Teranga Gold Corporation: Exploration on the Mine License Produces 131 Metres at 3.45gpt Gold and 87 Metres at 3.11gpt Gold

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2011) - Teranga Gold Corporation (TSX:TGZ)(ASX:TGZ) ("Teranga" or "the Company") is pleased to provide an update of its Mine License and Regional Exploration programs through the September quarter of 2011.

Highlights:

• Exploration at the Sabodala Pit confirms the potential for higher grades in an expanded pit to depth and to the north – drilling intersected significant widths of high grade mineralization, including hole SBDH141D of 131 metres at 3.45 grams of gold per tonne ("gpt") and SBDH143D of 87 metres at 3.11 gpt included in four mineralized zones, on the Main Flat Extension just outside the current pit design – the new high grade zones remain open down plunge and to the northwest. These grades are twice the current average reserve grade of 1.5gpt at Sabodala.
• Exploration drilling at Masato confirms the extension of the Masato deposit from the neighbouring property onto the Sabodala Mining Licence – including hole SMRC051D of 49 metres at 3.59 gpt in two mineralized zones and hole SMRC055D of 64 metres at 2.45 gpt in three mineralized zones – with significant potential for further upside as the deposit remains open at depth and along strike.
• High-grade drill intersections at Gora continue to expand the potential footprint of the deposit. The deposit remains open in all directions.
• Additional high-grade drilling results were received from a second regional deposit at Toumboumba.
• Teranga plans to update reserves and resources at year end.

To view "Figure 1 – Teranga's land package – 1,488km2; 2011 Exploration Budget - $35M", please visit the following link: http://media3.marketwire.com/docs/TGZ_Figure1.pdf

To view "Figure 2 - Mine License drilling plan for 2011-2012", please visit the following link: http://media3.marketwire.com/docs/TGZ_Figure2.pdf

"We are very encouraged by both the high grades and significant widths of mineralization seen in our recent drill results on the Mine License. These results make us very confident that we will be able to double our reserves on the Mine License in 2012. Our regional exploration program is also returning very encouraging results, which we hope will set us up for a discovery over the next 12 months," said Mr. Alan R. Hill, Chairman and Chief Executive Officer.

Mine License Exploration - Figure 2

Exploration results in 2011 support management's belief of the potential to expand proven and probable reserves from 1.5 million ounces of gold to 3 million ounces of gold, at similar or better grade to the current reserve (1.5gpt) from the Sabodala Mining License ("ML") over the next 12 to 18 months. The larger reserve base is expected to result from the success of deepening the Sabodala pit to the north along the Main Flat Extension, extension of the Masato pit onto the ML, conversion of Niakafiri resources to reserves as well as adding reserves below these three large open pits. On the ML alone, this would increase the mine life to approximately 15 years at a run rate of about 200,000 ounces of gold produced annually and provide a solid production base to build on through the Regional Exploration Program. In order to increase reserves on the ML a minimum of 5 drill rigs will be testing new targets as well as converting existing resources to reserves at an estimated cost of $10 million in 2011 and at least an additional $10 million in 2012(1).

(1) While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

Highlights of drilling during the September quarter on the ML include the intersection of significant widths of high grade mineralization outside the Sabodala ultimate pit limit as part of the Main Flat Extension drill program which is expected to lead to an expansion of the final pit design and increased reserves, as well as the successful intersection and extension of the Masato deposit down dip 200 metres onto the ML.

During the September quarter Reverse Circulation ("RC") and Diamond drilling ("DD") on the ML totalled 13,000 metres from 5 drills. There are 7 drills operating on the ML at the present time (6 DD and 1 RC) and pending rig availability this number may increase to expedite resource expansion and reserve definition drilling through the December quarter and into 2012.

For full drill results from our regional exploration program please see the Company's website at http://www.terangagold.com/English/Investors/NewsReleases/NewsReleaseDetails/2011/SupplementalInformation-DrillResultsSeptember302011/default.aspx

Main Flat Extension ("MFE") – Figure 2

The Main Flat Zone is one of the principal gold hosts in the Sabodala deposit. In the southern part of the deposit this structure dips shallowly to the west, rolls flat and then rolls to a moderate northerly dip as it exits the ultimate pit. The MFE drill program is designed to test the continuity of this structure to the north beginning with in-filling holes in the deepest part of the current mine design then stepping out to the north.

