Cape Town 121 Conference

Transcription

1 TSX & ASX: TGZ Cape Town 121 Conference February 2017

2 Forward-Looking Statements This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ( forward-looking statements ), which reflects management s expectations regarding Teranga Gold Corporation s ( Teranga or the Company ) future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as plans, expects, does not expect, budget, scheduled, trends, indications, potential, estimates, predicts, forecasts, focused on, anticipate or does not anticipate, believe, intend, ability to and similar expressions or statements that certain actions, events or results may, could, would, might, will, or are likely to be taken, occur or be achieved, have been used to identify such forward looking information. Specific forward-looking statements in this presentation include the commencement of expected drill programs, anticipated future cash flows, anticipated construction readiness activities for the Company s Banfora gold project in Burkina Faso as well as the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated discovery of reserves at the Banfora project, the timing of completion of a Feasibility Study for the Banfora project, and Teranga s estimated full year financial and operating totals, as well as anticipated 2017 operating results. Although the forward-looking information contained in this presentation reflect management s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking information. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga s Amended and Restated Annual Information Form dated November 15, 2016, and in other filings of Teranga with securities and regulatory authorities which are available at Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. This presentation is as of February 2, All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the words we, us, our and similar words and the reader is referred to using the words you, your and similar words. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise. DISCLAIMER ON RESULTS CONTAINED IN THIS PRESENTATION This presentation contains 2016 Q4 and year-end financial information of the Company which has not been audited. All 2016 Q4 and year-end financial information presented in this presentation reflects management s current assessment based upon information currently available to management. The reader is cautioned that audited financial results may differ from the information presented in this presentation. The Company s audited consolidated financial statements as at and for the twelve months ended December 31, 2016 and 2015, and accompanying management s discussion and analysis will be released during the week of February 20th,

3 One-Half of Africa s 2015 Gold Production Came From West Africa NORTH AMERICA 11.7Moz WEST AFRICA 8.6Moz EUROPE 9.5Moz CENTRAL AMERICA 6.1Moz ASIA 19.5Moz SOUTH AMERICA 14.2Moz AFRICA 17.1Moz OCEANIA 11.5Moz Source: CPM Gold Yearbook

4 3 Out of Top 5 Fastest Growing Gold Mining Regions are in Africa Global Gold Production CAGR % 9.9% 9.6% 8.5% 7.5% 5.2% 3.9% 0.9% (0.5%) (0.9%) Central America Europe East Africa West West Africa Central Africa Africa Asia South America Oceania Southern Africa North America (5.6%) South Africa Source: CPM Gold Yearbook

5 Increased Opportunities for Growth & Enhanced Optionality Senegal The Gambia Guinea- Bisseau Sabodala Gold Mine Status: Producing Reserves: 2.6Moz (2) M&I: 4.4Moz (2) Mali Banfora Project Status: Feasibility Burkina Faso Gourma Exploration JV Niger Guinea Golden Hill Exploration JV Sierra Leone Liberia Dianra Exploration JV Mahepleu Exploration JV Guitry Exploration JV Côte d Ivoire Tiassale Exploration JV Ghana Togo Benin Refer to Endnote (2) on the second last slide Sangaredougou 5

6 Sabodala Gold Mine 1.2 Million Ounces Produced Since 2010 Senegal, West Africa

7 World-Class Gold Belt in Senegal Potential for Major Discoveries Gold belt straddles border between Senegal and Mali where +50 million ounces have been discovered (3) Only Commercial Gold Mill in Senegal Ability to process regional discoveries and enter into strategic combinations to process neighbouring deposits Senegal 12M+ ounces Au discovered over last 10 years Iamgold Iamgold Mali 40M+ ounces Au discovered over last 25 years Stable, Mining-Friendly Jurisdiction Democratic government strongly supports mining and views it as a key pillar for Senegal s economic growth Toro Gold Randgold Iamgold Bassari Randgold Endeavour Randgold B2Gold Birimian Gold Belt Refer to Endnote (3) on the second last slide Operating Gold Mine/ Development Project Sabodala Mine License Sabodala Regional Land Package 7

