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
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. SENEGAL COMPARES FAVOURABLY TO
OTHER AFRICAN GOLD MINING JURISDICTIONS
IN TERMS OF SECURITY AND POLITICAL RISKS
Source: Control Risks, RiskMap 2014
14
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. 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
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. 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. 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. 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. 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. 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
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. COMBINED RESERVES AND RESOURCES
Note: Please see 2013 Financial Report and MD&A, 2013 for Resource and Reserve estimate assumptions
27
28. COMBINED RESERVES AND RESOURCES
Note: Please see ASX Fourth Quarter Report, 2013 for Resource and Reserve estimate assumptions
28
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
