect that the Cabinet will be formed shortly. The Company continues its efforts to establish a closer relationship with local communities to ensure broad-based regional support for its operations.

The newly appointed Prime Minister is engaged in dealing with long outstanding Kumtor issues. Specifically, based on the long-term relationship between the Government of the Kyrgyz Republic and Cameco Corporation as original founders of Centerra, he has invited Cameco to conduct discussions regarding a number of issues concerning Kumtor. Cameco has indicated that it is prepared to discuss these issues with the new government. The positive resolution of these issues would help to provide a stable and favourable operational environment for the Project and an improved investment climate in the Kyrgyz Republic. If the issues between Cameco and the Kyrgyz Republic are not resolved to their mutual satisfaction, the risks to Centerra will increase.

In December 2006, at the direct request of the Government, the Company paid disputed amounts relating to land tax and high altitude premium payable to its Kumtor mine employees. The Company has begun international arbitration with the Government to recover the disputed amounts. The total amount in dispute for 2006 is about $7 million.

Mongolia

The Company continues its negotiations regarding its Boroo stability agreement and Gatsuurt Investment Agreement with the Mongolian Government amid strong nationalistic sentiment in the country. The Ministry of Finance has alleged certain tax-related violations by the Company and notified it on January 15, 2007 that the Boroo stability agreement will be terminated unless the alleged violations are cured within 120 days. The Company has responded that in all cases it has either remedied the alleged violations or strongly disputes that a violation exists. The Company believes that this dispute will be fully resolved as part of the negotiations on the Boroo and Gatsuurt agreements.

The Mongolian Parliament continues to debate the recent changes to mining legislation and the applicability of windfall profit tax as well as State participation in various mining projects. The Government has acknowledged that the windfall tax will not apply to the Boroo project; however, it has not yet agreed to provide similar protection with respect to the windfall tax and other changes to the Company's Gatsuurt project.

Pursuant to an agreement between Centerra Gold Mongolia Limited ("CGM") and Gatsuurt LLC, an arm's length Mongolian company, under which CGM acquired the Gatsuurt licenses, CGM agreed to transfer the principal license covering the Gatsuurt property to Gatsuurt LLC if CGM did not complete a feasibility study by December 31, 2005. CGM completed a feasibility study in 2005. As previously reported, in early 2006 Gatsuurt LLC informed Centerra that it did not believe that CGM complied with its obligation. Gatsuurt LLC has recently begun proceedings in the Mongolian national arbitration court alleging non-compliance by CGM and seeking the return of the license. CGM intends to contest the jurisdiction of the arbitration court and continues to believe that the Gatsuurt LLC claim is without merit.

Financial Summary

Centerra's unaudited consolidated financial results for the three and twelve months ended December 31, as set out below.

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                                 Three months ended    Twelve months ended
                                        December 31            December 31
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Financial Highlights              2006         2005      2006         2005
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Revenue - $ millions (1)          88.4         75.0     364.5        338.6
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Gross profit - $ millions (2)     10.2         19.9      89.4         92.5
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Net earnings (loss) - $ millions   1.9          6.4      60.6         42.4
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Earnings (loss) per common share
 - $ - basic and diluted (3)      0.01         0.03      0.28         0.20
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Cash provided by operations -
 $ millions                       26.6          4.8      94.6         83.4
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Weighted average shares
 outstanding - basic -
 (thousands) (3)               216,239      216,239   216,239      216,239
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Operating Highlights
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Tonnes mined - 000s             28,295       25,567   103,998       99,620
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Tonnes ore mined - 000s          1,851        2,998     6,969        9,000
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Tonnes milled - 000s             1,947        2,014     8,083        7,880
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Ounces poured                  142,291      166,704   586,384      787,275
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Ounces sold                    146,254      157,665   610,441      781,274
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Average realized price -
 $/oz (1)                          604          476       597          433
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Gold spot market price - $/oz
 - average for period              606          485       602          445
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Total cash cost (4) - $/oz         473          300       386          241
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(1) Net of the effect of gold hedges, closed in 2004.
(2) Gross profit is defined as total revenues less cost of sales and
    depreciation, depletion and reclamation and accretion.
(3) All periods reflect a three-for-one stock split by way of stock
    dividend, effective June 1, 2006.
(4) Total cash cost is a non-GAAP measure and is discussed under "Non-GAAP
    Measure - Total Cash Cost".

