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 the prospectus of Teranga, dated November 11, 2010 (the “Prospectus”).
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. The forward looking information is stated as of
the date of the Prospectus and, except as required under applicable laws, Teranga assumes no obligation to update or revise such
information to reflect new events or circumstances.
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.
2
3. Capitalization Summary
Ticker symbol: TGZ: TSX/ASX
Shares outstanding (1): 245.6 million
Stock options outstanding: 14.4 million
Share price (as at June 1, 2011): [C$2.61] Sabodala 18.7 MM
Gold shares of
Market capitalization: [C$641million] (Mauritius) Oromin
Limited (13.8%)
40 MM
Cash position(2): US$93.8 million(3) 20%
Debt position (2)(4): US$21.5 million 90% Interest
in Sabodala
Gold Project
Net cash position (2): US$72.3 million
(10% free-carried
interest held by
Govt. of Senegal)
(1) As part of the demerger Mineral Deposits Ltd. retained 40 million TGZ shares and received C$50 million from the IPO proceeds.
(2) As at March 31,2011 3
(3) Includes short-term investments and restricted cash (4) US$23.6 MM drawn under the mining fleet finance lease facility with Societe Generale.
5. Sabodala Gold (Senegal)
• Sabodala is the only large scale gold
mine in Senegal
• Senegal
– Mining Code passed in November 2003
– Successful democracy
– Stable political environment
– Estimated population of 13.7 million
– Mining friendly regime
– Government holds 10% free-carried interest
in Sabodala and 3% royalty
– Tax-free holiday that ends May 2015
5
6. Sabodala Gold Operations
• First gold pour in March 2009
– Approx. cost of $330M
• Mill expansion from 2 MM tpa to ~4 MM
tpa underway
– Est. 140,000 oz Au production 2011 expanding
to >200,000 oz Au
– Expected to be completed early 2012 at a cost
of US$56 MM
• Well developed infrastructure
– Located 650 km east of the capital Dakar and
96 km north of the town Kedougou
– 30 MW heavy fuel oil power plant located on
site (36 MW with mill expansion)
– Auxiliary water source
6
7. Sabodala Gold Production
Production Statistics
3 m onths ended March 31, 6 m onths ended March
2011 31, 2011
Ore mined („000t) 491 1,457
Waste mined („000t) 6,460 10,618
Total mined („000t) 6,951 12,075
Strip ratio w aste/ore 13.2 7.3
Ore processed („000t) 608 1,195
Head grade (g/t) 1.93 2.01
Gold recovered (oz) 34,296 70,170
Gold produced (1) (oz) 36,402 70,050
Gold sold (oz) 39,490 72,946
Average price received $/oz 1,199 1,180
Total cash cost (incl. royalties) $/oz 655 713
Mining (cost/t mined) 1.7 2.1
Milling (cost/t milled) 15.3 15.6
G&A (cost/t milled) 4.7 4.9
(1) Gold produced is gold poured and does not include gold-in-circuit at period end.
Calendar Year 2011
•Est. production 140,000 oz at $750 - $775/oz
•CapEx $59.5M
Calendar Year 2012
•Est. production 220,000 oz at $575-$625/oz
•CapEx ~ $25M
7
8. Highlights
During the first full quarter, the Company:
Increased reserves and provided reserve guidance
Increase production and lowered cash cost guidance for 2011 and 2012
Redesigned pit
Committed to take Gora from exploration into development
Ramped up exploration program
Expect consistent news flow
Expect more discoveries on the Regional Land Package
Focused on adding reserves
8
10. Kedougou-Kenieba Inlier – A Birimian Greenstone Belt
Gold Reserves and Resources(1)
2,100
Reserve/Resource (000's oz)
1,800
2,254
1,500
(@1.33 g/t)
1,200
1,51
900
(@1.47 g/t)
600 774
300 (@1.06 g/t)
0
(3)
Proven and Measured and Inferred
(2)(3)
Probable Indicated
(1) See Appendix page 27
(2) M+I resources are inclusive of reserves
(3) As at June 30, 2010, see Sabodala Technical Report 10
11. Exploration Program
Exploration Program (Calendar 2011)
SSC
1. Mine License Exploration:
$8 MM (~60,000m)
(YTD 15,000m)*
2. Regional Exploration:
$17 MM (~80-90,000)
( YTD 14,400m)*
TOTAL: US$25 MM (140-150,000m)
* Majority of assays are pending
11
12. 1. Mine License Exploration 2. Regional Exploration
Budget: $8 M Budget: $17M
35 KM radius
GORA
12
13. 1. Sabodala Mine License Exploration
• US$8 MM exploration program is underway on the Sabodala Mine License(1)
