Teranga Gold Corporation
TSX : TGZ
ASX : TGZ

Teranga Gold Corporation

February 23, 2015 06:00 ET

Teranga Gold Provides First Exploration Update for 2015

Reports New Discovery Area on Mine License at Masato NE

Begins Drill Program on Mine License, With Objective to Convert High-Grade Resources to Reserves, While Concurrently Pursuing Large Scale Potential on Its Regional Land Package

TORONTO, ONTARIO--(Marketwired - Feb. 23, 2015) - Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) provided an update on exploration activities conducted in the fourth quarter of 2014.

"We are pleased with the early exploration success we are having on the OJVG property we acquired last year," commented Richard Young, President and Chief Executive Officer of Teranga. "While much work remains to be done, the geology and mineralization at Masato NE, our newest discovery area on the mine license, is similar to and situated just one kilometre to the northeast of Masato, our largest deposit. We will continue to prudently explore this area, which is located only four kilometres from our mill."

HIGHLIGHTS OF FOURTH QUARTER 2014 EXPLORATION RESULTS

Mine License

  • During the fourth quarter Teranga began a multi-year reserve development and exploration program on the mine license to convert some of the 5.7 million ounces of Measured and Indicated Resources, inclusive of 2.3 million ounces Proven and Probable Reserves (excluding Gora Reserves of 280,000 ounces) and 2.35 million ounces of Inferred Resources to reserves, as well as, make new discoveries on the mine license.

  • High-grade mill feed and low-grade heap leach feed is being targeted on the mine license, which should allow the Company to further increase production toward its Phase 1 organic growth target of 250,000 to 350,000 ounces of annual production, an increase of about 50 percent from current production levels.(1)

  • Extension of the Masato style bulk tonnage gold trend showed potential to be extended by over 2 km with the discovery of Masato NE. Both the Golouma and Kerekounda high-grade deposits were targeted to determine the potential for conversion of high-grade resources to reserves.

  • The Golouma and Masato NE results are very encouraging and work is continuing on these two prospective targets on the mine license (see Figure 1).

  • While the focus during the fourth quarter of 2014 centered on two high-grade deposits scheduled to come into production over the next few years and one large exploration target, there exists significant potential over many prospects in various stages of exploration development (see Figure 1).

Regional Land Package

  • Work continued through the fourth quarter on the regional land package for high-grade satellite feed for the Sabodala mill and new standalone discoveries as part of the Company's Phase 2 organic growth target of 400,000 to 500,000 ounces of annual gold production.(2)

  • The focus today in the current gold price environment is on the mine license and our Phase 1 vision and, as a result, we are methodically and systematically evaluating our regional targets in a measured way to conserve capital.

  • Ultimately, we believe that a number of discoveries on this emerging gold belt will be made in the coming years, similar to the eastern portion of this belt in Mali where more than 40 million ounces have been discovered including several world-class deposits (5 million plus ounces).

  • Results from the two areas of focus in the fourth quarter continued to improve our knowledge of these large and prospective areas.

New Discovery Area: Masato NE

  • A surface trenching program completed in the fourth quarter of 2014 revealed a 2 km continuous shear zone approximately 1 km north of the Masato deposit (see Figure 2).

  • Significant gold assay results from channel samples in these trenches were concentrated along an 800 m trend in the northern section of the Masato NE shear (see Table 1).

  • A 26 hole diamond drill program began in late December 2014 to follow up on the mineralization potential at depth in this area.

  • Core assays are pending, however, core logging of these first ten holes reveals continuation of the shear zone at depth and in down hole widths of up to 30 m.

  • The results for Masato NE are encouraging for the following reasons:

    1. trenching identified a significant shear system in terms of both length (2 km) and width (up to
      60 m);

    2. the type of mineralization is similar to Masato located 1 km away; and

    3. the shear system identified at surface continues at depth with good alteration widths of up to
      30 m.

