Cape Town – 121 Conference TSX & ASX: TGZ February 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” 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, 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, the timing of completion of a Feasibility Study for 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 Amended and Restated Annual Information Form dated November 15, 2016, 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 February 2, 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. DISCLAIMER ON RESULTS CONTAINED IN THIS PRESENTATION This presentation contains 2016 Q4 and year-end financial information of the Company which has not been audited. All 2016 Q4 and year-end financial information presented in this presentation reflects management’s current assessment based upon information currently available to management. The reader is cautioned that audited financial results may differ from the information presented in this presentation. The Company’s audited consolidated financial statements as at and for the twelve months ended December 31, 2016 and 2015, and accompanying management’s discussion and analysis 2 will be released during the week of February 20th, 2017.
One-Half of Africa’s 2015 Gold Production Came From West Africa NORTH AMERICA WEST AFRICA 11.7Moz 8.6Moz EUROPE 9.5Moz CENTRAL AMERICA ASIA 6.1Moz 19.5Moz AFRICA 17.1Moz SOUTH AMERICA OCEANIA 14.2Moz 11.5Moz 3 Source: CPM Gold Yearbook 2016
3 Out of Top 5 Fastest Growing Gold Mining Regions are in Africa Global Gold Production CAGR 1990 - 2015 10.2% 9.9% 9.6% 8.5% 7.5% 5.2% 3.9% 0.9% (0.5%) (0.9%) (5.6%) West Central Europe East Africa West Africa Central Asia South Oceania Southern North South Africa America Africa America Africa America Africa 4 Source: CPM Gold Yearbook 2016
Increased Opportunities for Growth & Enhanced Optionality Senegal Niger Sabodala Gold Mine Mali Status: Producing Burkina The Gambia Reserves: 2.6Moz (2) Faso M&I: 4.4Moz (2) Guinea- Gourma Bisseau Banfora Project Exploration JV Status: Feasibility Guinea Golden Hill Exploration JV Dianra Exploration JV Benin Sierra Côte d’Ivoire Leone Togo Ghana Mahepleu Exploration JV Tiassale Exploration JV Guitry Liberia Exploration JV Sangaredougou 5 Refer to Endnote (2) on the second last slide
Sabodala Gold Mine – 1.2 Million Ounces Produced Since 2010 Senegal, West Africa
World-Class Gold Belt in Senegal Potential for Major Discoveries • Gold belt straddles border between Senegal Senegal and Mali where +50 million ounces have been discovered (3) 12M+ ounces Au discovered over Mali last 10 years Only Commercial Gold Mill in Senegal 40M+ ounces Au • Ability to process regional discoveries and discovered over enter into strategic combinations to process Iamgold last 25 years neighbouring deposits Iamgold Stable, Mining-Friendly Jurisdiction Randgold Bassari • Democratic government strongly supports Endeavour Toro Gold Randgold Randgold mining and views it as a key pillar for Iamgold B2Gold Senegal’s economic growth Birimian Gold Belt Sabodala Mine License Operating Gold Mine/ 7 Development Project Refer to Endnote (3) on the second last slide Sabodala Regional Land Package
Record-Breaking Operational Performance in 2016 Mining Costs ($/t mined) (1) 4% $2.42 $2.33 + 19 % + 18 % 2015 2016 Increase in gold Increase in production to a throughput to a Milling Costs record 216,735 record 4,025,000 ($/t milled) ounces (compared tonnes milled 24% to 182,282 in 2015) (compared to $14.01 3,421,000 in 2015) $10.70 8 2015 2016
Reduced Operational Risk at Sabodala Implemented Built Completed New Grade Inventory of Mill Control High-grade Optimization Procedures Ore 9
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