Rbc conference may 2013

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Rbc conference may 2013

  1. 1. 1PRODUCINGANDEXPLORINGRBC CAPITAL MARKETS -AFRICAN PRECIOUS METALSCONFERENCEMAY 21, 2013
  2. 2. 2FORWARD LOOKING STATEMENTSThis presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-lookingstatements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance orachievements of Teranga, or developments in Teranga’s business or in its industry, to differ materially from the anticipated results, performance, achievements ordevelopments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possibleevents, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Teranga cautions you not to placeundue 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, 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 beyondthe control of Teranga, as well as other risks and uncertainties which are more fully described in the Company’s Annual Information Form dated March 27, 2013, andin other company filings with securities and regulatory authorities which are available at www.sedar.com. Forward-looking statements are based on managementscurrent plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-lookingstatements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this presentation should be construed aseither an offer to sell or a solicitation to buy or sell Teranga securities.This presentation is dated as of May 14, 2013. 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” andsimilar words.
  3. 3. 3Ticker symbol TGZ: TSX/ASXShares outstanding (1,2) 245.6MShare price (as at May 14, 2013) C$0.82Market capitalization (as at May 14, 2013) C$201MProfit 2012 US$79.9M($0.33/share)Cash position (3) (March 31, 2013) US$57.4MHedge balance 100% hedge freeProject finance outstanding (4) US$60MMining fleet loan facility (5) US$22.7M1 As part of the demerger Mineral Deposits Ltd. retained 40M TGZ shares and received C$50M from the IPO proceeds2 Stock options outstanding 17.1M.3 Includes cash, cash receivable and $6.4 million of bullion receivable.4 2-Year Project Finance Facility with Macquarie Bank – repaid on or before June 30, 20145 Outstanding under the new mining fleet finance loan facility with Macquarie Bank as at March 31, 2013FOCUSEDON GROWTHTHROUGH:GROWINGRESERVESGROWINGPRODUCTIONFINANCIALSTRENGTHCAPITALIZATION SUMMARY
  4. 4. 4FOCUSEDON GROWTHTHROUGH:GROWINGRESERVESGROWINGPRODUCTIONFINANCIALSTRENGTHRESULTS - Q1 2013Production - 68,301oz. - 63% higher than Q1 2012due to higher grade & higher throughputProfit - $45.0M or $0.18/sh - compared to a lossof $2.1M in Q1 2012Op. Cash Flow - $23.6M - compared to $35.9M in Q12012, mainly due to delivery of 45koz.into hedgeCash Costs - $535/oz. - 18% lower than Q1 2012while gross costs increased by 14% dueto higher mining and processing ratesCash Balance(1) - $57.4M – 27% higher than FYE 2012Gold Hedge - 100% hedge free as of April 15th1 Includes cash, cash receivable and $6.4 million of bullion receivable as at March 31, 2013.
