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PRODUCING
AND
EXPLORING
OCTOBER 2012




               1
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
CAPITALIZATION SUMMARY
Ticker symbol:                                                        TGZ: TSX/ASX                            FOCUSED
                                                                                                              ON GROWTH
Shares outstanding(1):                                                245.6M

Stock options outstanding:                                            16.5M                                   FOCUSED ON:

Share price (as at Oct. 26, 2012):                                    C$2.37
                                                                                                              GROWING
Market capitalization:                                                C$582M                                  RESERVES

Cash position(2):                                                     US$14.8M                                GROWING
                                                                                                              PRODUCTION
Debt outstanding(3)                                                   US$60M
                                                                                                              FINANCIAL
Mining fleet loan                   facility(4):                      US$15.0M                                STRENGTH




(1) As part of the demerger Mineral Deposits Ltd. retained 40 million TGZ shares and received C$50 million
from the IPO proceeds
(2) Includes short-term investments, as at September 30, 2012
(3) 2-Year Loan 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 September 30, 2012
                                                                                                                            3
OUR VISION




To become a preeminent gold producer in West Africa while setting the benchmark
for responsible mining

Phase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000
         ounces(1) of annual gold production with existing infrastructure

                  •     2011 production of 131,461 ounces
                  •     2012 forecasted production of 210,000 – 225,000 ounces at cash costs of $600-$650/oz


Phase 2: Increase annual gold production to 400,000 to 500,000 ounces(1)

(1) See Key Assumptions on page 27


                                                                                                               4
OVERVIEW OF SENEGAL
•   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 its:
     •   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 both
         Moody’s and S&P
     •   Moody’s: B1
     •   S&P: B+

              Sabodala is the only large-scale gold mine in Senegal
                                                                      5
CORPORATE
SOCIAL RESPONSIBILITY
•   CSR is fundamental to the success of our business

•   Health, safety, education, sustainability

•   Developing schools, health clinics, and improving access to
    potable water

•   Engaged a renowned Canadian group to assist us in putting
    together a comprehensive Regional Development Plan
       •  Along with local, regional, and national government

•   Improve the livelihoods of those in the communities in which we
    operate

•   A key component of our vision is to set the benchmark in
    Senegal for responsible mining


Mining Responsibly and Sharing the
Benefits


                                                                      6
GROWTH STRATEGY
FOCUSED ON GROWING RESERVES(1)
•       Objective: 15+ year mine life

    •     Growth through exploration
    •     Growth through regional opportunities (JV’s, acquisitions)

FOCUSED ON GROWING PRODUCTION(1)
    •     Phase 1: 250,000 – 350,000 oz annually
              – leveraging existing mill, land package all truckable
    •     Phase 2: 400,000 – 500,000 oz annually
              – requires another mill expansion

FOCUSED ON BUILDING FINANCIAL STRENGTH
    •     Eliminating hedge book – quickly but prudently
    •     Maintain cushion in cash balance
    •     Margin expansion (lower costs and eliminate hedge)
    •     Free cash flow to self-fund exploration strategy
    •     Manageable capex requirements
    •     Focused on ounces that provide the best returns

(1) See Key Assumptions on page 27
                                                                       7
SABODALA GOLD
OPERATIONS
•    First gold pour in March 2009
    • $500M invested to date

•    Mill expansion from 2 Mtpa to ~ 4 Mtpa complete
    • New ball mill and downstream plant commissioned
    • Secondary crusher and new stockpile/reclaim facility
       commissioned end of Q2 – bringing mills to full capacity
    • Expands annual production base to ~200,000 oz

•    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

•    Modest incremental sustaining capital going forward




                                                                  8
Q3 2012 – KEY POINTS
•       Production: 55,107 oz of gold
          • Company record
          • 103% higher than Q3‘11

•       Total cash costs of $594/oz
          • 36% lower than Q3‘11

•       2012 guidance reiterated
          • Production: 210,000 - 225,000 oz
          • Cash costs of $600 - $650/oz1

•       Q3’11 forward gold contract deliveries: 29,000 oz
         • 93,395 oz remaining
         • Expect 66,000 oz to remain at YE
         • Expect position to be fully extinguished by Aug’13




