PDAC Conference. The Next Multi-Asset Mid-Tier West African Gold Producer. March 4-7, 2018 TSX:TGZ / OTCQX:TGCDF

Transcription

1 TSX:TGZ / OTCQX:TGCDF The Next Multi-Asset Mid-Tier West African Gold Producer PDAC Conference March 4-7, 2018

2 Forward-Looking Statements This document 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 opportunities, results of operations, performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and other opportunities. Wherever possible, words such as plans, expects, does not expect, scheduled, trends, indications, potential, estimates, predicts, anticipate, to establish 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 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 document 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 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 document 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 February 23, 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 (1)(2) $3.50 TGZ Current Share Price (closing price Feb 26, 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 (1) Sabodala NPV 5% based on 2P (2) $1,300 Gold Price per Ounce Assumption *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnotes (1) and (2) 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 February 26, 2018 EV/2P Reserves ($/oz) B2Gold Roxgold Endeavour % Golden Star Semafo Alacer Teranga 86 C$3.50 C$5.09 C$6.11 Asanko Perseus EV/2018E EBITDA Share Price 0.50x Current TGZ NPV Trading Multiple (12) BMO NPV per Share (Spot) Revalued Share Price 1.2x Average NPV Multiple for Medium Producers (12) Alacer B2Gold Endeavour Semafo Golden Star Roxgold 4.1 *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 (February 26, 2018) Source: IR Insight on February 26, 2018 C$376M/ US$294M Cash / net cash $88M / $70M Top shareholders % of o/s As at shares Jan 31, Tablo Corporation 21.5% 23,128,900 2 Van Eck Associates Corporation 6.1% 7,573,022 3 Heartland Advisors 4.5% 4,800,000 4 Ruffer LLP 4.3% 4,607,243 5 Oppenheimer Funds 3.2% 3,460,828 6 Dimensional Fund Advisors 2.9% 3,100,539 7 Franklin Advisers 2.5% 2,707,200 8 Universal-Investment Gesellschaft 1.6% 1,735,000 9 LSV Asset Management 1.6% 1,719, Konwave AG 1.6% 1,698,197 Share Price Performance (TSX: TGZ) (Closing price on December 12, 2017 February 26, 2018) 60% 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) +45% +7% +7% 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 FY2017 Highlights Achieved record production of 233,267 oz of gold Increased Sabodala reserves by 400,000 oz and filed updated NI (2) Announced positive feasibility for Wahgnion Project including reserves of 1.2 million oz (1) More positive drill results from Golden Hill Refer to Appendix Endnotes (1) and (2) 7

8 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) *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnotes (3), (4), (5), (7) and (11) 8

9 Extensive Organic Growth Pipeline 2018 Exploration Budget Burkina Faso $9M-10M Senegal Senegal ~$1M ~$ 15 MILLION Wahgnion Gold Project Côte d Ivoire ~$3M Burkina Faso Senegal Côte d'lvoire Operating Gold Mine/ Development Project 9

10 Strong Financial Position $88 Million Cash balance as at December 31, $90 Million (6) Estimated cash flow from Sabodala Net $150 Million Net $150M project debt facility expected to close in Q Solid Financial Position to fund pre-production capital cost of building second mine (Wahgnion) Refer to Appendix Endnote (6) 10

11 2018 News Flow and Milestones Golden Hill Regular exploration updates starting in Q1 Maiden resource Wahgnion Announcement and closing project financing Commence mill construction Update reserves Update NI technical report Côte d Ivoire Senegal Project updates from Guitry and Afema Production of 210Koz-225Koz Commence Niakafiri relocation 11

12 Sabodala Senegal, West Africa 12

13 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 13

14 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 (6) 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 Endnotes (2) and (6) June Dec

15 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

16 Wahgnion Project Burkina Faso, West Africa 16

17 Strategic Pillar of Teranga s Growth Plan: 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 5.5 years LOM (9 years) Annual production (1) 131koz 119koz Wahgnion Project All-in sustaining costs* $807/oz $843/oz Total free cash flow* $302M $409M Samavogo Pre-production capital ($232M) Net cash flow $176M *Refer to Appendix Non-IFRS Performance Measures Refer to Appendix Endnote (1) Nogbele Stinger Fourkoura Proposed Plant Site 17

18 Next Steps Close project debt financing Commence plant construction Q Q Mid 2018 YE 2019 Announce details of committed financing Update reserves Update NI Anticipated first gold pour at Wahgnion 18

19 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 19

20 Golden Hill Burkina Faso 20

21 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 21

22 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 22

23 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) 23

24 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

25 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

26 Hidden Potential at Jackhammer Hill Prospect Jackhammer Hill Prospect Drill Plan Jackhammer Hill Prospect Representative Drill Section Jackhammer Hill highlight drill results (uncut grades) include the following: Section 0+80 SW: g/t Au, including g/t Au, including 1 1,499.0 g/t Au (GHDD-111); Section 2+00 SW: g/t Au, including g/t Au (GHDD-103); Section 2+00 SW: g/t Au, including g/t Au and, g/t Au, including g/t Au, including g/t Au (GHDD-104); Section 2+00 SW: g/t Au, including g/t Au (GHDD-222); Section 2+40 SW: g/t Au, including g/t Au, including g/t Au (GHDD-221) 26

