third quarter financial and operating results

Q3 2016 Financial & Operating Highlights

Friday, October 28, 2016

TSX & ASX: TGZ

This presentation 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 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”, “trends”,

“indications”, “potential”, “estimates”, “predicts”, “forecasts”, “focused on”, “anticipate” or “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 presentation include the commencement of expected drill programs, anticipated future life of mine

cash flows, anticipated future interests in Joint Venture projects, the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated

conversion of resources into reserves at the Banfora project, the timing of completion of an updated 2Mtpa Feasibility Study for the Banfora project, and Teranga’s estimated

full year financial and operating totals, such as production. 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. 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 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, 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 Annual Information Form dated March 30, 2016, and in other filings of Teranga with securities and regulatory authorities which are available 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 report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.

This presentation is as of October 28, 2016. All references to Teranga include its subsidiaries unless the context requires otherwise.

This presentation contains references to Teranga 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 are denominated in U.S. dollars unless specified otherwise.

Teranga Gold Forward-Looking Statements

2

Richard YoungPresident & CEO

Another Strong Quarter

4

Increase in Gold

Production to

49,481 Ounces

(compared to

32,956 in Q3

2015)

+50%

Increase in

Throughput

to a Record 933,000

Tonnes Milled

(compared to

691,000 in Q3 2015)

+35%

All-in Sustaining

Costs per Ounce(1)

of $907 (compared

to $1,191 in Q3

2015)

24%

Increase in

Cash to $57.9M(2)

Since December

31, 2015

+30%

Refer to Endnotes (1) and (2) on the second last slide

(1)

Senegal

Côte d’Ivoire

Burkina Faso

Mali

Guinea

Guinea-

Bisseau

The Gambia

Ghana

Benin

Niger

Sierra

Leone

Liberia

Togo

Sabodala Gold Mine

Status: Producing

Reserves: 2.6Moz (3)

M&I: 4.4Moz (3)

5

Growing Multi-Jurisdictional West African Gold Company

Banfora Project

Status: Development

Reserves: 1.0Moz (4)

M&I: 3.0Moz (4)

Golden Hill

Exploration JV

Gourma

Exploration JV


Guitry

Exploration JV

Dianra

Exploration JV

Mahepleu

Exploration JV

Tiassale

Exploration JV

2.7x

5.9x

5.9x

6.4x

7.3x

12.2x

13.6x

22.3x

Teranga

Endeavour

Alacer

Semafo

Golden Star

B2Gold

Asanko

Roxgold

Enterprise Value/2016E EBITDA

Undervalued with the Potential for a Major Rate Reset

6

Teranga’s Share Price vs. Net Present Value (NPV)(5) per Share

133%

Refer to Endnote (5) on the second last slide

$1.19$1.39

$2.77

Share Price BMO NPV per Share Revalued Share Price

0.9xCurrent TGZ NPV Trading

Multiple(3)

2.0xAverage NPV Multiple

for Medium Producers(3)

48

62

87

197

197

260

383

442

468

Perseus

Alacer

Teranga

Asanko

Golden Star

Endeavour

Semafo

B2Gold

Roxgold

EV/2P Reserves ($/oz)

Data Source: BMO GoldPages published October 24, 2016

Paul ChawrunChief Operating Officer

3.5M2.9M 3.2M

6.5M

11.0M

2012 2013 2014 2015 2016

11M Hours Worked Without a Lost Time Injury

Health & Safety: A Key Tenet of Responsible Mining

6 LTI

2 LTI

Zero LTI Zero LTI Zero LTI

Number of lost time injuries

8

Tracking To 2016 Production Guidance Range of 200,000oz – 215,000oz(6)

9Refer to Endnote (6) on the second last slide

172,748ozYTD PRODUCTION FOR

THE 9-MONTHS ENDED

SEPTEMBER 30, 2106

2,5032,991

YTD 2015 YTD 2016

Record Throughput Supported by Mill Expansion

10

691 933

Q3 2015 Q3 2016

ORE MILLED(Koz)

Record Quarterly Mill ThroughputDriven by processing a fresh/oxide blend;

increased gold recovery; and

fully commissioned mill optimization project, which as

been operating at nameplate capacity since September

Early Start-up of Second Crusher CircuitMill optimization project was completed in Q3 ahead of

schedule and 12% below $20M budget

35%

20%


Double-Digit Reduction in Key Unit Costs

11

$3.12

$2.47 $2.59

Q3 2014 Q3 2015 Q3 2016

MINING COSTS ($/t mined)

