2. CAUTIONARY STATEMENT
This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the
meaning of applicable United States securities legislation, which reflects management’s expectations 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”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend”
and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used
to identify such forward looking information. 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. A number of factors could cause actual results, performance or achievements to differ materially from
the results expressed or implied in the forward looking information, including those listed in the “Risk Factors” section of Teranga’s Annual Information Form, dated
March 28, 2012 (the “AIF”). These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking
information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga’s actual
results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking information. Although
Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward
looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly disclaims any intention or
obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with
applicable securities law.
Forward looking information and other information contained herein concerning mineral exploration and management’s general expectations concerning the mineral
exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and
industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently
imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any
misstatements regarding any industry data presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on
various factors.
In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information as they involve the implied assessment,
based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in
its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient
exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource.
This presentation does not constitute in any way an offer or invitation to subscribe for securities in Teranga pursuant to the Corporations Act 2001 (Cth) and has not
been lodged with the Australian Securities and Investment Commission.
2
3. CAPITALIZATION SUMMARY
Ticker symbol: TGZ: TSX/ASX FOCUSED
ON GROWTH
Shares outstanding(1): 245.6M THROUGH:
Stock options outstanding: 17.1M
Share price (as at Jan. 25, 2013): C$2.31
GROWING
Market capitalization :
(as at Jan. 25, 2013) C$567M RESERVES
Cash position(2): US$45.0M GROWING
PRODUCTION
Project finance outstanding(3) US$60M
FINANCIAL
Mining fleet loan facility(4): US$10.5M STRENGTH
Hedge balance (as at Jan. 29, 2013): 38,105oz.
(1) As part of the demerger Mineral Deposits Ltd. retained 40M TGZ shares and received C$50M from the IPO
proceeds
(2) Includes cash, cash equivalents and $5.3M bullion receivable as at December 31, 2012. Numbers unaudited.
(3) 2-Year Project Finance Facility with Macquarie Bank – repaid on or before June 30, 2014
(4) Outstanding under the mining fleet finance loan facility with Société Générale as at December 31, 2012
3
4. OUR VISION
To become a preeminent gold producer in West Africa while setting
the benchmark for responsible mining in Senegal
Phase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000 oz.
of annual gold production leveraging off existing infrastructure
• 2011 production of 131,461oz.
• 2012 production of 214,310oz. at cash costs of $627/oz.
• 2013 forecast production of 190,000 – 210,000oz. at cash costs of $650-$700/oz.
Phase 2: Increase annual gold production to 400,000 to 500,000 oz. with mill
expansion as reserves increase
4
5. SABODALA IS SENEGAL’S ONLY
LARGE-SCALE GOLD MINE
Population of ~12.8M
Democratic Government
• Smooth process and power transition in 2012 elections
• Peaceful democracy since independence from France in 1960
• Use of the eight-country West African CFA France currency fully
guaranteed by the French treasury and pegged to the Euro (WAEMU)
• Sabodala is the only large-scale gold mine in Senegal
Government has vested interest in Sabodala’s success given:
• 10% free-carried interest
• 3% gross production royalty
• 25% income tax (after tax holiday expires in 2015)
• Employment and regional development opportunities
Sovereign Long Term Credit Ratings
• One of only seven African countries rated by Moody’s and S&P
• Moody’s: B1
• S&P: B+
5
6. TERANGA IS MINING RESPONSIBLY
AND SHARING THE BENEFITS
• Corporate Social Responsibility is fundamental to the success
of our business
• Health, safety, education and sustainability are all priorities
• Developing schools, health clinics, and improving access to
potable water
• Have engaged a renowned Canadian group to assist in putting
together a comprehensive Regional Development Plan in
partnership with the local, regional, and national government
• Committed to improving the livelihoods of those in the
communities in which we operate
• A key component of our vision is to set the benchmark for
responsible mining in Senegal
6
7. SABODALA GOLD OPERATION IS
PRODUCING CONSISTANTLY
Gold Production Since 2009
• First gold pour in March ‘09 with over $500M invested to date
Well Developed Infrastructure
• Located 650 km east of the capital Dakar and ~100 km north
of the town Kedougou – paved road within 56 km of mine site
• 36 MW heavy fuel oil power plant located on site
Completed Mill Expansion
• New ball mill and downstream plant, secondary crusher and
new stockpile/reclaim facility commissioned
• Expands annual production base to ~200,000 oz.
