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Teranga Gold Corporation: ASX Third Quarter Report For the Three Months Ended September 30, 2013

Teranga Gold Corporation: ASX Third Quarter Report For the Three Months Ended 
September 30, 2013 
TORONTO, ONTARIO -- (Marketwired) -- 10/29/13 -- Teranga Gold
Corporation (TSX:TGZ)(ASX:TGZ) -  
SABODALA GOLD OPERATION 
KEY THIRD QUARTER HIGHLIGHTS 


 
--  The Company is on track to meet full year production guidance at the
    higher end of the 190,000 to 210,000 ounce(1) range at total cash costs
    at the lower end of the $650 to $700 per ounce range and all-in
    sustaining costs of $1,000 to $1,100 per ounce(2) range 
--  Gold production was 36,874 ounces for the quarter and 154,836 ounces
    year to date 
--  Gold sales were 37,665 ounces of gold for the quarter and 161,845 ounces
    of gold year to date 
--  Total cash costs were $748 per ounce sold for the quarter and $621 per
    ounce year to date 
--  All-in sustaining costs were $1,289 per ounce for the quarter and $1,086
    per ounce year to date 
--  Completed acquisition of Oromin 
--  Cash and bullion receivable of $36.2 million after $9.6 million paid in
    Oromin acquisition costs 
--  Filed a new Sabodala technical report with a revised mine plan expected
    to generate significant free cash flow 

 
(1) This production target is based on existing proven and probable
reserves only. 
(2 ) Total cash costs per ounce and all-in sustaining costs per ounce
are non-IFRS measures which do not have standard meanings under IFRS. 
OPERATIONAL OVERVIEW 
Sabodala Gold Operation 
(All amounts are in US$ unless otherwise stated) 


 
--  Gold production for the three months ended September 30, 2013 was on
    plan at 36,874 ounces of gold putting the Company on track to meet the
    higher end of the Company's production guidance for the year. Production
    was 33 percent lower compared to the same prior year period due to lower
    processed grades, partly offset by higher mill throughput due to
    improvements made in the crushing circuit. 
    
--  During the third quarter of 2013, 37,665 ounces were sold at an average
    realized gold price of $1,339 per ounce. During the prior year period,
    62,439 ounces were sold at an average realized gold price of $1,290 per
    ounce with 29,000 ounces delivered into gold hedge contracts at an
    average price of $830 per ounce and 33,439 ounces sold at an average
    spot price of $1,688 per ounce.  
    
--  Total cash costs for the three months ended September 30, 2013 totalled
    $748 per ounce sold putting the Company on track to meet the lower end
    of its total cash cost guidance for 2013. Total cash costs increased
    from $509 per ounce in the year earlier period due to a 55 percent
    decrease in the grade processed during the quarter. The majority of mill
    feed during the quarter was from stockpiles since mining activity
    focused on waste stripping in phase 3 of the mine plan. Total cash costs
    have been adjusted for the adoption of IFRIC 20 for capitalization of a
    portion of production phase stripping costs. 
    
--  All-in sustaining costs for the three months ended September 30, 2013
    were $1,289 per ounce sold compared to $1,025 per ounce sold in the
    prior year period. The Company is on track to meet its all-in sustaining
    cost guidance of $1,000 to $1,100 per ounce for 2013. The increase
    compared to the prior year is primarily due to lower grades processed
    during the current quarter, partially offset by lower capitalized
    reserve development and administration expenses in the current year
    period. 
    
--  Total tonnes mined for the three months ended September 30, 2013 was 26
    percent higher compared to the same prior year period. The increase in
    total tonnes mined was mainly due to improved haul truck productivities
    as a result of shorter haul distances to the mill and waste dumps, as
    well as, improved loading efficiencies.  
    
--  During the current quarter, mining activities were focused on waste
    stripping on higher elevations of phase 3 of the pit, while in the same
    prior year period mining took place in a high grade ore zone on lower
    benches of phase 2. The improved loading efficiencies were the result of
    the purchase of the new PC3000 shovel in the second quarter 2013, which
    replaces the less efficient wheel loaders and the smaller PC2000.
    Increased blasting fragmentation from a change in drill patterns earlier
    in 2013 also contributed to the increase in total tonnes mined. 
    
