1. TSX:TGZ / OTCQX:TGCDF
Investor Presentation
Cape Town – February 2018
The Next
Multi-Asset Mid-Tier
West African Gold Producer
2. Forward-Looking Statements
2
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”, “intended to”, “objective 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, net present value, anticipated future cash
flows, anticipated construction readiness activities for the Company’s Wahgnion gold project in Burkina Faso as well as the anticipated completion of construction of the Wahgnion
project - including the first gold pour, the anticipated discovery of reserves at the Wahgnion project, and Teranga’s estimated full year financial and operating totals, as well as
anticipated 2017 and 2018 operating results. 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 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 29, 2017, 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 February 5, 2018 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.
3. 3
Deep Value: A Re-Rating Opportunity
(C$)
Gold Price per Ounce Assumption
Cash balance as at December 31, 2017
Wahgnion Project NPV5% based on 2P
Sabodala NPV5% based on 2P
$5.11
$1.41
$1.02
$1,300
$3.38
TGZ Current
Share Price
(closing price
Jan 31, 2018)
$7.54
NPV
Per Share
based on cash &
2P reserves
Excludes potential value from:
• Wahgnion infill drill program
• Golden Hill
• Afema and Côte d’Ivoire assets
4. EV/2018E EBITDA
Potential for a Major Rate Reset
4
Teranga’s Share Price
vs. Net Present Value* (NPV)(12) per Share
223%
*Refer to Appendix – Non-IFRS Performance Measures
Refer to Appendix – Endnote (12)
C$3.49
C$6.48
C$7.78
Share Price BMO NPV per Share
(Spot)
Revalued Share Price
0.55x
Current TGZ
NPV Trading
Multiple(12)
1.2x
Average NPV Multiple
for Medium Producers(12)
EV/2P Reserves ($/oz)
Data Source: BMO GoldPages published January 29, 2018
58.7
66.8
87.3
98.8
250.6
290.9
348.1
473.2
531.9
Asanko
Perseus
Teranga
Alacer
Golden Star
Semafo
Endeavour
Roxgold
B2Gold
3.5
3.6
3.9
3.9
4.4
5.2
6.6
6.8
30
Asanko
Teranga
Perseus
Golden Star
Roxgold
Semafo
B2Gold
Endeavour
Alacer
5. 5
Share Price Performance (TSX: TGZ)
(Closing price on December 12, 2017 – January 31, 2018)
Capital Structure and Recent Share Price Performance
Source: IR Insight on January 31, 2018
0%
10%
20%
30%
40%
50%
TGZ-TSX
GDXJ
Gold Price
Capital Structure (at December 31, 2017 unless otherwise noted)
Common shares outstanding 107.3M
Stock options outstanding 4.5M
Fully diluted 111.8M
Number of shares owned by insiders 23.8M
Market capitalization (January 31, 2018) C$363M/ US$295M
Cash / net cash $88M / $73M
Top Shareholders % of O/S As at Dec 31, 2017
1 Tablo Corporation 21.5% 23,128,900
2 Van Eck Associates Corporation 6.8% 7,272,264
3 Heartland Advisors 4.5% 4,800,000
4 Ruffer LLP 4.3% 4,607,243
5 Oppenheimer Funds 3.5% 3,710,828
6 Dimensional Fund Advisors 2.9% 3,068,425
7 Franklin Advisers 2.4% 2,582,200
8 Fidelity Management & Research 1.6% 1,747,740
9 Universal-Investment Gesellschaft 1.6% 1,735,000
10 Colonial First State Global AM 1.6% 1,725,708
+40%
+11%
+9%
ASX Delisting
Completed Compulsory Sale
Facility before markets open on
December 13 – stock price hit
low of $2.30 (compared to $2.42
closing price on December 12)
6. Senegal
Côte d’Ivoire
Burkina Faso
Mali
Guinea
Guinea-
Bisseau
The Gambia
Ghana
Benin
Niger
Sierra
Leone
Liberia
Togo
Sabodala Gold Mine
1.4Moz production
since IPO in late 2010
6
Wahgnion Development Project
Expect to close financing and
commence construction in Q2 2018
Golden Hill
Exploration JV
Gourma
Exploration JV
