Q Financial & Operating Results. Friday, July 28, 2017

Transcription

1 Q Financial & Operating Results Friday, July 28, 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, 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, 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 July 28, 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 Agenda Paul Chawrun, Chief Operating Officer Dave Mallo, VP Exploration Richard Young, President & Chief Executive Officer Q&A 3

4 Paul Chawrun Chief Operating Officer

5 Q2 Operating Highlights Record Q2 production of 57,557 ounces Gold production continues to reconcile positively to reserve estimates Gold recovery in 92% range Plant throughput rates of >1 million tonnes Generated $22 million dollars in cash flow from operations (before changes in working capital) 5

6 Tracking to 2017 Production Guidance Record Q2 Production (oz Au) YTD Production vs. Guidance (oz Au) 225,000 Upper End of Guidance 205,000 Lower End of Guidance 45,495 49,661 39,857 49,392 52,540 57, ,460 32,480 Q Q Q Q Q Q Q YTD 2017 FY 2017 Guidance 6

7 Tracking to 2017 Cost Guidance All-in Sustaining Costs (excluding cash/non-cash inventory movements and amortized advanced royalty costs) per ounce (4) Mining Costs ($/t mined) $2.25 $2.28 Q Q $931 $933 Milling Costs ($/t milled) Q Q $10.46 $11.57 Q Q Refer to Endnote (4) on the second last slide 7

8 What s in Store at Sabodala in Q3 2017? Sabodala Mine License & Regional Land Package (Senegal) Preparations for Rainy Season Implemented in Q2 Mine has prepared necessary dewatering systems Plant has limited the oxide blend component of ore feed and adjusted the materials handling circuit Mali Q3 Mining Activities at Sabodala Completion of mining at the Golouma South pit Continuing to advance mining at Kerekounda Phase 3 of high-grade Gora pit Preproduction stripping at Golouma West pit with production expected to commence August 2017 Mill Kerekounda Golouma Gora Exploration Prospects Mineral Resources Masato Style Bulk Tonnage Gold Trend Golouma Style High- Grade Gold Trend Mining Concession Exploration Permits Previous Mine License 8

9 Nearing Completion of Banfora Feasibility Study H July 2017 August Anticipated first gold pour at Banfora Commenced drilling campaign to confirm & increase reserves Board approves additional $10M to further advance construction readiness activities Complete feasibility study & seek board approval of construction and financing plan Major construction 9

10 David Mallo Vice President, Exploration 10

11 Increase in Exploration Budget from $15M to $20M Driven by Positive Drill Results Updated 2017 Exploration Budget Senegal Senegal Mine License $6M Regional $1M Burkina Faso Banfora $6M Golden Hill $6M Gourma $0.5M $ 20 MILLION Côte d Ivoire $0.5M Burkina Faso Senegal Côte d'lvoire Operating Gold Mine/ Development Project 11

12 Increased Reserves on Senegal Mine License Niakafiri Deposit (Senegal) Majority of Added Reserves in June 30, 2017 Update Came From Niakafiri Located ~5 kilometres from the Sabodala mill Measured and indicated resources of ~850,000 ounces, and 205,000 ounces of inferred, inclusive of 590,000 ounces in proven and probable reserves as at June 30, 2017 (1) Remains a very prospective target on the mine license Ongoing Advanced Drill Program Remains a highly prospective priority area Drill program is expected to run concurrently with the Sabodala Village relocation Elsewhere on Mine License & Land Package Property-wide bulk leach extractable gold (BLEG) sampling program completed to identify new exploration targets that may be covered by laterite and deep alluvial cover Sabodala Mill Niakafiri Refer to Endnote (1) on the second last slide 12

13 Banfora Mine License Four Deposits Included in Feasibility Study Stinger, Samavogo, Fourkoura and Nogbele Banfora Project Mine License (Burkina Faso) Resource Infill Drilling Designed to convert inferred resources to reserves at all four deposits Program expected to run to end of 2017 Other Regional Prospects Evaluated in Q2 Other targets include Petit Colline, Raul, Hillside & Konatvogo Kafina West remains one of most highly rated regional prospects 13