Golouma NW Extension

  • A diamond drilling program began in the fourth quarter of 2014 to determine the extent of mineralization of previously classified inferred resources north of the existing pit limits of the high-grade Golouma reserves (see Figure 3).

  • Results of the drill program revealed concentrated high-grade intercepts along several northwest trending shear zones (see Table 2).

  • Detailed resource modeling and follow up infill drilling is planned in this area for 2015 to determine the extent of potential increases to Golouma reserves.

  • Additional drilling is currently ongoing to determine the extent of gold mineralization at the intersection of these NW trending shear zones and a NE trending shear zone (see "Phase 2" area in Figure 3 and Figure 4) as a follow up to a significant intercept in hole 48 (see Table 2).

  • The high-grade Golouma deposit is scheduled to come into production over the 2016/2017 period, as a result this deposit impacts near-term cash flows which makes this program a priority.

Kerekounda

  • Since Kerekounda is scheduled for mining in 2016, a small drilling program to test the potential for mineralization to the south of the existing reserves pit was conducted in the fourth quarter of 2014 (see Figure 5).

  • Assay results will be interpreted and incorporated into the existing resource model, however, we do not expect a material increase in reserves at this deposit (see Table 3).

FOR DETAILED MAPS, DRILL RESULTS AND TECHNICAL INTERPRETATION OF FOURTH QUARTER EXPLORATION HIGHLIGHTS, PLEASE SEE BELOW.

MINE LICENSE

To view "Figure 1: Mine License" please visit: http://media3.marketwire.com/docs/993309fig1.pdf

MASATO NORTHEAST

To view "Figure 2: Masato NE Trenching and Drill Program" please visit: http://media3.marketwire.com/docs/993309fig2.pdf

Table 1: Masato NE Trench Assay Highlights

Trench intersections, >0.2 g/t Au with max 2m internal dilution/no external dilution
Trench ID Intercept Values
SOMTR0019 7m @ 2.01 g/t
including 4m @ 3.19 g/t
SOMTR0026 6m @ 5.60 g/t
including 3m @ 10.71 g/t
3m @ 14.07 g/t
including 1m @ 39.30 g/t
4m @ 23.10 g/t
including 1m @ 91.40 g/t
SOMTR0035 3m @ 2.07 g/t
SOMTR0039 7m @ 3.79 g/t
including 2m @ 10.45 g/t
and including 1m @ 4.22 g/t
SOMTR0040 5m @ 5.22 g/t
including 2m @ 3.80 g/t
and including 1m @18.00 g/t
Notes: Channel samples taken along horizontal intervals at consistent height above trench floors. True widths are unknown. Intercept gold values are composited from 1m length uncapped assays. The above table represents highlights, a dataset of full results are provided on the Teranga Gold website at http://www.terangagold.com/.

Masato NE: Interpretation

The Masato NE prospect is situated along a northeast trending structural splay off the main Masato structural trend, approximately 2 km at surface and located 1 km northeast of the Masato deposit. The prospect coincides with soil anomalies along part of its strike length and high-grade samples taken from artisanal workings in the north end. An exploration trenching program commenced at Masato NE during the third quarter of 2014 and was completed in January 2015.

Twenty-four trenches totaling 4,461 m were completed across the prospect. Detailed trench mapping and sampling successfully confirmed the interpreted northeast trend and extents of the shear zone. These trenches intersected a 30 m to 60 m wide shear zone variably trending 20° to 60° azimuth across a 2 km strike length. The shear zone is comprised of weakly to strongly sheared and altered oxidized volcanics, unaltered and altered felsic and mafic intrusives with 2 cm to 60 cm quartz veins. The quartz veins are locally folded and trend approximately parallel to the shear trend, with dip measurements at surface averaging -50° to -85° to the west-northwest.

