Third Quarter Financial and Operating Results

1. Q3 2016 Financial &
Operating Highlights
Friday, October 28, 2016
TSX & ASX: TGZ

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” and similar expressions or
statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, have been used to identify such
forward looking information. Specific forward-looking statements in this presentation include the commencement of expected drill programs, anticipated future life of mine
cash flows, anticipated future interests in Joint Venture projects, the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated
conversion of resources into reserves at the Banfora project, the timing of completion of an updated 2Mtpa Feasibility Study for the Banfora project, and Teranga’s estimated
full year financial and operating totals, such as production. Although the forward-looking information contained in this presentation reflect management’s current beliefs based
upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results
will be consistent with such forward looking information. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light
of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect.
These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource
estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga
cautions you not to place undue reliance upon any such forward-looking statements
The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine
plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully
described in Teranga’s Annual Information Form dated March 30, 2016, and in other filings of Teranga with securities and regulatory authorities which are available at
www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs
and opinions change. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
This presentation is as of October 28, 2016. All references to Teranga include its subsidiaries unless the context requires otherwise.
This presentation contains references to Teranga using the words “we”, “us”, “our” and similar words and the reader is referred to using the words “you”, “your” and similar
words.
All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.
Teranga Gold Forward-Looking Statements
2

3. Richard Young
President & CEO

4. Another Strong Quarter
4
Increase in Gold
Production to
49,481 Ounces
(compared to
32,956 in Q3
2015)
+50%
Increase in
Throughput
to a Record 933,000
Tonnes Milled
(compared to
691,000 in Q3 2015)
+35%
All-in Sustaining
Costs per Ounce(1)
of $907 (compared
to $1,191 in Q3
2015)
24%
Increase in
Cash to $57.9M(2)
Since December
31, 2015
+30%
Refer to Endnotes (1) and (2) on the second last slide
(1)

5. Senegal
Côte d’Ivoire
Burkina Faso
Mali
Guinea
Guinea-
Bisseau
The Gambia
Ghana
Benin
Niger
Sierra
Leone
Liberia
Togo
Sabodala Gold Mine
Status: Producing
Reserves: 2.6Moz (3)
M&I: 4.4Moz (3)
5
Growing Multi-Jurisdictional West African Gold Company
Banfora Project
Status: Development
Reserves: 1.0Moz (4)
M&I: 3.0Moz (4)
Golden Hill
Exploration JV
Gourma
Exploration JV
Refer to Endnotes (3) and (4) on the second last slide
Guitry
Exploration JV
Dianra
Exploration JV
Mahepleu
Exploration JV
Tiassale
Exploration JV

6. 2.7x
5.9x
5.9x
6.4x
7.3x
12.2x
13.6x
22.3x
Teranga
Endeavour
Alacer
Semafo
Golden Star
B2Gold
Asanko
Roxgold
Enterprise Value/2016E EBITDA
Undervalued with the Potential for a Major Rate Reset
6
Teranga’s Share Price
vs. Net Present Value (NPV)(5) per Share
133%
Refer to Endnote (5) on the second last slide
$1.19
$1.39
$2.77
Share Price BMO NPV per Share Revalued Share Price
0.9x
Current TGZ
NPV Trading
Multiple(3)
2.0x
Average NPV Multiple
for Medium Producers(3)
48
62
87
197
197
260
383
442
468
Perseus
Alacer
Teranga
Asanko
Golden Star
Endeavour
Semafo
B2Gold
Roxgold
EV/2P Reserves ($/oz)
Data Source: BMO GoldPages published October 24, 2016

7. Paul Chawrun
Chief Operating Officer

8. 3.5M
2.9M 3.2M
6.5M
11.0M
2012 2013 2014 2015 2016
11M Hours Worked Without a Lost Time Injury
Health & Safety: A Key Tenet of Responsible Mining
6 LTI
2 LTI
Zero LTI Zero LTI Zero LTI
Number of lost time injuries
8

9. Tracking To 2016 Production Guidance Range of 200,000oz – 215,000oz(6)
9Refer to Endnote (6) on the second last slide
172,748oz
YTD PRODUCTION FOR
THE 9-MONTHS ENDED
SEPTEMBER 30, 2106

10. 2,503
2,991
YTD 2015 YTD 2016
Record Throughput Supported by Mill Expansion
10
691 933
Q3 2015 Q3 2016
ORE MILLED
(Koz)
Record Quarterly Mill Throughput
Driven by processing a fresh/oxide blend;
increased gold recovery; and
fully commissioned mill optimization project, which as
been operating at nameplate capacity since September
Early Start-up of Second Crusher Circuit
Mill optimization project was completed in Q3 ahead of
schedule and 12% below $20M budget
35%
20%

