Investor Presentation Building a Multi-Asset Mid-Tier August 2018 - - PowerPoint PPT Presentation

TSX:TGZ / OTCQX:TGCDF

Investor Presentation

August 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

Sabodala Gold Mine

• Long life mine
• More than 1.5Moz production

since late 2010 3

Wahgnion Development Project

• Secured financing and commenced

construction in Q2

• Resources updated in Q2
• Reserve update expected in Q3

Golden Hill Exploration JV

• Initial resource expected by end of 2018
• Fully funded to feasibility

Gourma Exploration JV Guitry Dianra Mahepleu Tiassale Sangaredougou

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

Teranga has nearly 4.0 million ounces of gold reserves from its Sabodala Gold Mine and its Wahgnion Development Project(1)(2)

Afema

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

4

Deep Value

Gold Price per Ounce Assumption Cash balance as at June 30, 2018 Wahgnion Project NPV5% based on 2P(1) Sabodala NPV5% based on 2P(2)

$5.31 $1.47 $1.11 $1,300

$4.39

TGZ Current Share Price

(closing price August 1, 2018)

$7.89

NPV* Per Share

based on cash & 2P reserves(1)(2)

Excludes potential value from:

• Wahgnion infill drill program
• Golden Hill
• Afema and Côte d’Ivoire assets

*Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (1) and (2) USD/CAD FX rate 0.77

Deep Value and Growth with Assets in Production, Development and Exploration

(C$)

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

~$100M annual free cash flow* (5)(6)(11)

Significantly Increasing Production and Improving Free Cash Flow

5 *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (3), (4), (5), (6), (7) and (11)

Teranga Consolidated Production Profile (koz)(3),(4),(7)

350Koz

~$70M annual free cash flow*(5)

2020 – 2022 Sabodala + Wahgnion ~350Koz annual production Opportunities to maintain production and free cash flow through resource conversion & discoveries at Sabodala & Wahgnion

6

• Deliver projects on time

and on budget

• Trust-based relationship

with all stakeholders

• Safeguard reputation
• Ability to grow footprint

in West Africa

Leading With Our Strong Social License

Shareholder Value Risk Management Improve Local Livelihoods

• Avoid community unrest

& conflict

• Avoid work stoppages
• Avoid legal action
• Avoid withdrawal of
• perating licenses
• Local recruitment
• Local progression

& promotion

• Local procurement &
• ther capacity building

Sabodala

Senegal, West Africa

7

*Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (2),(3),(5),(6) and (9) 8 Exploration Prospects Mineral Resources Masato Style Bulk Tonnage Gold Trend Golouma Style High- Grade Gold Trend Mining Concession Exploration Permits Previous Mine License

Sabodala Mill

Sabodala Mine License & Regional Land Package

Largest Gold Producer in Senegal: Strong 5-Year Profile

Mali

Niakafiri Goumbati West

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

2.7Moz

2P Reserves(2)

4.4Moz

M&I Resources(9)

13-Year

Mine Life(3)

Proven and Probable Reserves(2) (Moz)

Replacing Reserves & Increasing Production and Cash Flow

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

Updated Sabodala Technical Report: Annual Average Production of 176Koz at AISC* of Less Than $900/oz

Maki Medina

9 *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (2) and (6)

($40) ($20) $0 $20 $40 $60 $80

2018 2019 2020 2021 2022

5-Year Cash Flow(6) Before Taxes and Other ($1,250/oz)

June 2017 43-101 Dec 2015 43-101

• 50,000

100,000 150,000 200,000 250,000

2018 2019 2020 2021 2022

5-Year Production Profile (oz)

June 2017 43-101 Dec 2015 43-101

57,557 65,381 Q2 2017 Q2 2018

Production

(oz Au)

