June 2011-2-investor-presentation-06222011

Producing and Exploring

June 2011

2

Cautionary Statement

This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking

statements, within the meaning of applicable United States securities legislation, 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”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or

statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to

identify such forward looking information. 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. A number of factors

could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking

information, including those listed in the “Risk Factors” section of the prospectus of Teranga, dated November 11, 2010 (the “Prospectus”).

These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking information.

Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause

Teranga‟s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by

such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions,

events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause

actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information

will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly,

prospective investors should not place undue reliance on such forward looking information. The forward looking information is stated as of

the date of the Prospectus and, except as required under applicable laws, Teranga assumes no obligation to update or revise such

information to reflect new events or circumstances.

Forward looking information and other information contained herein concerning mineral exploration and management‟s general expectations

concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry

sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which

management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions,

market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data

presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on various factors.

In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information as they involve

the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in

the future.

3

Capitalization Summary

(1) As part of the demerger Mineral Deposits Ltd. retained 40 million TGZ shares and received C$50 million from the IPO proceeds.

(2) As at March 31,2011

(3) Includes short-term investments and restricted cash (4) US$23.6 MM drawn under the mining fleet finance lease facility with Societe Generale.

Ticker symbol: TGZ: TSX/ASX

Shares outstanding (1): 245.6 million

Stock options outstanding: 14.4 million

Share price (as at June 1, 2011): [C$2.61]

Market capitalization: [C$641million]

Cash position(2): US$93.8 million(3)

Debt position (2)(4): US$21.5 million

Net cash position (2): US$72.3 million

40 MM

20%

Sabodala

Gold

(Mauritius)

Limited

18.7 MM

shares of

Oromin

(13.8%)

90% Interest

in Sabodala

Gold Project

(10% free-carried

interest held by

Govt. of Senegal)

4

Growth Strategy

Mine Site

Exploration

Strategic Mill

Regional

Exploration

Regional

Opportunities Mill Expansion

5

Sabodala Gold (Senegal)

• Sabodala is the only large scale gold mine in Senegal

• Senegal

– Mining Code passed in November 2003

– Successful democracy

– Stable political environment

– Estimated population of 13.7 million

– Mining friendly regime

– Government holds 10% free-carried interest in Sabodala and 3% royalty

– Tax-free holiday that ends May 2015

6

Sabodala Gold Operations

• First gold pour in March 2009

– Approx. cost of $330M

• Mill expansion from 2 MM tpa to ~4 MM tpa underway

– Est. 140,000 oz Au production 2011 expanding to >200,000 oz Au

– Expected to be completed early 2012 at a cost of US$56 MM

• Well developed infrastructure

– Located 650 km east of the capital Dakar and 96 km north of the town Kedougou

– 30 MW heavy fuel oil power plant located on site (36 MW with mill expansion)

– Auxiliary water source

7

Sabodala Gold Production

(1) Gold produced is gold poured and does not include gold-in-circuit at period end.

Production Statistics

Calendar Year 2011

•Est. production 140,000 oz at $750 - $775/oz

•CapEx $59.5M

Calendar Year 2012

•Est. production 220,000 oz at $575-$625/oz

•CapEx ~ $25M

Ore mined („000t) 491 1,457

Waste mined („000t) 6,460 10,618

Total mined („000t) 6,951 12,075

Strip ratio w aste/ore 13.2 7.3

Ore processed („000t) 608 1,195

Head grade (g/t) 1.93 2.01

Gold recovered (oz) 34,296 70,170

Gold produced (1) (oz) 36,402 70,050

Gold sold (oz) 39,490 72,946

Average price received $/oz 1,199 1,180

Total cash cost (incl. royalties) $/oz 655 713

Mining (cost/t mined) 1.7 2.1

Milling (cost/t milled) 15.3 15.6

G&A (cost/t milled) 4.7 4.9

6 months ended March

31, 2011

3 months ended March 31,

2011

8

Highlights

During the first full quarter, the Company:

Increased reserves and provided reserve guidance

Increase production and lowered cash cost guidance for 2011 and 2012

Redesigned pit

Committed to take Gora from exploration into development

Ramped up exploration program

Expect consistent news flow

Expect more discoveries on the Regional Land Package

Focused on adding reserves

9

West Africa: Prolific, Under Explored Gold Belt

10

Kedougou-Kenieba Inlier – A Birimian Greenstone Belt

0

300

600

900

1,200

1,500

1,800

2,100

Proven and

Probable

Measured and

Indicated

Inferred

Re

se

rve

/Re

so

urc

e (

00

0's

oz)

2,254

(@1.33 g/t)

774

(@1.06 g/t)