Fourth Quarter 2006

Fourth quarter revenue in 2006 was $88.4 million compared to $75.0 million in the fourth quarter of 2005 reflecting the significantly higher gold prices, offset by lower production volume. Centerra realized an average gold price of $604 per ounce for the fourth quarter, a significant increase over the $476 per ounce realized in the same quarter of 2005.

Total production for the three months ended December 31, 2006 at the Kumtor and Boroo mines was 142,000 ounces of gold. This compares to production of 126,000 ounces of gold in the third quarter of 2006 and 167,000 ounces of gold in the fourth quarter of 2005. The improvement over the third quarter is the result of Boroo exceeding expectations, but the lower production level in the fourth quarter of 2006 compared to the same period in 2005 was due primarily to reduced production at Kumtor resulting from the mine pit wall movement in July and lower mill grade at Kumtor, which was only partially offset by higher production at Boroo.

Using the Gold Institute standard, Centerra's total cash cost per ounce of gold was $473 for the fourth quarter, compared to $300 recorded in the same period of 2005. The increase mainly reflects lower production at the Kumtor mine as a result of lower mill grades and recovery and the additional costs booked in the fourth quarter at Kumtor. (Total cash cost is a non-GAAP measure and is discussed under "Non-GAAP Measure - Total Cash Cost" in this press release.)

The Company reported net earnings of $1.9 million or $0.01 per share in the fourth quarter of 2006, compared to net earnings of $6.4 million or $0.03 per share in the fourth quarter of 2005 due to lower gold production, a $6.0 million accrual for the high altitude co-efficient settlement and a $1.2 million land tax settlement at Kumtor partially offset by higher realized gold prices, and a tax recovery of $8.1 million primarily resulting from the tax benefit of the losses incurred at Kumtor.

For the three months ended December 31, 2006, cash provided by operations was $26.6 million compared to $4.8 million reported in the same period a year ago. The increase in cash provided by operations reflects cash provided by working capital, principally due to the increase in accounts payable at Kumtor.

Capital expenditures in the fourth quarter of 2006 amounted to $57.0 million of which $6.7 million was spent on sustaining capital projects. Centerra's cash position at the end of December 2006 was $186.2 million, compared to $202.4 million at December 31, 2005. The Company has no long-term debt or gold hedge positions.

Full Year 2006

Revenues for the twelve months of 2006 were $364.5 million, compared to $338.6 million in the prior period, reflecting the significantly higher realized gold price in 2006, offset by lower ore mined and lower grades at Kumtor. Centerra realized an average gold price of $597 per ounce for the year, a significant increase over the $433 per ounce realized in the same period of 2005.

Consolidated production from the Kumtor and Boroo mines for the full year 2006 totaled 586,000 ounces of gold, compared to 787,000 ounces in 2005. Lower production in the period was due primarily to reduced production at Kumtor resulting from the mine pit wall movement in July, and resulting lower mill grade at Kumtor.

Using the Gold Institute standard, Centerra's total cash cost per ounce of gold was $386 for 2006, compared to $241 recorded in the same period of 2005. The increase mainly reflects lower production at the Kumtor mine as a result of lower head grades and recovery. (Total cash cost is a non-GAAP measure and is discussed under "Non-GAAP Measure - Total Cash Cost" in this press release.)

Net earnings totalled $60.6 million or $0.28 per share for 2006, compared to net earnings of $42.4 million or $0.20 per share in 2005. The higher net earnings was a result of higher realized gold prices, the receipt in the third quarter of a one-time $13.6 million insurance settlement related to the 2002 pit wall failure at Kumtor, and a tax recovery of $5.8 million resulting primarily from the tax benefit of the losses incurred at Kumtor. This was partially offset by an accrual of $6 million for the high altitude co-efficient settlement.

Liquidity and capital resources

Cash provided by operations was $26.6 million for the fourth quarter compared to $4.8 million for the prior year fourth quarter mainly as a result of reduced working capital due to an increase in accounts payable.