MILLING COSTS($/t milled)

CASH COSTS INCLUDING ROYALTIES(1)

($/oz)

17%

$15.96 $16.50

$11.05

Q3 2014 Q3 2015 Q3 2016

$781

$712

$617

Q3 2014 Q3 2015 Q3 2016

21%

31%

Unlocking Value at the Banfora Gold Project

12

Increase reserve base

Infill drilling to convert resources to reserves

Drill brownfields targets to define additional resources/reserves

2Mtpa mill optimization studies

Trade off studies – grind size/gravity circuit/silver recoveries

Plant design

Power studies

Update reserve models

based on drill program

Optimize mine plan –

maximize grade in early

years

Review capital and

operating parameters

2H

2016

1H

20172H

2017

1H

2018

2H

20181H

2019

2H

2019

Commences drilling

campaign to confirm

existing reserve

deposits and potential

for reserve expansionFile NI 43-101

technical report

Seek board approval

and commence

construction

First gold pour

at Banfora

1 2 3 4

David MalloVice President, Exploration

13

Banfora Gold Project: Drill Results Confirm Mineralisation

14

Drilling Completed at Three of Four DepositsNogbele, Fourkoura, and Samavogo named in Gryphon’s

2013 Feasibility Study; drilling to commence at Stinger

deposit in Q4

Results in Line with ExpectationsResults confirm both Banfora mineralisation and its

potential for reserve expansion

Comprehensive Exploration Through 2017Plan is to continue to convert resources to reserves within

the 4 deposits included in the mine plan; work underway to

complete updated NI 43-101 by mid-2017

Banfora Gold Project (Burkina Faso)

15

Nogbele: The Largest of the Four Deposits

Positive Drill ResultsConfirming the geological resource model and identifying

extension along trend from known mineralisation

Tahiti: A Newly Identified Strike ExtensionThere is a minimum 200-metre strike extension to a

broad shallow oxide zone

Nogbele Plan Map

16

Samavogo & Fourkoura

Samavogo Plan MapQ3 drilling confirmed previous modeling, outlined up-dip gold

mineralisation at the southern end, and successfully extended a

mineralised zone in the central portion of the deposit

Fourkoura Plan MapResults to date provide confidence in the previous geological model and encouragement for near-surface strike extensions

Eleven Targets Within Trucking Distance to Proposed Banfora Mill

17

Banfora Gold Project (Burkina Faso)

BAGU SUD

/WEAH

KAFINA WEST

OUAHIRI

Ouahiri Prospect is the Highest Priority Target Displays a similar geochemical footprint in both size

and tenor as Nogbele deposit

10 Priority Prospects to be Explored in Q4Previous work has identified strong gold anomalies on

several prospects

.

KONANDOUGOU

BAZOGO

BASSONOGRO

HILLSIDE

MUDDI

SUD

Proposed

Plant

Siou Pit

M&I: 1.07 Moz ¹

Houndé

M&I: 2.55 Moz ³

Yaramoko

M&I: 0.81 Moz ²

Mana

M&I: 2.76 Moz ¹

Teranga’s JV

Golden Hill Project

Initiating Exploration at Golden Hill

Regional Prospect in Burkina FasoExploration permit located ~200Km NE of Banfora and is

comprised of 468km2 located at a very good address on the

Houndé belt

Exploration Has Defined High Quality Prospects Prioritized ten prospects for more advanced work, including

substantial drilling, in the coming months

18

Gourma

Golden Hill

Banfora

Burkina Faso

*M&I Resources are inclusive

of P&P Reserves

Source:

¹ Semafo Corporate

Presentation, (Sept 18, 2016)

² Roxgold Corporate

Presentation, (Oct 2016)

³ Endeavour Corporate

Presentation (Sept 2016)

Golden Hill Joint Venture (Burkina Faso)

Initiating Exploration at Gourma

19

Regional Exploration Property1,322km2 land package which covers ~60 Km strike length

of crustal scale shear zone

Numerous Prospects Being Advanced Six prospects identified from preliminary work to-date with

follow-up scheduled to commence in the first half of 2017

Gourma

Golden Hill

Banfora

Burkina FasoGourma Joint Venture (Burkina Faso)

Sabodala

Mill

Teranga Prospects

Ore Shells Projected

to Surface

Masato Style Bulk

Tonnage Gold Trend

Golouma Style High-

Grade Gold Trend

Mining Concession

Exploration Permits

Gora

Pit

Mali

20

Initial Resource Estimates in Senegal

Sabodala Mine License &

Regional Land Package in Senegal

Golouma North

Goumbati

West

Marougou Main

Representative plans and sections related to the initial resource estimations for these

deposits are available on the Company’s website under “Exploration”.

