Vancouver Resource Investment ConferenceJanuary 2018TSX:TGZ / OTCQX:TGCDF

Forward-Looking Statements

2

This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”), whichreflects management’s expectations regarding Teranga Gold Corporation’s (“Teranga” or the “Company”) future growth, results of operations (including, without limitation, futureproduction and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and thesuccess of exploration activities) and opportunities. Wherever possible, words such as “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “trends”, “indications”,“potential”, “estimates”, “predicts”, “forecasts”, “focused on”, “anticipate” or “does not anticipate”, “believe”, “intend”, “ability to”, “intended to”, “objective to” and similar expressionsor statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are “likely” to be taken, occur or be achieved, have been used to identify such forwardlooking information. Specific forward-looking statements in this presentation include the commencement of expected drill programs, net present value, anticipated future cashflows, anticipated construction readiness activities for the Company’s Wahgnion gold project in Burkina Faso as well as the anticipated completion of construction of the Wahgnionproject - including the first gold pour, the anticipated discovery of reserves at the Wahgnion project, and Teranga’s estimated full year financial and operating totals, as well asanticipated 2017 and 2018 operating results. Although the forward-looking information contained in this presentation reflect management’s current beliefs based upon informationcurrently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent withsuch forward looking information. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, currentconditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include,among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fueland 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 anysuch 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 otherfactors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga’sAnnual Information Form dated March 29, 2017, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does notundertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in thisreport should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.

This presentation is as of January 17, 2018 All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references toTeranga 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 aredenominated in U.S. dollars unless specified otherwise.

3

TGZ Share Price Performance (October 1, 2017 – January 18, 2018)

Capital Structure and Recent Share Price Performance

Source: IR Insight on January 19, 2018

-18%

-13%

-8%

-3%

2%

7%

12%

17%

22%

27%

TGZ-TSXGDXJGold Price

Capital Structure (at December 31, 2017 unless otherwise noted)

Common shares outstanding 107.3M

Stock options outstanding 4.5M

Fully diluted 111.8M

Number of shares owned by insiders 23.8M

Market capitalization (January 18, 2018) C$380M/ US$305M

Cash $88.0M

Top Shareholders % of O/S As at Dec 31, 20171 Tablo Corporation 21.5% 23,128,900 2 Van Eck Associates Corporation 6.8% 7,272,264 3 Heartland Advisors 4.2% 4,500,000 4 Ruffer LLP 3.7% 4,007,243 5 Oppenheimer Funds 3.1% 3,360,828 6 Dimensional Fund Advisors 2.5% 2,668,4257 Franklin Advisers 2.2% 2,382,2008 Fidelity Management & Research 1.6% 1,747,7409 Universal-Investment Gesellschaft 1.6% 1,735,000

10 Colonial First State Global AM 1.6% 1,725,708

+26%

+2% +3%

$5.11

$1.41

$1.02

$1,300

4

Deep Value(C$)

Gold Price per Ounce Assumption

Cash balance as at December 31, 2017

Wahgnion Project NPV5% based on 2P(1)

Sabodala NPV5% based on 2P(2)$3.48TGZ Current Share Price

(closing price Jan 15, 2018)

$7.54NPV*

Per Sharebased on cash & 2P reserves(1)(2)

Excludes potential value from:• Wahgnion infill drill program • Golden Hill

*Refer to Non-IFRS Performance Measures on slide 34Refer to Endnotes (1) and (2) on slide 35

EV/2018E EBITDA

Potential for a Major Rate Reset

5

Teranga’s Share Price vs. Net Present Value* (NPV)(12) per Share

222%

*Refer to Non-IFRS Performance Measures on slide 34Refer to Endnote (12) on slide 35

C$3.48C$5.15

C$7.73

Share Price BMO NPV per Share Revalued Share Price

0.7xCurrent TGZ NPV Trading Multiple(12)

1.5xAverage NPV Multiple

for Medium Producers(12)

50

54

84

91

268

276

338

517

566

Perseus

Asanko

Teranga

Alacer

Golden Star

Semafo

Endeavour

B2Gold

Roxgold

EV/2P Reserves ($/oz)

Data Source: BMO GoldPages published January 15, 2018

2.1

2.2

5.4

5.5

6.4

7.6

8.2

30.0

Teranga

Asanko

Golden Star

Roxgold

B2Gold

Semafo

Endeavour

Alacer

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Pursuing Asset Diversification and Scale

