Teranga q4 year end webcast fina lv2 website

1

PRODUCING AND EXPLORING

DECEMBER QUARTER AND 2011 YEAR END CONFERENCE CALL & WEBCAST

2

CAUTIONARY STATEMENT This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation, which reflects management’s expectations regarding Teranga Gold Corporation’s (“Teranga” or the “Company”) future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify such forward looking information. Although the forward looking information contained in this presentation reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking information. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking information, including those listed in the “Risk Factors” section of the prospectus of Teranga, dated November 11, 2010 (the “Prospectus”). These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga’s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities law. Forward looking information and other information contained herein concerning mineral exploration and management’s general expectations concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on various factors. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource. This presentation does not constitute in any way an offer or invitation to subscribe for securities in Teranga pursuant to the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission.

3

COMPETENT PERSONS STATEMENT The information in this presentation that relates to exploration results, targets, mineral resources or ore reserves within the SGO Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and therefore not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves”. Mr. Van Brunt consents to the inclusion of this information in the form and context in which it appears in this presentation. The information in this document that relates to exploration results, targets, mineral resources or ore reserves within the Regional Exploration Package is based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australasian Institute of Geoscientists. Mr. Pawlitschek is a full time employee of Teranga and therefore not independent. Mr. Pawlitschek has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves”. Mr. Pawlitschek consents to the inclusion of this information in the form and context in which it appears in this presentation.

4

DECEMBER QUARTER / YEAR END 2011 CONFERENCE CALL & WEBCAST

Alan R. Hill Chairman & CEO

Richard Young President & CFO

FOCUSED ON GROWTH

FOCUSED ON:

GROWING RESERVES

GROWING PRODUCTION

FINANCIAL STRENGTH

5

FOCUSED ON GROWTH

FOCUSED ON:

GROWING RESERVES

GROWING PRODUCTION

FINANCIAL STRENGTH

TERANGA – YEAR ONE

• 2011 prepared us for increasing production and lowering costs and increasing cash margins as we move forward

• Continue to self-fund extensive exploration

program

• Very encouraging drill results on Mine License

• Plans to double gold inventory on Mine License alone

• Promising results on Regional Exploration

Program

6

OPERATING HIGHLIGHTS

December quarter:

• Gold produced – 36,695 oz’s • Highest quarterly production but delay

in accessing higher grade zone • ~17,000 oz’s at 2.37 gpt stockpiled

(processing postponed to Q1’12)

• Gold sold – 34,665 oz’s at cash costs of $902/oz

• Decreasing cash costs as production increases

• Largely fixed cost operation

7

OPERATING HIGHLIGHTS Fiscal 2011(1)

• 147,728 oz’s produced

• 153,728 oz’s sold at cash cost of $872/oz

Calendar 2011

• 131,461 oz’s produced

• 137,136 oz’s sold at cash cost of $900/oz

• In line with revised guidance

• Costs affected by higher fuel, labour and maintenance costs

(1) Fiscal year is from October 1, 2010 to December 31, 2011, a 15 month year. Teranga is converting from a June 30 to calendar year end.

8

Revenue for the December quarter: • $51.5M • 7,385 oz’s delivered into forward sales

contracts at $846/oz • 27,280 oz’s sold in the spot market at an

average of $1,654/oz • $1,482/oz – average realized price

Revenue for the fiscal 2011:

• $187M • 47% of oz’s delivered into the forward

sales contracts at $846/oz • 53% of oz’s delivered into the spot market

at an average priced of $1,537/oz • $1,213/oz – average realized price

FINANCIAL HIGHLIGHTS

9

Net profit for the December quarter: • $12.6M or $0.09/share

Net loss for the fiscal 2011:

• $15.8M or $0.09/share • Affected by deliveries into hedge book,

high exploration costs, and stock based compensation expense

Capital expenditure:

• For the quarter: $27.3M • For the fiscal year: $76.4M • Primarily for mill expansion, mobile

equipment, and capitalized mine site exploration


10

Cash position at December 31, 2011: • $11M in cash, cash equivalents and short

term investment including restricted cash

• Sufficient cash liquidity from current cash plus expected future cash flows to support our liquidity requirements

• Additional flexibility provided by deferring

delivery of 28,000 ounces due in Q1 until later in 2012

• Rebuild cash balance ($26.5M at January 31, 2012)

• Maintain cash balance of ~$20M • Excess cash flow reinvested in

exploration or used to accelerate hedge deliveries


11

Plant expansion:

• On schedule to be completed by the end of Q1

• Expected total cost of $62M

• 10% higher than budget relating to scope

changes, and an increase in the price for structural steel fabrication, and higher foreign currency costs

