Headwater Gold and Centerra Gold Sign US $25 Million Earn-In Agreement to Explore the Crane Creek Gold Project in Idaho

On December 3, 2025, Headwater Gold Inc. announced that it had signed a definitive earn-in agreement with Centerra Gold Inc. to explore the Crane Creek Gold Project in Idaho, USA. Under the terms of the agreement, a Centerra subsidiary can earn up to a 70% interest in the Crane Creek project by undertaking staged exploration expenditures totaling up to US$25,000,000 and completing a Preliminary Economic Assessment (PEA).

Key terms of the earn-in agreement include: - An initial cash payment of US$87,000 to Headwater Gold upon execution. - Subsequent annual payments of US$50,000. - Stage 1: Centerra must incur US$10,000,000 in exploration expenditures within four years to earn a 51% interest. This includes a minimum commitment of US$2,500,000 in the first three years. - Stage 2: After achieving Stage 1, Centerra can earn an additional 9% interest (for a total of 60%) by incurring an additional US$15,000,000 in expenditures within four years. Upon completion of Stage 2, Headwater will retain a 1-2% Net Smelter Return (NSR) royalty. - Stage 3: Following Stage 2, Centerra can earn an additional 10% interest (for a total of 70%) by completing a PEA that outlines a minimum 1,000,000 ounce gold equivalent resource within two years.

Caleb Stroup, President and CEO of Headwater Gold, highlighted Centerra's existing role as a strategic shareholder and expressed excitement about expanding this relationship into an exploration partnership, noting Centerra's commitment, technical expertise, and collaborative approach to test the project's potential for high-grade and bulk-tonnage mineralization.

This earn-in agreement represents a positive step for Centerra Gold in expanding its early-stage exploration pipeline in a favorable jurisdiction (Idaho, USA). Centerra is a mid-tier producer with existing operations and significant development projects. The commitment of US$25 million in exploration expenditures over a potential 10-year period, while substantial for an exploration project, is relatively small when compared to Centerra's financial capacity. As of Q3 2025, Centerra held $562 million in cash and cash equivalents and had total liquidity of over $960 million with no debt. The average annual spend of $2.5 million is easily absorbed by its existing cash flow from operations, which was $162 million in Q3 2025 alone.

The partnership with Headwater Gold, where Centerra is already a strategic shareholder, allows Centerra to leverage Headwater's regional expertise and existing project knowledge. This aligns with Centerra's stated strategy of advancing organic growth opportunities, particularly in North America. The potential to secure a 70% interest in a project with demonstrated high-grade and bulk-tonnage potential, if successful, could contribute to Centerra's long-term resource base.

However, the impact on Centerra is considered "Routine - Positive" rather than "Material - Game Changer" or even "Material - Positive" for the following reasons: - Early-Stage Exploration: Crane Creek is an early-stage exploration project. The geological risks are high, and there is no guarantee of proving up an economic resource. - Long-Term Horizon: The earn-in structure stretches over a lengthy period (up to 10 years to reach 70% interest and complete a PEA), meaning any potential production or financial contribution is many years, if not decades, away. There will be no immediate impact on Centerra's production profile or cash flow. - Relative Scale: For a company of Centerra's size ($3.68 billion market cap), a $25 million exploration commitment spread over a decade is a routine allocation of capital to build a long-term pipeline, rather than a significant immediate driver of value. More impactful news for Centerra in recent months included the Mount Milligan PFS, Goldfield project economics, and the Thompson Creek restart.

In summary, the news reinforces Centerra's commitment to exploration and growth in North America and prudently deploys capital into a high-potential, early-stage asset with a proven junior partner. It is a strategically sound, but not immediately material, development for Centerra.

Centerra Gold Inc. is a Canadian-based mid-tier gold producer with a portfolio of operating mines and development-stage projects across North America and Turkey, producing gold, copper, and molybdenum.

Operating Mines: - Mount Milligan Mine (British Columbia, Canada): This conventional open-pit copper and gold mine is a cornerstone asset. A Pre-Feasibility Study (PFS) in September 2025 outlined a mine life extension to 2045, with average annual production of 150,000 ounces of gold and 69 million pounds of copper from 2026-2042. It currently has Proven & Probable Reserves of 4.4 million oz gold and 1.7 billion lbs copper. The mine is subject to a streaming agreement with Royal Gold for 35% of gold and 18.75% of copper production. Recent Q3 2025 results indicated challenges with gold recovery due to complex mineralization, which the PFS mine plan aims to address through optimal blending. - Öksüt Mine (Kayseri Province, Türkiye): An open-pit heap leach gold mine, Öksüt has demonstrated strong operational performance. It has Proven & Probable Reserves of 662,000 oz gold. An optimization study is underway, expected by end of 2026, to evaluate residual leaching and potential pit extensions, as its current reserve life ends in 2029.

Development Projects: - Goldfield Project (Nevada, USA): This conventional open-pit, heap leach gold project has attractive economics, with an after-tax NPV5% of $245 million and an IRR of 30% (at $2,500/oz gold price assumption). Initial capital cost is estimated at $252 million, targeting approximately 100,000 oz/year production in peak years over a ~7-year mine life, with first production expected by the end of 2028. - Thompson Creek Mine (Idaho, USA): An open-pit primary molybdenum mine currently undergoing restart, targeting first production in H2 2027. Approximately 29% of the total capital investment for restart was complete as of Q3 2025. It holds Proven & Probable Reserves of 161 million lbs molybdenum.

Exploration Projects: - Kemess Project (North Central British Columbia, Canada): Centerra is advancing a Preliminary Economic Assessment (PEA) for Kemess, expected in Q1 2026. Updated mineral resources (as of April 2025) include 2.7 million oz gold and 971 million lbs copper in the Indicated category. The project envisions a combined open pit and underground operation with existing infrastructure, targeting 250,000 gold equivalent ounces annually over approximately 15 years. - Crane Creek Project (Idaho, USA): The subject of the most recent news, this is an early-stage gold exploration project under an earn-in agreement with Headwater Gold. - Various Strategic Investments: Centerra holds strategic equity stakes in several junior exploration companies including Headwater Gold, Liberty Gold Corp., Midland Exploration Inc., Thesis Gold Inc., and Azimut Exploration Inc.

Other Assets: - Endako Mine (BC, Canada): Currently under care and maintenance. - Langeloth Metallurgical Facility (Pennsylvania, USA): An operating molybdenum roasting facility.

Centerra's strategy is to be a self-funded mid-tier gold producer, focusing on organic growth opportunities in North America from its existing liquidity and cash flow, while maintaining exposure to gold, copper, and molybdenum.