Diversification + Scale

Sabodala Gold Mine

Wahgnion Development

Resource Conversion

Exploration Success

Strategic Acquisitions

Higher Valuation & Multiple

Senegal

Côte d’Ivoire

Burkina Faso

Mali

Guinea

Guinea-Bisseau

The Gambia

GhanaBenin

Niger

Sierra Leone

Liberia

Togo

Sabodala Gold Mine1.4Moz production since IPO in late 2010

7

Wahgnion Development Project (Expect to close financing and commence construction in Q2 2018)

Golden Hill Exploration JV

GourmaExploration JV

Guitry

Dianra

Mahepleu

Tiassale

Sangaredougou

Building The Next Multi-Asset Mid-Tier West African Gold Producer

Teranga has nearly 4.0 million ounces of

gold reserves from its Sabodala Gold Mine

and its WahgnionDevelopment Project(1)(2)

Afema

Refer to Endnotes (1) and (2) on slide 35

Aggressive Exploration Program in 2018• Golden Hill (Burkina Faso)• Guitry (Côte d’Ivoire)• Afema (Côte d’Ivoire)

Development of Second Mine• Project debt financing expected to close in Q2• Plant construction expected to commence in Q2

Production at Largest Gold Mine in Senegal• Achieved record production of 233,267 ounces in 2017• 2018 production guidance range of 210,000 – 225,000 ounces(3)

• Generating free cash flow from Sabodala*

Checking Off the Boxes

Refer to Endnote (3) on slide 35*Refer to Non-IFRS Performance Measures on slide 34

8

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Sabodala Banfora

~$100M annual free cash flow*(11)

Significantly Increasing Production and Improving Free Cash Flow

9*Refer to Non-IFRS Performance Measures on slide 33Refer to Endnotes (3), (4), (5), (7) and (11) on slide 35

Teranga Consolidated Production Profile (koz)(3),(4),(7)

350Koz

~$70M annual free cash flow*(5)

2020 – 2022 Sabodala + Wahgnion

~350Koz annual production

Opportunities to improve reserves, production and free cash flow through resource conversion & discoveries

Production

Construction

Feasibility Study

Concept Study (Initial Resource)

Advanced Exploration

Advanced Exploration 2

Advanced Exploration 3

Robust Exploration Pipeline in Three Mining-Friendly Jurisdictions

10Senegal Côte d’Ivoire Burkina Faso

Sabodala

Niakafiri Main

Golouma W*

Golouma S*

Kerekounda

Maki Medina

Niakafiri SENiakafiri SW

Diadiako

Kobokoto

Kouroundi

Korouloulou

Nogbele

Guitry

Dianra Djinta

Tiassale

Goumbati West/Kobokoto

Golouma North*

Sekoto

Marougou Main

Leocounda

Honey

Mamasato

Jam

Gora

Kinemba

Koutouniokolla

Khayrosita

Bransan East A,B,CMaleko

Fourkoura

Samavogo

Stinger

Ouahiri

Kafina

Samavogo North

Hillside

Bassangoro

Muddi Bagu Sud

Raul

Petite Colline

KassengaraWeah

Korindougou

Fembefasso

Mahepleu

Masato

Sangaredougou

Niakafiri West

Ma

Peksou

Jackhammer Hill

Nahiri

Bongori

FoutouriTambiga Hill

Kou louqwinde

Cinnamon

Diagoun Maragou South

Konatvogo

Afema 1

Afema 2Afema 3

Prudent Approach to Capital Allocation Drives Solid Financial Position

11

$88 MillionEstimated cash balance

as at December 31, 2017

+$90 Million(6)

Estimated cash flow from Sabodala 2018-2019

$150 Million$150M project debt facility

expected to close in Q2 2018

Solid Financial Position

Refer to Endnote (6) on slide 35

Upcoming Catalysts in 2018

12

Golden Hill exploration update

Closing of Wahgnion project financing

Commence Wahgnion mill construction

Update on Wahgnion infill drill program

Golden Hill maiden resource

Côte d'Ivoire project updates from Guitry and Afema

SabodalaSenegal, West Africa

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14

Exploration ProspectsMineral ResourcesMasato Style Bulk Tonnage Gold Trend Golouma Style High-Grade Gold Trend Mining ConcessionExploration PermitsPrevious Mine License

SabodalaMill

Sabodala Mine License & Regional Land Package (Senegal)

2.7 Million Ounces in Proven & Probable Reserves• 4.4 million ounces in measured and indicated resources

(inclusive of proven and probable reserves) at an average grade of 1.59 g/t(9)

