2. FORWARD LOOKING STATEMENTS
This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking
statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or
achievements of Teranga, or developments in Teranga’s business or in its industry, to differ materially from the anticipated results, performance, achievements or
developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible
events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Teranga cautions you not to place
undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-
looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, changes in economic conditions,
changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond
the control of Teranga, as well as other risks and uncertainties which are more fully described in the Company’s Annual Information Form dated March 27, 2013, and
in other company filings with securities and regulatory authorities which are available at www.sedar.com. Forward-looking statements are based on management's
current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this presentation should be construed as
either an offer to sell or a solicitation to buy or sell Teranga securities.
This presentation is dated as of April 5, 2013. All references to the Company include its subsidiaries unless the context requires otherwise.
This presentation contains references to Teranga using the words “we”, “us”, “our” and similar words and the reader is referred to using the words “you”, “your” and
similar words.
2
3. CAPITALIZATION SUMMARY
Ticker symbol TGZ: TSX/ASX
FOCUSED
Shares outstanding (1,2) 245.6M ON GROWTH
THROUGH:
Share price (as at April 5, 2013) C$1.12
Market capitalization (as at April 5, 2013) C$275M
Profit 2012 US$79.9M GROWING
($0.33/share)
RESERVES
Cash position (3) US$45M
GROWING
Hedge balance (as at Jan. 29, 2013) 38,105oz. PRODUCTION
(4) FINANCIAL
Project finance outstanding US$60M STRENGTH
Mining fleet loan facility (5) US$22.7M
1 As part of the demerger Mineral Deposits Ltd. retained 40M TGZ shares and received C$50M from the IPO proceeds
2 Stock options outstanding 17.2M.
3 Includes cash, cash equivalents and $5.3M bullion receivable as at December 31, 2012.
4 2-Year Project Finance Facility with Macquarie Bank – repaid on or before June 30, 2014
5 Outstanding under the new mining fleet finance loan facility with Macquarie Bank as at March 31, 2013
3
4. OUR VISION
To become a preeminent gold producer in West Africa while setting
the benchmark for responsible mining in Senegal
Phase 1: Become a mid-tier gold producer in Senegal with 250,000 to 350,000 oz.
of annual gold production leveraging off existing infrastructure
• 2011 production of 131,461oz.
• 2012 production of 214,310oz. at cash costs of $627/oz.
• 2013 forecast production of 190,000 – 210,000oz. at cash costs of $650-$700/oz.
• 2014 forecast production of 200,00 – 250,000oz. pending the timing of Gora production
Phase 2: Increase annual gold production to 400,000 to 500,000 oz. with mill
expansion as reserves increase
4
5. SABODALA IS SENEGAL’S ONLY
LARGE-SCALE GOLD MINE
Population of ~ 12.8M
Democratic Government
• Smooth process and power transition in 2012 elections
• Peaceful democracy since independence from France in
1960
• Use of the eight-country West African CFA France currency
fully guaranteed by the French treasury and pegged to the
Euro (WAEMU)
• Sabodala is the only large-scale gold mine in Senegal
Government has vested interest in Sabodala’s success given:
• 10% free-carried interest
• 5% gross production royalty effective Jan. 1, 2013
• 25% income tax (after tax holiday expires in 2015)
• Employment and regional development opportunities
5
6. NEW AGREEMENT PROVIDES FOR
LONG-TERM PARTNERSHIP THROUGH:
• Price and formula to acquire Government’s additional option
on satellite deposits and to incorporate these into the existing
ML and fiscal regime
• Supporting drilling of the Niakafiri deposit on the ML
• Extending the ML by five years to 2022 and five key
exploration licences by 18 months
• Ensuring full access to exploration targets currently occupied
by artisanal miners
• Settling all outstanding tax assessments
• Settling the Special Contribution Tax of 5% through an
increase in royalties to 5% and accelerated dividend payments
6
7. TERANGA IS MINING RESPONSIBLY
AND SHARING THE BENEFITS
Corporate Social Responsibility is fundamental to the success of
our business
• Health, safety, education and sustainability are all priorities
• Developing schools, health clinics, and improving access to
potable water
• Have engaged a renowned Canadian group to assist in putting
together a comprehensive Regional Development Plan in
partnership with the local, regional, and national government
• Committed to improving the livelihoods of those in the
communities in which we operate
A key component of our vision is to set the benchmark for
responsible mining in Senegal
7
8. SABODALA GOLD OPERATION IS
PRODUCING CONSISTENTLY
Gold Production Since 2009
• First gold pour in March ‘09 with over $500M invested to date
Well Developed Infrastructure
• Located 650 km east of the capital Dakar and ~100 km north
of the town Kedougou – paved road within 56 km of mine site
• 36 MW heavy fuel oil power plant located on site
Completed Mill Expansion
• New ball mill and downstream plant, secondary crusher and
new stockpile/reclaim facility commissioned
• Expands annual production base to ~200,000 oz.