Deposit

Indicated Resources Inferred Resources

Tonnes Grade Au oz Tonnes Grade Au oz

('000s) (g/t Au) ('000s) ('000s) (g/t Au) ('000s)

Golouma North 170 1.32 7 295 1.42 14

Goumbati West 568 1.69 31 178 1.19 7

Marougou Main 0 0 0 1,199 1.41 54

Total 738 1.61 38 1,672 1.39 75

Notes for Mineral Resources:

1. CIM definitions were followed for Mineral Resources.

2. Open pit oxide Mineral Resources are estimated at a cut-off grade of 0.35 g/t Au.

3. Open pit transition and fresh rock Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au.

4. High grade assays were capped at grades ranging from 5.0 g/t Au to 13.5 g/t Au.

5. Open pit shells were used to constrain open pit resources.

6. Mineral Resources are estimated using a gold price of US$1,450 per ounce.

7. Sum of individual amounts may not equal due to rounding.

A High Priority TargetA NNE trending gold in quartz vein system comprised

of three zones located ~10km from the Sabodala plant

Shows Good Continuity Remains open to further extension along both north

and south trend and at depth. Minimum strike length

of ~1,500m. Initial drill results at Zone C suggest a

sub-parallel quartz vein system is present

Goumbati West Zones A, B and C (Sabodala Mine License)

21

Goumbati West Resource Outline

• Continue with multi-drill approach

and resource definition

• New target generation program

will continue

• Exploration work will include

Banfora gold project as well as

Golden Hill and Gourma joint

venture properties

• Geophysics, best fit geochemistry,

prospecting and multiple types of

drilling to be utilized

Senegal Burkina

Faso

22

Côte

d’Ivoire

• High-precision bulk leach

extractable gold survey planned

to cover the entirety of the four JV

exploration properties

Expansive 15-Month Exploration Program to Commence in Q4 2016

Navin DyalChief Financial Officer

23

TOTAL REVENUE ($M)

$37.8

$60.3

Q3 2015 Q3 2016

59%

Three months ended September 30 YTD September 30

Per ounce 2016 2015 % Change 2016 2015 % Change

Average realized gold

price $1,333 $1,112 20% $1,244 $1,185 5%

Average spot gold price $1,335 $1,124 19% $1,258 $1,178 7%

Low $1,308 $1,081 21% $1,077 $1,081 0%

High $1,366 $1,168 17% $1,366 $1,296 5%

$166.4

$213.1

YTD 2015 YTD 2016

28%

Significant Jump in Revenue

24

Development capex

$712 $617

$232$200

$247

$90

Q3 2015 Q3 2016

25Refer to Endnote (1) on the second last slide

ALL-IN SUSTAINING COSTS(1)

(per ounce sold)

Administration expenses, regional admin costs,

capitalized deferred stripping, capitalized

reserve development, and sustaining capitalTotal cash costs(1)

$907

$631$598

$217 $201

$116$96

YTD 2015 YTD 2016

$964

Improved AISC of $907(1) for Q3Mainly due to higher production, lower cash costs

and lower mine development costs

Lower Cash Costs of $617(1) for Q3Due to lower unit processing costs and G&A costs

for both periods

Lower Development CostsPrior year period included final capital spend to

complete development of high-grade Gora deposit

$1,19124%

$895

7%

Continuing to Improve All-in-Sustaining Costs


Keeping a Sharp Focus on G&A

26

$7.9

$5.4

YTD 2015 YTD 2016

$2.1$1.9

Q3 2015 Q3 2016

13%

32%

ADMINISTRATION EXPENSE(7)

($M)

CASH MARGIN PER OUNCE*

$50 $315

($79)

$426

$1,339

$1,269

$1,112

$1,333$1,289

$954

$1,191

$907

-90

110

310

510

710

910

1110

1310

Q3 2013 Q3 2014 Q3 2015 Q3 2016

Cash Margin/oz Average Realized Gold Price/oz All-in Sustaining Cost/oz

Expanding Cash Margins

27

(*cash margin = average realized gold price/oz – all-in sustaining costs per ounce)

(1)


