INVESTOR PRESENTATION

FEBRUARY 2014

1
FORWARD LOOKING STATEMENTS

This presentation contains certain statements that constitute forward-looking information with...
TERANGA GOLD
CAPITALIZATION SUMMARY
• Ticker symbols/share price:

OPERATIONS

TSX:TGZ / C$1.16²
ASX:TGZ / A$0.1.09²

• Do...
INVESTMENT SUMMARY
• Excellent performance in 2013
- Mill expansion, elimination of out-of-the-money hedges, agreement wit...
2013: A YEAR OF ACHIEVEMENTS
CORPORATE

•
•

Eliminated our inherited out-of-the-money
hedge contracts
Established a long-...
TRANSFORMATIVE ACQUISITION OF OJVG
NOW COMPLETE
• Acquired Oromin Joint Venture Group (OJVG) in series of
transactions in ...
ACQUISITION LEADS TO IMMEDIATE
IMPROVEMENT IN CASH FLOW GENERATION

Notes: ¹See appendix for details of gold stream agreem...
TERANGA IS IN THE FIRST QUARTILE OF
2014 COST CURVE

Notes: includes companies with total 2014 production of c.50Moz (64% ...
CORPORATE STRATEGY
VALUE CREATION
• Maximize free cash flow generation
- Produce ~250koz/year
- Lowest (best) quartile AIS...
POTENTIAL TO ADD PROFITABLE
OUNCES
SHORT AND MEDIUM TERM (2014-16)
• Integrate OJVG and Sabodala operations
• Increase fre...
2014 EXPLORATION PROGRAM
• $10M Budget:
-

Mapping:
Trenching:
RAB drilling:
RC drilling:
Diamond drilling:

50km
6,500m
5...
EXPLORATION: EARLY DAYS
IN NEW GOLD CAMP
• Neighbouring Shear Zone on
shared Kedougou-Kenieba
Greenstone Belt is host to 7...
PERFORMANCE RELATIVE TO GUIDANCE
PRODUCTION

CASH COSTS

Guidance Range

Actual

Note: guidance is earliest given during t...
SENEGAL COMPARES FAVOURABLY TO
OTHER AFRICAN GOLD MINING JURISDICTIONS
IN TERMS OF SECURITY AND POLITICAL RISKS

Source: C...
UNDERVALUED RELATIVE TO GOLD
PRODUCING PEERS
PRICE/AVERAGE BROKER TARGET

EV/RESERVES & EV/RESOURCES

EV/EBITDA 2014E

PRI...
INVESTMENT SUMMARY
• Excellent performance in 2013
- Mill expansion, elimination of out-of-the-money hedges, agreement wit...
CONTACT US

17
APPENDIX

18
CSR
The Company’s mission is to share the benefits of responsible mining with all of our stakeholders. We
strive to act as...
TRACK RECORD OF SAFE OPERATIONS
SAFETY STATISTICS

2011
2012
2013
Hours Worked
3,057,907 3,474,890 2,879,685
LTI
1
6
2
MTI...
FRANCO-NEVADA STREAM AGREEMENT
• Franco-Nevada provided an upfront cash payment of $135M in exchange for a fixed
and float...
SENEGAL INVESTMENT AGREEMENT
AND FISCAL REGIME
IN PARTNERSHIP WITH SENEGAL
• The Senegalese Government has stated the
impo...
MANAGEMENT TEAM
Alan R. Hill
Executive Chairman

• Mining engineer with over 20 years experience globally in project evalu...
NON-EXECUTIVE DIRECTORS
Alan R. Thomas

Frank Wheatley

Edward S. Goldenberg

Christopher R. Lattanzi

•
•
•
•

Director/t...
BASE CASE LOM PLAN
Ore Mined
Ore Grade
Sabodala Phase 3
Waste
Contained Oz
Ore Mined
Ore Grade
Sabodala Phase 4
Waste
Cont...
HISTORIC RESULTS AND GUIDANCE
2009A
Ore Mined
Waste Mined - operating
Waste Mined - capitalized 1
Total Mined
Grade Mined
...
COMBINED RESERVES AND RESOURCES

