INVESTOR PRESENTATION MARCH 2014 - …

1 1 INVESTOR PRESENTATIONMARCH 20142 FORWARD LOOKING STATEMENTSThis PRESENTATION contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ( forward-looking statements ). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga sbusiness or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan and consolidation of the SabodalaGold Project and OJVG GoloumaGold Project, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, targeted date for a NI 43-101 compliant technical report, amendment to the OJVG mining license, the approval of the Gora ESIA and permitting and the completion of construction related thereto.

2 Such statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant. These assumptions include,among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions and courses of action. Terangacautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others.

3 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, as well as other risks and uncertainties which are more fully described in the Company s Annual Information Form dated MARCH 27, 2013, and in other company filings with securities and regulatory authorities which are available at Terangadoes not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

4 Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Terangasecurities. This PRESENTATION is dated as of MARCH 25, 2014. All references to the Company include its subsidiaries unless the context requires otherwise. This PRESENTATION contains references to Terangausing 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 US dollars unless specified otherwise3 TERANGA GOLD Ticker symbols/share price:TSX:TGZ / C$ :TGZ / A$ Domicile:Canada Basic shares outstanding:317M Options outstanding:24M1 Market capitalization:$267M2 Cash & equivalents:$42M4 Project finance outstanding:$30M3 Mining fleet loan facility:$17M4 CAPITALIZATION SUMMARYOPERATIONSNote: *all amounts in US$ unless specified otherwise, average strike of C$ , including at C$3; at 3/25/14.

5 At 1/28/14 as per ASX report, reduced from $60M, 4at 12/31/13 4 INVESTMENT SUMMARY Excellent performance in 2013-Mill expansion, elimination of out-of-the-money hedges, agreement with Senegalese Government-Transformative acquisition of OJVG now complete, more than doubling reserves and resources New mine plan forecasts average production of about 250koz per year in lowest (best) quartile of all-in sustaining costs (AISC) Corporate strategy focused on maximizing free cash flow-Operations expected to generate significant free cash flow-Disciplined capital allocation strategy Potential to add profitable ounces to production profile-Heap-leaching of lower grade oxide ore-Near-plant exploration-Highly prospective regional exploration program on 70km gold belt Consistently meeting operational targets Senegal is a politically stable jurisdiction with a competitive mining fiscal regime52013.

6 A YEAR OF ACHIEVEMENTSCORPORATEOPERATING & FINANCIAL Optimized mill to design capacity More material moved and processed at lower unit costs Achieved production and cost guidance for the year-Produced 207,204 oz-vs guidance of 190,000-210,000 oz-Cash costs of $641/oz-vs guidance of $650-700/oz-All-in sustaining costs (AISC) of $1,033/oz-vs guidance of $1,000-1,100/oz High conversion of EBITDA to free cash flow Year end cash balance: $ Eliminated our inherited out-of-the-money hedge contracts Established a long-term fiscal and investment agreement with the Senegalese government Acquisition of OrominJoint Venture Group (OJVG) Raised $135M from sale of royalty stream to Franco-Nevada to acquire part of the OJVG (Bendon) and repay half of loan facility6 TRANSFORMATIVE ACQUISITION OF OJVG NOW COMPLETEN otes: See appendix for details of gold stream agreement; Plus contingent consideration based on increases in OJVG reserves and higher gold pricesSource: Sabodala Standalone Mine Plan, Oct.

7 2013, Base Case SabodalaCombined Life of Mine Plan (NI 43-101 Technical Report, MARCH 13, 2014) Acquired Oromin Joint Venture Group (OJVG) in series of transactions in Q3, Q4 2013-Acquired Oromin (owner of of OJVG) for 71M shares (22% of current shares outstanding)-Acquired Bendon ( ) via sale of gold stream to Franco-Nevada1for 6% gross stream (equivalent to NSR royalty) -Acquired Badr (13% carried) for $ funded from treasury2 Increased open pit reserves by 120% to Mozof gold Extends mine life-More than doubles reserves and resources-Increases production life from 8 to 16 years Enables production to grow to ~250koz from ~200koz -No significant incremental capex-Lower unit cash costs-Greater cash flow generation Allows for optimal sequencing of deposits based on grade, ore hardness, distance to mill and capital requirements-Minimizewaste stripping at Sabodala, increasing 2014 cash flow Consolidates the region and increases growth potential from enlarged acreage position-Mine license increases from 33km2to 246km2 Before OJVG acquisitionAfter OJVG acquisitionChangeReserves(Moz) Grade(g/t) Resources(Moz)

8 License size (km2)33246645%Share count(M)24631722%Resources(oz/share) LEADS TO IMMEDIATE IMPROVEMENT IN CASH FLOW GENERATIONN otes: See appendix for details of gold stream agreement; Plus contingent consideration based on increases in OJVG reserves and higher gold pricesSource: Base Case Sabodala Combined Life of Mine Plan(NI 43-101 Technical Report, MARCH 13, 2014)8 TERANGA IS IN THE FIRST QUARTILE OF 2014 COST CURVEN otes: includes companies with total 2014 production of (64% of total global mine production); bar heights of highestcost producers truncated to fit on graphSource: BMO, 13/1/149 CORPORATE STRATEGY Maximize free cash flow generation-Produce ~250koz/year-Lowest (best) quartile AISC costs-High conversion of EBITDA into cash flow (low sustaining capex) Leverage existing processing infrastructure-Only gold production facility in Senegal-Aim to grow reserves at low cost and without shareholder dilution-Potential for future expansion of process capacity Optimize mill Heap leach potential Mill expansion (if merited)

9 Only Senegal Only gold Only commit capital to projects which have-IRR > hurdle rate-Quick paybackVALUE CREATIONDISCIPLINED ALLOCATION OF CAPITALRETURN OF CAPITAL Priority is to strengthen balance sheet-Extinguish debt facility-Build up sufficient cash to execute on business plan Once balance sheet is strengthened, Board will consider how to return excess cash flows to shareholders via dividends, special dividends or share buybacks (depending on share price)10 POTENTIAL TO ADD PROFITABLE OUNCES Integrate OJVG and Sabodala operations Increase free cash flow through higher production and lower material movement Increase reserves through conversion of M&I and Inferred Evaluate heap leach processing option (permit and build if economics exceed hurdle rate) Optimize mill throughput Optimize mine planning and gradeSHORT AND MEDIUM TERM (2014-16)LONG TERM (2015-) Systematic identification and evaluation of targets on-Expanded Sabodala mine license (246km2)-Regional land package (1,055km2) reserve leach reserve deposit deposit discoveryMaximize free-cash flow112014 EXPLORATION PROGRAM $10M Budget:-Mapping:50km-Trenching:6,500m-RA B drilling:5,000m-RC drilling.

10 3,000m-Diamond drilling:22,000m Budget allocation:-50% Mine License-50% Regional Exploration Land Package Oromin spersonnel fully integrated into Teranga s exploration team-Provides continuity of knowledge specific to OJVG deposits Acquisition of adjoining OJVG increases reserves to Moz->10 years of Sabodala mill production-Adds prospective land package1. Millable reserve growth(Masato, Goloumas)2. Heap leachable reserve growth(Niakafiri structure, Maki Madina)12 EXPLORATION: EARLY DAYS IN NEW GOLD CAMP Neighbouring Shear Zone on shared Kedougou-Kenieba Greenstone Belt is host to 7 large deposits 1,055km2land package covers > 70km of strike length on an offsetting Regional Scale Structure Systematic exploration has identified > 50 exploration targets to date3.