Drilling targeting the MFE immediately adjacent to the current ultimate pit, at a depth of 300 metres (about 50 metres below the current design pit bottom and accessible to open pit mining), confirms the continuation of the mineralized zone with further drilling planned. The MFE remains open down plunge and to the northwest.

In the September quarter a total of 5,400 metres of drilling was completed on the MFE. Recent results include drill hole SBDH141D which appears to have cut a structural intersection in part of the hole resulting in long intervals of high grades totalling 131 metres at 3.45 gpt. Hole SBDH143D establishes continuity of mineralization cut by SBDH141D with an intercept of 87 metres at 3.11 gpt located just north of the current ultimate pit limit. In total all six holes drilled to date have intersected these high grade zones.

The goal of the MFE program is to add 250,000 ounces of gold to the open pit mineable reserves, as well as potentially a similar amount to underground reserves, in 2012(1).

(1) While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

MAIN FLAT EXTENSION: RC & DIAMOND DRILLING, AQUA REGIA RESULTS
Intercept with cut-off 0.2g/t Au and max 2m internal dilution
HOLE ID	FROM (m)	INTERSECTION1
SBDH140D	221	14m @ 1.87g/t
	254	11m @ 0.93g/t
	277	6m @ 1.20g/t
SBDH147D	151	28m @ 0.99g/t
	245	53m @ 2.03g/t
	441	7m @ 4.84g/t
SBDH141D	129	9m @ 0.82g/t
	220	25m @ 1.86g/t
	247	22m @ 1.70g/t
	303	2m @ 4.83g/t
	352	21m @ 7.28g/t
	389	6m @ 5.93g/t
	401	24m @ 3.48g/t
	430	13m @ 4.63g/t
	446	9m @ 2.09g/t
SBDH143D	208	34m @ 3.69g/t
	327	7m @ 0.78g/t
	339	27m @ 3.32g/t
	370	12m @ 1.31g/t
	418	7m @ 5.01g/t
SBDH152*	244	15m @ 5.63g/t
	262	15m @ 1.81g/t
SBDH145D* **	258	4m @ 2.00g/t
	286	7m @ 2.84g/t
SBDH138D*	323	5m @ 2.50g/t
SBDH096D	478	12m @ 0.84g/t
	507	19m @ 2.18g/t
	532	6m @ 3.40g/t

1 True widths to be determined

All assays are determined using aqua regia in the on-site SGS lab at Sabodala. Pulps are being systematically sent to Kayes, Mali for fire assay as confirmation of the Sabodala lab results.

* waiting diamond tail

** assays pending

Corridor and Ayoub's Target Area – Figure 2

Limited drilling of 1,700 metres was completed in the September quarter within the Corridor along the Ayoub's portion of the target area. The system, although low grade, is continuous and is showing Sabodala style albitic alteration to the north where the target remains open down dip and along strike. The position of the Ayoub's mineralization in the Corridor lends itself to sharing stripping for including deeper MFE mineralization into the ultimate pit. Recent results include drill hole SBDH084D with 15 metres at 1.34 gpt as well as drill hole SBDH091D with 20 metres at 2.1 gpt.

All assays are determined using aqua regia in the on-site SGS lab at Sabodala. Pulps are being systematically sent to Kayes, Mali for fire assay as confirmation of the Sabodala lab results.

Underground Mining Desktop Analysis

Teranga commissioned an engineering firm to undertake a desktop study to identify potentially suitable underground mining methods and provide stoping cost estimates for the resources outside the 2010 Sabodala ultimate pit. Results of the study are positive with approximately 200,000 ounces of material currently classified as Inferred outside of the 2010 ultimate pit now identified as potentially mineable underground. The study was based on the 2009 Sabodala resource model.

Proposed mining method is variant of Long Hole Open Stoping ("LHOS"). Flatter zones may necessitate a less mechanized approach using scrappers in stopes prior to haulage. For the preliminary analysis, a range of mining costs ($20 - $60 per tonne at the stope) were used to calculate breakeven cut-off grades.

Since the study was commissioned, Teranga has completed drilling identifying Sabodala mineralization extending more than 300 metres below the deepest zones included in the 2009 model and this desktop study. Presently, 260,000 ounces at 3.1gpt grade has been classified as Measured and Indicated outside the ultimate pit in 2.6 million tonnes. Another 240,000 ounces of Inferred material grading 3.4gpt has been classified as Inferred outside the ultimate pit in 2.2 million tonnes.

Management plans to continue advancing the level of engineering on underground mining with a goal of adding 250,000 to 500,000 ounces of underground reserves at a grade of 3 – 4 gpt to the Sabodala project in 2012(2).