14 Golden Hill Discoveries and Drill Targets: Located 5km Within a Central Point Golden Hill Property Location Map Two New Discoveries Ma and Nahiri: two new discoveries reported April 25, 2017 Reported positive Phase 2 follow-up drill results July 24, 2017 Two New Drill Targets Peksou and Jackhammer Hill: initial drill results are encouraging Initial drill results from both new targets are available on the Company s website in press release July 24,

15 Ma Prospect: Initial Phase 2 Continues to Yield Positive Results 30 core drill holes were completed during initial Phase 2 drill evaluation Ma Prospect Drill Plan Phase 2 drill program continues to intersect favorable intersections over the minimum 1,300-metre strike extent drilled to date. Initial highlights include: g/t Au including g/t Au (GHDD-040) g/t Au including g/t Au (GHDD-052) g/t Au including g/t Au (GHDD-033) g/t Au including g/t Au (GHDD-031) g/t Au (GHDD-038) Drill program (minimum 7,500 metres) is scheduled to re-start at Ma prospect in early August A complete table of results for all 30 core drill holes is available on the Company s website in press release dated July 24,

16 Ma Prospect: GHDD033-DD015 Cross-Section 16

17 Ma Prospect: GHDD Cross-Section 17

18 Ma Prospect: GHDD Cross-Section 18

19 Nahiri Results Provides Enhanced Geological Interpretations Seven core holes were completed to both confirm earlier reverse circulation drill results and provide better geological and structural orientation information at this new discovery Nahiri Prospect Drill Plan Favourable core drilling intersections including: g/t Au including g/t Au (GHDD-026) g/t Au including g/t Au (GHDD-021) g/t Au including g/t Au (GHDD-025) A complete table of results for all seven core drill holes is available on the Company s website in press release dated July 24,

20 Peksou and Jackhammer Hill Better Than Anticipated Results Peksou Drill evaluation to resume in Q4 to define along trend extensions of this high-grade mineralized system Peksou Prospect Drill Plan Consists of a broadly altered structural zone that crosses both mafic volcanics and granitic intrusive units displaying favorable grades and widths in both host units -- core drilling evaluation will resume in Q4 on this high priority prospect Jackhammer Hill Never before drilled, robust gold-in-soil and auger geochemical anomaly measuring in excess of 2 kilometres of strike extent-two core holes drilled to obtain structural orientation and geological information Additional drilling is planned to coincide with the continuation of current Phase 2 drill program at Ma scheduled early August A complete table of results for all seven core drill holes is available on the Company s website in press release dated July 24,

21 Peksou Prospect: GHDD003 Cross-Section 21

22 Peksou Prospect: GHDD004 Cross-Section 22

23 Early-Stage Exploration at Gourma Gourma (Burkina Faso) Initial Field Program Commenced Included prospecting, mapping and auger drilling to better define mineralizing structures with greatest potential Banfora Golden Hill Burkina Faso Gourma Based on positive auger results, an initial core drilling evaluation began late in Q2 resulting in eight holes at three prospects thus far A follow-up evaluation is planned for Q4 once the rainy season has concluded 23

24 Optionality in Côte d Ivoire Dianra Randgold Guitry Exploration Program a Priority Five greenfield exploration tenements totaling 1,838 km 2 Positive preliminary results at the Guitry prospect have made it a priority for additional exploration work in 2017 Hand-pitting program centered on the strongest portions of the previously discovered 3 by 6 kilometre gold-in-soil geochemical anomaly 6 to 9 g/t Mahepleu Côte d Ivoire Perseus Program will reinitiate in Q4 after the rainy season Endeavour Newcrest Endeavour Tiassale Taurus Guitry Sangaredougou Operating Gold Mine/ Development Project 24

25 Richard Young President & CEO

26 Q2 Achievements Support Key Catalysts on the Horizon Operations 2017 production outlook: 205, ,000 gold ounces (2) Generate free cash flow from Sabodala On track to meet production and cost guidance for the year and are generating solid cash flow, EBITDA and earnings Exploration Senegal Burkina Faso Côte d Ivoire Two new discoveries in April and positive drill results reported in July Development Complete Banfora project feasibility study; results expected to be released in August Obtain board approval to proceed Announce funding and construction Board approved additional $10M to further advance construction readiness activities, and feasibility study on track to be completed in August 26

