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1 TSX:TGZ / OTCQX:TGCDF The Next Multi-Asset Mid-Tier West African Gold Producer Investor Presentation Cape Town February 2018

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, intended to, objective 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, net present value, anticipated future cash flows, anticipated construction readiness activities for the Company s Wahgnion gold project in Burkina Faso as well as the anticipated completion of construction of the Wahgnion project - including the first gold pour, the anticipated discovery of reserves at the Wahgnion project, and Teranga s estimated full year financial and operating totals, as well as anticipated 2017 and 2018 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 February 5, 2018 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 Deep Value: A Re-Rating Opportunity (C$) $7.54 NPV Per Share based on cash & 2P reserves $3.38 TGZ Current Share Price (closing price Jan 31, 2018) Excludes potential value from: Wahgnion infill drill program Golden Hill Afema and Côte d Ivoire assets $1.02 $1.41 $5.11 Cash balance as at December 31, 2017 Wahgnion Project NPV 5% based on 2P Sabodala NPV 5% based on 2P $1,300 Gold Price per Ounce Assumption 3

4 Potential for a Major Rate Reset Teranga s Share Price vs. Net Present Value* (NPV) (12) per Share Data Source: BMO GoldPages published January 29, % EV/2P Reserves ($/oz) B2Gold Roxgold Endeavour Semafo Golden Star Alacer Teranga 87.3 C$6.48 C$7.78 Perseus Asanko C$3.49 EV/2018E EBITDA Share Price 0.55x Current TGZ NPV Trading Multiple (12) BMO NPV per Share (Spot) Revalued Share Price 1.2x Average NPV Multiple for Medium Producers (12) Alacer Endeavour B2Gold Semafo Roxgold Golden Star Perseus 3.9 *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnote (12) Teranga Asanko

5 Capital Structure and Recent Share Price Performance Capital Structure (at December 31, 2017 unless otherwise noted) Common shares outstanding 107.3M Stock options outstanding 4.5M Fully diluted 111.8M Number of shares owned by insiders 23.8M Market capitalization (January 31, 2018) Source: IR Insight on January 31, 2018 C$363M/ US$295M Cash / net cash $88M / $73M Top Shareholders % of O/S As at Dec 31, Tablo Corporation 21.5% 23,128,900 2 Van Eck Associates Corporation 6.8% 7,272,264 3 Heartland Advisors 4.5% 4,800,000 4 Ruffer LLP 4.3% 4,607,243 5 Oppenheimer Funds 3.5% 3,710,828 6 Dimensional Fund Advisors 2.9% 3,068,425 7 Franklin Advisers 2.4% 2,582,200 8 Fidelity Management & Research 1.6% 1,747,740 9 Universal-Investment Gesellschaft 1.6% 1,735, Colonial First State Global AM 1.6% 1,725,708 Share Price Performance (TSX: TGZ) (Closing price on December 12, 2017 January 31, 2018) 50% 40% 30% 20% 10% 0% TGZ-TSX GDXJ Gold Price ASX Delisting Completed Compulsory Sale Facility before markets open on December 13 stock price hit low of $2.30 (compared to $2.42 closing price on December 12) +40% +11% +9% 5

6 Building The Next Multi-Asset Mid-Tier West African Gold Producer The Gambia Senegal Sabodala Gold Mine 1.4Moz production since IPO in late 2010 Mali Burkina Faso Niger Guinea- Bisseau Wahgnion Development Project Expect to close financing and commence construction in Q Teranga has nearly 4.0 million ounces of gold reserves from its Sabodala Gold Mine and its Wahgnion Development Project (1)(2) Guinea Sierra Leone Mahepleu Liberia Dianra Guitry Côte d Ivoire Golden Hill Exploration JV Tiassale Ghana Afema Togo Gourma Exploration JV Benin Refer to Appendix Endnotes (1) and (2) Sangaredougou 6

7 Garnering International Recognition for Corporate Social Responsibility 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 7

8 Checking Off the Boxes Production at Largest Gold Mine in Senegal Achieved record production of 233,267 ounces in 2017 Issued 2018 production guidance of 210, ,000 ounces (3) Generating free cash flow from Sabodala* Development of Second Mine Project debt financing expected to close in Q2 Plant construction expected to commence in Q2 Extensive Exploration Program in 2018 Golden Hill (Burkina Faso) Guitry (Côte d Ivoire) Afema (Côte d Ivoire) *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnote (3) 8