1,51

(@1.47 g/t)

(2)(3)

Gold Reserves and Resources(1)

(1) See Appendix page 27

(2) M+I resources are inclusive of reserves

(3) As at June 30, 2010, see Sabodala Technical Report

(3)

11

Exploration Program

Exploration Program (Calendar 2011)

1. Mine License Exploration:

$8 MM (~60,000m)

(YTD 15,000m)*

2. Regional Exploration:

$17 MM (~80-90,000)

( YTD 14,400m)*

TOTAL: US$25 MM (140-150,000m)

* Majority of assays are pending

SS

C

12

1. Mine License Exploration 2. Regional Exploration

GORA

35 KM radius

Budget: $8 M Budget: $17M

13

1. Sabodala Mine License Exploration

• US$8 MM exploration program is underway on the Sabodala Mine License(1)

• 10 targets identified for follow up

• Potential to expand proven and probable reserves from 1.51 Moz gold to 2 to 3 Moz gold over the next

12 to 24 months increasing the mine life to ~ 10 to 15 years

Masato Extension:

• Continuation of Masato deposit

“The Corridor”:

• Continuation of the main Sabodala

structural trend to the north

Niakafiri, Niakafiri West &

Soukhoto:

• Down-dip extension of Niakafiri,

strike extension of Niakafiri West

and Soukhoto

Sambaya Hill:

• Confluence of Niakafiri Shear Zone

with Main Flat from Sabodala and

Masato Shear

(1) to be completed by June 30, 2011

14

SABODALA STRUCTURAL TREND

(“The Corridor”)(1)

•Northerly trending extension of Sabodala pit

•Mineralization traced more than 100m north of the existing

pit along trend

•Open to north and west

•Drilling intersected wide widths of alteration similar to

Sabodala and Niakafiri

•Drilling 20m centres

•Plan is to conduct 10,800 metres of RC and Diamond

drilling to test target at depth and along strike

•Expect resources defined to be converted to reserves in

2011

Sabodala Mine License – „The Corridor‟

(1) Please note that the target “Sabodala Structural Corridor”, was previously identified as 3 separate targets in the September 27, 2010 Sabodala Technical Report but

now has been consolidated to 1 target which therefore brings the total Mining Lease targets to 10.

Ayoub’s

Thrust

Mylonite

Shear Zone

Sabodala Pit

15

Sabodala Mine License – Masato / Sambaya Hill Target

MASATO / SAMBAYA HILL

•Masato structural trend (1.6 Moz on Oromin JV) strikes

across onto SGO license

•Plan to conduct 5,000 metres of RC and Diamond drilling

to define structural trend and test structure at depth

•Initially being tested over a 500 metre strike length, 20 drill

holes totaling 6,150 metres of drilling

•First drill hole SMRC055

• 11m of 1.08 g/t from 234m down hole

• 20m of 3.53 g/t from 267m down hole

• Will be extended with core as part of

program

•Multiple mineralized zones have been identified with high

grade intervals apparent from aqua regia assays conducted

on site

•Expect to define new resources in calendar 2011

• Sambaya Hill - Trend defined by an IP and geochemical

anomaly

Sabodala Pit

Masato Extensions

Sambaya Hill

Masato Down Dip

16

1. Mine License Exploration 2. Regional Exploration

GORA

35 KM radius

Budget: $8 M Budget: $17M

17

2. Regional Exploration

• From 2007 – 2009, no significant drilling was

done on the 1,455 km2 Regional Land Package

due to cash constraints

• There are 27 drill targets identified to drill by

end of year; drilling program (US$17M)

currently underway

• 14,400m of DD and RC and 34,600m of RAB

drilling completed March 31, 2011

• 10 drill rigs are currently on the Regional Land

Package

• All targets in trucking distance of the existing

mill

GORA

“The Donut”

Gora

Tourokhoto

35 KM radius

Toumboumba

18

Gora – High-Grade Quartz Vein System

•Most advanced target: moving from exploration to development

•Inferred resource of 106,000 oz @ 6 g/t Au

•22 km from Sabodala mill

•Increased exploration budget for 2011

•800m strike length auriferous quartz vein, outcropping

•Deposit open in all directions

•4 active drill rigs (3 DD, 1 RC/DD)

•2011 drill program:

• Significant increase in mineralized envelopes relative to 2010

RC drill program

• Now understood to be a stacked vein system (vs. single-vein)

• Vein 1 extended (currently 8.8 g/t Au)

• Vein 2 now more continuous (3.0 g/t Au)

