Teranga Gold Exceeds 2019 Production Guidance and Achieves Low End of Per Ounce Cost Guidance Ranges

TORONTO, Feb. 21, 2020 - Teranga Gold Corp. ("Teranga" or the "Company") (TSX:TGZ; OTCQX:TGCDF) today reported its operating, financial and development results for the three and twelve months ended December 31, 2019.

“2019 was a year of significant achievement for Teranga and, as a result, we are a much stronger company and offer a significantly improved value proposition to our shareholders than just 12 months ago. Our second gold mine – Wahgnion – is now in commercial production, and we are preparing to complete our transformational acquisition of Massawa, a high-grade, top tier asset that neighbours our Sabodala mine in Senegal,” said Richard Young, President and CEO. “With the advancements made in 2019, the course is set for an exciting year ahead as we start repositioning Teranga as a low cost, mid-tier gold producer.”

Paul Chawrun, Chief Operating Officer, noted, “Operationally, Sabodala has never been stronger and is well-positioned to start processing feed from the Massawa deposits in the second half of the year. Wahgnion is off to a very good start, and plant throughput is above nameplate capacity. Reconciliation to reserves is largely in-line, save for some artisanal mining near surface in both active pits. With our two gold producing assets running smoothly, our attention in 2020 is turning to the exploration of the properties in our growth pipeline.”

FINANCIAL & OPERATING HIGHLIGHTS
Three and twelve months ended December 31, 2019 compared to three and twelve months ended December 31, 2018

Q4 2019 FINANCIAL & OPERATING HIGHLIGHTS
Three months ended December 31, 2019 compared to three months ended December 31, 2018

Consolidated Financial Performance

• Revenues, gross profit, earnings, cash flow, EBITDA⁽¹⁾ and per ounce costs were all negatively impacted for the fourth quarter and full year by the large amount of unsold gold at year-end due to an earlier than normal cut-off for shipments. In total, just over 20,000 ounces of gold bullion inventory remain unsold at year-end. The value of the gold bullion inventory totalled $31.2 million at the year-end spot gold price of $1,515 per ounce.
  
  
• Consolidated net loss attributable to shareholders was $13.4 million ($0.12 loss per share) for the fourth quarter 2019 compared to $10.6 million ($0.10 loss per share) in the prior year period. Higher gross profit and lower net losses on derivative financial instruments was more than offset by non-cash losses on changes in fair values of share warrant liabilities and gold offtake payment liability, higher finance costs, share-based compensation expenses and net foreign exchange losses totalling $14.1 million.
  
  
• Adjusted net loss attributable to shareholders⁽¹⁾ was $6.3 million ($0.06 loss per share) for the fourth quarter 2019 compared to adjusted net profit attributable to shareholders⁽¹⁾ of $1.2 million ($0.01 earnings per share) in the comparative period. Higher gross profit was more than offset by higher income tax expense (excluding the impact of foreign exchange on deferred taxes), finance costs, share-based compensation expenses, net foreign exchange losses and business and other taxes.
  
  
• EBITDA⁽¹⁾ increased to $24.2 million from $14.6 million mainly due to higher revenues of $30.2 million, partially offset by higher mine operation expenses of $14.1 million, net foreign exchange losses of $2.5 million and share-based compensation expense of $2.9 million.
  
  
• Adjusted EBITDA⁽¹⁾ increased to $32.5 million from $21.8 million mainly due to higher gross profit as a result of higher gold ounces sold and higher average realized prices⁽¹⁾, partially offset by higher share-based compensation expense.

• Cash flow related to operating activities decreased 49% year-over-year to $21.5 million due to the timing of gold shipments and an increase of supplies inventory at Wahgnion of $3.4 million. Using a period-end gold spot price of $1,515 per ounce, the 20,000 ounces of unsold bullion inventory would have increased cash flow by $31.2 million.
  
  
• Cash and cash equivalents totalled $29.7 million, an increase of $1.8 million from the third quarter 2019 balance of $27.9 million. The marginal increase was mainly due to net cash flows of $13.0 million from the Sabodala mine, drawdowns of $11.7 million from the secured development finance facility with Taurus Funds Management Pty Ltd. and net drawdowns of $0.6 million from the equipment finance facility with Caterpillar Financial Services Corporation which was largely offset by $27.2 million in cash capital expenditures related to the construction of Wahgnion.