  5. 5. 5OUR VISIONTo become a preeminent gold producer in West Africa while settingthe benchmark for responsible mining in SenegalPhase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000 oz.of annual gold production leveraging off existing infrastructure• 2011 production of 131,461oz.• 2012 production of 214,310oz. at cash costs of $627/oz.• 2013 forecast production of 190,000 – 210,000oz. at cash costs of $650-$700/oz.• 2014 forecast production of 200,00 – 250,000oz. pending the timing of Gora productionPhase 2: Increase annual gold production to 400,000 to 500,000 oz. with millexpansion as reserves increase
  6. 6. 6SABODALA IS SENEGAL’S ONLYLARGE-SCALE GOLD MINEPopulation of ~ 12.8MDemocratic Government• Smooth process and power transition in 2012 elections• Peaceful democracy since independence from France in1960• Use of the eight-country West African CFA France currencyfully guaranteed by the French treasury and pegged to theEuro (WAEMU)• Sabodala is the only large-scale gold mine in SenegalGovernment has vested interest in Sabodala’s success given:• 10% free-carried interest• 5% gross production royalty effective Jan. 1, 2013• 25% income tax (after tax holiday expires in 2015)• Employment and regional development opportunities
  7. 7. 7NEW AGREEMENT PROVIDES FORLONG-TERM PARTNERSHIP THROUGH:• Price and formula to acquire Government’s additional optionon satellite deposits and to incorporate these into the existingML and fiscal regime• Supporting drilling of the Niakafiri deposit on the ML• Extending the ML by five years to 2022 and five keyexploration licences by 18 months• Ensuring full access to exploration targets currently occupiedby artisanal miners• Settling all outstanding tax assessments• Settling the Special Contribution Tax of 5% through anincrease in royalties to 5% and accelerated dividend payments
  8. 8. 8TERANGA IS MINING RESPONSIBLYAND SHARING THE BENEFITSCorporate Social Responsibility is fundamental to the success ofour business• Health, safety, education and sustainability are all priorities• Developing schools, health clinics, and improving access topotable water• Have engaged a renowned Canadian group to assist in puttingtogether a comprehensive Regional Development Plan inpartnership with the local, regional, and national government• Committed to improving the livelihoods of those in thecommunities in which we operateA key component of our vision is to set the benchmark forresponsible mining in Senegal
  9. 9. 9SABODALA GOLD OPERATION ISPRODUCING CONSISTENTLYGold Production Since 2009• First gold pour in March ‘09 with over $500M invested to dateWell Developed Infrastructure• Located 650 km east of the capital Dakar and ~100 km northof the town Kedougou – paved road within 56 km of mine site• 36 MW heavy fuel oil power plant located on siteCompleted Mill Expansion• New ball mill and downstream plant, secondary crusher andnew stockpile/reclaim facility commissioned• Expands annual production base to ~200,000 oz.• Mill capacity increased to ~3.5Mtpa of fresh (hard) ore or~6Mtpa of oxide (soft) oreModest Incremental Sustaining Capital Going Forward• US$125M – $150M LOM• Includes Gora, community relocations, further mobileequipment expenditure, pit delineation and additionaltailings facilities
  10. 10. 101 Updated as per Q1 2013 revised guidance on Page 21.2 Includes cash, cash equivalents and bullion receivable: $5.3M FYE 2012 and $17.1M at FYE 2011.3 Hedge book extinguished on April 15, 2013.2013 - REDUCTION IN CAPEX ANDEXPLORATION EXPENDITURESUnits2011Actuals2012Actuals2013 GuidanceRanges (1)% ChangeMine Site Capex ($ millions) 62.1 52.9 20 -62%Capitalized ReserveDevelopment (ML)($ millions) 14.4 26.1 5 -81%Exploration Expense(RLP)($ millions) 31.7 16.7 3 -82%Development of Gora ($ millions) - 4.3 10 +133%Administration Expense ($ millions) 13.4 17.9 13 -27%Profit for the Period ($ millions) -16.0 79.9 - -Cash Balance at End ofPeriod (2)($ millions) 24.6 45.0 - -Gold HedgeOutstanding (3)(koz.) 174.5 59.8 0 -100%
  11. 11. 11Economics• Capital cost est. $45M - $50M• Est. total cash cost to average $675 - $700/oz.• NPV (5%) at $1500/oz. of $105 million• IRR 69%Open Pit• 26km from mill• Technical Study and ESIA complete –permitting underway• M&I of 374,000 oz. at 5.0gpt• Proven & Probable reserves of 285,000oz. at4.2gpt. (2.1M tonnes of ore)• Estimated 4-year mine life• Stripping ratio of 19:1Timing• Development to start in Q4 2013 with majorityof capital expenditure in 2014 in order tosupport 2013 free cash flow• Estimated production start in H1 2014GORA – OUR MOST ADVANCEDSATELLITE DEPOSITSource – Teranga Gold Corporation: Typical section of Gora looking South West, 2012.