11. Refer to Endnote (1) on the second last slide
Double-Digit Reduction in Key Unit Costs
11
$3.12
$2.47 $2.59
Q3 2014 Q3 2015 Q3 2016
MINING COSTS
($/t mined)
MILLING COSTS
($/t milled)
CASH COSTS INCLUDING ROYALTIES(1)
($/oz)
17%
$15.96 $16.50
$11.05
Q3 2014 Q3 2015 Q3 2016
$781
$712
$617
Q3 2014 Q3 2015 Q3 2016
21%
31%

12. Unlocking Value at the Banfora Gold Project
12
Increase reserve base
 Infill drilling to convert
resources to reserves
 Drill brownfields targets
to define additional
resources/reserves
2Mtpa mill
optimization studies
 Trade off studies – grind
size/gravity circuit/silver
recoveries
 Plant design
 Power studies
Update reserve models
based on drill program
 Optimize mine plan –
maximize grade in early
years
Review capital and
operating parameters
2H
2016
1H
2017
2H
2017
1H
2018
2H
2018
1H
2019
2H
2019
Commences drilling
campaign to confirm
existing reserve
deposits and potential
for reserve expansion
File NI 43-101
technical report
Seek board approval
and commence
construction
First gold pour
at Banfora
1 2 3 4

13. David Mallo
Vice President, Exploration
13

14. Banfora Gold Project: Drill Results Confirm Mineralisation
14
Drilling Completed at Three of Four Deposits
Nogbele, Fourkoura, and Samavogo named in Gryphon’s
2013 Feasibility Study; drilling to commence at Stinger
deposit in Q4
Results in Line with Expectations
Results confirm both Banfora mineralisation and its
potential for reserve expansion
Comprehensive Exploration Through 2017
Plan is to continue to convert resources to reserves within
the 4 deposits included in the mine plan; work underway to
complete updated NI 43-101 by mid-2017
Banfora Gold Project (Burkina Faso)

15. 15
Nogbele: The Largest of the Four Deposits
Positive Drill Results
Confirming the geological resource model and identifying
extension along trend from known mineralisation
Tahiti: A Newly Identified Strike Extension
There is a minimum 200-metre strike extension to a
broad shallow oxide zone
Nogbele Plan Map

16. 16
Samavogo & Fourkoura
Samavogo Plan Map
Q3 drilling confirmed previous modeling, outlined up-dip gold
mineralisation at the southern end, and successfully extended a
mineralised zone in the central portion of the deposit
Fourkoura Plan Map
Results to date provide confidence in the previous geological
model and encouragement for near-surface strike extensions

17. Eleven Targets Within Trucking Distance to Proposed Banfora Mill
17
Banfora Gold Project (Burkina Faso)
BAGU SUD
/WEAH
KAFINA WEST
OUAHIRI
Ouahiri Prospect is the Highest Priority Target
Displays a similar geochemical footprint in both size
and tenor as Nogbele deposit
10 Priority Prospects to be Explored in Q4
Previous work has identified strong gold anomalies on
several prospects
.
KONANDOUGOU
BAZOGO
BASSONOGRO
HILLSIDE
MUDDI
SUD
Proposed
Plant

18. Siou Pit
M&I: 1.07 Moz ¹
Houndé
M&I: 2.55 Moz ³
Yaramoko
M&I: 0.81 Moz ²
Mana
M&I: 2.76 Moz ¹
Teranga’s JV
Golden Hill Project
Initiating Exploration at Golden Hill
Regional Prospect in Burkina Faso
Exploration permit located ~200Km NE of Banfora and is
comprised of 468km2 located at a very good address on the
Houndé belt
Exploration Has Defined High Quality Prospects
Prioritized ten prospects for more advanced work, including
substantial drilling, in the coming months
18
Gourma
Golden Hill
Banfora
Burkina Faso
*M&I Resources are inclusive
of P&P Reserves
Source:
¹ Semafo Corporate
Presentation, (Sept 18, 2016)
² Roxgold Corporate
Presentation, (Oct 2016)
³ Endeavour Corporate
Presentation (Sept 2016)
Golden Hill Joint Venture (Burkina Faso)