• 10 targets identified for follow up
• Potential to expand proven and probable reserves from 1.51 Moz gold to 2 to 3 Moz gold over the next
12 to 24 months increasing the mine life to ~ 10 to 15 years
“The Corridor”:
• Continuation of the main Sabodala
structural trend to the north
Sambaya Hill:
• Confluence of Niakafiri Shear Zone
with Main Flat from Sabodala and
Masato Shear
Masato Extension:
• Continuation of Masato deposit
Niakafiri, Niakafiri West &
Soukhoto:
• Down-dip extension of Niakafiri,
strike extension of Niakafiri West
and Soukhoto
13
(1) to be completed by June 30, 2011
14. Sabodala Mine License – „The Corridor‟
SABODALA STRUCTURAL TREND
(“The Corridor”)(1)
•Northerly trending extension of Sabodala pit
•Mineralization traced more than 100m north of the existing
pit along trend
Mylonite
Ayoub’s
Shear Zone
Thrust •Open to north and west
•Drilling intersected wide widths of alteration similar to
Sabodala and Niakafiri
•Drilling 20m centres
•Plan is to conduct 10,800 metres of RC and Diamond
drilling to test target at depth and along strike
•Expect resources defined to be converted to reserves in
2011
Sabodala Pit
(1) Please note that the target “Sabodala Structural Corridor”, was previously identified as 3 separate targets in the September 27, 2010 Sabodala Technical Report but
now has been consolidated to 1 target which therefore brings the total Mining Lease targets to 10. 14
15. Sabodala Mine License – Masato / Sambaya Hill Target
MASATO / SAMBAYA HILL
•Masato structural trend (1.6 Moz on Oromin JV) strikes
across onto SGO license
•Plan to conduct 5,000 metres of RC and Diamond drilling
to define structural trend and test structure at depth
•Initially being tested over a 500 metre strike length, 20 drill
Sabodala Pit holes totaling 6,150 metres of drilling
Masato Down Dip
•First drill hole SMRC055
Sambaya Hill • 11m of 1.08 g/t from 234m down hole
• 20m of 3.53 g/t from 267m down hole
• Will be extended with core as part of
program
•Multiple mineralized zones have been identified with high
grade intervals apparent from aqua regia assays conducted
Masato Extensions
on site
•Expect to define new resources in calendar 2011
• Sambaya Hill - Trend defined by an IP and geochemical
anomaly
15
16. 1. Mine License Exploration 2. Regional Exploration
Budget: $8 M Budget: $17M
35 KM radius
GORA
16
17. 2. Regional Exploration
• From 2007 – 2009, no significant drilling was
done on the 1,455 km2 Regional Land Package
due to cash constraints
• There are 27 drill targets identified to drill by
end of year; drilling program (US$17M)
35 KM radius
currently underway
“The Donut”
• 14,400m of DD and RC and 34,600m of RAB
drilling completed March 31, 2011 Gora GORA
• 10 drill rigs are currently on the Regional Land
Package
• All targets in trucking distance of the existing
mill Tourokhoto
Toumboumba
17
18. Gora – High-Grade Quartz Vein System
•Most advanced target: moving from exploration to development
•Inferred resource of 106,000 oz @ 6 g/t Au
•22 km from Sabodala mill
•Increased exploration budget for 2011
•800m strike length auriferous quartz vein, outcropping
•Deposit open in all directions
•4 active drill rigs (3 DD, 1 RC/DD)
•2011 drill program:
• Significant increase in mineralized envelopes relative to 2010
RC drill program
• Now understood to be a stacked vein system (vs. single-vein)
• Vein 1 extended (currently 8.8 g/t Au)
• Vein 2 now more continuous (3.0 g/t Au)
• Vein 3 now important mineralized body
• Vein 5 discovered just below Vein 1
• Excellent potential for bulk style mineralization
• Based on positive drill results, drill program has been expanded
by an additional 4,500m
• 6,000m RC, 4,000m DD remain to be drilled to complete
current phase, scheduled for late summer 2011
18
19. Gora – High-Grade Quartz Vein System
•Selected latest results include:
• 5m @ 33.7 g/t from 111m (Vein 1)
• 2m @ 61.3 g/t from 126m (Vein 1)
• 3m @ 26.7 g/t from 154m (Vein 1)
• 3m @ 47.7 g/t from 164 m (Vein 5)
• 1m @ 33.0 g/t from 156m (Vein 4)
• 4m @ 10.7 g/t from 145m (Vein 2)
• 1m @ 51.8 g/t from 112m (Vein 2)
• 9m @ 3.2 g/t from 87m (Vein 1)