    1 This production target is based on existing proven and probable reserves only

                                                                                      9
FOCUSED ON GROWING
PRODUCTION AND CASH MARGINS
                     Production Profile ('000 oz)                                               Cash Margin ($/oz)(1)
            300,000                                                                   1200


            250,000                                                                   1000


            200,000                                                                    800


            150,000                                                                    600


            100,000                                                                    400


             50,000                                                                    200


                    0                                                                    0
                             2011            2012           2013            2014               2011            2012              2013*   2014
                                                                                             Rate of margin expansion is a function
                             Production         Exploration Success                          of increasing production through regional
                                                                                             exploration success
                             Assumes increased production from regional exploration
                             success                                                         *After eliminating hedge position


          2012 Outlook: 210,000 – 225,000 oz at cash costs of $600 - $650/oz(2)
          YE hedge position expected to be 66,000 oz; hedge free Aug 2013

(1)   Assumes $1600/oz gold price and cash cost of $625/oz
(2)   This production target is based on existing proven and probable reserves only                                                             10
FOCUSED ON
GROWING RESERVES
                  Reserves and Resources(1,2)
                      December 31, 2011
        2.50


        2.00


        1.50
  Moz




                                                   2.14
        1.00                                       Moz
                         1.7
                                                                1.51
                         Moz
                                                                Moz
        0.50


        0.00
                    Proven and             Measured and        Inferred
                     Probable                Indicated        Resources
                     Reserves               Resources


(1) See page 28 (2) M+I Resources are inclusive of reserves
                                                                          11
FOCUSED ON
GROWING RESERVES

2012 Exploration Program:

1. Mine License Exploration: $25M

2. Regional Exploration:                           $15M

      TOTAL:                                       $40M
                                                   (180,000m)
                                                   (+140,000m RAB)


2011 Exploration Program:                          $46M

      ML                                           $14M
      Regional (including Gora)                    $32M




Full drill results are posted at terangagold.com
                                                                     12
MINE LICENSE EXPLORATION
                            Potential to expand gold inventory on ML from
                             1.55 Moz to 2.5 – 3.5 Moz(1,2,3) by mid 2013
                                               “THE CORRIDOR”
                             increasing mine life to ~ 15 yrs
                                                   Continuation of the main Sabodala
                                                      structural trend to the north
                                                      MAIN FLAT EXTENSION
                                               One of the principal gold hosts of the
                                             Sabodala deposit immediately adjacent to
                                                      the current ultimate pit
                                                          LOWER FLAT ZONE
                                                   Deeper area directly below the MFE



                                                         MASATO EXTENSION
                                                      Continuation of Masato deposit


                                                                     NIAKAFIRI
                                              Convert resources to reserves and test at
                                              depth and along strike between deposits

                 (1) Potential to expand existing gold mineralization to between 40 and 50 M tonnes at grades of
                     between 1.5 to 2.0 gpt Au for a total inventory of 2.5 to 3.5 Moz
                 (2) This exploration target is not a Mineral Resource. The potential quality and grade is
                     conceptual in nature and there has been insufficient exploration to define a Mineral
                     Resource. It is uncertain if further exploration will result in the determination of a Mineral
                     Resource.
                 (3) See Key Assumptions on page 27                                                                   13
MINE LICENSE EXPLORATION – SABODALA EXPANSION POTENTIAL



                     Current ultimate pit   End of 2011 mining surface




                                                                         14
MINE LICENSE EXPLORATION – MASATO

                                               • Oromin Joint Venture has identified open pit reserves of
                                                 0.5 Moz about 2 km from our mill

                                               2012
 Main Flat Extension                           • Confirmed strike length of 1,600m and dip extent of
                                                 300m and a band of ~40m of solid grade
                 Masato Down Dip               • Recent results from Masato Down Dip include:
                                                       • 37m at 4.5 gpt; 44m at 2.0 gpt
  Sabodala Pit
                                               2012 Objectives
            Sambaya Hill                       • Infilling 200m x 500m zone identified in 2011 in
                                                 preparation for resource estimate
                                               • Further definition drilling on the high grade pod of gold
                           Masato Extensions
                                                 mineralization
                                               • Locate southern extension of Masato that strikes toward
                                                 our ML
                                               • Expect initial resource by year end