Increasing FY2018 Production Guidance to at Least 230,000 Ounces

10

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

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

Wahgnion Project

Burkina Faso, West Africa

11

12

Solid Start to Teranga’s Second Mine – Wahgnion

Nogbele Stinger

15km from plant

Samavogo

25km from plant

Fourkoura

6km from plant

Life of Mine Summary Initial 5.5 years LOM (9 years) Annual production(4)(5)(7) 131koz 119koz All-in sustaining costs* $807/oz $843/oz Total free cash flow* $302M $409M Pre-production capital** ($232M) Net cash flow $176M

*Refer to Appendix – Non-IFRS Performance Measures **Pre-production capital costs of $232 million excludes $12 million in construction readiness activities spent prior to major construction Refer to Appendix – Endnotes (1), (4), (5), (7) and (10)

1.2Moz

2P Reserves(1)

2.4Moz

M&I Resources(10)

0.2Moz

Inferred Resources(10)

Wahgnion Development Project

Permitted mining license: 89 km2 Exploration licenses:+1,000 km2

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

Proposed Processing Plant

13

Increased Wahgnion M&I Resources by 33% to 2.4 Million Ounces

Refer to Appendix – Endnotes (13), (14) and (15)

2017 Mineral Resources (13) (14)

Measured Resources Indicated Resources Measured + Indicated Resources Inferred Resources Deposit MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces Nogbele 1.17 1.47 0.06 17.92 1.43 0.82 19.08 1.43 0.88 9.11 1.18 0.34 Samavogo 0.00 0.00 0.00 6.62 2.05 0.44 6.62 2.05 0.44 3.75 1.92 0.23 Stinger 0.16 2.16 0.01 6.09 1.67 0.33 6.24 1.69 0.34 1.98 1.45 0.09 Fourkoura 0.36 1.57 0.02 3.02 1.60 0.16 3.38 1.60 0.17 0.98 1.33 0.04

Total Wahgnion 1.68 1.55 0.08 33.65 1.61 1.74 35.33 1.61 1.83 15.82 1.40 0.71

2018 Mineral Resources (13) (15)

Measured Resources Indicated Resources Measured + Indicated Resources Inferred Resources Deposit MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces MTonnes Grade (Au g/t) MOunces Nogbele N/Nangolo 1.62 1.26 0.07 22.50 1.40 1.02 24.12 1.39 1.08 2.65 1.27 0.11 Samavogo 0.00 0.00 0.00 8.06 1.91 0.49 8.06 1.91 0.49 1.46 1.65 0.08 Stinger 0.16 2.15 0.01 8.30 1.56 0.42 8.46 1.58 0.43 0.57 1.56 0.03 Nogbele S 0.46 1.81 0.03 4.71 1.29 0.19 5.18 1.33 0.22 0.33 1.14 0.01 Fourkoura 0.59 1.63 0.03 4.10 1.42 0.19 4.69 1.45 0.22 0.24 1.53 0.01

Total 2.83 1.48 0.13 47.67 1.51 2.31 50.50 1.51 2.44 5.25 1.41 0.24 Notes: Totals may not equal due to rounding.

2018 Update Converted 87% (617koz)

• f Inferred

to M&I

Kafina West

Raul

Hillside 14

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

Golden Hill

Burkina Faso

15

16

M&I Resources are inclusive of P&P Reserves

Uniquely Positioned: High-Grade, Big Potential

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 the Most Exciting Exploration Projects in West Africa

• Plan to release an initial resource for Golden Hill’s

most advanced prospects by end of 2018

• $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

Interpreted Geology

Andesite Basalt Basin Batholith Chert Granitoid Tarkwaian

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

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

Active and Aggressive Exploration Program

Jackhammer Hill Peksou C-Zone Peksou North Peksou Basin

Peksou Intrusive Complex

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

18

19 19

Ma Prospect – 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

20 20

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

21 21

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

22 22

Peksou North / Basin – Highlights

New Near-Surface Discoveries at 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

Côte d’Ivoire Exploration

Guitry & Afema

23

Guitry

• Completed the first-ever drilling program on the

property – 68 shallow air-core sectional profile holes – comprising 3,300 metres over the central 1 km extent of our current 7 km strike length gold-in-soil geochem anomaly