  12. 12. 12-50,000100,000150,000200,000250,000300,0002011 2012 2013 2014 2015Production Profile (000oz.) (1)2013 Guidance Range Gora Production ML ProductionFOCUSED ON GROWINGPRODUCTION AND CASH MARGINS1 Assumes increased production from regional exploration success2 Cash costs of $627/oz. excluding deferred stripping adjustment.• 2012 Production Results: 214,310oz. at cash costs of $556/oz. (2)• 2013 Production Estimated: 190,000 – 210,000oz. at cash costs of $650 - 700/oz.• 100% hedge free as of April 15, 2013• Margin expansion now that hedges areextinguished• Full participation in higher spot prices
  13. 13. 13FOCUSED ON GROWING RESERVES1 See pages 26/272 M+I Resources are inclusive of reserves3 Includes Sabodala, Niakafiri, Niakafiri West, Soukhoto, Diadiako, Majiva, Masato and Gora1.592.871.670.000.501.001.502.002.503.003.50Proven andProbable ReservesMeasured andIndicatedResourcesInferred ResourcesMoz.Reserves and Resources (1,2,3)December 31, 2012
  14. 14. 142013 Exploration Program (1)Mine Licence Exploration(ML) $5MRegional Exploration (RLP) $3MTOTAL $8M2012 Exploration Program (2)Mine Licence Exploration $26M104,400m (RC/DD)Regional Exploration(3) $20M62,500 RAB 42,300 RC 2,400 DDTOTAL $46MFOCUSED ON GROWING RESERVES1 Additional funding allocated on a priority basis for prospects with clear potential for reserve definition2 Full drill results are posted at terangagold.com3 Includes ~$3M for Gora exploration
  15. 15. 15Mine Licence Exploration (ML) Regional Land Package (RLP)33km2 1,200km2MINE LICENSE MAKES UP ~3% OFTERANGA’S TOTAL LAND PACKAGE
  16. 16. 16SABODALA PIT –MAIN FLAT EXTENSION /LOWER FLAT ZONEDINKOKHONO• Potential to expand gold inventory onML with the objective of increasingmine life to the year 2020/25ML EXPLORATION $5 MILLION33km2NIAKAFIRI & NIAKAFIRIWESTSOUKHOTO
  17. 17. 17NINYENKOSORETO /DIABOUGOU1,200km235km from MillRLP EXPLORATION $3 MILLIONGOUMBOU GAMBATOUROKHOTO(Main and Marougou)
  18. 18. 18FOCUS IS ON CONTINUED GROWTHFocused on Growing Reserves• To secure a reserve life to year 2020/25• Growth through exploration• Growth through regional opportunities (JV’s, acquisitions)Focused on Growing Production• Phase 1: 250,000 – 350,000oz. annual production byleveraging existing mill and land package• Phase 2: 400,000 – 500,000oz. annual production, willrequire another mill expansionFocused on Building Financial Strength• Hedge book eliminated• Maximizing cash margins• Producing free cash flow• Increasing cash balance• Using free cash flow to self-fund growth strategy• Focusing on the ounces that provide the best returns• Increasing earnings and cash flow per share (minimizingdilution)
  19. 19. 19SUMMARYYear To Date:• Hedge Book Eliminated• “Agreement In Principle” signed with Government: Pavingthe way for deposits not currently on our ML to go throughour mill under our fiscal regime• $50M Equipment Facility completed• Strong Q1: Operationally - reaffirmed 2013 guidanceFinancially - $57.4M cash(1) at quarter end• Currently trading at a P/E ratio of around 3Going Forward:• Generating free cash flow in 2013 @ $1400/oz Au• No expectation to issue equity other than for M&A1 Includes cash, cash receivable and $6.4 million of bullion receivable as at March 31, 2013.
