Denver Gold Forum Building a Multi-Asset Mid-Tier Colorado - - PowerPoint PPT Presentation

TSX:TGZ / OTCQX:TGCDF

Denver Gold Forum

Colorado Springs, Colorado September 23-26, 2018

Building a Multi-Asset Mid-Tier West African Gold Producer

Forward-Looking Statements

2

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

• f 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
• btain 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

• r 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.

Senegal Côte d’Ivoire Burkina Faso

Mali Guinea

Guinea- Bisseau The Gambia

Ghana Benin Niger Sierra Leone Liberia Togo

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Gourma Exploration JV Guitry Dianra Mahepleu Tiassale Sangaredougou

Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa

Afema JV

Golden Hill Advanced Exploration JV Wahgnion Gold Development

2P Reserves: 1.6Moz(1)

Sabodala Gold Operation

2P Reserves: 2.7Moz(2)

Miminvest & Afema Exploration JVs

Refer to Appendix – Endnotes (1) and (2)

4

Sabodala Gold Mine

(Senegal)

Wahgnion Gold Project

(Burkina Faso)

Golden Hill

(Burkina Faso)

Miminvest & Afema JVs

(Côte d’Ivoire)

Exploration & Resource Conversion

Mid-Tier Producer with Scale and Diversification

Strong Organic Growth Pipeline

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• Deliver projects on time

and on budget

• Strategic relationships

with all stakeholders

• Safeguard reputation

Delivering on Our Organic Growth

West African Experience Risk Management Improve Local Livelihoods

• Transparency
• Fair share fiscal framework
• Proactive community

development and dialogue

• Local recruitment
• Local progression

and promotion

• Local procurement and
• ther capacity building

Sabodala

Senegal, West Africa

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Sabodala: Largest Gold Producer in Senegal

Life of Mine Summary(2)(3)(5)(6) 5 years (2018-2022) 13 years (2018-2030) Annual production 213koz 176koz All-in sustaining costs* $885/oz $893/oz Total free cash flow* $230M $556M Strong 5-Year Profile with Potential to Increase Mine Life

Sekoto Masato Mamasato Kouroundi Kerekounda Kourouloulou Golouma South Koulouqwinde Koutoniokollo Kinemba East Kobokoto Goumbati West Maki Medina Golouma West Golouma North Soukhoto Niakafiri East Niakafiri West Sabodala Lot A Bransan Lot B Bransan Lot A Diadiako Sabodala Lot B Gora Sounkounko u Bransan Lot A

Sabodala Gold Mine Senegal, West Africa

Permitted mining license: 291 km2 *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (2),(3),(5),(6) and (7)

2.7Moz

2P Reserves (2)

4.4Moz

M&I Resources (7)

13-Year

Mine Life(3)

Strong Track Record of Replacing Reserves at Sabodala

Sabodala Proven and Probable Reserves(7) (Moz)

8

Significant Opportunity for Growth at Sabodala

• Sabodala village relocation provides
• pportunity to drill out Niakafiri, the

largest deposit on the mine license, and to increase remaining mine life

• Village relocation expected to be

completed in 2019

1.4 1.7 1.6 2.8 2.6 2.6 2.7 2010 2011 2012 2013 2014 2015 2017

1.5Moz of Gold Production at Sabodala Since 2010

Graph includes years for which there was a reserve update Refer to Appendix – Endnote (7)

57,557 65,381 Q2 2017 Q2 2018

Production

(oz Au)

Increased FY2018 Production Guidance to at Least 230,000 Ounces

9

233,267 At least 230,000(3) FY2017 2018 Outlook 114,460 129,412 H1 2017 H1 2018

14% Increase 13% Increase Increased FY 2018 Production Guidance to at Least 230koz(3)

Refer to Appendix – Endnote (3)

Wahgnion Project

Burkina Faso, West Africa

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Wahgnion: The Next Large Long-Life Commercial Gold Mine in Burkina Faso

11

Nogbele Stinger

15km from plant

Samavogo

25km from plant

Fourkoura

6km from plant

Wahgnion Development Project Burkina Faso, West Africa

Permitted mining license: 89 km2

Four initial deposits at Wahgnion (Nogbele, Samavogo, Fourkoura & Stinger) located in close proximity to proposed plant site