• Vein 3 now important mineralized body

• Vein 5 discovered just below Vein 1

• Excellent potential for bulk style mineralization

• Based on positive drill results, drill program has been expanded

by an additional 4,500m

• 6,000m RC, 4,000m DD remain to be drilled to complete

current phase, scheduled for late summer 2011

19

Gora – High-Grade Quartz Vein System

•Selected latest results include:

• 5m @ 33.7 g/t from 111m (Vein 1)

• 2m @ 61.3 g/t from 126m (Vein 1)

• 3m @ 26.7 g/t from 154m (Vein 1)

• 3m @ 47.7 g/t from 164 m (Vein 5)

• 1m @ 33.0 g/t from 156m (Vein 4)

• 4m @ 10.7 g/t from 145m (Vein 2)

• 1m @ 51.8 g/t from 112m (Vein 2)

• 9m @ 3.2 g/t from 87m (Vein 1)

•Current program designed to a vertical depth of 120m and 130m along strike

•Step out exploration drilling beyond described above to test key structural intersections has commenced with a minimum

2,400m DD drill program

•Induced polarization (“IP”) survey is has commenced over the Gora deposit ensuring significant coverage along the structures

•Expect to bring resource to reserve by end of calendar 2011 with the goal of processing high-grade ore as soon as late 2012

20

Toumboumba

•Newest target drilled, promising early results

•Located 10 km NW from Sabodala mill

•Alteration hosted mostly in granite

•26,000m RAB drilling completed in April/May including:

• 6m @ 18.85 g/t, including 4m @ 27.7 g/t

• 10m @ 2.35 g/t, including 2m @ 9.69 g/t

• 8m @ 5.45 g/t, including 2m @ 17.75 g/t

•Significant widths of ore mineralization were encountered

in western portion of anomaly, RAB holes grading >0.5 g/t

•Oxide mineralization of up to 50m in depth

•If heap leachable, production could be fast tracked without

displacing material from Sabodala mill

•Early RC drilling follow-up (8 holes)

•Aqua regia results for 4 holes including:

• 3m @ 6.13 g/t, including 1m @ 15.44 g/t

• 3m @ 11.99 g/t, including 1m @ 25.2 g/t

21

Diegoun North – “THE DONUT”

HONEY

JAM

CINNAMON

•7km x 4 Km complex of gold anomalism

•Contrasting rock types, porphyries, granites, dolerite & sediments

•Rock samples to 80 g/t Au

•RAB drilling has defined gold mineralization in bedrock

•5000m of RC allocated, early RC planned over RAB anomalies

HONEY

JAM

•19,000m RAB drill program commenced at Cinnamon – 11,000m

completed

•10,000m first pass RC drilling with 17 RC holes (2,300m)

•Several intervals of anomalous gold identified: widths up to 40m

Sabodala Ore Body

22

Tourokhoto

•>5Km long, up to 1Km wide gold anomaly defined by termite sampling

•Parallels NE trending shears of the MTZ

•3 Moz Massawa deposit hosted on MTZ about 25Km south

•>240 ppb Au contours coincide with areas where MTZ shears are

intersected by later NE fault structures

•Rock sampling returned up to 10 g/t Au from sparse outcrop

•Wide zones of sheared sediments and quartz-feldspar porphyries

observed

•Quartz tourmaline Veining observed

•Commenced 23,000m RAB drill program over 5km gold geochemical

anomaly

•13,000m of RAB drilling completed to date

•Program will define bedrock gold bearing zones

•Program will provide targets for follow up DD and RC drilling

•Commenced 1,600m, 5-hole DD program

•Identified significant gold-bearing structure and alteration

•Follow-up continues

23

Goundamekho - Extensive Surface Gold Workings on Structures

Gold from Trenches

75g nugget from artisan workings

• 35 RC holes for 4,200m completed

• Multiple gold bearing structures warrant follow-up drilling

24

Exploration Team / On Site Assay Lab

Geochem Sampling Team at Makana

Mapping at Makana

RC Drilling at Bransan

Niang, Database and GIS

Management

Structural Mapping

Field Work Sounkounkou On site assay lab

Mapping Trenches at Dembala Berola Part of team at Exploration Office

25

Kedougou-Kenieba Inlier – A Birimian Greenstone Belt

An emerging world class gold district.

26

Summary World-class asset in its early stages

1. Experienced Management Team

2. Senegal West Africa – 1,488km2 land position

• Largest land position in Senegal

3. Operating mine and mill

4. Planned mill expansion

• from 2Mtpa to ~4Mtpa

• increasing gold production (Est. 2011: 140,000 oz; Est. 2012: 220,000 oz)

5. Aggressive exploration program

• US$25M to be spent in calendar 2011

• ~15 drill rigs

Producing and Exploring

June 2011

Appendices

Competent Persons Statement The technical information contained in this release relating to exploration activities within the mining license is based on information compiled

by Mr. Bruce Van Brunt, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional

geologist in the State of Washington, USA. He is qualified as a Competent Person as defined in the 2004 Edition of the “Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person as defined in NI43-101. Mr. Van Brunt

is a full-time employee of Teranga. The technical information contained in this release relating to the regional exploration is based on

information compiled by Mr. Martin Pawlitschek, who is a geologist and a member of the Australian Institute of Geoscientists. Mr.