  20. 20. 20APPENDICES
  21. 21. 212013 DISCRETIONARY SPEND REDUCEDTO GENERATE FREE CASH FLOWRevised Guidance Original GuidanceOperating resultsProduction (oz) 190,000 - 210,000 190,000 - 210,000Total cash cost (incl. royalties)1,2($/oz sold) 650 – 700 650 – 700Exploration and evaluation expense ($ millions) 3.0 10.0 – 15.0Administration expenses ($ millions) 13.0 15.0 – 20.0Capital expenditures ($ millions)Mine site 20.0 20.0 - 25.0Capitalized reserve development 5.0 5.0 - 10.0Gora development costsMobile equipment 5.0 30.0 - 35.0Site development 5.0 15.0 - 20.0Total Gora development costs 10.0 45.0 - 50.0Capitalized deferred stripping235.0 35.0 - 40.0Total capital expenditures 70.0 105.0 - 125.02Includes the impact of adopting IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine.For the year ended December 31, 20131Total cash cost per ounce is a non-IFRS financial measures with standard meaning under IFRS.
  22. 22. 22GOVERNMENT OPTION FORMULA - GORAInitial Payment Example GoraReserves per feasibility study (oz.) 285,000Recovery rate 95%Recovered reserves (oz.) 270,750Less government royalties 13,538Recovered ounces to shareholders (oz.) 257,213Average realized gold price last 12 months $ 1,650Reserve payment percentage 1.00%Reserve payment dollars per ounce $ 16.50Payment due on production maximum $10 million $ 4,244,006Additional payments required when:1. Increase in the gold price2. Increase in production3. Exceeds $10 million cap
  23. 23. 23WHAT IF PRODUCTION/PRICE CHANGES?No Change in Production/Gold PriceYear 1 Year 2 Year 3 Year 4Cumulative production (oz.) 67,500 135,000 202,500 270,750Less government royalties 3,375 6,750 10,125 13,538Cumulative production to shareholders 64,125 128,250 192,375 257,213Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650Reserve payment percentage 1.00% 1.00% 1.00% 1.00%Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50Cumulative payment due $ 1,058,063 $ 2,116,125 $ 3,174,188 $ 4,244,006Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006Payment due $ - $ - $ - $ -* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.Change Gold PriceYear 1 Year 2 Year 3 Year 4Cumulative production (oz.) 67,500 135,000 202,500 270,750Less government royalties 3,375 6,750 10,125 13,538Cumulative production to shareholders 64,125 128,250 192,375 257,213Weighted average realized gold price ($/oz.) - increase gold price $ 1,650 $ 1,700 $ 1,750 $ 1,800Reserve payment percentage 1.00% 1.00% 1.00% 1.00%Reserve payment dollars per ounce $ 16.50 $ 17.00 $ 17.50 $ 18.00Cumulative payment due $ 1,058,063 $ 2,180,250 $ 3,366,563 $ 4,629,825Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006Payment due $ - $ - $ - $ 385,819* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.Change in ProductionYear 1 Year 2 Year 3 Year 4Cumulative production (oz.) - increase in production 75,000 150,000 225,000 300,000Less government royalties 3,750 7,500 11,250 15,000Cumulative production to shareholders 71,250 142,500 213,750 285,000Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650Reserve payment percentage 1.00% 1.00% 1.00% 1.00%Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50Cumulative payment due $ 1,175,625 $ 2,351,250 $ 3,526,875 $ 4,702,500Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006Payment due $ - $ - $ - $ 458,494* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