Proposed Processing Plant

*Refer to Appendix – Non-IFRS Performance Measures **Pre-production capital costs of $240 million excludes $16 million in construction readiness activities spent prior to major construction Refer to Appendix – Endnotes (1), (4), (5), (8) and (9)

Life of Mine Summary Initial 5 years LOM (13 years) Annual production(4)(5)(9) 132koz 114koz All-in sustaining costs* $761/oz $904/oz Total free cash flow* $311M $479M Pre-production capital** ($240M) Pre-production operating costs ($28M) Net cash flow $211M

1.6Moz

2P Reserves(1)

2.4Moz

M&I Resources(8)

0.2Moz

Inferred Resources(8)

Kafina West

Raul

Hillside 12

Significant Mid to Long-Term Upside Potential

Samavogo Nogbele Fourkoura Stinger

Bagu Sud Korindougou Ouahiri

Sud

Regional Exploration Includes ~12 Drill-Ready Targets

• Targets have potential to become resources and are

within trucking distance of proposed plant site

• Konatvogo: 2,000-metre NW-trending anomaly

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

auger anomaly (up to 15g/t Au). Intersection of regional Nianka and Fourkoura structures undrilled

Raul

Proposed Plant Site

Kondandougoug Konatvogo Bazogo Bassongoro Samavogo North

Muddhi Petit Colline

Reserve Deposits Exploration Targets

Wahgnion (Burkina Faso)

Exploration licenses:+1,000 km2

Golden Hill

Burkina Faso, West Africa

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14

Sources ¹ Semafo Corporate Presentation (Mar 2017) ² Roxgold Corporate Presentation (Feb 2017) ³ Endeavour Corporate Presentation (Feb 2017) ⁴ Acacia Preliminary Results (Feb 2017) ⁵ Savary Corporate Presentation (Mar 2017)

M&I Resources are inclusive of P&P Reserves

Advancing to Initial Resource in January 2019

Siou Pit M&I: 0.89 Moz ¹ Mana M&I: 3.63 Moz ¹ Houndé M&I: 2.55 Moz ³ Yaramoko M&I: 0.81 Moz ² Acacia JVs ⁴ Karankasso JV Inf: 0.67 Moz ⁵ South Houndé JV Inf: 2.10 Moz ⁴ Sarama Permits

Teranga’s Golden Hill JV

Situated in the Heart of the Houndé Belt (Burkina Faso)

• 468 km2 situated ~250 km NE of Wahgnion
• One of the most prospective gold belts in the world
• In close proximity and along strike to other deposits

One of West Africa’s Most Exciting Exploration Projects

• Plan to release an initial resource estimate in January

2019 based on available drilling results at Golden Hill’s most advanced prospects

• $25 million financing secured for the future advancement
• f Golden Hill through to feasibility study

Joint Venture with Boss Resources (51%, earning 80%)

• 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

• Boss Resources is an Australian-listed (ASX: BOE)

uranium company

Interpreted Geology

Andesite Basalt Basin Batholith Chert Granitoid Tarkwaian

Houndé Belt

Burkina Faso, West Africa

15 For full details on Golden Hill, please visit www.terangagold.com

Active and Aggressive Exploration Program

GEOLOGY

Tarkwaian Type Sediments Volcano Sediments Mixed Volcano Sediments & Volcanics Basalt Grantoid Batholith

Ma North Ma Main Ma East Jackhammer Hill Peksou C-Zone B-Zone A-Zone Nahiri

Q2 2018 Drilling Activity

Peksou North Nahiri Plateau

Peksou 17 holes 2,156 metres Jackhammer Hill 8 holes 1,318 metres C-Zone 10 holes 1,086 metres Ma North 8 holes 947 metres Peksou North 4 holes 675 metres Nahiri 4 holes 485 metres Peksou Basin 3 holes 420 metres B-Zone 3 holes 397 metres A-Zone 1 hole 101 metres TOTAL 58 holes 7,581 metres Golden Hill (Burkina Faso, West Africa)