8 Record-Breaking Operational Performance in 2016 (1) Mining Costs ($/t mined) 4% $2.42 $ % +18 % Increase in gold production to a record 216,735 ounces (compared to 182,282 in 2015) Increase in throughput to a record 4,025,000 tonnes milled (compared to 3,421,000 in 2015) Milling Costs ($/t milled) $ % $

9 Reduced Operational Risk at Sabodala Completed Mill Optimization Implemented New Grade Control Procedures Built Inventory of High-grade Ore 9

10 2017 Outlook Year Ended December Guidance Actual* Guidance (11) Operating Results Ore mined ( 000t) 2,000 2,500 2,132 2,000 2,500 Waste mined ( 000t) 34,500 36,000 33,512 35,000 37,000 Total mined ( 000t) 36,500 38,500 35,644 37,000 39,500 Grade mined (g/t) Strip ratio waste/ore Ore milled ( 000t) 3,700 3,900 4,025 4,000 4,300 Head grade (g/t) Recovery rate % Gold produced (5) (oz) 200, , , , ,000 (10) All-in sustaining costs (6) $/oz sold ,000 1,075 Cash / (non-cash) inventory movements & amortized advanced royalty costs (6) $/oz sold Not Applicable ~ 40 (100) All-in sustaining costs (excluding cash / (non-cash) inventory movements & amortized advanced royalty costs) (6) $/oz sold Not Applicable < Mining ($/t mined) Mining long haul ($/t hauled) Milling ($/t milled) General and Administration ($/t milled) Mine Production Costs $ millions Corporate Administration Expense (7) $ millions Regional Administration Costs (7) $ millions Community Social Responsibility Expense (7) $ millions Exploration & Evaluation (Expensed) (8) $ millions Sustaining Capital Expenditures Mine site sustaining $ millions Capitalized reserve development $ millions Site development costs $ millions Total Sustaining Capital Expenditures (9) $ millions Growth Capital Expenditures (Banfora) (8) Feasibility study $ millions Not Applicable Capitalized reserve development $ millions Not Applicable Construction readiness $ millions Not Applicable Total Growth Capital Expenditures $ millions Not Applicable Important Note re All-in Sustaining Costs (6) The majority of mill feed likely in excess of 2.5 million tonnes of which 2 million tonnes will come from low-grade stockpiles. This results in a large non-cash cost related to the amortization of historic mining costs. This non-cash cost has the effect of increasing total cash costs and all-in sustaining costs per ounce by $100. Before non-cash inventory movements and amortized advanced royalty costs, all-in sustaining costs are expected to be $900 to $975 per ounce. *All financials are unaudited. Refer to Endnotes (5), (6), (7), (8), (9), (10), and (11) on second last slide 10

11 Surpassed 3 Years or 12 Million Hours Worked Without a Lost Time Incident Cumulative Hours Worked Without a Lost Time Incident 12.0M 6.5M 3.2M

12 Garnering International Recognition for CSR United Nations Global Compact Network Canada Sustainability Award Corporate Knights Future 40 Responsible Corporate Leaders in Canada Capital Finance International: Best ESG-Responsible Mining Management West Africa Award PDAC 2017 Environmental & Social Responsibility Award 12

13 Significant Potential on Large Land Package 2017 Budget $5M - $6M 2.6 Million Ounces in Proven & Probable Reserves 13.5-year mine life 4.4 million ounces in measured and indicated resources (inclusive of proven and probable reserves) at an average grade of 1.62g/t (2) Mali Mine License Reserve Development Focused on resource definition and converting resources at Niakafiri Continued delineation of the recently discovered Goumbati West Extensive Multi-Drill Program Advanced exploration prospects on the mine license Several targets on the regional land package Refer to Endnote (2) on the second last slide Sabodala Mill Niakafiri Goumbati West Sabodala Mine License & Regional Land Package (Senegal) Exploration Prospects Mineral Resources Masato Style Bulk Tonnage Gold Trend Golouma Style High- Grade Gold Trend Mining Concession Exploration Permits Previous Mine License 13