Guitry
Dianra
Mahepleu
Tiassale
Sangaredougou
Building The Next Multi-Asset Mid-Tier West African Gold Producer
Teranga has nearly
4.0 million ounces of
gold reserves from
its Sabodala Gold Mine
and its Wahgnion
Development Project(1)(2)
Afema
Refer to Appendix – Endnotes (1) and (2)
7. Garnering International Recognition for Corporate Social Responsibility
PDAC 2017 Environmental
& Social Responsibility Award
United Nations Global Compact
Network Canada Sustainability Award
Corporate Knights Future 40 Responsible
Corporate Leaders in Canada
Capital Finance International: Best ESG-Responsible
Mining Management West Africa Award
7
8. Extensive Exploration Program in 2018
• Golden Hill (Burkina Faso)
• Guitry (Côte d’Ivoire)
• Afema (Côte d’Ivoire)
Development of Second Mine
• Project debt financing expected to close in Q2
• Plant construction expected to commence in Q2
Production at Largest Gold Mine in Senegal
• Achieved record production of 233,267 ounces in 2017
• Issued 2018 production guidance of 210,000 – 225,000 ounces(3)
• Generating free cash flow from Sabodala*
Checking Off the Boxes
Refer to Appendix – Endnote (3)
*Refer to Appendix – Non-IFRS Performance Measures
8
9. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Sabodala Banfora
~$100M annual free cash flow* (11)
Significantly Increasing Production and Improving Free Cash Flow
9
*Refer to Appendix – Non-IFRS Performance Measures
Refer to Appendix – Endnotes (3), (4), (5), (7) and (11)
Teranga Consolidated Production Profile (koz)(3),(4),(7)
350Koz
~$70M annual free cash flow*(5)
2020 – 2022
Sabodala + Wahgnion
~350Koz annual
production
Opportunities to maintain
production and free cash flow
through resource conversion &
discoveries at Sabodala &
Wahgnion
10. Production
Construction
Feasibility Study
Concept Study (Initial Resource)
Advanced Exploration
Advanced Exploration 2
Advanced Exploration 3
Robust Exploration Pipeline in Three Mining-Friendly Jurisdictions
10Senegal Côte d’Ivoire Burkina Faso
Sabodala
Niakafiri Main
Maki Medina
Niakafiri SE
Guitry
Dianra Djinta
Tiassale
Goumbati West/Kobokoto
Golouma North
Marougou Main
Mamasato Kinemba
Maleko
Wahgnion
Ouahiri
Kafina
Samavogo North
Hillside
Bassangoro
Muddi Bagu Sud
Raul
Petite Colline
Kassengara
Weah
Korindougou
Fembefasso
Mahepleu
Sangaredougou
Niakafiri West
Ma
Peksou
Jackhammer Hill
Nahiri
Bongori
Foutouri
Tambiga Hill
Maragou South
Konatvogo
Afema 1
Afema 2
Afema 3
11. Prudent Approach to Capital Allocation Drives Solid Financial Position
11
$88 Million
Estimated cash balance
as at December 31, 2017
+$90 Million(6)
Estimated cash flow from
Sabodala 2018-2019
$150 Million
$150M project debt facility
expected to close in Q2 2018
Solid Financial
Position
to fund $232 million
pre-production capital cost
of building second mine
(Wahgnion)
Refer to Appendix – Endnote (6)
12. 2018 Catalysts
12
Regular exploration updates starting in Q1
Maiden resource
Closing of project financing
Commence mill construction
Reserve update
Update NI 43-101
Project updates from Guitry and Afema
WahgnionGolden Hill
Côte d’Ivoire
14. 14
Exploration Prospects
Mineral Resources
Masato Style Bulk
Tonnage Gold Trend
Golouma Style High-
Grade Gold Trend
Mining Concession
Exploration Permits
Previous Mine License
Sabodala
Mill
Sabodala Mine License &
Regional Land Package (Senegal)
Mine License Reserve Development – Niakafiri
• Focused on resource definition and converting resources
Regional Land Package
• Property-wide bulk leach extractable gold (BLEG) sampling
program completed to identify new exploration targets
