Swiss Mining Conference Building The Next Multi-Asset Mid-Tier - - PowerPoint PPT Presentation

TSX:TGZ / OTCQX:TGCDF

Swiss Mining Conference

March 21-22, 2018 Building The Next Multi-Asset Mid-Tier West African Gold Producer

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Sepanta Dorri

Vice President, Corporate & Stakeholder Development

Forward-Looking Statements

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This document 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's future growth opportunities, results of operations, performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and other opportunities. Wherever possible, words such as “plans”, “expects”, “does not expect”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish” or “does not anticipate”, “believe”, “intend”, “ability to” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, have been used to identify such forward looking information. Specific forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of

• perations, future economic conditions and anticipated courses of action.

Although the forward-looking statements contained in this document 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 but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga's Annual Information Form dated March 30, 2017, and in other filings of Teranga 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 document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation is as of March 20, 2018. 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

1.4Moz production since IPO in late 2010 4

Wahgnion Development Project

Expect to close financing and commence construction in Q2 2018

Golden Hill Exploration JV Gourma Exploration JV Guitry Dianra Mahepleu Tiassale Sangaredougou

Building The Next Multi-Asset Mid-Tier West African Gold Producer

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)

Achieved record production of 233,267 oz

• f gold

Increased Sabodala reserves by 400,000 oz and filed updated NI 43-101(2) Announced positive feasibility for Wahgnion Project including reserves of 1.2 million oz(1) More positive drill results from Golden Hill Entered into joint venture on Afema land pcakage in Côte d’lvoire

FY2017 Highlights

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    

Refer to Appendix – Endnotes (1) and (2) 5

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Our resettlement has really improved

• ur lives

“ ”

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• Deliver projects on time and on budget
• Trust-based relationship with all

stakeholders

• Safeguard reputation
• Ability to grow footprint in West Africa

Creating Long-Term Sustainable Value for Our Stakeholders Through Responsible Mining

Shareholder Value Risk Management Improve Local Livelihoods

• Avoid community unrest & conflict
• Avoid work stoppages
• Avoid legal action
• Avoid withdrawal of operating licenses
• Local recruitment
• Local progression & promotion
• Local procurement &other capacity

building

10,000 Trees produced for rehabilitation in 2016 300 Bags of seeds collected for forestry rehabilitation 928 Women working in 10 market gardens producing 350 tons of vegetables since inception $1.7M Sustainable investments in 2016 as determined by the communities 725 Farmers supported in 2016 $139M Local procurement in 2016 93% National employees out of 1,258 site employees in 2016 170 Progressions and promotions of national employees in 2016 +11,000 People benefiting from malaria spray program in 2016

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Sharing the Benefits of Responsible Mining



Prospectors & Developers Association of Canada 2017 Environmental & Social Responsibility Award United Nations Global Compact Network Canada Sustainability Award Three Time Winner of Corporate Knights Future 40 Responsible Corporate Leaders in Canada Capital Finance International: Best ESG Responsible Mining Management West Africa

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  

Garnering International Awards & Recognition

• Resettlements led by ERM Group, experienced global sustainability consultants
• The resettlements comply with the IFC Performance Standards and reflect international best practice in resettlement and livelihood
• Members of the affected communities participate in all areas of decision making
• Our mission is to leave the communities better off than before we arrived

Managing Two World-Class Resettlements: Sabodala and Wahgnion Resettlement of Communities

• Household and farmland surveys
• Community negotiations on physical resettlement
• Permitting and urban planning
• Financial compensation for land, crops, trees, inconvenience, annexes
• Resettlement site construction
• Livelihood restoration
• Monitoring and evaluation and continued support

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Sabodala

Senegal, West Africa

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12 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 (Senegal) 2.7 Million Ounces in Proven & Probable Reserves

• 4.4 million ounces in measured and indicated resources(9)
• 13-year mine life(9)
• Focused on resource definition and resource conversion at

Niakafiri to expand reserves and extend mine life

Largest Gold Mine in Mining-Friendly Senegal

Refer to Appendix – Endnotes (2) and (9)

Mali

Life of Mine Summary(2) 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

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

13 *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

Wahgnion Project

Burkina Faso, West Africa

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Mali Ghana Benin Niger Togo

Burkina Faso

Côte d’Ivoire Tongon Bobo-Dioulasso

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Strategic Pillar of Teranga’s Growth Plan

Wahgnion is Ideally Situated on a Prolific Gold Belt

• Permitted mining license that covers 89 km2
• Exploration licenses covering +1,000 km2

Initial Feasibility Study

• Includes only 4 deposits: Nogbele, Stinger, Samavogo and Fourkoura
• Proven and probable reserves of 1.2Moz
• Measured and indicated resources of 1.8Moz
• Inferred resources of 0.7Moz

Samavogo Stinger Wahgnion Project Nogbele Fourkoura

Wahgnion

Proposed Plant Site Life of Mine Summary 5.5 years LOM (9 years) Annual production(1) 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 Refer to Appendix – Endnote (1)

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

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

Significantly Increasing Production and Improving Free Cash Flow

16 *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (3), (4), (5), (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

Golden Hill

Burkina Faso

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M&I Resources are inclusive of P&P Reserves Siou Pit M&I: 0.89 Moz ¹ Yaramoko M&I: 0.81 Moz ² Houndé M&I: 2.55 Moz ³ Mana M&I: 3.63 Moz ¹

Teranga’s JV Golden Hill Project

Karankasso JV Inf: 0.67 Moz ⁵ Sarama Permits South Houndé JV Inf: 2.10 Moz ⁴ Acacia JVs ⁴