• Consolidated cost of sales per ounce was $1,122, an increase of 17% compared to the prior year period mainly due to higher mine production costs and depreciation at Wahgnion and lower capitalized deferred stripping costs, partially offset by net inventory movements and higher gold ounces sold between periods. Full year consolidated cost of sales per ounce was $1,029, below the low-end of the Company's 2019 guidance range.
  
  
• Consolidated total cash costs per ounce⁽¹⁾ were $779, an increase of 12% compared to the prior year period mainly due to higher mine production costs with Wahgnion and lower capitalized deferred stripping costs, partially offset by net inventory movements and higher gold ounces sold between periods, despite 20,000 ounces of gold bullion inventory unsold at year-end.
  
  
• Consolidated all-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) per ounce⁽¹⁾ were $1,080, an increase of 15% as a result of higher consolidated total cash costs⁽¹⁾, higher share-based compensation expense and higher capital expenditures, partially offset by higher gold ounces sold, despite 20,000 ounces of gold bullion inventory unsold at year-end. Full year consolidated all-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) per ounce⁽¹⁾ were $917, near the low-end of the Company's 2019 guidance range, despite the unsold gold bullion inventory at year-end.

Sabodala Gold Operations (Senegal)

• Fourth quarter and full year gold production at Sabodala were 54,539 ounces and 241,276 ounces, respectively, surpassing Sabodala's 2019 production guidance of 215,000 to 230,000 ounces.
  
  
• Total cost of sales per ounce sold increased by 14% to $1,099 per ounce in the fourth quarter 2019 compared with the fourth quarter 2018 primarily due to lower gold ounces sold, higher depreciation and amortization expense and lower capitalized deferred stripping costs between periods, partially offset by net inventory movements and lower mine production costs in the fourth quarter 2019. In total, 9,000 ounces of gold bullion inventory was unsold at year-end due to an earlier than normal cut-off for shipping.
  
  
• All-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) per ounce⁽¹⁾ were $940 in the fourth quarter 2019, an increase of 12% compared to the prior year period mainly as a result of lower gold ounces sold, partially offset by lower cash costs⁽¹⁾ and lower capital expenditures between periods.
  
  
• Sabodala generated net cash flow of $13.0 million, increasing the full year net cash flow to $81.5 million, an increase of 80% over the prior year period.

Wahgnion Gold Operations (Burkina Faso)

• Wahgnion achieved commercial production effective November 1, 2019. Fourth quarter gold production at Wahgnion was 36,872 ounces, including 8,344 ounces of pre-commercial gold production.
  
  
• Wahgnion surpassed the high end of its full year production guidance of 30,000 to 40,000 ounces with a total of 47,492 ounces of gold produced, including 18,964 ounces of pre-commercial gold production.
  
  
• Total cost of sales per ounce sold was $1,170 per ounce, below the lower end of 2019 guidance.
  
  
• Total cash cost per ounce⁽¹⁾ sold for the quarter was $861 per ounce.
  
  
• All-in sustaining costs (excluding non-cash inventory movements) per ounce sold⁽¹⁾ of $938 was above full year guidance. Had the large amount of unsold gold bullion inventory been sold before year-end, all-in sustaining costs (excluding non-cash inventory movements) per ounce⁽¹⁾ would have been $780 per ounce, which was within the guidance range. In total, 11,000 ounces or nearly 40% of commercial production were unsold at year-end. Being the new gold producer in Burkina Faso, the last shipment date we could secure was in mid-December, which meant that a large portion of December’s production was not shipped and sold at year-end.

GROWTH HIGHLIGHTS

• On December 9, 2019, the Company entered into a definitive agreement pursuant to which it will acquire a 90% interest in Massawa from a wholly-owned subsidiary of Barrick Gold Corp. and its joint venture partner, Compagnie Sénégalaise de Transports Transatlantiques Afrique de l’Ouest SA, with the Government of Senegal holding the remaining 10% interest in Massawa (the “Massawa Acquisition”). Massawa is one of the highest-grade undeveloped open-pit gold projects in Africa. It is located within trucking distance of Teranga’s flagship Sabodala mine in Senegal, creating the opportunity for significant capital and operating synergies. Upon completion of the Massawa Acquisition, the Sabodala-Massawa Complex is expected to transform Sabodala into a top tier asset.
  
