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. 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. COMPETENT PERSONS STATEMENT
The information in this presentation that relates to exploration results, targets, mineral resources or ore reserves within the SGO 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 therefore not independent. Mr. Van Brunt 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 “Australian Code of Reporting of exploration Results,
Mineral Resources and Ore Reserves”. Mr. Van Brunt consents to the inclusion of this information in the form and context in which it appears in this presentation.
The information in this document that relates to exploration results, targets, mineral resources or ore reserves within the Regional Exploration Package is based on
information compiled by Mr. Martin Pawlitschek, who is a member of the Australasian Institute of Geoscientists. Mr. Pawlitschek is a full time employee of Teranga
and therefore not independent. 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 “Australian Code of Reporting of exploration Results, Mineral
Resources and Ore Reserves”. Mr. Pawlitschek consents to the inclusion of this information in the form and context in which it appears in this presentation.
3
4. DECEMBER QUARTER / YEAR END 2011
CONFERENCE CALL & WEBCAST
FOCUSED
ON GROWTH
Alan R. Hill Chairman & CEO
FOCUSED ON:
Richard Young President & CFO
GROWING
RESERVES
GROWING
PRODUCTION
FINANCIAL
STRENGTH
4
5. TERANGA – YEAR ONE
FOCUSED
ON GROWTH
• 2011 prepared us for increasing production
and lowering costs and increasing cash
margins as we move forward FOCUSED ON:
• Continue to self-fund extensive exploration
program GROWING
RESERVES
• Very encouraging drill results on Mine
License GROWING
PRODUCTION
• Plans to double gold inventory on Mine
License alone FINANCIAL
STRENGTH
• Promising results on Regional Exploration
Program
5
6. OPERATING HIGHLIGHTS
December quarter:
• Gold produced – 36,695 oz’s
• Highest quarterly production but delay
in accessing higher grade zone
• ~17,000 oz’s at 2.37 gpt stockpiled
(processing postponed to Q1’12)
• Gold sold – 34,665 oz’s at cash costs of
$902/oz
• Decreasing cash costs as production
increases
• Largely fixed cost operation
6
7. OPERATING HIGHLIGHTS
Fiscal 2011(1)
• 147,728 oz’s produced
• 153,728 oz’s sold at cash cost of
$872/oz
Calendar 2011
• 131,461 oz’s produced
• 137,136 oz’s sold at cash cost of
$900/oz
• In line with revised guidance
• Costs affected by higher fuel, labour
and maintenance costs
(1) Fiscal year is from October 1, 2010 to December 31, 2011, a 15 month year. Teranga is converting from a June
30 to calendar year end. 7
8. FINANCIAL HIGHLIGHTS
Revenue for the December quarter:
• $51.5M
• 7,385 oz’s delivered into forward sales
contracts at $846/oz
• 27,280 oz’s sold in the spot market at an
average of $1,654/oz
• $1,482/oz – average realized price
Revenue for the fiscal 2011:
• $187M
• 47% of oz’s delivered into the forward
sales contracts at $846/oz
• 53% of oz’s delivered into the spot market
at an average priced of $1,537/oz
• $1,213/oz – average realized price
8
9. FINANCIAL HIGHLIGHTS
Net profit for the December quarter:
• $12.6M or $0.09/share
Net loss for the fiscal 2011:
• $15.8M or $0.09/share
• Affected by deliveries into hedge book,
high exploration costs, and stock based
compensation expense
Capital expenditure:
• For the quarter: $27.3M
• For the fiscal year: $76.4M
• Primarily for mill expansion, mobile
equipment, and capitalized mine site
exploration
9
10. FINANCIAL HIGHLIGHTS
Cash position at December 31, 2011:
• $11M in cash, cash equivalents and short
term investment including restricted cash
• Sufficient cash liquidity from current cash
