FOCUSED INVESTOR PRESENTATION DECEMBER 2014 TSX/ASX: TGZ FORWARD - PowerPoint PPT Presentation

FOCUSED INVESTOR PRESENTATION DECEMBER 2014 TSX/ASX: TGZ

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”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify such forward looking information. 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. These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. 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 the Company’s Annual Information Form dated April 24, 2014, and in other company filings 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 dated as of December 5, 2014. All references to the Company 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

TERANGA GOLD MINERAL RESERVES CAPITALIZATION SUMMARY 3.0 Ticker symbols/share price: 2 TSX:TGZ / C$0.46 OPEN PIT ASX:TGZ / A$0.51 2.5 Domicile: Canada Basic shares outstanding: 4 353M 2.0 Options outstanding: 5 23M (Moz) Market capitalization: 2 $143M 1.5 Net Book Value: 3 $474M 1.0 Cash & equivalents: 3 $28M Project finance outstanding: 3 $15M 0.5 Mining fleet loan facility: 3 $7.4M 0.0 2011 2012 2013 YEAR-END EXPECTATIONS  Cash balance of ~$20M - $25M 6 Proven & Probable Reserves = 2.81Moz Measured & Indicated Resources = 6.19Moz 1  Debt free Inferred Resources = 2.59Moz  ~$65M paid in one-time payments 7 *All amounts in US$ unless stated otherwise 1 Refer to endnote #1 2 Refer to endnote #2 3 Refer to endnote #3 4 Refer to endnote #4 3 5 Refer to endnote #5 6 Refer to endnote #6 7 Refer to endnote #7

INVESTMENT SUMMARY  Strong production and low all-in sustaining cost profile 1  6.2M in resources (2.8M reserves)  Organic growth opportunities  Mining friendly jurisdiction  Expect to be debt free by year-end  Expect to generate free cash flow in 2015 and beyond 2 (Net Book Value $474M) 3  Market Cap $143M Significant flexibility to withstand a depressed gold price 1 Refer to endnote #1 2 Refer to endnote #2 4 3 Refer to endnote #3

INCREASING NET CASH POSITION $60,000 $40,000 $20,000 $0 USD 000’s ($20,000) ($40,000) ($60,000) ($80,000) ($100,000) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Cash Debt Cash Net Debt 5

VISION Phase 1: 250,000oz – 350,000oz Leveraging off our existing mill and infrastructure • Expanded mill • 250,000 ounces/year base case & opportunities for growth Phase 2: 400,000oz – 500,000oz Requiring a second mill/expansion • Exploration discoveries • Potential growth opportunities within Senegal Large land package (>1,250km 2 ) – prolific greenstone belt 6

BASE CASE – MINE PLAN • • OJVG acquisition doubled reserves, 2014 Guidance: resources, mine life and increased Production ~215,000 oz production base Cash costs ~$725/oz 9 AISC ~$900/oz 9 • Competitive AISC structure • Maximize free cash flow 8 See Appendix for Base Case Life of Mine Plan. 8 Refer to endnote #8 9 Refer to endnote #9 7

ORGANIC GROWTH OPPORTUNITIES PHASE 1: 250,000 – 350,000 OZ/YR PHASE 2: 400,000 – 500,000 OZ/YR Short & Medium-term (2014-16) Long-term (2015+) Gold inventory/production/free cash New discoveries through systematic flow growth opportunities: identification and evaluation of targets on: 1. Integrate OJVG and Sabodala operations 1. Sabodala Mine License (246km 2 ) Develop Masato • 2. Regional land package 2. Continually optimizing mine plan (1,055km 2 ) and grade to mill 3. Potential growth opportunities Masato / Gora / Golouma • within Senegal 3. Optimize mill throughput 4. Evaluate heap leaching 5. Conversion of M&I and Inferred to reserves on Mine License Minimal capital required 8

MINE LICENSE & REGIONAL LAND PACKAGE 9

PHASE 1 VISION GROWTH INITIATIVES: 250,000 – 350,000 OZ / YR 1. INTEGRATION OF OJVG & SABODALA Masato Deposit • Mining commenced Q3, higher tonnage and grade • Infill drilling results confirmed interpretation of the resource model (resource and reserve update Q4) 2. OPTIMIZING MINE PLAN AND GRADE 2015 Mine Plan: Focused on free cash flow • Anticipated lower material movement and capital expenditures • Anticipate $40M - $60M improvement 10 Gora Deposit • Permitting process completion expected in Q4 • Access road construction expected to begin late 2014 • Production expected mid-2015 Golouma Deposit • Infill drill program initiated Q3 10 10 Refer to endnote #10

3. FINALIZING MILL OPTIMIZATION Crusher Throughput vs. Mill (tpoh) • Sabodala mill currently operating at design (July 2013 – May 2014) 600 capacity: - 3.5 mtpa (~430 tpoh) throughput 500 • When crushed stockpiles ~100% full - Up to 480 tpoh throughput 400 • Mill TPOH Correlation between crusher downtime and mill throughput 300 - Directly related to inventory level of crushed - Strong relationship ore stockpiles feeding mill between crushes tonnes 200 and mill rate • Sustained high crushed stockpiles could - Increasing crushing result in: capacity may result in 100 higher mill throughput - 5% - 10% increase in overall throughput - Optimization of mill 0 0 2,000 4,000 6,000 8,000 10,000 • Technical analysis completed Q3 ‘14 Crusher Throughput per Shift - Adjustments to SAG, Ball Mills, and crusher system expected to increase mill throughput - Upgrades expected to be operational over ~ 18 months 11 ) $12M - $15M total estimated capital cost (IRR 30%-60% 11 Refer to endnote #11 11

4. HEAP LEACH OPPORTUNITY • PHASE 1: TEST OXIDE ORE ‐ Encouraging preliminary results ‐ Recovery rates, agglomerations, and cyanide consumption in line with expectations to date • PHASE 2: TEST SULPHIDE ORE ‐ Proceeding with test work • KCA (Reno) performing heap leach test ~8km work oxide trend • Significant low grade oxide and sulphide ore stockpiled • Opportunity to increase oxide ore inventory over >8km mineralized trend Heap leachable reserve growth • Potential to account for 10% - 20% of (Niakafiri structure, Maki Madina) annual production • Anticipate decision to proceed by year-end with production targeted for 2017 12

COLUMN LEACH TESTS RESULTS 100% 90% Cumulative Percent Gold Extraction 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 10 20 30 40 50 60 70 Days of Leach Masato Composite (71321) Niakafiri, SE Composite (71324) Masato Composite (71327) Note: Preliminary assays based on 60 days leaching in column test work 13

MINE LICENSE EXPLORATION 2014: $10M Masato NE Structure Evaluation Niakafiri Maki Medina Kerekounda Strike Extrusion Evaluation Golouma NW Shear Structure Evaluation 14