• Mill capacity increases to ~3.5Mtpa of fresh (hard) ore or
~6Mtpa of oxide (soft) ore
Modest Incremental Sustaining Capital Going Forward
• US$125M – $150M LOM
• Includes Gora, community relocations, further mobile
equipment expenditure and pit delineation
7
8. 2012 ANNUAL GUIDANCE MET WITH
RECORD PRODUCTION & PROFITS
Increased Gold Production
• FY‘12 214,310oz. – Company record and 63% higher than
calendar year 2011 and within guidance
Reduced Total Cash Costs
• FY‘12 cash costs of $627/oz. – 20% lower than calendar
year 2011 and within guidance
Reduced Gold Hedge Book
• Gold hedges reduced to 38,105oz. as at Jan. 29, 2013
• Expect position to be fully extinguished by Aug’13
Increased Cash and Cash Equivalents(1)
• $45.0M at FYE’12 as compared to $24.6M at FYE’11
(1) Includes cash, cash equivalents and $5.3M bullion receivable (unaudited).
8
9. CONTINUING TO STRENGTHEN THE
ASSET BASE AND THE TEAM
Capital Expenditure
• 2012 - $83M including mill expansion and ML exploration
• 2013 - $25M-$35M planned Capex in addition to $45M -
$50M for Gora development
• Capitalized deferred stripping - $35M - $40M
Larger Gold Inventory Base
• Sabodala: M&I increased to 2.09 Moz.
• Gora: M&I increased to 0.37 Moz. at 5.0gpt
• Niakafiri: M&I increased to 0.39 Moz.
• Mine Licence: Total inferred resources rose to 1.48Moz.
Added Depth to Management Team in Q4‘12
• Mark English: VP, Sabodala Gold Operations
• Paul Chawrun: VP, Technical Services
• Navin Dyal: VP & CFO
9
10. MOST ADVANCED SATELLITE
DEPOSIT - GORA
Open Pit
• 26km from mill
• Technical Study and ESIA complete –
initiating permitting Q1’13
• M&I of 374,000 oz. at 5.0gpt
• Proven & Probable reserves of 285,000oz. at
4.2gpt. (2.1M tonnes of ore)
• Estimated 4 year mine life
• Stripping ratio of 19:1
Economics
• Capital cost est. $45M-$50M
Source – Typical section of Gora looking South West, 2012.
• Est. total cash cost to average $675-$700/oz.
• NPV (5%) at $1500/oz. of $105 million
• IRR 69%
10
11. FOCUSED ON GROWING
PRODUCTION AND CASH MARGINS
Production Profile ('000oz.)(1) Cash Margin ($/oz)(2)
300,000 1000
250,000
800
200,000
600
150,000
400
100,000
200
50,000
- 0
2011 2012 2013 2014 2015 2011 2012 2013* 2014 2015
Rate of margin expansion is a function of increasing
Gora Production ML Production
production through regional exploration success
* After eliminating hedge position
• 2012 Production Results: 214,310oz. at cash costs of $627/oz.
• Jan. 29th, 2013 hedge position 38,105oz., management expects to be hedge free Aug. 2013
(1) Assumes increased production from regional exploration success
(2) Assumes $1600/oz. gold price and cash cost of $675/oz. after the elimination of the gold hedge position 11
12. FOCUSED ON GROWING RESERVES
Reserves and Resources(1,2,3)
December 31, 2012
3.50
3.00
2.50 2.87
2.00
Moz.
