Investor & Analyst Workshop

Transcription

1 The Next Multi-Asset Mid-Tier West African Gold Producer Investor & Analyst Workshop September 14, 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's 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 anticipates, potential, belief, believe, expected, expects, estimates, plans, anticipated, ability and similar expressions or statements that certain actions, events or results may, should, work to or "will" have been used to identify such forward looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this news release 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 statements. 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 reserves and mineral resources estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, community resettlement within anticipated timeline, 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 forward-looking statements and forward-looking information in this news release include without limitation, statements regarding (i) potential upside and improved economics from the Banfora Project; (ii) anticipated rates of conversion of inferred resources into reserves; (iii) objective to increase the mine life beyond the initial 9 years by first gold pour in 2019; (iv) anticipated financing plan including the need to raise additional capital; (v) expected reserve update in the first half of (vi) future cash flows from Sabodala; (vii) impact of gold forward sales contracts; (viii) anticipated timing of Banfora construction; (ix) entering into of debt facility; and (x) the extension of the gold hedging program. In addition, all of the results of the Banfora Project Feasibility Study constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, fuel price and foreign exchange rates, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Banfora Project Feasibility Study. These include statements regarding (i) IRR of 15% after tax; (ii) NPV of $90 million at a 5% discount rate after tax, (iii) estimated all-in sustaining costs; (iv) capital cost estimates (pre-production capital of $232 million, excluding $12 million in construction readiness activities spent prior to major construction), (v) proposed mining plans and methods, and (vi) a mine life estimate of 9 years. Readers are cautioned that actual results may vary from those presented. 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 Annual Information Form dated March 30, 2017, 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. All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation is as of September 14, 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. 2

3 Overview 3

4 Agenda Overview Richard Young, President & CEO Sabodala Paul Chawrun, COO Banfora Paul Chawrun, COO Exploration Dave Mallo, VP Exploration Wrap-Up 4

5 Strategically Achieving Our Vision... A 5 to10 Year Path Growth Strategy Underpinned by Prudent & Disciplined Allocation of Capital Maximize shareholder value by focusing on increasing long-term sustainable cash flows through diversification and growth To achieve growth objectives we are focused on: (i) (ii) (iii) (iv) optimizing our existing assets building new mines Annual Production (1) (6) carrying out targeted exploration and 300Koz 350Koz reserve/resource drill programs in Burkina Faso, Senegal and Côte D Ivoire continued cost and productivity improvements Vision To Be the Next Multi-Asset Mid-Tier West African Gold Producer Organic Growth Long-life potential, minimum 1Moz reserves AISC of $900/oz Banfora Project (v) maintaining balance sheet strength Sabodala 5

6 Long-Life Banfora Project Increases Consolidated Production Profile by ~50% Banfora Project Financial Highlights year LOM free cash flow from operations*: $409 million (5) AISC*: 10% lower in first 5 years and 5% lower LOM Koz Teranga Consolidated Production Profile (koz) (1),(6),(7) Conversion of resources to reserves Koz AISC/oz $1,162 $909 $924 $986 $996 $991 $877 $848 $882 $934 $ ,400 1,200 1, Refer to Endnotes (1), (5), (6) and (7) on slide 69. * Refer to Non-IFRS Performance Measures on slide 68. Sabodala Banfora -- 6

7 Significantly Improving Consolidated Production, Costs and Cash Flow Teranga - Consolidated Production Sabodala (6) Koz 2, Banfora (1) 1, Consolidated 3, AISC $/oz Sabodala (3) (5) ,290 1,110 1, Banfora , Corporate Consolidated $ , Cash Flow ($1,250/oz) $M Sabodala* (3) (5) (30) Banfora (5) 171 (128) (85) Corporate (65) (10) (10) (9) (7) (7) (7) (3) (3) (3) (3) (3) Total Cash Flow** 513 (82) (52) (7) *Includes impact of $1336/oz hedges in **Excludes Banfora financing and exploration/reserve development expenditures. Refer to Endnotes (1), (3), (5) and (6) on slide 69. 7

8 Financing Strategy Teranga is in a Strong Financial Position to Build Banfora Objective is to put an optimal financing plan in place which eliminates, or at least minimizes, requirement for issuing new equity Forward gold sales program provides greater cash flow certainty increases cash flows from Sabodala versus lenders lower gold price assumption Deferring Plant Construction by One Quarter Additional cash flows from Sabodala Completion of Banfora Project infill drill program, which may result either in an increase in quantum of debt or lower cost Other Considerations Lower lender gold price assumption Cost overrun facility / minimum cash balance Financing costs 2018/2019 Exploration expenditures Equipment facility Anticipated Uses (2018/19) (Millions) Pre-production capital (4) $ 232 Operating costs $ 7 Corporate overhead $ 20 Consolidated minimum cash $ 20 TOTAL $ 279 Anticipated Sources (2018/2019) (Millions) Cash balance as at June 30, 2017 $ 80 Sabodala free cash Flow (3) $ 88 Forward gold sales (8) $ 11 Debt facility (based on indicative term sheets) $ 150 TOTAL $ 329 Refer to Endnotes (3), (4) and (8) on slide 69. 8