  
• On February 13, 2020, the Company obtained certain key approvals and acknowledgement from the Government of Senegal required in order to proceed to close the Massawa Acquisition. The approvals included a formal consent to Teranga’s plans to integrate Massawa into Sabodala, as well as a formal intent of the Government of Senegal to waive its equity participation right to elect, on its behalf or on behalf of the private sector, to purchase up to an additional 25% equity interest in Massawa at market value. With these approvals in place, the Company currently anticipates issuance of the Massawa exploitation license and residual exploration license imminently.
  
  
• At Golden Hill, the Company’s most advanced exploration project located in Burkina Faso, a 27,000-metre drill program was initiated during the second half of 2019 to increase the resource base. Initial environmental and social studies have started and engineering has commenced to support the application for a mine license in 2020. During the quarter, the Company drew down $2.0 million from the Golden Hill Tranche of the Taurus Facility to fund the exploration program. In total, $4.5 million has been drawn from the Golden Hill Tranche of the Taurus Facility to fund the exploration program.
  
  
• On January 22, 2020, the Company announced results from its drilling program at Golden Hill which has returned high-grade gold intercepts from near surface to depth at several existing targets and encouraging gold grades in numerous step-out holes. The campaign has also uncovered a new discovery at Golden Hill - the Ma Jonction prospect, located between Ma Main and Ma North.

REVIEW OF OPERATIONS

Sabodala Gold Operations

Mining

Total tonnes mined were 15% lower in the fourth quarter 2019 compared with the prior year period due to prioritization of higher grade, lower stripping mining areas of Golouma West and Kerekounda.

Ore tonnes mined were 114% higher in fourth quarter 2019 compared with fourth quarter 2018 due primarily to the commencement of mining near surface ore at Maki Medina and the prioritization of higher grade, lower stripping mining areas within Golouma West. Ore grade mined was 19% lower in fourth quarter 2019 compared with the prior year period due primarily to the completion of the relatively high grade Kerekounda and Koulouqwinde pits in the fourth and first quarters of 2019, respectively.

Reconciliation to reserves remained positive for fourth quarter 2019, with total ounces mined exceeding reserves model estimations due to ongoing dilution control, ore recovery processes and conservative resource modelling.

Processing

Ore tonnes milled in the fourth quarter 2019 were slightly lower compared with the prior year period due to a higher proportion of harder fresh ore.

Head grade decreased by 5% in the fourth quarter 2019 due primarily to mill feed from the high grade Gora deposit in the prior year period.

Gold production decreased by 8% to 54,539 ounces in the fourth quarter 2019 compared with the prior year period due to lower average head grades, recovery rates and ore tonnes milled between periods.

Wahgnion Gold Operations

Mining

In the fourth quarter 2019, mining capacity consisted of an owner-operated fleet, supplemented by two mining contractor fleets. Mining activities were focused primarily on the Nogbele pit and the lower benches of the Nangolo pit. A total of 6.1 million tonnes were mined during the quarter at a strip ratio of 5.8. Overall tonnes mined was in line with the plan. At the end of the fourth quarter, one of the remaining two contractor mining fleet was demobilized and the process of transitioning to a fully owner-operated fleet is expected to continue into 2020.

Reconciliation to reserves is showing positive results for the Nangolo pit at depth with the overall reconciliation slightly positive. While still very early, the overall reconciliation in the Nogbele pit is slightly negative to reserves to 2019 year-end, however, continues to improve as mining activities progress at depth below artisanal workings in the upper oxide zones, with an overall positive reconciliation for January 2020.

Processing

Ramp-up of the processing plant continued during the fourth quarter 2019, with production stabilizing at above nameplate capacity. On November 1, 2019, the processing plant achieved the design criteria and commercial production was declared. The crusher feed blend comprised 74% oxide ore and 26% fresh hard rock. Modifications made to the crushing circuit combined with a drier ore feed, due to the end of the rainy season, increased crusher throughput. Mill throughput for fourth quarter 2019 was above plan at 0.7 million tonnes due to earlier than planned commissioning of the processing plant, higher portion of oxide ore processed and an increase from the nameplate design. Gold production for the quarter was 36,872 ounces at an average head grade of 1.73 g/t.

2020 OUTLOOK (excluding Massawa)

The Company’s 2020 guidance does not include production from Massawa’s high-grade Sofia deposit. Following the anticipated closing of the Massawa Acquisition, guidance for 2020 production is expected to increase with the commencement of mining and processing of high-grade ore from the first of the Massawa deposits – Sofia – in H2 2020.