Situated in the Heart of the Houndé Belt in Burkina Faso

• 468 km2 situated ~200km NE of Wahgnion gold project
• One of the most prospective gold belts in the world today
• On the Houndé belt in close proximity and along strike to other

large deposits One of the Best High-Grade 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 of

Golden Hill 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

Uniquely Positioned and Advancing Quickly

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High-Grade with Significant Potential

Five Prospects Within ~5-Kilometre Radius of Central Point

• In just one year, there have been three discoveries at

Golden Hill

• To date Golden Hill has produced a series of high-grade,

near-surface drill results at the first five prospects:

– Ma – Jackhammer Hill – Peksou – C-Zone – Nahiri

• The close proximity of these targets and prospects lends

itself to a central mill/multi-deposit operation similar to Sabodala and Wahgnion

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

Côte d’Ivoire Exploration

Guitry & Afema

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Exciting Opportunities in Côte d’Ivoire

Initial 5 Greenfield Exploration Tenements Totaling +1,800 km2

• Positive preliminary results at the Guitry prospect have

made it a priority

• 3 km x 7 km gold-in-soil geochemical anomaly
• Initial drilling evaluation being undertaken with

4000-metre RC drill program underway Recently Added 1,400 km2 Afema Land Package

• Afema mine license
• Three exploration permits (Ayame, Mafere, Aboisso)

Endeavour Endeavour Perseus Randgold

Côte d’Ivoire

Guitry Tiassale Mahepleu Sangaredougou

Operating Gold Mine/ Development Project Newcrest

Dianra

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Afema

Côte d’Ivoire Ahafo 17 Moz Newmont 3 Afema Exploration Permits Afema Mining Permit Bibiani 7 Moz Resolute Mining Chirano 5 Moz Kinross Edikan 6.6 Moz Perseus Bogoso/Prestea18 Moz Gold Star Konogo 1.4 MozSignature Metals Akyem Newmont Essase 5.19 Moz Obotan 5.5 Moz Asanko Obuasi 41 Moz Anglo Gold Ashanti Kubi 0.9 MozAsaute 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 Ghana 22

Afema: Looking to Confirm and Improve Historical Resource* of 2Moz of Gold

Well Located Geologically

• Along trend and within the same gold belts of a

number of high profile producing mines in Ghana JV With 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; and – delivery of an updated technical study

• Teranga will sole fund and manage the

exploration programs and studies

• Upon delivery of an updated technical study,

Sodim can elect to maintain 30% or convert to a 3% NSR

*Refer to Appendix – Afema Mine License Historical Resource Estimate

Wrap-Up

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Strong Financial Position to Fund Construction of Second Mine

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$88 Million

Cash balance as at December 31, 2017

+$90 Million(6)

Estimated cash flow from Sabodala 2018-2019

$165 Million

$165M (net $150M) project debt facility expected to close in Q2 2018

Solid Financial Position

to fund pre-production capital cost

• f building second mine

(Wahgnion)

Refer to Appendix – Endnote (6)

2018 News Flow and Milestones

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Regular exploration updates starting in Q1 Maiden resource Close project financing Commence mill construction Update reserves Update NI 43-101 technical report Project updates from Guitry and Afema

Wahgnion Golden Hill Côte d’Ivoire Senegal

Production of 210Koz-225Koz Commence Niakafiri relocation

Top 10 Shareholders % of o/s shares Shares Owned as at March 7, 2018 1 Tablo Corporation 21.7% 23,322,400 2 Van Eck Associates Corporation 6.1% 6,573,022 3 Heartland Advisors 4.5% 4,800,000 4 Ruffer LLP 4.3% 4,607,243 5 Oppenheimer Funds 3.2% 3,460,828 6 Dimensional Fund Advisors 2.9% 3,100,539 7 Franklin Advisers 2.5% 2,707,200 8 Universal-Investment Gesellschaft 1.6% 1,735,000 9 LSV Asset Management 1.6% 1,719,540 10 Konwave AG 1.6% 1,698,197

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Share Price Performance (TSX: TGZ) (Closing price on December 12, 2017 – March 14, 2018)

Capital Structure and Recent Share Price Performance

Source: IR Insight on March 13, 2018 ASX Delisting Completed Compulsory Sale Facility before markets

• pen on December 13 – stock price hit low of $2.30

(compared to $2.42 closing price on December 12)

+7% +5% +72% TGZ-TSX GDXJ Gold Price

Capital Structure (at December 31, 2017 unless otherwise noted) Common shares outstanding 107.3M Stock options outstanding 4.5M Fully diluted 111.8M Number of shares owned by insiders 23.8M Market capitalization (March 14, 2018) C$446M/ US$343M Cash / Net cash US$88M / US$70M

Potential for Significant Share Appreciation

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Teranga’s Share Price

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

90%

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

US$3.20 US$5.56 US$6.12

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

0.70x

Current TGZ NPV Trading Multiple(12)

1.1x

Average NPV Multiple for Medium Producers(12)

Data Source: BMO GoldPages published March 12, 2018

EV/2018E EBITDA

492 443 318 240 235 97 91 55 53

B2Gold Roxgold Endeavour Golden Star Semafo Teranga Alacer Asanko Perseus

EV/2P Reserves ($/oz)

3.3 3.4 3.5 4.1 5.0 6.1 6.2 30.0

Asanko Golden Star Teranga Roxgold Semafo B2Gold Endeavour Alacer

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Deep Value

Gold Price per Ounce Assumption Cash balance as at December 31, 2017 Wahgnion Project NPV5% based on 2P(1) Sabodala NPV5% based on 2P(2)

US$3.93 US$1.09 US$0.79 $1,300

US$3.20

TGZ Current Share Price

(closing price Mar 14, 2018)

US$5.81

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

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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