Teranga Gold Reports Second Round of Positive Drill Results at Sabodala Mine

TORONTO, ONTARIO--(Marketwired - Apr 3, 2017) - Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) is pleased to announce the second round of results from its ongoing 115-hole drill program at its Niakafiri deposit, situated within 5 kilometres of the mill on the Company's Sabodala mine license in Senegal, West Africa.

HIGHLIGHTS

• Drill results from the first 60 holes at the Company's Niakafiri deposit extend the mineralisation along strike and at depth, providing potential for re-optimization of the life of mine plan.
  
  
• Positive drilling success in the Niakafiri Main zone includes the following highlight intervals from the 33 holes released today representing some of the widest mineralised intervals encountered within the Niakafiri deposit to date:
  
  
  • 4.18 g/t Au over 23 metres including 6.52 g/t Au over 12 metres in MDD17-279
  • 2.99 g/t Au over 33 metres including 4.23 g/t Au over 17 metres in MDD17-277
  • 2.41 g/t Au over 29 metres including 6.51 g/t Au over 6 metres in MDD17-281
  • 3.19 g/t Au over 21 metres at the end-of-hole in MDD17-284
    
    
• Results from the first 27 holes were released February 27, 2017 and include:
  
  
  • 6.90 g/t Au over 8 metres including 45.5 g/t Au over 1 metre in MDD17-242
  • 2.45 g/t Au over 17 metres including 3.25 g/t Au over 11 metres in MDD16-235
  • 1.89 g/t Au over 12 metres including 5.25 g/t Au over 3 metres in MDD17-239

"The drill results confirm our belief that there is considerable opportunity to extend the mineralisation both along strike and to depth at Niakafiri," said Paul Chawrun, Chief Operating Officer of Teranga. "These encouraging results could result in the re-sequencing of Niakafiri in the current mine plan, filling in the production gaps at Sabodala to extend the life of open pit mining and to defer the start of underground mining."

"We are very pleased with our most recent results, which represent some of the widest mineralised intervals encountered within the Niakafiri deposit to date," stated David Mallo, Vice President Exploration of Teranga. "Our drill program at Niakafiri will continue to focus on extending the mineralisation along trend and to-depth."

Since re-initiation of this program with one (1) drill in late 2016, the Company has increased the number of drills to four (4). The current phase of the Niakafiri drill program, 115 proposed core holes totaling 12,000 metres, is ongoing at both the eastern and western components of the Niakafiri deposit (see Figure 2 in Appendix 1). Drill results received to date will be included in a mid-year resource and reserve update. The balance of the current year program will be included in a year-end resource and reserve update.

The majority of the Niakafiri deposits were delineated at the inception of the Sabodala project in 2009 and they represent a combined measured and indicated resource of approximately 600,000 ounces, an inferred resource of approximately 220,000 ounces and reserves of over 300,000 ounces⁽¹⁾ included within the total resource estimate (see Tables 1A and 1B in Appendix 1). The Niakafiri deposits are within 5 kilometres of the Sabodala mill (see Figure 1 in Appendix 1).

Niakafiri East

The results received to date from the eastern portion of the Niakafiri deposit drilling (see Figure 2 in Appendix 1) are encouraging. They fill in gaps between previously outlined resource pit shells, extend mineralisation up-dip in a number of areas of the deposit and fill in previous widely spaced drill intersections.

In addition, there have been positive results from a set of drill holes targeting the down-dip depth extent of the existing reserve and resource pit shells in the central portion of Niakafiri Main (Table 1 on the next page highlights many of these results). These deep mineralised intersections extend as far as downhole to 270 metres (approximately 200 metres below surface), and are the deepest intersected at Niakafiri Main to date, with mineralisation remaining open at depth. Examples of this down-dip drilling success in central Niakafiri Main are shown in two representative drill sections as Figures 3 and 4 in Appendix 1.

The most advanced portion of Niakafiri is the eastern component - Niakafiri Main, Niakafiri Southeast and Dinkokono - where the first phase of planned drill holes is now complete. A second phase drill program will follow-up on these successful initial drill results focusing primarily in the vicinity of the wider mineralised intervals in the central portion of Niakafiri Main.

Niakafiri West

In addition to the ongoing drill program on Niakafiri East, drilling has begun on the western component of the resource - Niakafiri West and Soukhoto. The objectives at Niakafiri West are to upgrade the resource categories from inferred to indicated, and potentially to fill in the current gap of approximately 1.5 kilometres extending northwards towards known mineralisation at Soukhoto. An additional phase of drilling will be undertaken based on interpretation of the results from the current program.

Pending further favourable results at Niakafiri, the Company expects to evaluate the impact on pit sequencing in the life of mine plan and the timing of village relocation.