Pawlitschek is also qualified as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves” and as a Qualified Person as defined in NI43-101. Mr. Pawlitschek is a full-time employee of

Teranga.

The latest grade estimates as presented have been classified as a combination of Measured, Indicated and Inferred Mineral Resources in

accordance with CIM Definitions (2005) resource reporting classification guidelines and reconciled to the JORC Code (2004).

Mssrs. Van Brunt and Pawlitschek have consented to the inclusion of the technical information in the form and context in which it appears in

this presentation. Mssrs Van Brunt and Pawlitschek have reviewed and verified the data contained in this presentation, including sampling,

analytical and test data underlying the estimates provided. Verification of the data included numerous site visits, database validation of

historical drill results and review of sampling and assaying protocols.

29

Sabodala Gold Project: Reserves & Resources

(1) See the Sabodala Technical Report ; #‟s as at June 30, 2010

Ore Grade Contained Gold

(000 tonnes) (g/t Au) (000 oz Au)

Proven & Probable

Sabodala 24,350 1.57 1,231

Niakafiri 7,623 1.15 281

Total 31,973 1.47 1,512

Measured & Indicated

Sabodala 41,892 1.39 1,869

Niakafiri 10,741 1.12 386

Total 52,633 1.33 2,254(1)

Inferred Resources

Sabodala 7,310 1.22 287

Niakifiri 7,248 0.88 205

Niakifiri West 7,144 0.82 188

Soukhoto 566 1.32 24

Gora 387 5.60 70

Total 22,655 1.06 774(1)

30

Non-Deferred Hedge Schedule

Delivery Date Price US$/oz Ounces

18-May-2011 846.00 10,000

17-Aug-2011 846.00 18,500

17-Nov-2011 846.00 18,500

17-Feb-2012 846.00 28,000

17-May-2012 846.00 28,000

15-Aug-2012 846.00 27,500

21-Nov-2012 832.92 25,000

20-Feb-2013 832.92 25,000

17-May-2013 790.66 25,000

21-Aug-2013 791.50 16,000

Total 833.00 221,500

Note: See page 40 of the Prospectus

31

Management & Board

Alan R. Hill

Executive Chairman & CEO

• Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine

development as Executive VP of Barrick Gold

• Currently a Director of Gold Fields

• Former President and CEO of Gabriel Resources (2005 – 2009) and non-Executive Chairman of

Alamos Gold (2004 – 2007)

Richard S. Young

President & CFO

• Over 10 years experience in mining finance, development, corporate development, and investor

relations with Barrick Gold

• Former VP and CFO of Gabriel Resources (2005 – 2010)

Christopher R. Lattanzi

Director

• Mining engineer with over 20 years experience in property valuation, scoping, feasibility studies and

project monitoring on a global basis

• Currently a Director of Argonaut Gold and Spanish Mountain Gold

• Founding member and former president of Micon International (1988 – 2005)

Oliver Lennox-King

Director

• Over 30 years experience in the mineral resource industry with a wide range of experience in financing,

research and marketing

• Non-Executive Chairman of Fronteer Gold and director of CGX Energy

• Instrumental in the formation of Southern Cross Resources (1997), former President of Tiomin

Resources (1992 – 1997)

• MDL Director not standing for re-election

Alan R. Thomas

Director

• Director/Trustee and CFO of Labrador Iron Ore Royalty

• Former Director of Gabriel Resources (2006 – 2010), CFO of ShawCor (2000 – 2006), and CFO of

Noranda (1987 – 1998)

Frank Wheatley

Director

• Over 25 years experience as a director and senior officer of, and legal counsel to, a number of Canadian

public mining companies and has extensive legal and business experience in the mineral industry,

particularly in the areas of public financing, project debt financing, permitting of large scale mining

projects, and strategic mergers and acquisitions in the international minerals industry

• Currently the Executive Director, Corporate Affairs and Strategy of Talison Lithium Limited

• Currently a director of Lithic Resources Ltd. and Portal Resources Ltd.

• Former Vice-President and General Counsel of Gabriel Resources Ltd. (2000 - 2009)

• Former Vice President, Legal Affairs of Eldorado Gold Corporation