•Current program designed to a vertical depth of 120m and 130m along strike
•Step out exploration drilling beyond described above to test key structural intersections has commenced with a minimum
2,400m DD drill program
•Induced polarization (“IP”) survey is has commenced over the Gora deposit ensuring significant coverage along the structures
•Expect to bring resource to reserve by end of calendar 2011 with the goal of processing high-grade ore as soon as late 2012
19
20. Toumboumba
•Newest target drilled, promising early results
•Located 10 km NW from Sabodala mill
•Alteration hosted mostly in granite
•26,000m RAB drilling completed in April/May including:
• 6m @ 18.85 g/t, including 4m @ 27.7 g/t
• 10m @ 2.35 g/t, including 2m @ 9.69 g/t
• 8m @ 5.45 g/t, including 2m @ 17.75 g/t
•Significant widths of ore mineralization were encountered
in western portion of anomaly, RAB holes grading >0.5 g/t
•Oxide mineralization of up to 50m in depth
•If heap leachable, production could be fast tracked without
displacing material from Sabodala mill
•Early RC drilling follow-up (8 holes)
•Aqua regia results for 4 holes including:
• 3m @ 6.13 g/t, including 1m @ 15.44 g/t
• 3m @ 11.99 g/t, including 1m @ 25.2 g/t
20
21. Diegoun North – “THE DONUT”
Sabodala Ore Body •7km x 4 Km complex of gold anomalism
•Contrasting rock types, porphyries, granites, dolerite & sediments
•Rock samples to 80 g/t Au
•RAB drilling has defined gold mineralization in bedrock
CINNAMON
•5000m of RC allocated, early RC planned over RAB anomalies
JAM
JAM
HONEY
HONEY
•19,000m RAB drill program commenced at Cinnamon – 11,000m
completed
•10,000m first pass RC drilling with 17 RC holes (2,300m)
•Several intervals of anomalous gold identified: widths up to 40m
21
22. Tourokhoto
•>5Km long, up to 1Km wide gold anomaly defined by termite sampling
•Parallels NE trending shears of the MTZ
•3 Moz Massawa deposit hosted on MTZ about 25Km south
•>240 ppb Au contours coincide with areas where MTZ shears are
intersected by later NE fault structures
•Rock sampling returned up to 10 g/t Au from sparse outcrop
•Wide zones of sheared sediments and quartz-feldspar porphyries
observed
•Quartz tourmaline Veining observed
•Commenced 23,000m RAB drill program over 5km gold geochemical
anomaly
•13,000m of RAB drilling completed to date
•Program will define bedrock gold bearing zones
•Program will provide targets for follow up DD and RC drilling
•Commenced 1,600m, 5-hole DD program
•Identified significant gold-bearing structure and alteration
•Follow-up continues
22
23. Goundamekho - Extensive Surface Gold Workings on Structures
• 35 RC holes for 4,200m completed
• Multiple gold bearing structures warrant follow-up drilling
Gold from Trenches
75g nugget from artisan workings
23
24. Exploration Team / On Site Assay Lab
Mapping Trenches at Dembala Berola Part of team at Exploration Office Mapping at Makana
Niang, Database and GIS
Management Field Work Sounkounkou On site assay lab
Structural Mapping Geochem Sampling Team at Makana RC Drilling at Bransan
24
26. Summary World-class asset in its early stages
1. Experienced Management Team
2. Senegal West Africa – 1,488km2 land position
• Largest land position in Senegal
3. Operating mine and mill
4. Planned mill expansion
• from 2Mtpa to ~4Mtpa
• increasing gold production (Est. 2011: 140,000 oz; Est. 2012: 220,000 oz)
5. Aggressive exploration program
• US$25M to be spent in calendar 2011
• ~15 drill rigs
26
28. Appendices
Competent Persons Statement
The technical information contained in this release relating to exploration activities within the mining license is based on information compiled
by Mr. Bruce Van Brunt, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional
geologist in the State of Washington, USA. 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 as a Qualified Person as defined in NI43-101. Mr. Van Brunt
is a full-time employee of Teranga. The technical information contained in this release relating to the regional exploration is based on
information compiled by Mr. Martin Pawlitschek, who is a geologist and a member of the Australian Institute of Geoscientists. Mr.
