INVESTOR PRESENTATION MARCH 2014 1 FORWARD LOOKING STATEMENTS This - PowerPoint PPT Presentation

INVESTOR PRESENTATION MARCH 2014 1

FORWARD LOOKING STATEMENTS This presentation contains certain statements that constitute forward- looking information within the meaning of applicable securities laws (“forward -looking statements”). Such forward -looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga’s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan and consolidation of the Sabodala Gold Project and OJVG Golouma Gold Project, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, targeted date for a NI 43-101 compliant technical report, amendment to the OJVG mining license, the approval of the Gora ESIA and permitting and the completion of construction related thereto. Such 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 and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. 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 Annual Information Form dated March 27, 2013, a nd 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 March 25, 2014. 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 US dollars unless specified otherwise 2

TERANGA GOLD CAPITALIZATION SUMMARY OPERATIONS • Ticker symbols/share price: TSX:TGZ / C$0.94 2 ASX : TGZ / A$0.90 2 • Domicile: Canada • Basic shares outstanding: 317M • Options outstanding: 24M 1 • Market capitalization: $267M 2 • Cash & equivalents: $42M 4 • Project finance outstanding: $30M 3 • Mining fleet loan facility: $17M 4 Note: *all amounts in US$ unless specified otherwise, ¹average strike of C$2.58, including 15.8M at C$3; ²at 3/25/14; ³at 1/28/14 as per ASX report, reduced from $60M, 4 at 12/31/13 3

INVESTMENT SUMMARY • Excellent performance in 2013 - Mill expansion, elimination of out-of-the-money hedges, agreement with Senegalese Government - Transformative acquisition of OJVG now complete, more than doubling reserves and resources • New mine plan forecasts average production of about 250koz per year in lowest (best) quartile of all-in sustaining costs (AISC) • Corporate strategy focused on maximizing free cash flow - Operations expected to generate significant free cash flow - Disciplined capital allocation strategy • Potential to add profitable ounces to production profile - Heap-leaching of lower grade oxide ore - Near-plant exploration - Highly prospective regional exploration program on 70km gold belt • Consistently meeting operational targets • Senegal is a politically stable jurisdiction with a competitive mining fiscal regime 4

2013: A YEAR OF ACHIEVEMENTS CORPORATE OPERATING & FINANCIAL • • Eliminated our inherited out-of-the-money Optimized mill to design capacity hedge contracts • More material moved and processed at lower • Established a long-term fiscal and unit costs investment agreement with the Senegalese • Achieved production and cost guidance for government the year • Acquisition of Oromin Joint Venture Group - Produced 207,204 oz (OJVG) - vs guidance of 190,000-210,000 oz - Cash costs of $641/oz • Raised $135M from sale of royalty stream - vs guidance of $650-700/oz to Franco-Nevada to acquire part of the - All-in sustaining costs (AISC) of $1,033/oz OJVG (Bendon) and repay half of loan - vs guidance of $1,000-1,100/oz facility • High conversion of EBITDA to free cash flow • Year end cash balance: $42.3M 5

TRANSFORMATIVE ACQUISITION OF OJVG NOW COMPLETE • Acquired Oromin Joint Venture Group (OJVG) in series of transactions in Q3, Q4 2013 - Acquired Oromin (owner of 43.5% of OJVG) for 71M shares Before After OJVG (22% of current shares outstanding) OJVG Change acquisition - Acquired Bendon (43.5%) via sale of gold stream to Franco- acquisition Nevada 1 for 6% gross stream (equivalent to 4.8% NSR royalty) 1.27 2.81 120% Reserves (Moz) Reserve - Acquired Badr (13% carried) for $7.5M funded from treasury 2 1.45 1.47 1% (g/t) Grade • Increased open pit reserves by 120% to 2.8 Moz of gold M&I 2.77 6.19 123% (Moz) Resources • Extends mine life Mine license 33 246 645% (km 2 ) - More than doubles reserves and resources size - Increases production life from 8 to 16 years 246 317 22% Share count (M) 0.011 0.020 73% • Enables production to grow to ~250koz from ~200koz Resources (oz/share) - No significant incremental capex - Lower unit cash costs - Greater cash flow generation • Allows for optimal sequencing of deposits based on grade, ore hardness, distance to mill and capital requirements - Minimize waste stripping at Sabodala, increasing 2014 cash flow • Consolidates the region and increases growth potential from enlarged acreage position - Mine license increases from 33km 2 to 246km 2 Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices 6 Source: Sabodala Standalone Mine Plan, Oct. 2013, Base Case Sabodala Combined Life of Mine Plan (NI 43-101 Technical Report, March 13, 2014)

ACQUISITION LEADS TO IMMEDIATE IMPROVEMENT IN CASH FLOW GENERATION Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices 7 Source: Base Case Sabodala Combined Life of Mine Plan (NI 43-101 Technical Report, March 13, 2014)

TERANGA IS IN THE FIRST QUARTILE OF 2014 COST CURVE Notes: includes companies with total 2014 production of c.50Moz (64% of total global mine production); bar heights of highest cost producers truncated to fit on graph 8 Source: BMO, 13/1/14

CORPORATE STRATEGY VALUE CREATION DISCIPLINED ALLOCATION OF CAPITAL • Maximize free cash flow generation • Only Senegal - Produce ~250koz/year • Only gold - Lowest (best) quartile AISC costs • Only commit capital to projects which - High conversion of EBITDA into cash have flow (low sustaining capex) - IRR > hurdle rate • Leverage existing processing - Quick payback infrastructure - Only gold production facility in Senegal RETURN OF CAPITAL - Aim to grow reserves at low cost and without shareholder dilution • Priority is to strengthen balance sheet - Potential for future expansion of process - Extinguish debt facility capacity - Build up sufficient cash to execute on  Optimize mill business plan  Heap leach potential • Once balance sheet is strengthened,  Mill expansion (if merited) Board will consider how to return excess cash flows to shareholders via dividends, special dividends or share buybacks (depending on share price) 9

POTENTIAL TO ADD PROFITABLE OUNCES SHORT AND MEDIUM TERM (2014-16) LONG TERM (2015-) • Integrate OJVG and Sabodala operations • Systematic identification and evaluation of targets on - Expanded Sabodala mine license (246km 2 ) • Increase free cash flow through higher production and lower material movement - Regional land package (1,055km 2 ) • Increase reserves through conversion of M&I and • Objective Inferred 1. Millable reserve growth • Evaluate heap leach processing option (permit and 2. Heap leach reserve growth build if economics exceed hurdle rate) 3. Satellite deposit discovery • Optimize mill throughput 4. Standalone deposit discovery • Optimize mine planning and grade Maximize free-cash flow 10