  24. 24. 24WHAT IF WE EXCEED THE $10M CAP?Exceeds $10 million over time with gold price constant Still under cap First pay over cap Subsequent pay Subsequent payCumulative production (oz.) 600,000 700,000 800,000 950,000Less government royalties 30,000 35,000 40,000 47,500Cumulative production to shareholders (oz.) 570,000 665,000 760,000 902,500Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650Reserve payment percentage 1.00% 1.00% 1.00% 1.00%Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50Cumulative payment due $ 9,405,000 $ 10,972,500 $ 12,540,000 $ 14,891,250Initial Payment / Subsequent Payments $ 10,000,000 $ 10,000,000 $ 10,972,500 $ 12,540,000Payment due $ - $ 972,500 $ 1,567,500 $ 2,351,250* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.Exceeds $10 million over time gold price increases Still under cap First pay over cap Subsequent pay Subsequent payCumulative production (oz.) 600,000 700,000 800,000 950,000Less government royalties 30,000 35,000 40,000 47,500Cumulative production to shareholders (oz.) 570,000 665,000 760,000 902,500Weighted average realized gold price ($/oz.) $ 1,650 $ 1,700 $ 1,750 $ 1,800Reserve payment percentage 1.00% 1.00% 1.00% 1.00%Reserve payment dollars per ounce $ 16.50 $ 17.00 $ 17.50 $ 18.00Cumulative payment due $ 9,405,000 $ 11,305,000 $ 13,300,000 $ 16,245,000Initial Payment / Subsequent Payments $ 10,000,000 $ 10,000,000 $ 11,305,000 $ 13,300,000Payment due $ - $ 1,305,000 $ 1,995,000 $ 2,945,000* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
  25. 25. 25QUARTERLY OPERATING STATISTICSMar-13 Dec-12 Sep-12 Jun-12 Mar-12Quarter Quarter Quarter Quarter QuarterOre mined (000t) 1,312 2,038 655 2,105 1,117Waste mined (000t) 7,536 5,274 6,242 5,130 6,316Total mined (000t) 8,848 7,312 6,897 7,235 7,433Grade Mined (g/t) 1.87 2.04 1.92 2.25 1.38Ounces Mined (oz) 78,929 133,549 40,516 152,603 49,516Strip ratio waste/ore 5.7 2.6 9.5 2.4 5.7Ore processed (000t) 696 725 650 491 573Head grade (g/t) 3.31 3.40 3.11 3.22 2.52Gold recovery (%) 92% 91% 85% 90% 90%Gold produced (1) (oz) 68,301 71,804 55,107 45,495 41,904Gold sold (oz) 69,667 71,604 62,439 38,503 35,268Average price received $/oz 1,090 1,296 1,290 1,608 1,712Total cash costs per ounce sold2(includingRoyalties) $/oz 535 532 509 592 6501 Gold produced includes change in gold in circuit inventory plus gold recovered during the period.2 Total cash costs per ounce sold for 2012 were restated to comply with the Company’s adoption of IFRIC 20 - Stripping Costs in theProduction Phase of a Surface Mine, in line with the Company’s accounting policies and industry standards.
  26. 26. 26RESERVES & RESOURCES (1,2)DepositProven Probable Proven and ProbableTonnesGrade AuTonnesGrade AuTonnesGrade Au(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)Sabodala 6.55 1.5 0.315 11.07 1.24 0.443 17.62 1.34 0.758Sutuba - - - 0.37 1.40 0.017 0.37 1.40 0.017Niakafiri 0.23 1.69 0.013 7.58 1.12 0.274 7.81 1.14 0.287Gora 0.57 4.07 0.074 1.53 4.27 0.21 2.1 4.22 0.284Stockpiles 7.32 1.02 0.24 - - - 7.32 1.02 0.24Total 14.67 1.36 0.642 20.56 1.43 0.944 35.23 1.40 1.586• Reserves remain similar to that of 2011 net of production• Focused on growing our reserves and are confident that we willadd reserves on the ML• M&I resources increased 34% to 2.9Moz.1 Please see page 29 for Competent Persons Statement relating to this reserves estimate.2 Based on assays received as of August 2012.DepositMeasured IndicatedMeasured andIndicatedTonnes Grade AuTonnesGradeAuTonnesGradeAu(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)Sabodala 28.06 1.24 1.12 31.47 0.96 0.97 59.53 1.09 2.09Sutuba - - - 0.50 1.27 0.02 0.50 1.27 0.02Niakafiri 0.30 1.74 0.02 10.50 1.10 0.37 10.70 1.12 0.39Gora 0.49 5.27 0.08 1.84 4.93 0.29 2.32 5.00 0.37Total 28.85 1.32 1.22 44.31 1.16 1.65 73.05 1.22 2.87
  27. 27. 27AreaInferredTonnes Grade Au(Mt) g/t (Moz)Sabodala 12.36 0.87 0.35Niakifiri 7.20 0.88 0.21Niakifiri West 7.10 0.82 0.19Soukhoto 0.60 1.32 0.02Gora 0.21 3.38 0.02Diadiako 2.90 1.27 0.12Majiva 2.60 0.64 0.05Masato 19.18 1.15 0.71Total 52.15 1.00 1.67RESERVES & RESOURCES (1,2)1 Please see page 29 for Competent Persons Statement relating to this reserves estimate.2 Based on assays received as of August 2012.