9 Significantly Increasing Production and Improving Free Cash Flow Teranga Consolidated Production Profile (koz) (3),(4),(7) Sabodala + Wahgnion ~350Koz annual production Opportunities to maintain production and free cash flow through resource conversion & discoveries at Sabodala & Wahgnion 350Koz ~$100M annual free cash flow* (11) ~$70M annual free cash flow* (5) Sabodala Banfora *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnotes (3), (4), (5), (7) and (11) 9

10 Robust Exploration Pipeline in Three Mining-Friendly Jurisdictions Production Sabodala Construction Feasibility Study Niakafiri Main Niakafiri West Niakafiri SE Wahgnion Concept Study (Initial Resource) Maki Medina Goumbati West/Kobokoto Marougou Main Golouma North Afema 1 Ma Advanced Exploration Advanced Exploration 2 Maleko Mamasato Kinemba Afema 2 Guitry Afema 3 Sangaredougou Dianra Peksou Nahiri Kafina Jackhammer Hill Muddi Bagu Sud Petite Colline Ouahiri Samavogo North Bassangoro Hillside Konatvogo Raul Djinta Fembefasso Advanced Exploration 3 Maragou South Tiassale Mahepleu Tambiga Hill Weah Kassengara Korindougou Bongori Foutouri Senegal Côte d Ivoire Burkina Faso 10

11 Prudent Approach to Capital Allocation Drives Solid Financial Position $88 Million Estimated cash balance as at December 31, $90 Million (6) Estimated cash flow from Sabodala $150 Million $150M project debt facility expected to close in Q Solid Financial Position to fund $232 million pre-production capital cost of building second mine (Wahgnion) Refer to Appendix Endnote (6) 11

12 2018 Catalysts Golden Hill Regular exploration updates starting in Q1 Maiden resource Wahgnion Closing of project financing Commence mill construction Reserve update Update NI Côte d Ivoire Project updates from Guitry and Afema 12

13 Sabodala Senegal, West Africa 13

14 Largest Gold Mine in Mining-Friendly Senegal Mine License Reserve Development Niakafiri Focused on resource definition and converting resources Mali Regional Land Package Property-wide bulk leach extractable gold (BLEG) sampling program completed to identify new exploration targets 2.7 Million Ounces in Proven & Probable Reserves 4.4 million ounces in measured and indicated resources (9) 13-year mine life (9) Life of Mine Summary (2) Refer to Appendix Endnotes (2) and (9) 5 years ( ) 13 years ( ) Annual production 213koz 176koz All-in sustaining costs $885/oz $893/oz Total free cash flow $230M $556M 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 14

15 Replacing Reserves & Increasing Production and Cash Flow Proven and Probable Reserves (2) (Moz) 250, , , ,000 5-Year Production Profile (oz) Maki Medina , June Dec (8) 5-Year Cash Flow Before Taxes and Other ($1,250/oz) Updated Sabodala Technical Report: Annual Average Production of 176Koz at AISC* of Less Than $900/oz $80 $60 $40 $20 $0 ($20) ($40) *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnote (2) June Dec

16 Opportunities to Maintain Sabodala s Annual Production of +200Koz Beyond 2022 Four Significant Opportunities for Continued Growth at Niakafiri Niakafiri (Sabodala Senegal) 1 1. Restricted areas (sacred sites, cemetery, schools) 2. Extending the Niakafiri West trend northwards 3. Exploring a potential northwest trend under Sabodala village 4. Extending the Niakafiri Main zone at depth 2 Underground 3 Current reserves of 346Koz within a resource (MII) base of 1.3Moz Extend drilling as we complete open pit mining for higher grade and thicker zones for improved mining methods (long-hole vs cut & fill) Current operating scenario is for an owner mine fleet

17 Wahgnion Project Burkina Faso, West Africa 17

18 Overview of Permitted Wahgnion (Formerly 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 Initial Feasibility Study Includes only 4 deposits: Nogbele, Stinger, Samavogo and Fourkoura Proven and probable reserves of 1.2Moz Measured and indicated resources of 1.8Moz Inferred resources of 0.7Moz Tongon Côte d Ivoire Bobo-Dioulasso Wahgnion Ghana Togo Benin Life of Mine Summary (2) 5.5 years LOM (9 years) Wahgnion Project Annual production 131koz 119koz All-in sustaining costs $807/oz $843/oz Samavogo Total free cash flow $302M $409M Pre-production capital ($232M) Net cash flow $176M Nogbele Stinger Fourkoura Proposed Plant Site 18