Higher Profitability & Cash Flow During Q3 2016

28

Increase in EBITDA(8)

to $26.8M

(compared to $10.4M

in Q3 2015)

+$16M

EPS of $0.03

compared to nil in

the prior year

quarter

+$0.03 Increase in Cash

Flow From

Operations to

$13.3M

(compared to

($8.2M) in Q3 2015)

+$21M

Increase in Free

Cash Flow per

Ounce Sold(9)

(compared to

($632) per ounce

in Q3 2015)

+$715


Completed 5% Cash Investment in GryphonTo accelerate exploration and development at Banfora prior to

acquisition

$13.5M Increase in Cash Balance Since Start of YearCash balance and $7.6M in proceeds from placement with Tablo

contributes to a pro forma cash balance of $65.5M(2)

Equity Placement with Tablo CorporationPre-emptive participation right exercised in October for 9.7M

shares subsequent to quarter end in connection with the

acquisition of Gryphon

CASH POSITION($M)

$44.4

$57.9

December 31, 2015 September 30, 2016


Building Cash Since Beginning of the Year

29

30%

Tracking to 2016 Outlook (Excluding Gryphon Acquisition)

30Refer to Endnotes (1), (6), (7), (10), (11), and (12) on the second last slide

Year-to-Date

9-Month Period Ended

September 30, 2016

2016

Revised Guidance(10)

Ore mined (‘000t) 1,599 2,000 - 2,500

Waste mined (‘000t) 24,317 34,500 - 36,000

Total mined (‘000t) 25,916 34,000 - 35,000

Grade mined (g/t) 2.58 2.50 - 2.75

Ore milled (‘000t) 2,991 3,700 - 3,900

Head grade (g/t) 1.93 1.80 - 2.00

Gold produced (oz) 172,748 200,000 - 215,000(6)(12)

Total cash cost (incl. royalties) (1) $/oz sold 598 600 - 650

Total all-in sustaining cash cost (1) $/oz sold 895 900 - 975

Mine production costs $ millions 108.7 145 - 155

Regional administration costs (7)

(included in cost of sales) $ millions 1.4 2

Total capital expenditures (11) $ millions 25.4 32 - 37

Exploration (expensed) $ millions 3.7 5

Corporate administration expense (7) $ millions 5.4 8 - 9

CSR Expense (7) $ millions 2.8 3 - 3.5

2016 Guidance Revisions as of Q3

• Total mined tonnes reduced from 36.5 – 38.5Mt

due to reduced shovel availability in Q2 and Q3

• Grade mined reduced from 2.75 – 3.25 g/t to

2.50 – 2.75 g/t due to increased recovery of low

grade ore above reserves block model

Gryphon Not Included in Outlook

• Exploration expected to increase by ~$2M

and Capex expected to increase by ~$2M.

Refer to Endnotes (3) and (13) on the second last slide 32

WORLD-CLASS

Gold Belts

in Mining-Friendly

Jurisdictions SIGNIFICANT

Growth Opportunities

with Expansion into

West Africa

SOLID

Balance Sheet

& Cash Position

STRONG

Life of Mine

Cash Flows(13)

CORNERSTONE

INVESTOR

with Strong Ties

to West Africa

LARGE

Long-Life & Low Cost

Reserve &

Resource Base(3)

Appendices

Teranga Gold Competent & Qualified Persons Statement

34

The technical information contained in this Report relating to mineral resource estimates for the Company’s Sabodala Gold Operations is based on, and

fairly represents, information compiled by Ms. Nakai-Lajoie. Ms. Patti Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists

of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms.

Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has

sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to

qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves". Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie

has consented to the inclusion in this Report of the matters based on her compiled information in the form and context in which it appears in this Report.

Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent"

within the meaning of National Instrument 43-101. Mr. Mann has sufficient experience which is relevant to the style of mineralization and type of deposit

under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Mann is a "Qualified Person" under National Instrument 43-101

Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating 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 the sampling, analytical

and test data underlying the information. The RC samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for

diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. Mr. Mann has consented 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.

Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute

of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be

amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral

reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the

JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral

resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in

accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There

can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves.

Endnotes1) Total cash costs per ounce and all-in sustaining costs per ounce are non-IFRS financial measures and do not have a standard meaning under IFRS. Total cash costs per ounce and all-in sustaining costs per ounce are

before stockpile inventory value adjustments and government waiver accruals. For more information regarding these measures, please refer to non-IFRS Performance Measures in the Company’s Management’s

Discussion & Analysis for the three and nine months ended September 30, 2016 accessible on the Company’s website at www.terangagold.com.