Note: Please see 2013 Financial Report and MD&A, 2013 for Resource and Reserve estimate a...
COMBINED RESERVES AND RESOURCES

Note: Please see ASX Fourth Quarter Report, 2013 for Resource and Reserve estimate assump...
COMPETENT PERSONS STATEMENT
The technical information contained in this document relating to the mineral reserve estimates...
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Teranga Gold Investor Presentation - February 2014

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Teranga Gold Investor Presentation - February 2014

  1. 1. INVESTOR PRESENTATION FEBRUARY 2014 1
  2. 2. FORWARD LOOKING STATEMENTS This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga’s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan and consolidation of the Sabodala Gold Project and OJVG Golouma Gold Project, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, targeted date for a NI 43-101 compliant technical report, amendment to the OJVG mining license, the approval of the Gora ESIA and permitting and the completion of construction related thereto. Such 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. 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 and courses of action. Teranga cautions you not to place undue 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, 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 the Company’s Annual Information Form dated March 27, 2013, and in other company filings 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 dated as of February 21, 2014. 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” and similar words. All dollar amounts stated are denominated in US dollars unless specified otherwise 2
  3. 3. TERANGA GOLD CAPITALIZATION SUMMARY • Ticker symbols/share price: OPERATIONS TSX:TGZ / C$1.16² ASX:TGZ / A$0.1.09² • Domicile: Canada • Basic shares outstanding: 317M • Options outstanding: 24M¹ • Market capitalization: $330M² • Cash & equivalents: $42M4 • Project finance outstanding: $30M³ • Mining fleet loan facility: $17M4 Note: *all amounts in US$ unless specified otherwise, ¹average strike of C$2.58, including 15.8M at C$3; ²at 2/20/14; ³at 1/28/14 as per ASX report, reduced from $60M, 4at 12/31/13 3
  4. 4. INVESTMENT SUMMARY • Excellent performance in 2013 - Mill expansion, elimination of out-of-the-money hedges, agreement with Senegalese Government - Transformative acquisition of OJVG now complete, more than doubling reserves and resources • New mine plan forecasts average production of about 250koz per year in lowest (best) quartile of all-in sustaining costs (AISC) • Corporate strategy focused on maximizing free cash flow - Operations expected to generate significant free cash flow - Disciplined capital allocation strategy • Potential to add profitable ounces to production profile - Heap-leaching of lower grade oxide ore - Near-plant exploration - Highly prospective regional exploration program on 70km gold belt • Consistently meeting operational targets • Senegal is a politically stable jurisdiction with a competitive mining fiscal regime • Trading at a discount to peer group valuations 4
  5. 5. 2013: A YEAR OF ACHIEVEMENTS CORPORATE • • Eliminated our inherited out-of-the-money hedge contracts Established a long-term fiscal and investment agreement with the Senegalese government • • Optimized mill to design capacity • More material moved and processed at lower unit costs • Achieved production and cost guidance for the year - Produced 207,204 oz - vs guidance of 190,000-210,000 oz - Cash costs of $641/oz - vs guidance of $650-700/oz - All-in sustaining costs (AISC) of $1,033/oz - vs guidance of $1,000-1,100/oz • High conversion of EBITDA to free cash flow • Year end cash balance: $42.3M Acquisition of Oromin Joint Venture Group (OJVG) • OPERATING & FINANCIAL Raised $135M from sale of royalty stream to Franco-Nevada to acquire part of the OJVG (Bendon) and repay half of loan facility 5