Narrow quartz veins from 2 cm to 10 cm were intersected outside of the main shear zone in a parallel shear zone to the west. To the east of the main shear zone, 6 cm to 25 cm quartz veins trending north-northeast and dipping -55° to -70° to the west-northwest were intersected in oxidized fractured volcanics. At the east margin of the shear zone, a 40 cm to 50 cm quartz vein trending east-west was intersected and coincides with a soil anomaly.

All trench assay results confirm the location and source of the soil anomalies. The anomalous gold grades are associated with quartz veining in strongly sheared and siliceous, carbonate altered volcanics inside the main northeast shear zone and in adjacent parallel shears, as well as in oxidized fractures in unaltered to weakly altered volcanics.

A twenty-six hole diamond drilling program commenced in December 2014 and is ongoing as of February 2015. To date, a total of 2,013 m has been drilled in ten holes to follow-up on anomalous trench results intersected in the northern part of the shear zone. Core assay results are pending. However, core logging to date has identified sheared and altered volcanics with quartz-carbonate-tourmaline veins located within 60 m below surface, down dip to the west from oxidized shear zones intersected in surface trenches.

All assay results are expected by the start of the second quarter of 2015 and will be followed by additional work including data interpretation and modeling to define areas for further trenching and drilling.

GOLOUMA NW EXTENSION

To view "Figure 3: Golouma NW Exploration" please visit: http://media3.marketwire.com/docs/993309fig3.pdf

To view "Figure 4: Section View of Golouma NW" please visit: http://media3.marketwire.com/docs/993309fig4.pdf

Table 2: Golouma NW Drilling Highlights

DDH intersections, >0.2 g/t Au with max 2m internal dilution/no external dilution
HOLE ID UTM28N East UTM28N North Azimuth Dip Downhole Depth (m) Intercept Values (core length @ g/t Au) Estimated True Width (m)
SOMDD0026 814,702 1,453,850 234 -51 10.00 12m @ 3.66 g/t 8.0
including 15.00 3m @ 8.44 g/t 2.0
and including 19.00 2m @ 5.49 g/t 1.4
SOMDD0035 814,645 1,453,962 221 -53 106.00 5m @ 2.23 g/t 3.2
115.00 9m @ 1.57 g/t 5.5
including 115.00 1m @ 8.38 g/t 0.7
SOMDD0036 814,674 1,453,956 221 -50 131.00 5m @ 20.81 g/t 3.5
including 131.00 2m @ 33.20 g/t 1.4
141.00 8m @ 7.31 g/t 5.5
including 146.00 3m @ 16.50 g/t 2.0
SOMDD0037 814,695 1,453,938 214 -50 124.00 4m @ 4.15 g/t 2.7
including 125.00 1m @ 14.85 g/t 0.8
SOMDD0039 814,747 1,453,887 231 -50 146.00 3m @ 4.80 g/t 2.3
SOMDD0048 814,462 1,454,052 112 -50 61.00 13m @ 4.61 g/t 10.0
including 62.00 9m @ 6.36 g/t 7.0
Notes: Reported widths are estimated true widths. Intercept gold values are composited from 1m length uncapped assays. The above table represents highlights, a dataset of full results are provided on the Teranga Gold website at http://www.terangagold.com/.

Golouma NW: Interpretation

The Golouma NW zone is located 200 m to 500 m north of, and sub-parallel to, the Golouma West reserves (see Figure 3). The area is dominantly covered by massive and pillowed mafic volcanics intersected by shear zones trending west-northwest and north-northeast.

Northwest trending mineralized zones were previously delineated with limited drilling down dip and are currently classified as Inferred Resources. Gold mineralization is associated with 2 m to 10 m wide shear zones vertically or steeply dipping to the south, and extend approximately 350 m along strike and 100 m down dip. Anomalous gold grades are associated with weak to strong shearing, carbonate-sericite-silica alteration and local quartz-carbonate-tourmaline veining with visible gold (see Table 2 for a summary of key assay results).

