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Producing and Exploring
August 2011
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. 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.
3
Capitalization Summary
(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 June 30, 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.
Ticker symbol: TGZ: TSX/ASX
Shares outstanding (1): 245.6 million
Stock options outstanding: 14.4 million
Share price (as at August 10, 2011): C$2.44
Market capitalization: C$599million
Cash position(2): US$65.9 million(3)
Debt position (2)(4): US$20.1 million
Net cash position (2): US$45.1 million
40 MM
20%
Focused on GROWTH
• Focused on Growing Reserves
• Focused on Growing Production
• Focused on Financial Strength
4
Assets
Large exploration land package in Senegal, W.A.
• 1,488km2 virtually unexplored land surrounding operating mill
• An emerging world class gold district
Operating mine / mill
• Proven performance
• Only gold mining operation in the country
Strong balance sheet
• Able to self-fund exploration
Experienced management team
• Proven track record
5
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
6
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 – paved road within 56 km of mine site
– 30 MW heavy fuel oil power plant located on site (36 MW with mill expansion)
7
Highlights
Investor concerns during the IPO (Nov. 2010):
Short mine life
High cash costs
Hedge book
During the first half, 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
Accelerated delivery against hedge
Focused on adding reserves
8
Growth Strategy
Focused on Growing Reserves - 1.5Moz currently to …
• Objective: 10-15+ year mine life
• Growth through exploration – aggressive exploration program on 1,455km2 Regional Land
Package of virtually unexplored prolific land
• Growth through regional opportunities – primary focus Senegal
Focused on Growing Production – 140,000oz current to …
• Leveraging off our existing mill – land package all truckable
• Doubling mill capacity – could increase further
Focused on Financial Strength – maintain strong balance sheet to self-fund exploration
• Eliminating hedge book – quickly but prudently
• Margin expansion (eliminate hedge and lower costs)
• Significant free cash flow to self-fund exploration strategy
• Manageable capex requirements
9
Focused on Growing Production
Calendar Year 2011
•Est. production 140,000 oz at $750 - $775/oz
•CapEx $75M (primarily for mill expansion and capitalized Mine License exploration)
Calendar Year 2012
•Est. production 220,000 oz at $575-$625/oz
•CapEx ~ $25M (primarily for exploration) (1)
Post 2012 cash costs are expected to remain around the $600-650/oz level
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014
Production Profile („000 ozs)
Production Exploration Success
• Assumes increased
production from regional
exploration success
(1) Excludes capital costs to develop regional deposits
10
Focused on Financial Strength
Maintain strong balance sheet to self-fund exploration
• IPO recapitalization of balance sheet – net cash position US$45.1M(2)
• Eliminating hedge book – quickly but prudently – YE 2011~ 150,00oz at ~ $829/oz(3)
Book to be eliminated by mid 2013 if not sooner
• Margin expansion + increased production profile = significant free cash flow
• Manageable capex requirements
(1) Assumes $1500/oz gold price and cash cost of $600/oz
(2) As at June 30, 2011
(3) Non-Deferred Hedge Schedule Appendix page 34
• Assumes $1500/oz spot
gold price
• Rate of margin expansion
is a function of increasing
production through regional
exploration success
200
300
400
500
600
700
800
900
1,000
2011 2012 2013 2014
Cash
Marg
in (
$/o
z)
Cash Margin - expansion ($/oz)
11
Focused on Growing Reserves
West Africa: Prolific, Under Explored Gold Belt
12
0
300
600
900
1,200
1,500
1,800
2,100
Proven and
Probable
Measured and
Indicated
Inferred
Re
se
rve
/Re
so
urc
e (
00
0's
oz)
2,254
(@1.33 g/t)
774
(@1.06 g/t)
1,51
(@1.47 g/t)
(2)(3)
Gold Reserves and Resources(1)
(1) See Appendix page 33
(2) M+I resources are inclusive of reserves
(3) As at June 30, 2010, see Sabodala Technical Report
(3)
Focused on Growing Reserves
Kedougou-Kenieba Inlier – A Birimian Greenstone Belt
13
Focused on Growing Reserves
Exploration Program (Calendar 2011)
1. Mine License Exploration:
$8 MM (~60,000m)
(YTD 30,000m)*
5 Drill Rigs
2. Regional Exploration:
$25 MM (~80-90,000)
( YTD 50,000m)*
12 Drill Rigs
TOTAL: + US$33 MM (140-150,000m)
(+180,000m RAB)
17 drill rigs
SS
C
* Majority of assays are pending – as at June 30, 2011
14
1. Mine License Exploration 2. Regional Exploration
GORA
35 km radius
Budget: $8 M
33km2
Budget: $25M 1,455km2
15
1. Sabodala Mine License Exploration
