London 121 Conference

Transcription

1 The Next Multi-Jurisdictional West African Gold Producer London 121 Conference May 10-11, 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 Annual Information Form dated March 29, 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. This presentation is as of May 5, 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 Potential Re-Rate With Achievement of Game-Changing Milestones in 2017 Teranga s Share Price vs. Net Present Value (NPV) (6) per Share Enterprise Value/2P Reserves ($/oz) B2Gold 417 Roxgold % Endeavour Golden Star Semafo Asanko 119 Teranga 70 Alacer 38 C$1.98 Perseus 24 C$0.66 C$1.41 Share Price BMO NPV per Share Revalued Share Price 0.5x Current TGZ NPV Trading Multiple (6) 1.4x Average NPV Multiple for Medium Producers (6) Enterprise Value/2017E EBITDA ($) B2Gold Semafo 6.4x Endeavour 6.2x Golden Star 5.8x Asanko 5.6x Alacer 5.1x Roxgold 4.8x Teranga 2.2x 21.1x Refer to Endnote (6) on the second last slide. Data Source: BMO GoldPages published May 1,

4 Building a Profitable Multi-Asset Mid-Tier West African Gold Producer FULLY PERMITTED DEVELOPMENT ASSET IN BURKINA FASO EXPLORATION OPPORTUNITIES ON WORLD-CLASS GOLD BELTS STRONG BALANCE SHEET & SUPPORTIVE CORNERSTONE INVESTOR STRONG SOCIAL LICENSE & AWARD-WINNING CSR PRODUCING ASSET IN SENEGAL PROVIDES FOUNDATION FOR GROWTH PROVEN & EXPERIENCED LEADERSHIP TEAM 4

5 West Africa: One of the World s Fastest Growing Regions for Gold Production NORTH AMERICA 12.0Moz Senegal Burkina Faso WEST AFRICA 8.2Moz EUROPE 8.7Moz TRANSITIONAL ECONOMIES (1) 6.8Moz CENTRAL AMERICA 5.7Moz Côte d Ivoire ASIA 20.4Moz AFRICA 17.4Moz SOUTH AMERICA 14.8Moz OCEANIA 11.7Moz Source: 2016 gold production from CPM Gold Yearbook 2017 Refer to Endnote (1) on the second last slide 5

6 Accomplishments in 2016 Assets Acquired in 2016 Through Gryphon Minerals Record production and unit costs Iamgold Avocet Optimized and implemented measures to de-risk Sabodala Endeavour Nordgold Nordgold Orezone Completed acquisition of Gryphon, providing opportunities for asset diversification, scale and growth Semafo Roxgold Endeavour Burkina Faso MNG Gold West African Res. B2Gold Semafo Completed joint venture in Côte d Ivoire Centamin Golden Hill Gourma Operating Gold Mine/ Development Project Banfora Gold Project 6

7 Extensive Opportunities for Growth The Gambia Senegal Sabodala Gold Mine Status: Producing Reserves: 2.6Moz (2) M&I: 4.4Moz (2) Mali Burkina Faso Niger Guinea- Bisseau Banfora Project Status: Feasibility 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 the second last slide Sangaredougou 7

8 Significant Catalysts for 2017 Production 2017 production outlook: 205, ,000 ounces (3) Generate free cash flow (4) from Sabodala Development Complete Banfora project feasibility study Obtain board approval to proceed Announce funding and construction Exploration Senegal Burkina Faso Côte d Ivoire Refer to Endnotes (3) and (4) on the second last slide 8

9 Producing Asset Senegal, West Africa

10 000 s oz Au Sabodala Provides Solid Platform For Value Creation & Long-Term Growth 2017 Outlook 205K-225Koz (3) Opportunity to grow production by increasing material movement and resource conversion at Niakafiri deposit on the mine license (5) Opportunity to increase production through resource conversion and new discoveries (5) +200Koz average annual production from (3) Refer to Endnotes (3) and (5) on the second last slide 10

11 Significant Potential on Large Land Package 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 11

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 Development Asset Burkina Faso, West Africa 13

14 Fast-Tracking Completion of Banfora Feasibility Study H H H H Anticipated first gold pour at Banfora Commenced drilling campaign to confirm & increase reserves Complete feasibility study & technical report mid-year Seek board approval and commence construction Construction 14

15 Exploration Assets Burkina Faso, Côte d Ivoire & Senegal 15

16 Exploring Highly Prospective Properties Across West Africa 2017 Exploration Budget Senegal Senegal Mine License $4M Regional $2M Burkina Faso Banfora $4M Golden Hill $4M Gourma $0.5M $ 15 MILLION Côte d Ivoire $0.5M Burkina Faso Senegal Côte d'lvoire Operating Gold Mine/ Development Project 16