                                                                   Full drill results are posted at terangagold.com
                                                                                                                      15
MINE LICENSE EXPLORATION – NIAKAFIRI


                                  •       Niakafiri area has ~300,000 oz in reserves in
                                          a mineralized envelope of about ~800,000 oz

                                      •     Deposit remains open below 200m level

                                      •     Ongoing community discussions




                                          Dinkokhono



                                           Soukhoto




                                                    Full drill results are posted at terangagold.com
                                                                                                       16
1. MINE LICENSE EXPLORATION (ML)   2. REGIONAL EXPLORATION (RLP)



                 33km2                             1,330km2




                                                                   17
REGIONAL EXPLORATION
                                           “THE DONUT”
                                 Large gold complex (7 km x 4 km), high
                  1,330km2           gold anomalism, early stages


                                                GORA
                                 Most advanced target, high grade quartz
                                   vein, transitioning to development


                                          TOUROKHOTO
                                   Large gold anomaly hosted on Main
                                    Transcurrent Zone, same as 3 Moz
                                            Massawa deposit


                                          TOUMBOUMBA
                                  Newest target, potentially second into
 35km from Mill                    development, oxide mineralization

                             •    ~40 drill targets to be drill tested in
                                  2012/2013
                                    • All truckable to mill
                                    • Further 20 targets to be evaluated
                                       with surface sampling or trenching
                                    • $15M budget
                                                                            18
GORA
 •    Measured and Indicated Resources increased to
      374,000 oz, an increase of 74%

 •    Most advanced target: moving from exploration to
      development

         •     Final feasibility study to be completed in Q4’12
         •     Permitting in 2013

 •    22 km from Sabodala mill, truckable

 •    Reserve update expected by year end (2011 reserves
      of 156,000 oz at 3.12 gpt)



                                                                  Trace of blind veins from RC holes
                                                                  Projected to surface – high correlation with
                                                                  IP trends.




Full drill results are posted at terangagold.com
                                                                                                                 19
TOUMBOUMBA – NEWEST TARGET
• Shear vein system, potential for a small, oxide deposit

• Located 10 km from the Sabodala mill

• 18 close trending gold anomalous zones identified from
  RAB drilling during 2011

• In April, commenced RC program on a 25m x 25m grid
      • 129 holes, 12,000m completed
      • Numerous high grade intersections including 3m
          at 38 gpt

• Project evaluation underway

• The exploration permit has reached it’s natural
  expiration and has not yet been renewed by the
  Senegalese Government




                                                            Full drill results are posted at terangagold.com

                                                                                                               20
• 27 hole RC program, 14,000m, commenced in December
TOUROKHOTO                     2011, completed during Q1 2012

                             • Marougou area most promising, southeast of Tourokhoto
         Sabodala Ore Body     Main Trend Central area

                             • Wide-spaced drilling

                             • Best results include:
                                   • 14m at 3.25 gpt
                                   • 12m at 13.2 gpt
                                   • 8m at 3.6 gpt

                             • Trend of minimum 1,200m, NE direction, westerly dip

                             • Represents discovery of new prospect

                             • Open to north and south

                             • New drill program to infill and extend the zone along
                               strike expected to commence in Q4 or Q1’13
                                                   Full drill results are posted at terangagold.com




                                                                                                      21
DIEGOUN NORTH – “THE DONUT”
                                                   Cinnamon – northern portion of Donut
                                                   • 14 RC holes, 2,500m
                                                   • Results to date include:
          Sabodala Ore Body                              • 8m at 1.9 gpt
                                                         • 15m at 0.5 gpt
                                                         • 6m at 2.8 gpt




                                                   Jam – southern portion of Donut
                                                   • 15 RC holes, 2,900m, 9 DD holes, 2,100m
                                                   • Results returned wide, but low grade mineralized intersections
                                                   • Large-scale, gold-bearing, hydrothermal alteration system

