Q4 & FY2018 Highlights TSX:TGZ / OTCQX:TGCDF Friday, February - - PowerPoint PPT Presentation

Q4 & FY2018 Highlights

Friday, February 22, 2019

TSX:TGZ / OTCQX:TGCDF

Forward-Looking Statements

2

All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as

• f the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to
• btain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic

conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others, the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, 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. For a more comprehensive discussion of the risks faced by Teranga, and which may cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the current Annual Information Form (filed and viewable on www.sedar.com and on Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga 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 as required by applicable law. Nothing herein should be construed as either an offer to sell

• r a solicitation to buy or sell Teranga securities.

All references to Teranga 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. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.

Richard Young

President & CEO

2018: A Year of Achievements

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Golden Hill

 Continuous updates – 7 press releases in 2018  Initial resource including 415,000 oz indicated resources grading 2.02 g/t Au and inferred resources

• f 644,000 oz at 1.68 g/t Au1

 Acquired the remaining interest in Golden Hill  Entered into earn-in on adjacent property to the north

Côte d’Ivoire

 Making good progress advancing Miminvest properties, particularly Guitry and Dianra  Commenced technical work at Afema

Wahgnion

 Construction advancing well and in line with initial capital spend estimates  Increased gold reserves by 450,000 oz  Extended mine life to 13 years  Improved initial 5-year operating profile  Filed updated NI 43-101 T echnical Report

Sabodala

 Delivered 245,230 oz in 2018, above production guidance and below cost guidance  Achieved third consecutive year of record production

Refer to Endnote (1) in Appendix

Paul Chawrun

Chief Operating Officer

2018: 5% Year-Over-Year Increase in Production

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Production

(koz Au)

Three Consecutive Record Years of Production

17 131 214 207 212 182 217 233 245 2010 2011 2012 2013 2014 2015 2016 2017 2018

Grade Mined Actual Q3 2018 Guidance NI 43-101 Mine Plan(2) 2018 3.62g/t 2.5g/t – 3.00g/t 3.14g/t

Positive Reconciliation to Reserves

7 Refer to Endnote (8) in Appendix

26%

increase in ounces mined against reserves models over 18-months

…………………………………….. due to an increase in tonnes and grade

Higher Fuel Prices Impact Operating Costs in 2018

8

$11.34 $12.95

2017 2018

$2.36 $2.57

2017 2018

Mining Costs

($/t mined) $2.46 $2.27

Q4 2017 Q4 2018 2018 Guidance: $11.00-$12.50

Milling Costs

($/t milled) $11.36 $13.36

Q4 2017 Q4 2018 2018 Guidance: $2.25-$2.50

Total Cash Costs*

($/oz Au) $721 $660

2017 2018 2018 Guidance: $700-$750

$689 $692

Q4 2017 Q4 2018 *Refer to Appendix – Non-IFRS Performance Measures

Wahgnion Construction (February 2019)

Process Plant – Reagents & Thickener Area

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10

Wahgnion: Shifting Focus to Operations Readiness

Process Plant – Classification Structure, February 2019

Approaching Final Phases of Construction & Commissioning

 Engineering and drafting complete  Civil, structural and mechanical drawings issued  Steel fabrication complete and delivered to site, 25% erected  75% of equipment delivered, including SAG and ball mill shells  Main camp area and essential services now finished  95% of concrete poured  Construction of the tailings storage facility is near completion  Resettlement of multiple families complete  2.8M+ hours worked without a Lost Time Injury

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Wahgnion Construction: Next Steps

Process Plant – CIL Tanks, February 2019

Focused on First Gold Pour in Q4 2019

• Prepare the commissioning schedule for plant production ramp-up

to nameplate capacity following mechanical completion

• Revise 2019 mine plan to feed more ore than planned in technical

report to support potential for an earlier than planned commissioning

• Ongoing construction of the first two resettlement sites

(94 households) and community infrastructure

Navin Dyal

Chief Financial Officer

Revenue ($ millions)

Increased Gold Sales Drives 2018 Revenue

Three months ended December 31 Twelve months ended December 31 2018 2017 % Change Per ounce 2018 2017 % Change $1,232 $1,279 (4%) Average realized gold price* $1,271 $1,261 1% $1,226 $1,276 (4%) Average spot gold price $1,268 $1,257 1% $1,186 $1,241 (4%) Low $1,178 $1,151 2% $1,279 $1,303 (2%) High $1,355 $1,346 1%