• Mill capacity increased to ~3.5Mtpa of fresh (hard) ore or
~6Mtpa of oxide (soft) ore
Modest Incremental Sustaining Capital Going Forward
• US$125M – $150M LOM
• Includes Gora, community relocations, further mobile
equipment expenditure, pit delineation and additional
tailings facilities
8
10. 2013 - REDUCTION IN CAPEX AND
EXPLORATION EXPENDITURES
2011 2012 2013 Guidance
Units % Change (2)
Actuals Actuals Ranges (1)
Mine Site Capex ($ millions) 62.1 52.9 20 – 25 -58%
Capitalized Reserve
($ millions) 14.4 26.1 ~5 -82%
Development (ML)
Exploration Expense
($ millions) 31.7 16.7 ~5 -70%
(RLP)
Development of Gora ($ millions) - 4.3 < ~10 +133%
Administration Expense ($ millions) 13.4 17.9 15 – 20 -2%
Profit for the Period ($ millions) -16.0 79.9 - -
Cash Balance at End of
($ millions) 24.6 45.0 - -
Period (3)
Gold Hedge
(koz.) 174.5 59.8 0 -100%
Outstanding (4)
1 Discretionary costs under review.
2 Percent change calculated from mid-point of range.
3 Includes cash, cash equivalents and bullion receivable: $5.3M FYE 2012 and $17.1M at FYE 2011.
4 Hedge book to be extinguished in Q2 2013.
10
11. GORA – OUR MOST ADVANCED
SATELLITE DEPOSIT
Economics
• Capital cost est. $45M - $50M
• Est. total cash cost to average $675 - $700/oz.
• NPV (5%) at $1500/oz. of $105 million
• IRR 69%
Open Pit
• 26km from mill
• Technical Study and ESIA complete –
permitting underway
• M&I of 374,000 oz. at 5.0gpt
• Proven & Probable reserves of 285,000oz. at
4.2gpt. (2.1M tonnes of ore) Source – Teranga Gold Corporation: Typical section of Gora looking South West, 2012.
• Estimated 4-year mine life
• Stripping ratio of 19:1
Timing
• Development to start in Q4 2013 with majority
of capital expenditure in 2014 in order to
support 2013 free cash flow
• Estimated production start in H1 2014
11
12. FOCUSED ON GROWING
PRODUCTION AND CASH MARGINS
Production Profile ('000oz.) (1) Cash Margin ($/oz.) (2)
300,000 1000
250,000
800
200,000
600
150,000
400
100,000
200
50,000
- 0
2011 2012 2013 2014 2015 2011 2012 2013* 2014 2015
Gora Production ML Production Rate of margin expansion is a function of increasing
production through regional exploration success
* After eliminating hedge position
• 2012 Production Results: 214,310oz. at cash costs of $627/oz.
• 2013 Production Estimated: 190,000 – 210,000oz. at cash costs of $650 - 700/oz.