Cash used in investing activities in the fourth quarter of 2006 was $56.7 million for capital spending, compared to $14.7 million in the same quarter in 2005. In the fourth quarter, $6.7 million was spent on sustaining capital projects while $50.0 million was spent on growth projects, mainly additional mobile mining equipment at Kumtor.

For the full year, cash provided by operations was $94.6 million compared to $83.4 million for the prior year reflecting the higher net earnings which included the insurance settlement of $13.6 million received in the third quarter.

Cash used in investing activities for 2006 was $110.9 million for capital spending, compared to $33.6 million for the same period in 2005. For the full year, $23.9 million was spent on sustaining capital projects while $87.0 million was spent on growth projects, mainly the additional mobile mining equipment at Kumtor.

Cash on hand was $186.2 million at the end of the fourth quarter of 2006.

Centerra has sufficient cash to carry out its operational business plan in 2007.

Operations Update

Kumtor

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                                 Three months ended    Twelve months ended
                                        December 31            December 31
---------------------------------------------------------------------------
Kumtor Operating Results          2006         2005      2006         2005
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Sales volume - ounces           66,054       87,333   329,534      498,086
Revenue - $ millions (1)          39.2         40.7     195.9        213.8
Average realized price - $/oz (1)  594          466       594          429
Tonnes mined - 000s             23,018       20,862    85,421       81,038
Tonnes ore mined - 000s          1,048        1,890     3,887        6,135
Tonnes milled - 000s             1,341        1,425     5,696        5,649
Average mill head grade - g/t (2) 2.20         2.77      2.27         3.38
Recovery - %                      69.7         77.6      73.0         81.2
Ounces recovered                66,174       98,368   303,363      497,497
Ounces poured                   62,477       98,973   303,582      501,487
Total cash costs - $/oz (3)        789          352       544          274
Capital expenditures - $ millions 52.3         10.9      95.0         21.5
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(1) Net of the effect of gold hedges, closed out in 2004.
(2) g/t means grams per tonne.
(3)Total cash cost is a non-GAAP measure and is discussed under "Non-GAAP
   Measure - Total Cash Cost".

At the Kumtor mine, gold production was 62,000 ounces in the fourth quarter of 2006, compared to 99,000 ounces in the fourth quarter of 2005. The lower gold production is due to lower ore grades and recoveries reflecting the fact that the mill feed was primarily sourced from the low grade stock piles and the south west pit as result of the change in the mine development plan following the pit wall movement in July 2006.

Total cash costs per ounce, a non-GAAP measure of production efficiency, increased to $789 for the fourth quarter of 2006 from $352 per ounce in the same period in 2005. The 37% reduction in gold production combined with increased tonnages mined, higher operating costs and the $6 million settlement regarding the high altitude co-efficient contributed to the higher total unit cash costs in 2006.

During the fourth quarter of 2006 capital expenditures were $52.3 million, of which $3.6 million was for sustaining capital.

For the full year 2006, gold production was 304,000 ounces, compared to 501,000 ounces in 2005. The lower gold production is due to lower ore grades and recoveries reflecting the fact that the mill feed was primarily sourced from the low grade stock piles and the south west pit as result of the change in the mine development plan following the pit wall movement in July 2006.

Total cash costs per ounce a non-GAAP measure of production efficiency, in 2006 increased to $544 from $274 per ounce in the same period in 2005. Higher total cost per ounce in 2006 was attributable to the significant decrease in gold production over the year combined with increased tonnages mined and higher operating costs during the period.

During the twelve months ending December 31 capital expenditures totaled $95.0 million, of which $10.4 million was for sustaining capital.

Boroo

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                                 Three months ended    Twelve months ended
                                        December 31            December 31
---------------------------------------------------------------------------
Boroo Operating Results           2006         2005      2006         2005
---------------------------------------------------------------------------
Sales volume - ounces           80,200       70,332   280,907      283,188
Revenue - $ millions(1)           49.2         34.3     168.6        124.8
Average realized price - $/oz (1)  613          488       600          441
Tonnes mined - 000s              5,277        4,705    18,577       18,582
Tonnes ore mined - 000s            803        1,108     3,082        2,865
Tonnes milled - 000s               606          589     2,387        2,231
Average mill head grade-(g/t) (2) 4.82         3.85      4.25         4.23
Recovery - %                      85.2         90.8      87.0         91.5
Ounces recovered                80,013       66,295   283,716      277,522
Ounces poured                   79,814       67,731   282,802      285,788
Total cash cost - $/oz (3)         225          223       217          183
Capital expenditures - $ millions  3.6          3.1      13.5         11.4
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(1) Net of the effect of gold hedges, closed out in 2004.
(2) g/t means grams per tonne
(3)  Total cash cost is a non-GAAP Measure and is discussed under "Non-GAAP
     Measure - Total Cash Cost".