(2) While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

Masato – Figure 2

The Masato deposit outcrops on the neighbouring Oromin Joint Venture Group ("OJVG") property to the east of the ML approximately 2 km from the Sabodala mill. The OJVG has defined an open pit mineable reserve of 0.5 million ounces at Masato. The deposit has a strike length of over 2 km. Gold is hosted in a shear zone that strikes north and sits immediately east of the Teranga/OJVG property boundary in the main deposit area. To the north the Masato deposit inflects and strikes to the NE away from the Teranga property boundary. To the south the Masato deposit strikes onto the Teranga ML but has not yet been drill tested.

In the September quarter a total of 6,100 metres of drilling was completed at Masato. This drilling has confirmed a mineralized strike length of 500 metres and a dip extent of 200 metres on the ML. Recent results include drill hole SMRC051D with 37 metres at 4.5 gpt as well as drill hole SMRC089D with 44 metres at 2.0 gpt. The Masato deposit remains open to depth and along strike and is currently being tested in both directions by three drills.

Management is confident that continued positive drilling results will translate to definition of mineable reserves at Masato on the ML in 2012.

Regional Exploration

In addition to the exploration program on the Company's 33km² ML, Management believes that the Regional Land Package has significant prospective potential for satellite high-grade deposits similar to Gora as we know it today, as well as the potential for world-class (+ 5 million ounces) discoveries similar to those found on the same gold belt in Mali, approximately 90km from the Sabodala mine. Therefore, Management is pursuing an extensive multi-year exploration program designed to test a number of targets that have already been identified as requiring additional analysis, as well as identify new targets for testing.

There are currently 27 targets that have been identified on the Company's 1,455km2 Regional Land Package, all within trucking distance of the mill. In total, nine of the 27 targets have been drilled, the balance are expected to be drill tested through the end of 2011 and 2012.

By the end of the September quarter the Company completed approximately 140,000 metres of Rotary Air Blast (RAB) drilling, 56,000 metres of RC and 22,000 metres of DD drilling. There are currently 11 drill rigs on the Regional Land Package. The 11 drill rigs are expected to remain throughout the December quarter at a total estimated drilling cost of approximately $25 million for the year.

Extensive RAB drilling completed to date has confirmed that a large proportion of the surface gold anomalies can be traced back to gold bearing structures in the bedrock. Thorough testing and evaluation of these structures requires RC and DD. During 2011 first pass RC and DD testing has commenced on nine of the 27 target areas identified on the Regional Land Package. Strategic road upgrades and repair of river and creek crossings was undertaken so that the exploration field work and drilling could continue during the wet season. During the December quarter the Company is also aiming to continue its resource and exploration drilling program on the Gora deposit.

For full drill results from our regional exploration program please see the Company's website at http://www.terangagold.com/English/Investors/NewsReleases/NewsReleaseDetails/2011/SupplementalInformation-DrillResultsSeptember302011/default.aspx

Gora

Initial exploration results from the Gora Project, located 22km from the Company's Sabodala gold mine confirmed a high-grade gold deposit. As a result of the exploration success to date, the Company increased its exploration budget for the Gora Project for 2011 to complete exploration drilling at depth as well as along strike as the deposit remains open in all directions. High-grade drill intersections continue to expand the potential footprint of the deposit, while a completed IP survey has revealed additional anomalies along strike of the current resource which are targeted for follow-up drilling. The Company is running a number of processes in parallel to efficiently develop Gora as quickly as possible, including the ongoing exploration program, permitting and feasibility level economic analysis with the objective of having production as early as late 2012.

Systematic evaluation drilling of the Gora Project began in early February with the following metres of drilling completed by the end of September and with recent drilling focussed on completion of a 40 x 40 metre grid pattern over the main open-pit resource area:

• In total, 237 RC and DD holes were completed for a total of 39,878 drill metres. This includes 10 holes for 4,665 meters of step-out exploration and 6,278 meters of RC drilling along strike of the known mineralisation.
• Assay results are pending for 27 holes from the resource drilling.
• At the end of September quarter, all DD rigs at Gora (5 rigs) were assigned to a program of 24 diamond holes and approximately 2,800 metres, to be drilled on a 10 metre spacing between existing holes to gather sufficient data on the geostatistical variability of the grades over distances. This data is important for improved resource estimation and eventually reserve drilling if required.