--  Unit mining costs for the third quarter of 2013 were $2.48 per tonne, a
    decrease of 7 percent compared to the same prior year period. The lower
    unit costs were due to improved haul truck and loading efficiencies as
    noted above. 
    
--  Ore tonnes milled for the three months ended September 30, 2013 were 36
    percent higher than the same prior year period due to improvements made
    to reduce the frequency and duration of unplanned downtime and an
    increase in throughput in the crushing circuit to match mill capacity.
    These improvements were primarily accomplished during two planned major
    shutdowns in January and May 2013. A third and final planned shutdown
    for the mill has taken place in early October 2013.  
    
--  Processed grade for the three months ended September 30, 2013 was 55
    percent lower than the same prior year period. Mill feed in the third
    quarter 2013 was a blend of fresh ore and slightly softer stockpile
    material, as well as, some transitional ore mined from the upper benches
    of phase 3. 
    
--  As a result of the work completed this year, mill throughput reached
    annualized design capacity of 3.5 million tonnes of primarily hard ore
    during the third quarter. Higher grades mined and processed are expected
    to lead to higher gold production in the fourth quarter 2013 compared to
    the third quarter 2013, and full year production at the higher end of
    our original guidance range of 190,000 to 210,000 ounces. 
    
--  Unit processing costs for the three month period ended September 30,
    2013 were 20 percent lower than the same prior year period at $17.56 per
    tonne, mainly due to an increase in throughput in the crushing circuit
    to match mill capacity. Total processing costs for the three months
    ended September 30, 2013 were 9 percent higher than the same prior year
    period mainly due to an increase in consumption of heavy fuel oil (HFO)
    and cyanide as a result higher tonnes milled. This was partly offset by
    lower consumption of grinding media due to better management of recycled
    product and slightly lower cyanide consumption per tonne to optimize
    cost and recovery with the lower grade feed. 
    
--  During the third quarter, the Company amended its existing $60 million
    loan facility agreement with Macquarie Bank. The amended agreement
    extends the final repayment date of its existing loan facility agreement
    by one year to June 30, 2015. In a lower gold price environment, the
    Company will be required to maintain a restricted cash balance of up to
    $20 million. No amount was required to be restricted at the end of the
    quarter. The Loan Facility will be repaid in 5 equal quarterly
    instalments of $8 million beginning on June 30, 2014. The final $20
    million will be repaid with the final instalment on June 30, 2015.
    
 
                                                                            
PRODUCTION STATISTICS                                                       
                                                                            
----------------------------------------------------------------------------
                               Sep-13   Jun-13    Mar-13    Dec-12    Sep-12
                              Quarter  Quarter   Quarter   Quarter   Quarter
----------------------------------------------------------------------------
Ore mined            ('000t)      537      698     1,312     2,038       655
                            ------------------------------------------------
Waste mined -                                                               
 operating           ('000t)    3,321    2,683     2,513     4,362     1,786
                            ------------------------------------------------
Waste mined -                                                               
 capitalized         ('000t)    4,853    4,770     5,023       912     4,456
                            ------------------------------------------------
Total mined          ('000t)    8,711    8,151     8,848     7,312     6,897
                            ------------------------------------------------
Grade Mined            (g/t)     1.08     1.59      1.87      2.04      1.92
                            ------------------------------------------------
Ounces Mined            (oz)   18,721   35,728    78,929   133,549    40,516
                            ------------------------------------------------
Strip ratio        waste/ore     15.2     10.7       5.7       2.6       9.5
                            ------------------------------------------------
Ore processed        ('000t)      887      709       696       725       650
                            ------------------------------------------------
Head grade             (g/t)     1.41     2.36      3.31      3.40      3.11
                            ------------------------------------------------
Gold recovery            (%)      92%      92%       92%       91%       85%
                            ------------------------------------------------
Gold                                                                        
 produced(1)            (oz)   36,874   49,661    68,301    71,804    55,107
                            ------------------------------------------------
Gold sold               (oz)   37,665   54,513    69,667    71,604    62,439
                            ------------------------------------------------
Average price                                                               
 received               $/oz    1,339    1,379     1,090     1,296     1,290
                            ------------------------------------------------
Total cash                                                                  
 costs per                                                                  
 ounce                                                                      
 sold(2)                                                                    
 (including                                                                 
 Royalties)             $/oz      748      642       535       532       509
                            ------------------------------------------------
All-in                                                                      
 sustaining                                                                 
 costs per                                                                  
 ounce                                                                      
 sold(3)                                                                    
 (including                                                                 
 Royalties)             $/oz    1,289    1,185       898     1,004     1,025
                            ------------------------------------------------
Mining           ($/t mined)     2.48     2.64      2.61      3.11      2.67
                            ------------------------------------------------
Milling         ($/t milled)    17.56    23.77     22.47     19.88     21.89
                            ------------------------------------------------
G&A             ($/t milled)     4.60     6.25      6.17      6.35      5.69
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Gold produced includes change in gold in circuit inventory plus gold    
recovered during the period.                                                
                                                                            