14 Expanding Into Burkina Faso Burkina Faso, West Africa 14

15 Mining-friendly Jurisdiction in French West Africa With Modern Mining Code 2017 Budget $7M - $8M Fully Permitted Banfora Gold Project Exploration licenses covering over 1,000km 2 with considerable exploration upside Avocet Iamgold Two Prospective Regional Exploration Joint Ventures Golden Hill Gourma Endeavour Nordgold Nordgold Orezone Semafo Roxgold Burkina Faso West African Res. B2Gold Semafo Endeavour MNG Gold Golden Hill Gourma Banfora Gold Project Centamin Operating Gold Mine/ Development Project 15

16 Completed Exploration Work Identifies Mineralisation No Negative Surprises Drilling completed at Nogbele, Fourkoura, Samavogo, and Stinger deposits Comprehensive drilling to continue in 2017 Banfora Project Mine License (Burkina Faso) KONANDOUGOU Multiple Targets Within Trucking Distance to Proposed Banfora Mill 11 additional priority targets are being explored Results are expected to be included in the Banfora technical report KAFINA WEST BAGU SUD /WEAH BAZOGO OUAHIRI Proposed Plant BASSONOGRO HILLSIDE MUDDI SUD 16

17 Fast-Tracking Completion of Banfora Gold Project Feasibility Study H H H H H H H Commenced drilling campaign to identify reserve deposits Expect to file NI technical report Seek board approval and commence construction Anticipated first gold pour at Banfora 17

18 Advancing Exploration at Golden Hill Golden Hill Joint Venture (Burkina Faso) Siou Pit M&I: 1.07 Moz ¹ Burkina Faso Golden Hill Gourma Situated at a Great Address 468km 2 situated located ~200km NE of Banfora On the Houndé belt in close proximity to other large deposits Mana M&I: 2.76 Moz ¹ Banfora Prioritized 10 Prospects For More Advanced Work in 2017 Previous exploration work defined high quality prospects More advanced work, including substantial drilling, scheduled in the coming months. Houndé M&I: 2.55 Moz ³ Yaramoko M&I: 0.81 Moz ² *M&I Resources are inclusive of P&P Reserves Teranga s JV Golden Hill Project Source: ¹ Semafo Corporate Presentation, (Sept 18, 2016) ² Roxgold Corporate Presentation, (Oct 2016) ³ Endeavour Corporate Presentation (Sept 2016) 18

19 Early-Stage Exploration at Gourma Burkina Faso Gourma Regional Exploration Property in Burkina Faso 1,322km 2 land package Covers ~60km strike length of crustal scale shear zone Banfora Golden Hill Numerous Prospects Being Advanced 6 prospects identified from preliminary work to-date Follow-up scheduled to commence in H

20 Joint Venture With Miminvest Côte d Ivoire, West Africa 20

21 Optionality in Côte d Ivoire Dianra 2017 Budget $0.5M Large Prospective Land Package Wholly-Owned by Teranga 5 permits covering more than 1,800km 2 in prolific Côte d'ivoire 100% wholly-owned by Teranga with 3% net smelter royalty to Miminvest Randgold Strong Partner With In-Depth Local Knowledge Miminvest is controlled by David Mimran, Teranga s cornerstone shareholder Mimran family has a long history of operating successfully and responsibly in Africa as the largest private sector employer in both Senegal and Côte d Ivoire Mahepleu Endeavour Côte d Ivoire Newcerst Perseus Tiassale Guitry Endeavour Taurus Sangaredougou Operating Gold Mine/ Development Project 21