plus expected future cash flows to support
our liquidity requirements
• Additional flexibility provided by deferring
delivery of 28,000 ounces due in Q1 until
later in 2012
• Rebuild cash balance ($26.5M at
January 31, 2012)
• Maintain cash balance of ~$20M
• Excess cash flow reinvested in
exploration or used to accelerate
hedge deliveries
10
11. FINANCIAL HIGHLIGHTS
Plant expansion:
• On schedule to be completed by the end of
Q1
• Expected total cost of $62M
• 10% higher than budget relating to scope
changes, and an increase in the price for
structural steel fabrication, and higher
foreign currency costs
• $15M remaining to be spent in 2012
11
12. FINANCIAL HIGHLIGHTS
Net change in unrealized gold hedge gain:
• Unrealized non-cash gain of $1.8M for the
15 months ended December 31, 2011
• Reduction in financial derivative liability
due to 72,000 oz’s delivered into the hedge
book
• Mark-to-market loss on remaining 174,500
oz’s under hedge contract decreased to
$129.6M
12
13. FINANCIAL HIGHLIGHTS
New fleet loan facility:
• In December quarter, expansion of mobile
equipment loan finalized with Société
Générale by an additional $12.8M
• Quarterly repayments
• Final payment on September 30, 2013
• Currently drawn down to $24.4M
13
14. FOCUSED ON BUILDING Cash Margin ($/oz)(1,2)
FINANCIAL STRENGTH 1200
Building stronger balance sheet to 1000
self-fund exploration and development
800
• 2012 Production and Cash Cost Guidance:
600
• 210,000 – 225,000 oz’s at $600 - $650/oz
400
• Rising production, lowering costs
200
• Margin expansion + increased production 0
2011 2012 2013* 2014
profile = significant free cash flow to self-fund
exploration and development strategy
Rate of margin expansion is a function
of increasing production through regional
exploration success
• Manageable capex requirements in 2012: $30M *After eliminating hedge position
(1) Assumes $1600/oz gold price and cash cost of $625/oz (2) Non-Deferred Hedge Schedule page 39
14
15. 2011
Changes made to reduce operating risks: FOCUSED
ON GROWTH
• Mill expansion
FOCUSED ON:
• Automated controls for better blending to
increase throughput
GROWING
• Second access ramp to the pit RESERVES
• Revised drilling, blasting, and maintenance GROWING
PRODUCTION
contracts in order to increase mining rate
FINANCIAL
• Improvements to employee compensation STRENGTH
15
16. FOCUSED ON Kedougou-Kenieba Inlier – A Birimian Greenstone Belt
GROWING RESERVES
Reserves and Resources(1,2)
December 31, 2011
2.50
2.00
1.50
Moz
1.00 2.138
1.659
1.51
0.50
0.00
Proven and Measured and Inferred
Probable Indicated Resources
Reserves Resources
(1) See page 38 (2) M+I Resources are inclusive of reserves
16
17. FOCUSED ON
GROWING RESERVES
2012 Exploration Program
1. Mine License Exploration: $20M
(77,000m)
2. Regional Exploration: $20M
(90,000m)
TOTAL: $40M
(167,000m)
(+140,000m RAB)
2011 Exploration Program: $46M
Full drill results are posted at terangagold.com
17
19. 1. SABODALA MINE LICENSE
EXPLORATION
• $20M exploration program is underway on
the Sabodala Mine License
• Potential to expand existing gold
inventory on the ML from 1.55Moz to 2.5 –
3.5Moz(1,2,3) over the next 12 to 18 months
increasing the mine life to ~ 10 to 15 years
• From deepening the Sabodala pit to the north
along the Main Flat Extension
• From continuation of the Masato deposit
• From conversion of Niakafiri resources to
reserves
(1) Potential to expand existing gold mineralization to between 40 and 50 M
tonnes at grades of between 1.5 to 1.9 gpt Au for a total inventory of 2.5 to
3.5Moz
(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. 19
(3) See Key Assumptions on page 37
20. 2011 MINE LICENSE
HIGHLIGHTS FOCUSED
ON GROWTH
• Intersection of significant wide widths of high