19 Strategic Pillar of Teranga s Growth Plan Wahgnion Infill Drill Program: Aiming for a Conversion Rate of 25%-50% of Inferred 75,000-metre infill drill program is targeting inferred resources located near to the current reserve pits $1,200 Reserves Pit Limit Target Area Along Strike Target Area at Depth $1,450 Resource Pit Limit Objective is to increase drill hole density within the existing inferred resources 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

20 Drill-Ready Targets Underlie Multi-Year Regional Exploration Program Proposed Plant Site Reserve Deposits Exploration Targets Kondandougoug Prospective Wahgnion Land Package ~12 targets identified Targets are within trucking distance of proposed plant site Bagu Sud Korindougou 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 Kafina West Bazogo Ouahiri Bassongoro Raul Raul Nogbele Konatvogo Fourkoura Petit Colline Sud Hillside Stinger Muddhi Samavogo 20

21 Golden Hill Burkina Faso 21

22 Uniquely Positioned at Golden Hill Situated in the Heart of the Houndé Belt in Burkina Faso 468 km 2 situated ~200km NE of Wahgnion gold project One of the most prospective gold belts in the world today 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 Joint Venture (51%, earning 80%) Joint venture partner is Boss Resources (ASX:BOE) Teranga has an earn-in agreement with Boss pursuant to which Teranga, as the operator, can earn an 80% interest in the JV upon delivery of a feasibility study and the payment of AUD2.5 million 22

23 Golden Hill: High-Grade, Big Potential Five Prospects Within ~5 km Radius of Central Point In just one year, there have been three discoveries at Golden Hill To date Golden Hill has produced a series of high-grade, near-surface drill results at the first five prospects: Ma Jackhammer Hill Peksou C-Zone Nahiri The close proximity of these targets and prospects lends itself to a central mill/multi-deposit operation similar to Sabodala and Wahgnion For full details on Golden Hill, please visit 23

24 Ma Prospect: The Most Advanced Prospect at Golden Hill Ma Prospect 2.4 kilometre long mineralized system Comprises multiple mineralized zones within a broad regional structural complex Ma prospect remains open to the east and the west and to depth Expect to complete an initial resource by end of 2018 Ma Prospect Drill Plan Recent Drilling Highlights at Ma High-grade results confirm continuity of grade and width from surface to depths now approaching 125 metres g/t Au including g/t Au including g/t Au (GHDD-067) g/t Au including g/t Au, and g/t Au (GHDD-078) g/t Au and g/t Au including g/t Au (GHDD-080) 24

25 Multiple Mineralized Zones Within a Broad Regional Structural Complex at Ma Prospect Ma Prospect Representative Drill Section Ma Prospect Representative Drill Section These two sections outline the continuity of gold mineralization identified by drilling along the eastern half of Ma Main and also demonstrate the extension of the mineralization beyond the mafic volcanic host and into the associated intrusive units (section A-A ). Mineralization remains open to further expansion at depth

26 Rapidly Progressing Towards an Initial Resource for Golden Hill in 2018 Ma Prospect Representative Drill Section Ma Prospect Representative Drill Section These two sections outline the continuity of gold mineralization identified by drilling along the western half of Ma Main and demonstrates the presence of multiple mineralized zones including the BZ-1 and BZ-2 mineralized shear zones in section G-G. Mineralization remains open to further expansion at depth

27 Golden Hill: Hidden Potential at Jackhammer Hill Prospect Hidden Potential at Never Previously Drilled Target Golden Hill: Jackhammer Hill Prospect 1,000 metre long auger, soil and rock chip anomaly Will continue aggressive drill program throughout 2018 Objective is to complete an initial resource by end of 2018 Jackhammer Hill Prospect Highlights g/t Au including g/t Au including g/t Au and g/t Au including g/t Au including g/t Au (GHDD-104) Core drilling results at Jackhammer Hill included 110 grams per tonne of gold over 14 metres g/t Au including g/t Au including 1 1,499 g/t Au (GHDD-111) (uncut) g/t Au including g/t Au (GHDD-103) 27

28 Early-Stage Exploration Success at Peksou and C-Zone Targets Peksou Prospect GHDD003 Cross-Section C-Zone 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. Aggressive drill program C-Zone prospect is the newest prospect to be drill tested with encouraging results including g/t Au and g/t Au. A follow-up drill program will be undertaken to continue throughout 2018 here in early