1.50
1.67
1.59
1.00
0.50
0.00
Proven and Measured and Inferred Resources
Probable Reserves Indicated
Resources
(1) See pages 21/22
(2) M+I Resources are inclusive of reserves
(3) Includes Sabodala, Niakafiri, Niakafiri West, Soukhoto, Diadiako, Majiva, Masato and Gora
12
13. FOCUSED ON GROWING RESERVES
2013 Exploration Program(1)
Mine Licence Exploration (ML) $5-10M
13,000m RAB 32,400m RC 13,100m DD
Regional Exploration (RLP) $10-15M
82,000m RAB 32,600m RC 14,500m DD
TOTAL ~$20M
2012 Exploration Program(2)
Mine Licence Exploration $26M
104,400m (RC/DD)
Regional Exploration(3) $20M
62,500 RAB 42,300 RC 2,400 DD
TOTAL $46M
(1) Additional funding allocated on a priority basis for prospects with clear potential for reserve definition
(2) Full drill results are posted at terangagold.com
(3) Includes ~$3M for Gora exploration
13
14. MINE LICENCE MAKES UP ~3% OF
TERANGA’S TOTAL LAND PACKAGE
Mine Licence Exploration (ML) Regional Land Package (RLP)
33km2 1,200km2
14
15. POTENTIAL TO EXPAND THE ML
GOLD MINERALIZATION INVENTORY
• Potential to expand gold inventory on ML with the
33km2 objective of increasing mine life to the year 2020/25
SABODALA PIT –
MAIN FLAT EXTENSION /
LOWER FLAT ZONE
SAMBAYA HILL
SUTUBA
DINKOKHONO
NIAKAFIRI / NIAKAFIRI WEST /
SOUKHOTO
15
16. PROPERTIES IN VARYING STAGES
OF ASSESSMENT WITHIN RLP
1,200km2 NINYENKO /
SORETO
DIABOUGOU
SAIENSOUTOU
TOUROKHOTO
(Main and Marougou)
35km from Mill
GOUMBOU GAMBA
GORA
16
17. FOCUS IS ON CONTINUED GROWTH
Focused on Growing Reserves
• To secure a reserve life to year 2020/25
• Growth through exploration
• Growth through regional opportunities (JV’s, acquisitions)
Focused on Growing Production
• Phase 1: 250,000 – 350,000oz. annual production by
leveraging existing mill and land package
• Phase 2: 400,000 – 500,000oz. annual production, will
require another mill expansion
Focused on Building Financial Strength
• Eliminating hedge book
• Expanding cash margins
• Increasing cash balance
• Use free cash flow to self-fund growth strategy
• Focusing on the ounces that provide the best returns
• Increase earning and cash flow per share (minimize dilution)
17
19. OPERATING STATISTICS
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
Quarter Quarter Quarter Quarter Quarter
Ore mined (‘000t) 2,038 655 2,105 1,117 1,715
Waste mined (‘000t) 5,274 6,242 5,130 6,316 4,736
Total mined (‘000t) 7,312 6,897 7,235 7,433 6,451
Grade mined (g/t) 2.04 1.92 2.25 1.38 1.50
Ounces mined (oz) 133,549 40,516 152,603 49,517 82,710
Strip ratio w aste/ore 2.6 9.5 2.4 5.7 2.8
Ore processed (‘000t) 725 650 491 573 604
Head grade (g/t) 3.40 3.11 3.22 2.52 2.10
Gold recovery (%) 90.7 84.6 89.6 90.0 89.8
(1)
Gold produced (oz) 71,804 55,107 45,495 41,904 36,695
Gold sold (oz) 71,604 62,439 38,503 35,268 34,665
Average price received $/oz 1,296 1,290 1,608 1,712 1,482
Total cash costs per ounce sold
(2) $/oz 623 594 645 673 809
(including royalties)
(1) Gold produced includes change in gold in circuit inventory plus gold recovered during the period.