  6. 6. TRANSFORMATIVE ACQUISITION OF OJVG NOW COMPLETE • Acquired Oromin Joint Venture Group (OJVG) in series of transactions in Q3, Q4 2013 Before After OJVG OJVG acquisition acquisition - Acquired Oromin (owner of 43.5% of OJVG) for 71M shares (22% of current shares outstanding) - Acquired Bendon (43.5%) via sale of gold stream to FrancoNevada1 for 6% gross stream (equivalent to 4.8% NSR royalty) Reserves Reserve - Acquired Badr (13% carried) for $7.5M funded from treasury² Grade • Increased open pit reserves by 120% to 2.8 Moz of gold M&I Resources • Extends mine life Mine - More than doubles reserves and resources license size - Increases production life from 8 to 16 years Share count Resources / • Enables production to grow to ~250koz from ~200koz share - No significant incremental capex Change (Moz) 1.27 2.81 120% (g/t) 1.45 1.47 1% (Moz) 2.77 6.19 123% (km2) 33 246 645% (M) 246 317 22% (oz) 0.011 0.020 73% - Lower unit cash costs - Greater cash flow generation • Allows for optimal sequencing of deposits based on grade, ore hardness, distance to mill and capital requirements - Minimize waste stripping at Sabodala, increasing 2014 cash flow • Consolidates the region and increases growth potential from enlarged acreage position - Mine license increases from 33km2 to 246km2 Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices Source: Sabodala Standalone Mine Plan, Oct. 2013, Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March) 6
  7. 7. ACQUISITION LEADS TO IMMEDIATE IMPROVEMENT IN CASH FLOW GENERATION Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices Source: Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March) 7
  8. 8. TERANGA IS IN THE FIRST QUARTILE OF 2014 COST CURVE Notes: includes companies with total 2014 production of c.50Moz (64% of total global mine production); bar heights of highest cost producers truncated to fit on graph Source: BMO, 13/1/14 8
  9. 9. CORPORATE STRATEGY VALUE CREATION • Maximize free cash flow generation - Produce ~250koz/year - Lowest (best) quartile AISC costs - High conversion of EBITDA into cash flow (low sustaining capex) • Leverage existing processing infrastructure - Only gold production facility in Senegal - Aim to grow reserves at low cost and without shareholder dilution - Potential for future expansion of process capacity  Optimize mill  Heap leach potential  Mill expansion (if merited) DISCIPLINED ALLOCATION OF CAPITAL • Only Senegal • Only gold • Only commit capital to projects which have - IRR > hurdle rate - Quick payback RETURN OF CAPITAL • Priority is to strengthen balance sheet - Extinguish debt facility - Build up sufficient cash to execute on business plan • Once balance sheet is strengthened, Board will consider how to return excess cash flows to shareholders via dividends, special dividends or share buybacks (depending on share price) 9
  10. 10. POTENTIAL TO ADD PROFITABLE OUNCES SHORT AND MEDIUM TERM (2014-16) • Integrate OJVG and Sabodala operations • Increase free cash flow through higher production • Increase reserves through conversion of M&I and Inferred - Expanded Sabodala mine license (246km2) • Objective - Millable reserve growth • Evaluate heap leach processing option (permit and • Optimize mill throughput • Systematic identification and evaluation of targets on - Regional land package (1,055km2) and lower material movement build if economics are attractive) LONG TERM (2015-) - Heap leach reserve growth - Satellite deposit discovery - Standalone deposit discovery • Optimize mine planning and grade Maximize free-cash flow 10
  11. 11. 2014 EXPLORATION PROGRAM • $10M Budget: - Mapping: Trenching: RAB drilling: RC drilling: Diamond drilling: 50km 6,500m 5,000m 3,000m 22,000m 1. Millable reserve growth (Masato, Goloumas) • Budget allocation: - 50% Mine License - 50% Regional Exploration Land Package • Oromin’s personnel fully integrated into Teranga’s exploration team - Provides continuity of knowledge specific to OJVG deposits • Acquisition of adjoining OJVG increases reserves to 2.8 Moz 2. Heap leachable reserve growth (Niakafiri structure, Maki Madina) - >10 years of Sabodala mill production - Adds prospective land package 11
