Teranga Files New Sabodala Technical Report

TORONTO, ONTARIO--(Marketwired - Oct. 10, 2013) - Teranga Gold Corporation ("Teranga") (TSX:TGZ) (ASX:TGZ) today announced that the Company has filed a National Instrument 43-101 compliant Sabodala Technical Report on Sedar (www.sedar.com). Teranga previously outlined a revised mine plan for Sabodala on September 19, 2013 and this Technical Report provides the basis for this plan.

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.

Richard Young, President and Chief Executive Officer, stated that, "On a standalone basis this plan allows us to generate significant free cash flows over the coming three years. We are looking to augment this plan once an agreement is reached with our partners in the Oromin Joint Venture (OJVG). The OJVG satellite deposits are located adjacent to Sabodala and have an estimated 1.45 Moz in open pittable reserves. While a mine plan combining the OJVG material will be transformational on all financial and operating metrics, the revised standalone mine plan demonstrates the strength of our current operations and provides the basis for further growth."

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 the OJVG satellite deposits.

"With the completion of the Oromin acquisition, we are now focused on working together with our joint venture partners to come to an agreement to process the OJVG ore through our mill. We see tremendous opportunity in this prolific, mining-friendly region and feel very fortunate to have a state of the art process facility, the only one in the country", said Alan R. Hill, Executive Chairman of the Company.

Key milestones expected through the fourth quarter 2013 as announced recently by the Company:

• Filing the Mine Plan on a standalone basis (43-101 Technical Report);
• Completion of the 100% acquisition of Oromin Explorations Ltd.;
• Reiterated original guidance:
  • Production is expected to be at the higher end of the guidance range of 190,000 to 210,000 ounces while total cash costs are expected to be at the lower end of the guidance range of $650 to $700 per ounce;
• Continuing to work with our joint venture partners to agree on development of the OJVG deposits;
• Continuing to work with the Senegalese Government on the integration process of the OJVG Golouma project with Sabodala; and
• Completion of the consolidated mine plan integrating the OJVG Golouma project, as well as a combined reserve update which the Company expects to release with its year-end 2013 results.

¹ This production target is based on existing proven and probable reserves only.

FORWARD LOOKING STATEMENTS

This news release contains certain statements that constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, "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 the gold industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about, among other things, future economic conditions and courses of action. The words "poised", "gives", "expect", "its vision", "plan", "support", "assist", "commit to", "will not", "intend", "intends to" and similar expressions identify forward looking statements. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. 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: economic market conditions, anticipated costs and expenditures, government approvals, and other risks detailed from time to time in Teranga's filings with Canadian provincial securities regulators. Forward-looking statements included herein are based on Teranga 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., MAusIMM (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 estimate 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 estimate 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 estimate for Sabodala 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.