• $15M remaining to be spent in 2012


12

Net change in unrealized gold hedge gain:

• Unrealized non-cash gain of $1.8M for the 15 months ended December 31, 2011

• Reduction in financial derivative liability

due to 72,000 oz’s delivered into the hedge book

• Mark-to-market loss on remaining 174,500 oz’s under hedge contract decreased to $129.6M


13

New fleet loan facility:

• In December quarter, expansion of mobile equipment loan finalized with Société Générale by an additional $12.8M

• Quarterly repayments

• Final payment on September 30, 2013

• Currently drawn down to $24.4M


14

FOCUSED ON BUILDING FINANCIAL STRENGTH Building stronger balance sheet to self-fund exploration and development

• 2012 Production and Cash Cost Guidance:

• 210,000 – 225,000 oz’s at $600 - $650/oz

• Rising production, lowering costs

• Margin expansion + increased production profile = significant free cash flow to self-fund exploration and development strategy

• Manageable capex requirements in 2012: $30M

(1) Assumes $1600/oz gold price and cash cost of $625/oz (2) Non-Deferred Hedge Schedule page 39

Rate of margin expansion is a function of increasing production through regional exploration success *After eliminating hedge position

0

200

400

600

800

1000

1200

2011 2012 2013* 2014

Cash Margin ($/oz)(1,2)

15

FOCUSED ON GROWTH

FOCUSED ON:

GROWING RESERVES

GROWING PRODUCTION

FINANCIAL STRENGTH

2011 Changes made to reduce operating risks:

• Mill expansion

• Automated controls for better blending to increase throughput

• Second access ramp to the pit

• Revised drilling, blasting, and maintenance contracts in order to increase mining rate

• Improvements to employee compensation

16

FOCUSED ON GROWING RESERVES

(1) See page 38 (2) M+I Resources are inclusive of reserves

Kedougou-Kenieba Inlier – A Birimian Greenstone Belt

1.659

2.138

1.51

0.00

0.50

1.00

1.50

2.00

2.50

Proven andProbableReserves

Measured andIndicated

Resources

InferredResources

Moz

Reserves and Resources(1,2) December 31, 2011

17

2012 Exploration Program 1. Mine License Exploration: $20M (77,000m) 2. Regional Exploration: $20M (90,000m) TOTAL: $40M (167,000m) (+140,000m RAB) 2011 Exploration Program: $46M

FOCUSED ON GROWING RESERVES

Full drill results are posted at terangagold.com

18

35 km radius

1. MINE LICENSE EXPLORATION 2. REGIONAL EXPLORATION

33km2 1,500km2

19

1. SABODALA MINE LICENSE EXPLORATION • $20M exploration program is underway on

the Sabodala Mine License

• Potential to expand existing gold inventory on the ML from 1.55Moz to 2.5 – 3.5Moz(1,2,3) over the next 12 to 18 months increasing the mine life to ~ 10 to 15 years

• From deepening the Sabodala pit to the north along the Main Flat Extension

• From continuation of the Masato deposit

• From conversion of Niakafiri resources to reserves

(1) Potential to expand existing gold mineralization to between 40 and 50 M tonnes at grades of between 1.5 to 1.9 gpt Au for a total inventory of 2.5 to 3.5Moz

(2) This exploration target is not a Mineral Resource. The potential quality and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

(3) See Key Assumptions on page 37

20

FOCUSED ON GROWTH

FOCUSED ON:

GROWING RESERVES

2011 MINE LICENSE HIGHLIGHTS

• Intersection of significant wide widths of high

grade mineralization outside the Sabodala ultimate pit limit as part of MFE drill program

• Discovery of multiple high-grade zones in the LFZ just below the MFE area

• Successful intersection and extension of the Masato deposit down dip onto our Mine License and 500m along strike with potentially underground mineable high-grade ore

21

FOCUSED ON GROWTH

FOCUSED ON:

GROWING RESERVES

2012 MINE LICENSE

• Minimum 6 drill rigs

• $20M

• 77,000m of diamond and RC drilling

22

MINE LICENSE EXPLORATION – MAIN FLAT EXTENSION (“MFE”)

Main Flat Extension – principal gold hosts of Sabodala deposit • MFE program is designed to test the continuity of

this structure to the north beginning with infilling holes

• Significant widths of high grade mineralization: 131m at 3.45 gpt 87m at 3.11 gpt 70m at 3.0 gpt 53m at 4.5 gpt