2.7 Million Ounces in Proven & Probable Reserves
• 4.4 million ounces in measured and indicated resources(9)
• 13-year mine life(9)
Largest Gold Mine in Mining-Friendly Senegal
Refer to Appendix – Endnotes (2) and (9)
Mali
Niakafiri
Goumbati
West
Life of Mine Summary(2)
5 years
(2018-2022)
13 years
(2018-2030)
Annual production 213koz 176koz
All-in sustaining costs $885/oz $893/oz
Total free cash flow $230M $556M
15. (8)
Proven and Probable Reserves(2) (Moz)
Replacing Reserves & Increasing Production and Cash Flow
1.7 1.6
2.8 2.6 2.6 2.7
2011 2012 2013 2014 2015 2017
Updated Sabodala Technical Report: Annual Average
Production of 176Koz at AISC* of Less Than $900/oz
Maki
Medina
15*Refer to Appendix – Non-IFRS Performance Measures
Refer to Appendix – Endnote (2)
($40)
($20)
$0
$20
$40
$60
$80
2018 2019 2020 2021 2022
5-Year Cash Flow Before Taxes and Other
($1,250/oz)
June 2017 43-101 Dec 2015 43-101
--
50,000
100,000
150,000
200,000
250,000
2018 2019 2020 2021 2022
5-Year Production Profile (oz)
June 2017 43-101 Dec 2015 43-101
16. Opportunities to Maintain Sabodala’s Annual Production of +200Koz Beyond 2022
Four Significant Opportunities for Continued Growth at Niakafiri
1. Restricted areas (sacred sites, cemetery, schools)
2. Extending the Niakafiri West trend northwards
3. Exploring a potential northwest trend under Sabodala village
4. Extending the Niakafiri Main zone at depth
Underground
• Current reserves of 346Koz within a resource (MII) base of 1.3Moz
• Extend drilling as we complete open pit mining for higher grade and
thicker zones for improved mining methods (long-hole vs cut & fill)
• Current operating scenario is for an owner mine fleet
2
3
4
1
1
1Niakafiri (Sabodala – Senegal)
16
18. Mali
Ghana
Benin
Niger
Togo
Burkina Faso
Côte
d’Ivoire
Tongon
Bobo-Dioulasso
18
Overview of Permitted Wahgnion (Formerly Banfora) Project
Ideally Situated on a Prolific Gold Belt
• Permitted mining license that covers 89 km2
• Exploration licenses covering +1,000 km2
Initial Feasibility Study
• Includes only 4 deposits: Nogbele, Stinger, Samavogo and Fourkoura
• Proven and probable reserves of 1.2Moz
• Measured and indicated resources of 1.8Moz
• Inferred resources of 0.7Moz
Senegal
Samavogo
Stinger
Wahgnion Project
Nogbele
Fourkoura
Wahgnion
Proposed Plant Site
Life of Mine Summary(2) 5.5 years LOM (9 years)
Annual production 131koz 119koz
All-in sustaining costs $807/oz $843/oz
Total free cash flow $302M $409M
Pre-production capital ($232M)
Net cash flow $176M
19. Strategic Pillar of Teranga’s Growth Plan
19
Wahgnion Infill Drill Program: Aiming for a Conversion
Rate of 25%-50% of Inferred
• 75,000-metre infill drill program is targeting inferred
resources located near to the current reserve pits
• Objective is to increase drill hole density within the
existing inferred resources
• Given demonstrated continuity of mineralization of the
inferred resources, 25%-50% of inferred resources is
targeted to be converted to indicated
Near-Term Upside Expected to Improve Economics
• Reserves update expected in H1 2018
Target Area Along Strike
Target Area at Depth
$1,450 Resource Pit Limit
$1,200
Reserves Pit Limit
20. Kafina West
Raul
Hillside
20
Drill-Ready Targets Underlie Multi-Year
Regional Exploration Program
Samavogo
Nogbele
Fourkoura
Stinger
Bagu Sud
Korindougou
Ouahiri
Sud
Prospective Wahgnion Land Package
• ~12 targets identified
• Targets are within trucking distance of proposed plant site
Targets Have Potential to Become Resources
• Kafina West: 1,000 metre NE-trending soil and auger anomaly.