Mine License Reserve Development• Focused on resource definition and converting resources

at Niakafiri• Continued delineation of Goumbati West

Regional Land Package• Property-wide bulk leach extractable gold (BLEG)

sampling program completed to identify new exploration targets

Largest Gold Mine in Mining-Friendly Senegal

Refer to Endnote (9) on slide 35

Mali

Niakafiri

GoumbatiWest

(8)

Proven and Probable Reserves(2) (Moz)

Replacing Reserves & Increasing Production and Cash Flow

1.7 1.6 2.8 2.6 2.6 2.7

2011 2012 2013 2014 2015 2017

Updated Sabodala Technical Report(3): Annual Average Production of 176Koz at AISC* of Less Than

$900/oz

Maki Medina

15*Refer to Non-IFRS Performance Measures on slide 34Refer to Endnotes (2) and (3) on slide 35

($40)($20)

$0$20$40$60$80

2018 2019 2020 2021 2022

Cash Flow Before Taxes and Other ($1,250/oz)

June 2017 43-101 Dec 2015 43-101

--

50,000

100,000

150,000

200,000

250,000

2018 2019 2020 2021 2022

Production (oz)

June 2017 43-101 Dec 2015 43-101

Opportunities to Maintain Sabodala’s Annual Production of +200Koz Beyond 2022

Four Significant Opportunities for Continued Growth at Niakafiri1. Restricted areas (sacred sites, cemetery, schools)2. Extending the Niakafiri West trend northwards3. Exploring a potential northwest trend under Sabodala village4. Extending the Niakafiri Main zone at depth

Underground• Current reserves of 346Koz within a resource (MII) base of 1.3Moz • Extend drilling as we complete pit bottoms for higher grade and

thicker zones for improved mining methods (long-hole vs cut & fill)• Current operating scenario is for an owner mine fleet

23

4

1

1

1Niakafiri (Sabodala – Senegal)

16

Wahgnion ProjectBurkina Faso, West Africa

17

Kafina West

RaulHillside

18

Samavogo

Nogbele

FourkouraStinger

Bagu Sud

Korindougou

Ouahiri

Sud

Significant Advantages to Modeling Wahgnion on Sabodala• Similarities between Sabodala design and proposed design at

Wahgnion will help to ensure a smooth build and operation • Conventional open pit mining techniques• Same type of ore recovery as Sabodala• Teranga team has developed an expertise for operating in a

multi-pit, central mill type of operation and is using the operating flexibility this brings to its advantage

Infill Drill Program Expected to Improve Economics• 75,000-metre infill drill program is targeting inferred resources

located near to the current reserve pits • Given demonstrated continuity of mineralization of the inferred

resources, 25%-50% of inferred resources is targeted to be converted to indicated

• Reserves update expected in H1 2018

Raul

Proposed Plant Site

Kondandougoug

Konatvogo

Bazogo

Bassongoro

Samavogo North

MuddhiPetit Colline

Reserve Deposits

Exploration TargetsWahgnion Project: A Strategic Pillar of Teranga’s Growth Plan

Robust LOM Physicals and Cash Flows

Net Cash Flow (11) $M 176

Physicals

• Near surface, lode vein orebodies with mostly visual control that outcrop at surface

• Overall strip ratio averages approximately 7:1

LOM Unit Costs

• Similar to Sabodala and competitive with peers

LOM AISC* and Cash Flows

• All-in sustaining costs* per ounce below $850

• 9-year LOM free cash flow from operations* of $409 million(11)

• Net cash flow is estimated at $176 million(11)

Total LOM

2019 –2024

Average

Ore mined Mt 21 2.7

Waste mined Mt 155 19.0

Total material mined Mt 176 21.7

Ore milled Mt 21 2.3

Mill head grade g/t 1.69 1.88

Gold produced(7) Koz 1,075 131

Mining $/t mined 2.19 2.04

Processing $/t milled 11.15 11.10

General & administrative $/t milled 4.31 4.57

Sustaining capital $M 105 15

AISC* $/oz 843 807

Income taxes, W/C and other $M 29 3

Free cash flow from operations* $M 409 55

Pre-production capital(7) $M 232 -

Sum of individual amounts may not equal due to rounding.*Refer to Non-IFRS measures on slide 34Refer to Endnotes (7) and (11) on slide 35

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Wahgnion Project: A Strategic Pillar of Teranga’s Growth Plan