• Results from this first pass, near-surface drilling

program, will help us determine where to focus subsequent exploration within this large target

Endeavour Endeavour Perseus Randgold

Côte d’Ivoire

Guitry Tiassale Mahepleu Sangaredougou

Operating Gold Mine/ Development Project Newcrest

Dianra

24

Afema

Exciting Opportunities in Côte d’Ivoire

Afema: Situated on Two 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

25

Highly Prospective 1,400 km2 Land Package

• Large land package includes one mining

license and three exploration permits

• JV With Sodim Limited (51%, earning 70%)

Ghana Côte d’Ivoire

Côte d’Ivoire Represents Significant Portion

• f West African Birimian Greenstone Belt

Other 4% Mali 10% Guinée 11% Ghana 19% Côte d'ivoire 35% Burkina Faso 21%

26

Favourably Situated Within Greenstone Belt

• Afema is situated within the southern extension
• f the prolific Sefwi-Bibiana greenstone belt,

which hosts more than 35Moz of gold resources within the Ghana portion alone

• Numerous, widely-distributed, historical gold
• ccurrences
• Five recognized regional shear structures with a

combined strike length of 144 km H2 2018 Planned Exploration

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

sediment (BLEG) programs

Afema Structural and Geological Compilation

Summary

27

Top 10 Shareholders % of o/s shares Shareholdings Filed as at August 1, 2018 1 Tablo Corporation 21.7% 23,322,400 2 Van Eck Associates Corporation 6.4% 6,855,022 3 Ruffer LLP 4.7% 5,076,743 4 Dimensional Fund Advisors, L.P. 3.4% 3,649,839 5 Heartland Advisors, Inc. 2.7% 2,900,000 6 Franklin Advisers, Inc. 2.6% 2,807,200 7 Connor, Clark & Lunn Inv Mgmt 2.0% 2,175,000 8 LSV Asset Management 2.0% 2,144,540 9 Konwave AG 1.9% 2,062,500 10 MMCAP Asset Management 1.6% 1,673,116

28

Share Price Performance (TSX: TGZ) (Closing price on December 12, 2017 – August 1, 2018)

Capital Structure and Recent Share Price Performance

Source: IR Insight on August 1, 2018

• 2%

+4% TGZ-TSX GDXJ Gold Price

Capital Structure (at July 31, 2018 unless otherwise noted) Common shares outstanding 107.6M Stock options outstanding 9.6M Fully diluted 113.0M Number of shares owned by insiders 24.0M Market capitalization (August 1, 2018) C$472M Cash / Net cash (June 30, 2018) US$92M / US$22M

ASX Delisting Completed Compulsory Sale Facility before markets open on December 13 – stock price hit low of C$2.30 (compared to C$2.42 closing price on December 12)

+81%

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

29

Initial private placement 34% Gryphon acquisition 8% Secondary public

• ffering

25% On market purchases 33%

Tablo Corporation Owns 23.3 Million Shares of Teranga at an Average Price of $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 David Mimran / Tablo Committed to Long-Term Growth of Teranga

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

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

• utstanding common shares over the next twelve months

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

Regular exploration updates Initial resource estimation by year end

Golden Hill Sabodala

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

2018 News Flow and Milestones

30

Update reserves in Q3 Update NI 43-101 technical report in Q3 Project updates from Guitry and Afema

Wahgnion Côte d’Ivoire

31

Potential for Significant Share Price Appreciation

Teranga’s Share Price (C$)

• vs. Net Present Value* (NPV)(12) per Share

115%

*Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnote (12)

$4.39 $5.55 $9.44

Share Price BMO NPV per Share (Spot) Revalued Share Price

0.8x

Current TGZ NPV Trading Multiple(12)

1.7x

Average NPV Multiple for Medium Producers(12)

Data Source: BMO GoldPages published July 30, 2018

EV/2P Reserves ($/oz)