A large amount of the assay back logs started to clear with assays for 53 holes received during the September quarter. This data has now been processed and the geological model is being updated.

Drilling on the Gora deposit, where the Company has already identified an inferred resource of 100,000+ ounces of gold at 6 gpt, continues to return very high grade results. See below for the selected latest results:

This program is designed to evaluate the resource of the deposit to a vertical depth of about 130 metres along its known strike extent. Recent success from along strike drilling to the south resulted in 15 RC and DD holes for a total of 2,860 metres being added to the 40 x 40m drill pattern.

Step out exploration drilling, beyond the current systematic program described above, aims to test key structural intersections located down dip where mineralized structures are expected to intersect a major intrusive body. Out of the eleven hole program, ten holes for 3,629 meters of DD and 1,036 metres of RC have been drilled (SKDD0012 and SKRCDD67, 68, 69, 70, 85, 86, 90, 101 and 114). The deep drilling targeted the down dip and down plunge projections of the main Gora mineralised structures and their intersection with the thick felsic intrusive bodies to the east. Most of the holes successfully intersected wide zones of shearing and alteration (silica-pyrite-carbonate) at the projected target depths within the intrusive, however the gold content of those intervals was much lower than the main Gora mineralized structure. See below for the selected latest results:

For the exploration of the immediate north and south strike extensions of the Gora vein system, a 6,500 metre program of mainly RC drilling commenced in late July with 29 RC holes for 4,598 metres and 11 RC and DD holes for 1,680 metres completed on the immediate along strike trends to the north and south of Gora. The bulk of the assays for these holes are pending, but geological logging of smoky quartz, pyrite and silica alteration indicate that mineralised intervals have been intersected in many of the holes. See below for the selected latest results:

Beyond this, a minimum of 10,000 metres of RC drilling and 5,000 metres of DD drilling will be required to test the immediate strike extent of the Gora mineralized trend, nearby parallel IP anomalies and additional targets at depth. This program may commence as early as October 2011, or before if additional rigs can be sourced.

The mineralization at Gora can be tracked well beyond the boundaries used in the last resource model. The Company is working on an updated model and resource estimate. The Company will continue with trenching, RAB drilling to follow up on untested gold anomalies and structures and then perform follow-up RC and DD drilling as the results warrant. Currently, grades from Gora are at least four times our reserve grade, which may have a significant impact on the near term mill feed, potentially increasing production significantly.

Toumboumba

Toumboumba, located 10km from the Sabodala mill, is the Company's latest discovery with potential to become the second regional deposit processed through the Sabodala Mill. The new discovery, located on the Sabodala North West permit, is largely covered by a laterite plateau with little to no outcrop. The RAB program, which began in April, and was expanded to encompass the entire structural domain that may host similar styles of mineralization to the Gora deposit, has been completed with 1,150 RAB holes for 49,000 metres drilled.

Results to date have identified a series of north-south trending targets that are related to quartz veining and alteration hosted within a granitic intrusive body. As results are received additional target trends are being identified, expanding the exploration potential at Toumboumba. A large number of assays have been received during the September quarter and loaded into the database during the quarter. Some of the most significant results include:

A total of 237 of the 1,150 RAB holes returned intersections in the gold anomalous range (>0.1 gpt Au).

Based on the above results an additional four gold trends were highlighted. A total of 49 RC holes for 8,748 meters were completed over fifteen of the eighteen trends at Toumboumba. RC samples from Toumboumba were largely processed at the SGS Sabodala laboratory, where gold is determined by Aqua Regia digest and AAS finish. Some of the most significant results include:

A follow-up program of four pre-collared diamond holes for 1,015 metres of diamond tailing was completed to test the best mineralized trend identified so far. All four diamond holes intersected significant width of alteration and some zones of quartz veining. The diamond core samples were submitted to SGS Sabodala for gold determination by Aqua Regia digest and AAS finish. Some of the most significant results include:

The above intersections are related to zones of quartz veining within larger haloes of auriferous silica- carbonate-pyrite-albite alteration. Toumboumba will undergo a phase of data compilation, interpretation and 3D modelling to determine if further drill testing or evaluation for a shallow oxide resource is warranted. Gradient IP surveying for the prospect is also planned for the December quarter.

The Company continues to evaluate and target the Toumboumba mineralized trends for near surface oxide resource. Upside remains at depth, which maybe further tested after the detailed data interpretation and evaluation. If the near surface mineralization continues at depth and can be confirmed in the other target zones, Toumboumba could become a significant deposit for the Company.