Drill results of 8 m @ 2.2 g/t Au and 11 m @ 3.2 g/t Au
• Konatvogo: 2,000 metre NW-trending soil and auger anomaly
between the Fourkoura and Nogbele deposits. Up to 21.6 g/t
Au from altered shear-hosted quartz vein outcrops
• Bassongoro: 1,500 metre NNE-trending soil and auger
anomaly (up to 15g/t Au). Intersection of regional Nianka and
Fourkoura structures undrilled
Raul
Proposed Plant Site
Kondandougoug
Konatvogo
Bazogo
Bassongoro
Samavogo North
MuddhiPetit Colline
Reserve Deposits
Exploration Targets
22. 22
Uniquely Positioned at Golden Hill
Situated in the Heart of the Houndé Belt in Burkina Faso
• 468 km2 situated ~200km NE of Wahgnion gold project
• One of the most prospective gold belts in the world today
• On the Houndé belt in close proximity and along strike to other large
deposits
Exploring Drill-Ready Targets
• Previous exploration work defined high quality prospects
Joint Venture (51%, earning 80%)
• Joint venture partner is Boss Resources (ASX:BOE)
• Teranga has an earn-in agreement with Boss pursuant to which Teranga,
as the operator, can earn an 80% interest in the JV upon delivery of a
feasibility study and the payment of AUD2.5 million
23. 23
Golden Hill: High-Grade, Big Potential
Five Prospects Within ~5 km Radius of Central Point
• In just one year, there have been three discoveries at
Golden Hill
• To date Golden Hill has produced a series of high-grade,
near-surface drill results at the first five prospects:
– Ma
– Jackhammer Hill
– Peksou
– C-Zone
– Nahiri
• The close proximity of these targets and prospects lends
itself to a central mill/multi-deposit operation similar to
Sabodala and Wahgnion
For full details on Golden Hill, please visit www.terangagold.com
24. 2424
Ma Prospect – Drill PlanMa Prospect
• 2.4 kilometre long mineralized system
• Comprises multiple mineralized zones within a broad
regional structural complex
• Ma prospect remains open to the east and the west and
to depth
• Expect to complete an initial resource by end of 2018
Recent Drilling Highlights at Ma
• High-grade results confirm continuity of grade and width
from surface to depths now approaching 125 metres
• 15 m @ 4.22 g/t Au including 7 m @ 7.89 g/t Au
including 2 m @ 17.6 g/t Au (GHDD-067)
• 16 m @ 3.20 g/t Au including 1 m @ 15.7 g/t Au,
and 3 m @ 6.14 g/t Au (GHDD-078)
• 6 m @ 5.79 g/t Au and 17 m @ 3.45 g/t Au including
6 m @ 6.32 g/t Au (GHDD-080)
Ma Prospect: The Most Advanced Prospect at Golden Hill
25. 25
Ma Prospect – Representative Drill Section
Multiple Mineralized Zones Within a Broad Regional Structural Complex at Ma Prospect
Ma Prospect – Representative Drill Section
25
These two sections outline the continuity of gold mineralization identified by drilling along the eastern half of Ma Main and also demonstrate the extension of the mineralization
beyond the mafic volcanic host and into the associated intrusive units (section A-A’). Mineralization remains open to further expansion at depth.
26. 26
26
Ma Prospect – Representative Drill SectionMa Prospect – Representative Drill Section
Rapidly Progressing Towards an Initial Resource for Golden Hill in 2018
These two sections outline the continuity of gold mineralization identified by drilling along the western half of Ma Main and demonstrates the presence of multiple mineralized zones
including the BZ-1 and BZ-2 mineralized shear zones in section G-G’. Mineralization remains open to further expansion at depth.