27 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 27

28 Q&A

29 Appendix

30 Competent & Qualified Persons Statement The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, 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. Ling is a full time employee of Teranga and is not "independent" within the meaning of National Instrument However, he is a "Qualified Person" as defined in NI Mr. 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 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. Ling is a "Qualified Person" under National Instrument 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 mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this 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 underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, 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. Sepp is independent of Teranga and is a "Qualified Person" as defined in NI and a "competent person" as defined in the 2012 Edition of the JORC Code. Mr. Sepp 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 2012 Edition of the JORC Code. 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. 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 National Instrument 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 Competent Person as defined in the 2012 Edition of the JORC Code. Mr. Mann is a "Qualified Person" under National Instrument Standards of Disclosure for Mineral Projects. The technical information contained in this presentation 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. The RC 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 presentation 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 (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the 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. See the Appendix in the Teranga press release dated July 24, 2017 found on for the JORC Code explanations relating to the results in this press release. 30

31 Open Pit and Underground Mineral Resources Summary (1) As at June 30, 2017 Inclusive of Reserves Deposit Sabodala Masato Gora Golouma Kerekounda Niakafiri East Niakafiri West Domain Measured Indicated Measured and Indicated Inferred 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 11, , , , Underground 1, , Combined 11, , , , Open Pit 4, , , Underground 1, , , Combined 4, , , ,024 1, Open Pit Underground Combined , Open Pit , , Underground 2, , Combined , , Open Pit , , Underground Combined , , Open Pit 4, , , , Underground Combined 4, , , , Open Pit 3, , Underground Combined 3, , Notes for Mineral Resources Estimates 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 and Marougou 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 and Marougou 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 7.2 Mt at 0.75 g/t Au for 174,000 oz. 6. Measured Resources at Masato include stockpiles which total 4.2 Mt at 0.68 g/t Au for 92,000 oz. 7. Measured Resources at Gora include stockpiles which total 0.4 Mt at 1.28 g/t Au for 15,000 oz. 8. Measured Resources at Golouma include stockpiles which total 0.04 Mt at 1.38 g/t Au for 2,000 oz. 9. Measured Resources at Kerekounda include stockpiles which total 0.03 Mt at 3.30 g/t Au for 3,000 oz. 10. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au. 11. The figures above are "Total" Mineral Resources and include Mineral Reserves. 12. Open pit shells were used to constrain open pit resources. 13. Mineral Resources are estimated using a gold price of US$1,450 per ounce. 14. Sum of individual amounts may not equal due to rounding. Table continues on next slide Refer to Endnote (1) on the second last slide 31

32 (Continued) Open Pit and Underground Mineral Resources Summary (1) As at June 30, 2017 Inclusive of Reserves Deposit Maki Medina Goumbati West - Kobokoto Golouma North Diadiako Kinemba Koulouqwinde Kourouloulou Domain Measured Indicated Measured and Indicated Inferred 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 2, , Underground Combined 2, , Open Pit 2, , Underground Combined 2, , Open Pit Underground Combined Open Pit Underground Combined Open Pit Underground Combined Open Pit Underground Combined Open Pit Underground Combined Table continues on next slide Notes for Mineral Resources Estimates 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 and Marougou 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 and Marougou 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 7.2 Mt at 0.75 g/t Au for 174,000 oz. 6. Measured Resources at Masato include stockpiles which total 4.2 Mt at 0.68 g/t Au for 92,000 oz. 7. Measured Resources at Gora include stockpiles which total 0.4 Mt at 1.28 g/t Au for 15,000 oz. 8. Measured Resources at Golouma include stockpiles which total 0.04 Mt at 1.38 g/t Au for 2,000 oz. 9. Measured Resources at Kerekounda include stockpiles which total 0.03 Mt at 3.30 g/t Au for 3,000 oz. 10. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au. 11. The figures above are "Total" Mineral Resources and include Mineral Reserves. 12. Open pit shells were used to constrain open pit resources. 13. Mineral Resources are estimated using a gold price of US$1,450 per ounce. 14. Sum of individual amounts may not equal due to rounding. Refer to Endnote (1) on the second last slide 32

