(All amounts are in U.S. dollars unless otherwise stated)
Toronto: August 7, 2020 – Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ;
OTCQX:TGCDF) today reported financial, operating and development results for the three and six months ended June 30, 2020.
“It’s been a good year so far despite the challenges and cost of maintaining operations during a pandemic,” said Richard Young, President and Chief Executive Officer. “Following the recent pre-feasibility study
results for the integrated Sabodala-Massawa complex and Wahgnion’s updated mine plan, Teranga now has a flagship top-tier gold asset and a solid second operation. Our quality asset base is the foundation of the Company’s transformation into a mid-tier gold producer.”
Mr. Young added, “We are significantly increasing 2020 production guidance while our five-year production guidance for the period 2021 to 2025 is expected to average 533,000 ounces of gold per year2 at all-in sustaining costs of $785 per ounce1, establishing Teranga as one of the lowest cost producers globally with significant cash flows, particularly at current gold prices.”
“As expected, Wahgnion’s strong results for the quarter offset softer production at Sabodala where we mined at lower grade areas and diverted equipment and resources to commence mining at Sofia, the first of the Massawa higher grade deposits,” stated Paul Chawrun, Chief Operating Officer. “As demonstrated in the new Sabodala-Massawa mine plan, we are shifting our focus to ramp up mining at Massawa in the third quarter, and processing higher grade free-milling ore from Sofia through the Sabodala plant.”

2020 GUIDANCE UPDATE. 2020 Guidance Sabodala-Massawa 2020 Guidance Wahgnion
2020 Guidance Consolidated
Total mined (‘000t) 30,000 - 33,000 24,000 - 26,000
Ore mined (‘000t) 4,500 - 5,500 3,000 - 3,500
Grade mined (g/t) 1.90 - 2.10 1.60 - 1.70
Strip ratio waste/ore 5.0 - 6.0 6.0 - 7.0
Ore milled (‘000t) 4,000 - 4,200 3,000 - 3,200
Head grade (g/t) 1.90 - 2.10 1.60 - 1.80
Recovery rate % 88 - 90 91 - 93
Gold produced A (oz) 225,000 - 235,000 150,000 - 165,000 375,000 - 400,000
Cost of sales $/oz sold 1,050 - 1,150 1,025 - 1,175 1,075 - 1,200
Total cash costs B $/oz sold 750 - 800 775 - 850
All-in sustaining costs C $/oz sold 875 - 950 900 - 1,000 975 - 1,100
Cash/(non-cash) inventory movements and amortized advanced royalty costs C
$/oz sold 25 (50) (25)
All-in sustaining costs (excluding cash/(non-cash) inventory movements and amortized advanced royalty costs) C $/oz sold 900 - 975 850 - 950 950 - 1,075
Mining ($/t mined) 2.75 - 3.00 2.15 - 2.40
Mining long haul ($/t hauled) 2.25 - 2.50
Milling ($/t milled) 11.00 - 12.00 11.00 - 12.00
General and administration ($/t milled) 6.00 - 7.00 6.00 - 7.00
Mine production costs - before COVID-19 incremental costs
$ millions 160 - 170 110 - 115
COVID-19 incremental costs G $ millions ~5 ~5
Total mine production costs $ millions 165 - 175 115 - 120

Capital Expenditures
Sustaining capital D $ millions 15 - 20 20 - 25
Resettlement capital $ millions 10 - 15 10 - 15
Massawa development capital $ millions 20 - 25

Corporate and Other
Corporate administration expense $ millions 16 - 17
Share-based compensation expense E $ millions ~13
Regional administration costs $ millions ~6
Sustainability expense $ millions 10 - 12
Exploration and evaluation F $ millions 30 - 35