$291.7 $312.6

2017 2018

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$88.3 $76.1

Q4 2017 Q4 2018

Revenue ($ millions)

14%

Decrease

7%

Increase

*Refer to Non-IFRS Performance Measures in Appendix

14 (Per Ounce)

2018 2017 2018 2017 2018 Guidance Cost of sales $962 $930 $937 $961 $950 – $1,025 T

• tal cash costs*

$692 $689 $660 $721 $700 – $750 All-in sustaining costs* $1,105 $938 $1,006 $1,024 $1,000 – $1,075 Non-cash inventory movements and amortized advanced royalty costs ($107) ($78) ($66) ($81) ($50) All-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs)* $998 $860 $940 $943 $950 – $1,025 Q4 2018

Improved Per Ounce Costs for 2018; Beat Cost Guidance

*Refer to Non-IFRS Performance Measures in Appendix

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$26.6 $12.5 Q4 2017 Q4 2018

EBITDA*

($ millions) $95.3 $111.9 2017 2018

Profit Metrics: Gross Profit and EBITDA*

Gross Profit

($ millions) $24.1 $16.8 Q4 2017 Q4 2018 $69.6 $82.1 2017 2018

17%

Increase

18%

Increase

• 53%

Decrease

• 31%

Decrease

*Refer to Non-IFRS Performance Measures in Appendix

Q4 Net Profit (Loss) Attributable to Shareholders & EPS Effected by Higher Income Taxes

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Net Profit Attributable to Shareholders

($ millions) $8.7 $1.2 Q4 2017 Q4 2018

Earnings per Share (basic)

$0.08 $0.01 Q4 2017 Q4 2018

Adjusted Net Profit Attributable to Shareholders*

($ millions)

Adjusted Earnings per Share* (basic)

$5.8

• $10.6

Q4 2017 Q4 2018 $0.05

• $0.10

Q4 2017 Q4 2018

86%

Decrease

86%

Decrease Adjusting for items not reflective of underlying performance: 1. Net losses on gold forward sales of $3.7M 2. Non-cash accretion expense of $1.7M 3. Non-cash fair value changes of $0.4M 4. Impact of foreign exchange on deferred taxes of $3.2M

*Refer to Non-IFRS Performance Measures in Appendix

2018 Net Profit Attributable to Shareholders & EPS Effected by Higher Income Taxes

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Net Profit Attributable to Shareholders

($ millions) $30.1 $18.1 2017 2018

Earnings per Share (basic)

$0.28 $0.17 2017 2018

Adjusted Net Profit Attributable to Shareholders*

($ millions)

Adjusted Earnings per Share* (basic)

$31.9 $11.8 2017 2018 $0.30 $0.11 2017 2018

*Refer to Non-IFRS Performance Measures in Appendix

63%

Decrease

63%

Decrease

40%

Decrease

40%

Decrease Adjusting for items not reflective of underlying performance: 1. Gains on gold forward sales contracts of $7.5M 2. Non-cash accretion expense of $8.9M 3. Net foreign exchange losses of $1.5M 4. Non-cash fair value changes of $1.5M 5. Impact of foreign exchange on deferred taxes and other of $9.7M

Operating Cash Flows

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$71.4 $92.1 2017 2018 $82.6 $96.6 2017 2018

Operating Cash Flow Before Changes in Working Capital Excluding Inventories ($ millions) Net Cash Provided by Operating Activities ($ millions)

29%

Increase

17%

Increase

WGO project capital spend to-date

……………………………………..