19. Initiating Exploration at Gourma
19
Regional Exploration Property
1,322km2 land package which covers ~60 Km strike length
of crustal scale shear zone
Numerous Prospects Being Advanced
Six prospects identified from preliminary work to-date with
follow-up scheduled to commence in the first half of 2017
Gourma
Golden Hill
Banfora
Burkina Faso
Gourma Joint Venture (Burkina Faso)

20. Sabodala
Mill
Teranga Prospects
Ore Shells Projected
to Surface
Masato Style Bulk
Tonnage Gold Trend
Golouma Style High-
Grade Gold Trend
Mining Concession
Exploration Permits
Gora
Pit
Mali
20
Initial Resource Estimates in Senegal
Sabodala Mine License &
Regional Land Package in Senegal
Golouma North
Goumbati
West
Marougou Main
Representative plans and sections related to the initial resource estimations for these
deposits are available on the Company’s website under “Exploration”.
Deposit
Indicated Resources Inferred Resources
Tonnes Grade Au oz Tonnes Grade Au oz
('000s) (g/t Au) ('000s) ('000s) (g/t Au) ('000s)
Golouma North 170 1.32 7 295 1.42 14
Goumbati West 568 1.69 31 178 1.19 7
Marougou Main 0 0 0 1,199 1.41 54
Total 738 1.61 38 1,672 1.39 75
Notes for Mineral Resources:
1. CIM definitions were followed for Mineral Resources.
2. Open pit oxide Mineral Resources are estimated at a cut-off grade of 0.35 g/t Au.
3. Open pit transition and fresh rock Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au.
4. High grade assays were capped at grades ranging from 5.0 g/t Au to 13.5 g/t Au.
5. Open pit shells were used to constrain open pit resources.
6. Mineral Resources are estimated using a gold price of US$1,450 per ounce.
7. Sum of individual amounts may not equal due to rounding.

21. A High Priority Target
A NNE trending gold in quartz vein system comprised
of three zones located ~10km from the Sabodala plant
Shows Good Continuity
Remains open to further extension along both north
and south trend and at depth. Minimum strike length
of ~1,500m. Initial drill results at Zone C suggest a
sub-parallel quartz vein system is present
Goumbati West Zones A, B and C (Sabodala Mine License)
21
Goumbati West Resource Outline

22. • Continue with multi-drill approach
and resource definition
• New target generation program
will continue
• Exploration work will include
Banfora gold project as well as
Golden Hill and Gourma joint
venture properties
• Geophysics, best fit geochemistry,
prospecting and multiple types of
drilling to be utilized
Senegal Burkina
Faso
22
Côte
d’Ivoire
• High-precision bulk leach
extractable gold survey planned
to cover the entirety of the four JV
exploration properties
Expansive 15-Month Exploration Program to Commence in Q4 2016

23. Navin Dyal
Chief Financial Officer
23

24. TOTAL REVENUE
($M)
$37.8
$60.3
Q3 2015 Q3 2016
59%
Three months ended September 30 YTD September 30
Per ounce 2016 2015 % Change 2016 2015 % Change
Average realized gold
price $1,333 $1,112 20% $1,244 $1,185 5%
Average spot gold price $1,335 $1,124 19% $1,258 $1,178 7%
Low $1,308 $1,081 21% $1,077 $1,081 0%
High $1,366 $1,168 17% $1,366 $1,296 5%
$166.4
$213.1
YTD 2015 YTD 2016
28%
Significant Jump in Revenue
24

25. Development capex
$712 $617
$232
$200
$247
$90
Q3 2015 Q3 2016
25Refer to Endnote (1) on the second last slide
ALL-IN SUSTAINING COSTS(1)
(per ounce sold)
Administration expenses, regional admin costs,
capitalized deferred stripping, capitalized
reserve development, and sustaining capital
Total cash costs(1)
$907
$631
$598
$217 $201
$116
$96
YTD 2015 YTD 2016
$964
Improved AISC of $907(1) for Q3
Mainly due to higher production, lower cash costs
and lower mine development costs
Lower Cash Costs of $617(1) for Q3
Due to lower unit processing costs and G&A costs
for both periods
Lower Development Costs
Prior year period included final capital spend to
complete development of high-grade Gora deposit
$1,191
24%
$895
7%
Continuing to Improve All-in-Sustaining Costs

26. Refer to Endnote (7) on the second last slide
Keeping a Sharp Focus on G&A
26
$7.9
$5.4
YTD 2015 YTD 2016
$2.1
$1.9
Q3 2015 Q3 2016
13%
32%
ADMINISTRATION EXPENSE(7)
($M)