  12. 12. EXPLORATION: EARLY DAYS IN NEW GOLD CAMP • Neighbouring Shear Zone on shared Kedougou-Kenieba Greenstone Belt is host to 7 large deposits 4. Standalone deposit discoveries (Ninienko and Soreto, Garaboureya) • 1,055km2 land package covers > 70km of strike length on an offsetting Regional Scale Structure 3. Satellite deposit discoveries (KC, Zone ABC, Gora) • Systematic exploration has identified > 50 exploration targets to date 12
  13. 13. PERFORMANCE RELATIVE TO GUIDANCE PRODUCTION CASH COSTS Guidance Range Actual Note: guidance is earliest given during the financial year; 2011 guidance was announced during the IPO process prior to the current management team starting 13
  14. 14. SENEGAL COMPARES FAVOURABLY TO OTHER AFRICAN GOLD MINING JURISDICTIONS IN TERMS OF SECURITY AND POLITICAL RISKS Source: Control Risks, RiskMap 2014 14
  15. 15. UNDERVALUED RELATIVE TO GOLD PRODUCING PEERS PRICE/AVERAGE BROKER TARGET EV/RESERVES & EV/RESOURCES EV/EBITDA 2014E PRICE/EARNINGS 2014E Note: data set is primary gold producers with market cap >$100M, Africa focused or primary listing in Canada or Australia Source: Bloomberg consensus and prices as of 02/15/14 15
  16. 16. INVESTMENT SUMMARY • Excellent performance in 2013 - Mill expansion, elimination of out-of-the-money hedges, agreement with Senegal government - Transformative acquisition of OJVG now complete, more than doubling reserves and resources • New mine plan forecasts average production of about 250koz per year in lowest (best) quartile of all-in sustaining costs (AISC) • Corporate strategy focused on maximizing free cash flow - Operations expected to generate significant free cash flow - Disciplined capital allocation strategy • Potential to add profitable ounces to production profile - Heap-leaching of lower grade oxide ore - Near-plant exploration - Highly prospective regional exploration program on 70km gold belt • Consistently meeting operational targets • Senegal is a politically stable jurisdiction with a competitive mining fiscal regime • Trading at a discount to peer group valuations 16
  17. 17. CONTACT US 17
  18. 18. APPENDIX 18
  19. 19. CSR The Company’s mission is to share the benefits of responsible mining with all of our stakeholders. We strive to act as a responsible corporate citizen by building projects together with the communities, and by being committed to using the best available techniques as we carry out our actions. We aim to achieve benefits for all parties involved, and our quest for continuous improvement drives our way of doing business. 2013 ACHIEVEMENTS 5 PILLARS OF COMMITMENT TO SUSTAINABILITY - Completion of the Teranga Development Strategy - Increase income-generating activities for the local population through the enhancement of agricultural activities and local small business initiatives - Improve external communication of the Company’s profile as a responsible miner organizing workshops and information meetings with key stakeholders - Strengthen the skills and capabilities of the local Human Resources and the Learning and Development teams - Expand the learning and development offerings available to our employees - Strengthen partnerships with specific vocational schools and higher learning institutes in Senegal - Participate in the creation of the Senegal Chamber of Mines - Contribute to the Government of Senegal’s EITI application OUR FOCUS 1. Economic Sustainability 2. Agriculture and Food Security 3. Youth Education and Training 19
  20. 20. TRACK RECORD OF SAFE OPERATIONS SAFETY STATISTICS 2011 2012 2013 Hours Worked 3,057,907 3,474,890 2,879,685 LTI 1 6 2 MTI 16 13 12 FAI 55 75 72 Incidents 219 374 345 High Potential Incidents 22 40 25 COMMENTS • Teranga is dedicated to excellence in safety and aims its OHS indicators to exceed global benchmarking standards • Teranga is committed to creating and sustaining a healthy and safe work environment • Sabodala’s Lost Time Injury (LTI) frequency is well below the international benchmarking standards - Sabodala – 0.97 vs. International Standard – 4.19  Per million hours work • We actively report and look at improvement of all incidents no matter how small • Sabodala continues to operate at a standard equal to best practice international standards • We use internationally researched methodology to investigate high potential incidents (HPI’s) 20