Majiva

The Makana permit hosts the Majiva target, one of several prospects located along a twelve kilometre strike length between Majiva and Niakafiri on the ML. To date, a 5 kilometre strike length of gold-mineralized structure has been identified at Majiva.

Rainy season access to the eastern parts of Makana was prepared during early September. One combination DD/RC rig will be re-located shortly to continue the Majiva drill testing program. An additional RC rig has been mobilized and will also be deployed to Makana.

Interpretation of the Induced Polarization ("IP") survey indicates several zones of coincident resistivity highs and chargeability highs. A similar survey completed on the Sabodala ML in 2007 mapped the important silica-carbonate-pyrite alteration zones, along the major shear structures. The Sabodala deposit itself sits immediately to the north of such a trend. Similarly the best mineralisation at Majiva sits at the termination of such a trend. Review of the Majiva IP interpretation highlighted analogous targets and the drill testing of these will be integrated into the continuation of the RC drilling program.

Tourokhoto

Gold results for the remaining RAB samples from the drilling at Tourokhoto were received during the September quarter. This drilling produced additional anomalous intersections from the main target in the northern part of the prospect and in addition highlighted encouraging anomalous trends in the bedrock of two zones to the south east.

Some of the most significant results from the two main zones include:

Zone 1 is a large area of surface gold anomalism defined from 2011 termite mound geochemistry. It coincides with a structural intersection of the MTZ and a N070 trend.

Zones 2 and 3 sit on a NE trend paralleling the MTZ and are weak surface gold anomalies with coincident arsenic anomalism defined by recent XRF multi-element geochemistry.

All three zones highlighted by the RAB gold results to date will be subject to RC drilling in the coming dry season. Some of the other low-level, but structure related Au and Au-As anomalies will require some follow up RAB drilling. Gradient IP is planned for Zone 1 for the December quarter.

Developments at Tourokhoto, illustrate the effectiveness of our strategy of systematic RAB drilling to delineating focussed targets in the bedrock within large prospective zones of favourable geology and geochemistry.

Diegoun North ("the Donut") - Jam and Honey

The first pass RC program at Jam and Honey has been completed with 51 holes for just under 8,800 metres. In total, 40 of the 51 holes returned anomalous levels of gold above 0.5 gpt Au and the remainder returned values in the anomalous range of 0.1 to 0.5 gpt Au.

The selected intersections from Jam include:

The mineralisation at Jam is closely related to silica-pyrite-carbonate-albite alteration in granodiorite and is controlled by a series of north east trending structures interpreted from the aeromagnetics. These structures trend for several kilometres to the north-east where they connect up with the newly RAB-defined gold anomalies at Cinnamon.

An IP survey completed at Jam confirms the presence of a north-east trending structure and is awaiting final interpretation by the geophysical contractors. The RC drilling at Jam has been of a wide spaced, reconnaissance nature with lines 200 to 400 metres apart. Significant mineralised strike length between and along the mineralised structures remains untested. Data integration and refining of the structural understanding is in progress to define a follow up program of drilling for the coming dry season.

The selected intersections from Honey include:

The mineralisation at Honey is largely associated with narrow intervals of quartz veining and minor carbonate alteration hosted in sediments. The mineralisation there also aligns with north east trending structures.

RAB and RC drilling completed on the large prospective complex at Diegoun North has led to the recognition of a well developed, auriferous north east trending structure on the eastern side of the target area. This structure trends for at least 4.5 kilometres from the Jam anomaly to the newly defined RAB gold anomalies at Cinnamon. Further drilling is required to thoroughly explore this extensive gold-bearing structure. Data review and interpretation will take place over the wet season which will lead to definition of follow-up drilling programs for the coming dry season.

Dembala Hill

The Dembala Hill target has been extended to include a 4,000 metre long buried intrusive body interpreted from the aeromagnetic data set. This intrusion sits along a significant gold bearing structure which parallels the MTZ. This structure is intruded some 20 kilometres to the south by the Sambarabougou granite, which in turn is host to the 240,000 ounce Makabingui gold deposit.

The same structure host the original Dembala Hill prospect, which also produced gold mineralisation associated with a gabbro-diorite intrusion. The highlights from diamond drilling, mainly completed in the September quarter include:

Previous RC drilling in the same prospect yielded the best results from DHRC0059:

A small program of RAB lines was drilled over the roof zone of the interpreted buried intrusive with the aim of testing for associated gold anomalism and also to confirm the presence of the postulated intrusion. A total of 113 holes for 4,463 metres were drilled over four lines with an average depth of 39 metre per hole (holes were angled at 60 degrees). The buried intrusive was not intersected in this program, which is likely to be deeper down than the relatively shallow RAB drilling completed. The RAB program produced a single intersection of 2m @ 12.5 gpt Au from 4m from DBRB1066.

