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 ” , “ estimates ” , “ forecasts ” , “ anticipate ” or “ does not anticipate ” , “ believe ” , “ intend ”, “ability to” and similar expressions or statements that certain actions, events or results “ may ” , “ could ” , “ would ” , “ might ” or “ will ” be taken, occur or be achieved, have been used to identify such forward looking information. 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. These assumptions include, among other things, the ability to obtain any requisite Senegalese 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 the Company’s Revised Annual Information Form dated September 1, 2015, and in other company filings with securities and regulatory authorities which are available at www.sedar.com. 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 dated as of the date on the front cover. All references to the Company 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
UPDATED LIFE OF MINE: HIGHLIGHTS Lowering costs Increasing mill throughput Increasing long-term sustainable free cash flow (1) Refer to endnote (1) on slide 37
CONTINUING TO REPLACE PROVEN AND PROBABLE RESERVES Proven and Probable Reserves (2) 2.6M Proven & Probable Reserves (in Moz) (As at December 31, 2015) 30 90 (8) 180 220 310 2.8 2.6 2.6 330 1.7 1.6 350 390 2011 2012 2013 2014 2015 730 13.5-year mine life – replaced proven and probable reserves in 2015 Refer to endnote (2) on slide 37 4
PITS IN CLOSE PROXIMITY TO MILL 5
CAPITAL & OPERATING COST SUMMARIES
UPDATED LIFE OF MINE: ASSUMPTIONS US$1.10 US$1,100 Euro/US$ Gold spot price exchange rate per ounce beyond 2016 - reserves US$50 US$0.15 Per barrel Per kilowatt hour brent crude 7
2014 MINING UNIT COST BRIDGE TO CURRENT COST ENVIRONMENT 2014 Sabodala Mining Cost Bridge to Current 50%-60% of Mining Costs are Euro-based Cost Environment 23% Equipment Employee Costs 3.10 Maintenance & 34% Consumables 2.90 22% $0.07 2.70 $0.44 Mining Cost (US$/t) $2.88 LFO 2.50 44% 2.30 $0.14 2.10 $2.23 1.90 ~30% of Teranga’s 1.70 total mining costs 1.50 Actual 2014 Fuel Levies F/X Change Fuel Price 2014 Mining Unit are fuel related Mining Cost Decrease Cost in Current Cost Environment Benefitting from exempted fuel levies, lower fuel price and favourable foreign exchange rate 8
LIFE OF MINE - MINING UNIT COSTS BY PIT Mining Unit Cost Breakdown Loading Cost 0.21 $/t Units 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Golouma $/t Mined 2.30 2.21 2.49 3.39 2.34 Haul Costs 0.49 $/t Fresh $/t Mined 2.43 2.32 2.49 3.39 2.43 Drill Costs 0.29 $/t Oxide $/t Mined 2.12 2.12 2.08 2.12 Gora $/t Mined 2.26 2.48 3.72 2.36 Blasting Costs 0.30 $/t Fresh $/t Mined 2.41 2.49 3.72 2.46 Support Equipment Cost 0.02 $/t Oxide $/t Mined 1.99 2.30 2.02 Kerekounda $/t Mined 1.90 2.10 2.42 2.09 Ancilliary Cost 0.16 $/t Fresh $/t Mined 2.05 2.19 2.42 2.23 Overhead Cost 0.73 $/t Oxide $/t Mined 1.90 1.95 1.93 Masato $/t Mined 2.36 2.06 2.12 2.11 2.19 2.31 2.37 2.46 2.23 Subtotal 2.20 $/t Fresh $/t Mined 2.36 2.12 2.18 2.15 2.20 2.31 2.37 2.46 2.27 Long Haul Ore Cost 0.05 $/t Oxide $/t Mined 2.25 1.97 1.99 1.98 2.02 2.26 1.98 Total 2.25 $/t Niakafiri $/t Mined 1.94 1.97 2.24 2.05 Fresh $/t Mined 2.19 2.21 2.25 2.24 Oxide $/t Mined 1.93 1.93 2.02 1.93 Item Oxide