27. CASH MARGIN PER OUNCE*
$50
$315
($79)
$426
$1,339
$1,269
$1,112
$1,333
$1,289
$954
$1,191
$907
-90
110
310
510
710
910
1110
1310
Q3 2013 Q3 2014 Q3 2015 Q3 2016
Cash Margin/oz Average Realized Gold Price/oz All-in Sustaining Cost/oz
Expanding Cash Margins
27
(*cash margin = average realized gold price/oz – all-in sustaining costs per ounce)
(1)
Refer to Endnote (1) on the second last slide

28. Higher Profitability & Cash Flow During Q3 2016
28
Increase in EBITDA(8)
to $26.8M
(compared to $10.4M
in Q3 2015)
+$16M
EPS of $0.03
compared to nil in
the prior year
quarter
+$0.03 Increase in Cash
Flow From
Operations to
$13.3M
(compared to
($8.2M) in Q3 2015)
+$21M
Increase in Free
Cash Flow per
Ounce Sold(9)
(compared to
($632) per ounce
in Q3 2015)
+$715
Refer to Endnotes (8) and (9) on the second last slide

29. Completed 5% Cash Investment in Gryphon
To accelerate exploration and development at Banfora prior to
acquisition
$13.5M Increase in Cash Balance Since Start of Year
Cash balance and $7.6M in proceeds from placement with Tablo
contributes to a pro forma cash balance of $65.5M(2)
Equity Placement with Tablo Corporation
Pre-emptive participation right exercised in October for 9.7M
shares subsequent to quarter end in connection with the
acquisition of Gryphon
CASH POSITION
($M)
$44.4
$57.9
December 31, 2015 September 30, 2016
Refer to Endnote (2) on the second last slide
Building Cash Since Beginning of the Year
29
30%

30. Tracking to 2016 Outlook (Excluding Gryphon Acquisition)
30Refer to Endnotes (1), (6), (7), (10), (11), and (12) on the second last slide
Year-to-Date
9-Month Period Ended
September 30, 2016
2016
Revised Guidance(10)
Ore mined (‘000t) 1,599 2,000 - 2,500
Waste mined (‘000t) 24,317 34,500 - 36,000
Total mined (‘000t) 25,916 34,000 - 35,000
Grade mined (g/t) 2.58 2.50 - 2.75
Ore milled (‘000t) 2,991 3,700 - 3,900
Head grade (g/t) 1.93 1.80 - 2.00
Gold produced (oz) 172,748 200,000 - 215,000(6)(12)
Total cash cost (incl. royalties) (1)
$/oz sold 598 600 - 650
Total all-in sustaining cash cost (1)
$/oz sold 895 900 - 975
Mine production costs $ millions 108.7 145 - 155
Regional administration costs (7)
(included in cost of sales) $ millions 1.4 2
Total capital expenditures (11)
$ millions 25.4 32 - 37
Exploration (expensed) $ millions 3.7 5
Corporate administration expense (7)
$ millions 5.4 8 - 9
CSR Expense (7)
$ millions 2.8 3 - 3.5
2016 Guidance Revisions as of Q3
• Total mined tonnes reduced from 36.5 – 38.5Mt
due to reduced shovel availability in Q2 and Q3
• Grade mined reduced from 2.75 – 3.25 g/t to
2.50 – 2.75 g/t due to increased recovery of low
grade ore above reserves block model
Gryphon Not Included in Outlook
• Exploration expected to increase by ~$2M
and Capex expected to increase by ~$2M.

31. Q&A

32. Refer to Endnotes (3) and (13) on the second last slide 32
WORLD-CLASS
Gold Belts
in Mining-Friendly
Jurisdictions
SIGNIFICANT
Growth Opportunities
with Expansion into
West Africa
SOLID
Balance Sheet
& Cash Position
STRONG
Life of Mine
Cash Flows(13)
CORNERSTONE
INVESTOR
with Strong Ties
to West Africa
LARGE
Long-Life & Low Cost
Reserve &
Resource Base(3)

33. Appendices

34. Teranga Gold Competent & Qualified Persons Statement
34
The technical information contained in this Report relating to mineral resource estimates for the Company’s Sabodala Gold Operations is based on, and
fairly represents, 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 2004 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 Report of the matters based on her compiled information in the form and context in which it appears in this Report.
Teranga's exploration programs are being 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. 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 Competent Person as defined in the 2012 Edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Mann is a "Qualified Person" under National Instrument 43-101
Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating 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 samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for
diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. 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.
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.

