NEWS RELEASE: CENTERRA GOLD ANNOUNCES FRIENDLY ACQUISITION OF AURICO METALS

TORONTO, Ontario – November 7, 2017 – Centerra Gold Inc. (“Centerra” or the “Company”) (TSX:CG) and AuRico Metals Inc. (“AuRico Metals”) (TSX:AMI) are pleased to announce that they have entered into a definitive arrangement agreement (the “Arrangement Agreement”) whereby Centerra will acquire all of the issued and outstanding common shares of AuRico Metals (the “Arrangement”) for C$1.80 in cash consideration per share (the “Purchase Price”), representing an aggregate transaction value of C$310 million.

The Purchase Price represents a 38% premium to the closing price of AuRico Metals’ common shares on the Toronto Stock Exchange (“TSX”) on November 6, 2017 and a premium of 37% to the 20-day volume weighted average price (“VWAP”) as of such date.

AuRico Metals is developing the Kemess property in British Columbia, Canada; a low-cost brownfield development asset that is host to the feasibility-stage Kemess Underground (“KUG”) and preliminary economic assessment level Kemess East (“KE”) projects. AuRico Metals also owns a high-quality, freecash flow generating royalty portfolio which includes a 1.5% net smelter return (“NSR”) royalty on the Young-Davidson gold mine in Ontario and a 2.0% NSR royalty on the Fosterville mine in Australia.

Together with Centerra’s low-cost, long-lived Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada, Centerra is expected to be firmly established as a low-cost gold producer with a geographically diversified footprint and peer-leading development pipeline.

Posttransaction, Centerra is expected to sustain and grow its production base with its strong balance sheet and liquidity profile, sector leading operating margins, and low capital requirements.

Highlights of the Transaction:

Enhances Centerra’s high-quality asset base in a world-class jurisdiction: The Kemess property adds a future cornerstone asset that will further bolster Centerra’s strong development pipeline including the fully-financed Öksüt Project in Turkey, the Greenstone Gold Property in Ontario, Canada, and the Gatsuurt Project in Mongolia. Kemess will also complement existing Centerra operations at the Mount Milligan Mine in British Columbia and has the potential to unlock operating and tax synergies with its existing assets in British Columbia.

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