The ore-grade gold mineralisation was identified within the sediments, lending support to searching for a better mineralised system within the intrusive below. A program consisting of RC drilling is proposed for the coming dry season to reach a depth of at least 200 metres vertically searching for the target intrusion and to check if it contains any gold mineralisation. Should both be confirmed, a more systematic target drilling program will have to be implemented to test the potential of this intrusion.

Saiensoutou

This prospect is located on the permit of the same name, 50 km north east from the Sabodala mill, and is defined by a 2.8 kilometre long north-south trending surface gold anomaly defined from analysis of termite mound samples. The anomaly is associated with a strong arsenic response and a buried intrusive is indicated by the aeromagnetic response.

During the September quarter the anomaly was subject to a 110 RAB holes program for a total of 4,365 metres.

The results from the southernmost portion of the anomaly where the trend has a particularly well defined north-south trend are considered very encouraging.

The highlights from the RAB drilling at Saiensoutou include:

Most of the holes drilled still have assays pending.

KB

During the September quarter 298 RAB holes for 2,603 metres were completed, testing the strike extensions of the main target defined by RAB drilling and trenching. Assays are currently pending. The target defined by the historic data is scheduled for RC/DD drill testing during the December quarter. Approximately 2,500 metres of RC and DD drilling are planned for a first pass drill testing.

KC

A total of 296 RAB holes for 3,921 metres were completed during September quarter. The program was designed to provide close spaced coverage over the main zone of mineralization defined by historic work so that RC drill testing scheduled for the December quarter can be better targeted. Lines of wider spaced RAB drilling were completed along strike to the north and south. Results are currently pending. A further 1,000 metres of RAB will be required to complete the RAB coverage. Approximately 3,500 metres of RC and DD drilling are planned for a first pass drill testing.

Diadiako

A 7,000 metre first phase RC drill program commenced at Diadiako during the March quarter with a total of 28 holes for 4,087 metres completed to date. Seventeen of the RC holes returned intersections in the higher range of 0.5 gpt Au, related to a north east trending and south east dipping silica-carbonate-hematite-albite altered structure. A further eight holes returned alteration and gold bearing intervals in the 0.1 to 0.5 gpt Au range. This mineralised structure has been traced for over 1 kilometre in strike length and remains open to the north east. An IP survey is planned to help with sub-surface mapping of the alteration zones prior to planning further follow up drilling.

• During September quarter, an additional 3 diamond holes with RC pre collars were completed at Diadiako for a total of 948 metres. These holes were selectively placed to complete a first pass 200 to 400 metres spaced drill coverage over approximately 1 kilometre of strike length. All three holes intersected significant structures with alteration, brecciation and quartz veining over widths of up to 5 metres. Assays are pending and two further holes are planned for December quarter to complete this program. The rig will then be located to Goumbou Gamba or Majiva.

This update is part of the Company's $35 million exploration program planned for 2011, covering both the Mine License and Regional Land Package, representing the first phase of a multi-year exploration program to test the approximate 100 geochemical anomalies contained in 37 drill targets (10 on the Mine License and 27 on the Regional Land Package) identified to date as well as to identify new targets.

About TERANGA

Teranga Gold Corporation 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 was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa, from Mineral Deposits Limited. Management believes the mine operation, together with the Company's prospective 1,488 km² land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill.

The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali.

The Company'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.

Forward Looking Statements

Certain information contained in this report, including any information on Teranga's plans or anticipated future results, future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. Teranga cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Teranga to be materially different from the company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. These factors include the inherent risks involved in exploration, development and operations of mineral properties, changes in economic conditions, changes in the worldwide price of gold, silver fuel, electricity 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.

Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.

Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

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 Fellow 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 defined in NI43-101. Mr. Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Van Brunt is a full-time employee of Teranga and is therefore not independent.

The technical information contained in this release relating to the regional exploration is based on information compiled by Mr. Martin Pawlitschek, who 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 defined in NI43-101. Mr. Pawlitschek has consented to the inclusion of this information in the form and context in which it appears in this release. Pawlitschek is a full-time employee of Teranga is therefore not independent.