9 Sabodala Senegal, West Africa 9

10 Replacing Proven & Probable Reserves & Extending Sabodala Mine Life to 2031 Proven and Probable Reserves (6) (Moz) 2.7M Proven & Probable Reserves (As at June 30, 2017) Maki Medina (8) Updated Sabodala Technical Report: Annual Average Production of 176Koz at AISC* of Less Than $900/oz * Refer to Non-IFRS Performance Measures on slide 68. Refer to endnote (6) on slide

11 Continued Success with Multi-Pit, Multi-Phase Sequencing Operations Close Proximity to Mill Currently mining four pits 8 km-25 km from plant After Gora is completed in 2018, all future reserves will be within 10 km radius of mill Model Provides Operating Flexibility Variable ore types provide consistent plant feed Sequencing waste movement to match mine fleet capability Oxide/fresh ratio can be managed during year Stockpile strategy allows for varying strip ratios and mined ore grade Lower risk for variations in operating conditions and ore body characteristics 11

12 Growth of Niakafiri Reserve Underpins Stronger Updated Mine Plan Niakafiri (including Goumbati West and Kobokoto) +334Koz added Ongoing drill program targeting additional reserves Production brought forward in plan with initial stripping mid , , , ,000 50,000 Production (oz) Underground Deferred June Dec Defers capital outlays from previous LOM will look to defer further pending additional open pit reserves Additional time to drill at pit bottom(s), targeting for increased underground reserves Engineering at PFS level, look to strengthen economics $80 $60 $40 $20 $0 ($20) ($40) Cash Flow Before Taxes and Other ($1,250/oz) June Dec Other items include working capital, advanced royalty costs, government social fund, value added tax refunds, closure costs, plant residual value, regional office costs, CSR costs, corporate overheads and regional exploration costs. 12

13 Reconciling Well To Reserve Model 1 g/t Au cut-off Proven and Probable Reserves Actual Mined Variance Deposit Tonnes (kt) Grade (Au g/t) Au (koz) Tonnes (kt) Grade (Au g/t) Au (koz) Tonnes (%) Grade (%) Masato Phase % -15% 54% Masato Phase % -5% 4% Gora % 6% 6% Golouma South 1, , % 8% 26% Kerekounda % -18% 215% Total 2, , % 0% 20% Au (%) Grade Control Process Working Well in High Grade Lode Vein Deposits RC grid drilling in advance, controlled drill & blast techniques, floor mapping and visual controls 0% variance in grade and 19% increase in tonnes resulting in 20% increase in ounces Conservative geological interpolation in oxide zones Detailed bench by bench dilution analysis for mineable grade estimates Continuous improvement programs, geological control integrated within mine operations 13

14 Processing Cost (US$/t) Milled Material (Mt) Operating Costs Update Mining Unit Costs Adjusted to Reflect Multiple Pits LOM Processing Costs and Tonnages 5.00 Calibrated to Sabodala actuals 4.50 Increased fuel costs Additional excavator and ancillary hours Processing Unit Costs Driven by Ore Blend Higher HFO, energy consumption calibrated to material types 2018/2019 reflecting Sabodala actuals reflects further optimization of plant, increased nationalization of workforce and cost savings initiatives $/t Mined Total Golouma Gora Kerekounda Masato Niakafiri Sabodala Maki Medina Fresh Material (Mt) Oxide Material (Mt) Goumbati West Average

15 Recapitalization Supports Growth and Long-Term Annual Production of 200Koz Underground capital deferred to 2022 (full owner/operated) Sustaining capital increased by $48 million vs. previous plan as a result of mine life extension earlier replacement of mine mobile fleet (lower equipment operating costs not included) replacement of mill parts due to longer life and addition of second primary crusher additional TSF containment required in designs in progress for an additional lift or in-pit storage Niakafiri relocation of communities estimated to be $26 million Sustaining Capex Unit LOM AVG 2017 H Open Pit Mining USDM Underground Mining USDM - Processing USDM Admin & Other Sustaining USDM Community Relations USDM Total Sustaining Capex USDM Capital Projects & Development Underground Equipment & Development USDM Other Projects & Development USDM Total Projects and Development USDM Combined Total (USDM) USDM

16 Opportunities to Maintain Annual Production of +200Koz Beyond 2022 Niakafiri Four significant opportunities for continued growth at Niakafiri 1. Restricted areas (sacred sites, cemetery, schools) 2. Extending the Niakafiri West trend Northwards 3. Exploring a potential NW trend under Sabodala village 4. Extending the Niakafiri Main zone at depth Underground Current reserves of 346Koz within a resource (MII) base of 1.3Moz OJVG previously reported ~900Koz in underground reserves Extended drilling as we complete pit bottoms for higher grade and thicker zones for improved mining methods (long-hole vs cut & fill) Current operating scenario is for an owner mine fleet capital reduction if contractor fleet