                                                   Donut
                                                   • Massive target, continue to evaluate during wet season,
                                                     determine appropriate follow-up program
Full drill results are posted at terangagold.com
                                                                                                                      22
THREE ISSUES ON IPO
 •   Short mine life
 •   High cash costs
 •   Hedge book

WHAT WE HAVE DONE
 •   Short mine life
     • Extensive exploration program –
       expect to double reserves for ~15
       year mine life

 •   High cash costs
     • 2011:      $900/oz ($728/oz)
     • 2012 Est.: $600 - $650/oz
                                           Focused on delivering
 •   Hedge Book
     • On IPO:     246,500oz
     • Sept. ‘12: 93,395 oz
     • Fully extinguished Aug. ’13

                                                                   23
SUMMARY –
FOCUSED ON
GROWTH


1. Only mill in Senegal

2. Largest land position in Senegal

3. Rising production, declining costs

4. Eliminating hedge book by Aug‘13

5. Building a stronger balance sheet
   – increasing production and free cash flow with margin expansion

6. Extensive exploration program

7. Experienced management team
                                                                      24
PRODUCING
AND
EXPLORING
OCTOBER 2012




               25
APPENDICES




             26
KEY ASSUMPTIONS
Basis for 2.5 – 3.5 Moz gold inventory from Mine License
   Expand upon existing gold mineralization by an additional 20M to 30M tonnes at grades of between 1.5 and 2.0 gpt for a total
    inventory of 2.5 to 3.5 Moz from the Sabodala Mining License (“ML”) by June 30, 2013.
   The larger gold inventory base is expected to result from the success of deepening the Sabodala pit to the north along the
    MFE/LFZ, extension of the Masato pit onto the ML, potential conversion of Niakafiri resources to reserves as well as adding to
    the gold mineralization inventory below these three large open pits.
   This exploration target is not a Mineral Resource. 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.
   The goal of the MFE/LFZ programs is to add 500,000 to 1,000,000 ounces of gold to the open pit mineable gold inventory at an
    average grade between 1.5 – 2.0 gpt, as well as adding underground gold inventory at an average grade between 3.0 – 4.0 gpt.
Rationale:
   Recent drilling confirms extension of mineralization to the north of the existing pit
   Potential for identification of additional ounces through infill drilling within area of existing resources under the ML
   Minimum 8 drill rigs and exploration budget of US$25M dedicated to ML alone in 2012
   Program to continue to test similar geophysical anomalies and identified structures within the ML




                                                                                                                                                27
SABODALA GOLD PROJECT: RESERVES & RESOURCES
(DECEMBER 31, 2011)
             Proven and Probable Reserves       M tonnes    Grade gpt Au   M oz Au
             Sabodala                               23.12           1.49      1.106
             Niakafiri                               7.81           1.14      0.287
             Stockpile                               4.21           0.94      0.127
             Sutuba                                  0.49           1.27       0.02
             Gora                                    1.56           3.12      0.156
             Total                                 37.19           1.42      1.696
             Measured and Indicated Resources
             Sabodala                               44.4            1.07       1.53
             Niakafiri                              10.7            1.12       0.39
             Gora                                    1.3            5.22       0.22
             Sutuba                                  0.5            1.27       0.02
             Total                                  56.9           1.17       2.14
             Inferred Resources
             Sabodala                               26.2            1.01       0.85
             Niakafiri                               7.2            0.88       0.21
             Niakafiri West                          7.1            0.82       0.19
             Soukhoto                                0.6            1.32       0.02
             Gora                                    0.3            4.16       0.04
             Diadiako                                2.9            1.27       0.12
             Majiva                                  2.6            0.64       0.05
             Toumboumba                              0.9             1.5       0.04
             Total                                  47.8           0.98       1.51




                                                                                      28
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)

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

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

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

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

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

Martin Pawlitschek                • Geologist with over 15 years experience in the mining industry
                                  • Previously spent 11 years at BHP and a number of smaller exploration companies, working in Australia, South
Regional Exploration Manager        East Asia and Africa
                                  • Joined Mineral Deposits Ltd. in July 2007