grade mineralization outside the Sabodala
ultimate pit limit as part of MFE drill program FOCUSED ON:
• Discovery of multiple high-grade zones in the
LFZ just below the MFE area GROWING
RESERVES
• Successful intersection and extension of the
Masato deposit down dip onto our Mine License
and 500m along strike with potentially
underground mineable high-grade ore
20
21. 2012 MINE LICENSE
FOCUSED
ON GROWTH
• Minimum 6 drill rigs
FOCUSED ON:
• $20M
GROWING
• 77,000m of diamond and RC drilling RESERVES
21
22. MINE LICENSE EXPLORATION – MAIN FLAT EXTENSION (“MFE”)
Main Flat Extension – principal gold hosts of
Sabodala deposit
• MFE program is designed to test the continuity of
this structure to the north beginning with infilling
holes
• Significant widths of high grade mineralization:
131m at 3.45 gpt 87m at 3.11 gpt
70m at 3.0 gpt 53m at 4.5 gpt
Lower Flat Zone (“LFZ”) – deeper zone
below MFE
• Drilling confirms multiple flat zones immediately
below Sabodala ultimate pit:
46m at 9.8 gpt 34m at 6.3 gpt
(1) MFE - open pit mineable gold inventory at an average grade between 1.5 – 2.0 gpt, LFZ potentially a
similar amount to lower/underground at an average grade between 3.0 and 4.0 gpt, in 2012
Full drill results are posted at terangagold.com 22
24. MINE LICENSE EXPLORATION – “THE CORRIDOR” and AYOUB’S
• Northerly trending extension of Sabodala pit
• Mineralization traced more than 200m north
of the existing pit along trend
Mylonite
Shear • Drilling intersected wide widths of alteration similar to
Ayoub’s Zone Sabodala and Niakafiri
Thrust
15m @ 1.34 gpt 20m @ 2.10 gpt
• The system is continuous and is showing Sabodala
style albitic alteration to the north where the target
remains open down dip and along strike
• The position of Ayoub’s lends itself to sharing
Sabodala Pit stripping for including deeper MFE mineralization into
the ultimate pit
Full drill results are posted at terangagold.com
24
25. MINE LICENSE EXPLORATION – MASATO
Masato structural trend strikes across onto our
Mine License
Main Flat Extension
• Oromin Joint Venture has identified open pit
reserves of 0.5Moz about 2km from our mill
• Tracking the deposit as it crosses onto our
Masato Down Dip
property
Sabodala Pit
• Multiple mineralized zones have been identified
Sambaya Hill
with high grade intervals apparent
• Confirmed strike length of 500m, a dip extent of
Masato Extensions 200m, and a band of about 40m of solid grade
mineralization
• 2km of strike length still to be tested
• Recent results from Masato Down Dip include:
37m at 4.5 gpt 44m at 2.0 gpt
Full drill results are posted at terangagold.com
25
26. MINE LICENSE EXPLORATION – NIAKAFIRI
Niakafiri area has ~300,000 oz’s in reserves in a
mineralized envelope of about ~800,000 oz’s
• Deposit remains open below 200m level
• Potential 2H 2012 drilling with intentions of adding
to reserves
• Ongoing community discussions
Full drill results are posted at terangagold.com
26
28. 2. REGIONAL EXPLORATION
• From 2007 – 2009, no significant drilling
was done on the 1,455km2 Regional
Land Package due to cash
constraints
• There are ~40 drill targets identified;
$32M spent in 2011 and $20M planned for
2012
• Addition of Garaboureya North
exploration permit, land package
increases to over 1,500km2
28
29. GORA
• 2011: 115,000m RC/DD, 150,000m RAB
• Current reserves of 114,000 oz’s @ 5 gpt
• Most advanced target: moving from exploration to
development
• Objective of having production in early 2013
permitting dependent
• 22km from Sabodala mill, truckable
• High grade-drill intersections continue to expand the
potential footprint of the deposit
Trace of blind veins from RC holes
Projected to surface – high correlation with
IP trends.