17 Full Government & Community Support for Niakafiri Resettlement Fully Supported Approach to Resettlement Action Plan (RAP) Full support of the Government of Senegal at all levels, including a written directive issued by President Community acceptance of definitional drilling inside and outside village prior to commencement of resettlement discussions RAP Planning Activities are Community Led and Managed by ERM Support of both Sabodala Village and Medina Sabodala communities Negotiation committee formally put in place in June 2017 (comprising communities, local authorities and Teranga) Household surveys are underway to document livelihood activities and affected immoveable assets Resettlement site selection by the community is nearing completion Construction of New Resettlement to be Completed by Q Resettlement of 500 households to one resettlement site 17

18 Banfora Project Burkina Faso, West Africa 18

19 Overview of Permitted Banfora Project Senegal Ideally Situated on a Prolific Gold Belt Permitted mining license that covers 89 km 2 Exploration licenses covering +1,000 km 2 Mali Burkina Faso Niger Burkina Faso s second major city, Bobo-Dioulasso, has an international airport and is easily accessible from Banfora Project Situated within the prolific mafic volcanic greenstone belt that hosts similar deposits including Tongon in Côte d Ivoire Four Deposits Included in Feasibility Study Nogbele, Stinger, Samavogo and Fourkoura Tongon Côte d Ivoire Bobo-Dioulasso Banfora Ghana Togo Benin Banfora Benefits from Fiscal Stability Guarantees Under Teranga s mining convention, certain tax rates are stabilized for the Banfora Project Banfora Project Samavogo Banfora Project tax rate will be 17.5% Nogbele Stinger Fourkoura Proposed Plant Site 19

20 De-Risking and Optimizing the Project Over the Last 12 Months Drilling Campaign Four initial deposits Infill and confirmation drilling with more than 1,000 holes drilled since July 2016 Metallurgical Test Work & Flowsheet Optimization Trade-Off Studies & Optimization Plant production rates & mill sizing Tailings design options Power source options Mine equipment selection Construction housing Community Relations Resettlement action plan Livelihood restoration Feasibility Study (Technical Report) Full reconstruct of resource models, reserves estimate & detailed LOM plan Process design criteria & flowsheet, capital & operating cost estimates Revised water balance & tailings design Revised closure plan, site investigation Construction schedule Early Works Site infrastructure Vendor packages EPCM tender process July 2016 August

21 Pre-Production Capital Costs Pre-Production Capital Costs Millions Indirect project construction $19.6 Capital Cost Estimates Prepared by Lycopodium Lycopodium has extensive experience building mines in Burkina Faso and other countries in West Africa Contractor, vendor, labour productivity and construction logistics are well-known to Lycopodium as they are completing a similar project at nearby Houndé Owners team included in capital estimate Low Risk Standard Design Straightforward flowsheet Many design similarities to Sabodala Processing plant $46.6 Reagents and plant services $12.2 Infrastructure $52.9 Mining infrastructure & equipment $30.2 EPCM costs $16.3 Owners project costs $30.5 Subtotal $208.2 Contingency $24.0 Total (a), (b), (c) $232.3 (a) Sum of individual amounts may not equal due to rounding. (b) Excludes cost to mine and stockpile 764 Kt at 2.25 g/t or 55Koz (strip ratio of 9:1) prior to mill production which has been included in mining operating costs. (c) Excludes $12 million used for construction readiness activities spent prior to major construction. 21

22 Robust LOM Physicals and Cash Flows Physicals Near surface, lode vein orebodies with mostly visual control that outcrop at surface Overall strip ratio averages approximately 7:1 LOM Unit Costs Similar to Sabodala and competitive with peers LOM AISC* and Cash Flows All-in sustaining costs* per ounce below $850 9-year LOM free cash flow from operations* of $409 million (5) Net cash flow is estimated at $176 million (5) Total LOM Average Ore mined Mt Waste mined Mt Total material mined Mt Ore milled Mt Mill head grade g/t Gold produced (1) Koz 1, Mining $/t mined Processing $/t milled General & administrative $/t milled Sustaining capital $M AISC* $/oz Refer to Endnotes (1), (4) and (5) on slide 69 *Refer to Non-IFRS measures on slide 68. **Sum of individual amounts may not equal due to rounding. Income taxes, W/C and other $M 29 3 Free cash flow from operations* $M Pre-production capital (4) $M Net Cash Flow (5) $M