• Hedge position 59,789oz. at 2012 YE, management expects to be hedge free by June 2013
1 Assumes increased production from regional exploration success
2 Assumes $1600/oz. gold price and cash cost of $675/oz. after the elimination of the gold hedge position 12
13. FOCUSED ON GROWING RESERVES
Reserves and Resources (1,2,3)
December 31, 2012
3.50
3.00
2.50 2.87
2.00
Moz.
1.50
1.67
1.59
1.00
0.50
0.00
Proven and Measured and Inferred Resources
Probable Reserves Indicated
Resources
1 See pages 23/24
2 M+I Resources are inclusive of reserves
3 Includes Sabodala, Niakafiri, Niakafiri West, Soukhoto, Diadiako, Majiva, Masato and Gora
13
14. FOCUSED ON GROWING RESERVES
2013 Exploration Program (1)
Mine Licence Exploration (ML) ~$5M
Regional Exploration (RLP) ~$5M
TOTAL ~$10M
2012 Exploration Program (2)
Mine Licence Exploration $26M
104,400m (RC/DD)
Regional Exploration(3) $20M
62,500 RAB 42,300 RC 2,400 DD
TOTAL $46M
1 Additional funding allocated on a priority basis for prospects with clear potential for reserve definition
2 Full drill results are posted at terangagold.com
3 Includes ~$3M for Gora exploration
14
15. MINE LICENCE MAKES UP ~3% OF
TERANGA’S TOTAL LAND PACKAGE
Mine Licence Exploration (ML) Regional Land Package (RLP)
33km2 1,200km2
15
16. POTENTIAL TO EXPAND THE ML
GOLD MINERALIZATION INVENTORY
• Potential to expand gold inventory on ML with the
33km2 objective of increasing mine life to the year 2020/25
SABODALA PIT –
MAIN FLAT EXTENSION /
LOWER FLAT ZONE
SAMBAYA HILL
SUTUBA
DINKOKHONO
NIAKAFIRI / NIAKAFIRI WEST /
SOUKHOTO
16
17. PROPERTIES IN VARYING STAGES
OF ASSESSMENT WITHIN RLP
1,200km2
NINYENKO
SORETO /
DIABOUGOU
SAIENSOUTOU
TOUROKHOTO
(Main and Marougou)
35km from Mill
GOUMBOU GAMBA
GORA
17
18. FOCUS IS ON CONTINUED GROWTH
Focused on Growing Reserves
• To secure a reserve life to year 2020/25
• Growth through exploration
• Growth through regional opportunities (JV’s, acquisitions)
Focused on Growing Production
• Phase 1: 250,000 – 350,000oz. annual production by
leveraging existing mill and land package
• Phase 2: 400,000 – 500,000oz. annual production, will
require another mill expansion
Focused on Building Financial Strength
• Eliminating hedge book
• Maximizing cash margins
• Producing free cash flow
• Increasing cash balance
• Use free cash flow to self-fund growth strategy
• Focusing on the ounces that provide the best returns
• Increase earning and cash flow per share (minimize dilution)
18
20. INITIAL “1% PER OUNCE” PAYMENT
EXAMPLE FOR GORA
Reserves per feasibility study 285,000
Recovery rate 95%
Recovered reserves 270,750
Less government royalties 13,538
Recovered ounces to shareholders 257,213
Average realized gold price last 12 months $ 1,650
Reserve payment percentage 1.00%
Reserve payment dollars per ounce $ 16.50
Payment due on production maximum $10 million $ 4,244,006
Additional payments required when:
1. Gold price increases
2. Reserves/production increases
3. Excess above $10 million cap
20
21. OPERATING STATISTICS
Tw elve m onths ended Decem ber 31,
2012 2011
restated
Operating results
Ore mined (‘000t) 5,914 3,973
Waste mined (‘000t) 22,964 21,818
Total mined (‘000t) 28,878 25,791
Grade mined (g/t) 1.98 1.39
Ounces mined (oz) 376,185 177,362
Strip ratio w aste/ore 3.9 5.5
Ore milled (‘000t) 2,439 2,444
Head grade (g/t) 3.08 1.87
Recovery rate % 88.7 89.5
(1)