At the Boroo mine, gold production was 80,000 ounces in the fourth quarter of 2006, compared to 68,000 ounces in the fourth quarter of 2005. Higher gold production in the quarter was due to the increase in tonnes milled and higher ore grade partially offset by the lower recovery.

Total cash costs per ounce, a non-GAAP measure of production efficiency, increased to $225 for the fourth quarter of 2006 from $223 per ounce in the same period in 2005.

During the fourth quarter of 2006 capital expenditures were $3.6 million, of which $3.4 million was for sustaining capital.

For the full year of 2006, total gold production of 283,000 ounces exceeded the Company's forecast and was 1% below 2005 production levels due primarily to the lower recovery. Total cash cost for the year was $217 per ounce, compared to $183 in 2005, as a result of higher cost of drill and loading equipment rental, higher consumable prices and increased consumption of grinding media.

Capital expenditures for 2006 were $13.5 million of which $12.5 million was for sustaining capital.

Exploration Update

Exploration activities continued to produce positive results during the fourth quarter with expenditures of $6.6 million bringing the total expenditures for the year to $23.0 million.

Kyrgyz Republic

Drilling activities in the fourth quarter of 2006 were focused on the Kumtor pit and the nearby Sarytor target area.

Kumtor Pit

A further four drill holes tested the SB Zone, which is located in the southern end of the pit, during the fourth quarter. These drill holes tested the down dip and strike extensions of the SB Zone with three of the holes testing the deeper elevation levels of the SB zone. All drill holes intersected significant mineralization returning intercepts for the main SB Zone ranging from 2.11 to 29.72 g/t Au along down hole core lengths ranging from 12.7 to 49.8 metres. Hole D1134 intersected the SB Zone at the 3,480 metre elevation on sections 30 and returned assays of 8.2 g/t Au along 49.9 metres, which includes an intercept of 12.3 g/t Au along 26.6 metres. This is the deepest KOC drill hole completed on the SB Zone to date. True widths for the mineralized zones are typically from 70% to 95% of the stated intercepts. The recent drilling has extended the SB Zone down dip on two sections. The SB Zone has now been delineated over a strike length of 360 metres and down dip lengths ranging from 70 to over 600 metres on various drill sections and remains open along strike to the south and in the down dip direction. Drilling of the SB Zone is continuing in the first quarter of 2007 and work is also underway to finalize the location of the portal for the underground decline which will be used for access to evaluate from underground the extent of the higher-grade mineralization and the underground mining conditions.

Kumtor Pit Drilling Results - October 1st to December 31st 2006
                                          From     To    Core
Drill Hole     Location    Zone             (m)    (m) Length (m)  Au (g/t)
---------------------------------------------------------------------------
D1124         North end                  117.8  120.9        3.1      4.12
Section
214        Along strike                  585.4  588.0        2.6      1.73
---------------------------------------------------------------------------
D1126         South end SB zone          257.6  274.5       16.9      2.11
Section 6        Infill                  391.7  404.4       12.7      3.03
                                  incl.  392.4  394.4        2.0     11.01
---------------------------------------------------------------------------
D1127A        South end SB zone          465.7  466.9        1.2      4.11
Section
26             Down dip SB zone          500.1  505.1        5.0      2.42
                        SB zone          509.3  553.3       44.0     10.64
                                  incl.  512.3  517.8        5.5     11.32
                                  incl.  522.6  544.3       21.7     17.44
                        SB zone          565.3  601.7       36.4      6.34
                                  incl.  573.3  597.2       23.9      8.59
                        SB zone          635.4  645.1        9.7      4.87
                                  incl.  638.9  642.1        3.2     10.61
---------------------------------------------------------------------------
D1130A        South end SB zone          462.6  474.4       11.8      2.60
Section
34             Down dip SB zone          487.0  531.0       44.0     14.33
                                  incl.  493.9  511.1       17.2     29.86
                                  incl.  520.6  521.7        1.1     22.02
                        SB zone          545.0  548.2        3.2      3.87
                        SB zone          557.2  561.0        3.8      1.87
---------------------------------------------------------------------------
D1134         South end SB zone          562.2  567.2        5.0      1.61
Section
26             Down dip SB zone          578.8  628.6       49.8      8.16
                                  incl.  579.8  608.4       28.6     11.71
                        SB zone          633.9  637.9        4.0      1.37
                        SB zone          655.9  669.8       13.9      1.57
                        SB zone          672.8  677.7        4.9      1.52
                        SB zone          699.9  720.2       20.3      2.44
                                  incl.  702.9  704.9        2.0      8.24
---------------------------------------------------------------------------
D1135      Central area                  465.8  467.7        1.9      6.07
Section
82             Down dip                  481.5  483.4        1.9      2.41
                                         549.8  556.8        7.0      1.41