A 15 m to 45 m wide shear structure trending 250 m north-northeast and dipping west is located to the west, and adjacent to, the northwest trending mineralized zones. Anomalous gold values were previously intersected in surface trenches and are associated with strongly sheared and altered mafic volcanics with quartz veining.

A twenty-six hole diamond drilling program was completed in the fourth quarter of 2014. A total of 3,100 m were drilled to infill and confirm continuity of the northwest trending mineralization, to follow-up on north-northeast trending shear zone mineralization and to test the north extent of the Golouma West 18900 zone located immediately to the south. This phase of drilling has intersected the shear zone below surface with gold mineralization at the footwall contact. Additional limited surface trenching and drilling intersected a similar shear structure 250 m along strike to the north.

Eighteen of these holes were drilled to infill the northwest trending zones. Drilling in the east portion successfully intersected the identified shear zones and returned anomalous gold values associated with strong shearing and alteration, quartz-carbonate-tourmaline veins and visible gold. Holes drilled in the west portion and to the east of these zones intersected weak shearing with either low gold grades or no gold values. Data interpretation and remodeling are ongoing to define targets for further infill drilling.

Drill hole 48 targeted the intersection with the north-northeast shear while Drill hole 49 targeted to test mineralization in the wide north-northeast shear. Mineralization was successfully intersected in sheared and altered mafic volcanics with quartz veining at the footwall contact of the shear zone (see Figure 4). Data compiled to date indicates potential for extending mineralization which remains open to the north, south and at depth. A second phase of drilling is currently ongoing to further test the potential mineralization associated with this significant structure.

Seven of these holes were drilled to test the north extent of the Golouma West 18900 zone. Drilling intersected a weakly defined shear zone, which appears to be truncated at the north end by a northwest trending structure identified in surface trenching. No further work is planned in this area.

KEREKOUNDA

To view "Figure 5: Kerekounda 2014 Exploration Program" please visit: http://media3.marketwire.com/docs/993309fig5.pdf

Table 3: Kerekounda Drilling Highlights

DDH intersections, >0.2 g/t Au with max 2m internal dilution/no external dilution
HOLE ID UTM28N East UTM28N North Azimuth Dip Downhole Depth (m) Intercept Values (core length @ g/t Au)
SOMDD0055 815,497 1,454,407 90 -49 82 3m @ 5.32 g/t
including 82 1m @ 14.55 g/t
SOMDD0056 815,494 1,454,382 90 -49 94 3m @ 2.40 g/t
including 94 2m @ 3.45 g/t
SOMDD0057 815,468 1,454,406 91 -50 119 3m @ 1.74 g/t
including 119 1m @ 2.54 g/t
and including 121 1m @ 2.57 g/t
SOMDD0059 815,516 1,454,428 90 -49 38 3m @ 21.59 g/t
including 39 1m @ 62.20 g/t
Notes: True widths are unknown at this time. Intercept gold values are composited from 1m length uncapped assays.
The above table represents highlights. A dataset of full results are provided on the Teranga Gold website at http://www.terangagold.com/.

Kerekounda: Interpretation

The Kerekounda deposit is located approximately 1.5 km to the north of the Golouma South deposit, within the same east-northeast structural trend that hosts Golouma area mineralization. The deposit is hosted by weakly to moderately deformed mafic volcanics, similar to the host rocks at Golouma.

Kerekounda mineralization is hosted in three shear zones located between two north-northeast trending regional structures, interpreted as curvilinear splays from the larger Golouma-Kerekounda shear zone to the east. Mineralization zones trend northwest and dip 50° to 70° southwest. Previous drilling has defined mineralization over a 300 m strike length and 400 m below surface.

Mineralization is associated with 1 m to 10 m wide shear zones that include quartz-carbonate veins within carbonate dominated alteration. The highest gold grades are associated with the larger veins or higher percentage of quartz veins, especially those containing tourmaline, strong shearing and alteration, and the presence of visible gold.