17 Potential Resource Conversion/Expansion at Niakafiri on Senegal Mine License Niakafiri Deposit (Senegal) SOUKHOTO DINKOKONO The Most Prospective Target on the Mine License Situated ~5km from the mill Measured and indicated resources of ~600,000 ounces, and over 200,000 ounces of inferred, inclusive of 314,000 ounces in proven and probable reserves as at December 31, 2015 (2) NIAKAFIRI WEST SABODALA NIAKAFIRI MAIN Advanced Drill Program Mine License (Senegal) 9,300 metres drilled in 81 holes to date Results of 60 holes have been received NIAKAFIRI SOUTHWEST Sabodala Mill NIAKAFIRI SOUTHEAST Niakafiri MAKI MEDINA Refer to Endnote (2) on the second last slide 17

18 Positive Drill Results at Niakafiri Extend Mineralisation Along Strike and at Depth Niakafiri Main NNE Section 440N Some of the Widest and Highest Grade Mineralised Intervals Encountered to Date 4.18 g/t Au over 23 metres including 6.52 g/t Au over 12 metres in MDD g/t Au over 33 metres including 4.23 g/t Au over 17 metres in MDD g/t Au over 29 metres including 6.51 g/t Au over 6 metres in MDD g/t Au over 21 metres at the end-of-hole in MDD Phase 2 Follow-up Commenced Two drills currently active and focused on extending the mineralisation along trend and to depth Niakafiri Main NNE Section 560N 18

19 Banfora Mine License Activities Initial Evaluation Drilling on Targets Kafina West Most positive prospect hosting multiple targets of varying orientations and projected dimensions Initial RC drill results display broad anomalous, nearsurface oxide mineralization Recently completed follow-up diamond drill program to evaluate structural control Hillside Five core holes returned favourable visuals along 350-metre strike length within the ~1,000-metre geochemical trend Core results are pending Banfora Project Mine License (Burkina Faso) KAFINA WEST OUAHIRI RAUL BAGU SUD /WEAH NOGBELE Proposed Plant BAZOGO KORINDOUGOU BASSONOGRO HILLSIDE STINGER KONANDOUGOU SAMAVOGO FOURKOURA SUD 19

20 M&I Resources are inclusive of P&P Reserves Uniquely Positioned at Golden Hill Siou Pit M&I: 0.89 Moz ¹ Mana M&I: 3.63 Moz ¹ Situated Near Other High-Grade, High-Value Properties 468km2 situated ~200km NE of Banfora gold project On the Houndé belt in close proximity and along strike to other large deposits Exploring Drill-Ready Targets Previous exploration work defined high quality prospects More advanced work, including substantial drilling, scheduled in the coming months Joint Venture (51%, earning 80%) Joint venture partner is Boss Resources (ASX:BOE) Acacia JVs ⁴ Houndé M&I: 2.55 Moz ³ Yaramoko M&I: 0.81 Moz ² Teranga s JV Golden Hill Project Sarama Permits Sources ¹ Semafo Corporate Presentation (Mar 2017) ² Roxgold Corporate Presentation (Feb 2017) ³ Endeavour Corporate Presentation (Feb 2017) ⁴ Acacia Preliminary Results (Feb 2017) ⁵ Savary Corporate Presentation (Mar 2017) Golden Hill Joint Venture (Burkina Faso) Karankasso JV Inf: 0.67 Moz ⁵ South Houndé JV Inf: 2.10 Moz ⁴ 20

21 Golden Hill: Two New Discoveries Ma Ma Primary and Secondary Structures 12 of the 13 core holes drilled intersected gold mineralization Positive grade and width intervals were returned along the entire 1,300-metre strike extent of the primary Ma structure, as well as a parallel structure and cross structures Multi-drill follow-up program planned for Q to extend both along trend and to depth of encouraging results, and to initiate in-fill sectional drilling along the entire structure Nahiri Never previously drilled; no artisanal activity RC program was encouraging with positive geological reports related to the core drilling undertaken Assay Results Pending From Two Additional Prospects A complete table of results for all 13 drill holes is available in the April 25 th Golden Hill press release available on the Company s website 21

22 Early-Stage Exploration at Gourma Gourma (Burkina Faso) Initial Field Program Commenced Included prospecting, mapping and auger drilling Banfora Golden Hill Burkina Faso Gourma Q2 program will include structural geologic map and initial RC drilling evaluation 22

23 Optionality in Côte d Ivoire Randgold Guitry Exploration Program Commenced in Q1 Expanding initial sample from the previous soil grids Hand-pitting program centered on the strongest portions of the previously discovered 3 by 6 kilometre gold-in-soil geochemical anomaly Initial RC or core drilling evaluation planned for late Q2 Dianra Mahepleu Endeavour Côte d Ivoire Newcrest Perseus Tiassale Endeavour Taurus Sangaredougou Guitry Operating Gold Mine/ Development Project 23