Lower Flat Zone (“LFZ”) – deeper zone below MFE • Drilling confirms multiple flat zones immediately

below Sabodala ultimate pit: 46m at 9.8 gpt 34m at 6.3 gpt


(1) MFE - open pit mineable gold inventory at an average grade between 1.5 – 2.0 gpt, LFZ potentially a similar amount to lower/underground at an average grade between 3.0 and 4.0 gpt, in 2012

23

CROSS SECTION OF SABODALA GOLD DEPOSIT

24

MINE LICENSE EXPLORATION – “THE CORRIDOR” and AYOUB’S

• Northerly trending extension of Sabodala pit

• Mineralization traced more than 200m north of the existing pit along trend

• Drilling intersected wide widths of alteration similar to Sabodala and Niakafiri

15m @ 1.34 gpt 20m @ 2.10 gpt

• The system is continuous and is showing Sabodala

style albitic alteration to the north where the target remains open down dip and along strike

• The position of Ayoub’s lends itself to sharing stripping for including deeper MFE mineralization into the ultimate pit

Mylonite Shear Zone Ayoub’s

Thrust

Sabodala Pit


25

Sabodala Pit

Masato Extensions

Sambaya Hill

Masato Down Dip

MINE LICENSE EXPLORATION – MASATO

Masato structural trend strikes across onto our Mine License • Oromin Joint Venture has identified open pit

reserves of 0.5Moz about 2km from our mill • Tracking the deposit as it crosses onto our

property

• Multiple mineralized zones have been identified with high grade intervals apparent

• Confirmed strike length of 500m, a dip extent of 200m, and a band of about 40m of solid grade mineralization

• 2km of strike length still to be tested

• Recent results from Masato Down Dip include: 37m at 4.5 gpt 44m at 2.0 gpt


Main Flat Extension

26

MINE LICENSE EXPLORATION – NIAKAFIRI

Niakafiri area has ~300,000 oz’s in reserves in a mineralized envelope of about ~800,000 oz’s

• Deposit remains open below 200m level

• Potential 2H 2012 drilling with intentions of adding

to reserves

• Ongoing community discussions


27

35 km radius

1. MINE LICENSE EXPLORATION 2. REGIONAL EXPLORATION

33km2 1,500km2

28

2. REGIONAL EXPLORATION

• From 2007 – 2009, no significant drilling was done on the 1,455km2 Regional Land Package due to cash constraints

• There are ~40 drill targets identified; $32M spent in 2011 and $20M planned for 2012

• Addition of Garaboureya North exploration permit, land package increases to over 1,500km2

29

GORA

• 2011: 115,000m RC/DD, 150,000m RAB

• Current reserves of 114,000 oz’s @ 5 gpt

• Most advanced target: moving from exploration to development

• Objective of having production in early 2013 permitting dependent

• 22km from Sabodala mill, truckable • High grade-drill intersections continue to expand the

potential footprint of the deposit

Trace of blind veins from RC holes Projected to surface – high correlation with IP trends.


30

TOUMBOUMBA – NEWEST TARGET

• Latest discovery, potential to become second regional deposit through the mill

• Located 10km NW from Sabodala mill

• High grade, lower grade halo, and oxide material • Easily processing at minimum, potential

for heap leaching • Alteration hosted mostly in granite (laterite

cover)

• Oxide mineralization of up to 60m in depth

• RAB results: • 6m @ 18.54 gpt • 4m @ 3.31 gpt • 8m @ 5.46 gpt

• RC results:

• 1m @ 5.20 gpt • 2m @ 21.45 gpt • 4m @ 6.32 gpt


31

DIEGOUN NORTH – “THE DONUT” • 7km x 4km complex of gold anomalism • Contrasting rock types, porphyries, granites,

dolerite & sediments • Rock samples to 80 gpt Au • RAB drilling has defined gold mineralization in bedrock

• Honey and Jam • First pass RC program at Honey and Jam; 51 holes

completed for just under 8,800m (51 holes anomalous levels of gold > 0.1 gpt; 40 holes were >0.5 gpt)

• Recognition of a well-developed, auriferous NE trending structure

• 2012 drilling to focus on understanding ore-grade structural controls and orientations

Sabodala Ore Body


32

• >5km long, up to 1 km wide gold anomaly defined by termite sampling, similar geology as Loulo across the border (12Moz resource)

• Drilling to date has identified a substantial, mineralization system

• Potential to host-ore grade shoots within

• First pass drill program is designed to test for large, near surface open-pitable resource

• Current program is 60% with most assays and interpretation pending

• Parallels NE trending shears of the MTZ

• 3Moz Massawa deposit hosted on MTZ about 25km south

TOUROKHOTO Sabodala Ore Body


33

CORPORATE SOCIAL RESPONSIBILITY • CSR is fundamental to the success of our business