(2) Total cash costs per ounce sold for 2011 were restated to comply with the Company’s new accounting
policy for measuring and recording ore stockpile costs, as well as reporting total cash costs after
inventory movement, in line with the Company’s accounting policies and industry standards.
19
20. 2013 GUIDANCE
Year ending Decem ber 31,
2012 2013
Actuals Guidance Range • Mining and processing more tonnes at
Operating results
Ore mined (‘000t) 5,915 4,000 - 4,500 lower grade to maintain ~200,000oz.
Waste mined (‘000t) 22,962 31,000 - 32,000
Total mined (‘000t) 28,877 35,000 - 36,500 Production
Grade mined (g/t) 1.98 1.40 - 1.60
Strip ratio w aste/ore 3.9 7.00 - 7.75
Ore milled (‘000t) 2,439 3,300 - 3,400
Head grade (g/t) 3.08 2.00 - 2.15
• Gross costs have increased but unit
Recovery rate
Gold produced
%
(oz)
88.7
214,310
89.0
190,000
-
-
91.0
210,000
costs are expected to decline
Gold sold (oz) 207,814 190,000 - 210,000
Total cash cost (incl. royalties) (1)(2) $/oz sold 627 650 - 700
Mining (cost/t mined) 2.71 2.50 - 2.70
Milling (cost/t milled) 20.39 19.00 - 20.00
G&A (cost/t milled) 6.16 5.00 - 6.00
Capital Expenditures
Mine site $ millions 20.00 - 25.00
Capitalized reserve development $ millions 5.00 - 10.00
Gora development costs $ millions 45.00 - 50.00
Mobile equipment $ millions 30.00 - 35.00
Site development $ millions 15.00 - 20.00
Capitalized deferred stripping(2) $ millions 35.00 - 40.00
Exploration (expensed) $ millions 10.00 - 15.00
Adm inistration expense $ millions 15.00 - 20.00
Hedge deliveries (oz) 59,789
(1) Total cash cost per ounce is a non-IFRS financial measure with no standard meaning under IFRS
(2) For 2013, reflects impact of new IFRS standard for deferred stripping
20
21. RESOURCE ESTIMATES – YE 2012
Measured Indicated Measured and Indicated
Deposit Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 28.06 1.24 1.12 31.47 0.96 0.97 59.53 1.09 2.09
Sutuba - - - 0.50 1.27 0.02 0.50 1.27 0.02
Niakafiri 0.30 1.74 0.02 10.50 1.10 0.37 10.70 1.12 0.39
Gora 0.49 5.27 0.08 1.84 4.93 0.29 2.32 5.00 0.37
Total 28.85 1.32 1.22 44.31 1.16 1.65 73.05 1.22 2.87
Inferred
Area Tonnes Grade Au
(Mt) g/t (Moz)
Sabodala 12.36 0.87 0.35
Niakifiri 7.20 0.88 0.21
Niakifiri West 7.10 0.82 0.19
Soukhoto 0.60 1.32 0.02
Gora 0.21 3.38 0.02
Diadiako 2.90 1.27 0.12
Majiva 2.60 0.64 0.05
Masato 19.18 1.15 0.71
Total 52.15 1.00 1.67
Note: Please see page 26 for Competent Persons Statement relating to this reserves estimate.
21
22. RESERVE ESTIMATES – YE 2012
Proven Probable Proven and Probable
Deposit Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 6.55 1.5 0.315 11.07 1.24 0.443 17.62 1.34 0.758
Sutuba - - - 0.37 1.4 0.017 0.37 1.40 0.017
Niakafiri 0.23 1.69 0.013 7.58 1.12 0.274 7.81 1.14 0.287
Gora 0.57 4.07 0.074 1.53 4.27 0.21 2.1 4.22 0.284
Stockpiles 7.32 1.02 0.24 - - - 7.32 1.02 0.24
Total 14.67 1.36 0.642 20.56 1.43 0.944 35.23 1.40 1.586
Note: Please see page 26 for Competent Persons Statement relating to this reserves estimate.