  28. 28. 28Alan R. HillExecutive Chairman• Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine developmentas Executive VP of Barrick Gold• Currently a Director of Gold Fields• Former President and CEO of Gabriel Resources (2005 – 2009) and non-Executive Chairman of Alamos Gold(2004 – 2007)Richard S. YoungPresident & CEO• Over 10 years experience in mining finance, development, corporate development, and investor relations withBarrick Gold• Former VP and CFO of Gabriel Resources (2005 – 2010)Mark EnglishVP, Sabodala Operations• Over 24 years experience in the gold mining industry• Previously worked for several companies in Australia, East and West Africa being involved in operating mines anddevelopment, inclusive of greenfield start-ups• Joined Mineral Deposits Ltd. in June 2006Paul ChawrunVP, Technical Services• Mining Engineer and geologist with over 24 years experience• Former EVP Corporate Development for Chieftain Metals• Former Director, Technical Services Detour GoldNavin DyalVP & CFO• Over 13 years in finance, most recently 7 years with Barrick Gold (2005 - 2012)• Former Director of Finance, Global Copper Business Unit – Barrick Gold• Chartered Accountant – Four years at major public accounting firmDavid SavarieVP, General Counsel & CorporateSecretary• Over 10 years experience in the legal industry• Former Deputy General Counsel and Corporate Secretary of Gabriel Resources• Previously in private practice at Miller Thomson LLPKathy SiposVP, Investor & Stakeholder Relations• 10 years experience in Corporate Communications and Investor Relations with Barrick Gold (1996 – 2006)• Former VP of Corporate Communications and Investor Relations of Gabriel Resources (2006 – 2009)Macoumba DiopGeneral Manager & GovernmentRelations Manager• Geological Engineer, Master of Science in Finance with over 12 years experience in the mining industry• Previously spent 11 years in a consulting business and mineral project marketing and development• Joined SGO in July 2011.MANAGEMENT
  29. 29. 29COMPETENT PERSONS STATEMENTThe technical information contained in this presentation relating to the mineral reserve estimates within the Sabodala, Sutuba, Niakafiri and Gora deposits and theStockpiles, is based on information compiled by Julia Martin, P.Eng., MAusIMM (CP), a full time employee with AMC Mining Consultants (Canada) Ltd., is independent ofTeranga, is a “qualified person” as defined in NI 43-101 and a “competent person” as defined in the 2004 Edition of the “Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves”. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and tothe activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves”. Ms Martin has reviewed and accepts responsibility for the reserve estimates disclosed above. Ms Martin has consented to the inclusion inthe report of the matters based on her information in the form and context in which it appears in this presentation.The technical information contained in this presentation relating to the mineral resources is based on information compiled by Ms. Patti Nakai-Lajoie, who is a Member ofthe Association of Professional Geoscientists of Ontario. Ms. Patti Nakai-Lajoie is full time employee of Teranga and is not “independent” within the meaning of NationalInstrument 43-101. Ms. Patti Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves”. Ms. Patti Nakai-Lajoie is a “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects and sheconsents to the inclusion in the report of the matters based on her information in the form and context in which it appears in this presentation.The technical information contained in this presentation relating to exploration results is based on information compiled by Mr. Martin Pawlitschek, who is a Member of theAustralian Institute of Geoscientists. Mr. Pawlitschek is a consultant of Teranga and is not “independent” within the meaning of National Instrument 43-101. Mr.Pawlitschek has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr.Pawlitschek is a “Qualified Person” in accordance with NI 43-101 and he consents to the inclusion in the report of the matters based on his information in the form andcontext in which it appears in this presentation.

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