Notes

Significant mineralized intervals greater than 1.28 g/t Au

Individual assays are top cut to 60 g/t Au prior to composite calculation

Inclusions are greater than 7.0 g/t Au

True widths for mineralized zones are about 70% to 95% of stated down hole
 interval

One drill hole was drilled in the north end of the pit to test for the extension of the mineralization along strike to the north of the Kumtor pit. The best results averaged 4.12 g/t Au over 3.1 metres. This is the second drill hole that demonstrates that gold mineralization continues to the north of the present pit. The hole was designed to test between section 198, the last continuous zone of mineralization within the pit area and the first quarter drill hole that intersected mineralization at the 3,740 metre elevation with an intercept of 3.27 g/t Au over 13.6 metres. Drilling is continuing in the first quarter of 2007 to further test the northerly strike extension of the Kumtor mineralized structure with widely spaced drill holes at different elevations.

One hole completed in the Central sector of the pit was designed to test for down dip extensions of the South and North zones below the current pit design. The best results averaged 5.73 g/t Au over 1.9 metres and 2.28 g/t Au over 3.0 metres.

Sarytor

In the fourth quarter of 2006, the infill drilling program continued at the Sarytor deposit, which is located immediately to the west of the Southwest Zone and five kilometres from the Kumtor mill. Twenty drill holes totalling 2,358.8 metres were completed during the quarter bringing the totals for the year to 130 holes completed for a total of 29,749 metres of drilling.

The objectives of the program are to systematically in-fill between existing holes to develop a drill spacing to enable conversion of the resource to reserves and to determine the limits of the mineralized horizons. The in-fill drill holes are confirming the continuity of the mineralization with results ranging from 1.28 to 19.97 g/t Au over widths from 1.0 to 79.8 metres. True widths for the mineralized zones are typically from 70% to 95% of the stated intercepts. The infill drilling has confirmed the mineralization between 80 metre wide sections and with the majority of the drill holes returning results as expected and a number of holes returning intercepts better than expected. More detailed infill drilling has been completed on 20 metre wide sections in the north west sector of the deposit and this has also confirmed continuity of the mineralisation at this detailed scale. A new mineralized zone was intersected outside of the main area of drilling for the resource estimate on the northwest corner of the Sarytor deposit where drill hole SR 06-151 returned an intercept of 3.36 g/t Au over 79.8 metres. Additional drilling is planned in the first quarter of 2007 to evaluate the continuity of mineralisation in this area.

A complete listing of the drill results and supporting maps for the Kumtor pit and Sarytor have been filed on the System for Electronic Document Analysis and Retrieval ('SEDAR') and are available at the company's web site at: www.centerragold.com

United States (Nevada)

Drilling on the REN project was completed in mid-November and totaled 1,828 metres for the quarter and 10,250 metres for the year. Two RC pre-collars, one wedge-core hole (RU-105-W4), and one core tail (RU-112C) were completed.