20

Infill Drill Program Scheduled for November Completion

• 75,000-metre infill drill program is targeting inferred resources located near to the current reserve pits

• Objective is to increase drill hole density within the existing inferred resources

Aiming for a Conversion Rate of 25%-50% of Inferred

• Given demonstrated continuity of mineralization of the inferred resources, 25%-50% of inferred resources is targeted to be converted to indicated

Near-Term Upside Expected to Improve Economics

• Reserves update expected in H1 2018

Target Area Along Strike

Target Area at Depth

$1,450 Resource Pit Limit

$1,200Reserves Pit Limit

Golden HillBurkina Faso

21

22

Uniquely Positioned at Golden Hill

Situated in the Heart of the Houndé Belt in Burkina Faso

• 468 km2 situated ~200km NE of Wahgnion gold project

• One of the most prospective gold belts in the world today

• On the Houndé belt in close proximity and along strike to other large deposits

Exploring Drill-Ready Targets

• Previous exploration work defined high quality prospects

Joint Venture (51%, earning 80%)

• Joint venture partner is Boss Resources (ASX:BOE)

• Teranga has an earn-in agreement with Boss pursuant to which Teranga, as the operator, can earn an 80% interest in the JV upon delivery of a feasibility study and the payment of AUD2.5 million

Sources¹ Semafo Corporate Presentation (Mar 2017)² Roxgold Corporate Presentation (Feb 2017)³ Endeavour Corporate Presentation (Feb 2017)⁴ Acacia Preliminary Results (Feb 2017)⁵ Savary Corporate Presentation (Mar 2017)

M&I Resources are inclusive of P&P Reserves

Siou PitM&I: 0.89 Moz ¹

YaramokoM&I: 0.81 Moz ²

HoundéM&I: 2.55 Moz ³

ManaM&I: 3.63 Moz ¹

Teranga’s JVGolden Hill Project

Karankasso JVInf: 0.67 Moz ⁵

Sarama Permits

South Houndé JVInf: 2.10 Moz ⁴

Acacia JVs ⁴

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Golden Hill: High-Grade, Big PotentialGolden Hill (Houndé Belt – Burkina Faso)

First Four Prospects within 5 km Radius of Central Point

• In just one year, Golden Hill has produced a series of high-grade, near-surface drill results at the first four prospects: Ma, Nahiri, Peksou, and Jackhammer Hill

• Core drilling results at Jackhammer Hill included 110 grams per tonne of gold over 14 metres

• The close proximity of these targets and prospects lends itself to a central mill/multi-deposit operation similar to Sabodala and Wahgnion

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

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Ma Prospect – Drill Plan Ma Prospect • 2.3 kilometre long mineralized system • Comprises multiple mineralized zones within a broad

regional structural complex• Ma prospect remains open to the east and the west and

to depth

Recent Drilling Highlights at Ma• High-grade results confirm continuity of grade and width

from surface to depths now approaching 125 metres• 15 m @ 4.22 g/t Au including 7 m @ 7.89 g/t Au

including 2 m @ 17.6 g/t Au (GHDD-067)• 16 m @ 3.20 g/t Au including 1 m @ 15.7 g/t Au,

and 3 m @ 6.14 g/t Au (GHDD-078)• 6 m @ 5.79 g/t Au and 17 m @ 3.45 g/t Au including

6 m @ 6.32 g/t Au (GHDD-080)

Ma Prospect: The Most Advanced of Four Prospects at Golden Hill

2525

Ma Prospect – Representative Drill Section Ma Prospect – Representative Drill Section

Rapidly Progressing Towards an Initial Resource for Golden Hill in 2018

2626

Ma Prospect – Representative Drill Section

Multiple Mineralized Zones Within a Broad Regional Structural Complex at Ma Prospect

Ma Prospect – Representative Drill Section

Golden Hill: Hidden Potential at Jackhammer Hill Prospect

Hidden Potential at Never Previously Drilled Target

• 1,000 metre long auger, soil and rock chip anomaly

• Currently drilling with core drill on a minimum 1,500 metre program

Jackhammer Hill Prospect Highlights

• 15 m @ 5.72 g/t Au including 4 m @ 16.37 g/t Au including 1 m @ 42.1 g/t Au and 9 m @ 4.13 g/t Au including 3 m @ 10.63 g/t Au including 1 m @ 25.3 g/t Au (GHDD-104)

• 14 m @ 110.6 g/t Au including 5 m @ 306.7 g/t Au including 1 m @ 1,499 g/t Au (GHDD-111) (uncut)