2) Pro forma cash balance at September 30, 2016 is defined as cash including equity placement in October 2016 by Tablo Corporation of $7.6 million.

3) Teranga’s Sabodala Mineral Reserves and Mineral Resources for estimates as at December 31, 2015 as per Company disclosure. For more information regarding Teranga Gold’s Mineral Reserves and Resources and

related notes, please refer to Teranga Gold’s December Quarter and Year-end 2015 Report accessible on the Teranga’s website at www.terangagold.com.

4) The Mineral resources are as per Gryphon Minerals 2Mtpa Heap Leach Feasibility Study (JORC) released August 4, 2014. Despite the most recent Gryphon Reserve Estimate for the Banfora Gold Project of 826,000

ounces (17.4 Mt at 1.5 g/t) based on a lower capital cost heap leach processing option, Teranga has stated in the press release dated June 19, 2016, and in the Scheme Booklet announced on the ASX on August 17, 2016

and re-confirmed herein that Teranga’s preferred development path for the Banfora Gold Project will be based on an optimized CIL flowsheet. The Proven and Probable Mineral Reserve estimate of 1 million ounces

included in Teranga’s June 19, 2016 press release and herein is based on Gryphon’s CIL feasibility study Mineral Reserve estimate of 1.05 million ounces (16.7 Mt at 1.95 g/t) issued in January 2013. A number of relevant

factors have changed since this estimate was issued by Gryphon Minerals in 2013, and as such and benefitting from an optimization study to be completed by Teranga, we anticipate updating the feasibility study and the

resource and reserve estimates in the first half of 2017. Complete information is available on Gryphon’s website at www.gryphonminerals.com.au and filed on the ASX at www.asx.com.au.

5) 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 October 24, 2016.

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 assumes a US$1,267 SPOT gold

price per ounce, 5% discount, 0.75 USD/CAD exchange rate. For more information regarding Non-IFRS financial measures, please refer to Non-IFRS Performance Measures in the Company’s Management’s Discussion

and Analysis for the three and nine months ended September 30, 2016 accessible on the Company’s website at www.terangagold.com.

6) The production guidance is based on existing proven and probable reserves only from the Sabodala mining license initially reported by Teranga Gold in its NI 43-101 Technical Report dated March 22, 2016. And as

disclosed in Appendix 2 of Teranga Gold’s 2015 Fourth Quarter ASX Report titled “Teranga Outperforms Cost Guidance” issued January 28, 2016 accessible on the Company's website at www.terangagold.com. The

estimated ore reserves underpinning this production guidance have been prepared by a competent person in accordance with the requirements of the 2012 Australasian Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves (the “2012 JORC Code”). Please refer to the Competent Persons Statement available in the ASX Report referenced above.

7) To better align costs with industry peers, during the first quarter 2016 the Company began to present CSR Expense and Regional Administration Costs separately from Corporate Administration Expense. The Company's

2016 guidance has been updated to reflect this change in accounting presentation.

8) Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a Non-IFRS performance measure. Please refer to Non-IFRS Performance Measures in the Company's Management’s Discussion & Analysis

for the three and nine months ended September 30, 2016.

9) Free cash flow and free cash flow per ounce are defined as operating cash flow less capital expenditures. This is a Non-IFRS Performance Measure and does not have a standard meaning under IFRS.

10) Key assumptions: This forecast financial information is based on the following material assumptions for 2016: gold price: $1,200 per ounce; Brent oil:$50/barrel; Euro:USD exchange rate of 1.1:1; USD:CAD exchange rate

of 0.7:1. Other important assumptions include: any political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries will remain consistent with the

life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production.

11) Excludes capitalized deferred stripping costs, included in mine production costs.

12) 22,500 ounces of production are to be sold to Franco-Nevada at 20% of the spot gold price.

13) Cash flow is the Life of Mine net cash flow based on the Company’s most recent NI 43-101 Technical Report (“43-101 plan”) filed in March 2016, before income taxes, interest, debt repayments, closure costs, dividends

and working capital.

35

http://www.terangagold.com/

http://www.gryphonminerals.com.au/

http://www.asx.com.au/

http://www.terangagold.com/

TSX & ASX: TGZ

Trish Moran

Head of Investor Relations

T: +1.416.607.4507

E: [email protected]

W: terangagold.com

121 King Street West, Suite 2600

Toronto, ON M5H 3T9