  21. 21. FRANCO-NEVADA STREAM AGREEMENT • Franco-Nevada provided an upfront cash payment of $135M in exchange for a fixed and floating stream on future production - 2014 to 2019: 22,500 ounces per year - 2020 and thereafter: 6% of gold production • Franco-Nevada to pay 20% of spot gold price on each ounce delivered (the 6% stream is equivalent to a 4.8% NSR royalty) • Higher stream in first six years - Allowed us to retire half of our debt facility - Accelerate and repay balance of facility in 2014 - Provides certainty to Franco-Nevada as mine plan evolves • Repaying debt more rapidly has clear benefits to the Company and shareholders - Removing onerous financial covenants - Reduced balance sheet risk - Enables earlier initiation of return of capital 21
  22. 22. SENEGAL INVESTMENT AGREEMENT AND FISCAL REGIME IN PARTNERSHIP WITH SENEGAL • The Senegalese Government has stated the importance of the mining industry in Senegal • Partnership and trust between Senegalese Government and Canadian & Senegalese Management teams built on transparency - Committed to growing domestic gold production as quickly as possible - Signing the Definitive Global Agreement (May 2013) provided a clear and transparent framework that allowed investor confidence - Agreement provides a price and formula to acquire Government’s additional option on satellite deposits and to incorporate these into the existing mine license and fiscal regime - Ensuring full access to exploration targets currently occupied by artisanal miners - Supporting drilling of the Niakafiri deposit on the Mine License - Extending the mine license by five years to 2022 and five key exploration licenses by 18 months FISCAL REGIME • 5% government royalty • 25% corporate income tax after tax holiday ends in May 2015 • 10% Government of Senegal free-carried interest • From 2009 to the end of 2013 Teranga has: - Invested more than $500M in Senegal - Paid $70M in royalties, dividends, and other government payments • The agreement made the Franco-Nevada investment possible and paved the way for the consolidation of the OJVG 22
  23. 23. MANAGEMENT TEAM Alan R. Hill Executive Chairman • Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine development as 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. Young President & CEO, Director • Over 10 years experience in mining finance, development, corporate development, and investor relations with Barrick Gold • Former VP and CFO of Gabriel Resources (2005-2010) Mark English VP, 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 and development, inclusive of greenfield start-ups • Joined Mineral Deposits Ltd. in June 2006 Paul Chawrun VP, Technical Services • Mining Engineer and geologist with over 23 years experience • Former EVP Corporate Development for Chieftain Metals • Former Director, Technical Services Detour Gold Navin Dyal VP & 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 firm David Savarie VP, General Counsel & Corporate Secretary • 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 LLP • 10 years experience in Corporate Communications and Investor Relations with Barrick Gold (1996-2006) Kathy Sipos VP, Investor & Stakeholder • Former VP of Corporate Communications and Investor Relations of Gabriel Resources (2006-2009) Relations Aziz Sy VP, Development Senegal • Over 18 years experience in managing exploration projects from grassroots to development level • Former VP of Oromin Joint-Venture Group overseeing Senegal Operations • Former Country & Exploration Manager of Randgold Resources Limited in Senegal and Senior Manager Exploration of Lonmin Plc for West Africa and Gabon Macoumba Diop General Manager & Government Relations 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 in mineral project marketing and development • Joined SGO in July 2011. 23