• 10 m @ 3.44 g/t Au including 1 m @ 19.0 g/t Au (GHDD-103)

Golden Hill: Jackhammer Hill Prospect

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Early-Stage Exploration Success at Peksou and Nahiri Targets

Peksou Prospect – GHDD003 Cross-Section Nahiri Prospect – Drill Plan

Current minimum strike length of 600 metres with initial core drill results of: 6 m @ 20.33 g/t Au; 8 m @ 5.97 g/t Au and 36 m @ 2.32 g/t Au. 2,500-metre planned drill program in Q4 2017

Current minimum strike length of 350 metres with initial core drill results of: 8 m @ 2.09 g/t Au; 10 m @ 1.89 g/t Au and 34 m @ 6.08 g/t Au. 2,000-metre planned drill program in Q4 2017

28

Côte d’Ivoire ExplorationGuitry & Afema

29

Guitry: Significant Anomaly (Côte d’Ivoire)

Five Greenfield Exploration Tenements Totaling +1800 km2

• Positive preliminary results at the Guitry prospect have made it a priority

• Hand-pitting program centered on the strongest portions of the previously discovered 3 by 6 kilometre gold-in-soil geochemical anomaly

• Initial drilling evaluation being undertaken

Endeavour

Endeavour

Perseus

Randgold

Côte d’Ivoire

Guitry

Tiassale

Mahepleu

Sangaredougou

Operating Gold Mine/ Development Project

Newcrest

Dianra

30

Afema

Côte d’Ivoire

Ahafo 17 Moz Newmont

3 Taurus Exploration

Permits

Taurus Mining Permit

Bibiani 7 Moz Resolute Mining

Chirano 5 Moz Kinross

Edikan 6.6 Moz Perseus

Bogoso/Prestea18 Moz Gold Star

Afema 2.0 MozJonction & AniuriTaurus Gold

Konogo 1.4 MozSignature Metals

AkyemNewmont

Essase5.19 Moz

Obotan 5.5 Moz Asanko

Obuasi 41 Moz Anglo Gold Ashanti

Kubi 0.9 MozAsaute Gold Corporation

Damang 7.1 Moz Goldfields

Tarkwa 24 Moz

Iduapriem 8.2 MozAngloGold Ashanti

Kumasi

Cape Coast

Sefwi-Bibiani Gold Belt

Asankrangwa Gold Belt

Ashanti Gold Belt

Winneba-KibiGold Belt

Ghana

31

Afema: Located in Prospective Southeast Region of Côte d’Ivoire

1,400 km2 Land Package• Afema mine license• Three exploration permits (Ayame,

Mafere, Aboisso)

Well Located Geologically• Along trend and within the same

gold belts of a number of high profile producing mines in Ghana

• Both Sefwi-Bibiani Golt Belt and Asankrangwa Gold Belt run through Afema land package

Appendix

Qualified Persons Statement

Teranga's exploration programs in Burkina Faso are managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning ofNational Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Mann has sufficient experience which is relevant to the style of mineralization and type ofdeposit under consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI 43-101. The technical information contained in this news releaserelating 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 thesampling, analytical and test data underlying the information. The RC and diamond core samples are assayed at the BIGGS Laboratory in Ouagadougou, Burkina Faso. Mr. Mann hasconsented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein, and approved such disclosure.

Quality Assurance and Quality Control

For details on the quality assurance program and quality control measures applied during the execution of the exploration work and results reported on herein please refer to Chapter 11– Sample Preparation, Analyses and Security of the Technical Report on the Wahgnion Gold Project, Burkina Faso West Africa dated October 20, 2017 available on the Company’swebsite at http://www.terangagold.com and SEDAR at www.sedar.com.

33

34

Non-IFRS Performance Measures

The Company has included non-IFRS measures in this document, including “total cash cost per ounce of gold sold”, “all-in sustaining costs per ounce”, “free cash flow from operations” and “EBITDA”. TheCompany believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company.The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Thesemeasures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

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 NorthAmerican 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 isvoluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council (“WGC”) definition of all-in sustaining costs seeks to extendthe 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 andexpensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interestcosts, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the calculation ofall-in sustaining costs 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. ForSabodala and Wahgnion, life of mine total cash costs and all-in sustaining costs figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporateoverheads. Total cash costs and all-in sustaining costs figures for Sabodala further excludes amortized advanced royalty costs. Other companies may calculate this measure differently. Consolidated total cashcosts and all-in sustaining cost figures add corporate overhead costs. Other companies may calculate this measure differently.