Bruce Van Brunt                   • Mining engineer and geologist with over 20 years experience
                                  • Previously worked in a number of technical capacities with Placer Dome and Echo Bay Mines
Business Development Manager      • Joined Mineral Deposits Ltd. in March 2006                                                                         29
COMPETENT PERSONS STATEMENT
The information in this presentation relating to the reserve estimate associated with the Sabodala and Niakafiri pits as well as the Stockpiles is based on
information compiled by Ms. Julia Martin, PEng, MAusIMM (CP) who is a full time employee of AMC Mining Consultants Canada and has sufficient experience
which is relevant to the style of mineralisation 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. Martin is a
Qualified Person in accordance with NI 43-101 and consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.

The technical information in this presentation that relates to mineral resource estimates within the Mining License is based on information compiled by Mr. Bruce
Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and not independent. Mr. Van
Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a
"Competent Person" as defined in the 2004 Edition of the “Australasian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves”. Mr. Van
Brunt is a "Qualified Person" in accordance with National Instrument 43-101 and he consents to the inclusion of this information in the form and context in which it
appears in this presentation.

The technical information in this presentation that relates to the exploration results and targets within the regional exploration program are based on information
compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is our full time employee and is not
“independent” within the meaning of National Instrument 43-101. Mr. Pawlitschek 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 2004 Edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Pawlitschek is a “Qualified Person” in accordance with NI 43-101 and he consents to
the inclusion of this information in the form and context in which it appears in this presentation.




                                                                                                                                                                        30

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Producing and Exploring: October 2012