22 A Compelling Growth Story & Investment Opportunity Teranga Gold 22

23 Strengthened Balance Sheet to Support Growth Net Cash Cash balance increased by $50.8M during the year to $95M Teranga has a $30M revolving credit facility of which $15 million remains undrawn On a net cash basis, including Teranga has $80M Cash ($M) 114% Government Payments $17.2M in royalty to government of Senegal to settle remaining 2015 royalties and royalties related to first three quarters of 2016 An additional $1.6M of royalty payments was settled through an offset of receivables $44.4 $95.2 Value-added Tax (VAT) $10.3M unaudited VAT receivables as at December 31, 2016 December 31, 2015 December, 31, 2016 (unaudited) 23

24 SIGNIFICANT Growth Opportunities with Expansion into West Africa WORLD-CLASS Gold Belts in Mining-Friendly Jurisdictions STRONG Life of Mine Cash Flows (4) SOLID Balance Sheet & $95M in Cash CORNERSTONE INVESTOR with Strong Ties to West Africa LARGE Long-Life Reserve (2.6Moz) & Resource Base (2) Refer to Endnotes (2) and (4) on the second last slide 24

25 Undervalued with the Potential for a Major Rate Reset Teranga s Share Price vs. Net Present Value (NPV) (1) per Share EV/2P Reserves ($/oz) B2Gold Roxgold Semafo % Endeavour Asanko Teranga C$1.80 Alacer Perseus C$0.94 C$1.00 Enterprise Value/2016E EBITDA ($) Roxgold 26.8x Share Price BMO NPV per Share Revalued Share Price 0.9x Current TGZ NPV Trading Multiple (1) 1.8x Average NPV Multiple for Medium Producers (1) B2Gold Alacer Asanko Endeavour 6.3x 11.7x 13.1x 14.4x Refer to Endnote (1) on the second last slide. Data Source: BMO GoldPages published January 30, 2017 Semafo Teranga 2.4x 5.9x 25

26 Appendices

27 Capital Structure Capital Structure Basic common shares outstanding 536,713,916 Stock options outstanding 18,985,527 TGZ Share Price Performance TGZ-TSX GDXJ Gold Price Fully diluted 555,699,442 Number of shares owned by insiders 106,778,530 Market capitalization C$488M / US$372M Cash (as at Dec. 31, 2016) $95.2M Top 5 Shareholders % O/S Position +101% +86% Tablo Corporation ,281,500 Van Eck Associates Corporation ,573, % Rafferty Asset Management ,119,511 Dimensional Fund Advisors ,505,253 Sentry Investments ,045,573 As of January 30,

28 Effective Cost OJVG Acquisition Financed by Franco-Nevada In connection with Teranga s transformational acquisition of Oromin Joint Venture Group in 2014, Franco-Nevada invested $135 million in exchange for a fixed and floating stream on Teranga s future production Fixed gold deliveries of 22,500 ounces per year from 2014 to 2019 with trailing 6% gold stream once fixed deliveries completed in 2019 * Effective Cost of Franco-Nevada Stream on All-in Sustaining Costs per Ounce (based on $1,200/ounce gold price) 8.4% 4.8% Franco-Nevada to pay 20% of spot gold price per ounce delivered (6% stream is equivalent to a 4.8% NSR royalty) Streaming agreement covers Teranga s current mine license and land package $100 $ E Post 2019 * Due to the timing of shipment schedules near 2014 year end, the Company delivered 20,625 ounces of gold to Franco-Nevada in 2014 and 24,375 ounces in Implied Net Smelter Royalty