Exploration licenses:468 km2

Jackhammer Hill Peksou C-Zone Peksou North Peksou Basin Similar to Structural Inter-Relationships Observed at Ma Complex

• The Peksou intrusive complex displays lithologic

and structural commonality as well in a number

• f our advanced prospects: Jackhammer Hill,

Peksou and C-Zone

• Two new drill discoveries at Peksou North and

Peksou Basin demonstrate that new exploration

• pportunities within and adjacent to the Peksou

intrusive complex still exist and further evaluation will be prioritized here

Peksou Intrusive Complex: Discovery Opportunity

Jackhammer Hill Diorite Peksou Granodiorite Basalt In-situ RAB, auger

• r trench anomaly

Drill Hole

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Golden Hill: Peksou Intrusive Complex

Burkina Faso, West Africa

17 17

Ma – Representative Drill Section

Excellent Grades Near Surface and to Depth at Ma Structural Complex

• Extensive structural complex consisting of numerous

mineralized structures in close proximity

• Mineralization remains open for all components of

Ma in all directions, including down-plunge of better grade and width components:

–

GHDD-047: 8 m @ 2.00 g/t gold, including 3 m @ 4.23 g/t gold from 45 m downhole depth (DHD)

–

GHDD-080: 6 m @ 5.79 g/t gold from 87 m DHD and 17 m @ 3.45 g/t gold, including 6 m @ 6.32 g/t gold from 122 m DHD

• Newest addition to the Ma area is Ma North,

with latest results confirming the presence of a third mineralized breccia zone at the Ma Complex Ma Structural Complex – Highlights

18 18

Jackhammer Hill – Highlights

High-Grade Central Core Area at Jackhammer Hill Prospect

Jackhammer Hill – Representative Drill Section

• Three phases of early-stage drilling have been

completed in multiple altered shear zones demonstrating continuity and depth extent:

–

GHDD-319: 11 m @ 1.89 g/t gold, including 2 m @ 6.83 g/t gold from 41 m DHD

–

GHDD-320: 8 m @ 22.1 g/t gold, including 1 m @ 125.6 g/t gold uncut grade from 115 m DHD

–

GHDD-334: 3 m @ 29.5 g/t gold, including 1 m @ 84.7 g/t gold from 138 m DHD

19 19

C-Zone – Highlights

Strong Gold Mineralization in Correlated Zones at C-Zone Prospect

C-Zone – Representative Drill Section

• Gold mineralization is localized in a discrete, mafic

volcanic hosted shear zone system displaying alteration, veining and brecciation characteristics similar to those observed at Ma prospect

• Three phases of drilling completed, with recent results

confirming the C-zone remains open to depth and intersects with the southeastern portion of the Peksou prospect:

–

GHDD-308: 10 m @ 4.22 g/t gold, including 1 m @ 10.27 g/t gold from 120 m DHD

–

GHDD-312: 10 m @ 2.58 g/t gold, including 2 m @ 7.41 g/t gold from 21 m DHD, and 6 m @ 3.36 g/t gold, including 2 m @ 6.60 g/t gold from 89 m DHD

20 20

Peksou North / Basin – Highlights

New Near-Surface Discoveries: Peksou North and Peksou Basin

Peksou North – Representative Drill Section

• Favourable early-stage near-surface results from the

first few holes from a series of scout holes at two separate locations:

–

Peksou Basin (GHDD-349): 3 m @ 14.36 g/t gold, including 1 m @ 32.2 g/t gold uncut grade from 27 m DHD

–

Peksou North (GHDD-346): 40 m @ 1.11 g/t gold from 24 m DHD

• Further drilling is planned to follow-up on these initial

positive results

Miminvest & Afema Joint Ventures

Côte d’Ivoire, West Africa

21

Côte d'Ivoire 35% Burkina Faso 21% Ghana 19% Guinea 11% Mali 10% Other 4%

Côte d’Ivoire: Regarded by Many as Most Prospective Country for Gold in Africa

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Mimran Exploration Joint Venture