• Healthy, safety, education, sustainability

• Developing schools, health clinics, and improving access to

potable water

• Engaged a renowned Canadian group to assist us in putting together a comprehensive regional development plan

• Along with local, regional, and national government

• Improve the livelihoods of those in the communities in which we operate

• A key component of our vision is to set the benchmark in

Senegal for responsible mining Mining Responsibly and Sharing the Benefits

34

SUMMARY – FOCUSED ON GROWTH

1. Only mill in Senegal – expansion almost complete

2. Largest land position in Senegal

3. Rising production, declining costs

4. Building a stronger balance sheet – increasing production and free cash flow with margin expansion

5. Extensive exploration program

6. Experienced management team

35

PRODUCING AND EXPLORING

DECEMBER QUARTER AND 2011 YEAR END CONFERENCE CALL & WEBCAST

36

APPENDICES

37

Basis for 2.5 – 3.5Moz gold inventory from Mine License Expand upon existing gold mineralization by an additional 20M to 30M tonnes at grades of between 1.5 and 1.9 gpt for a total

inventory of 2.5 to 3.5Moz from the Sabodala Mining License (“ML”) over the next 12 to 18 months. The larger gold inventory base is expected to result from the success of deepening the Sabodala pit to the north along the

MFE/LFZ, extension of the Masato pit onto the ML, potential conversion of Niakafiri resources to reserves as well as adding to the gold mineralization inventory below these three large open pits.

This exploration target is not a Mineral Resource. The potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource, therefore it is uncertain if further exploration will result in the targets being delineated as a Mineral Resource.

The goal of the MFE/LFZ programs is to add 250,000 to 500,000 ounces of gold to the open pit mineable gold inventory at an average grade between 1.5 – 2.0 gpt, as well as potentially a similar amount to lower/underground at an average grade between 3.0 and 4.0 gpt, in 2012.

Rationale: Recent drilling confirms extension of mineralization to the north of the existing pit Potential for identification of additional ounces through infill drilling within area of existing resources under the ML Minimum 5 drill rigs and exploration budget of US$20M dedicated to ML alone in 2012 Program to continue to test similar geophysical anomalies and identified structures within the ML

KEY ASSUMPTIONS

38

SABODALA GOLD PROJECT: RESERVES & RESOURCES (DECEMBER 31, 2012)

M Grade M oztonnes g/t Au Au

Proven and ProbableSabodala 19.89 1.54 0.987Niakafiri 7.814 1.14 0.287Stockpile 4.211 0.94 0.128Subtotal 31.915 1.37 1.402Sutuba 0.353 1.06 0.012Gora 0.709 5.01 0.114Sabodala - additional 3.232 1.26 0.131Total 36.209 1.43 1.659Measured and IndicatedSabodala 44.371 1.07 1.525Niakafiri 10.741 1.12 0.386Gora 1.282 5.22 0.215Sutuba 0.353 1.06 0.012Total 56.747 1.17 2.138InferredSabodala 26.205 1.01 0.848Niakafiri 7.248 0.88 0.205Niakafiri West 7.144 0.82 0.188Soukhoto 0.566 1.32 0.024Gora 0.286 4.16 0.038Diadiako 2.917 1.49 0.119Majiva 2.593 0.64 0.047Toumboumba 0.855 1.5 0.041Total 47.814 0.98 1.51

39

NON-DEFERRED HEDGE SCHEDULE

Delivery Date Price US$/oz Ounces

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 174,500

40

MANAGEMENT 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)

Yani Roditis Vice President, Operations

• Over 10 years experience in mine development and operations with Barrick Gold (1994 – 2005) • Former Chief Operating Officer of Gabriel Resources (2005 – 2010)

Kathy Sipos Vice President, Investor & Stakeholder Relations

• 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)

David Savarie Vice President, General Counsel & Corporate Secretary

• Over 10 years experience in the legal industry • Former Deputy General Counsel and Corporate Secretary of Gabriel Resources • Previously in private practice at Miller Thomson LLP

Mark English General Manager

• 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 development, inclusive of greenfield start-ups • Joined Mineral Deposits Ltd. in June 2006

Bruce Van Brunt Business Development Manager

• Mining engineer and geologist with over 20 years experience • Previously worked in a number of technical capacities with Placer Dome and Echo Bay Mines • Joined Mineral Deposits Ltd. in March 2006

Martin Pawlitschek Regional Exploration Manager

• Geologist with over 15 years experience in the mining industry • Previously spent 11 years at BHP and a number of smaller exploration companies, working in Australia, South

East Asia and Africa • Joined Mineral Deposits Ltd. in July 2007

Documents

Teranga q4 year end webcast fina lv2 website