• US$8 MM exploration program is underway on the Sabodala Mine License
• 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
Masato Extension:
• Continuation of Masato deposit
“The Corridor”:
• Continuation of the main Sabodala
structural trend to the north
Niakafiri, Niakafiri West &
Soukhoto:
• Down-dip extension of Niakafiri,
strike extension of Niakafiri West
and Soukhoto
Sambaya Hill:
• Confluence of Niakafiri Shear Zone
with Main Flat from Sabodala and
Masato Shear
16
SABODALA STRUCTURAL TREND (“The Corridor”)
•Northerly trending extension of Sabodala pit
•Mineralization traced more than 200m 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 Mine License – “The Corridor”
Ayoub’s
Thrust
Mylonite
Shear Zone
Sabodala Pit
17
Sabodala Mine License – Masato / Sambaya Hill Target
MASATO / SAMBAYA HILL
•Masato structural trend (1.6 Moz on Oromin JV) strikes
across onto our mine license
•Plan to conduct 5,000 metres of RC and Diamond drilling
to define structural trend and test structure at depth
•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
•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
Sabodala Pit
Masato Extensions
Sambaya Hill
Masato Down Dip
18
1. Mine License Exploration 2. Regional Exploration
GORA
35 KM radius
Budget: $8 M
33km2
Budget: $25M 1,455km2
19
2. Regional Exploration
• From 2007 – 2009, no significant drilling was
done on the 1,455 km2 Regional Land Package
due to cash constraints
• There are 27 drill targets identified to drill by
end of year; drilling program (US$25M)
currently underway
• 50,000m of DD and RC and 98,000m of RAB
drilling completed June 30, 2011
• 10 drill rigs are currently on the Regional Land
Package (2 more rigs are expected in Sept.)
• All targets in trucking distance of the existing
mill
GORA
“The Donut”
Gora
Tourokhoto
35km radius
Toumboumba
20
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
•800m strike length auriferous quartz vein, outcropping
•Deposit open in all directions
•4 active drill rigs (3 DD, 1 RC/DD)
•Induced polarization (“IP”) survey has been completed over the Gora
deposit and has identified gold anomalies along strike and parallel to
Gora – follow-up testing required
•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
21
Gora – High-Grade Quartz Vein System
1. Drilling completed to date – 144 RC and DD holes, 24,705m
• Current phase of 25,000m to be completed by August 2011, test to vertical depth of 130m
2. Step-out program commenced
• Minimum 2,400m DD
• 9 hole program expanded to 11, 8 holes completed and confirmed presence of mineralized structure in all 8
• True widths of up to 12 metres
• All assays pending but confirmed presence of mineralized structure
3. Exploration of immediate North and South – 6,200m program
• RC program, late July to Sept (depending on rig availability and performance)
4. Further 10,000m of RC, 5,000m DD
• Test strike extent of Gora mineralized trend and nearby parallel IP anomalies
• Commencement of program likely early October (depending on rig availability)
•Selected latest results include:
•Ongoing exploration, permitting, and feasibility
•Expect to bring resource to reserve by end of calendar 2011 with the goal of processing high-grade ore as soon as late 2012
June 13, 2011 - pre s s re le as e July 11, 2011 - pre s s re le as e Re ce nt re s ults
5m @ 33.7 g/t f rom 111m (V ein 1) 2m @ 20.6 g/t f rom 88m 1m @ 9.5 g/t f rom 23m
2m @ 61.3 g/t f rom 126 m (V ein 1) 2m @ 27.3 g/t f rom 108m 1m @ 3.6 g/t f rom 79m
3m @ 26.7 g/t f rom 154 m (V ein 1) 2m @ 20.7 g/t f rom 79m 1m @ 5.8 g/t f rom 28m
3m @ 47.7 g/t f rom 164 m (V ein 5) 4m @ 23.2 g/t f rom 132m
1m @ 33.0 g/t f rom 156m (V ein 4) 3m @ 24.1 g/t f rom 155m
4m @ 10.7 g/t f rom 145m (V ein 2) 4m @ 34.1 g/t f rom 155m
1m @ 51.8 g/t f rom 112m (V ein 2
9m @ 3.2 g/t f rom 87m (V ein 1)
22
Toumboumba – Newest Target
•Latest discovery, potential to become second regional
deposit through the mill
•Located 10 km NW from Sabodala mill
•Alteration hosted mostly in granite (laterite cover)
•RAB drilling program commenced in April
•Expanded to encompass entire structural domain
•To date, 1,113 holes, 47,584m on a 100 x 50m grid
•Significant widths of ore mineralization were encountered
in western portion of anomaly, RAB holes grading >0.5 g/t
•Targets identified by RAB program are the subject of the
current RC program
•To date, 47 RC holes, 8,748m completed
•Continues to return wide auriferous zones
•Oxide mineralization of up to 50m in depth
•At minimum, potential for heap leaching
•Production could be fast tracked without displacing
material from Sabodala mill
•Deeper drilled required
23
Toumboumba – Newest Target
June 13, 2011 - pre s s re le as e July 11, 2011 - pre s s re le as e Re ce nt re s ults