29 Sabodala Life of Mine

30 Open Pit and Underground Mineral Resources Summary (2) As at December 31, 2015 Inclusive of Reserves Deposit Sabodala Gora Niakafiri Masato Golouma Kerekounda Maki Medina Niakafiri SW Niakafiri SE Others Total Measured Indicated Measured and Indicated Inferred Domain Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au ('000s) (g/t Au) ('000s) ('000s) (g/t Au) ('000s) ('000s) (g/t Au) ('000s) ('000s) (g/t Au) ('000s) Open Pit 13, , , , Underground 1, , Combined 13, , , ,021 2, Open Pit , , Underground Combined , , Open Pit 4, , , , Underground Combined 4, , , , Open Pit 5, , , Underground 1, , , Combined 5, , , ,097 1, Open Pit 6, , Underground 2, , Combined 8, , Open Pit 1, , Underground Combined 1, , Open Pit 2, , Underground Combined 2, , Open Pit Underground Combined Open Pit 4, , Underground Combined 4, , Open Pit 1, , , Underground , Combined 1, , , Open Pit 25, , ,777 79, ,703 10, Underground 5, , , Combined 25, , ,516 85, ,441 15, Notes for Mineral Resources Summary 1. CIM definitions were followed for Mineral Resources. 2. Open pit oxide Mineral Resources are estimated at a cut-off grade of 0.35 g/t Au, except for Gora at 0.48 g/t Au. 3. Open pit transition and fresh rock Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au, except for Gora at 0.55 g/t Au. 4. Underground Mineral Resources are estimated at a cut-off grade of 2.00 g/t Au. 5. Measured Resources at Sabodala include stockpiles which total 9.2 Mt at 0.77 g/t Au for 229,000 oz Measured Resources at Gora include stockpiles which total 0.1 Mt at 1.30 g/t Au for 6,000 oz. 7. Measured Resources at Masato include stockpiles which total 5.9 Mt at 0.79 g/t Au for 150,000 oz High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au. 9. The figures above are Total Mineral Resources and include Mineral Reserves. 10. Open pit shells were used to constrain open pit resources. 11. Mineral Resources are estimated using a gold price of US$1,450 per ounce. 12. Sum of individual amounts may not equal due to rounding. Refer to Endnote (2) on the second last slide 30

31 Open Pit & Underground Mineral Reserves Summary (2) As At December 31, 2015 Deposits Tonnes (Mt) Proven Probable Proven and Probable Grade Au Tonnes Grade Au Tonnes Grade Au (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Sabodala Gora Niakafiri Main Subtotal ML Masato Golouma West Golouma South Kerekounda Maki Medina Niakafiri SE Niakafiri SW Subtotal SOMIGOL Subtotal Open Pit Golouma West Golouma West Golouma South Kerekounda Subtotal Underground Total Notes for Mineral Reserves Summary 1.CIM definitions were followed for Mineral Reserves. 2.Mineral Reserve cut off grades for range from are 0.35 g/t to 0.63 g/t Au for oxide and 0.42 g/t to 0.73 g/t Au for fresh based on a $1,100/oz gold price 3.Mineral Reserve cut off grades for Sabodala 0.45 g/t for oxide and 0.55 g/t for fresh based on a $1,100/oz gold price 4.Underground reserves cut-off grades ranged from g/t based on $1,200/oz gold price 5.Sum of individual amounts may not equal due to rounding. 6.The Niakafiri Main deposit is adjacent to the Sabodala village and relocation of at least some portion of the village will be required which will necessitate a negotiated resettlement program with the affected community members.. Stockpiles Total Including Stockpile Refer to Endnote (2) on the second last slide 31

32 Updated Life of Mine Schedule Sabodala Masato Gora Kerekounda Golouma Niakafiri * Maki Medina Underground Summary LOM Average Ore Mined Mt Ore Grade Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Ore Mined Mt Ore Grade g/t Contained Oz Moz Ore Mined Mt Ore Grade g/t Contained Oz Moz Waste Mt Movement Mt Stockpile Ore Mt Balance Stockpile Grade g/t Contained Oz Moz Notes: The estimated ore reserves underpinning the production targets set out in the following table, have been prepared by Mr. Paul Chawrun, who is a Competent Person, in accordance with the requirements of the 2012 JORC Code. This production guidance is based on existing proven and probable ore reserves from the Sabodala mining license as at December 31, 2015 Stockpile balances at January 1, 2016 included 15.3 Mt at 0.79 g/t for 0.39 million contained ounces * The schedule summarizes Niakafiri from Niakafiri Main and Niakafiri SE. The portion of Niakafiri SE to be mined lies outside of the Sabodala Village area and assumes relocation is not required. Ore Milled Mt Head Grade g/t Oxide % 21% 27% 37% 25% 26% 31% 19% 28% 16% 29% 0% 17% 19% 18% 18% 18% Produced Oz Moz

