Kara Beldyr History

The Kara Beldyr project is a joint venture with Central Asia Gold AB, a Swedish junior company listed on the Nordic Growth Market (NGM) in Stockholm. The project is located in the Tyva Republic, Russia, approximately 160 km (90km by highway) east south east of Kyzyl, the capital city of the Tyva Republic. The Kara Beldyr prospect is located in the Eastern part of the Altai – Sayan Orogenic belt and the western segment of the Mongol – Okhotsk trend. Kara Beldyr prospect is located in the upper sheds of the Yenisei River at elevations from 1,050 to 1,750 metres.

Pursuant to an option/joint venture agreement with Central Asia Gold AB entered into on September 3, 2008, Centerra has the right to earn a 50% interest in the property by spending a total of $2.5 million over three years after which Centerra has a one-time option to earn an additional 20% interest in the property by spending an additional $4 million over a further four-year period. In August 2010, Centerra earned its 50% interest in the property, and in January 2012, Centerra earned an additional 20% in the property, bringing its aggregate interest to 70%.

Drilling in 2011 was carried out on the Gord, Camp and Ezen zones of the property, which confirmed the main geological features previously identified and returned promising results. In 2012, Centerra plans on continuing exploration work at Kara Beldyr, in conjunction with Central Asia Gold, including additional drilling at the three zones, further metallurgical testing and ground magnetic surveys.