22
23. 2013 PLANNED MINE LICENCE
EXPLORATION PROGRAM
Target RAB RC DD
(metres) (metres) (metres)
Sabodala Pit 3,000 9,000 1,500
Niakafiri - 1,500 2,800
Niakafiri West 5,000 5,000 3,000
Niakafiri East - 1,000 -
Dinkokhono - 6,600 -
Dinkokhono North - 800 800
Sutuba South - 2,000 1,000
Masato North - 1,500 -
Sambaya Hill - 2,500 2,500
Soukhoto 5,000 2,500 1,500
23
25. MANAGEMENT
Alan R. Hill • Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine development
as Executive VP of Barrick Gold
Executive Chairman • 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 • Over 10 years experience in mining finance, development, corporate development, and investor relations with
Barrick Gold
President & CEO • Former VP and CFO of Gabriel Resources (2005 – 2010)
Mark English • 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
VP, Sabodala Operations development, inclusive of greenfield start-ups
• Joined Mineral Deposits Ltd. in June 2006
Paul Chawrun • Mining Engineer and geologist with over 24 years experience
• Former EVP Corporate Development for Chieftain Metals
VP, Technical Services • Former Director, Technical Services Detour Gold
Navin Dyal • Over 13 years in finance, most recently 7 years with Barrick Gold (2005 - 2012)
• Former Director of Finance, Global Copper Business Unit – Barrick Gold
VP & CFO • Chartered Accountant – Four years at major public accounting firm
David Savarie • Over 10 years experience in the legal industry
• Former Deputy General Counsel and Corporate Secretary of Gabriel Resources
VP, General Counsel & Corporate • Previously in private practice at Miller Thomson LLP
Secretary
Kathy Sipos • 10 years experience in Corporate Communications and Investor Relations with Barrick Gold (1996 – 2006)
• Former VP of Corporate Communications and Investor Relations of Gabriel Resources (2006 – 2009)
VP, Investor & Stakeholder Relations
Macoumba Diop • Geological Engineer, Master of Science in Finance with over 12 years experience in mining industry
• Previously spent 11 years in a consulting business and mineral project marketing and development
General Manager & Government • Joined SGO in July 2011.
Relations Manager
25
26. COMPETENT PERSONS STATEMENT
Julia Martin, P.Eng., MAusIMM (CP), with AMC Mining Consultants (Canada) Ltd., who is independent of Teranga, is a “qualified person” as
defined in NI 43-101 and a “competent person” as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Ms Martin has reviewed and accepts responsibility for the reserve estimate disclosed above. Ms Martin
has consented to the inclusion of this information in the form and context in which it appears in this Quarterly Report.
The technical information contained in this Quarterly Report relating to the mineral resources is based on information compiled by Ms. Patti
Nakai-Lajoie, who is a member of the Association of Professional Geoscientists of Ontario. She is a Qualified Person under National Instrument
43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion of this information in the form and context in
which it appears in this Quarterly Report. Ms.Nakai-Lajoie is a full-time employee of Teranga and not considered to be independent of Teranga.
The technical information contained in this Quarterly Report relating to the regional exploration is based on information compiled by Mr. Martin
Pawlitschek, who is a member of the Australian Institute of Geoscientist. He is qualified as a Competent Person as defined in the 2004 Edition of
the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and is a ”qualified person” as defined in NI 43-
101. Mr. Pawlitschek has consented to the inclusion of this information in the form and context in which it appears in this Quarterly Report. Mr.
Pawlitschek is a full-time employee of Teranga and not considered to be independent of Teranga. Generally Ms. is used in reporting, and is
consistent with other sections of the document.
26