  • 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 Stock options outstanding: 16.5M FOCUSED ON: Share price (as at Oct. 26, 2012): C$2.37 GROWING Market capitalization: C$582M RESERVES Cash position(2): US$14.8M GROWING PRODUCTION Debt outstanding(3) US$60M FINANCIAL Mining fleet loan facility(4): US$15.0M STRENGTH (1) As part of the demerger Mineral Deposits Ltd. retained 40 million TGZ shares and received C$50 million from the IPO proceeds (2) Includes short-term investments, as at September 30, 2012 (3) 2-Year Loan 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 September 30, 2012 3
  • 4. OUR VISION To become a preeminent gold producer in West Africa while setting the benchmark for responsible mining Phase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000 ounces(1) of annual gold production with existing infrastructure • 2011 production of 131,461 ounces • 2012 forecasted production of 210,000 – 225,000 ounces at cash costs of $600-$650/oz Phase 2: Increase annual gold production to 400,000 to 500,000 ounces(1) (1) See Key Assumptions on page 27 4
  • 5. OVERVIEW OF SENEGAL • 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 its: • 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 both Moody’s and S&P • Moody’s: B1 • S&P: B+ Sabodala is the only large-scale gold mine in Senegal 5
  • 6. CORPORATE SOCIAL RESPONSIBILITY • CSR is fundamental to the success of our business • Health, safety, education, sustainability • Developing schools, health clinics, and improving access to potable water • Engaged a renowned Canadian group to assist us in putting together a comprehensive Regional Development Plan • Along with local, regional, and national government • Improve the livelihoods of those in the communities in which we operate • A key component of our vision is to set the benchmark in Senegal for responsible mining Mining Responsibly and Sharing the Benefits 6
  • 7. GROWTH STRATEGY FOCUSED ON GROWING RESERVES(1) • Objective: 15+ year mine life • Growth through exploration • Growth through regional opportunities (JV’s, acquisitions) FOCUSED ON GROWING PRODUCTION(1) • Phase 1: 250,000 – 350,000 oz annually – leveraging existing mill, land package all truckable • Phase 2: 400,000 – 500,000 oz annually – requires another mill expansion FOCUSED ON BUILDING FINANCIAL STRENGTH • Eliminating hedge book – quickly but prudently • Maintain cushion in cash balance • Margin expansion (lower costs and eliminate hedge) • Free cash flow to self-fund exploration strategy • Manageable capex requirements • Focused on ounces that provide the best returns (1) See Key Assumptions on page 27 7
  • 8. SABODALA GOLD OPERATIONS • First gold pour in March 2009 • $500M invested to date • Mill expansion from 2 Mtpa to ~ 4 Mtpa complete • New ball mill and downstream plant commissioned • Secondary crusher and new stockpile/reclaim facility commissioned end of Q2 – bringing mills to full capacity • Expands annual production base to ~200,000 oz • 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 • Modest incremental sustaining capital going forward 8
  • 9. Q3 2012 – KEY POINTS • Production: 55,107 oz of gold • Company record • 103% higher than Q3‘11 • Total cash costs of $594/oz • 36% lower than Q3‘11 • 2012 guidance reiterated • Production: 210,000 - 225,000 oz • Cash costs of $600 - $650/oz1 • Q3’11 forward gold contract deliveries: 29,000 oz • 93,395 oz remaining • Expect 66,000 oz to remain at YE • Expect position to be fully extinguished by Aug’13 1 This production target is based on existing proven and probable reserves only 9
  • 10. FOCUSED ON GROWING PRODUCTION AND CASH MARGINS Production Profile ('000 oz) Cash Margin ($/oz)(1) 300,000 1200 250,000 1000 200,000 800 150,000 600 100,000 400 50,000 200 0 0 2011 2012 2013 2014 2011 2012 2013* 2014 Rate of margin expansion is a function Production Exploration Success of increasing production through regional exploration success Assumes increased production from regional exploration success *After eliminating hedge position  2012 Outlook: 210,000 – 225,000 oz at cash costs of $600 - $650/oz(2)  YE hedge position expected to be 66,000 oz; hedge free Aug 2013 (1) Assumes $1600/oz gold price and cash cost of $625/oz (2) This production target is based on existing proven and probable reserves only 10
  • 11. FOCUSED ON GROWING RESERVES Reserves and Resources(1,2) December 31, 2011 2.50 2.00 1.50 Moz 2.14 1.00 Moz 1.7 1.51 Moz Moz 0.50 0.00 Proven and Measured and Inferred Probable Indicated Resources Reserves Resources (1) See page 28 (2) M+I Resources are inclusive of reserves 11
  • 12. FOCUSED ON GROWING RESERVES 2012 Exploration Program: 1. Mine License Exploration: $25M 2. Regional Exploration: $15M TOTAL: $40M (180,000m) (+140,000m RAB) 2011 Exploration Program: $46M ML $14M Regional (including Gora) $32M Full drill results are posted at terangagold.com 12
