Investor Presentation Building a Multi-Asset Mid-Tier August 2018 - PowerPoint PPT Presentation

Investor Presentation Building a Multi-Asset Mid-Tier August 2018 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 Senegal Sabodala Gold Mine Mali • Long life mine • More than 1.5Moz production Niger Burkina Faso since late 2010 The Gambia Wahgnion Development Project Guinea- • Secured financing and commenced Bisseau construction in Q2 • Resources updated in Q2 • Reserve update expected in Q3 Guinea Gourma Exploration Golden Hill Exploration JV JV • Initial resource expected by end of 2018 Dianra • Fully funded to feasibility Teranga has nearly Sierra Benin 4.0 million ounces of Leone Ghana gold reserves from Côte d’Ivoire Togo Mahepleu its Sabodala Gold Mine and its Wahgnion Tiassale Liberia Development Project (1)(2) Afema Guitry Sangaredougou 3 Refer to Appendix – Endnotes (1) and (2)

Deep Value Deep Value and Growth with Assets in Production, Development and Exploration (C$) Excludes potential value from: $7.89 • Wahgnion infill drill program NPV* • Golden Hill Per Share • Afema and Côte d’Ivoire assets based on cash & 2P reserves (1)(2) $1.11 $1.47 Cash balance as at June 30, 2018 $5.31 $4.39 Wahgnion Project NPV 5% based on 2P (1) TGZ Current Sabodala NPV 5% based on 2P (2) Share Price (closing price August 1, 2018) $1,300 Gold Price per Ounce Assumption *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (1) and (2) 4 USD/CAD FX rate 0.77

Significantly Increasing Production and Improving Free Cash Flow Teranga Consolidated Production Profile (koz) (3),(4),(7) 2020 – 2022 Opportunities to maintain production and free cash flow Sabodala + Wahgnion ~350Koz annual through resource conversion & discoveries at Sabodala & production Wahgnion 350Koz ~$100M annual free cash flow * (5)(6)(11) ~$70M annual free cash flow* (5) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 *Refer to Appendix – Non-IFRS Performance Measures Refer to Appendix – Endnotes (3), (4), (5), (6), (7) and (11)

Leading With Our Strong Social License Shareholder Risk Improve Local Value Management Livelihoods • Avoid community unrest • Deliver projects on time • Local recruitment & conflict and on budget • Local progression • Avoid work stoppages • Trust-based relationship & promotion with all stakeholders • Avoid legal action • Local procurement & • Safeguard reputation other capacity building • Avoid withdrawal of operating licenses • Ability to grow footprint in West Africa 6

Sabodala Senegal, West Africa 7

Largest Gold Producer in Senegal: Strong 5-Year Profile Mali 2.7Moz 4.4Moz 13-Year 2P Reserves (2) M&I Resources (9) Mine Life (3) Life of Mine 5 years 13 years Summary (2)(3)(5)(6) (2018-2022) (2018-2030) Sabodala Mine License & Annual production 213koz 176koz Regional Land Package Sabodala All-in sustaining costs* $885/oz $893/oz Mill Exploration Prospects Total free cash flow* $230M $556M Mineral Resources Niakafiri Masato Style Bulk Tonnage Gold Trend Golouma Style High- Grade Gold Trend Goumbati West Mining Concession Exploration Permits Previous Mine License *Refer to Appendix – Non-IFRS Performance Measures 8 Refer to Appendix – Endnotes (2),(3),(5),(6) and (9)

Replacing Reserves & Increasing Production and Cash Flow 5-Year Production Profile (oz) Proven and Probable Reserves (2) (Moz) Maki 250,000 Medina 200,000 150,000 100,000 50,000 (8) 2.7 2.6 -- 2.6 2.8 2018 2019 2020 2021 2022 1.6 1.7 June 2017 43-101 Dec 2015 43-101 5-Year Cash Flow (6) Before Taxes and Other ($1,250/oz) $80 $60 2011 2012 2013 2014 2015 2017 $40 $20 Updated Sabodala Technical Report: Annual Average $0 ($20) Production of 176Koz at AISC* of Less Than $900/oz ($40) 2018 2019 2020 2021 2022 June 2017 43-101 Dec 2015 43-101 *Refer to Appendix – Non-IFRS Performance Measures 9 Refer to Appendix – Endnotes (2) and (6)

Increasing FY2018 Production Guidance to at Least 230,000 Ounces Increased FY 2018 Production Production Guidance to (oz Au) at Least 230koz 13% Increase 14% Increase At least 233,267 230,000 129,412 114,460 65,381 57,557 H1 2017 H1 2018 FY2017 2018 Outlook Q2 2017 Q2 2018 10

Wahgnion Project Burkina Faso, West Africa 11

Solid Start to Teranga’s Second Mine – Wahgnion Wahgnion Development Project Permitted mining license: 89 km 2 Exploration licenses:+1,000 km 2 1.2Moz 2.4Moz 0.2Moz Samavogo 25km from plant 2P M&I Inferred Reserves (1) Resources (10) Resources (10) Initial LOM Nogbele Fourkoura Life of Mine Summary 5.5 years (9 years) 6km from plant Annual production (4)(5)(7) 131koz 119koz Stinger All-in sustaining costs* $807/oz $843/oz 15km from plant Total free cash flow* $302M $409M Pre-production capital** ($232M) Net cash flow $176M Proposed Processing Plant Four initial deposits at Wahgnion *Refer to Appendix – Non-IFRS Performance Measures (Nogbele, Samavogo, Fourkoura **Pre-production capital costs of $232 million excludes $12 million in construction & Stinger) located in close proximity readiness activities spent prior to major construction to proposed plant site 12 Refer to Appendix – Endnotes (1), (4), (5), (7) and (10)