Investor Presentation Building a July 2019 Multi-Asset Mid-Tier TSX:TGZ / OTCQX:TGCDF West African Gold Producer
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 Sabodala Gold Senegal Operation Mali 2P Reserves: 2.7Moz (2) The Gambia Niger Wahgnion Gold Burkina Faso Gourma Guinea- Operation Bissau Exploration 2P Reserves: 1.6Moz (1) Golden Hill Guinea Advanced Exploration Project Mineral Resource: (3) Miminvest Indicated: 415koz @ 2.02 g/t Au and Afema Inferred: 644koz @ 1.68 g/t Au Permits Dianra Sierra Benin Leone Ghana Côte d’Ivoire Togo Liberia Sangaredougou Guitry Afema Refer Endnotes (1), (2) and (3) in the Appendix 3
Strong Organic Growth Pipeline Mid-Tier Producer with Sabodala Wahgnion Golden Hill Miminvest & Exploration Gold Mine Gold Mine Project Afema JVs & Resource Scale and (Côte d’Ivoire) Conversion (Senegal) (Burkina Faso) (Burkina Faso) Diversification 4 4
Solid Operating Performance Underlies Strong Financial Results in 2018 Revenue Gross Profit ($ millions) ($ millions) 7% 18% Increase Increase $312.6 $291.7 $82.1 $69.6 2017 2018 2017 2018 EBITDA* Net Cash Provided by Operating Activities 17% ($ millions) ($ millions) Increase 29% Increase $111.9 $95.3 $92.1 $71.4 2017 2018 *Refer to Non-IFRS Performance Measures in the Appendix 5 2017 2018
Liquidity Subsequent to Q1 2019 As at March 31, 2019 (As at May 3, 2019) Equipment Facility Cash & Cash Equivalents Total drawdown: $7.2M $56.2M Remaining balance: $5.3M Wahgnion Debt Facility Total drawdown: $136.8M $176M Remaining balance: $28.2M Golden Hill Debt Facility WGO project capital spend Total drawdown: $10M as at March 31, 2019 Remaining balance: $25M …………………………………… .. OF $224M TOTAL COMMITMENT VALUE As reported May 3, 2019 6
Focused On People Number of Senegalese Nationals 95% Employed at Sabodala Gold Mine of Sabodala Employees are Continues to Rise Senegalese Teranga Safety Record Amongst 66 Best in Industry 85 69 92 (based on LTIs per million hours worked) 95 86 96 0.53 0 1,245 1,124 1,089 1,053 966 LTI Frequency Rate LTI Frequency Rate 870 861 SABODALA WAHGNION WELL BELOW INDUSTRY AVERAGE* OF 5.81 LTIs PER MILLION HOURS WORKED 2012 2013 2014 2015 2016 2017 2018 Senegalese Nationals Expatriates *Based on mining profile of ANZSIC 2006, 2016/17 for metal ore mining 7
Ensuring Our Communities Are Better Off in the Long-Term Teranga’s C ontribution to Senegal (for the year ended December 31, 2018) Direct Contributions 112 households benefiting from Teranga-sponsored to the Sabodala cassava agricultural program at Wahgnion Community Local $1.1M Procurement 130+ tons of vegetables produced in Teranga $139.7M market gardens by 1,000+ women in Senegal $300K+ invested in education in Burkina Faso and Senegal $193M $280K invested in health across near-mine jurisdictions, including a malaria spray program in Senegal, infrastructure, and a community ambulance at Wahgnion Government Payments $43.6M Local Payroll $8.9M 8
Leading with Our Social License United Nations Global Compact Network Canada Sustainability Award 4X Winner of Corporate Knights Future 40 Responsible Corporate Leaders in Canada Capital Finance International: Best ESG Responsible Mining Management West Africa Prospectors & Developers Association of Canada 2017 Environmental & Social Responsibility Award W ORKING HARD WITH ALL OF OUR STAKEHOLDERS TO BE A PARTNER OF CHOICE 9
Unique Cornerstone Shareholder – Tablo Corporation – Currently Owns 22% of Teranga Tablo Corporation Owns 23.8 Million Shares David Mimran, Director of Teranga, Controls Tablo Corporation of Teranga at an Average Price of C$3.88 • Mr. Mimran is CEO of Grands Moulins d’Abidjan and Grands Moulins de Dakar, one of the largest producers of flour and agri- food in West Africa • He is Special Advisor to the government of the Republic of Cote d'Ivoire where he has led negotiations with the International On market Monetary Fund, the World Bank, the European Union, and the Initial private purchases placement 34% Government of the Republic of France 33% Strong Cornerstone Investor with In-Depth Local Knowledge • Long history of operating responsibly in Africa • Mimran Group is the largest private sector employer in both Gryphon Secondary Senegal and Côte d’Ivoire acquisition public 8% offering Committed to Teranga’s Long-Term Growth 25% • Last November, Tablo announced its intention to add to its holdings by acquiring up to 5% of Teranga’s issued and One-third of Tablo’s shares were purchased through exercise of anti-dilution right relating to acquisition of Gryphon Minerals in outstanding common shares in the open market October 2016 and November 2016 secondary offering. Initial private placement was made in October 2015. 10
2019 Has All The Makings of Another Good Year • Record quarterly • On budget and well • Completed Afema gold production of on schedule • Released early- economic 71,946 ounces • On track for stage initial mineral evaluation for • Per ounce cost commissioning in resource estimate government metrics improved Q3 and ramp-up of • Ongoing studies to • Conducted YoY production in Q4 advance towards airborne magnetic • On track to achieve • Completed first of feasibility stage and radiometrics 2019 production & two resettlement survey cost guidance areas 11
Sabodala Senegal, West Africa 12
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