PRODUCING AND EXPLORING SEPTEMBER QUARTER 2011 CONFERENCE CALL & WEBCAST 1
CAUTIONARY STATEMENT This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation, which reflects management’s expectations r egarding 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 th at certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify such forward lo oking information. Although the forward looking information contained in this presentation reflect management’s current beliefs based upon infor mation 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. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking information, including those listed in the “Risk Factors” sectio n of the prospectus of Teranga , dated November 11, 2010 (the “Prospectus”). These factors should be considered carefully and prospective investors should n ot place undue reliance on the forward looking information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga’s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly 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 in accordance with applicable securities law. Forward looking information and other information contained herein concerning mineral exploration and management’s general ex pectations concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on various factors. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information a s they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource. 2
SEPTEMBER 2011 CONFERENCE CALL & WEBCAST FOCUSED ON GROWTH Alan R. Hill Chairman & CEO FOCUSED ON: Richard Young President & CFO GROWING Bruce Van Brunt Business RESERVES Development Manager GROWING Martin Pawlitschek Regional Exploration PRODUCTION Manager FINANCIAL STRENGTH 3
OPERATING HIGHLIGHTS Gold production for the Sept. quarter: • 27,082 oz at $1,156/oz sold • Mining through lower grade area of pit • Higher costs due to higher fuel, labour and maintenance costs Gold Production for last 12 months: • 130,640 oz at $841/oz sold Est. for December Quarter: • 45,000 oz at ~ $775/oz sold Est. for 2011: • 140,000 oz at ~ $850-$875 sold Est. for 2012: • 220,000 oz at ~ $625-$675 sold 4
FINANCIAL HIGHLIGHTS Net loss for the quarter and twelve months: • $25M or $0.10/share and $28.4M or $0.14/share Cash and cash equivalents*: • $25.8M (as at Sept. 30, 2011) Revenue for the quarter: • $32.5M for the quarter • 16,615 oz delivered into forward sales contracts • 10,959 oz sold at spot • $1,174/oz – average realized price * Including short term investments and restricted cash 5
FINANCIAL HIGHLIGHTS Hedge book: • Accelerated deliveries • Outstanding balance – 181,885 oz (Sept. 30, 2011) • Expect to end year – 165,000 oz remaining • Objective: eliminate book quickly but prudently Capital Expenditures: • $24M for the quarter • $34.4M to be spent in December quarter • ~ $83M for calendar 2011 • Primarily for mill expansion / mining equipment / Mine License exploration costs 6
EXPLORATION FOCUSED ON GROWING RESERVES FOCUSED ON ADDING RESERVES Goal: • Expand Proven and Probable reserves from 1.5 Moz to 3 Moz • On Mine License alone • Over next 12-18 months • Similar or better grades than current reserve grade • Increase mine life to ~ 15 years • Run rate ~ 200,000 oz annually • Solid production base to build on 7
MINE LICENSE EXPLORATION (ML)* September quarter: Budget: $10M 33km 2 • 5 drill rigs RC and Diamond • 13,000 metres drilled in quarter • 43,000 metres drilled YTD • Added 2 additional rigs = 7 * Full drill results are posted at terangagold.com 8
MINE LICENSE EXPLORATION “THE CORRIDOR” Continuation of the main Sabodala structural trend to the north MAIN FLAT EXTENSION One of the principal gold hosts of the Sabodala deposit immediately adjacent to the current ultimate pit MASATO EXTENSION Continuation of Masato deposit 9
MINE LICENSE EXPLORATION MAIN FLAT EXTENSION • Potential for higher grades in expanded pit • Significant widths intersected* • 131m @ 3.45 g/t • 87m @ 3.11 g/t • From 4 mineralized zones • Just outside current pit • Depth ~ 300m • Open down plunge and to NW • Goal: to add 250,000 oz open pit reserves and similar amount in * Full drill results are posted at terangagold.com underground in 2012 10
MINE LICENSE EXPLORATION THE CORRIDOR and AYOUB’S • Northerly trending extension of Sabodala pit • 1,700m completed in Sept. quarter Mylonite Shear Zone • Lower grade but continuous Ayoub’s Thrust • Sabodala style alteration • Open down dip / along strike • 15m @ 1.34 g/t • 20m @ 2.1 g/t Sabodala Pit 11
MINE LICENSE EXPLORATION MASATO • Outcrops on neighbour’s property • ~ 2 kilometres from the mill • 6,100 metres drill in Sept. quarter* • Drilling confirms mineralized strike length of 500 metres / dip 200 metres • 37m @ 4.5 g/t • 44m @ 2.0 g/t • Deposit remains open in all directions • 3 drills currently drilling * Full drill results are posted at terangagold.com 12
REGIONAL EXPLORATION Budget: $25M 1,455km 2 “THE DONUT” GORA TOUROKHOTO TOUMBOUMBA 13
GORA – HIGH-GRADE QUARTZ VEIN SYSTEM • Most advanced target: moving from exploration to development • Inferred resource of 106,000 oz @ 6 g/t Au (May 2, 2011) • 22km from Sabodala mill • 800m strike length auriferous quartz vein, outcropping • Deposit open in all directions • Induced polarization (“IP”) survey has been completed over the Gora deposit and has been shown to track veins to the south. Several look alike targets identified. Trace of blind veins from RC holes Projected to surface – high correlation with IP trends. 14
GORA – HIGH-GRADE QUARTZ VEIN SYSTEM 1. Systematic evaluation drilling began in February • 40 x 40 metre grid pattern over the main open-pit resource area • Designed to evaluate the resource to a depth of 130m along the strike extent • All five rigs assigned to a program of 24 diamond holes • 10 metre drill spacing • Improve resource estimation and eventually reserve drilling 2. Step out exploration drilling • Aims to test key structural intersections located down dip where mineralized structures are expected to intersect a major intrusive body 3. Further 10,000m of RC, 5,000m DD • Test strike extent of Gora mineralized trend and nearby parallel IP anomalies • Commenced program in early October 15
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