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