Fresh Sabodala $/t Mined 2.22 2.40 2.52 2.37 Drill Costs 0.21 $/t 0.31 $/t Fresh $/t Mined 2.25 2.40 2.52 2.38 Blasting Costs 0.26 $/t 0.31 $/t Oxide $/t Mined 2.02 2.02 Maki Medina $/t Mined 2.24 2.24 Fresh $/t Mined 2.63 2.63 Long Haul Ore Unit Cost* Oxide $/t Mined 2.13 2.13 Gora 4.86 $/t Ore Total $/t Mined 2.24 2.27 2.25 2.20 2.29 2.19 2.31 2.17 2.36 2.25 Golouma 1.50 $/t Ore Kerekounda 1.50 $/t Ore Maki Medina 1.50 $/t Ore * Long haul ore costs based on contractor rates (in use at Gora since 2015) Calibrated to actual costs and productivities for life of mine 9
2014 PROCESSING UNIT COST BRIDGE TO CURRENT COST ENVIRONMENT 2014 Sabodala Processing Cost Bridge to 50%-60% of Milling Costs are Euro-based Current Cost Environment 19.00 Employee Costs 40% 17.00 21% $1.47 15.00 $1.54 Fuel Process Cost (US$/t) $17.15 79% 13.00 $3.30 11.00 $0.48 9.00 Mill Optimization Cost Improvements • Graph quantifies only the unit cost savings $10.36 realized by the increased production of fresh ore 7.00 • Additional operational efficiency gains will be quantified once the mill optimization has been 5.00 Actual 2014 Fuel Levies F/X Change Fuel Price Mill 2014 Milling commissioned and is operational Milling Cost Decrease Optimization Unit Cost in Current Cost Environment Benefitting from exempted fuel levies, favourable F/X, lower fuel price and fully commissioned mill optimization 10
PROCESSING UNIT COSTS DRIVEN BY ORE BLEND LOM Processing Costs and Tonnages 12.00 5.00 11.50 4.50 11.00 4.00 10.50 3.50 Processing Cost (US$/t) Milled Material (Mt) 10.00 3.00 9.50 2.50 9.00 2.00 8.50 1.50 8.00 1.00 7.50 0.50 7.00 0.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Fresh Material & Stockpile Oxide Material Annual Average Costs LOM Average Costs The main variations in processing costs by year are driven primarily by the material throughput blend 11
SITE G&A COSTS WILL DROP SIGNIFICANTLY AS MINING WINDS DOWN 2016-2020 Activity Unit LOM 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 AVG Mining Mt mined 314 39.3 38.3 40.1 39.6 39.8 38.9 30.2 26.8 32.9 26.5 0.1 0.2 0.4 0.4 0.2 Milling Mt milled 59 4.3 3.9 4.2 4.5 4.5 4.5 4.5 4.4 4.5 4.4 4.4 4.4 4.4 4.5 2.3 Site G&A USD/t milled 2.56 3.39 3.81 3.47 3.29 3.28 3.15 3.12 3.06 3.08 2.01 1.88 1.43 1.23 1.00 1.81 Site G&A USDM 144 14 14 14 14 14 14 14 13 13 8 8 6 5 4 4 Currently ~75% of site G&A relates to mining support 12
LIFE OF MINE CAPITAL COSTS TOTALING US $211M Breakdown of Annual Capital Costs $45M Other Projects & Development* $41.1M Underground Mine $40M Pit Development Open Pit Mining $35M $29.9M Process Plant Community Relations $31.6M $18.9M $29.4M Admin & Other $30M Admin & Other $25.7M Process Plant $8.8M Other Projects & $25M Open Pit Mining Development* $18.9M $21.8M Community $20M Relations $25.0M $15M $12.2M $11.1M $9.8M Sustaining Costs Pit Development $9.2M $8.7M $10M $56.0M $4.3M $4.9M Equipment & $4.5M $5M Development Costs $2.9M $46.0M $0.9M $0M Underground 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Mine $102.1M *Includes: Tailings Storage Facility #1 Raise, Tailings Storage Facility #2, and Mill Optimization Project ~ 50% capex attributed to underground mine development, which is scheduled to start in 2020 13
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