Full drill results are posted at terangagold.com
29
30. TOUMBOUMBA – NEWEST TARGET
• Latest discovery, potential to become second
regional deposit through the mill
• Located 10km NW from Sabodala mill
• High grade, lower grade halo, and oxide material
• Easily processing at minimum, potential
for heap leaching
• Alteration hosted mostly in granite (laterite
cover)
• Oxide mineralization of up to 60m in depth
• RAB results:
• 6m @ 18.54 gpt
• 4m @ 3.31 gpt
• 8m @ 5.46 gpt
• RC results:
• 1m @ 5.20 gpt
• 2m @ 21.45 gpt
Full drill results are posted at terangagold.com
• 4m @ 6.32 gpt
30
31. DIEGOUN NORTH – “THE DONUT”
• 7km x 4km complex of gold anomalism
• Contrasting rock types, porphyries, granites,
dolerite & sediments
Sabodala Ore Body
• Rock samples to 80 gpt Au
• RAB drilling has defined gold mineralization in bedrock
• Honey and Jam
• First pass RC program at Honey and Jam; 51 holes
completed for just under 8,800m (51 holes
anomalous levels of gold > 0.1 gpt; 40 holes were
>0.5 gpt)
• Recognition of a well-developed, auriferous NE
trending structure
Full drill results are posted at terangagold.com • 2012 drilling to focus on understanding ore-grade
structural controls and orientations 31
32. • >5km long, up to 1 km wide gold anomaly defined by
TOUROKHOTO termite sampling, similar geology as Loulo across
the border (12Moz resource)
Sabodala Ore Body
• Drilling to date has identified a substantial,
mineralization system
• Potential to host-ore grade shoots within
• First pass drill program is designed to test for large,
near surface open-pitable resource
• Current program is 60% with most assays and
interpretation pending
• Parallels NE trending shears of the MTZ
• 3Moz Massawa deposit hosted on MTZ about
25km south
Full drill results are posted at terangagold.com
32
33. CORPORATE
SOCIAL RESPONSIBILITY
• CSR is fundamental to the success of our business
• Healthy, 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
33
34. SUMMARY –
FOCUSED ON
GROWTH
1. Only mill in Senegal – expansion almost complete
2. Largest land position in Senegal
3. Rising production, declining costs
4. Building a stronger balance sheet
– increasing production and free cash flow with margin expansion
5. Extensive exploration program
6. Experienced management team
34
37. KEY ASSUMPTIONS
Basis for 2.5 – 3.5Moz gold inventory from Mine License
Expand upon existing gold mineralization by an additional 20M to 30M tonnes at grades of between 1.5 and 1.9 gpt for a total
inventory of 2.5 to 3.5Moz from the Sabodala Mining License (“ML”) over the next 12 to 18 months.
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 250,000 to 500,000 ounces of gold to the open pit mineable gold inventory at an
average grade between 1.5 – 2.0 gpt, as well as potentially a similar amount to lower/underground at an average grade between
3.0 and 4.0 gpt, in 2012.
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 5 drill rigs and exploration budget of US$20M dedicated to ML alone in 2012
Program to continue to test similar geophysical anomalies and identified structures within the ML
37
38. SABODALA GOLD PROJECT: RESERVES & RESOURCES
(DECEMBER 31, 2012)
M Grade M oz
tonnes g/t Au Au
Proven and Probable
Sabodala 19.89 1.54 0.987
Niakafiri 7.814 1.14 0.287
Stockpile 4.211 0.94 0.128
Subtotal 31.915 1.37 1.402
Sutuba 0.353 1.06 0.012
Gora 0.709 5.01 0.114
Sabodala - additional 3.232 1.26 0.131
Total 36.209 1.43 1.659
Measured and Indicated
Sabodala 44.371 1.07 1.525
Niakafiri 10.741 1.12 0.386
Gora 1.282 5.22 0.215
Sutuba 0.353 1.06 0.012
Total 56.747 1.17 2.138
Inferred
Sabodala 26.205 1.01 0.848
Niakafiri 7.248 0.88 0.205
Niakafiri West 7.144 0.82 0.188
Soukhoto 0.566 1.32 0.024
Gora 0.286 4.16 0.038
Diadiako 2.917 1.49 0.119
Majiva 2.593 0.64 0.047
Toumboumba 0.855 1.5 0.041
Total 47.814 0.98 1.51
38
40. 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 & CEO • 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 & CFO • Former VP and CFO of Gabriel Resources (2005 – 2010)
Yani Roditis • Over 10 years experience in mine development and operations with Barrick Gold (1994 – 2005)
• Former Chief Operating Officer of Gabriel Resources (2005 – 2010)
Vice President, Operations
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)
Vice President, Investor &
Stakeholder Relations
David Savarie • Over 10 years experience in the legal industry
• Former Deputy General Counsel and Corporate Secretary of Gabriel Resources
Vice President, General Counsel & • Previously in private practice at Miller Thomson LLP
Corporate 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
General Manager and development, inclusive of greenfield start-ups
• Joined Mineral Deposits Ltd. in June 2006
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
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
40