(2) Total cash costs per ounce sold for 2012 were restated to comply with   
the Company's adoption of IFRIC 20 - Stripping Costs in the Production Phase
of a Surface Mine, in line with the Company's accounting policies and       
industry standards.                                                         
                                                                            
(3) All-in sustaining costs per ounce sold include total cash costs per     
ounce, administration expenses (excluding Corporate depreciation expense and
social community costs not related to current operations), capitalized      
deferred stripping, capitalized reserve development and mine site sustaining
capital expenditures.                                                       

 
OUTLOOK 2013  
Gold production for 2013 is expected to be at the higher end of the
original guidance range of 190,000 to 210,000 ounces, while total
cash costs are expected to be at the lower end of our $650 to $700
per ounce guidance. All-in sustaining costs (as defined by the World
Gold Council) are expected to be in the range of $1,000 to $1,100 per
ounce. Gold sales are expected to exceed production for the year as
gold in circuit inventory is reduced. As per the mine plan, gold
production in the fourth quarter is expected to be higher than the
third quarter as mining activity reaches the high grade benches in
phase 3 of the Sabodala pit.  
In the first quarter of 2013, the Company reduced discretionary
expenditures in a number of key areas including operations,
exploration and administration, as well as sustaining and development
capital and as such provided new guidance for the year for these
items with the Company's first quarter results. The Company is on
track to meet the revised guidance.  
In total, between capitalized reserve development and regional
exploration expenditures, the Company expects to spend approximately
$8 million in 2013 on exploration, in line with revised guidance for
the year.  
Administrative expenditures which include corporate office costs,
Dakar office costs and corporate social responsibility costs, but
exclude depreciation, transaction and other non-recurring costs, are
now expected to be $14 million, $1 million higher than our revised
guidance, which was mainly due to higher corporate social
responsibility costs and higher expenses out of our Dakar office.  
Capitalized expenditures, including sustaining mine site
expenditures, project development expenditures and capitalized
deferred stripping are expected to total $65 million, in line with
revised guidance for the year.  
Expenditures related to the acquisition and funding of Oromin,
including legal and advisory costs, loan repayment, severance and
termination benefits and ongoing provision of Oromin's share of
funding of the OJVG are expected to total approximately $15 million
in 2013. As at September 30, 2013, $9.6 million had been paid towards
these costs.  
FINANCE 
At September 30, 2013: 
Cash and cash equivalents - $32.2 million 
Trade receivables (bullion) - $4.0 million 
Project finance facility (balance outstanding) - $60.0 million 
Mining fleet lease facility (balance outstanding) - $20.2 million 
STRATEGY AND MINE PLAN 
In the first quarter of 2013, gold equities came under pressure.
Significant downward movements in gold prices followed and in light
of this we took steps in the first quarter to reduce 2013
discretionary spending in all areas without impacting our production
guidance, including lowering waste stripping to lower mining costs,
reduce exploration and reserve development expenditures, sustaining
and new project development expenditures as well as corporate
overheads. This was all done before the most recent decline in the
gold price in late June 2013. 
During the second quarter the exploration team was consolidated into
one exploration facility, a revised organizational design was applied
and the necessary staff personnel were reduced to gain in
efficiencies. As well, technical work continued to support Sabodala
operations including optimization of the resource through modelling
and grade control, evaluating geotechnical opportunities for waste
reduction in the pit wall design and waste dump designs for improved
mine operating costs. 
During the third quarter, as part of the Company's ongoing effort to
