121 Conference – London UK TSX:TGZ November 27-28, 2017
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”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “forecasts”, “focused on”, “anticipate” or “does not anticipate”, “believe”, “intend”, “ability to ”, “intended to”, “objective 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 in this presentation include the commencement of expected drill programs, net present value, anticipated future cash flows, anticipated construction readiness activities for the Company’s Banfora gold project in Burkina Faso as well as the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated discovery of reserves at the Banfora project, and Teranga’s estimated full year financial and operating totals, as well as anticipated 2017 operating results. 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 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 29, 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 report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. This presentation is as of November 27, 2017. 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. 2
Deep Value: A Re-Rating Opportunity (C$) Excludes potential value $7.51 from Banfora infill drill program and Golden Hill NPV* Per Share $0.69 (based on cash & 2P reserves (1)(2) ) $1.44 Cash balance as at September 30, 2017 $5.38 Banfora Project NPV 5% based on 2P (1) $2.65 Sabodala NPV 5% based on 2P (2) TGZ Current Share Price (closing price Nov 23, 2017) $1,300 Gold Price per Ounce Assumption *Refer to Non-IFRS Performance Measures on slide 20 Refer to Endnotes (1) and (2) on slide 21 3
Checking Off the Boxes Production • Targeting upper end of 2017 production guidance range of 205,000 – 225,000 ounces (3) • Generating free cash flow from Sabodala* Development • Completed Banfora project feasibility study • Obtained board approval to proceed • Announced construction and funding plans Exploration • Senegal • Burkina Faso • Côte d’Ivoire *Refer to Non-IFRS Performance Measures on slide 20 4 Refer to Endnote (3) on slide 21
Golden Hill Burkina Faso 5
Golden Hill: High-Grade, Big Potential Golden Hill (Houndé Belt – Burkina Faso) Situated in the Heart of Houndé Belt in Burkina Faso One of the most prospective gold belts in the world today Golden Hill is along trend with the Mana project to the north, next to Yaramoko and adjacent to the Houndé Project; to the south is a JV where +2 million ounces have already been discovered First Four Prospects Within 5 km Radius of Central Point • In just one year, Golden Hill has produced a series of high- grade, near-surface drill results at the first four prospects: Ma, Nahiri, Peksou, and Jackhammer Hill • Core drilling results at Jackhammer Hill included 110 grams per tonne of gold over 14 metres • The close proximity of these targets and prospects lends itself to a central mill/multi-deposit operation similar to Sabodala and Banfora 6
Ma Prospect: The Most Advanced of Four Prospects at Golden Hill Ma Prospect – Drill Plan Ma Prospect 2.3 kilometre long mineralized system Comprises multiple mineralized zones within a broad regional structural complex Ma prospect remains open to the east and the west and to depth Recent Drilling Highlights at Ma High-grade results confirm continuity of grade and width from surface to depths now approaching 125 metres 15 m @ 4.22 g/t Au including 7 m @ 7.89 g/t Au including 2 m @ 17.6 g/t Au (GHDD-067) 16 m @ 3.20 g/t Au including 1 m @ 15.7 g/t Au, and 3 m @ 6.14 g/t Au (GHDD-078) 6 m @ 5.79 g/t Au and 17 m @ 3.45 g/t Au including 6 m @ 6.32 g/t Au (GHDD-080) 7 7 For full details, please visit www.terangagold.com
Rapidly Progressing Towards an Initial Resource for Golden Hill in 2018 Ma Prospect – Representative Drill Section Ma Prospect – Representative Drill Section 8 For full details, please visit www.terangagold.com 8
Banfora Project Burkina Faso, West Africa 9
Banfora Project: A Strategic Pillar of Teranga’s Growth Plan $1,200 Target Area Along Strike Infill Drill Program Scheduled for November Completion Reserves Pit Limit • 75,000-metre infill drill program is targeting inferred $1,450 Resource Pit Limit resources located near to the current reserve pits Target Area at Depth • Objective is to increase drill hole density within the existing inferred resources Aiming for a Conversion Rate of 25%-50% of Inferred • Given demonstrated continuity of mineralization of the inferred resources, 25%-50% of inferred resources is targeted to be converted to indicated Near-Term Upside Expected to Improve Economics • Reserves update expected in H1 2018 10
Proposed Plant Site Reserve Deposits Drill-Ready Targets Underlie Multi-Year Regional Exploration Targets Exploration Program at Banfora Project Kondandougoug Prospective Banfora Land Package • ~12 targets identified Bagu Sud Samavogo North • Targets are within trucking distance of proposed plant site Korindougou Targets Have Potential to Become Resources Samavogo • Kafina West: 1,000 metre NE-trending soil and auger anomaly. Drill results of 8 m @ 2.2 g/t Au and 11 m @ 3.2 g/t Au Kafina West Bazogo • Konatvogo: 2,000-metre NW-trending soil and auger anomaly Ouahiri between the Fourkoura and Nogbele deposits. Up to 21.6 g/t Bassongoro Au from altered shear-hosted quartz vein outcrops Nogbele Raul • Bassongoro: 1,500-metre NNE-trending soil and auger Raul Hillside Konatvogo anomaly (up to 15g/t Au). Intersection of regional Nianka and Stinger Fourkoura Fourkoura structures undrilled Muddhi Petit Colline Sud 11
Banfora Expected to Significantly Increase Production and Improve Cash Flow Teranga Consolidated Production Profile (koz) (3),(4),(7) 2020 – 2022 Opportunities to improve reserves, production and free Sabodala + Banfora cash flow through resource ~350Koz annual production conversion & discoveries 350Koz ~$100M annual free cash flow* (11) ~$70M annual free cash flow* (5) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Sabodala Banfora *Refer to Non-IFRS Performance Measures on slide 20 12 Refer to Endnotes (3), (4), (5), (7) and (11) on slide 21
Sabodala Senegal, West Africa 13
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