• Joint venture partner is Teranga’s

cornerstone shareholder and largest private employer in Côte d’Ivoire

• 5 exploration tenements, covering areas

totaling +1,800 km2 Sodim Exploration Joint Venture

• 1,400 km2 land package includes mining

license and three exploration permits

• Situated within the southern extension of

the Sefwi-Bibiana greenstone belt (hosts +35Moz gold resources in Ghana)

• Five shear structures (with combined

strike length of 144 km)

Endeavour Endeavour Perseus Randgold

Côte d’Ivoire

Guitry Tiassale Mahepleu Sangaredougou

Newcrest

Dianra Afema

Côte d’Ivoire represents significant portion of the West African Birimian Greenstone Belt Operating Gold Mine/ Development Project

Five Exploration Properties; Guitry is Most Advanced

• First-ever drilling program at Guitry consisted of a 68-hole,

3,320 metre air-core drilling program

• This program included a series of shallow, widely spaced,

multi-hole drill profiles designed to evaluate the central 1,000- metre strike extent within an extensive gold-in-soil geochemical anomaly covering approximately a 3 x 7 km area

• A number of holes provided intersections with highly

anomalous gold intersections warranting follow-up

• The most favourable results were:

–

24 metres grading 2.02 g/t Au (GUAC008)

–

4 metres grading 5.80 g/t Au (GUAC015)

–

20 metres grading 6.37 g/t Au (GUAC018)

• Results are currently being compiled and assessed towards

designing a follow-up exploration program consisting of ground geophysics, mechanical trenching and further drilling

Endeavour Endeavour Perseus Randgold

Côte d’Ivoire

Tiassale Mahepleu Sangaredougou

Operating Gold Mine/ Development Project Newcrest

Dianra

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Exciting Miminvest JV in Côte d’Ivoire

Guitry

Afema: Situated on Prolific Gold Belts Trending from Ghana

Ahafo 17 Moz Newmont

3 Afema Exploration Permits Afema Mining Permit

Bibiani 7 Moz Resolute Chirano 5 Moz Kinross Edikan 6.6 Moz Perseus Bogoso/Prestea 18 Moz Gold Star Konogo 1.4 Moz Signature Metals Akyem Newmont Essase 5.19 Moz Obotan 5.5 Moz Asanko Obuasi 41 Moz Anglo Gold Ashanti Kubi 0.9 Moz Asaute Gold Corporation Damang 7.1 Moz Goldfields Tarkwa 24 Moz Iduapriem 8.2 Moz AngloGold Ashanti Kumasi Cape Coast

Sefwi-Bibiani Gold Belt Asankrangwa Gold Belt Ashanti Gold Belt Winneba-Kibi Gold Belt

24

JV With Privately-Owned Sodim Limited (51%, earning 70%)

• Teranga can earn a 70% interest in the Afema

mining license and exploration permits through: – completion of a 3-year $11M exploration and community relations work program – delivery of an updated technical study

• Teranga will fund and manage

Ghana Côte d’Ivoire

H2 2018 Planned Exploration

• Drilling at the Afema mine license
• Property-wide airborne geophysics and stream

sediment (BLEG) programs

Wrap-Up

25

26

Sabodala Gold Mine

(Senegal)

Wahgnion Gold Mine

(Burkina Faso)

Golden Hill

(Burkina Faso)

Miminvest & Afema JVs

(Côte d’Ivoire)

Exploration & Resource Conversion

Mid-Tier Producer with Scale and Diversification

Strong Organic Growth Pipeline

Unique Cornerstone Shareholder – Tablo Corporation – Currently Owns ~22% of Teranga

27

Initial private placement 34% Gryphon acquisition 8% Secondary public

• ffering

25% On market purchases 33%

Tablo Corporation Owns 23.5 Million Shares of Teranga at an Average Price of C$3.94 David Mimran, Director of Teranga, Controls Tablo Corporation

• Mr. Mimran is CEO of Grands Moulins d’Abidjan and Grands

Moulins de Dakar, one of the largest producers of flour and agri- food in West Africa

• He is Special Advisor to the government of the Republic of Cote

d'Ivoire where he has led negotiations with the International Monetary Fund, the World Bank, the European Union, and the Government of the Republic of France Strong Cornerstone Investor with In-Depth Local Knowledge