29 Côte d Ivoire Exploration Guitry & Afema 29

30 Significant Opportunities in Côte d Ivoire Dianra Randgold Initial 5 Greenfield Exploration Tenements Totaling km 2 Positive preliminary results at the Guitry prospect have made it a priority 3 km x 7 km gold-in-soil geochemical anomaly Initial drilling evaluation being undertaken with 4000-metre RC drill program underway Recently Added 1,400 km 2 Afema Land Package Afema mine license Mahepleu Endeavour Three exploration permits (Ayame, Mafere, Aboisso) Endeavour Côte d Ivoire Newcrest Perseus Tiassale Guitry Operating Gold Mine/ Development Project Sangaredougou Afema 30

31 Afema: Looking to Confirm and Improve Historical Resource* of 2Moz of Gold Well Located Geologically Ahafo 17 Moz Newmont Asankrangwa Gold Belt Along trend and within the same gold belts of a number of high profile producing mines in Ghana JV With Sodim Limited (51%, earning 70%) Teranga can earn a 70% interest through the completion of a three-year $11M exploration and community relations work program and the delivery of a positive feasibility study Teranga will sole fund and manage the exploration programs and feasibility studies Upon delivery of a positive feasibility study, Sodim can elect to maintain 30% or convert to a 3% NSR Côte d Ivoire 3 Afema Exploration Permits Sefwi-Bibiani Gold Belt Bibiani 7 Moz Resolute Mining Chirano 5 Moz Kinross Ghana Edikan 6.6 Moz Perseus Bogoso/Prestea18 Moz Gold Star Essase 5.19 Moz Obotan 5.5 Moz Asanko Konogo 1.4 MozSignature Metals Akyem Newmont Obuasi 41 Moz Anglo Gold Ashanti Kubi 0.9 MozAsaute Gold Corporation Damang 7.1 Moz Goldfields Tarkwa 24 Moz Kumasi Ashanti Gold Belt Winneba-Kibi Gold Belt Sodim received $2.5 million upon signing of MOU with progressive payments of up to $7.5 million with the delivery of a positive feasibility study Afema Mining Permit Iduapriem 8.2 Moz AngloGold Ashanti Cape Coast *Refer to Appendix Afema Mine License Historical Resource Estimate 31

32 Appendix

33 Executive Team Richard Young, MA, CPA President & CEO 25+ years experience in gold mining including 13 years at Barrick Gold including finance and corporate development Paul Chawrun, P.Eng, MBA Chief Operating Officer 25+ years experience in mining including serving as Director, Technical Services at Detour Gold Navin Dyal, CPA Chief Financial Officer 13 years experience in mining including 7 years at Barrick Gold as Head of Finance in copper business unit David Savarie, LL.B General Counsel & Corporate Secretary 11 years of Corporate Counsel experience in mining including his role as Deputy General Counsel and Corporate Secretary of Gabriel Resources Sepanta Dorri, MAcc, MBA, CPA VP, Corporate and Stakeholder Development 10 years experience in mining including 5 years at Xstrata Nickel in Strategic Planning and M&A winner of the WXN Top 100 Canada's Most Powerful Women award, Trailblazers and Trendsetters Category David Mallo, B.Sc. Geology VP, Exploration 35+ years of mineral exploration in project evaluation and program management, playing an integral role in acquisition, discovery, and exploration of world-class deposits including Eskay Creek and Cobre Panama Aziz Sy, P.Eng, M.Sc., MBA General Manager, SGO 17+ years experience in managing gold exploration projects, including his work as Vice President Senegal Operations for the Oromin Joint Venture Group until its acquisition in 2014 by Teranga Gold 33