An eleven hole diamond drilling program was completed in the fourth quarter of 2014. A total of 1,200 m were drilled to test the extent of mineralization within 150 m along strike to the south and up dip in oxide where previous limited drilling returned anomalous results in fresh rock.

Drilling intersected narrow discontinuous mineralized intervals associated with sediment-volcanic contacts, minor quartz veins in sediments and weakly altered and sheared volcanics. The oxide layer is thickening to the south and mineralized shear zones show weaker alteration and shearing. Data compilation is ongoing to determine the need for further drilling in this area.

REGIONAL EXPLORATION

To view "Figure 6: Regional Exploration - Key Prospects for 2015" please visit: http://media3.marketwire.com/docs/993309fig6.pdf

The Company currently has nine exploration permits encompassing approximately 1,055km² of land surrounding the Sabodala and OJVG mine licenses (246km2 exploitation permits). Over the past 4 years, with the initiation of a regional exploration program on this significant land package, a tremendous amount of exploration data has been systematically collected and interpreted to prudently implement follow-up programs. Targets are therefore in various stages of advancement and are then prioritized for follow-up work and drilling. Early geophysical and geochemical analysis of these areas has led to the demarcation of at least 50 anomalies, targets and prospects and the Company expects that several of these areas will ultimately be developed into mineable deposits. This is based on gold soil anomalies overlaying regional scale 1st, 2nd and 3rd order shear structures which play an important part in the localization of major gold deposits elsewhere in the Kedougou-Kenieba inlier. The Company has identified some key targets that, though early stage, display significant potential. However, due to the sheer size of the land position, the process of advancing an anomaly through to a mineable deposit takes time with a systematic approach to maximize potential for success.

The exploration team uses a disciplined screening process to optimize the potential for success in exploring the myriad of high potential anomalies located within the regional land package.

During the fourth quarter two key targets were the primary areas of focus: detailed geochemical testwork at the Nienienko prospect and continuation of diamond drilling at the Soreto prospect. An outline of the key regional prospects in focus for Teranga for 2015 is shown in Figure 6.

SORETO

To view "Figure 7: Soreto Prospect - Drilling Area and Artisanal Workings" please visit: http://media3.marketwire.com/docs/993309fig7t.pdf

To view "Figure 8: Soreto Prospect - NW-SE Section Facing NE" please visit: http://media3.marketwire.com/docs/993309fig8t.pdf

Table 4: Soreto Prospect - Summary of Significant Gold Intercepts

Drill hole significant intercepts, >=0.5 g/t Au with max 2m internal dilution/no external dilution
HOLE ID UTM29N East UTM29N North Azimuth Dip Interval Start (m) Intercept Values (Downhole length @ g/t Au)
HKDD0002 185233.6 1487666 305 -55 30 3m@2.08g/t
70 6.5m@1.38g/t
128 1m@3.22g/t
64 1m@1.61g/t
83.5 0.5m@54.9g/t
91 1m@12.25g/t
HKDD0008 185469.1 1487713 305 -55 15 1m@7.64g/t
77 1m@3.07g/t
HKDD0009 185406.2 1487358 305 -55 75 2m@2.52g/t
HKDD0010 185272.2 1487454 305 -55 96 3m@1.47g/t
HKDD0011 185297.5 1487807 305 -55 57.5 2.5m@2.78g/t
HKDD0015 185496.8 1487473 295 -55 106 4m@1.6g/t
-55 131 3m@1.63g/t
HKDD0019 184818.8 1488367 305 -55 81.5 2.5m@6.41g/t
121 2m@1.2g/t
Notes: Reported widths are estimated true widths. Intercept gold values are composited from 1m length uncapped assays. The above table represents highlights. A dataset of full results are provided on the Teranga Gold website at http://www.terangagold.com/.