• Long history of operating responsibly in Africa
• Mimran Group is the largest private sector employer in both

Senegal and Côte d’Ivoire Committed to Teranga’s Long-Term Growth

• Last November, Tablo announced its intention to add to its

holdings by acquiring up to 5% of Teranga’s issued and

• utstanding common shares in the open market

1/3 of Tablo’s shares were purchased through exercise of anti-dilution right relating to acquisition of Gryphon Minerals in October 2016 and November 2016 secondary offering

Upcoming News Flow and Milestones

28

Golden Hill

• Regular exploration updates
• Initial resource estimation January 2019

Côte d’Ivoire

• Project updates for Guitry and Afema

Wahgnion

• Updated NI 43-101 technical report
• Regular construction updates

Sabodala

• FY 2018 gold production of at least 230koz
• Continue to advance Niakafiri resettlement

Standout Investment Opportunity as Teranga Remains Undervalued Relative to Peers

EV/2P Reserves ($/oz) EV/2018E EBITDA

33% (12%) (14%) (25%) (23%) (36%)

Teranga Perseus Semafo B2Gold Endeavour Roxgold

2018 Year to Date Share Price Performance

(as of September 18, 2018) 380 356 267 230 73 53

B2Gold Roxgold Endeavour Semafo Teranga Perseus

6.0 5.4 4.8 4.0 2.5 2.5

Endeavour Semafo Perseus B2Gold Teranga Roxgold

29 Source: BMO GoldPages – September 10, 2018

Appendix

2018 Outlook: Increased Production

31

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 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 resettlement costs for the Sabodala village. F. Excludes capitalized deferred stripping costs, included in mine production costs. G. Early works expenditures for 2018 includes anticipated expenditures for the construction of Wahgnion prior to initial drawdown under the Taurus Facility which was executed in May 2018. H. Wahgnion construction expenditures for 2018 include anticipated expenditures for Wahgnion post completion of the Taurus Facility. Other This forecast financial information is based on the following material assumptions for the remainder of 2018: gold price: $1,250 per ounce; light fuel oil price $0.87/L; heavy fuel

• il price $0.60/L; Euro:USD exchange rate of 1:1.17

Other important assumptions: any political events are not expected to impact

• perations, 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.

2018 Guidance

Operating Results Ore mined (‘000t) 2,000 – 2,500 Waste mined (‘000t) 35,000 – 37,000 Total mined (‘000t) 37,000 – 39,500 Grade mined (g/t) 2.50 – 3.00 Strip ratio waste/ore 16.5 – 18.5 Ore milled (‘000t) 4,200 – 4,400 Head grade (g/t) 1.70 – 1.90 Recovery rate % 90.0 – 91.5 Gold produced A (oz) ~230,000 Cost of sales per ounce sold $/oz sold 950 – 1,025 Total cash cost per ounce sold B $/oz sold 700 – 750 All-in sustaining costs C $/oz sold 1,000 – 1,075 Non-cash inventory movements and amortized advanced royalty costs C $/oz sold (50) All-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs) C $/oz sold 950 – 1,025 Mining ($/t mined) 2.25 – 2.50 Mining long haul ($/t hauled) 2.50 – 3.50 Milling ($/t milled) 11.00 – 12.50 General and Administration ($/t milled) 4.25 – 4.50 Mine Production Costs $ millions 162.0 – 172.0 Corporate Administration Expense $ millions 11.0 – 13.0 Regional Administration Costs $ millions ~2.0 Community Social Responsibility Expense $ millions 4.0 – 5.0 Exploration and Evaluation D $ millions ~15.0 Sabodala Capital Expenditures Mine site sustaining $ millions 10.0 – 15.0 Site development costs E $ millions 10.0 – 15.0 Total Sabodala Capital Expenditures F $ millions 20.0 – 30.0 Growth Capital Expenditures Wahgnion early works G $ millions ~30.0 Wahgnion construction H $ millions 140.0 – 160.0 Total Growth Capital Expenditures $ millions 170.0 – 190.0