Table 1: Niakafiri Drilling Highlights*

A listing of the more favourable Niakafiri deposit drill hole intersections, being reported in this news release, is outlined in the following table. A complete listing of all the significant intersections for the 33 new drill results is included in Table 2 in Appendix 1. A complete listing of all significant results from the first 60 holes of the Company's extensive drilling program at the Niakafiri deposit is available at www.terangagold.com.

*Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N.

** Drill hole ends in mineralisation.

Endnotes

(1) Proven and Probable reserves of 8.95 Mt at 1.09 g/t for 314 Koz (see Table 1A in Appendix 1).

Competent Persons Statements

The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. William Paul Chawrun, P. Eng who is a member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Chawrun is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. However, he is a "Qualified Person" as defined in NI 43-101. Mr. Chawrun has sufficient experience which is relevant to the style of mineralisation 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. Chawrun is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chawrun has consented to the inclusion in this Report of the matters based on his compiled information in the form and context in which it appears in this Report.

The technical information contained in this Report relating to mineral resource estimates for Niakafiri is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. 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 mineralisation and type of deposit under consideration and to the activity which she 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". 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 mineralisation 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.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga's future growth, 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 "potential", "belief", "believe", "expects", "potential" or "potentially", "estimates", "estimated", "plans", trends", "anticipated", "ability" and similar expressions or statements that certain actions, events or results "could", "should", "would", or "will" have been used to identify such forward looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking statements. 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 governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, the ability to resettle the community within anticipated timeline, 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, 2017, 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. All references to Teranga include its subsidiaries unless the context requires otherwise.

About Teranga

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000km² of land located on prospective gold belts.

Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal. Following its recent acquisition of Gryphon Minerals, the Company is fast-tracking the completion of a feasibility study for the Banfora Project. Concurrent with its production and development activities, exploration programs are underway to seek to increase the Company's reserve base through resource conversion and making new discoveries. Teranga has a strong balance sheet and the financial flexibility to continue to grow its business.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a member of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report. The Company's 2015 responsibility report, which is available at www.terangagold.com/2015responsibilityreport, is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.

APPENDIX 1

To view Figure 1: Map of Sabodala Mine License please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-1.jpg

To view Figure 2: Plan Map - Niakafiri Drilling Area please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-2.jpg

To view Figure 3: Representative Drill Section - Niakafiri Main NNE Section 440 N please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-3.jpg

The 2017 drill holes targeted potential mineralisation extensions below the current resource and reserve pit outlines. As demonstrated, MDD17-0277 has successfully intersected very good grades over extensive widths, as targeted.

To view Figure 4: Representative Drill Section - Niakafiri Main: Section 560 N please visit the following link: http://media3.marketwire.com/docs/1090765_Figure-4.jpg

The 2017 drill holes targeted potential mineralisation extensions below the current resource and reserve pit outlines. As demonstrated, MDD17-0279 has successfully intersected very good grades over extensive widths, as targeted.

Notes for Mineral Reserves Summary

1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserve cut off grades range from 0.35 g/t to 0.63 g/t Au for oxide and 0.42 g/t to 0.73 g/t Au for fresh based on a $1,100/oz gold price
3. Sum of individual amounts may not equal due to rounding.
4. The Niakafiri Main deposit is adjacent to the Sabodala village and relocation of at least some portion of the village will be required, which will necessitate a negotiated resettlement program with the affected community members.

There have been no material changes made to these mineral reserve estimates since December 31, 2015, except for the depletion of reserves due to production over 2016. All material assumptions and technical parameters previously disclosed continue to be applicable. The Company plans to update its mineral reserve and resource estimates in 2017.

Notes for Mineral Resources Summary

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. Underground Mineral Resources are estimated at a cut-off grade of 2.00 g/t Au.
5. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au.
6. The figures above are "Total" Mineral Resources and include Mineral Reserves.
7. Open pit shells were used to constrain open pit resources.
8. Mineral Resources are estimated using a gold price of US$1,450 per ounce.
9. Sum of individual amounts may not equal due to rounding.

There have been no material changes made to these mineral resource estimates since December 31, 2015, except for the depletion of reserves through production over 2016. All material assumptions and technical parameters previously disclosed continue to be applicable. The Company plans to update its mineral reserve and resource estimates in 2017.

*Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N

** Drill hole ends in mineralisation

*Intervals calculated using a 0.4 g/t Au cut-off and 2 metres maximum internal dilution. True widths are unknown and intercept gold values are determined from uncapped assays. UTM Coordinates are WGS84 30N

APPENDIX 2

JORC Code, 2012 Edition - Table 1 Report

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)