34 Board of Directors Alan Hill, M.Eng Chairman 35+ years experience in mining including 20 years at Barrick Gold in project evaluation and development Richard Young, MA, CPA President & CEO 25+ years experience in gold mining including 13 years at Barrick Gold in finance and corporate development William Biggar, MA, CPA Director 25+ years experience in senior executive positions in investment, mining and real estate including Barrick Gold and Merrill Lynch Jendayi Frazer, Ph.D. Director 17 years experience in key roles supporting initiatives and policies to build Africa s equity and commodity markets. First woman U.S. Ambassador to South Africa Edward Goldenberg, MA, BCl Director Distinguished career in policy including 10 years as Senior Policy Advisor to the Prime Minister of Canada and the Prime Minister's Chief of Staff in Honourary Doctorate of Laws from McGill University Christopher Lattanzi, B.Eng Director 30 years experience in mining property valuation, scoping, feasibility studies and project monitoring on a global basis. Founder of Micon International David Mimran Director & Teranga s Largest Shareholder CEO of Grands Moulins d Abidjan and Grands Moulins de Dakar, among the largest producers of agri-food in West Africa. Special Advisor to the Government of the Republic of Côte d'ivoire Alan Thomas, CPA Director 30+ years mining and energy industry experience in senior financial and director roles including 6 years as VP and CFO of ShawCor and 11 years as CFO of Noranda Frank Wheatley, LL.B Director 28 years mining industry experience as director, senior officer and legal counsel. Extensive experience in public financing, project debt financing, permitting of largescale mining projects and strategic M&A 34

35 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 * 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 Effective Cost of Franco-Nevada Stream on All-in Sustaining Costs per Ounce (based on $1,200/ounce gold price) Effective Cost 8.4% $100 $58 4.8% 2016E Post 2019 Implied Net Smelter Royalty 35

36 Qualified Persons Statement Teranga's exploration programs in Burkina Faso are managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of National Instrument Standards of Disclosure for Mineral Projects ( NI ). 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 "Qualified Person" under NI The technical information contained in this news release relating to 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. The RC and diamond core samples are assayed at the BIGGS Laboratory in Ouagadougou, Burkina Faso. Mr. Mann has consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein, and approved such disclosure. Quality Assurance and Quality Control For details on the quality assurance program and quality control measures applied during the execution of the exploration work and results reported on herein please refer to Chapter 11 Sample Preparation, Analyses and Security of the Technical Report on the Wahgnion Gold Project, Burkina Faso West Africa dated October 20, 2017 available on the Company s website at and SEDAR at 36

37 Non-IFRS Performance Measures The Company has included non-ifrs measures in this document, including total cash cost per ounce of gold sold, all-in sustaining costs per ounce, free cash flow from operations and EBITDA. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-ifrs measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council ( WGC ) definition of all-in sustaining costs seeks to extend the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company s cash expenditures. In addition, the calculation of all-in sustaining costs does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company s overall profitability. For Sabodala and Wahgnion, life of mine total cash costs and all-in sustaining costs figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Total cash costs and all-in sustaining costs figures for Sabodala further excludes amortized advanced royalty costs. Other companies may calculate this measure differently. Consolidated total cash costs and all-in sustaining cost figures add corporate overhead costs. Other companies may calculate this measure differently. The Company calculates free cash flow from operations as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of its ability to generate cash for growth initiatives. Earnings before interest, taxes, depreciation and amortization ( EBITDA ) is a non-ifrs financial measure, which excludes income tax, finance costs (before unwinding of discounts), interest income, depreciation and amortization, and non-cash impairment charges from net earnings. EBITDA is intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures. Net asset value ( NAV ) per share and net present value ( NPV ) per share are non-ifrs financial measures. NAV per share is equal to NPV per share and is calculated using the NPV of the life of mine ( LOM ) cash flows based on the Wahgnion and Sabodala technical reports. The NPV calculation assumes a long-term gold price of $1,300 per ounce, a 5% discount rate, a 0.79 CAD/USD exchange rate, a 1.10 Euro/USD exchange rate, and current cash on hand. It includes interest, income taxes, and changes in working capital and excludes corporate administration, exploration expenditures, minority interest payments and debt repayments. The Wahgnion and Sabodala NPV are based on reserves only. For more information regarding these measures, please refer to the Company s management s discussion and analysis accessible on the Company s website at 37