  24. 24. NON-EXECUTIVE DIRECTORS Alan R. Thomas Frank Wheatley Edward S. Goldenberg Christopher R. Lattanzi • • • • Director/trustee and Chief Financial Officer of Labrador Iron Ore Royalty Corporation (formerly Labrador Iron Ore Trust) since 2004. Served on the board of directors of Gabriel Resources Ltd. from May 2006 until June 2010 From 2000 to 2006 held the position of Vice-President and Chief Financial Officer of ShawCor Ltd., and CFO of Noranda Inc. from 1987 to 1998. Chartered accountant and graduate of the University of Toronto • Chief Executive Officer and director of Yellowhead Mining Inc., Executive Director, Corporate Affairs and Strategy of Talison Lithium Limited and a member of the board of directors of Selwyn Resources Ltd. • Vice-President and General Counsel of Gabriel Resources Ltd., from 2000 to 2009, and prior to which, the President and Chief Operating Officer of Gabriel Resources Ltd. from March 1999 to October 2000 • Before joining Gabriel Resources Ltd., he was Vice-President, Legal Affairs of Eldorado Gold Corporation. • 28 years experience as a director and senior officer of, and legal counsel to, a number of Canadian public mining companies. • Received his Bachelor of Commerce and LL.B. degrees from the University of British Columbia • Senior partner at the law firm of Bennett Jones LLP where he has a corporate practice, advising clients on governance issues, public policy and government relations. • Distinguished background working with the Government of Canada, having been the Senior Policy Advisor to the Prime Minister of Canada (19932003) and the Prime Minister's Chief of Staff (2003). • Awarded an Honourary Doctorate of Laws from McGill University in 2004 • Holds a BA, MA and BCL from McGill University and is also a graduate of the Institut d'Études Politiques de Paris (France) • Director of Argonaut Gold Inc. and Spanish Mountain Gold Ltd. • Associate consultant for Micon International Limited, having been the founding member of Micon in 1988 and serving as its president from formation until 2005. • Prior to 1988, was a consultant with David Robertson and Associates. • Invaluable experience in property valuation, scoping, feasibility studies and project monitoring on a global basis. • Appointed a director of Meridian Gold Inc. in 1999 and was chairman of the board from mid-2004 until December 2006 • Holds a B.Eng (Mining) from Melbourne University 24
  25. 25. BASE CASE LOM PLAN Ore Mined Ore Grade Sabodala Phase 3 Waste Contained Oz Ore Mined Ore Grade Sabodala Phase 4 Waste Contained Oz Ore Mined Ore Grade Masato Phase 1 Waste Contained Oz Ore Mined Ore Grade Masato Phase 2 Waste Contained Oz Ore Mined Ore Grade Gora Waste Contained Oz Ore Mined Ore Grade Golouma Waste Contained Oz Ore Mined Ore Grade Kerekounda Waste Contained Oz Ore Mined Ore Grade Niakafiri Waste Contained Oz Ore Mined Ore Grade Total Waste Contained Oz Stockpile Ore Balance Stockpile Grade Contained Oz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Mt Moz Mt g/t Moz Ore Milled Head Grade Oxide Mt g/t % Rec. oz M oz LOM 4.8 1.68 16.5 0.26 4.1 1.51 29.6 0.20 13.5 1.09 32.3 0.47 11.8 1.37 101.3 0.52 1.9 4.74 38.1 0.29 6.5 2.24 89.8 0.46 0.9 3.26 18.0 0.09 7.8 1.14 22.6 0.29 51.3 1.57 348.0 2.58 59.9 1.46 13% 2.553 2014-2019 AVG 6.3 1.61 40.1 0.33 3.9 2.24 23% 0.254 2014 4.8 1.68 16.5 0.26 0.9 0.91 3.4 0.03 5.7 1.56 19.9 0.29 10.9 0.79 0.27 3.4 2.25 6% 0.227 2015 12.6 1.10 28.9 0.44 0.2 3.80 5.1 0.03 12.8 1.15 33.9 0.47 19.7 0.77 0.48 4.0 2.05 50% 0.242 2016 0.5 1.01 13.1 0.02 0.7 4.15 12.0 0.10 1.0 2.89 16.1 0.09 0.1 1.50 7.4 0.01 2.3 2.84 48.6 0.21 18.0 0.71 0.41 4.0 2.21 34% 0.260 2017 1.7 1.53 11.9 0.09 0.3 6.55 9.7 0.06 0.5 2.61 15.7 0.04 0.8 3.53 10.6 0.09 3.3 2.60 47.8 0.27 17.4 0.71 0.40 3.8 2.35 6% 0.261 2018 1.9 1.61 4.6 0.10 0.4 3.75 9.6 0.05 0.8 2.26 17.0 0.06 4.6 1.14 12.9 0.17 7.7 1.51 44.1 0.37 21.2 0.70 0.47 4.0 2.31 26% 0.271 Source: Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March) 2019 0.2 6.99 1.7 0.05 2.5 2.01 35.0 0.16 3.2 1.14 9.7 0.12 5.9 1.74 46.4 0.33 23.1 0.69 0.51 4.0 2.27 15% 0.265 2020 0.3 0.60 29.9 0.01 1.7 2.07 6.0 0.11 2.1 1.82 35.9 0.12 21.4 0.69 0.47 3.8 1.32 0% 0.145 2021 2.5 0.98 38.6 0.08 2.5 0.98 38.6 0.08 20.0 0.69 0.44 3.8 0.89 1% 0.097 2022 9.0 1.50 32.7 0.43 9.0 1.50 32.7 0.43 25.2 0.73 0.60 3.8 2.29 0% 0.254 2023 21.4 0.70 0.48 3.8 0.93 0% 0.102 2024 17.6 0.70 0.39 3.8 0.71 0% 0.078 2025 13.8 0.69 0.31 3.8 0.71 0% 0.078 2026 10.0 0.67 0.22 3.8 0.74 0% 0.081 2027 6.2 0.65 0.13 3.8 0.71 0% 0.078 2028 2.2 0.66 0.05 4.0 0.64 36% 0.075 2029 0.0 0.00 2.2 0.62 50% 0.040 25