27. Golden Hill: Hidden Potential at Jackhammer Hill Prospect
Hidden Potential at Never Previously Drilled Target
• 1,000 metre long auger, soil and rock chip anomaly
• Will continue aggressive drill program throughout 2018
• Objective is to complete an initial resource by end of 2018
Jackhammer Hill Prospect Highlights
• 15 m @ 5.72 g/t Au including 4 m @ 16.37 g/t Au including 1
m @ 42.1 g/t Au and 9 m @ 4.13 g/t Au including 3 m @
10.63 g/t Au including 1 m @ 25.3 g/t Au (GHDD-104)
• Core drilling results at Jackhammer Hill included 110 grams
per tonne of gold over 14 metres
– 14 m @ 110.6 g/t Au including 5 m @ 306.7 g/t Au
including 1 m @ 1,499 g/t Au (GHDD-111) (uncut)
• 10 m @ 3.44 g/t Au including 1 m @ 19.0 g/t Au (GHDD-103)
Golden Hill: Jackhammer Hill Prospect
27
28. Early-Stage Exploration Success at Peksou and C-Zone Targets
Peksou Prospect – GHDD003 Cross-Section C-Zone – Drill Plan
Current minimum strike length of 600 metres with initial core drill results of: 6 m @
20.33 g/t Au; 8 m @ 5.97 g/t Au and 36 m @ 2.32 g/t Au. Aggressive drill program
to continue throughout 2018 28
C-Zone prospect is the newest prospect to be drill tested with encouraging results including
11 m @ 4.87 g/t Au and 8 m @ 3.76 g/t Au. A follow-up drill program will be undertaken
here in early 2018.
30. Significant Opportunities in Côte d’Ivoire
Initial 5 Greenfield Exploration Tenements Totaling +1800 km2
• Positive preliminary results at the Guitry prospect have
made it a priority
• 3 km x 7 km gold-in-soil geochemical anomaly
• Initial drilling evaluation being undertaken with
4000-metre RC drill program underway
Recently Added 1,400 km2 Afema Land Package
• Afema mine license
• Three exploration permits (Ayame, Mafere, Aboisso) Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Guitry
Tiassale
Mahepleu
Sangaredougou
Operating Gold Mine/ Development Project
Newcrest
Dianra
30
Afema
31. Côte d’Ivoire
Ahafo 17 Moz Newmont
3 Afema
Exploration
Permits
Afema Mining Permit
Bibiani 7 Moz Resolute Mining
Chirano 5 Moz Kinross
Edikan 6.6 Moz Perseus
Bogoso/Prestea18
Moz Gold Star
Konogo 1.4
MozSignature Metals
Akyem
Newmont
Essase
5.19 Moz
Obotan 5.5 Moz Asanko
Obuasi 41 Moz Anglo Gold Ashanti
Kubi 0.9 MozAsaute Gold Corporation
Damang 7.1 Moz Goldfields
Tarkwa 24 Moz
Iduapriem 8.2 Moz
AngloGold Ashanti
Kumasi
Cape Coast
Sefwi-Bibiani Gold Belt
Asankrangwa Gold Belt
Ashanti Gold Belt
Winneba-Kibi
Gold Belt
Ghana
31
Afema: Looking to Confirm and Improve Historical Resource* of 2Moz of Gold
Well Located Geologically
• Along trend and within the same gold belts of a
number of high profile producing mines in Ghana
JV With Sodim Limited (51%, earning 70%)
• Teranga can earn a 70% interest through the
completion of a three-year $11M exploration and
community relations work program and the delivery
of a positive feasibility study
• Teranga will sole fund and manage the exploration
programs and feasibility studies
• Upon delivery of a positive feasibility study, Sodim
can elect to maintain 30% or convert to a 3% NSR
• Sodim received $2.5 million upon signing of MOU –
with progressive payments of up to $7.5 million with
the delivery of a positive feasibility study
*Refer to Appendix – Afema Mine License Historical Resource Estimate
33. Executive Team
Richard Young, MA, CPA
President & CEO
25+ years experience in gold mining
including 13 years at Barrick Gold including
finance and corporate development
Paul Chawrun, P.Eng, MBA
Chief Operating Officer
25+ years experience in mining including
serving as Director, Technical Services
at Detour Gold
Navin Dyal, CPA
Chief Financial Officer
13 years experience in mining including 7
years at Barrick Gold as Head of Finance
in copper business unit
David Savarie, LL.B
General Counsel & Corporate Secretary
11 years of Corporate Counsel experience
in mining including his role as Deputy
General Counsel and Corporate Secretary
of Gabriel Resources
Aziz Sy, P.Eng, M.Sc., MBA
General Manager, SGO
17+ years experience in managing gold
exploration projects, including his work as
Vice President Senegal Operations for the
Oromin Joint Venture Group until its
acquisition in 2014 by Teranga Gold
Sepanta Dorri, MAcc, MBA, CPA
VP, Corporate and Stakeholder Development
10 years experience in mining including 5 years at
Xstrata Nickel in Strategic Planning and M&A.