35. Endnotes
1) Total cash costs per ounce and all-in sustaining costs per ounce are non-IFRS financial measures and do not have a standard meaning under IFRS. Total cash costs per ounce and all-in sustaining costs per ounce are
before stockpile inventory value adjustments and government waiver accruals. For more information regarding these measures, please refer to non-IFRS Performance Measures in the Company’s Management’s
Discussion & Analysis for the three and nine months ended September 30, 2016 accessible on the Company’s website at www.terangagold.com.
2) Pro forma cash balance at September 30, 2016 is defined as cash including equity placement in October 2016 by Tablo Corporation of $7.6 million.
3) Teranga’s Sabodala Mineral Reserves and Mineral Resources for estimates as at December 31, 2015 as per Company disclosure. For more information regarding Teranga Gold’s Mineral Reserves and Resources and
related notes, please refer to Teranga Gold’s December Quarter and Year-end 2015 Report accessible on the Teranga’s website at www.terangagold.com.
4) The Mineral resources are as per Gryphon Minerals 2Mtpa Heap Leach Feasibility Study (JORC) released August 4, 2014. Despite the most recent Gryphon Reserve Estimate for the Banfora Gold Project of 826,000
ounces (17.4 Mt at 1.5 g/t) based on a lower capital cost heap leach processing option, Teranga has stated in the press release dated June 19, 2016, and in the Scheme Booklet announced on the ASX on August 17, 2016
and re-confirmed herein that Teranga’s preferred development path for the Banfora Gold Project will be based on an optimized CIL flowsheet. The Proven and Probable Mineral Reserve estimate of 1 million ounces
included in Teranga’s June 19, 2016 press release and herein is based on Gryphon’s CIL feasibility study Mineral Reserve estimate of 1.05 million ounces (16.7 Mt at 1.95 g/t) issued in January 2013. A number of relevant
factors have changed since this estimate was issued by Gryphon Minerals in 2013, and as such and benefitting from an optimization study to be completed by Teranga, we anticipate updating the feasibility study and the
resource and reserve estimates in the first half of 2017. Complete information is available on Gryphon’s website at www.gryphonminerals.com.au and filed on the ASX at www.asx.com.au.
5) 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 October 24, 2016.
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$1,267 SPOT gold
price per ounce, 5% discount, 0.75 USD/CAD exchange rate. For more information regarding Non-IFRS financial measures, please refer to Non-IFRS Performance Measures in the Company’s Management’s Discussion
and Analysis for the three and nine months ended September 30, 2016 accessible on the Company’s website at www.terangagold.com.
6) The production guidance is based on existing proven and probable reserves only from the Sabodala mining license initially reported by Teranga Gold in its NI 43-101 Technical Report dated March 22, 2016. And as
disclosed in Appendix 2 of Teranga Gold’s 2015 Fourth Quarter ASX Report titled “Teranga Outperforms Cost Guidance” issued January 28, 2016 accessible on the Company's website at www.terangagold.com. The
estimated ore reserves underpinning this production guidance have been prepared by a competent person in accordance with the requirements of the 2012 Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the “2012 JORC Code”). Please refer to the Competent Persons Statement available in the ASX Report referenced above.
7) To better align costs with industry peers, during the first quarter 2016 the Company began to present CSR Expense and Regional Administration Costs separately from Corporate Administration Expense. The Company's
2016 guidance has been updated to reflect this change in accounting presentation.
8) Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a Non-IFRS performance measure. Please refer to Non-IFRS Performance Measures in the Company's Management’s Discussion & Analysis
for the three and nine months ended September 30, 2016.
9) Free cash flow and free cash flow per ounce are defined as operating cash flow less capital expenditures. This is a Non-IFRS Performance Measure and does not have a standard meaning under IFRS.
10) Key assumptions: This forecast financial information is based on the following material assumptions for 2016: gold price: $1,200 per ounce; Brent oil:$50/barrel; Euro:USD exchange rate of 1.1:1; USD:CAD exchange rate
of 0.7:1. Other important assumptions include: any political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries will remain consistent with the
life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production.
11) Excludes capitalized deferred stripping costs, included in mine production costs.
12) 22,500 ounces of production are to be sold to Franco-Nevada at 20% of the spot gold price.
13) Cash flow is the Life of Mine net cash flow based on the Company’s most recent NI 43-101 Technical Report (“43-101 plan”) filed in March 2016, before income taxes, interest, debt repayments, closure costs, dividends
and working capital.
35

36. TSX & ASX: TGZ
Trish Moran
Head of Investor Relations
T: +1.416.607.4507
E: investor@terangagold.com
W: terangagold.com
121 King Street West, Suite 2600
Toronto, ON M5H 3T9