8.4% 4.8%

Implied Net Smelter Royalty

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
• unce 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)

$100 $58

2016E Post 2019

Effective Cost

32

Executive Team

33 Richard Young, 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

• f Gabriel Resources

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 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. 2012 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

Alan Hill, M.Eng Chairman 35+ years experience in mining including 20 years at Barrick Gold in project evaluation and development 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 Richard Young, CPA President & CEO 25+ years experience in gold mining including 13 years at Barrick Gold in finance and corporate development 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 William Biggar, MA, CPA Director 25+ years experience in senior executive positions in investment, mining and real estate including Barrick Gold and Merrill Lynch 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 2003. Honourary Doctorate of Laws from McGill University 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
• f 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 large- scale mining projects and strategic M&A

Board of Directors

34

Qualified Persons Statement

35

The technical information contained in this document relating to the Sabodala and Wahgnion 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 43-101. 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 43-101 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. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. 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 43-101 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 43-101. 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 43-101 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. Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee of Teranga during the period of this resource update and is not "independent" within the meaning of NI 43-101. 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 43-101 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 43-101 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 43-101 - Standards of Disclosure for Mineral Projects (the “Technical Reports”), or year end 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

Non-IFRS Performance Measures

The Company has included non-IFRS measures in this document, including “total cash costs”, “total cash costs per ounce sold”, “all-in sustaining costs” (“AISC”), “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs)”, “AISC per ounce”, “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce”, “average realized gold price”, “earnings before interest, taxes, depreciation and amortization” (“EBITDA”), “free cash flow”, “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share”. These measures are intended to provide additional information only 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. The measures are not necessarily indicative of

• perating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

“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. “Total cash costs per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports total cash costs on a sales basis. The World Gold Council (“WGC”) definition of AISC 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. AISC 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

• f the Company’s cash expenditures. In addition, the calculation of AISC 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. The Company also expands upon the WGC definition of AISC by presenting an additional measure of “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period. For Sabodala and Wahgnion, life of mine total cash costs and AISC figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Consolidated total cash costs and all-in sustaining cost figures add corporate overhead costs. “Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and 80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently. “EBITDA” excludes income tax, finance costs (before accretion expense), interest income, depreciation and amortization, and non-cash impairment charges from net profits. 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. “Free cash flow” is calculated as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives. Starting in 2018, the Company adopted “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share” as new non-IFRS financial measures. These non-IFRS financial measures are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more readily in comparison with results from prior periods. The Company calculates “adjusted net profit attributable to shareholders” as net profit attributable to shareholders adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term obligations, impairment provisions and reversals thereof, and other unusual or non-recurring items. During the second quarter of 2018, the Company also excluded the impact of foreign exchange movements on deferred taxes and other non-cash fair value changes from adjusted net profit attributable to shareholders as management does not believe these factors to be reflective of the underlying performance of the Company. For more information regarding these measures, please refer to the Company’s management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.

Endnotes

37

1. Refers to proven and probable reserves of 1.6Moz for the Wahgnion project as per reserve estimate as at May 31, 2018. For more information regarding Wahgnion’s Mineral Reserves and related notes, please refer to the press dated September 24, 2018 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Teranga expects to release an updated NI 43-101 technical report for Wahgnion in the fourth quarter of 2018. 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 43-101 technical report dated August 30, 2017 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. 3. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as of June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 available on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 4. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at May 31, 2018. For more information regarding the Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the press release dated September 24, 2018 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. Teranga expects to release an updated NI 43-101 Technical Report for Wahgnion in the fourth quarter of 2018. 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: $1.10 6. 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. Teranga’s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 8. Teranga’s Wahgnion Mineral Resources estimates as at May 31, 2018. For more information regarding Wahgnion’s Mineral Resources and related notes, please refer to the press release dated June 7, 2018 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 9. Net cash flow excludes Wahgnion financing, resource development and exploration expenditures.

Trish Moran Head of Investor Relations 77 King Street West, Suite 2110 Toronto, ON M5K 2A1 T: +1.416.607.4507 E: investor@terangagold.com W: terangagold.com

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