2012 winner of the WXN Top 100 Canada's Most
Powerful Women award, Trailblazers and
Trendsetters Category
David Mallo, B.Sc. Geology
VP, Exploration
35+ years of mineral exploration in project
evaluation and program management, playing
an integral role in acquisition, discovery, and
exploration of world-class deposits including
Eskay Creek and Cobre Panama
33
34. Alan Hill, M.Eng
Chairman
35+ years experience in
mining including 20 years at
Barrick Gold in project
evaluation and development
Christopher Lattanzi, B.Eng
Director
30 years experience in mining
property valuation, scoping, feasibility
studies and project monitoring on a
global basis. Founder of Micon
International
Richard Young, MA, CPA
President & CEO
25+ years experience in gold
mining including 13 years at
Barrick Gold in finance and
corporate development
Jendayi Frazer, Ph.D.
Director
17 years experience in key roles
supporting initiatives and policies
to build Africa’s equity and commodity
markets. First woman U.S. Ambassador
to South Africa
William Biggar, MA, CPA
Director
25+ years experience in senior
executive positions in investment,
mining and real estate including
Barrick Gold and Merrill Lynch
Edward Goldenberg, MA, BCl
Director
Distinguished career in policy including
10 years as Senior Policy Advisor to the
Prime Minister of Canada and the Prime
Minister's Chief of Staff in 2003. Honourary
Doctorate of Laws from McGill University
David Mimran
Director & Teranga’s Largest Shareholder
CEO of Grands Moulins d’Abidjan and
Grands Moulins de Dakar, among the
largest producers of agri-food in West
Africa. Special Advisor to the Government
of the Republic of Côte d'Ivoire
Alan Thomas, CPA
Director
30+ years mining and energy
industry experience in senior
financial and director roles including
6 years as VP and CFO of ShawCor
and 11 years as CFO of Noranda
Frank Wheatley, LL.B
Director
28 years mining industry experience as
director, senior officer and legal counsel.
Extensive experience in public financing,
project debt financing, permitting of large-
scale mining projects and strategic M&A
Board of Directors
34
35. 8.4%
4.8%
Implied Net Smelter Royalty
OJVG Acquisition Financed by Franco-Nevada
• In connection with Teranga’s transformational
acquisition of Oromin Joint Venture Group in 2014,
Franco-Nevada invested $135 million in exchange for
a fixed and floating stream on Teranga’s future
production
• Fixed gold deliveries of 22,500 ounces per year from
2014 to 2019 with trailing 6% gold stream once fixed
deliveries completed in 2019*
• Franco-Nevada to pay 20% of spot gold price per
ounce delivered (6% stream is equivalent to a 4.8%
NSR royalty)
• Streaming agreement covers Teranga’s current mine
license and land package
Effective Cost of Franco-Nevada Stream on
All-in Sustaining Costs per Ounce
(based on $1,200/ounce gold price)
$100
$58
2016E Post 2019
EffectiveCost
35
36. Qualified Persons Statement
Teranga's exploration programs in Burkina Faso are managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Mann has sufficient experience which is relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI 43-101. The technical information contained in this news release
relating to exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the
sampling, analytical and test data underlying the information. The RC and diamond core samples are assayed at the BIGGS Laboratory in Ouagadougou, Burkina Faso. Mr. Mann has
consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein, and approved such disclosure.