maximize free cash flows during this period of lower and more
volatile gold prices, management designed a new mine plan on a
standalone basis maximizing gold production while minimizing
operating, sustaining, new project development, corporate and other
costs. In early October, this new mine plan was filed as part of a
National Instrument 43-101 ("NI 43-101") compliant Sabodala Technical
Report on Sedar (www.sedar.com) and ASX (www.asx.com.au). 
The new optimized mine plan has been designed to provide earlier
access to higher grade material within the Sabodala pit and reduce
overall waste material moved, freeing up mobile equipment for the
development of satellite deposits, including those within the OJVG
and Gora. The new mine plan is expected to deliver between 210,000
and 240,000 ounces(1) of annual gold production over the period 2014
to 2016 at all-in sustaining cash cost estimated at between $800 and
$1,000 per ounce. As a result, at $1,350 per ounce gold, the Company
expects to generate between $150 and $200 million in free cash flow
after $80 million in capital expenditures and $85 million in debt
repayments over the period. 
Another key element of this new mine plan is sequencing the
commencement of Gora development to late 2014. This allows us to
utilize mobile equipment from Sabodala, which is expected to result
in $20 to $25 million in reduced capital costs for mobile equipment
compared to our previous mine plan. Under this revised mine plan,
Gora production start-up is now anticipated in early 2015. 
The optimized mine plan results in a reduction of reserves of
approximately 214,000 ounces of marginal gold or 13 percent of
reserves as of March 31, 2013. The reduction in reserves at Sabodala
maximizes near term cash flows over the period 2014 to 2016 by
removing high cost ounces that have a higher strip ratio of
approximately 15:1 (waste to ore). 
(1) This production target is based on existing proven and probable
reserves only. 
GORA DEVELOPMENT 
Gora is planned to be operated as a satellite to the Sabodala mine
requiring limited local infrastructure and development. Ore will be
hauled to the Sabodala processing plant by a dedicated fleet of
trucks and processed on a priority basis, displacing Sabodala feed as
required. 
A technical report and an environmental and social impact assessment
(ESIA) have been provided to the Senegalese government, and the
permit approval process is ongoing. 
Management expects the permit process to conclude and construction to
be initiated in late 2014 based on a standalone mine plan. This is
subject to spot gold prices and the outcome of the integrated mine
plan with the OJVG. 
ACQUISITION OF OROMIN EXPLORATIONS LTD. 
On August 6, 2013, the Company acquired 78,985,388 common shares of
Oromin Explorations Ltd. ("Oromin"), representing approximately 57.7
percent of the Oromin shares that the Company did not already own.
Together with the 18,669,500 Oromin shares owned by the Company, this
represented a combined 97,684,888 Oromin shares or approximately 71.1
percent of the outstanding Oromin shares. A further 2,091,013 shares
were obtained as part of this acquisition process, bringing the total
to 99,775,901 Oromin shares or approximately 72.6 percent of the
outstanding Oromin shares as at September 30, 2013. Subsequent to the
quarter end on October 4, 2013, the Company obtained 37,562,017
Oromin shares and completed the acquisition of all of the issued and
outstanding common shares of Oromin. 
The Company issued 71,183,091 Teranga shares to acquire all of the
Oromin shares for net consideration of $37.8 million, including the
fair value of Oromin stock options replaced by 7,911,600 Teranga
stock options. As a result, Teranga's total number of issued and
outstanding shares increased to 316,801,091 as of October 4, 2013.  
Acquisition related costs of approximately $7.3 million have been
expensed during the nine months ended September 30, 2013.  
OROMIN TECHNICAL INTEGRATION 
The acquisition of Oromin in August 2013 provided access to the OJVG
technical data. Since then, management has been evaluating the
geological and technical databases to be able to develop an
integrated mine plan that will support a NI 43- 101 compliant
resources and reserves technical report, targeted for Q1 2014. 
The ongoing technical work for the OJVG integrated mine plan
includes: 