63% OF TOTAL COMMITMENT VALUE OF $209M

$132M

Liquidity

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As at December 31, 2018

Cash & Cash Equivalents

Balance of $46.6M

Taurus Facility

Total drawdown $112.2M Remaining balance $62.8M Subsequent to December 31, 2018

• Drew down $35 million leaving a

remaining undrawn balance of $28M

• Agreed to terms of $12.5M

equipment facility agreement

• Short-term repurpose of $25M

Golden Hill facility

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2019 Guidance (Year Ended December 31, 2019)

Refer to Endnotes (3), (4), (5), (6), (7) and (8) in the Appendix

Sabodala Wahgnion Consolidated8 Operating Results Total mined (‘000t) 37,000 – 39,500 6,800 – 7,200

• Ore Mined

(‘000t) 3,000 – 3,500 500 – 650

• Grade mined

(g/t) 1.50 – 2.00 1.80 – 2.00

• Strip ratio

waste/ore 9.5 – 12.0

• Ore milled

(‘000t) 4,100 – 4,300 500 – 650

• Head grade

(g/t) 1.80 – 2.00 1.80 – 2.00

• Recovery rate

% 89.0 – 91.0 ~90.0

• Gold produced 3

(oz) 215,000 – 230,000 30,000 – 40,000 245,000 – 270,000 Cost of sales per ounce sold $/oz sold 1,050 – 1,125 1,175 – 1,250 1,050 – 1,125 Total cash costs per ounce sold * $/oz sold 725 – 775

• All-in sustaining costs 4*

$/oz sold 900 – 975 1,050 – 1,125 1,000 – 1,100 Non-cash inventory movements and amortized advanced royalty costs 4 $/oz sold (75) (300) ~ (100) All-in sustaining costs (excluding non- cash inventory movements and amortized advanced royalty costs) 4 $/oz sold 825 – 900 750 – 825 900 – 1,000 Mine Production Costs $ millions 165 – 180

• Capital

Expenditures Sustaining Capital 5 $ millions 10 – 15

• Resettlement Capital

$ millions 15 – 20

• Wahgnion Construction

$ millions

• 115 – 120
• Wahgnion Pre-Operating Costs

$ millions

• ~30
• Corporate and

Other Corporate Administration Expense $ millions

• 13.0 – 14.0

Share-Based Compensation Expense 6 $ millions

• 3.5 – 4.5

Regional Administration Costs $ millions

• 2.0 – 3.0

Community Social Responsibility $ millions

• 4 – 5

Exploration and Evaluation 7 $ millions

• 5 – 15

*Refer to Non-IFRS Performance Measures in the Appendix

David Mallo

Vice President, Exploration

For full details on Golden Hill, please visit www.terangagold.com

Early-Stage Initial Mineral Resource at Golden Hill

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Geology

Tarkwaian Type Sediments Volcano Sediments Mixed Volcano Sediments & Volcanics Basalt Grantoid Batholith

Ma North

Golden Hill (Burkina Faso, West Africa)

Exploration licenses:468 km2 Ma Main Ma East Nahiri Gogoba West Nahiri Plateau Jack Hammer Hill Peksou North Peksou C-Zone B-Zone A-Zone

Highlights of Initial Resource



Excellent along trend and to-depth continuity of gold mineralization at all prospects drilled



Provides solid base from which to grow Golden Hill



Reaffirms interpretations that each prospect offers substantial upside for size expansion



Subsequent drilling will prioritize increasing resources and advancing the project into the feasibility stage

415,000 oz at 2.02 g/t

1 Indicated

644,000 oz at 1.68 g/t

1 Inferred

Refer to Endnote to (1) in the Appendix

Ma Structural Complex

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Initial Resource Highlights Various components of the Ma Structural Complex offer several opportunities for additional resource focused exploration Ma North: Now a High-Priority Drill Target Area Latest drilling expanded mineralization considerably to the east where multiple brecciated shear zones have been intersected Ma Main: Most Extensively Drilled Prospect To-date Considerable potential to be evaluated down plunge of the wider and higher-grade mineralization, along 2 km strike extent targeting pit depth extension

Peksou / C-Zone

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Plan View

Peksou C-Zone

452,000E 1,227,000N 1,228,000N

Isometric View Looking NE Isometric View Looking NE

Highlights of Initial Resource

• Highest grade component from initial resource

estimation with an inferred resource of 263,000

• unces grading 2.13 g/t gold
• Gold zones at C-Zone and Peksou remain open,

both along trend to depth, along defined plunge

• rientations – all worthy of follow-up exploration

drilling evaluation

• Further exploration upside exists in the area in and

around the intersection of the Peksou and C-Zone mineralized trends as well as along trend further to the east-northeast beyond this structural intersection

Jackhammer Hill

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Highlights of Initial Resource