Quality Assurance and Quality Control
For details on the quality assurance program and quality control measures applied during the execution of the exploration work and results reported on herein please refer to Chapter 11
– Sample Preparation, Analyses and Security of the Technical Report on the Wahgnion Gold Project, Burkina Faso West Africa dated October 20, 2017 available on the Company’s
website at http://www.terangagold.com and SEDAR at www.sedar.com.
36
37. 37
Non-IFRS Performance Measures
The Company has included non-IFRS measures in this document, including “total cash cost per ounce of gold sold”, “all-in sustaining costs per ounce”, “free cash flow from operations” and “EBITDA”. The
Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company.
The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These
measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North
American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is
voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council (“WGC”) definition of all-in sustaining costs seeks to extend
the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and
expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interest
costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the calculation of
all-in sustaining costs does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company’s overall profitability. For
Sabodala and Wahgnion, life of mine total cash costs and all-in sustaining costs figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate
overheads. Total cash costs and all-in sustaining costs figures for Sabodala further excludes amortized advanced royalty costs. Other companies may calculate this measure differently. Consolidated total cash
costs and all-in sustaining cost figures add corporate overhead costs. Other companies may calculate this measure differently.
The Company calculates free cash flow from operations as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of its ability to
generate cash for growth initiatives. “Earnings before interest, taxes, depreciation and amortization” (“EBITDA”) is a non-IFRS financial measure, which excludes income tax, finance costs (before unwinding of
discounts), interest income, depreciation and amortization, and non-cash impairment charges from net earnings. EBITDA is intended to provide additional information to investors and analysts and do not have
any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that EBITDA is a
valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures.
Net asset value (“NAV”) per share and net present value (“NPV”) per share are non-IFRS financial measures. NAV per share is equal to NPV per share and is calculated using the NPV of the life of mine
(“LOM”) cash flows based on the Wahgnion and Sabodala 43-101 technical reports. The NPV calculation assumes a long-term gold price of $1,300 per ounce, a 5% discount rate, a 0.79 CAD/USD exchange
rate, a 1.10 Euro/USD exchange rate, and current cash on hand. It includes interest, income taxes, and changes in working capital and excludes corporate administration, exploration expenditures, minority
interest payments and debt repayments. The Wahgnion and Sabodala NPV are based on reserves only.
For more information regarding these measures, please refer to the Company’s management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.
38. Endnotes
38
1. Refers to proven and probable reserves of 1.2Moz for the Wahgnion project as per reserve estimate as of September 7, 2017 included in the Wahgnion technical report dated October 20, 2017 available on the
Company’s website at www.terangagold.com and SEDAR www.sedar.com.
2. Refers to proven and probable reserves of 2.7Moz for the Sabodala project as per reserve estimate as of June 30, 2017 included in the Sabodala technical report dated August 30, 2017 available on
the Company’s website at www.terangagold.com and SEDAR www.sedar.com.
3. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as at June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and
related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at
www.sedar.com.
4. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at September 7, 2017. For more information regarding the Wahgnion’s Mineral Reserves and
Resources and related notes, please refer to the NI 43-101 compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company’s website at www.terangagold.com and on
SEDAR at www.sedar.com.
5. LOM assumptions include: Gold Price $1,250 per ounce
Heavy Fuel Oil (HFO): Wahgnion - $0.59 per litre
Sabodala - $0.46 per litre
Light Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period)
Sabodala - $0.81 per litre
Euro to USD Exchange Rate: $1.10
6. This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project,
Senegal, West Africa, dated August 30, 2017 (the “Sabodala Technical Report”). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs.
7. See the NI 43-101 compliant technical report for the Wahgnion Project. This LOM production plan assumes that the Wahgnion Project plant construction will commence in Q1 2018. If the Wahgnion plant
construction commences in Q2 2018 instead, the LOM production plan is expected to shift by several months.
8. Other considerations (uses) is an estimate of potential other uses of the Company’s cash during the period, including, but not limited to, discretionary exploration expenditures, financing costs and any cost overrun
or minimum cash requirements that might be contained in any completed debt financing agreement. Actual amounts may total more or less than the aggregate amount specified.
