Denver Gold Forum Building a Multi-Asset Mid-Tier Colorado Springs, Colorado TSX:TGZ / OTCQX:TGCDF West African Gold Producer September 23-26, 2018
Forward-Looking Statements 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 of 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 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. 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 or 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. 2
Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa Senegal Sabodala Gold Mali Operation 2P Reserves: 2.7Moz (2) Niger The Gambia Burkina Faso Guinea- Wahgnion Gold Gourma Bisseau Development Exploration 2P Reserves: 1.6Moz (1) JV Guinea Golden Hill Advanced Exploration Miminvest & JV Afema Exploration JVs Dianra Sierra Benin Leone Ghana Côte d’Ivoire Togo Mahepleu Tiassale Liberia Guitry Sangaredougou Afema JV 3 Refer to Appendix – Endnotes (1) and (2)
Strong Organic Growth Pipeline Mid-Tier Producer with Sabodala Wahgnion Golden Miminvest & Exploration Gold Mine Gold Project Hill Afema JVs & Resource Scale and Conversion (Senegal) (Burkina Faso) (Burkina Faso) (Côte d’Ivoire) Diversification 4
Delivering on Our Organic Growth West African Risk Improve Local Experience Management Livelihoods • Transparency • Deliver projects on time • Local recruitment and on budget • Fair share fiscal framework • Local progression • Strategic relationships and promotion • Proactive community with all stakeholders development and dialogue • Local procurement and • Safeguard reputation other capacity building 5
Sabodala Senegal, West Africa 6
Bransan Lot A Sabodala: Largest Gold Producer in Senegal Diadiako Gora Bransan Lot A Sabodala Lot B Sounkounko u 4.4Moz 2.7Moz 13-Year Sabodala Lot A Sekoto M&I Resources (7) 2P Reserves (2) Mine Life (3) Masato Bransan Lot B Mamasato Soukhoto Niakafiri Niakafiri East Kouroundi West Strong 5-Year Profile with Potential to Increase Mine Life Golouma Kerekounda Maki North Kourouloulou Medina Golouma Life of Mine 5 years 13 years Golouma South West Kobokoto Koulouqwinde Summary (2)(3)(5)(6) (2018-2022) (2018-2030) Goumbati West Koutoniokollo Annual production 213koz 176koz Kinemba East All-in sustaining costs* $885/oz $893/oz Total free cash flow* $230M $556M Sabodala Gold Mine Senegal, West Africa Permitted mining license: 291 km 2 *Refer to Appendix – Non-IFRS Performance Measures 7 Refer to Appendix – Endnotes (2),(3),(5),(6) and (7)
Strong Track Record of Replacing Reserves at Sabodala Sabodala Proven and Probable Reserves (7) (Moz) Significant Opportunity for Growth at Sabodala • Sabodala village relocation provides 2.8 2.7 opportunity to drill out Niakafiri, the 2.6 2.6 largest deposit on the mine license, 1.7 1.6 and to increase remaining mine life 1.4 • Village relocation expected to be 1.5Moz of Gold Production at completed in 2019 Sabodala Since 2010 2010 2011 2012 2013 2014 2015 2017 Graph includes years for which there was a reserve update 8 Refer to Appendix – Endnote (7)
Increased FY2018 Production Guidance to at Least 230,000 Ounces Increased Production FY 2018 Production (oz Au) Guidance to at Least 230koz (3) 13% Increase 14% Increase At least 233,267 230,000 (3) 129,412 114,460 65,381 57,557 H1 2017 H1 2018 FY2017 2018 Outlook Q2 2017 Q2 2018 9 Refer to Appendix – Endnote (3)
Wahgnion Project Burkina Faso, West Africa 10
Wahgnion: The Next Large Long-Life Commercial Gold Mine in Burkina Faso Wahgnion Development Project Burkina Faso, West Africa Permitted mining license: 89 km 2 1.6Moz 2.4Moz 0.2Moz Samavogo 2P M&I Inferred 25km from plant Reserves (1) Resources (8) Resources (8) Nogbele Initial LOM Fourkoura 6km from plant Life of Mine Summary 5 years (13 years) Annual production (4)(5)(9) 132koz 114koz Stinger 15km from plant All-in sustaining costs* $761/oz $904/oz Total free cash flow* $311M $479M Pre-production capital** ($240M) Proposed Pre-production operating costs ($28M) Processing Plant Four initial deposits at Wahgnion Net cash flow $211M (Nogbele, Samavogo, Fourkoura *Refer to Appendix – Non-IFRS Performance Measures & Stinger) located in close proximity **Pre-production capital costs of $240 million excludes $16 million in construction to proposed plant site readiness activities spent prior to major construction 11 Refer to Appendix – Endnotes (1), (4), (5), (8) and (9)
Significant Mid to Long-Term Upside Potential Wahgnion (Burkina Faso) Kondandougoug Exploration licenses:+1,000 km 2 Regional Exploration Includes ~12 Drill-Ready Targets Bagu Sud Samavogo North • Targets have potential to become resources and are within trucking distance of proposed plant site Korindougou • Konatvogo: 2,000-metre NW-trending anomaly Samavogo between Fourkoura and Nogbele deposits. Up to 21.6 g/t Au from altered shear-hosted quartz vein outcrops Kafina West Bazogo • Bassongoro: 1,500-metre NNE-trending soil and Ouahiri auger anomaly (up to 15g/t Au). Intersection of regional Nianka and Fourkoura structures undrilled Bassongoro Nogbele Raul Raul Hillside Konatvogo Stinger Fourkoura Muddhi Petit Colline Sud Proposed Plant Site Reserve Deposits 12 Exploration Targets
Golden Hill Burkina Faso, West Africa 13
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