 
--  A comprehensive due diligence review of the Golouma and Masato resource
    models. This includes re-logging and re-assay of key drill intercepts,
    QA/QC reviews and detailed interpretation for the updated resource
    models; 
    
--  Economic Lerchs-Grossman (LG) pit optimization and detailed pit designs;
    
--  Preliminary Life of Mine (LOM) mine planning schedules for optimized
    cash flow analysis, dilution analysis, pit designs, mine operating and
    capital estimates; 
    
--  An updated tailings deposition and water balance model; 
    
--  Analysis of the metallurgical test results for ore characterization
    studies that will increase understanding from Feasibility Study level
    and optimize feed and gold recovery to the Sabodala mill; and 
    
--  Environmental and social impact reviews for a reduced footprint using
    the Sabodala operations. 

 
In addition to development of an integrated LOM, the Oromin technical
team has been engaged with the Teranga technical teams both at site
in Senegal and the corporate offices. 
Next steps are anticipated to be: 


 
--  Negotiating a toll milling agreement or come to terms on sale of their
    interest in the Joint Venture with the Joint Venture Partners (Bendon
    and Badr); 
    
--  Integrating and developing the OJVG deposits into
    Teranga's operations; and 
    
--  Increasing production and generating greater free cash flow. 

 
MINE LICENSE (ML) RESERVE DEVELOPMENT 
There were no drill programs conducted on the ML during the third
quarter. The drill program at Sabodala was completed in the first
quarter of 2013, with results returned by mid-April 2013. 
The timing of a planned drill program at the Niakafiri deposit along
strike to the North is under review in light of both the decrease in
gold prices and the acquisition of Oromin, which may lead to a
re-evaluation of priorities. 
Additional surface mapping was carried out at Niakafiri in
conjunction with the re-logging of several diamond drill holes with a
view to updating the geological model for the Niakafiri deposit. 
REGIONAL EXPLORATION 
Due to the annual rainy season during the third quarter, the
exploration team did a minimal amount of field work and was primarily
focused on site mapping, trenching, interpretation and site
investigation for several high potential targets on our regional land
package. 
Additionally, since the acquisition of Oromin, the two geological
teams have been working as one unit for the detailed due diligence
review and remodeling of the Golouma and Masato deposits. In
addition, detailed reviews are ongoing for the other OJVG resources
and reserves, with the intention to integrate these into the scope
for the 2014 exploration program. 
RESERVES AND RESOURCES 
Mineral Resources at June 30, 2013 are presented in Table 1 below.
Total proven and probable mineral reserves at June 30, 2013 are set
forth in Table 2 below. The reported Mineral Resources are inclusive
of the Mineral Reserves. 
The proven and probable mineral reserves for the Sabodala, Niakafiri
and Gora deposits were based on the Measured and Indicated resources
that fall within the designed pits. The basis for the resources and
reserves is consistent with the Canadian Securities Administrators NI
43-101 regulations. The design for the open pit limits, related
phasing and long term planning for the Sabodala open pit was carried
out to maximize the economics under current market conditions by
removing high cost gold ounces in the Sabodala pit. 
The revised Sabodala pit design uses similar geotechnical parameters
as in past designs and is based on a $1,000 per ounce gold price for
the LG pit optimization routine. For the final design the pit limits
were marginally adjusted from the LG shell to maximize recovery in
phase 3 and phase 4 based on access constraints and mine operating
geometry. The cut off grades were established with an estimated gold
price of $1,350/oz. Additional design optimization work is ongoing to
potentially increase wall angles to take advantage of geotechnical
opportunities that have recently been revealed as part of an ongoing
technical analysis. Mining phases have been determined similarly to
the previous designs, where the mine sequencing is based on accessing
the high grade Main Flat Extension (MFE) through successive phases to
balance waste stripping and optimize cash flows. 
Dilution and ore recovery estimates for the Sabodala reserves were
based on a comparison of the resource model with actual production
performance over a 14 month span using a 5 metre minimum mining width
and 10 metre bench height. 
The Niakafiri pit design remains unchanged from December, 2012. The
Gora pit design has been adjusted to reflect an LG pit shell at
US$1,200 per ounce and an updated dilution analysis. 