23 Significant Advantages to Modeling Banfora on Sabodala Mine Samavogo Pits Matches Teranga s Strength & Experience Similarities between Sabodala design and proposed design at Banfora will help to ensure a smooth build and operation Conventional open pit mining techniques Same type of ore recovery as Sabodala Teranga team has developed an expertise for operating in a multi-pit, central mill type of operation and is using the operating flexibility this brings to its advantage Deposits Located Close to Proposed Plant Site Largest deposit, Nogbele is adjacent to proposed plant site other deposits within close proximity Fourkoura 6 km Stinger 15 km Samavogo 25 km Selected trucks have the added flexibility to haul ore directly to plant Banfora Project: Proposed Mine Site Plan Nogbele Pits Camp Process Plant Water Harvesting Dam Tailings Storage Facility Fourkoura Pits Stinger Pits 23

24 Banfora Project: Mineral Resource Estimate Updated Mineral Resource Estimate Completed by RPA The previous resource models used broad grade shell boundaries, MIK probabilistic estimation directions, did not follow the variable geological trends and included all dilution Current resource models 20,000m RC and DD drilled June Dec 2016 to infill and confirm geological trends 440 updated discrete individual mineralization wireframes generated Individual mineralization wireframes used as hard boundaries OK and ID3 grade estimation methods used (previously OK and MIK) Smaller block sizes to correspond to narrow mineralized zones and allow better mining selectivity $1,450 pit shells used to constrain resources (global resources previously reported) Modeling Approach Maintains Integrity 7 months required to complete remodeling, estimation and mineral resource models Modeling approach maintains the integrity of the geological and structural trends for better reliability and confidence for the mine plan Infill Drilling of Inferred Resources >50% of a 65,000 metre infill drilling program on these resources has been completed to Infill and upgrade Inferred Resources located adjacent and near to the current reserve pits 24

25 Favourable Mineral Resources Comparison Nogbele Central (Looking East) 2013 Gryphon MIK Model SURFACE 2017 Teranga RPA OK Wireframe Model SURFACE SOFT DOMAIN BOUNDARY (USED PREVIOUSLY) MIK Modeled Grades OK Wireframe Constrained SOFT DOMAIN BOUNDARY HARD DOMAIN BOUNDARIES (CURRENTLY USED) 25

26 Block Model Mechanics Block Model Schematic External dilution: Amount of block edge mixing with the adjacent block. More contact mixing in transition and fresh material due to blasting Laterite/Saprolite = 0.15 m Transition/Fresh = 0.20 m or 0.30 m (depending on ore geometry) Ore Blocks (2P Reserves) Internal dilution: Flagging for mining continuity Internal waste was reflagged as ore Isolated ore was reflagged as waste Some edge blocks were reflagged as ore for additional contact dilution Waste Blocks (Ore Loss) Diluting Blocks (Internal Waste) Block sizes (SMU) Generally (2.5 m x 2.5 m x 2.5 m) but (2.5 m x 2.5 m x 5 m) in places 2.5 m minimum mining width + dilution representing 100t excavator Ore recovery of 95%-98% Dilution of 5%-10% 26

27 Conventional Carbon in Leach Circuit: Design Criteria Summary Primary jaw crusher (Metso C kW) Live stockpile ore reclaim feeders SAG and ball milling with pebble crushing (SABC) 7.3m dia 4000 kw SAG 5.5m dia 4000 kw Ball 338 dry tpoh oxide ore; 250 dry tpoh primary ore Target grind P micron; no gravity circuit Leach times: 36 hours primary, 24 hours oxide (low cyanide and lime consumption); oxygen addition Standard elution, electrowinning, carbon recovery and tailings thickening Composite Composite Average Au g/t Laboratory Gold Extraction % Predicted Plant Recovery % Previous Average Recovery % Oxide Primary- granitic Nogbele North primary Nogbele Central, West primary Fourkoura Primary LOM Average

28 Simplified Flow Sheet Trash Screen Primary Crushing Ore Storage Emergency Pebble Crushing Grinding Reclaim Sag Mill Cyclones Ball Mill Elution Electrowinning Intensive Cyanidation Cyanide Leach & Adsorption Carbon Regeneration Kiln Gold Room Plant Water Storage Thickening Tailings Storage Raw Water Supply 28

29 Upside Expected in Near-Term with Targeted Infill Drill Program Extensive Infill Drill Program Currently Underway Infill drill program is targeting inferred resources located near to the current reserve pits Objective is to increase drill hole density within the existing inferred resources $1,200 Reserves Pit Limit Target Area Along Strike Target Area at Depth $1,450 Resource Pit Limit More than 50% of a planned 65,000 metre drill program has been completed to date Aiming for a Conversion Rate of 25%-50% of Inferred Given demonstrated continuity of mineralization of the inferred resources, 25%-50% of inferred resources is targeted to be converted to indicated Near-Term Upside Expected to Improve Economics Reserves update expected in H