Jackhammer Hill initial resource estimation was lower than anticipated



Despite producing encouraging results since its discovery in late-2017, the resource estimation pit was smaller than anticipated based on the current modeling



Reassessing the potential structural controls on the mineralization is underway towards outlining areas for further drilling evaluation

A-Zone and B-Zone

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Highlights of Initial Resource A-Zone

• Demonstrates further upside potential
• Requires additional drill evaluation along trend, as

well as, both up-dip and down-dip of the historic drilling results B-Zone

• Although more restricted to expansion, B-Zone is still
• pen both up-dip and down-dip of historic drilling

intersections

Latest Discovery: Gogoba West

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• Located mid-way between the Ma Structural Complex and

Jackhammer Hill

• Associated with a major NW trending structural corridor

traceable over a substantial distance

• Structure is also host to mineralization identified at Nahiri and

Nahiri Plateau

• Gogoba West is a Prospecting Discovery based on solid

interpretive geology, field observation, structural interpretation and persistence

• Soil sampling, prospecting and geologic/structural mapping is
• ngoing between Gogoba West and Nahiri

High Priority Target

Ma Structural Complex

• Further drilling at Ma North, especially the eastern end

where multiple mineralized and brecciated structures exist

• Drilling down plunge of the multiple plunges orientations at

Ma Main

• Reinterpretation of the Ma East component and address

the QA/QC questions related to historic drilling

• Explore for the western extension

Peksou/C-Zone

• Drilling along trend to the east – northeast beyond the

intersection of these two trends

• Drilling down plunge of the widest and best grade portions
• f C-Zone
• Address the QA/QC questions related to historic drilling at

C-Zone

• Explore a potential off-set extension of Peksou

Jackhammer Hill

• Re-Interpretation of the geologic model taking into

account the regional setting and NW oriented cross structures

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Opportunities to Enhance Mineral Resource

A-Zone, B-Zone, Nahiri

• Address the QA/QC questions related to A and B Zones
• Drill along trend and up-dip/down-dip of A-Zone (B-Zone

is limited)

• Re-interpret Nahiri in relation to the New GogobaWest

Discovery (located within the same strong NW trending regional structure) New Targets

• Continue the successful prospecting, soil sampling,

mechanical trenching, auger drilling programs to identify favorable structural targets

• Initial drilling at the new discovery, GogobaWest
• Initiate field evaluation in preparation for early-stage

drilling at the 5-6 targets on the adjacent ACC Resources property that appear very similar to Golden Hill prospects

• Initiate exploration programs further afield of the current

Golden Hill prospects within the identical geologic and structural setting

Q&A

30

Sabodala Gold Mine

(Senegal)

Wahgnion Gold Mine

(Burkina Faso)

Golden Hill Project

(Burkina Faso)

Miminvest & Afema JVs

(Côte d’Ivoire)

Exploration & Resource Conversion

Mid-Tier Producer with Scale and Diversification

Strong Organic Growth Pipeline

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Appendix

Qualified Persons Statement

32 The technical information contained in this document relating to the Sabodala and Wahgnion open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the Professional Engineers O

• ntario. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Mr. Ling 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 "Qualified Person" under NI 43- 101 Standards of Disclosure for Mineral Projects. Mr. Ling has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document. The technical information contained in this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of O

• ntario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Ms.

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 "Qualified Person" under NI 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this document of the matters based on her compiled information in the form and context in which it appears in this document. The technical information contained in this document relating to the Sabodala underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng., of Roscoe Postle Associates Inc. (“RPA”), who is a member of the Professional Engineers O

• ntario. Mr. Sepp is “independent” within the meaning of NI 43-101. Mr. Sepp has sufficient experience

which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a “Qualified Person” under NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Sepp has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document. Teranga's exploration programs were managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee of Teranga, during the period of this resource update and is not "independent" within the meaning of NI 43-101. Mr. Mann 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 “Qualified Person” as under NI 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this document relating to exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the

• information. The RC and diamond core samples are assayed in the BIGS Global Laboratory in O

uagadougou, Burkina Faso. Mr. Mann has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document. Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves. Teranga confirms that it is not aware of any new information or data that materially affects the information included in the technical reports for the Sabodala Project (August 30, 2017) and the Wahgnion Project ( O ctober 31, 2018) pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (the “Technical Reports”), or fourth quarter results, market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements concerning the Technical Reports continue to apply and have not materially changed.