33 Attractive Base Case Life of Mine Cash Flows Activity Unit LOM Average Production (10) Koz 2, Gold Price $/oz 1,200 1,181 1,100 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Revenue USDM 2, Operating Costs USDM 1, Royalties* USDM Capex USDM Corporate Admin USDM All-in sustaining costs (6) USDM 2, All-in sustaining costs (6) $/oz ,072 1,483 1, Franco Nevada USDM Franco Nevada $/oz Cash Flow (4) before interest, taxes, debt, dividends, closure costs, and working capital USDM $549 $36 $21 $65 $37 $42 $13 ($44) $7 $68 $137 $34 $27 $53 $66 $22 *Royalties include Government of Senegal Royalties on total production and the NSR royalty due to Axmin on Gora production Refer to Endnotes (4), (6) and (10) on the second last slide 33

34 Updated Life of Mine Capital Expenditures Sustaining Capex Unit LOM AVG Open Pit Mining USDM Underground Mining USDM Processing USDM Admin & Other Sustaining USDM Community Relations USDM Total Sustaining Capex USDM Capital Projects & Development OJVG & Gora Development USDM Underground Equipment & Development USDM Other Projects & Development USDM Total Projects and Development USDM Combined Total (USDM) USDM

35 Updated Life of Mine Operating Costs Activity Unit LOM AVG Open Pit Mining USD/t mined Underground Mining USD/t milled Processing USD/t milled General & Admin. USD/t milled Mining USDM Underground Mining USDM Processing USDM General & Admin USDM Refining & Freight USDM Byproduct Credits USDM (4) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Total Operating Costs USDM 1, Deferred Stripping Adjustment USDM (129) (13) (26) (6) - - (35) (35) (25) (1) Royalties (*) USDM Total Cash Costs (6) USDM 1, Total Cash Costs (6) USD/oz Capex USDM Capitalized Deferred Stripping USDM Capitalized Reserve Development USDM Corporate Admin USDM All-In Sustaining Cash Costs (6) USDM 2, All-In Sustaining Cash Costs (6) USD/oz ,072 1,483 1, This production profile is based on existing proven and probable reserves only from the Sabodala mining license as at December 31, Key assumptions: Gold spot price/ounce - US$1,200, Light fuel oil - US$0.72/litre, Heavy fuel oil - US$0.43/litre, US/Euro exchange rate - $1.10 *Royalties include Government of Senegal Royalties on total production and the NSR royalty due to Axmin on Gora production Refer to Endnote (6) on the second last slide 35

36 Teranga Gold Competent & Qualified Persons Statement The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. William Paul Chawrun, P. Eng who is a member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Chawrun is a full time employee of Teranga and is not "independent" within the meaning of National Instrument However, he is a "Qualified Person" as defined in NI Mr. Chawrun has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Chawrun is a "Qualified Person" under National Instrument Standards of Disclosure for Mineral Projects. Mr. Chawrun has consented to the inclusion in this Report of the matters based on his compiled information in the form and context in which it appears in this Report. The technical information contained in this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this Report of the matters based on her compiled information in the form and context in which it appears in this Report. Teranga's disclosure of mineral reserve and mineral resource information is governed by NI under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the 2012 JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the 2012 JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves. 36