38 Endnotes 1. Refers to proven and probable reserves of 1.2Moz for the Wahgnion project as per reserve estimate as of September 7, 2017 included in the Wahgnion technical report dated October 20, 2017 available on the Company s website at and SEDAR 2. Refers to proven and probable reserves of 2.7Moz for the Sabodala project as per reserve estimate as of June 30, 2017 included in the Sabodala technical report dated August 30, 2017 available on the Company s website at and SEDAR 3. This production target is based on proven and probable reserves only from Teranga s Sabodala Project as at June 30, For more information regarding Teranga Gold s Mineral Reserves and Resources and related notes, please refer to the NI compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company s website at and on SEDAR at 4. This production target is based on proven and probable ore reserves only for Teranga s Wahgnion Project as at September 7, For more information regarding the Wahgnion s Mineral Reserves and Resources and related notes, please refer to the NI compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company s website at and on SEDAR at 5. LOM assumptions include: Gold Price $1,250 per ounce Heavy Fuel Oil (HFO): Wahgnion - $0.59 per litre Sabodala - $0.46 per litre Light Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period) Sabodala - $0.81 per litre Euro to USD Exchange Rate: $ This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project, Senegal, West Africa, dated August 30, 2017 (the Sabodala Technical Report ). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs. 7. See the NI compliant technical report for the Wahgnion Project. This LOM production plan assumes that the Wahgnion Project plant construction will commence in Q If the Wahgnion plant construction commences in Q instead, the LOM production plan is expected to shift by several months. 8. Other considerations (uses) is an estimate of potential other uses of the Company s cash during the period, including, but not limited to, discretionary exploration expenditures, financing costs and any cost overrun or minimum cash requirements that might be contained in any completed debt financing agreement. Actual amounts may total more or less than the aggregate amount specified. 9. Teranga s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, For more information regarding Sabodala s Mineral Reserves and Resources and related notes, please refer to the NI compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company s website at and on SEDAR at Teranga s Wahgnion Mineral Reserves and Mineral Resources estimates as at September 7, For more information regarding Wahgnion s Mineral Reserves and Resources and related notes, please refer to the NI compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company s website at and on SEDAR at Free cash flow excludes Wahgnion financing and corporate-wide resource development and exploration expenditures. Please see table on slide 7 of the Company s Investor & Analyst Workshop presentation dated September 14, 2017, which was filed on 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 15, 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$1,229 SPOT gold price per ounce, 5% discount, 0.79 USD/CAD exchange rate.. 38

39 Afema Mine License Historical Resource Estimate A number of economic and technical studies have been prepared on the Afema project prior to Teranga s entry into the Afema JV with Sodim. The most recent study, which included a mineral resource estimate for the Afema mine license, was issued by RockRidge Consulting Services Geologists for and on behalf of TGL and is dated as of June 27, 2016 (the June 2016 Historical Estimate ). The June 2016 Historical Estimate includes an Indicated oxide resource estimate of 110Koz (comprised of 2.7Mt at an average grade of 1.26 g/t Au) and Inferred oxide resources of 122Koz (comprised of 3.0Mt at an average grade of 1.26 g/t Au). In addition, it includes an Indicated transitional resource estimate of 59Koz (comprised of 1.3Mt at an average grade of 1.39 g/t Au) and an Inferred transitional resource of 28Koz (comprised of 0.8Mt at an average grade of 1.11 g/t Au). Finally, the June 2016 Historical Estimate provides a sulphide resource estimate as follows: 865Koz Indicated ounces (comprised of 17.3Mt at an average grade of 1.55 g/t Au) and 806Koz inferred ounces (comprised of 17.8Mt at an average grade of 1.40 g/t Au). This historical estimate is reported as using a cut-off grade of 0.5 g/t Au. RockRidge further states that it reviewed the geological and grade continuity to supplement the review of data quality in order to confirm the CIM mineral resource classification categories used. As well, the June 2016 Historical Estimate states the following with respect to the basis of the mineral resource estimate: mineralized volumes were received for oxide, transitional and sulphide modelled volumes; gold grades were determined using ordinary kriging and Inverse distance squared interpolation (depending on data density) into a 3-dimensional block model constrained by mineralization wireframes; the block models comprised sub-celled block dimensions of 5m x 5m x 1m and 5m x 5m x 2m (depending on data sampling interval); mineralized wireframes were truncated to the topographic surface reflecting the mining that had previously occurred on the property; gold values were investigated for outlier values and put though two statistical capping/cutting routines; Datamine Studio 3 was the modelling package; and relationship between geology and preliminary mining and economic factors was taken into account at all times. Teranga considers the June 2016 Historical Estimate to be a historical estimate as defined under NI and relevant as the most recent resource estimate on the Afema project. Further drilling, resource modelling and updates to key economic assumptions would be required to upgrade or verify these historical estimates as current mineral resources and accordingly they should be relied upon only as a historical resource estimate. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Teranga is not treating the historical estimate as current mineral resources or mineral reserves. 39

40 Trish Moran Head of Investor Relations 77 King Street West, Suite 2110 Toronto, ON M5K 2A1 T: E: W: terangagold.com