30 Resettlement Action Plan Progressing Well with Community Support Working in Partnership with the Local Communities Resettlement sites approved and physical planning is underway Finalized compensation agreements Employment opportunities and sustainable development initiatives will provide further socio-economic growth Commenced early community development activities RAP managed by ERM Multi-Year Resettlement Minimizes Upfront Capital Spend & Enhances Mining Footprint Flexibility Construction of first households to begin in Q households to be resettled over 5 years One RAP for all resettlements Phased resettlement approach allows for optimization and changes in mine plan Fourkoura 2021: 74 Nogbele Q218: : 177 Banfora Project (date: # of households to be resettled) Samavogo 2021: 90 Stinger 2021: 49 30

31 Pre-Construction Activities Timeline Jul. 17 Aug. 17 Sep 17 Oct. 17 Nov. 17 Dec. 17 Jan. 18 Feb. 18 Mar. 18 Apr. 18 May. 18 Jun. 18 Feasibility Study Infill Resources Drilling Updated Resource Models and Mine Plan Updated Reserves Initial Site Infrastructure, Civils, Equipment Selection Revised OT/EPCM Scope EPCM Award Front End Engineering Design, Procurement CSMP Contractor Awards Plant Construction Project Finance Process Community Relations, Relocation Planning, Livelihood Restoration Process 31

32 Improved Feasibility Study Gryphon 2013 Teranga P reserves 1.05Moz 1.16Moz Capital costs (4) (including contingency) $229M $232M Contract Miner Owner Operator Mining costs per ore tonne $23.25/t ore $404/oz $17.97/t ore $358/oz Life of mine 8 years 9 years Revenue $1.3B $1.4B EBITDA $455M $580M* NPV (undiscounted) $205M $219M More Reserves Longer LOM Higher Revenue Better NPV IRR (at $1,300 gold) 17% 18% Total LOM cash costs $744/oz $666/oz* Refer to Endnotes (4). *See non-ifrs performance measures, slide 68. Lower Costs 32

33 Exploration Burkina Faso, Senegal & Côte d Ivoire 33

34 Extensive Exploration Opportunities Across Wide West African Footprint The Gambia Senegal Sabodala Gold Mine Status: Producing Reserves: 2.7Moz (2) M&I: 4.4Moz (2) Mali Burkina Faso Niger Guinea- Bisseau Banfora Project Guinea Dianra Golden Hill Exploration JV Gourma Exploration JV Sierra Leone Mahepleu Côte d Ivoire Ghana Togo Benin Liberia Tiassale Guitry Refer to Endnote (2) on slide 69 Sangaredougou 34

35 Burkina Faso: One of the World s Fastest Growing Gold Regions Vision: to be a diversified mid-tier West African gold producer 35

36 Aggressive Inferred Resource Drill Program Resource Upgrade infill Drilling Program Includes initial four deposits: Nogbele, Fourkoura, Stinger and Samavogo Inferred resources within and immediately adjacent to current reserve pits 65,000 metre drill program was initiated to improve the drilling density with the wireframes with a goal of reclassifying much of the inferred ounces Program is ~70% complete Nogbele: 43,500 m planned (65% complete) Stinger: 10,000 m planned (40% complete) Samavogo: 7,500 m planned (100% complete) Fourkoura: 4,000 planned (100% complete) Resource Upgrade Infill Drill Program 36

37 Drill-Ready Targets Underlie Multi-Year Regional Exploration Program Proposed Plant Site Reserve Deposits Exploration Targets Kondandougoug Prospective Banfora Land Package ~12 targets identified by Gryphon team prior to acquisition Targets are within trucking distance of proposed plant site Bagu Sud Samavogo North Targets Have Potential to Become Resources Kafina West: 1,000 metre NE-trending soil and auger anomaly. Drill results of g/t Au and g/t Au Konatvogo: 2,000 metre NW-trending soil and auger anomaly between the Fourkoura and Nogbele deposits. Up to 21.6 g/t Au from altered shear-hosted quartz vein outcrops Bassongoro: 1,500 metre NNE-trending soil and auger anomaly (up to 15g/t Au). Intersection of regional Nianka and Fourkoura structures undrilled Korindougou Kafina West Bazogo Ouahiri Bassongoro Raul Raul Nogbele Konatvogo Fourkoura Petit Colline Sud Hillside Stinger Muddhi Samavogo 37

38 Tight Circle of Priority Prospects at Golden Hill Starting to Come Together All priority prospects are very close All are very similar geologically All have similar structural controls Drilling Programs Focused on Four Prospects Ma Prospect (currently one core drill) Jackhammer Hill (currently one core drill) Peksou Prospect Nahiri Prospect Next Steps Drilling will continue in Q4 at Ma, Jackhammer Hill, Peksou and Nahiri prospects Auger drilling planned for Didro, Nabale and Nabere targets Targeting an initial resource estimation in

39 Ma Prospect: Drill Plan Attractive Geology, Alteration & Structure Gold mineralization at the Ma prospect is hosted in an extensive, favourably altered, pyritic, silicified and brecciated shear system within a sequence of mafic volcanics intruded by at least two distinct phases of granitic intrusive bodies Expanding Current Drill Dimensions Thus far, the Ma mineralized zone has been tested by core drilling over a strike extent of 1,420 metres, and combined core and RC drilling over a strike length of 2,300 metres Gold mineralization is hosted by an extensive NWtrending fault zone traceable from surface to depths of metres The mineralized zone remains open to further expansion through the entire drilled area to depth and along strike Next Steps Drilling evaluation will continue throughout 2017, systematically extending the dimensions of mineralisation, targeting a initial resource estimation in