Drill hole RU-112C was drilled to follow up on high grade intercepts in hole RU-100C, which was drilled earlier in the year, and also to test a gap along the north edge of the JB zone. RU-112C returned intercepts of 6.56 g/t over 3.0 metres and 7.25 g/t over 11.6 metres and demonstrated continuity of the mineralization between hole 100C and the older holes.

Drill hole RU 105-W4 was completed from RU-105C one of four wedge holes completed along the north-south Corona dike target to follow up on the high grade intercept of 18.54 g/t over 19.8 metres obtained in hole RU-105C in the second quarter. The hole returned only a low-grade intercept. The 105 zone has now been defined by holes 95C, 105C, and the four 105 wedge holes and the area of high-grade mineralization appears to be relatively narrow. However, the 105C and 95C high-grade intercepts remain open to the south.

Outlook for 2007

For the full year of 2007, Centerra is forecasting consolidated gold production of 700,000 to 720,000 ounces, about 20% higher than 2006. Total cash costs overall are forecast to be $375 to $385 per ounce.

Mining operations at Kumtor in 2007 will take place in both the Central pit and the South West pit. In the Central pit, mining will be focused on targeting the high grade mineralization of the SB Zone. Mining in the north section of the pit has been delayed, as a result of the July 2006 pit wall movement. The mill head grade at Kumtor is expected to increase to average 3.13 g/t in 2007 compared to 2.27 g/t in 2006 and mill recovery is expected to average 79.9% compared to 73.0% in 2006. Production from the mine is expected to increase to between 450,000 and 460,000 ounces of gold at a total cash cost of $440 - $450 per ounce.

At Boroo, the 2007 mine plan will focus on developing the Pit 3 phases and stripping Pit 6 to access oxide ore for blending in the fourth quarter of the year. Total gold production for the year is expected to be 250,000 to 260,000 ounces due primarily to a lower mill head grade which is expected to average 3.64 g/t compared to 4.25 g/t in 2006. Overall recoveries remain constant at 87%.

The Boroo mine plans to construct a 3 million tonne per year heap leach operation in the second quarter of 2007. It is expected to have the heap leach operational in the third quarter of 2007 and average recovery rates for oxide and transition ores are expected to be 50% to 60%. A total of 1.7 million tonnes of low grade material will be leached on the new heap leach pad with stacking commencing in the second half of the year. Total cash cost for the Boroo site in 2007 is expected to be about $250 - $260 per ounce.

In terms of sensitivity of results for 2007, a $25 per ounce change in the gold spot price is anticipated to increase the Company's aggregate revenues, net earnings and cash from operations by approximately $18 million, $15 million ($0.07 per share) and $17 million, respectively.

The Company expects total capital expenditures for 2007 to be approximately $110 million which includes $25 million of maintenance capital. Growth capital is expected to be $85 million, which includes $40 million at Kumtor ($17 million for the development of the SB zone decline and $12 million to pre-strip the SB zone in the Central Pit) and $45 million at Boroo (Heap Leach and Gatsuurt projects accounting for $20 million and $25 million, respectively).

The outlook noted above for the Company is based on the following key assumptions:

- no significant changes in our estimates of future production or costs,

- no delays in or interruption of production from our mines or in our development activities and

- all necessary permits, licences and approvals are received in a timely manner.

Qualified Person

The new drilling results for Kumtor and REN in this news release and on Centerra's website and the scientific and technical information, and resource and reserve estimates 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 Vice President, Exploration, who is the qualified person for the purpose of NI 43-101.

Other Information

The Kumtor deposit is described in Centerra's Annual Information Form (the "AIF") for the year ended December 31, 2005 and in a technical report dated March 9, 2006 prepared in accordance with NI 43-101. The AIF and technical report have 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 the same as, or similar to, those described in the technical report.

The Boroo deposit is described in the AIF and a technical report dated May 13, 2004 prepared in accordance with NI 43-101, which are 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.

The Gatsuurt deposit is described in the AIF and in a technical report dated May 9, 2006 prepared in accordance with NI 43-101. The AIF and technical report have been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Gatsuurt deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Gatsuurt project are the same as, or similar to, those described in the technical report.

The REN project is described in the AIF and in a technical report dated June 15, 2004 prepared in accordance with NI 43-101. The AIF and technical report have been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the REN project. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at REN are the same as, or similar to, those described in the technical report.