17.6 6.9 6.6 6.0 4.5 3.7 2.9 2.9

Alacer Perseus Semafo Endeavour B2Gold Teranga Roxgold Golden Star

EV/2018E EBITDA

339 325 238 206 201 105 85 40

Roxgold B2Gold Endeavour Semafo Golden Star Alacer Teranga Perseus

Appendix

2018 Outlook: Increased Production

33

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

Qualified Persons Statement

34

The technical information contained in this document relating to the Sabodala 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 Sabodala 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

• f 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. The technical information contained in this document relating to the Wahgnion open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Glen Ehasoo, P. Eng., of RPA, who is a member of the Association

• f Professional Engineers and Geoscientists of British Columbia. Mr. Ehasoo is "independent" within the meaning of NI 43-101. Mr. Ehasoo 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. Ehasoo 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 Wahgnion mineral resource estimates is based on, and fairly represents, information compiled by Mr. David Ross, P.Geo., of RPA, who is a Member of the Association of Professional Geoscientists of Ontario. Mr. Ross is "independent" within the meaning of NI 43-101. Mr. Ross 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. Ross 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 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 2017 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.

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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

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1. Refers to proven and probable reserves of 1.2Moz for the Wahgnion project as per reserve estimate as of September 7, 2017 included in the Wahgnion technical report dated October 20, 2017 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Teranga expects to release an updated mineral reserve estimate and related NI 43-101 technical report for Wahgnion in the third 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 at 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 September 7, 2017. For more information regarding the Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 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. See the NI 43-101 compliant technical report for the Wahgnion Project. This LOM production plan assumes that the Wahgnion Project plant construction will commence in Q1 2018. If the Wahgnion plant construction commences in Q2 2018 instead, the LOM production plan is expected to shift by several months. 8. Other considerations (uses) is an estimate of potential other uses of the Company’s cash during the period, including, but not limited to, acquisition costs to acquire an interest in the Afema project, discretionary exploration expenditures, financing costs and costs to secure the Taurus Facility. Actual amounts may total more or less than the aggregate amount specified. 9. 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.

• 10. 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.

• 11. Free cash flow excludes Wahgnion financing and corporate-wide resource development and exploration expenditures. Please see table on slide 7 of the Company’s Investor & Analyst Workshop presentation

dated September 14, 2017, which was filed on www.sedar.com.

• 12. Net Present Value (“NPV”) per share is a Non-IFRS financial measure. NPV per share, average NPV multiple of medium producers, and Teranga’s share price is as per BMO GoldPages published July 30, 2018.

According to BMO GoldPages, NPV per share is calculated using the net present value of the life of mine cash flows based on the NI 43-101 plan, less cash flow of corporate costs, less net debt per share, using the model at SPOT commodity prices and exchange rates. The “Revalued Share Price” is calculated using the NPV per share at SPOT times the NPV multiples as listed. The BMO NPV calculation assumes a US$1,223 SPOT gold price per ounce, 5% discount, 0.77 USD/CAD exchange rate.

Endnotes (continued)

37

• 13. CIM definitions were followed for Mineral Resources. Mineral Resources are inclusive of Mineral Reserves and are constrained by resource pit shells. A minimum thickness of two metres was applied.
• 14. Notes for historical Wahgnion 2017 Mineral Resources Estimate: Open pit oxide Mineral Resources are estimated at cut-off grades ranging from 0.35 g/t Au to 0.45 g/t Au; open pit transition and fresh rock

Mineral Resources are estimated at cut-off grades ranging from 0.45 g/t Au to 0.55 g/t Au; high grade assays were capped at grades ranging from 2.5 g/t Au to 48.0 g/t Au; and, Mineral Resources are estimated using a gold price of $1,450 per ounce.

• 15. Notes for Wahgnion 2018 Mineral Resources Estimate (effective May 31, 2018): Mineral Resources are reported at cut-off grades ranging from 0.320 g/t Au to 0.403 g/t Au in oxide, and at cut-off grades ranging

from 0.388 g/t Au to 0.541 g/t Au in transition and primary rock; high grade assays were capped at grades ranging from 5 to 48 g/t Au; and, Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce, adjusted to match existing industry standards.

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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