Teranga’s 2020 production and cost guidance will be updated in the third quarter to incorporate mining and processing of Sofia ore.

A comprehensive table of Teranga’s full-year guidance for 2020 is expected to be available shortly in the management’s discussion & analysis for the three and twelve months ended December 31, 2019. A summary of 2020 guidance is as follows:

2020 GOALS & MILESTONES

• Sabodala-Massawa Complex
  • Expect to produce 215,000 ounces of gold before the addition of ore from Massawa’s Sofia deposit, expected in H2 2020
  • Close the Massawa Acquisition, expected in Q1 2020
  • Prepare for mining to commence at the high-grade Sofia deposit
  • Release pre-feasibility study for the combined complex within six months after the transaction close
  • Commence exploring for additional refractory and oxide deposits
  
  
• Wahgnion Gold Mine
  • Expect to produce 130,000-140,000 ounces of gold in first full year of production
  • Relaunch resource drilling program
  
  
• Golden Hill Exploration Project
  • Exploration program with a $10 million budget to expand the resource base
  • Complete engineering, environmental, and social work to support the preliminary economic assessment required for a mine license application in Q3 2020
  
  
• Exploration Projects in Côte d’Ivoire
  • Increase the exploration budget to $6 to $8 million for the Afema and Miminvest exploration properties.

CONSOLIDATED FINANCIAL STATEMENTS

Teranga’s audited consolidated financial statements and management’s discussion & analysis for the three and twelve months ended December 31, 2019 are expected to be available shortly on the Company’s website at www.terangagold.com, on SEDAR at www.sedar.com, and on the OTC Markets’ website at www.otcmarkets.com.

CONFERENCE CALL & WEBCAST

Teranga will host a conference call and audio webcast today at 8:30 a.m. ET, during which management will review the highlights for the three and twelve months ended December 31, 2019. Those wishing to listen can access the live conference call and webcast as follows:

APPENDICES

Please see the following pages for the unaudited consolidated financial statements, 2019 performance and 2020 outlook.

ENDNOTES

⁽¹⁾ NON-IFRS FINANCIAL MEASURES

The Company provides some non-IFRS financial measures as supplementary information that management believes may be useful to investors to explain the Company’s financial results.

Beginning in the second quarter of 2013, we adopted an “all-in sustaining costs” measure consistent with the guidance issued by the World Gold Council (“WGC”) on June 27, 2013, of which Teranga became a member on November 27, 2018. The Company believes that the use of all-in sustaining costs is helpful to analysts, investors and other stakeholders of the Company in assessing its operating performance, its ability to generate free cash flow from current operations and its overall value. This measure is helpful to governments and local communities in understanding the economics of gold mining. The “all-in sustaining costs” is an extension of existing “cash cost” metrics and incorporate costs related to sustaining production.

“Total cash cost per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports total cash costs on a sales basis. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is 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. The measure, along with sales, is considered to be a key indicator of a Company’s ability to generate operating profits and cash flow from its mining operations.

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 North American 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 is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies.

The WGC definition of all-in sustaining costs seeks to extend the 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 and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining costs exclude income tax payments, interest costs, costs related to business acquisitions and items needed to normalize profits. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the calculation of all-in sustaining costs and all-in 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.

The Company also expands upon the WGC definition of all-in sustaining costs by presenting an additional measure of “All-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period.

“Total cash costs per ounce”, “all-in sustaining costs per ounce” and “all-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) per ounce” are intended to provide additional information only and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. The following tables reconcile the most directly comparable IFRS measure to these non-IFRS measures.

“Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and 80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.

EBITDA is a non-IFRS financial measure, which excludes income tax and related expenses, finance costs (including accretion expense), interest income and depreciation and amortization from net (loss)/profit for the year. In 2019, Teranga amended the definition of EBITDA to exclude accretion expense to improve comparability of this non-IFRS financial measure with its peers. The comparative 2018 EBITDA has been restated to conform to the new presentation. EBITDA is intended to provide additional information to investors and analysts and do not have any 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 a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations and fund capital expenditures.