Cautionary Note Regarding Forward-looking Statements

Statements contained in this news release including those under the heading "Outlook for 2007", which are not historical facts are forward-looking statements that involve 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 statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things: volatility and sensitivity to market prices for gold; replacement of reserves; equipment failure; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; defects in title; imprecision in reserve estimates; success of future exploration and development initiatives; competition; operating performance of the facilities; environmental and safety risks including increased regulatory burdens; seismic activity, weather and other natural phenomena; failure to obtain necessary permits and approvals from government authorities; changes in government regulations and policies, including trade and tax laws and policies; ability to maintain and further improve positive labour relations; and other development and operating risks. For further discussion of the factors that could cause actual results to differ materially, please refer to Centerra's Annual Information Form and Annual Management's Discussion and Analysis for the year ended December 31, 2005, available on SEDAR at www.sedar.com.

Reserve and resource figures included are estimates and no assurances can be given that the indicated levels of gold will be produced or that Centerra will receive the gold price assumed in determining its 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 the reserve and resource estimates included are well established and the best estimates of Centerra's management, by their nature reserve and resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. 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. The evaluation of reserves or resources is always influenced by economic and technological factors, which may change over time.

Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. Measured and indicated resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration. Centerra reports its reserves and resources separately.

If Centerra's reserve or resource estimates for its gold properties are inaccurate or are reduced in the future, this could have an adverse impact on Centerra's future cash flows, earnings, results of operations and financial condition.

Centerra estimates the future mine life of its operations. No assurance can be given 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.

Although Centerra believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. Centerra disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by Canadian securities laws.

About Centerra

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

Conference Call

Centerra invites you to join its fourth-quarter, year-end conference call on Wednesday, February 7, 2007 at 11:00 am. Eastern Time. The call is open to all investors and the media. To join the call, please dial (416) 620-7069 (International callers) or (877) 871-4065 (Toll-Free Canada and U.S.). Alternatively, an audio feed web cast will be available on www.centerragold.com. A recording of the call will be available on www.centerragold.com shortly after the call, and via telephone until midnight on Wednesday, February 14, 2007 by calling (416) 626-4100 or (800) 558-5253 and using passcode 21326590.

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

Non-GAAP Measure - Total Cash Cost

This news release presents information about total cash cost of production of an ounce of gold for the operating properties of Centerra. Except as otherwise noted, total cash cost per ounce is calculated by dividing total cash costs, as determined using the industry standard published by the Gold Institute, by gold ounces produced for the relevant period.

Total cash costs, as defined in the Gold Institute standard, include mine operating costs such as mining, processing, administration, royalties and production taxes, but exclude amortization, reclamation costs, financing costs and capital, development and exploration. Income taxes and certain amounts of stock-based compensation have been excluded as well.

Total cash cost per ounce has been included because certain investors use this information to assess performance and also to determine the ability of Centerra to generate cash flow for use in investing and other activities. The inclusion of total cash cost per ounce enables investors to better understand year-on-year changes in production costs, which in turn affect profitability and cash flow.

Total Cash Cost per Ounce can be reconciled as follows:

Centerra Gold Inc.
TOTAL CASH COST                  Three months ended    Twelve months ended
RECONCILIATION (unaudited)              December 31,           December 31,
($ millions, unless otherwise
 specified)                       2006         2005     2006          2005
                               --------------------------------------------

Centerra:
Cost of sales, as reported     $  66.6      $  42.8  $ 236.6      $  186.2
Adjust for:
 Refining fees & by-product
  credits                          0.1         (0.1)     0.3             -
 Non-operating costs              (2.7)        (1.6)    (4.5)         (3.5)
 Inventory movement                3.3          8.9     (5.8)          6.9
                               --------------------------------------------
Total cash cost - 100%         $  67.3      $  50.0  $ 226.6      $  189.6
Ounces poured - 100% (000)       142.3        166.6    586.4         787.3