 
Table 1: Resources Estimate                                                 
----------------------------------------------------------------------------
                                                            Measured and    
                  Measured             Indicated             Indicated      
           -----------------------------------------------------------------
            Tonnes  Grade     Au  Tonnes  Grade     Au  Tonnes  Grade     Au
              (Mt)  (g/t)  (Moz)    (Mt)  (g/t)  (Moz)    (Mt)  (g/t)  (Moz)
----------------------------------------------------------------------------
Sabodala     24.36   1.36   1.06   24.90   1.33   1.06   49.26   1.34   2.12
Niakafiri     0.30   1.74   0.02   10.50   1.10   0.37   10.70   1.12   0.39
Gora          0.49   5.27   0.08    1.84   4.93   0.29    2.32   5.00   0.37
----------------------------------------------------------------------------
Total        25.15   1.44   1.16   37.23   1.44   1.72   62.38   1.44   2.89
----------------------------------------------------------------------------
-----------------------------------------------------
                                 Inferred            
                    ---------------------------------
Area                     Tonnes         Au         Au
                           (Mt)      (g/t)      (Moz)
-----------------------------------------------------
Sabodala                  18.05       0.95       0.55
Niakafiri                  7.20       0.88       0.21
Niakafiri West             7.10       0.82       0.19
Soukhoto                   0.60       1.32       0.02
Gora                       0.21       3.38       0.02
Diadiako                   2.90       1.27       0.12
Majiva                     2.60       0.64       0.05
Masato                    19.18       1.15       0.71
-----------------------------------------------------
Total                     57.84       1.01       1.87
-----------------------------------------------------
                                                                            
Notes for Resources Estimate:                                               
  1)  CIM definitions were followed for Mineral Resources.                  
  2)  Mineral Resources for Sabodala include Sutuba.                        
  3)  Mineral Resource cut-off grades for Sabodala are 0.2 g/t Au for oxide 
      and 0.35 g/t Au for fresh.                                            
  4)  Mineral Resource cut-off grades for Niakafiri are 0.3 g/t Au for oxide
      and 0.5 g/t Au for fresh.                                             
  5)  Mineral Resource cut-off grade for Gora is 0.5 g/t Au for oxide and   
      fresh.                                                                
  6)  Mineral Resource cut-off grade for Niakafiri West and Soukhoto is 0.3 
      g/t Au for oxide and fresh.                                           
  7)  Mineral Resource cut-off grade for Diadiako and Majiva is 0.2 g/t Au  
      for oxide and fresh.                                                  
  8)  Mineral Resource cut-off grade for Masato is 0.35 g/t for fresh.      
  9)  Measured Resources include stockpiles which total 7.88 Mt at 0.90 g/t 
      Au for 0.23 Mozs.                                                     
  10) High grade assays were capped at grades ranging from 10 g/t to 30 g/t 
      Au at Sabodala, 20 g/t to 70 g/t Au at Gora, 10 g/t Au at Soukhoto and
      20 g/t Au at Masato.                                                  
  11) The figures above are "Total" Mineral Resources and include Mineral   
      Reserves.                                                             
  12) Sum of individual amounts may not equal due to rounding.              
                                                                            
Table 2: Reserves Estimate                                                  
-----------------------------------------------------------------------
                               Proven                  Probable        
                      -------------------------------------------------
Area                    Tonnes   Grade      Au  Tonnes    Grade      Au
                          (Mt)   (g/t)   (Moz)    (Mt)    (g/t)   (Moz)
-----------------------------------------------------------------------
Sabodala                  4.26    1.57    0.21    7.37     1.59    0.38
Niakafiri                 0.23    1.69    0.01    7.58     1.12    0.27
Gora                      0.50    4.58    0.07    1.39     4.80    0.21
stockpiles                7.88    0.90    0.23       -        -       -
-----------------------------------------------------------------------
Total                    12.87    1.28    0.53   16.34     1.64    0.86
-----------------------------------------------------------------------
 