Pawlitschek is also 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 as a Qualified Person as defined in NI43-101. Mr. Pawlitschek is a full-time employee of
Teranga.
The latest grade estimates as presented have been classified as a combination of Measured, Indicated and Inferred Mineral Resources in
accordance with CIM Definitions (2005) resource reporting classification guidelines and reconciled to the JORC Code (2004).
Mssrs. Van Brunt and Pawlitschek have consented to the inclusion of the technical information in the form and context in which it appears in
this presentation. Mssrs Van Brunt and Pawlitschek have reviewed and verified the data contained in this presentation, including sampling,
analytical and test data underlying the estimates provided. Verification of the data included numerous site visits, database validation of
historical drill results and review of sampling and assaying protocols.
29. Sabodala Gold Project: Reserves & Resources
Ore Grade Contained Gold
(000 tonnes) (g/t Au) (000 oz Au)
Proven & Probable
Sabodala 24,350 1.57 1,231
Niakafiri 7,623 1.15 281
Total 31,973 1.47 1,512
Measured & Indicated
Sabodala 41,892 1.39 1,869
Niakafiri 10,741 1.12 386
Total 52,633 1.33 2,254(1)
Inferred Resources
Sabodala 7,310 1.22 287
Niakifiri 7,248 0.88 205
Niakifiri West 7,144 0.82 188
Soukhoto 566 1.32 24
Gora 387 5.60 70
Total 22,655 1.06 774(1)
(1) See the Sabodala Technical Report ; #‟s as at June 30, 2010
29
30. Non-Deferred Hedge Schedule
Delivery Date Price US$/oz Ounces
18-May-2011 846.00 10,000
17-Aug-2011 846.00 18,500
17-Nov-2011 846.00 18,500
17-Feb-2012 846.00 28,000
17-May-2012 846.00 28,000
15-Aug-2012 846.00 27,500
21-Nov-2012 832.92 25,000
20-Feb-2013 832.92 25,000
17-May-2013 790.66 25,000
21-Aug-2013 791.50 16,000
Total 833.00 221,500
Note: See page 40 of the Prospectus
30
31. Management & Board
• Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine
development as Executive VP of Barrick Gold
Alan R. Hill
• Currently a Director of Gold Fields
Executive Chairman & CEO
• Former President and CEO of Gabriel Resources (2005 – 2009) and non-Executive Chairman of
Alamos Gold (2004 – 2007)
• Over 10 years experience in mining finance, development, corporate development, and investor
Richard S. Young
relations with Barrick Gold
President & CFO
• Former VP and CFO of Gabriel Resources (2005 – 2010)
• Mining engineer with over 20 years experience in property valuation, scoping, feasibility studies and
Christopher R. Lattanzi project monitoring on a global basis
Director • Currently a Director of Argonaut Gold and Spanish Mountain Gold
• Founding member and former president of Micon International (1988 – 2005)
• Over 30 years experience in the mineral resource industry with a wide range of experience in financing,
research and marketing
Oliver Lennox-King • Non-Executive Chairman of Fronteer Gold and director of CGX Energy
Director • Instrumental in the formation of Southern Cross Resources (1997), former President of Tiomin
Resources (1992 – 1997)
• MDL Director not standing for re-election
• Director/Trustee and CFO of Labrador Iron Ore Royalty
Alan R. Thomas
• Former Director of Gabriel Resources (2006 – 2010), CFO of ShawCor (2000 – 2006), and CFO of
Director
Noranda (1987 – 1998)
• Over 25 years experience as a director and senior officer of, and legal counsel to, a number of Canadian
public mining companies and has extensive legal and business experience in the mineral industry,
particularly in the areas of public financing, project debt financing, permitting of large scale mining
projects, and strategic mergers and acquisitions in the international minerals industry
Frank Wheatley
• Currently the Executive Director, Corporate Affairs and Strategy of Talison Lithium Limited
Director
• Currently a director of Lithic Resources Ltd. and Portal Resources Ltd.
• Former Vice-President and General Counsel of Gabriel Resources Ltd. (2000 - 2009)
• Former Vice President, Legal Affairs of Eldorado Gold Corporation
31