9. Teranga’s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI
43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
10. Teranga’s Wahgnion Mineral Reserves and Mineral Resources estimates as at September 7, 2017. For more information regarding Wahgnion’s Mineral Reserves and Resources and related notes, please refer to
the NI 43-101 compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
11. Free cash flow excludes Wahgnion financing and corporate-wide resource development and exploration expenditures. Please see table on slide 7 of the Company’s Investor & Analyst Workshop presentation
dated September 14, 2017, which was filed on www.sedar.com.
12. Net Present Value (“NPV”) per share is a Non-IFRS financial measure. NPV per share, average NPV multiple of medium producers, and Teranga’s share price is as per BMO GoldPages published January 15,
2018. According to BMO GoldPages, NPV per share is calculated using the net present value of the life of mine cash flows based on the NI 43-101 plan, less cash flow of corporate costs, less net debt per share,
using the model at SPOT commodity prices and exchange rates. The “Revalued Share Price” is calculated using the NPV per share at SPOT times the NPV multiples as listed. The BMO NPV calculation assumes
a US$1,229 SPOT gold price per ounce, 5% discount, 0.79 USD/CAD exchange rate..
39. 39
A number of economic and technical studies have been prepared on the Afema project prior to Teranga’s entry into the Afema JV with Sodim. The most recent study, which included a mineral
resource estimate for the Afema mine license, was issued by RockRidge Consulting Services Geologists for and on behalf of TGL and is dated as of June 27, 2016 (the “June 2016 Historical
Estimate”). The June 2016 Historical Estimate includes an Indicated oxide resource estimate of 110Koz (comprised of 2.7Mt at an average grade of 1.26 g/t Au) and Inferred oxide resources of
122Koz (comprised of 3.0Mt at an average grade of 1.26 g/t Au). In addition, it includes an Indicated transitional resource estimate of 59Koz (comprised of 1.3Mt at an average grade of 1.39 g/t Au)
and an Inferred transitional resource of 28Koz (comprised of 0.8Mt at an average grade of 1.11 g/t Au). Finally, the June 2016 Historical Estimate provides a sulphide resource estimate as follows:
865Koz Indicated ounces (comprised of 17.3Mt at an average grade of 1.55 g/t Au) and 806Koz inferred ounces (comprised of 17.8Mt at an average grade of 1.40 g/t Au). This historical estimate is
reported as using a cut-off grade of 0.5 g/t Au.
RockRidge further states that it reviewed the geological and grade continuity to supplement the review of data quality in order to confirm the CIM mineral resource classification categories used. As
well, the June 2016 Historical Estimate states the following with respect to the basis of the mineral resource estimate:
• mineralized volumes were received for oxide, transitional and sulphide modelled volumes;
• gold grades were determined using ordinary kriging and Inverse distance squared interpolation (depending on data density) into a 3-dimensional block model constrained by
mineralization wireframes;
• the block models comprised sub-celled block dimensions of 5m x 5m x 1m and 5m x 5m x 2m (depending on data sampling interval);
• mineralized wireframes were truncated to the topographic surface reflecting the mining that had previously occurred on the property;
• gold values were investigated for outlier values and put though two statistical capping/cutting routines;
• Datamine Studio 3 was the modelling package; and
• relationship between geology and preliminary mining and economic factors was taken into account at all times.
Teranga considers the June 2016 Historical Estimate to be a “historical estimate” as defined under NI 43-101 and relevant as the most recent resource estimate on the Afema project. Further
drilling, resource modelling and updates to key economic assumptions would be required to upgrade or verify these historical estimates as current mineral resources and accordingly they should be
relied upon only as a historical resource estimate. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Teranga is
not treating the historical estimate as current mineral resources or mineral reserves.
Afema Mine License Historical Resource Estimate
40. Trish Moran
Head of Investor Relations
77 King Street West, Suite 2110
Toronto, ON M5K 2A1
T: +1.416.607.4507
E: investor@terangagold.com
W: terangagold.com