Soreto: Interpretation

The Soreto prospect is located in Mako Group volcano-sedimentary sequences comprised of volcanoclastics, siltstones, greywacke and mudstones which have been intruded by granite, quartz-feldspar porphyries, granodiorite, gabbro and quartz-monzodiorite to form plugs and dykes. Airborne magnetic data indicates that the units are isoclinally folded with fold axis trending northeast and east-northeast. The sequences have also undergone upper greenschist grade metamorphism.

The gold mineralization, which is often visible, is associated with quartz-carbonate veins occurring in shear and breccia zones developed in the sediments and felsic intrusives. These zones range in width from 2 m -15 m and are characterized by intense K-feldspar-albite-sericite alteration and micro-fracturing, pyrite and trace amounts of chalcopyrite are present in both mineralized and unmineralized samples. The occurrence of the quartz veins and gold mineralization appear to be controlled by north and north-northeast trending structures, dipping both moderately and steeply to the southeast (50 - 70 degrees). Conjugate northwest southeast trending structures with associated gold mineralization have also been observed. These structures are interpreted as being related to regional shear and thrust zones. Gold mineralization also appears to be closely associated with the presence of quartz-feldspar porphyry dykes.

During 2013, 5 diamond drill holes (DDH), totaling 826 m were drilled on a single fence line covering a large northeast-southwest trending soil gold anomaly (see Figure 7).

Following up on the 2013 drill campaign a 16-hole DDH program totalling 3,200 m was completed during the third quarter of 2014. An additional 12 holes were planned in the fourth quarter and primarily completed in 2014 with the remainder being finalized during early 2015. Drill fence lines were placed approximately 200 m on either side of the 2013 DDH drill fence lines. Two holes were also drilled southwest of the 2013 fence line to confirm the orientation and continuity of the gold mineralization intersected in 2013 drilling campaign (see Figure 7).

Several zones with the characteristic brecciation, alteration and quartz-carbonate veining associated with gold mineralization were intersected in the drill holes with some of these zones containing visible gold. A summary significant intercepts for the holes are shown in Table 4. A typical type section of the geology and gold mineralized zones is shown in Figure 8.

The gold in soil anomalies suggest that the zones of gold mineralization intersected in the drill holes extends to the northeast and southwest, over a total strike length in excess of 4 km. All awaited assays are expected to be received by mid-March 2015.

An extensive trenching program is planned in the first quarter of 2015 to test the structural and mineralization extension further to the northeast based on the termite and soil anomaly, after which justification for an additional drilling campaign will be evaluated.

NIENIENKO

To view "Figure 9: Nienienko Prospect" please visit: http://media3.marketwire.com/docs/993309fig9t.pdf

Nienienko: Interpretation

The Nienienko prospect is located approximately 40 km northeast of the Sabodala mine. The area is underlain by Mako Group volcano-sedimentary sequences comprised of mafic volcanics and volcanoclastics which have been intruded by granite, quartz-feldspar porphyries, granodiorites and diorite dykes. The prospect occurs within the same shear trend as Sabodala.

An extensive mapping and 1,500 m trenching program was undertaken during the second and third quarters of 2014. This work outlined a 500 metre-plus wide zone with gold mineralization occurring in flat-lying, near surface (0 - 2 m) quartz veins and felsic breccia units occurring over a strike length of 1,500 m, (Nienienko Main). At Nienienko Main the mineralization is structurally controlled and associated with near surface flat lying quartz veins and brecciated felsic rocks which coincide with NNE and NE shear zones and thrusts.

Due to the extent of geochemical anomalies outlined to the west of Nienienko Main, it was determined that further work would be required over the span of the entire Nienienko prospect prior to embarking on a drill program in the Nienienko Main area. A detailed geochemical soil sampling program commenced in the fourth quarter of 2014 to follow up and test co-incident gold-molybdenum-copper and potassium anomalies identified by an earlier regional termite mound sampling program to the west of the Nienienko Main. A total of 6,082 soil samples were collected and sent to ALS Johannesburg in South Africa for analysis.

