Q3 2016 Financial & Operating Highlights TSX & ASX: TGZ Friday, October 28, 2016
Teranga Gold 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 life of mine cash flows, anticipated future interests in Joint Venture projects, the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated conversion of resources into reserves at the Banfora project, the timing of completion of an updated 2Mtpa Feasibility Study for the Banfora project, and Teranga’s estimated full year financial and operating totals, such as production. 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 Senegalese 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 Annual Information Form dated March 30, 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 October 28, 2016. 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
Richard Young President & CEO
Another Strong Quarter (1) + 50 % + 35 % + 30 % 24 % Increase in Gold Increase in Increase in All-in Sustaining Production to Throughput Cash to $57.9M (2) Costs per Ounce (1) 49,481 Ounces to a Record 933,000 Since December of $907 (compared (compared to Tonnes Milled 31, 2015 to $1,191 in Q3 32,956 in Q3 (compared to 2015) 2015) 691,000 in Q3 2015) 4 Refer to Endnotes (1) and (2) on the second last slide
Growing Multi-Jurisdictional West African Gold Company Senegal Niger Sabodala Gold Mine Gourma Mali Status: Producing Exploration JV Reserves: 2.6Moz (3) The Gambia M&I: 4.4Moz (3) Burkina Faso Banfora Project Guinea- Status: Development Bisseau Reserves: 1.0Moz (4) M&I: 3.0Moz (4) Guinea Golden Hill Exploration JV Dianra Exploration JV Benin Côte d’Ivoire Sierra Leone Togo Ghana Mahepleu Exploration JV Tiassale Exploration JV Liberia Guitry Exploration JV 5 Refer to Endnotes (3) and (4) on the second last slide
Undervalued with the Potential for a Major Rate Reset EV/2P Reserves ($/oz) Roxgold 468 Teranga’s Share Price B2Gold 442 vs. Net Present Value (NPV) (5) per Share Semafo 383 Data Source: BMO GoldPages published October 24, 2016 Endeavour 260 Golden Star 197 Asanko 197 133% Teranga 87 Alacer 62 Perseus 48 $2.77 Enterprise Value/2016E EBITDA Roxgold 22.3x $1.39 $1.19 Asanko 13.6x B2Gold 12.2x Share Price BMO NPV per Share Revalued Share Price Golden Star 7.3x 0.9x 2.0x Semafo 6.4x Current TGZ Average NPV Multiple for Medium Producers (3) NPV Trading Alacer 5.9x Multiple (3) Endeavour 5.9x 6 Refer to Endnote (5) on the second last slide Teranga 2.7x
Paul Chawrun Chief Operating Officer
Health & Safety: A Key Tenet of Responsible Mining 11M Hours Worked Without a Lost Time Injury 6 LTI 2 LTI Zero LTI Zero LTI Zero LTI 11.0M 6.5M 3.5M 3.2M 2.9M 2012 2013 2014 2015 2016 Number of lost time injuries 8
Tracking To 2016 Production Guidance Range of 200,000oz – 215,000oz (6) 172,748oz YTD PRODUCTION FOR THE 9-MONTHS ENDED SEPTEMBER 30, 2106 9 Refer to Endnote (6) on the second last slide
Record Throughput Supported by Mill Expansion Record Quarterly Mill Throughput ORE MILLED (Koz) Driven by processing a fresh/oxide blend; increased gold recovery; and 20% fully commissioned mill optimization project, which as been operating at nameplate capacity since September 35% Early Start-up of Second Crusher Circuit Mill optimization project was completed in Q3 ahead of 2,991 2,503 schedule and 12% below $20M budget 933 691 YTD 2015 YTD 2016 Q3 2015 Q3 2016 10
Double-Digit Reduction in Key Unit Costs CASH COSTS INCLUDING ROYALTIES (1) MILLING COSTS MINING COSTS ($/oz) ($/t mined) ($/t milled) 21% 31% 17% $781 $712 $617 $3.12 $16.50 $15.96 $2.59 $2.47 $11.05 Q3 2014 Q3 2015 Q3 2016 Q3 2014 Q3 2015 Q3 2016 Q3 2014 Q3 2015 Q3 2016 11 Refer to Endnote (1) on the second last slide
Unlocking Value at the Banfora Gold Project Commences drilling campaign to confirm existing reserve Seek board approval deposits and potential First gold pour File NI 43-101 and commence for reserve expansion at Banfora technical report construction 2H 1H 2H 1H 2H 1H 2H 2018 2018 2019 2017 2016 2019 2017 1 2 3 4 2Mtpa mill Update reserve models Increase reserve base Review capital and optimization studies based on drill program operating parameters Infill drilling to convert Trade off studies – grind Optimize mine plan – resources to reserves size/gravity circuit/silver maximize grade in early Drill brownfields targets recoveries years to define additional Plant design resources/reserves Power studies 12
David Mallo Vice President, Exploration 13
Banfora Gold Project: Drill Results Confirm Mineralisation Banfora Gold Project (Burkina Faso) Drilling Completed at Three of Four Deposits Nogbele, Fourkoura, and Samavogo named in Gryphon’s 2013 Feasibility Study; drilling to commence at Stinger deposit in Q4 Results in Line with Expectations Results confirm both Banfora mineralisation and its potential for reserve expansion Comprehensive Exploration Through 2017 Plan is to continue to convert resources to reserves within the 4 deposits included in the mine plan; work underway to complete updated NI 43-101 by mid-2017 14
Nogbele: The Largest of the Four Deposits Nogbele Plan Map Positive Drill Results Confirming the geological resource model and identifying extension along trend from known mineralisation Tahiti: A Newly Identified Strike Extension There is a minimum 200-metre strike extension to a broad shallow oxide zone 15
Samavogo & Fourkoura Samavogo Plan Map Fourkoura Plan Map Q3 drilling confirmed previous modeling, outlined up-dip gold Results to date provide confidence in the previous geological mineralisation at the southern end, and successfully extended a model and encouragement for near-surface strike extensions mineralised zone in the central portion of the deposit 16
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