-e ar ly RAB re s ults -RAB re s ults -RAB re s ults
3m @ 6.13 g/t, inc luding 1m @ 15.44 g/t 2m @ 6.65 g/t f rom 16m 4m @ 3.31 g/t f rom 26m
3m @ 11.99 g/t, inc luding 1m @ 25.2 g/t 4m @ 6.06 g/t f rom 8m 2m @ 2.79 g/t f rom 20m
6m @ 18.85 g/t, inc luding 4m @ 27.7 g/t 2m @ 32.87 g/t f rom 38m
2m @ 3.57 g/t f rom 12m
3m @ 6.34 g/t f rom 30m
June 13, 2011 - pre ss re le as e July 11, 2011 - pre s s re le ase
-ear ly RC re s ults -RC re s ults
10m @ 2.35 g/t, inc luding 2m @ 9.69 g/t 6m @ 1.91 g/t f rom 17m including 1m @ 8.07 g/t
8m @ 5.45 g/t, inc luding 2m @ 17.75 g/t 3m @ 17.15 g/t f rom 39m including 1m @ 50 g/t
6m @ 2.68 g/t f rom 56m including 1m @ 8.79 g/t
3m @ 11.85 g/t f rom 36m including 1m @ 30.5 g/t
Re ce nt re s ults
-RC re s ults - Aqua Re gia
[email protected]/t f rom 37m including [email protected]/t and [email protected]/t f rom 52m inc luding [email protected]/t f rom SNWRC016
[email protected]/t f rom 125m f rom SNWRC017
[email protected]/t f rom 21m f rom SNWRC023
[email protected]/t f rom 52m f rom SNWRC027
[email protected]/t f rom 180m f rom SNWRC029
24
Toumboumba – Newest Target
25
Diegoun North – “THE DONUT”
HONEY
JAM
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
HONEY
JAM
•19,000m RAB drill program completed at Cinnamon, 663 holes
•143 holes returned auriferous intersections above 0.5 g/t
•First pass RC program at Jam and Honey; 51 holes completed for just
under 8,800m (40 holes anomalous levels of gold > 0.5 g/t)
•Recognition of a well-developed, auriferous north-east trending structure
Sabodala Ore Body
26
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
•23,416m RAB drill program completed with a total 1,006 holes
•Identified eight coherent zones of gold anomalism
•Early scout DD completed in Q1 identified significant structural zones
which host auriferous alteration zones
•Targets up to 700m in strike length
•Follow up geophysical, RC and DD testing required
27
Goundamekho - Extensive Surface Gold Workings on Structures
Gold from Trenches
75g nugget from artisan workings
• 35 RC holes for 4,200m completed
• Multiple gold bearing structures warrant follow-up drilling
28
Exploration Team / On Site Assay Lab
Geochem Sampling Team at Makana
Mapping at Makana
RC Drilling at Bransan
Niang, Database and GIS
Management
Structural Mapping
Field Work Sounkounkou On site assay lab
Mapping Trenches at Dembala Berola Part of team at Exploration Office
29
Kedougou-Kenieba Inlier – A Birimian Greenstone Belt
An emerging world class gold district.
Focused on GROWTH
30
1. Experienced Management Team
2. Senegal West Africa – 1,488km2 land position
• Largest land position in Senegal
3. Operating mine and mill – only mill in Senegal
4. Mill expansion underway
• from 2Mtpa to ~4Mtpa - increasing gold production profile
5. Aggressive exploration program
• US$33M to be spent in calendar 2011
• ~17 drill rigs
6. Strong Balance sheet – increasing free cash flow – with margin expansion
World-class asset in its early stages
Summary - Focused on GROWTH
Producing and Exploring
August 2011
Appendices
Competent Persons Statement The scientific and 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 Fellow with 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 defined in NI43-101. Mr. Van Brunt
has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Van Brunt is a full-time
employee of Teranga and not independent of Teranga within the meaning of NI43-101.
The scientific and technical information contained in this release relating to the regional exploration is based on information compiled by Mr.
Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek 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. Pawlitschek has consented to the inclusion of this information in the form and context in which it
appears in this release. Pawlitschek is a full-time employee of Teranga and not independent of Teranga within the meaning of NI43-101.
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 reviewed and verified the data contained in this press release, 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.
33
Sabodala Gold Project: Reserves & Resources
(1) See the Sabodala Technical Report ; #’s as at June 30, 2010
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)
34
Non-Deferred Hedge Schedule
Delivery Date Price US$/oz Ounces
17-Aug-2011 846.00 5,500
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 198,500
Note: See page 40 of the Prospectus
35
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
• 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)
Oliver Lennox-King
Director
• 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
Alan R. Thomas
Director
• 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
