Building a 121 New York Multi-Asset Mid-Tier June 5-6, 2018 TSX:TGZ / OTCQX:TGCDF West African Gold Producer
Navin Dyal Chief Financial Officer 2
Forward-Looking Statements All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, 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. For a more comprehensive discussion of the risks faced by Teranga, and which may cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and on Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein 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 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. 3
Deep Value and Growth with Assets in Production, Development and Exploration Deep Value US$5.79 Excludes potential value from: NPV* • Wahgnion infill drill program Per Share • Golden Hill based on cash & • Afema and Côte d’Ivoire assets 2P reserves (1)(2) US$0.56 US$1.13 Cash balance as at March 31, 2018 US$4.23 US$4.10 TGZ Current Wahgnion Project NPV 5% based on 2P (1) Share Price Sabodala NPV 5% based on 2P (2) (closing price June 1, 2018) $1,300 Gold Price per Ounce Assumption *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (1) and (2) 4 USD/CAD FX rate 0.77
Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa Senegal Sabodala Gold Mine Mali • Long-life mine • More than 1.4Moz production Niger Burkina Faso since late 2010 The Gambia Guinea- Wahgnion Development Project Bisseau • Secured financing and commenced construction in Q2 2018 • Reserve update expected by mid-year Guinea Gourma Exploration Golden Hill Exploration JV JV • Initial resource expected in 2018 Dianra • Fully funded to feasibility Teranga has nearly Sierra Benin 4.0 million ounces of Leone Ghana gold reserves from Côte d’Ivoire Togo Mahepleu its Sabodala Gold Mine and its Wahgnion Tiassale Liberia Development Project (1)(2) Afema Guitry Sangaredougou 5 Refer to Appendix – Endnotes (1) and (2)
FY2017 Highlights Achieved record Announced positive Positive drill results Entered into joint production of feasibility for from Golden Hill venture on Afema 233,267 oz Wahgnion Project land package in of gold including reserves Côte d’lvoire of 1.2Moz (1) Refer to Appendix – Endnote (1) 6
Leading With Our Strong Social License Shareholder Risk Improve Local Value Management Livelihoods • Avoid community unrest • Deliver projects on time • Local recruitment & conflict and on budget • Local progression • Avoid work stoppages • Trust-based relationship & promotion with all stakeholders • Avoid legal action • Local procurement & • Safeguard reputation other capacity building • Avoid withdrawal of operating licenses • Ability to grow footprint in West Africa 7
Sabodala Senegal, West Africa 8
Largest Gold Producer in Senegal: Continuing to Replace Reserves, Strong 5-Year Profile Mali 2.7Moz 4.4Moz 13-Year 2P Reserves (2) M&I Resources (9) Mine Life (3) Life of Mine 5 years 13 years Summary (2)(3)(5)(6) (2018-2022) (2018-2030) Sabodala Mine License & Annual production 213koz 176koz Regional Land Package Sabodala All-in sustaining costs* $885/oz $893/oz Mill Exploration Prospects Total free cash flow* $230M $556M Mineral Resources Niakafiri Masato Style Bulk Tonnage Gold Trend Golouma Style High- Grade Gold Trend Goumbati West Mining Concession Exploration Permits Previous Mine License *Refer to Appendix – Non-IFRS Performance Measures 9 Refer to Appendix – Endnotes (2),(3),(5),(6) and (9)
Wahgnion Project Burkina Faso, West Africa 10
Solid Start to Teranga’s Second Mine – Wahgnion Wahgnion Development Project Permitted mining license: 89 km 2 Exploration licenses:+1,000 km 2 1.2Moz 1.8Moz 0.7Moz Samavogo 25km from plant 2P M&I Inferred Reserves (1) Resources (10) Resources (10) Nogbele Initial LOM Fourkoura 6km from plant Life of Mine Summary 5.5 years (9 years) Annual production (4)(5)(7) 131koz 119koz Stinger 15km from plant All-in sustaining costs* $807/oz $843/oz Total free cash flow* $302M $409M Pre-production capital** ($232M) Proposed Net cash flow $176M Processing Plant Four initial deposits at Wahgnion (Nogbele, Samavogo, Fourkoura *Refer to Appendix – Non-IFRS Performance Measures & Stinger) located in close proximity **Pre-production capital costs of $232 million excludes $12 million in construction readiness activities to proposed plant site spent prior to major construction 11 Refer to Appendix – Endnotes (1), (4), (5), (7) and (10)
Near-Term Upside Potential at Wahgnion: Reserve Update Expected by Mid-Year $1,200 Target Area Along Strike Completed 73,000-Metre Targeted Infill Drill Program Reserves Pit Limit • Infill drill program is targeting inferred resources $1,450 Resource Pit Limit located near to the current reserve pits Target Area at Depth • Objective is to increase drill hole density within the existing inferred resources Aiming for a Conversion Rate of 25%-50% of Inferred • Given demonstrated continuity of mineralization of the inferred resources, 25%-50% of inferred resources is targeted to be converted to indicated 12
Significant Mid to Long-Term Upside Potential Kondandougoug Regional Exploration Includes ~12 Drill-Ready Targets • Targets have potential to become resources and are Bagu Sud Samavogo North within trucking distance of proposed plant site Korindougou • Konatvogo: 2,000-metre NW-trending anomaly Samavogo between 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 Kafina West Bazogo auger anomaly (up to 15g/t Au). Intersection of Ouahiri regional Nianka and Fourkoura structures undrilled Bassongoro Nogbele Raul Raul Hillside Konatvogo Stinger Fourkoura Muddhi Petit Colline Sud Proposed Plant Site Reserve Deposits 13 Exploration Targets
Golden Hill Burkina Faso 14
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