The Company calculates free cash flow from operations as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of its ability togenerate cash for growth initiatives. “Earnings before interest, taxes, depreciation and amortization” (“EBITDA”) is a non-IFRS financial measure, which excludes income tax, finance costs (before unwinding ofdiscounts), interest income, depreciation and amortization, and non-cash impairment charges from net earnings. EBITDA is intended to provide additional information to investors and analysts and do not haveany 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 avaluable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures.

Net asset value (“NAV”) per share and net present value (“NPV”) per share are non-IFRS financial measures. NAV per share is equal to NPV per share and is calculated using the NPV of the life of mine(“LOM”) cash flows based on the Wahgnion and Sabodala 43-101 technical reports. The NPV calculation assumes a long-term gold price of $1,300 per ounce, a 5% discount rate, a 0.79 CAD/USD exchangerate, a 1.10 Euro/USD exchange rate, and current cash on hand. It includes interest, income taxes, and changes in working capital and excludes corporate administration, exploration expenditures, minorityinterest payments and debt repayments. The Wahgnion and Sabodala NPV are based on reserves only.

For more information regarding these measures, please refer to the Company’s management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.

Endnotes

35

1. Refers to proven and probable reserves of 1.2Moz for the Wahgnion project as per reserve estimate as of September 7, 2017 included in the Wahgnion technical report dated October 20, 2017 available on the Company’s website at www.terangagold.com and SEDAR www.sedar.com.

2. Refers to proven and probable reserves of 2.7Moz for the Sabodala project as per reserve estimate as of June 30, 2017 included in the Sabodala technical report dated August 30, 2017 available onthe Company’s website at www.terangagold.com and SEDAR www.sedar.com.

3. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as at June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources andrelated 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 atwww.sedar.com.

4. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at September 7, 2017. For more information regarding the Wahgnion’s Mineral Reserves andResources and related notes, please refer to the NI 43-101 compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company’s website at www.terangagold.com and onSEDAR at www.sedar.com.

5. LOM assumptions include: Gold Price $1,250 per ounceHeavy Fuel Oil (HFO): Wahgnion - $0.59 per litre

Sabodala - $0.46 per litreLight Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period)

Sabodala - $0.81 per litreEuro to USD Exchange Rate: $1.10

6. This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project,Senegal, West Africa, dated August 30, 2017 (the “Sabodala Technical Report”). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs.

7. See the NI 43-101 compliant technical report for the Wahgnion Project. This LOM production plan assumes that the Wahgnion Project plant construction will commence in Q1 2018. If the Wahgnion plantconstruction commences in Q2 2018 instead, the LOM production plan is expected to shift by several months.

8. Other considerations (uses) is an estimate of potential other uses of the Company’s cash during the period, including, but not limited to, discretionary exploration expenditures, financing costs and any cost overrunor minimum cash requirements that might be contained in any completed debt financing agreement. Actual amounts may total more or less than the aggregate amount specified.

9. Teranga’s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI43-101 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.

10. Teranga’s Wahgnion Mineral Reserves and Mineral Resources estimates as at September 7, 2017. For more information regarding Wahgnion’s Mineral Reserves and Resources and related notes, please refer tothe NI 43-101 compliant technical report for the Wahgnion Project dated October 20, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.

11. Free cash flow excludes Wahgnion financing and corporate-wide resource development and exploration expenditures. Please see table on slide 7 of the Company’s Investor & Analyst Workshop presentationdated September 14, 2017, which was filed on www.sedar.com.

12. Net Present Value (“NPV”) per share is a Non-IFRS financial measure. NPV per share, average NPV multiple of medium producers, and Teranga’s share price is as per BMO GoldPages published January 15,2018. According to BMO GoldPages, NPV per share is calculated using the net present value of the life of mine cash flows based on the NI 43-101 plan, less cash flow of corporate costs, less net debt per share,using the model at SPOT commodity prices and exchange rates. The “Revalued Share Price” is calculated using the NPV per share at SPOT times the NPV multiples as listed. The BMO NPV calculation assumesa US$1,229 SPOT gold price per ounce, 5% discount, 0.79 USD/CAD exchange rate..

TSX:TGZ / OTCQX:TGCDF

Trish MoranHead of Investor Relations77 King Street West, Suite 2110 Toronto, ON M5K 2A1T: +1.416.607.4507E: investor@terangagold.comW: terangagold.com