  • 13. MINE LICENSE EXPLORATION  Potential to expand gold inventory on ML from 1.55 Moz to 2.5 – 3.5 Moz(1,2,3) by mid 2013 “THE CORRIDOR” increasing mine life to ~ 15 yrs Continuation of the main Sabodala structural trend to the north MAIN FLAT EXTENSION One of the principal gold hosts of the Sabodala deposit immediately adjacent to the current ultimate pit LOWER FLAT ZONE Deeper area directly below the MFE MASATO EXTENSION Continuation of Masato deposit NIAKAFIRI Convert resources to reserves and test at depth and along strike between deposits (1) Potential to expand existing gold mineralization to between 40 and 50 M tonnes at grades of between 1.5 to 2.0 gpt Au for a total inventory of 2.5 to 3.5 Moz (2) This exploration target is not a Mineral Resource. The potential quality and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. (3) See Key Assumptions on page 27 13
  • 14. MINE LICENSE EXPLORATION – SABODALA EXPANSION POTENTIAL Current ultimate pit End of 2011 mining surface 14
  • 15. MINE LICENSE EXPLORATION – MASATO • Oromin Joint Venture has identified open pit reserves of 0.5 Moz about 2 km from our mill 2012 Main Flat Extension • Confirmed strike length of 1,600m and dip extent of 300m and a band of ~40m of solid grade Masato Down Dip • Recent results from Masato Down Dip include: • 37m at 4.5 gpt; 44m at 2.0 gpt Sabodala Pit 2012 Objectives Sambaya Hill • Infilling 200m x 500m zone identified in 2011 in preparation for resource estimate • Further definition drilling on the high grade pod of gold Masato Extensions mineralization • Locate southern extension of Masato that strikes toward our ML • Expect initial resource by year end Full drill results are posted at terangagold.com 15
  • 16. MINE LICENSE EXPLORATION – NIAKAFIRI • Niakafiri area has ~300,000 oz in reserves in a mineralized envelope of about ~800,000 oz • Deposit remains open below 200m level • Ongoing community discussions Dinkokhono Soukhoto Full drill results are posted at terangagold.com 16
  • 17. 1. MINE LICENSE EXPLORATION (ML) 2. REGIONAL EXPLORATION (RLP) 33km2 1,330km2 17
  • 18. REGIONAL EXPLORATION “THE DONUT” Large gold complex (7 km x 4 km), high 1,330km2 gold anomalism, early stages GORA Most advanced target, high grade quartz vein, transitioning to development TOUROKHOTO Large gold anomaly hosted on Main Transcurrent Zone, same as 3 Moz Massawa deposit TOUMBOUMBA Newest target, potentially second into 35km from Mill development, oxide mineralization • ~40 drill targets to be drill tested in 2012/2013 • All truckable to mill • Further 20 targets to be evaluated with surface sampling or trenching • $15M budget 18
  • 19. GORA • Measured and Indicated Resources increased to 374,000 oz, an increase of 74% • Most advanced target: moving from exploration to development • Final feasibility study to be completed in Q4’12 • Permitting in 2013 • 22 km from Sabodala mill, truckable • Reserve update expected by year end (2011 reserves of 156,000 oz at 3.12 gpt) Trace of blind veins from RC holes Projected to surface – high correlation with IP trends. Full drill results are posted at terangagold.com 19
  • 20. TOUMBOUMBA – NEWEST TARGET • Shear vein system, potential for a small, oxide deposit • Located 10 km from the Sabodala mill • 18 close trending gold anomalous zones identified from RAB drilling during 2011 • In April, commenced RC program on a 25m x 25m grid • 129 holes, 12,000m completed • Numerous high grade intersections including 3m at 38 gpt • Project evaluation underway • The exploration permit has reached it’s natural expiration and has not yet been renewed by the Senegalese Government Full drill results are posted at terangagold.com 20
  • 21. • 27 hole RC program, 14,000m, commenced in December TOUROKHOTO 2011, completed during Q1 2012 • Marougou area most promising, southeast of Tourokhoto Sabodala Ore Body Main Trend Central area • Wide-spaced drilling • Best results include: • 14m at 3.25 gpt • 12m at 13.2 gpt • 8m at 3.6 gpt • Trend of minimum 1,200m, NE direction, westerly dip • Represents discovery of new prospect • Open to north and south • New drill program to infill and extend the zone along strike expected to commence in Q4 or Q1’13 Full drill results are posted at terangagold.com 21
  • 22. DIEGOUN NORTH – “THE DONUT” Cinnamon – northern portion of Donut • 14 RC holes, 2,500m • Results to date include: Sabodala Ore Body • 8m at 1.9 gpt • 15m at 0.5 gpt • 6m at 2.8 gpt Jam – southern portion of Donut • 15 RC holes, 2,900m, 9 DD holes, 2,100m • Results returned wide, but low grade mineralized intersections • Large-scale, gold-bearing, hydrothermal alteration system Donut • Massive target, continue to evaluate during wet season, determine appropriate follow-up program Full drill results are posted at terangagold.com 22
  • 23. THREE ISSUES ON IPO • Short mine life • High cash costs • Hedge book WHAT WE HAVE DONE • Short mine life • Extensive exploration program – expect to double reserves for ~15 year mine life • High cash costs • 2011: $900/oz ($728/oz) • 2012 Est.: $600 - $650/oz Focused on delivering • Hedge Book • On IPO: 246,500oz • Sept. ‘12: 93,395 oz • Fully extinguished Aug. ’13 23