Beginning second quarter 2019, the Company adopted adjusted EBITDA as a new non-IFRS financial measure. Management believes that adjusted EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations and fund capital expenditures, after adjusting for factors not reflective of the underlying performance of the Company. Adjusted EBITDA is intended to provide additional information to investors and analysts and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company calculates adjusted EBITDA as EBITDA adjusted to exclude unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, non-cash fair value changes, impairment provisions and reversals thereof, and other unusual or non-recurring items.

“Free cash flow” is a non-IFRS financial measure. The Company calculates free cash flow as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability to generate cash for growth initiatives. Other companies may calculate this measure differently.

"Adjusted net (loss)/profit attributable to shareholders” and “adjusted basic (loss)/earnings per share” are financial measures with no standard meaning under IFRS. These non-IFRS financial measures are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more readily in comparison with results from prior periods.

The Company calculates “adjusted net (loss)/profit attributable to shareholders” as net (loss)/profit for the year attributable to shareholders adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term obligations, the impact of foreign exchange movements on deferred taxes, non-cash fair value changes, impairment provisions and reversals thereof, and other unusual or non-recurring items.

“Adjusted basic (loss)/earnings per share” is calculated using the weighted average number of shares outstanding under the basic method of earnings per share as determined under IFRS.

RECONCILIATION OF NON-IFRS MEASURES

The reconciliation cash costs per ounce, cost of sales per ounce, all-in sustaining costs per ounce, and all-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) per ounce follows in the tables at the link: http://ml.globenewswire.com/Resource/Download/40c7606a-f894-4cb0-a102-ecdd85c3b268

Free cash flow is a non-IFRS performance measure that does not have a standard meaning under IFRS. Teranga defines free cash flow net cash flow provided by operating activities less sustaining capital expenditures.

EBITDA and adjusted EBITDA are calculated as follows:

⁽²⁾ During the three months ended December 31, 2019, gold ounces produced from Sabodala and Wahgnion were 54,539 ounces and 36,872 ounces, respectively, including 8,344 ounces produced during Wahgnion's pre-commercial production phase (2018: 59,442 ounces and nil, respectively). During the twelve months ended December 31, 2019, gold ounces produced from Sabodala and Wahgnion were 241,276 ounces and 47,492 ounces, respectively, including 18,964 ounces produced during Wahgnion's pre-commercial production phase (2018: 245,230 ounces and nil, respectively).

⁽³⁾ Excludes 8,136 ounces and 10,725 ounces sold from Wahgnion's pre-commercial production phase for the three and twelve months ended December 31, 2019.

⁽⁴⁾ Comparative amounts have been restated to present resettlement capital expenditures related to the Niakafiri deposit as growth capital expenditures.

⁽⁵⁾ Average realized price and cost information only include results from the period after achieving commercial production at Wahgnion (November 1, 2019 to December 31, 2019).

⁽⁶⁾ Excludes 8,344 ounces and 18,964 ounces produced during Wahgnion’s pre-commercial production phase for the three and twelve months ended December 31, 2019.

⁽⁷⁾ Includes 5,660 ounces of gold produced during Wahgnion’s pre-commercial production period.

FORWARD-LOOKING STATEMENTS

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga’s future growth opportunities, results of operations, performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and other opportunities. Wherever possible, words such as "plans", "expects", "does not expect", "scheduled", "trends", "indications", "potential", "estimates", "predicts", "anticipate", “to establish”, "does not anticipate", "believe", "intend", "ability to" and similar expressions or 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 forward looking information. Specific forward-looking statements in this press release include, but are not limited to, forecasting consolidated gold production for 2020, cost guidance and the timing of closing of the Massawa acquisition and the preparation and filing of applicable technical reports in connection therewith. Although the forward-looking information contained in this press release 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. Such forward-looking 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 but that may prove to be incorrect. These assumptions include, among other things, the closing and timing of financing, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and 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 any such 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 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 Teranga's amended and restated Annual Information Form dated July 31, 2019, and in other filings of Teranga with securities and regulatory authorities which are available on SEDAR at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.

ABOUT TERANGA

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of approximately 5,500 km² of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 2 million ounces of gold at its Sabodala operation in Senegal. Focused on diversification and growth towards its vision of becoming a mid-tier producer, the Company recently announced commercial production at its second gold mine, Wahgnion, which is located in Burkina Faso, and is carrying out exploration programs in three West African countries: Burkina Faso, Côte d’Ivoire and Senegal. Teranga applies a rigorous capital allocation framework for its investment decisions.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a participant of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report.

CONTACT INFORMATION