40 Demonstrating Hole-to-Hole and Section-to-Section Continuity at Golden Hill Ma Prospect Representative Drill Section (A-A ) Ma Prospect Representative Drill Section (C-C ) Hole-to-hole and section-to-section continuity at Golden Hill from core drilling program, which currently extends over a minimum 1,420 metre strike length 40 40

41 Newest Targets: Peksou and Nahiri, Early Stage Exploration Success Peksou Prospect GHDD003 Cross-Section Nahiri Prospect Drill Plan Current minimum strike length of 600 metres with initial core drill results of: g/t Au; g/t Au and g/t Au. 2,500-metre planned drill program in Q Current minimum strike length of 350 metres with initial core drill results of: g/t Au; g/t Au and g/t Au. 2,000-metre planned drill program in Q

42 New Target: Jackhammer Hill Prospect Golden Hill: Jackhammer Hill Prospect Hidden Potential at Never Previously Drilled Target 1,000 metre long auger, soil and rock chip anomaly Currently drilling with core drill on a minimum 1,500 metre program Encouraging Visual Results From First Set of Holes Assays pending 42 42

43 Sabodala: Many Opportunities Remain on Mine License Birimian Geologic Host Extensive structural corridor hosting prolific mineralisation Sabodala Mine License (Senegal) Exploration Targets of Current Interest Niakafiri Goumbati West/Kobokoto Branson East (A, B & C) Current Program & Next Steps Completed property-wide BLEG survey, covering mine license and regional land package, to evaluate potential buried targets beneath lateritic and alluvial cover Follow-up in Q and early

44 Sabodala: Niakafiri Deposit and Drill Plan Four Core Drills Utilized to Complete Drill Program 163 holes drilled since Q4 2016, comprising 18,750 metres towards resource/reserve upgrading and resource addition Next Steps Planning to re-initiate core drilling program in Q initially focusing on northern extension of Niakafiri West infilling the gap at southern limit of Niakafiri southeast 44

45 Côte d Ivoire: Early Stage 3 km x 6 km Gold-in-Soil Anomaly Early stage evaluations either completed or ongoing One additional permit (Guitry West) awaiting final stage approval will further consolidate the Guitry area Follow up program of grid extension and pitting nearly complete Next Steps Most recent permit Sangaredougou to have initial sampling completed by Q Plan initial drilling at Guitry in Q

46 Robust Growth Profile Updated 2017 Exploration Budget Kerekounda Golouma W* Golouma S* Gora Sabodala Masato Production Niakafiri Main Niakafiri West Samavogo Stinger Nogbele Construction $ 20 MILLION Niakafiri SE Niakafiri SW Maki Medina Korouloulou Goumbati West/Kobokoto Marougou Main Golouma North* Ma Fourkoura Feasibility Study Concept Study (Initial Resource) Burkina Faso Senegal Côte d'lvoire Mamasato Kobokoto Sekoto Kinemba Kouroundi Koutouniokolla Diadiako Maleko Bransan East A,B,C Leocounda Kou louqwinde Jam Cinnamon Khayrosita Honey Diagoun Maragou South Tiassale Guitry Sangaredougou Dianra Mahepleu Peksou Nahiri Kafina Jackhammer Hill Muddi Bagu Sud Petite Colline Ouahiri Samavogo North Bassangoro Hillside Konatvogo Djinta Raul Fembefasso Kassengara Weah Tambiga Hill Korindougou Bongori Foutouri Advanced Exploration Advanced Exploration 2 Advanced Exploration 3 Senegal Côte d Ivoire Burkina Faso 46

47 Sabodala (Senegal) Appendix

48 Sabodala: Updated Life of Mine Assumptions (Technical Report Filed August 30, 2017) $1,250 Gold Spot Price Per Ounce $1.10 Euro:USD Exchange Rate $0.81 Light Fuel Oil Per Litre $0.46 Heavy Fuel Oil Per Litre 48

49 Sabodala: LOM Production Plan Sabodala Masato Gora Kerekounda Golouma Niakafiri Maki Medina Goumbati West Kobokoto Underground Summary 2017 Mid-Year LOM Plan LOM AVG 2017 (H2) 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 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 Ore Milled Mt Head Grade g/t Oxide % 23% 35% 28% 30% 50% 37% 31% 29% 23% 33% 30% 23% 4% 4% 6% 6% 6% Produced Oz Moz

