Teranga Strengthens Balance Sheet

TORONTO, ONTARIO -- (Marketwire) -- 07/03/12 -- Teranga Gold Corporation ("Teranga") (TSX: AGZ)(ASX: TGZ) today announced that it has entered into a US$60 million 2-Year Loan Facility with Macquarie Bank Limited by way of an amendment to its existing Facility Agreement. Teranga intends to use the proceeds for general working capital purposes and to increase 2012 cash flow. In order to increase cash flow, part of the Facility will be used to buy back certain "out of the money" gold forward sales contracts which will allow the Company to sell more production in 2012 at spot gold prices. This Facility also provides the Company with the flexibility to ensure that the remaining "out of the money" gold forward contracts, which at June 30, 2012, totaled 122,395 ounces and is expected to total 66,000 ounces at year end, are fully extinguished, on schedule, by the third quarter 2013. The Loan Facility bears interest of LIBOR plus a margin of 10 percent and shall be repaid on or before June 30, 2014.

"As the operations are running smoothly, we are very excited about the potential we see to grow this Company while at the same time minimizing dilution to our shareholders. This Facility strengthens our balance sheet and allows us to expedite our vision of growing annual gold production towards our goal of 400,000 to 500,000 ounces," said Alan R. Hill, Chairman and CEO.

This amended Facility strengthens the Company's balance sheet and will allow the Company to accelerate reserve definition drilling on the Mine License and purchase additional mobile equipment to increase the mining and production rate. In addition, the Facility could also be used to increase the Regional Exploration budget should a discovery be made.

The debt obligation under the existing Facility Agreement (original Project Financing) entered into in 2008 was fully repaid in 2010, however the Facility Agreement remains in place as a portion of the gold forward sales contracts, which were a precondition to the original Project Financing, remain outstanding. This Agreement also amends certain other provisions of the existing Facility Agreement providing Teranga greater flexibility in running its business, reflecting the strong operating performance of the Sabodala Gold Mine over the past three years. The Company reiterates annual production guidance of 210,000 - 225,000 ounces of gold at a cash cost of $600 - $650 per ounce.

About TERANGA

Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.

The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.

Forward-Looking Statements

This news release 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's business 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 all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the expected use of proceeds of the offering and the expected closing date of the offering. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions; and other risks detailed from time to time in Teranga's filings with Canadian provincial securities regulators. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Contacts:

Teranga Gold Corporation

Kathy Sipos

Vice-President, Investor & Stakeholder Relations

+1 416-594-0000
ksipos@terangagold.com
www.terangagold.com