Total cash cost per ounce      $   473      $   300  $   386      $    241

Kumtor:
Cost of sales, as reported     $  49.8      $  28.5  $ 176.9      $  134.6
Adjust for:
 Refining fees & by-product
  credits                            -         (0.1)    (0.1)          0.3
 Non-operating costs              (2.8)        (1.6)    (4.3)         (4.5)
 Inventory movement                2.3          8.1     (7.4)          6.8
                               --------------------------------------------
Total cash cost - 100%         $  49.3      $  34.9  $ 165.1      $  137.2
Ounces poured - 100% (000)        62.5         98.9    303.6         501.5

Total cash cost per ounce      $   789      $   352  $   544      $    274

Boroo:
Cost of sales, as reported     $  16.8      $  14.3  $  59.7      $   51.6
Adjust for:
 Refining fees & by-product
  credits                          0.1            -      0.4          (0.3)
 Non-operating costs               0.1            -     (0.2)          1.0
 Inventory movement                1.0          0.8      1.6           0.1
                               --------------------------------------------
Total cash cost - 100%         $  18.0      $  15.1  $  61.5      $   52.4
Ounces poured - 100% (000)        79.8         67.7    282.8         285.8

Total cash cost per ounce      $   225      $   223  $   217      $    183



FINANCIAL STATEMENTS FOLLOW


Centerra Gold Inc.

Consolidated Financial Statements

For the Quarter and Year Ended December 31, 2006

(Unaudited)

(Expressed in United States Dollars)


Centerra Gold Inc.
Consolidated Balance Sheets
(Expresed In thousands of United Stated Dollars)
                                           December 31,        December 31,
                                                  2006                2005
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                            (Unaudited)
Assets
Current assets
 Cash                                        $ 186,159           $ 202,417
 Amounts receivable                             24,006               8,951
 Inventories                                    83,714              76,721
 Prepaid expenses                               24,737              16,151
                                             ------------------------------
                                               318,616             304,240

Property, plant and equipment                  305,366             232,114
Goodwill                                       154,586             154,586
Long-term receivables, investments and other     6,778               8,357
Future income tax asset                          8,901                   -
                                             ------------------------------
                                               475,631             395,057
                                             ------------------------------
Total assets                                 $ 794,247           $ 699,297
                                             ------------------------------

                                             ------------------------------
Liabilities and Shareholders' Equity
Current liabilities
 Accounts payable and accrued liabilities    $  62,347           $  32,129
                                             ------------------------------

Provision for reclamation (note 2)              16,532              17,897
Future income tax liability                          -                  29
                                             ------------------------------
                                                16,532              17,926
                                             ------------------------------

Non-controlling interest                         9,829               4,821

Shareholders' equity
 Share capital (note 3)                        522,383             522,383
 Contributed surplus                            30,257              29,739
 Retained earnings                             152,899              92,299
                                             ------------------------------
                                               705,539             644,421
                                             ------------------------------
Total liabilities and shareholders' equity   $ 794,247           $ 699,297
                                             ------------------------------
                                             ------------------------------

Commitments and Contingencies (note 7)

The accompanying notes form an integral part of these consolidated
financial statements.


Centerra Gold Inc.
Consolidated Statements of Earnings and Retained Earnings
(Unaudited)
(Expresed In thousands of United Stated Dollars)

                                 Three Months Ended    Twelve Months Ended
                                December   December    December   December
                                31, 2006   31, 2005    31, 2006   31, 2005
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Revenue from
 Gold sales                    $  88,404   $ 75,044   $ 364,520  $ 338,583
                               --------------------------------------------
Expenses
 Cost of sales                    66,865     42,818     236,915    186,177
 Depreciation, depletion and
  amortization                    11,076     12,009      39,662     58,581
 Accretion and reclamation
  expense (note 2)                   275        329      (1,453)     1,315
 Exploration and business
  development (note 4)             7,084      8,492      25,702     29,931
 Interest and other (income)      (1,733)    (1,074)    (23,362)    (4,773)
 Administration                    9,456      5,941      27,220     17,934
                               --------------------------------------------
                                  93,023     68,515     304,684    289,165
                               --------------------------------------------
Earnings (Loss) before income
 taxes and non-controlling
 interest                         (4,619)     6,529      59,836     49,418

 Income tax expense(recovery)
  (note 5)                        (8,118)      (682)     (5,771)     4,572
 Non-controlling interest          1,630        848       5,007      2,412
         

Published Feb. 7, 2007— Reads 151 
 

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