  26. 26. HISTORIC RESULTS AND GUIDANCE 2009A Ore Mined Waste Mined - operating Waste Mined - capitalized 1 Total Mined Grade Mined Ounces Mined Ore Milled Head Grade Recovery Production Mining Milling G&A Spot Sales Price Avg Realized Price Total Cash Costs All-in Sustaining Costs2 1 2010A 2011A 2012A 2013A 2014F (000t) 2,637 2,915 3,973 5,915 4,540 5,300 - 6,000 (000t) 9,144 13,199 21,818 12,265 15,172 18,200 - 19,000 10,696 15,066 500 - 1,000 (000t) (000t) 11,781 16,114 25,791 28,877 34,778 24,000 - 26,000 (g/t) 2.19 1.80 1.39 1.98 1.62 1.60 - 1.70 (oz) 186,077 168,979 177,362 376,185 236,718 1,806 2,285 2,444 2,439 3,152 3,400 - 3,600 (g/t) 3.12 2.12 1.87 3.08 2.24 2.20 - 2.40 (%) 92.2 90.7 89.5 88.7 91.4 90.0 - 91.0 (oz) 166,769 141,119 131,461 214,310 207,204 220,000 - 240,000 ($/t) 2.24 2.42 2.29 2.71 2.59 2.75 - 2.95 ($/t) 15.56 15.22 16.81 20.39 20.15 18.00 - 19.00 ($/t) 9.54 5.17 5.75 6.20 5.38 4.75 - 5.25 ($/oz) 1,006 1,252 1,548 1,677 1,368 ($/oz) 902 1,072 1,236 1,422 1,246 782 556 641 650 - 700 1,200 1,033 800 - 875 (000t) ($/oz) ($/oz) The Company adopted IFRIC 20 on January 1, 2013 and restated the 2012 comparative amounts 2 All-in sustaining costs per ounce sold include total cash costs per ounce, administration expenses (excluding Corporate depreciation expense and social community costs not related to current operations), capitalized deferred stripping, capitalized reserve development and mine site sustaining capital expenditures as defined by the World Gold Council Notes: NI 43-101 to be released in March, 2014 26
  27. 27. COMBINED RESERVES AND RESOURCES Note: Please see 2013 Financial Report and MD&A, 2013 for Resource and Reserve estimate assumptions 27
  28. 28. COMBINED RESERVES AND RESOURCES Note: Please see ASX Fourth Quarter Report, 2013 for Resource and Reserve estimate assumptions 28
  29. 29. COMPETENT PERSONS STATEMENT The technical information contained in this document relating to the mineral reserve estimates for Sabodala, the stockpiles, Masato, Golouma and Kerekounda is based on information compiled by Mr. Chawrun. Mr. Chawrun is member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Chawrun is a full-time employee of Teranga and is a "qualified person" as defined in NI 43-101 and a "competent person" as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Chawrun has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Chawrun has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears. The technical information contained in this document relating to a mineral resource estimates is based on information compiled by Ms. Nakai-Lajoie. Ms. Patti Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this document of the matters based on her compiled information in the form and context in which it appears in this document. The technical information contained in this document relating to the mineral reserve estimates for Gora and Niakafiri is based on, and fairly represents, information and supporting documentation prepared by Julia Martin, P.Eng. who is a member of the Professional Engineers of Ontario and a Member of AusIMM (CP). Ms. Martin is a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of Teranga, is a “qualified person” as defined in NI 43-101 and a “competent person” as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms. Martin is a “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Martin has reviewed and accepts responsibility for the Mineral Reserve estimates for Gora and Niakafiri disclosed in this document and has consented to the inclusion of the matters based on her information in the form and context in which it appears in this document. Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves. 29

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