-------------------------------------------------
                          Proven and Probable    
                      ---------------------------
Area                     Tonnes    Grade       Au
                           (Mt)    (g/t)    (Moz)
-------------------------------------------------
Sabodala                  11.63     1.58     0.59
Niakafiri                  7.81     1.14     0.29
Gora                       1.89     4.74     0.29
stockpiles                 7.88     0.90     0.23
-------------------------------------------------
Total                     29.21     1.48     1.40
-------------------------------------------------
                                                                            
Notes for Reserves Estimate:                                                
  1.  CIM definitions were followed for Mineral Reserves.                   
  2.  Mineral Reserve cut off grades for Sabodala are 0.30 g/t Au for oxide 
      and 0.5 g/t Au for fresh based on a $1,350/oz gold price and          
      metallurgical recoveries between 90% and 93%.                         
  3.  Mineral Reserve cut off grades for Niakafiri are 0.35 g/t Au for oxide
      and 0.5 g/t Au for fresh based on a $1,350/oz gold price and          
      metallurgical recoveries between 90% and 92%.                         
  4.  Mineral Reserve cut off grade for Gora is 0.76 g/t Au for oxide and   
      fresh based on $1,200/oz gold price and metallurgical recovery of 95%.
  5.  Sum of individual amounts may not equal due to rounding.              

 
The technical information contained in this document relating to the
mineral reserve estimates for Gora and Niakafiri is based on
information compiled by Julia Martin, P.Eng. who is a member of the
Professional Engineers of Ontario and a Member of AusIMM (CP). Ms.
Martin is a full time employee with AMC Mining Consultants (Canada)
Ltd., is independent of Teranga, is a "qualified person" as defined
in NI 43-101 and a "competent person" as defined in the 2004 Edition
of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Ms. Martin has sufficient
experience relevant to the style of mineralization and type of
deposit under consideration and to the activity 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. Martin is a "Qualified Person" under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects. Ms. Martin has reviewed and accepts responsibility for the
Mineral Reserve estimates for Gora and Niakafiri disclosed in this
document and has consented to the inclusion of the matters based on
her information in the form and context in which it appears in this
document.  
The technical information contained in this document relating to the
Mineral Resource estimates is based on information compiled by Patti
Nakai-Lajoie, P. Geo., who is a Member of the Association of
Professional Geoscientists of Ontario. 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 reviewed and
accepts responsibility for the Mineral Resource estimates disclosed
in this document and has consented to the inclusion of the matters
based on her information in the form and context in which it appears
in this document.  
The technical information contained in this document relating to the
Mineral Reserve estimates for Sabodala and the stockpiles is based on
information compiled by Paul Chawrun, P. Eng., who is a member of the
Professional Engineers of Ontario. Mr. Chawrun is a full time
employee of Teranga and is not "independent" within the meaning of
National Instrument 43-101. Mr. Chawrun 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 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr. Chawrun is a "Qualified Person"
under National Instrument 43-101 Standards of Disclosure for Mineral
Projects. Mr. Chawrun has reviewed and accepts responsibility for the
Mineral Reserve estimate for Sabodala disclosed in this document and
has consented to the inclusion of the matters based on his
information in the form and context in which it appears in this
document. 


 
CORPORATE DIRECTORY                                                         
                                                                            
                                                                            
Directors                                                                   
Alan Hill, Executive Chairman                                               
Richard Young, President and CEO                                            
Christopher Lattanzi, Non-Executive Director                                
Edward Goldenberg, Non-Executive Director                                   
Alan Thomas, Non-Executive Director                                         
Frank Wheatley, Non-Executive Director                                      
                                                                            
Senior Management                                                           
Alan Hill, Executive Chairman                                               
Richard Young, President and CEO                                            
Mark English, Vice President, Sabodala Operations                           
Paul Chawrun, Vice President, Technical Services                            
Navin Dyal, Vice President and CFO                                          
David Savarie, Vice President, General Counsel & Corporate Secretary        
Kathy Sipos, Vice President, Investor & Stakeholder Relations               
Macoumba Diop, General Manager and Government Relations Manager, SGO        
                                                                            