Notes to Guidance Table Above:
A. Based on the 2020 guidance, 11,200 ounces of Sabodala gold production are to be sold to Franco-Nevada Corporation (“Franco-Nevada”) at 20% of the spot gold price. All Wahgnion gold production is subject to a gold offtake payment agreement with Taurus Funds Management Pty Ltd. up to 1,075,000 ounces.
B. Total cash costs per ounce sold is a non-IFRS financial measure and does not have a standard meaning under IFRS.
C. All-in sustaining costs per ounce is a non-IFRS financial measure and does not have a standard meaning under IFRS. All-in sustaining costs per ounce sold calculated at the mine site level includes only total cash costs per ounce and sustaining capital expenditures. All-in sustaining costs for includes sustaining capital expenditures but excludes growth capital related to village resettlement expenditures. Corporate administration and share-based compensation expense are presented separately in this table and are not allocated to the mine site level costs. All-in sustaining costs presented on a consolidated basis includes corporate administration and share-based compensation expense. All-in sustaining costs also includes non-cash inventory movements and non-cash amortization of advanced royalties.
D. Excludes capitalized deferred stripping costs, included in mine production costs.
E. Share-based compensation expense assumes an average price of C$12.30 per Teranga share (share price as at close of June 30, 2020).
F. Exploration and evaluation costs includes both expensed exploration, primarily attributable to exploration work on exploration permits, and capitalized reserve development, which is work performed on mine licenses.
G. As a result of worldwide COVID-19 pandemic in 2020, our 2020 guidance has been updated to reflect unforeseen incremental costs primarily related to personnel, camp and transportation costs.
This outlook financial information is based on the following material assumptions for 2020: gold price: $1,600 per ounce; Brent Crude Oil: $45 per barrel; and Euro:USD exchange rate of 1:1.10.
The Company assumes a corporate income tax rate of 25% in Senegal and 17.5% in Burkina Faso.
Other important assumptions: there are no events, whether COVID-19 related or political, that will have an impact to operations, including movement of people, supplies and gold shipments; grades and recoveries is expected to remain consistent with the life-of-mine plan to achieve the forecast gold production; and no unplanned delays in or interruption of scheduled production.

2020 GOALS & MILESTONES
• Sabodala-Massawa Complex
o File the pre-feasibility study (the “PFS”) for the Sabodala-Massawa Complex in Q3 2020.
o Begin processing Massawa ore through the Sabodala mill in August.
o Continue resource definition drilling at several of the Massawa deposits in support of a definitive feasibility study to be released in 2021.
• Wahgnion Updates
o Continue Wahgnion exploration program with aim to increase reserves and extend mine life toward our goal of 15 years.
• Progress Golden Hill Project Towards Feasibility Stage
o File technical report in support of mine license application.
o Continue resource expansion drill program.
• Advancing Afema Exploration Targets in Cote d’Ivoire
o Report early-stage trenching and drilling campaigns at the Woulo Woulo and Niamienlessa prospects at Afema.

SECOND QUARTER FINANCIAL & OPERATING HIGHLIGHTS
Three and six months ended June 30, 2020 compared to three and six months ended June 30, 2019
Three months ended June 30, Six months ended June 30,
Financial Data 2020 2019 Change 2020 2019 Change

Revenue ($000s) 164,177 83,554 96 % 298,291 175,681 70 %
Cost of sales ($000s) (107,798 ) (65,326 ) 65 % (202,451 ) (129,380 ) 56 %
Gross profit ($000s) 56,379 18,228 209 % 95,840 46,301 107 %
Net profit/(loss) attributable to shareholders of Teranga ($000s) 2,368 (7,581 ) N/A 18,554 (10,300 ) N/A
Per share ($) 0.01 (0.07 ) N/A 0.13 (0.10 ) N/A
Adjusted net profit attributable to shareholders of Teranga1 ($000s) 27,746 2,885 862 % 34,484 5,115 574 %
Per share1 ($) 0.17 0.03 467 % 0.24 0.05 380 %
EBITDA1 ($000s) 52,751 22,471 135 % 119,237 61,550 94 %
Adjusted EBITDA1 ($000s) 74,803 31,609 137 % 128,936 71,655 80 %
Operating cash flow before changes in working capital excluding
inventories ($000s) 55,314 19,304 187 % 84,054 45,586 84 %
Operating cash flow ($000s) 42,512 19,266 121 % 44,015 68,855 (36 %)
Sustaining capital expenditures (excluding deferred stripping)3 ($000s) 14,005 1,588 782 % 25,081 3,938 537 %
Capitalized deferred stripping - sustaining ($000s) 1,740 6,314 (72 %) 7,161 19,770 (64 %)
Growth capital expenditures3 ($000s) 8,034 41,196 (80 %) 11,413 92,408 (88 %)

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