33 (Continued) Open Pit and Underground Mineral Resources Summary (1) As at June 30, 2017 Inclusive of Reserves Deposit Kouroundi Koutouniokolla Mamasato Marougou Sekoto Soukhoto Total Domain Measured Indicated Measured and Indicated Inferred 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 Underground Combined Open Pit Underground Combined Open Pit Underground Combined Open Pit 1, Underground Combined 1, Open Pit Underground Combined Open Pit Underground Combined Open Pit 21, , ,882 80, ,665 11, Underground 6, , , Combined 21, , ,655 86, ,438 17, ,004 Notes for Mineral Resources Estimates 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 and Marougou 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 and Marougou at 0.55 g/t Au. 4. Underground Mineral Resources are estimated at a cutoff grade of 2.00 g/t Au. 5. Measured Resources at Sabodala include stockpiles which total 7.2 Mt at 0.75 g/t Au for 174,000 oz. 6. Measured Resources at Masato include stockpiles which total 4.2 Mt at 0.68 g/t Au for 92,000 oz. 7. Measured Resources at Gora include stockpiles which total 0.4 Mt at 1.28 g/t Au for 15,000 oz. 8. Measured Resources at Golouma include stockpiles which total 0.04 Mt at 1.38 g/t Au for 2,000 oz. 9. Measured Resources at Kerekounda include stockpiles which total 0.03 Mt at 3.30 g/t Au for 3,000 oz. 10. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au. 11. The figures above are "Total" Mineral Resources and include Mineral Reserves. 12. Open pit shells were used to constrain open pit resources. 13. Mineral Resources are estimated using a gold price of US$1,450 per ounce. 14. Sum of individual amounts may not equal due to rounding. Refer to Endnote (1) on the second last slide 33

34 Open Pit & Underground Mineral Reserves Summary (1) As At June 30, 2017 Deposits Tonnes (Mt) Proven Probable Proven and Probable Grade (g/t) Au (Moz) Tonnes (Mt) Grade (g/t) Au (Moz) Tonnes (Mt) Masato Niakafiri East Golouma West Sabodala Gora Kerekounda Goumbati West and Kobokoto Maki Medina Niakafiri West Golouma South Grade (g/t) Au (Moz) Subtotal Open Pit Notes for Mineral Reserves Estimates 1. CIM definitions were followed for Mineral Reserves. 2. Mineral Reserve cut-off grades range from 0.38 g/t to 0.57 g/t Au for oxide and 0.44 g/t to 0.63 g/t Au for fresh rock based on a $1,200/oz gold price. 3. Underground Mineral Reserve cut-off grades range from 2.3 g/t to 2.6 g/t Au based on a $1,200/oz gold price. 4. Mineral Reserves account for mining dilution and mining ore loss. 5. Proven Mineral Reserves are based on Measured Mineral Resources only. 6. Probable Mineral Reserves are based on Indicated Mineral Resources only. 7. Sum of individual amounts may not equal due to rounding. 8. The Niakafiri East and West deposits are 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 Open Pit with Stockpiles (OP) Golouma West Kerekounda Golouma West Golouma South Subtotal Underground (UG) TOTAL OPEN PIT & UNDERGROUND Refer to Endnote (1) on the second last slide 34

35 Endnotes 1) Teranga s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017 as per Company disclosure. For more information regarding Teranga Gold s Mineral Reserves and Resources and related notes, please refer to the press release title, Teranga Gold Increases Sabodala's Reserve Base to 2.7 Million Ounces: Adds More Than 400,000 Ounces of Gold and Improves Five-Year Production and Cash Flow Profile dated July 19, 2017 accessible on the Teranga s website at 2) This production target is based on proven and probable reserves only from the Sabodala project as at June 30, 2017 as disclosed on the Company s website at and on SEDAR at The estimated ore reserves underpinning this production target have been prepared by a competent person or persons (see Competent Persons Statements in the Company s Management s Discussion & Analysis for the three and six months ended June 30, 2017 available on the Company s website at 3) 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at 20% of the spot gold price. 4) Total cash costs per ounce, earnings before interest, taxes, depreciation and amortization ( EBITDA ), and average realized gold price are non-ifrs financial measures and do not have standard meanings under IFRS. All-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs) per ounce is a non- IFRS financial measure. The comparable IFRS measure is cost of sales per ounce, which for 2017, is expected in the range of $950 - $1,025 per ounce. Please see the Non- IFRS Performance Measures section in Management s Discussion & Analysis for the three and six months ended June 30, 2017 available on the Company s website at 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