The sampling program (see Figure 9) was completed in January 2015 and to date approximately 70% of the results have been received. Preliminary results have outlined anomalous gold in soil values coinciding with shear zones following the north-northeast regional scale structural trend which is host to other gold deposits in the region. Rock chip samples collected from several of the shear zones yielded elevated gold values. The shear zones are 10 m - 20 m in width and characterized by quartz veining and gossan development with quartz-carbonate alteration. These zones and other gold soil anomalies will be tested by trenching programs in March 2015 with a possible follow-up DDH program later in 2015.

(1)This production target is based substantially on existing proven and probable reserves but also assumes that one-third or more of existing measured and indicated resources are processed in this scenario. The ore reserves and mineral resource estimates underpinning this production target have been prepared by a competent person or persons in accordance with the requirements of the 2004 and 2012 editions of the JORC Code.

(2)This production target was previously reported by the Company on October 31, 2014 in its Third Quarter 2014 Management Discussion & Analysis (page 2). All material assumptions underpinning the production target in the initial report continue to apply and have not materially changed. Given this production target is based upon an exploration target, it must be noted that the potential quantity and grade of an exploration target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realized.

QUALITY ASSURANCE/QUALITY CONTROL

Teranga has established standard operating procedures for sampling, transportation, sample preparation, analysis and security of RC, diamond drill core and trench samples that are appropriate for gold mineralization and follow industry standards.

All drill core samples were cut in half at the on-site exploration core facilities using a diamond saw, with half core samples transported in securely sealed bags for preparation and analysis. Prospective mineralized core samples from Golouma NW and Soreto, and all Kerekounda core samples were sent to the ALS facilities in Johannesburg, South Africa. ALS is accredited to the ISO/IEC 17025 Standard by laboratory accreditation number T0387. Core samples were analyzed for gold using fire assay with an atomic absorption finish on a 50 gram split (Au-AA24). Where initial results exceed 1 g/t gold, an additional assay was completed on another 50 gram split using fire assay with a gravimetric finish (Au-GRA22). Golouma NW and Soreto core samples that were visually determined to be non-mineralized, were analyzed at the on-site laboratory operated by SGS. The mine site SGS laboratory is not certified to standard ISO/IEC accreditation. Core samples were analyzed for gold using an aqua regia digestion followed by an atomic absorption finish (ARE155).

Masato NE trench samples were bagged and processed at either the SGS on-site laboratory (ARE155), ALS in Johannesburg, South Africa (Au-AA24) or at the SGS laboratory in Bamako, Mali. The SGS Bamako laboratory is not certified to standard ISO/IEC accreditation. At SGS Bamako, samples were analyzed for gold using fire assay followed by an atomic absorption finish on a 50 gram split (FAA505).

Teranga has implemented quality assurance and quality control ("QA/QC") programs that include the regular insertion of blanks, certified reference materials ("CRM") and duplicate samples to prevent or detect contamination and allow assaying precision and accuracy to be quantified. One blank, one CRM and one duplicate sample were inserted into the trench and core sample stream at a rate of 1 in 40 samples. All samples returned results within acceptable limits. A small percentage of CRM failures were returned but some can be attributed to the insertion of a different CRM.

FORWARD LOOKING STATEMENTS

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("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 its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Such 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. These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions and courses of action. 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: 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 the Company's Annual Information Form dated March 31, 2014, and in other company filings 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.

COMPETENT PERSONS AND QUALIFIED PERSONS STATEMENT

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 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. 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 trench 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.

ABOUT TERANGA GOLD

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 in Senegal, West Africa.

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 Senegal, 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.

Senegal has a stable democracy and a very progressive mining code and is a member of the West African Economic and Monetary Union. The Senegalese government views mining as a pillar of growth and supports mining companies by offering attractive royalty and ownership structures. Teranga operates the only gold mine and mill in Senegal.

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