Registered Office                                                           
121 King Street West, Suite 2600                                            
Toronto, Ontario, M5H 3T9, Canada                                           
T: +1 416-594-0000                                                          
F: +1 416-594-0088                                                          
E: investor@terangagold.com                                                 
W: http://www.terangagold.com/                                              
                                                                            
Senegal Office                                                              
2K Plaza                                                                    
Suite B4, 1er Etage                                                         
sis Route du Meridien President                                             
Dakar Almadies                                                              
T: +221 338 693 181                                                         
F: +221 338 603 683                                                         
                                                                            
Auditor                                                                     
Ernst & Young LLP                                                           
                                                                            
Share Registries                                                            
Canada: Computershare Trust Company of Canada                               
T: +1 800 564 6253                                                          
Australia: Computershare Investor Services Pty Ltd                          
T: 1 300 850 505                                                            
                                                                            
Stock Exchange Listings                                                     
Toronto Stock Exchange, TSX code: TGZ                                       
Australian Securities Exchange, ASX code: TGZ                               
                                                                            
Issued Capital                                              
------------------------------------------------------------
As of October 4, 2013                                       
------------------------------------------------------------
Issued shares                                    316,801,091
------------------------------------------------------------
Stock options                                     23,917,433
------------------------------------------------------------
                                                            
Stock Options - Exercise Profile                            
------------------------------------------------------------
Exercise Price (C$)                                  Options
------------------------------------------------------------
$3.00                                             16,808,333
------------------------------------------------------------
$0.65 - $1.30                                      7,911,600
------------------------------------------------------------

 
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,
without limitation, all disclosure regarding possible events,
conditions or results of operations that are based on assumptions
about future economic conditions and courses of action. Teranga
cautions 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: the inherent risks involved in
exploration and development of mineral properties, 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 www.sedar.com. 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. Nothing in this news release should be construed
as either an offer to sell or a solicitation to buy or sell Teranga
securities. 
Competent Persons Statement 
The technical information contained in this document relating to the
mineral reserve estimates for Gora and Niakafiri is based on
information compiled by Julia Martin, P.Eng. who is a member of the
Professional Engineers of Ontario and a Member of AusIMM (CP). Ms.
Martin is a full time employee with AMC Mining Consultants (Canada)
Ltd., is independent of Teranga, is a "qualified person" as defined
in NI 43-101 and a "competent person" as defined in the 2004 Edition
of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Ms. Martin has sufficient
experience relevant to the style of mineralization and type of
deposit under consideration and to the activity 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. Martin is a "Qualified Person" under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects. Ms. Martin has reviewed and accepts responsibility for the
Mineral Reserve estimates for Gora and Niakafiri disclosed in this
document and has consented to the inclusion of the matters based on
her information in the form and context in which it appears in this
document. 
The technical information contained in this document relating to the
Mineral Resource estimates is based on information compiled by Patti
Nakai-Lajoie, P. Geo., who is a Member of the Association of
Professional Geoscientists of Ontario. 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 reviewed and
accepts responsibility for the Mineral Resource estimates disclosed
in this document and has consented to the inclusion of the matters
based on her information in the form and context in which it appears
in this document. 
The technical information contained in this document relating to the
Mineral Reserve estimates for Sabodala and the stockpiles is based on
information compiled by Paul Chawrun, P. Eng., who is a member of the
Professional Engineers of Ontario. Mr. Chawrun is a full time
employee of Teranga and is not "independent" within the meaning of
National Instrument 43-101. Mr. Chawrun 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 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr. Chawrun is a "Qualified Person"
under National Instrument 43-101 Standards of Disclosure for Mineral
Projects. Mr. Chawrun has reviewed and accepts responsibility for the
Mineral Reserve estimate for Sabodala disclosed in this document and
has consented to the inclusion of the matters based on his
information in the form and context in which it appears in this
document. 
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. 
Teranga'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.
Contacts:
Teranga Gold Corporation
Kathy Sipos
Vice-President, Investor & Stakeholder Relations
+1 416-594-0000
ksipos@terangagold.com