33

Non-IFRS Performance Measures

The Company has included non-IFRS measures in this document, including “total cash costs”, “total cash costs per ounce sold”, “all-in sustaining costs” (“AISC”), “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs)”, “AISC per ounce”, “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce”, “earnings before interest, taxes, depreciation and amortization” (“EBITDA”), “free cash flow”, “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share”. These measures are intended to provide additional information only and do not have any standardized meaning under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flow from

• perations as determined under IFRS. Other companies may calculate these measures differently.

“Total cash costs” figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold

• producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures

presented may not be comparable to other similarly titled measure of other companies. “Total cash costs per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports total cash costs on a sales basis. The World Gold Council (“WGC”) definition of AISC seeks to extend the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. AISC excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all

• f the Company’s cash expenditures. In addition, the calculation of AISC does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the

Company’s overall profitability. The Company also expands upon the WGC definition of AISC by presenting an additional measure of “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period. For Sabodala and Wahgnion, life of mine total cash costs and AISC figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Consolidated total cash costs and all-in sustaining cost figures add corporate overhead costs. “Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and 80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently. “EBITDA” excludes income tax, finance costs (before accretion expense), interest income, and depreciation and amortization from net profits. EBITDA is intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures. “Free cash flow” is calculated as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives. Starting in 2018, the Company adopted “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share” as new non-IFRS financial measures. These non-IFRS financial measures are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more readily in comparison with results from prior periods. The Company calculates “adjusted net profit attributable to shareholders” as net (loss)/profit attributable to shareholders adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term

• bligations, impairment provisions and reversals thereof, and other unusual or non-recurring items. Commencing the second quarter 2018, the Company also excluded the impact of foreign exchange movements on deferred

taxes and other non-cash fair value changes from adjusted net profit attributable to shareholders as management does not believe these factors to be reflective of the underlying performance of the Company. “Adjusted basic earnings per share” is calculated using the weighted average number of shares outstanding under the basic method of earnings per share as determined under IFRS For more information and the reconciliation of these measures, please refer to the Company’s latest management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.

Endnotes

34

1. Golden Hill’s Mineral Resource estimate as at November 30, 2018. For more information regarding Golden Hill’s Mineral Resource and related notes, please refer to the press release dated February 21, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. 2. Sabodala’s Mineral Reserve and Mineral Resource estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. 3. 22,500 ounces of Sabodala gold production are to be sold to Franco-Nevada Corporation (“Franco-Nevada”) at 20% of the spot gold price. All Wahgnion gold production is subject to a gold offtake payment agreement with Taurus Funds (“Offtake Agreement”) (see Financial Instruments section for more details). 4. All-in sustaining costs per ounce is a non-IFRS financial measure and does not have a standard meaning under IFRS. All-in sustaining costs per ounce sold calculated at the mine site level includes only total cash costs per ounce and sustaining capital expenditures. All-in sustaining costs for Sabodala includes sustaining capital expenditures but excludes growth capital related to the Sabodala village resettlement. Corporate administration and share-based compensation expense are presented separately in this table and are not allocated to the mine site level costs. All-in sustaining costs presented on a consolidated basis includes corporate administration and share-based compensation expense. All-in sustaining costs also includes non-cash inventory movements and non-cash amortization of advanced royalties. 5. Excludes capitalized deferred stripping costs, included in mine production costs. 6. Share-based compensation expense assumes a constant share price of C$4.00 per Teranga share. 7. Exploration and evaluation costs includes both expensed exploration, primarily attributable to exploration work on exploration permits, and capitalized reserve development, which is work performed on mine licenses. 8. This forecast financial information is based on the following material assumptions for the remainder of 2019: gold price: $1,250 per ounce; Brent Crude Oil: $62 per barrel; Euro:USD exchange rate of 1:1.15. Other important assumptions: any political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries is expected to remain consistent with the life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production.

Trish Moran Head of Investor Relations 77 King Street West, Suite 2110 T

• ronto, ON M5K 2A1

T : +1.416.607.4507 E: investor@terangagold.com W: terangagold.com

TSX:TGZ / OTCQX: TGCDF