24 Appendices 24

25 Capital Structure & Shareholders Capital Structure Post-Consolidation* Basic common shares outstanding (March 31, 2017) 107,345,546 Geographic Breakdown of TGZ Shareholders (as at March 31, 2017) Stock options outstanding 4,527,040 Fully diluted 111,872,586 Number of shares owned by insiders 21,355,706 Market capitalization (May 3, 2017) C$370M / US$269M Cash (as at March 31, 2017) $94.5M Top 5 Shareholders % O/S Position* Tablo Corporation ,656,300 Europe 26% UK 4% Australia 5% Unidentified 19% Van Eck Associates Corporation ,268,110 Heartland Advisors 2.8 2,887,756 Sentry 2.4 2,750,000 Oppenheimer Funds 2.3 2,460,828 North America 40% Rest of World 1% Below Analysis Asia Threshold 0.3% 5% *Estimated number of common shares post 1-for-5 share consolidation which began trading on May 8,

26 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 Implied Net Smelter Royalty 26

27 2017 Outlook Refer to Endnotes (3), (8), (9) and (10) on second last slide 27

28 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 28

29 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 29

30 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 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 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. 30

31 Life of Mine Cash Flows Activity Unit LOM Average Production (3) 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 (8) USDM 2, All-in sustaining costs (8) $/oz ,072 1,483 1, Franco Nevada USDM Franco Nevada $/oz Cash Flow 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 (3) and (8) on the second last slide 31

32 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

33 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 (8) USDM 1, Total Cash Costs (8) USD/oz Capex USDM Capitalized Deferred Stripping USDM Capitalized Reserve Development USDM Corporate Admin USDM All-In Sustaining Cash Costs (8) USDM 2, All-In Sustaining Cash Costs (8) 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 (8) on the second last slide 33

34 Competent & Qualified Persons Statement The technical information contained in this document relating to the open pit mineral reserve estimates for Niakafiri 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 However, he is a "qualified person" as defined in NI and a competent person as defined in the 2012 Edition of the Australasian code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ). Mr. Chawrun has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code. Mr. Chawrun has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document. The technical information contained in this document relating to mineral resource estimates for Niakafiri 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 NI However, she is a "qualified person" as defined in NI and a competent person as defined in the JORC Code. Ms. Nakai-Lajoie has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the JORC Code. Ms. Nakai-Lajoie has consented to the inclusion in this document of the matters based on her compiled information in the form and context in which it appears in this document. The information in this document that relates to Mineral Reserve estimates has been extracted from the Technical Report dated March 22, 2016 ( Technical Report ). The Technical Report is available to be viewed on the company s website at: Teranga's exploration programs are being managed by Peter Mann, M.Sc. Geology, Minerals Exploration who is a Professional Fellow Member of the Australasian Institute of Mining and Metallurgy (Reg ). The technical information contained in this document relating exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of NI However, he is a "qualified person" as defined in NI and a competent person as defined in the JORC Code. Mr. Mann 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 JORC Code. Mr. Mann 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 herein. 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 Standards on Mineral Resources and Mineral Reserves (the CIM Standards ), adopted by the Canadian Institute of Mining, Metallurgy, and Petroleum ( CIM ) and its council, as may be amended from time to time by CIM. 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 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 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. Teranga confirms that it is not aware of any new information or data that materially affects the information included in the Technical Report or first quarter 2017 results, market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement. 34

35 Endnotes 1) According to the CPM Gold Yearbook 2017, Transitional Economies include: Vietnam, North Korea, Soviet Union, Russia, Uzbekistan, Kazakhstan, Armenia, Azerbaijan, Kyrgyzstan, Georgia, Tajikistan, and Cuba. 2) Teranga s Sabodala Mineral Reserves and Mineral Resources estimates as at December 31, 2015 as per Company disclosure. There has been no material changes to these mineral reserve and resource estimates since December 31, 2015, except for the depletion of reserves during 2016 and first quarter All material assumptions and technical parameters previously disclosed continue to be applicable. The Company plans to update its mineral reserve and resource estimates in 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) This production profile 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. 4) Free cash flow is a non-ifrs financial measure and does not have a standard meaning under IFRS. The Company calculates free cash flow as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives. Other companies may calculate this measure differently. Please see the Non-IFRS Performance Measures section in Management s Discussion & Analysis for the twelve months ended December 31, 2016 available on the Company s website at 5) Over the past several years more than twelve million ounces of measured and indicated resources have been identified within the south eastern Senegal region, including the Massawa, Golouma, Makabingui and Mako projects, along with thecompany s own Sabodala gold mine. With exploration work completed to date and the prior exploration success seen in the area Management believes there is a reasonable basis to anticipate future resource to reserve conversion. 6) 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 May 1, 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$1,268 SPOT gold price per ounce, 5% discount, 0.73 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 7) 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at 20% of the spot gold price. 8) Total cash costs per ounce sold, all-in sustaining costs per ounce, and all-in sustaining costs (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs), and earnings before interest, taxes, depreciation and amortization ( EBITDA ) are non-ifrs financial measures and do not have standard meanings under IFRS. Please see the Non-IFRS Performance Measures section in Management s Discussion & Analysis for the year ended December 31, 2016 available on the Company 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 also include cash/(non-cash) inventory movements and non-cash amortization of advanced royalties. 9) Excludes capitalized deferred stripping costs, included in mine production costs. 10) 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 1:1.10. 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. 35

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