27 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

28 Côte d Ivoire Exploration Guitry & Afema 28

29 Exciting Opportunities in Côte d Ivoire Dianra Randgold Initial 5 Greenfield Exploration Tenements Totaling +1,800 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 29

30 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 30

31 Appendix

32 2018 Outlook Operating Results Year Ended December Actual Guidance Ore mined ( 000t) 2,101 2,000 2,500 Waste mined ( 000t) 35,385 35,000 37,000 Total mined ( 000t) 37,486 37,000 39,500 Grade mined (g/t) Strip ratio waste/ore Ore milled ( 000t) 4,221 4,200 4,400 Head grade (g/t) Recovery rate % Gold produced (A) (oz) 233, , ,000 Cost of sales per ounce sold $/oz sold ,025 Total cash cost per ounce sold (B) $/oz sold All-in sustaining costs (C) $/oz sold 1,024 1,000 1,075 Cash / (non-cash) inventory movements and amortized advanced royalty costs (C) All-in sustaining costs (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) (C) $/oz sold (81) (50) $/oz sold ,025 Mining ($/t mined) Mining long haul ($/t hauled) Milling ($/t milled) General and Administration ($/t milled) Mine Production Costs $ millions Corporate Administration Expense $ millions Regional Administration Costs $ millions 2.0 ~2.0 Community Social Responsibility Expense $ millions Exploration and Evaluation (D) $ millions 24.9 ~15.0 Sustaining Capital Expenditures Mine site sustaining $ millions Site development costs (E) $ millions Total Sustaining Capital Expenditures (F) $ millions Growth Capital Expenditures (Wahgnion) Feasibility study $ millions 2.4 N/A Construction readiness / early works (G) $ millions 15.8 ~30.0 Total Growth Capital Expenditures $ millions 18.2 ~30.0 Notes to 2018 Guidance A. 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at 20% of the spot gold price. B. Total cash cost per ounce sold is a non-ifrs financial measure and does not have a standard meaning under IFRS. C. All-in sustaining costs per ounce is a non-ifrs financial measure and does not have a standard meaning under IFRS. 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. D. Exploration and evaluation costs includes both Expensed Exploration, primarily attributable to exploration work on exploration permits, and Capitalized Reserve Development, which is work performed on Mine Licenses. E. Site development costs for 2018 include village relocation costs for the Sabodala village. F. Excludes capitalized deferred stripping costs, included in mine production costs. G. Construction readiness / early works expenditures for 2018 includes anticipated expenditures for the construction of the Wahgnion Gold Project prior to completion of a debt facility agreement. Other This forecast financial information is based on the following material assumptions for 2018: gold price: $1,250 per ounce; light fuel oil price $0.87/L; heavy fuel oil price $0.50/L; Euro:USD exchange rate of 1:1.17 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. 32

33 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 33

34 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 34

35 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 35

36 Qualified Persons Statement The technical information contained in this document relating to the Sabodala open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the Professional Engineers Ontario. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of NI Mr. Ling has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI Standards of Disclosure for Mineral Projects. Mr. Ling 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 Sabodala mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a "Qualified Person" under NI Standards of Disclosure for Mineral Projects. 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 technical information contained in this document relating to the Sabodala underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng., of Roscoe Postle Associates Inc. ( RPA ), who is a member of the Professional Engineers Ontario. Mr. Sepp is independent within the meaning of NI Mr. Sepp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Qualified Person under NI Standards of Disclosure for Mineral Projects. Mr. Sepp 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 the Wahgnion open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Glen Ehasoo, P. Eng., of RPA, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Ehasoo is "independent" within the meaning of NI Mr. Ehasoo has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person under NI Standards of Disclosure for Mineral Projects. Mr. Ehasoo 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 Wahgnion mineral resource estimates is based on, and fairly represents, information compiled by Mr. David Ross, P.Geo., of RPA, who is a Member of the Association of Professional Geoscientists of Ontario. Mr. Ross is "independent" within the meaning of NI Mr. Ross has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person under NI Standards of Disclosure for Mineral Projects. Mr. Ross 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. Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of NI Mr. Mann has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person as under NI Standards of Disclosure for Mineral Projects. The technical information contained in this document 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 samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. Mr. Mann 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. Teranga's disclosure of mineral reserve and mineral resource information is governed by NI under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). 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 reports for the Sabodala Project (August 30, 2017) and the Wahgnion Project (October 20, 2017) pursuant to National Instrument Standards of Disclosure for Mineral Projects (the Technical Reports ), or year end 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 announcements concerning the Technical Reports continue to apply and have not materially changed. 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 at 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 NI technical report dated August 30, 2017 available on the Company s website at and SEDAR at 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 available 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 TSX:TGZ / OTCQX:TGCDF Trish Moran Head of Investor Relations 77 King Street West, Suite 2110 Toronto, ON M5K 2A1 T: E: investor@terangagold.com W: terangagold.com