37 Endnotes 1) Net Present Value ( NPV ) per share is a Non-IFRS financial measure. NPV per share, average NPV multiple of medium producers, and Teranga s share price is as per BMO GoldPages published January 30, According to BMO GoldPages, NPV per share is calculated using the net present value of the life of mine cash flows based on the NI plan, less cash flow of corporate costs, less net debt per share, using the model at SPOT commodity prices and exchange rates. The Revalued Share Price is calculated using the NPV per share at SPOT times the NPV multiples as listed. The BMO NPV calculation assumes a US$1,191 SPOT gold price per ounce, 5% discount, 0.76 USD/CAD exchange rate. For more information regarding Non-IFRS financial measures, please refer to Non-IFRS Performance Measures in the Company s Management s Discussion and Analysis for the three and twelve months ended December 31, 2016 accessible on the Company s website at 2) Teranga s Sabodala Mineral Reserves and Mineral Resources estimates as at December 31, 2015 as per Company disclosure. For more information regarding Teranga Gold s Mineral Reserves and Resources and related notes, please refer to Teranga Gold s December Quarter and Year-end 2015 Report accessible on the Teranga s website at 3) Identified ounces on Birimian greenstone belt, which straddles the border of Senegal and Mali, West Africa, refers to gold ounces historically mined in addition to gold ounces currently reported as Measured and Indicated Resources, as available on GFMS Thomson Reuters and latest company reserve and resource statements as of March 23, ) Cash flow is the Life of Mine net cash flow based on the Company s most recent NI Technical Report ( plan ) filed in March 2016, before income taxes, interest, debt repayments, closure costs, dividends and working capital. 5) 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at 20% of the spot gold price. 6) Total cash costs, all-in sustaining costs, and all-in sustaining costs (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce of gold sold are non- IFRS measures that do not have standard meanings under IFRS. Please refer to Non-IFRS Financial Performance Measures in the press release reporting 2016 Q4/YE operating results titled, Teranga Gold Achieves Strong 2016 Operating Performance which available on Teranga s website at All-in sustaining costs per ounce sold include total cash costs per ounce, administration expenses, share based compensation and sustaining capital expenditures as defined by the World Gold Council. All-in sustaining costs include non-cash amortization of advanced royalties and inventory movements. For 2016, all-in sustaining costs per ounce is forecasted to be within the mid-point of the 2016 guidance range of $900 - $975 per ounce. The Company is providing 2016 guidance for cash / (non-cash) inventory movements and amortized royalty costs - forecasted to be ~$40 per ounce, and all-in sustaining costs per ounce (excluding cash / (non-cash) inventory movements and amortized royalty costs - forecasted to be less than $975 per ounce. 7) To better align costs with industry peers, during the first quarter 2016 the Company began to present CSR Expense and Regional Administration Costs separately from Corporate Administration Expense. The Company s 2016 guidance was updated accordingly. 8) 2016 guidance for exploration and evaluation and growth capital expenditures exclude $2 million in exploration costs and $2 million in growth capital expenditures, both related to Gryphon, announced in our third quarter 2016 news release titled, Teranga Gold Reports Strong Third Quarter and Record 9-Month Production which is available on Teranga s website at 9) Excludes capitalized deferred stripping costs, included in mine production costs. 10) This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as disclosed on the Company s website at and on SEDAR at The estimated ore reserves underpinning this production guidance have been prepared by a competent person in accordance with the requirements of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 2012 JORC Code ). Please refer to the Competent Persons Statement in this presentation. 11) This forecast financial information is based on the following material assumptions for 2017: gold price: $1,200 per ounce; light fuel oil price $0.81/L; heavy fuel oil price $0.46/L; Euro:USD exchange rate of 1:10.1. Other important assumptions: any political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries will remain consistent with the life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production. 37

38 38

39 Trish Moran Head of Investor Relations TSX & ASX: TGZ T: E: W: terangagold.com 121 King Street West, Suite 2600 Toronto, ON M5H 3T9