Gold produced (oz) 214,310 131,461
Gold sold (oz) 207,814 137,136
Average price received $/oz 1,422 1,236
Total cash cost (incl. royalties) (2) $/oz sold 627 782
Mining (cost/t mined) 2.7 2.3
Milling (cost/t milled) 20.4 16.8
G&A (cost/t milled) 6.2 5.8
1 Gold produced includes change in gold in circuit inventory plus gold recovered during the period.
2 Cash cost per ounce is a non-IFRS financial measure with no standard meaning under IFRS.
21
22. 2013 GUIDANCE*
Year ending December 31,
2012 2013
Actuals Guidance Range
Operating results
• Mining and processing more
Ore mined (‘000t) 5,915 4,000 - 4,500
Waste mined (‘000t) 22,962 31,000 - 32,000 tonnes at lower grade to
Total mined (‘000t) 28,877 35,000 - 36,500
Grade mined (g/t) 1.98 1.40 - 1.60 maintain ~200,000oz.
Strip ratio waste/ore 3.9 7.00 - 7.75
Ore milled (‘000t) 2,439 3,300 - 3,400
production
Head grade (g/t) 3.08 2.00 - 2.15
Recovery rate % 88.7 89.0 - 91.0
Gold produced (oz) 214,310 190,000 - 210,000
• Gross costs have increased
Gold sold
Total cash cost (incl. royalties)(1)(2)
(oz)
$/oz sold
207,814
627
190,000
650
-
-
210,000
700
but unit costs are expected to
Total production cost (1) $/oz sold 850 950 - 1,000 decline
Mining (cost/t mined) 2.71 2.50 - 2.70
Milling (cost/t milled) 20.39 19.00 - 20.00
G&A (cost/t milled) 6.16 5.00 - 6.00
Mine production costs $ millions 145.8 170.0 - 180.0
*Discretionary costs under review.
1
Total cash cost per ounce and total production cost per ounce are non-IFRS financial measures with no standard meaning under IFRS. For
definitions of these metrics, please see page 26 of the Management Discussion and Analysis.
2
For 2013, reflects the impact of adoption of a new IFRS standard for deferred stripping. Please see page 25 of the Management Discussion and
Analysis.
22
23. RESERVES & RESOURCES (1,2)
• Reserves remain similar to that of 2011 net of production
• Focused on growing our reserves and are confident that we will
add reserves on the ML
• M&I resources increased 34% to 2.9Moz.
Proven Probable Proven and Probable
Deposit Tonne Tonne Tonne
Grade Au Grade Au Grade Au
s s s
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 6.55 1.5 0.315 11.07 1.24 0.443 17.62 1.34 0.758
Sutuba - - - 0.37 1.40 0.017 0.37 1.40 0.017
Niakafiri 0.23 1.69 0.013 7.58 1.12 0.274 7.81 1.14 0.287
Gora 0.57 4.07 0.074 1.53 4.27 0.21 2.1 4.22 0.284
Stockpiles 7.32 1.02 0.24 - - - 7.32 1.02 0.24
Total 14.67 1.36 0.642 20.56 1.43 0.944 35.23 1.40 1.586
Measured and
Measured Indicated
Indicated
Deposit Tonne Grad Tonne Grad
Tonnes Grade Au Au Au
s e s e
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 28.06 1.24 1.12 31.47 0.96 0.97 59.53 1.09 2.09