  • 24. SUMMARY – FOCUSED ON GROWTH 1. Only mill in Senegal 2. Largest land position in Senegal 3. Rising production, declining costs 4. Eliminating hedge book by Aug‘13 5. Building a stronger balance sheet – increasing production and free cash flow with margin expansion 6. Extensive exploration program 7. Experienced management team 24
  • 27. KEY ASSUMPTIONS Basis for 2.5 – 3.5 Moz gold inventory from Mine License  Expand upon existing gold mineralization by an additional 20M to 30M tonnes at grades of between 1.5 and 2.0 gpt for a total inventory of 2.5 to 3.5 Moz from the Sabodala Mining License (“ML”) by June 30, 2013.  The larger gold inventory base is expected to result from the success of deepening the Sabodala pit to the north along the MFE/LFZ, extension of the Masato pit onto the ML, potential conversion of Niakafiri resources to reserves as well as adding to the gold mineralization inventory below these three large open pits.  This exploration target is not a Mineral Resource. 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.  The goal of the MFE/LFZ programs is to add 500,000 to 1,000,000 ounces of gold to the open pit mineable gold inventory at an average grade between 1.5 – 2.0 gpt, as well as adding underground gold inventory at an average grade between 3.0 – 4.0 gpt. Rationale:  Recent drilling confirms extension of mineralization to the north of the existing pit  Potential for identification of additional ounces through infill drilling within area of existing resources under the ML  Minimum 8 drill rigs and exploration budget of US$25M dedicated to ML alone in 2012  Program to continue to test similar geophysical anomalies and identified structures within the ML 27
  • 28. SABODALA GOLD PROJECT: RESERVES & RESOURCES (DECEMBER 31, 2011) Proven and Probable Reserves M tonnes Grade gpt Au M oz Au Sabodala 23.12 1.49 1.106 Niakafiri 7.81 1.14 0.287 Stockpile 4.21 0.94 0.127 Sutuba 0.49 1.27 0.02 Gora 1.56 3.12 0.156 Total 37.19 1.42 1.696 Measured and Indicated Resources Sabodala 44.4 1.07 1.53 Niakafiri 10.7 1.12 0.39 Gora 1.3 5.22 0.22 Sutuba 0.5 1.27 0.02 Total 56.9 1.17 2.14 Inferred Resources Sabodala 26.2 1.01 0.85 Niakafiri 7.2 0.88 0.21 Niakafiri West 7.1 0.82 0.19 Soukhoto 0.6 1.32 0.02 Gora 0.3 4.16 0.04 Diadiako 2.9 1.27 0.12 Majiva 2.6 0.64 0.05 Toumboumba 0.9 1.5 0.04 Total 47.8 0.98 1.51 28
  • 29. 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) 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 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 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 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 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 Martin Pawlitschek • Geologist with over 15 years experience in the mining industry • Previously spent 11 years at BHP and a number of smaller exploration companies, working in Australia, South Regional Exploration Manager East Asia and Africa • Joined Mineral Deposits Ltd. in July 2007 Bruce Van Brunt • Mining engineer and geologist with over 20 years experience • Previously worked in a number of technical capacities with Placer Dome and Echo Bay Mines Business Development Manager • Joined Mineral Deposits Ltd. in March 2006 29
  • 30. COMPETENT PERSONS STATEMENT The information in this presentation relating to the reserve estimate associated with the Sabodala and Niakafiri pits as well as the Stockpiles is based on information compiled by Ms. Julia Martin, PEng, MAusIMM (CP) who is a full time employee of AMC Mining Consultants Canada and has sufficient experience which is relevant to the style of mineralisation 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. Martin is a Qualified Person in accordance with NI 43-101 and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The technical information in this presentation that relates to mineral resource estimates within the Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the “Australasian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves”. Mr. Van Brunt is a "Qualified Person" in accordance with National Instrument 43-101 and he consents to the inclusion of this information in the form and context in which it appears in this presentation. The technical information in this presentation that relates to the exploration results and targets within the regional exploration program are based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is our full time employee and is not “independent” within the meaning of National Instrument 43-101. Mr. Pawlitschek 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Pawlitschek is a “Qualified Person” in accordance with NI 43-101 and he consents to the inclusion of this information in the form and context in which it appears in this presentation. 30