50 ('000 oz) Sabodala: Mineral Reserves (By Pit) Deposits (Mt) Proven Probable Proven and Probable (g/t) Au (Moz) (Mt) (g/t) Au (Moz) (Mt) (g/t) Au (Moz) Reserve Ounces Variance Masato Niakafiri East Golouma West Sabodala Gora Kerekounda Goumbati West and Kobokoto Maki Medina Niakafiri West Golouma South Subtotal Open Pit Stockpiles Total Open Pit with Stockpiles Golouma West Kerekounda Golouma West , ,704 Golouma South Total Underground TOTAL Open Pit and Underground EOY2015 ($1,100/oz) Milled Ounces Golouma W Redesign Masato Redesign Niakafiri GBW/KBK Sabodala Redesign Model Variance MID2017 ($1,200/oz) 50

51 Sabodala: Underground Assumptions xxxx TABLE 15-4 DILUTION PARAMETERS Teranga Gold Corporation Golouma Gold Project Development Width (m) Height (m) Dilution Width (m) Dilution Height (m) Ramp/Level Access/Remuck Operating Waste Development Ore Development (lifts 1,3) Ore Development (lifts 2,4) Attack Ramps Vent Access/Sumps % Dilution TABLE 15-6 UNDERGROUND MINERAL RESERVE ESTIMATE JUNE 30, 2017 Teranga Gold Corporation Golouma Gold Project Probable Orebody Tonnes (000) Grade g/t Au Ounces (000) Au GOLW GOLW GOLS KRKD Total 2, TABLE 15-5 CUT-OFF GRADE ESTIMATE Teranga Gold Corporation Golouma Gold Project Deposit Kerekounda Golouma South Golouma West Average Grade (g/t) Unit Cost ($/t) Unit Cost ($/t) Unit Cost ($/t) Underground Mining Processing G&A Total

52 Sabodala: LOM Capital Expenditures Sustaining Capex Unit LOM AVG 2017 H Open Pit Mining USDM Processing USDM Admin & Other Sustaining USDM Community Relations USDM Total Sustaining Capex USDM Capital Projects & Development Underground Equipment & Development USDM Other Projects & Development USDM Total Projects and Development USDM Combined Total (USDM) USDM

53 Sabodala: LOM Operating Costs Operating Costs Unit LOM AVG Open Pit Mining Underground Mining Processing General & Admin. Mining Underground Mining Processing General & Admin Refining & Freight Byproduct Credits Total Operating Costs Deferred Stripping Adjustment (1) Royalties (2) Total Cash Costs (3) Total Cash Costs (3) Capex Capitalized Deferred Stripping Capitalized Reserve Development All-In Sustaining Costs (3) All-In Sustaining Costs (3) Franco Nevada Stream Franco Nevada Stream All-In Sustaining Costs (3) plus stream All-In Sustaining Costs (3) plus stream USD/t mined USD/t milled USD/t milled USD/t milled USDM USDM USDM USDM USDM USDM USDM USDM USDM USDM USD/oz USDM USDM USDM USDM USD/oz USDM USD/oz USDM USD/oz 2017 H (4) (0) - (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) 1, (15) - (15) , ,055 1,011 1, , ,290 1,110 1, , , , ,350 1,170 1,104 1,

54 Sabodala: LOM Cash Flows Production Gold Price Revenue Total Cash Costs Capex All-in Sustaining Costs All-in Sustaining Costs Franco Nevada Franco Nevada Cash Flow before Taxes, Interest and other Cash Flow before Taxes, Interest and other Taxes, Interest, and other (1) Net Cash Flow Unit LOM *Cash flows exclude impact of gold forward contracts. See endnote (8) Moz $/oz USDM USDM USDM USDM $/oz USDM $/oz USDM $/oz USDM USDM H AVG ,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 3, , , ,290 1,110 1, (14) (100) (2) (30) (6) (1) Other items include working capital, government waiver payments, government social fund, VAT refunds, closure costs, plant residual value, regional office costs, CSR costs, and regional exploration costs. Excludes any allocation of corporate overheads. 54

55 Banfora Project (Burkina Faso) Appendix 55

56 Banfora Project: LOM Assumptions $1,250 Gold Price $1.10 Euro to USD Fx 40%-50% of operating costs in Euros $0.59 per litre Heavy Fuel Oil Average of 17 Million Litres Per Year $1.04 per litre* Light Fuel Oil Average of 14 Million Litres Per Year *$0.88 per litre during construction 56

57 Banfora Project: Open Pit Mineral Resources Summary (as at June 30, 2017) Deposit Mtonnes Measured Resources Indicated Resources Measured + Indicated Resources Inferred Resources Grade (Au g/t) Moz MTonnes Grade (Au g/t) Moz MTonnes Grade (Au g/t) Moz MTonnes Grade (Au g/t) Nogbele Fourkoura Samavogo Stinger Total Notes for Mineral Resources Estimate Moz 1. CIM definitions were followed for Mineral Resources. 2. Open pit oxide Mineral Resources are estimated at cut-off grades ranging from 0.35 g/t Au to 0.45 g/t Au. 3. Open pit transition and fresh rock Mineral Resources are estimated at cut-off grades ranging from 0.45 g/t Au to 0.55 g/t Au. 5. High grade assays were capped at grades ranging from 2.5 g/t Au to 48.0 g/t Au. 6. Mineral Resources are inclusive of Mineral Reserves. 7. Open pit shells were used to constrain open pit resources. 8. Mineral Resources are estimated using a gold price of $1,450 per ounce. 9. Sum of individual amounts may not equal due to rounding. 57