Sutuba - - - 0.50 1.27 0.02 0.50 1.27 0.02
Niakafiri 0.30 1.74 0.02 10.50 1.10 0.37 10.70 1.12 0.39
Gora 0.49 5.27 0.08 1.84 4.93 0.29 2.32 5.00 0.37
Total 28.85 1.32 1.22 44.31 1.16 1.65 73.05 1.22 2.87
1 Please see page 26 for Competent Persons Statement relating to this reserves estimate.
2 Based on assays received as of August 2012.
23
24. RESERVES & RESOURCES (1,2)
Inferred
Area Tonnes Grade Au
(Mt) g/t (Moz)
Sabodala 12.36 0.87 0.35
Niakifiri 7.20 0.88 0.21
Niakifiri West 7.10 0.82 0.19
Soukhoto 0.60 1.32 0.02
Gora 0.21 3.38 0.02
Diadiako 2.90 1.27 0.12
Majiva 2.60 0.64 0.05
Masato 19.18 1.15 0.71
Total 52.15 1.00 1.67
1 Please see page 26 for Competent Persons Statement relating to this reserves estimate.
2 Based on assays received as of August 2012.
24
25. MANAGEMENT
Alan R. Hill • Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine development
as Executive VP of Barrick Gold
Executive Chairman • Currently a Director of Gold Fields
• Former President and CEO of Gabriel Resources (2005 – 2009) and non-Executive Chairman of Alamos Gold
(2004 – 2007)
Richard S. Young • Over 10 years experience in mining finance, development, corporate development, and investor relations with
Barrick Gold
President & CEO • Former VP and CFO of Gabriel Resources (2005 – 2010)
Mark English • Over 24 years experience in the gold mining industry
• Previously worked for several companies in Australia, East and West Africa being involved in operating mines and
VP, Sabodala Operations development, inclusive of greenfield start-ups
• Joined Mineral Deposits Ltd. in June 2006
Paul Chawrun • Mining Engineer and geologist with over 24 years experience
• Former EVP Corporate Development for Chieftain Metals
VP, Technical Services • Former Director, Technical Services Detour Gold
Navin Dyal • Over 13 years in finance, most recently 7 years with Barrick Gold (2005 - 2012)
• Former Director of Finance, Global Copper Business Unit – Barrick Gold
VP & CFO • Chartered Accountant – Four years at major public accounting firm
David Savarie • Over 10 years experience in the legal industry
• Former Deputy General Counsel and Corporate Secretary of Gabriel Resources
VP, General Counsel & Corporate • Previously in private practice at Miller Thomson LLP
Secretary
Kathy Sipos • 10 years experience in Corporate Communications and Investor Relations with Barrick Gold (1996 – 2006)
• Former VP of Corporate Communications and Investor Relations of Gabriel Resources (2006 – 2009)
VP, Investor & Stakeholder Relations
Macoumba Diop • Geological Engineer, Master of Science in Finance with over 12 years experience in the mining industry
• Previously spent 11 years in a consulting business and mineral project marketing and development
General Manager & Government • Joined SGO in July 2011.
Relations Manager
25
26. COMPETENT PERSONS STATEMENT
The technical information contained in this presentation relating to the mineral reserve estimates within the Sabodala, Sutuba, Niakafiri and Gora deposits and the
Stockpiles, is based on information compiled by Julia Martin, P.Eng., MAusIMM (CP), a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of
Teranga, is a “qualified person” as defined in NI 43-101 and a “competent person” as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to
the activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Ms Martin has reviewed and accepts responsibility for the reserve estimates disclosed above. Ms Martin has consented to the inclusion in
the report of the matters based on her information in the form and context in which it appears in this presentation.
The technical information contained in this presentation relating to the mineral resources is based on information compiled by Ms. Patti Nakai-Lajoie, who is a Member of
the Association of Professional Geoscientists of Ontario. Ms. Patti Nakai-Lajoie is full time employee of Teranga and is not “independent” within the meaning of National
Instrument 43-101. Ms. Patti Nakai-Lajoie 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. Patti Nakai-Lajoie is a “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects and she
consents to the inclusion in the report of the matters based on her information in the form and context in which it appears in this presentation.
The technical information contained in this presentation relating to exploration results is based on information compiled by Mr. Martin Pawlitschek, who is a Member of the
Australian Institute of Geoscientists. Mr. Pawlitschek is a consultant of Teranga and is not “independent” within the meaning of National Instrument 43-101. Mr.
Pawlitschek has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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 in the report of the matters based on his information in the form and
context in which it appears in this presentation.
26