58 Banfora Project: Mineral Resources Fourkoura Cross Section Looking North MIK grade shells shown in pink in comparison to RPA mineralization wireframes 58

59 Banfora Project: Mineral Resources Comparison Nogbele Northwest (Looking North) 2013 Gryphon MIK Model 2017 Teranga RPA OK Wireframe Model 59

60 Banfora Project: Open Pit Mineral Reserves Summary (as at June 30, 2017) Deposit MTonnes Proven Reserves Probable Reserves 2P Reserves Grade (Au g/t) Moz MTonnes Grade (Au g/t) Moz MTonnes Grade (Au g/t) Nogbele Fourkoura Samavogo Stinger Total Moz Notes for Mineral Reserves Estimate 1. CIM definitions were followed for Mineral Reserves. 2. Mineral Reserve cut-off grades range from 0.39 g/t to 0.53 g/t Au for oxide and 0.51 g/t to 0.64 g/t Au for fresh rock based on a $1,200/oz gold price. 3. Dry bulk density was estimated in the Mineral Resource models; values for ore range from 1.61 t/m 3 to 2.22 t/m 3 for oxide and 2.50 t/m 3 to 2.80 t/m 3 for fresh rock. 4. Mineral Reserves account for mining dilution and mining ore loss. 5. A minimum mining width of 2.5 m was used. 6. Proven Mineral Reserves are based on Measured Mineral Resources only. 7. Probable Mineral Reserves are based on Indicated Mineral Resources and diluting material. 8. Sum of individual amounts may not equal due to rounding. 60

61 Banfora Project: LOM Production Plan 7 Deposit MTonnes Proven Reserves Probable Reserves 2P Reserves Grade (Au g/t) Moz MTonnes Grade (Au g/t) Moz MTonnes Grade (Au g/t) Nogbele Fourkoura Samavogo Stinger Total Moz 61

62 Banfora Project: Pre-production Capital Costs ($M) Indirect project construction 19.6 Processing plant 46.6 Reagents and plant services 12.2 Infrastructure 52.9 Mining infrastructure and equipment 30.2 EPCM costs 16.3 Owners project costs 30.5 Subtotal Contingency 24.0 Total (a), (b), (c) (a) (b) (c) Sum of individual amounts may not equal due to rounding. Excludes cost to mine and stockpile 764 Kt at 2.25 g/t or 55Koz (strip ratio of 9:1) prior to mill production which has been included in mining operating costs. Excludes $12 million used for construction readiness activities spent prior to major construction. 62

63 Banfora Project: LOM Sustaining Capital Costs LOM Sustaining Capital ($M) Mining fleet replacement and mine sustaining 30.1 Processing sustaining 13.5 General and administration sustaining and other 3.8 Tailings storage facility 26.9 Deferred resettlement action plan costs 30.5 Total

64 Banfora Project: LOM Cash Flow (a), (b), (c), (5) Total LOM 2024 Average Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Gold produced Koz 1, Gold price $/oz 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Gold sales $M 1, Cash costs $M (716) (81) (7) (46) (81) (80) (81) (79) (78) (83) (79) (77) (27) Royalties and gov't payments (e) $M (85) (10) (6) (10) (10) (10) (8) (10) (9) (8) (8) (6) Sustaining capital $M (105) (15) (12) (13) (18) (14) (12) (14) (7) (6) (9) (0) AISC (d) $M (906) (105) (7) (63) (104) (107) (106) (99) (102) (99) (92) (95) (33) AISC (d) $/oz , Income taxes, W/C and other (f) $M (29) (3) (1) (4) (2) (2) (2) (4) (3) (8) (4) (2) (1) 5 Free cash flow from operations (d) $M (8) Pre-production capital $M (232) (120) (112) (0) Net cash flow $M 176 (128) (85) NPV 5% $M 90 IRR 15% (a) This LOM production plan assumes plant construction will commence in Q With plant construction moved to Q2 2018, this LOM production plan is anticipated to shift by several months. (b) Sum of individual amounts may not equal due to rounding. (c) All figures are on a 100% basis. (d) See Non-IFRS Performance Measures on slide 68 of this presentation. (e) Includes royalties, business taxes, mortmain taxes, and surface taxes. (f) Includes income taxes, refundable VAT movements, government social fund, and rehabilitation and equipment residual value. Excludes all project financing costs and allocation of corporate overhead costs. Refer to Endnote (5) on slide 69 64