TORONTO, ONTARIO--(Marketwired - March 23, 2016) -

(All amounts are in U.S. dollars unless otherwise stated)

Teranga Gold Corporation ('Teranga' or the 'Company') (TSX:TGZ)(ASX:TGZ) announces the filing of a National Instrument 43-101 Technical Report (the 'Technical Report'), supporting the Company's updated life of mine ('LOM') plan released on January 29, 2016. The Technical Report titled 'Technical Report on the Sabodala Project, Senegal, West Africa', which was prepared by Teranga and RPA Inc. and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects, has been filed on SEDAR at www.sedar.com and on the Company's website at www.terangagold.com.

'A long-life, low-cost reserve base and strong cash flow underpin our new updated life of mine plan which projects undiscounted cash flows of $549 million,' said Richard Young, President and Chief Executive Officer. 'We believe the upside potential on this base case plan is significant. With the only operating mill in Senegal and a large land package on an emerging world-class gold belt, we are focused on continuing to convert resources to reserves and to make new discoveries. Since our IPO at the end of 2010, we have increased our reserve base net of five years' production, by 80 per cent, through acquisition and exploration.'

Highlights of the Technical Report

• Large, 13.5-year mine life

• Solid LOM production profile with gold production expected to average over 200,000 ounces per annum through 2024. Sequencing of multiple open pits designed to maximize annual cash flow at an $1,100 gold price per ounce.
• LOM all-in sustaining costs of $887 per ounce and, when including the cost of the Franco-Nevada gold stream, $960 per ounce. Low sustaining capex of less than $10 million per annum over LOM.
• Strong cash flow of $240 per ounce at a $1,200 per ounce gold price.
• Significant organic growth potential on emerging world-class gold belt where more than 50 million ounces have been identified.

Endnotes

1. For Teranga, life of mine cash flows from the Sabodala project are derived from the Company's NI 43-101 Technical Report filed on Sedar as of March 23, 2016 and are determined as follows: Forecasted revenues from production over the life of mine total $2,830 million (See Appendix 3 - Life of Mine Plan - 215,000 ounces at $1,100 per ounce and 2,154,000 ounces at $1,200 per ounce, see also Table 16-8 of the Technical Report on page 16-14) less anticipated life of mine all-in sustaining cash costs of $2,281 million (See Appendix 5 herein and Table 21-8 on page 21-15 of the Technical Report) for undiscounted cash flows totalling $549 million before interest payments, income tax payments, repayment of debt, working capital, closure costs and dividends. On a discounted basis the present value of these life of mine cash flows would be $376 million at 5% and $307 million at 8%. Using an exchange rate of 0.7USD:1CAD, undiscounted life of mine cash flows total C$784 million, and on a discounted basis, C$537 million at 5% and C$439 million at 8%.
2. Mineral Reserves and Mineral Resources estimates as at December 31, 2015 as per Company disclosure. For more information regarding Teranga Gold's Mineral Reserves and Resources, please refer to Teranga Gold's December Quarter and Year-end 2015 Report accessible on the Company's website at www.terangagold.com.
3. This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as disclosed in Teranga Gold's December Quarter and Year-end 2015 Report accessible on the Company's website at www.terangagold.com.
4. Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council ('WGC') definition of all-in sustaining costs seeks to extend the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company's overall profitability. Life of mine total cash costs and all-in sustaining costs figures used in this release are before stockpile inventory value adjustments and government waiver accruals. For more information regarding these measures, please refer to the Company's 2015 Annual Management's Discussion and Analysis accessible on the Company's website at www.terangagold.com.
5. Cash flow per ounce is based on the Company's life of mine average all-in sustaining costs as set out in the Company's most recent NI 43-101 Technical Report before income tax payments, interest payments, debt repayments, closure costs, dividends and working capital deducted against a forecast gold price of $1,200 per ounce for 2017 and beyond.
6. Identified ounces on the Birimian greenstone belt, which straddles the border of Senegal and Mali, West Africa, refers to gold ounces historically mined in addition to gold ounces currently reported as Measured and Indicated Resources, as available on GFMS Thomson Reuters and the latest company reserve and resource statements as of March 23, 2016.

Competent and Qualified Persons Statement

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 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 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 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 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 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 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 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.

The technical information contained in this document relating to the underground mineral reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, 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. Sepp is independent of Teranga and is a 'Qualified Person' as defined in NI 43-101 and a 'competent person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Sepp has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity 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. Sepp 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 the Technical Report.

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 2012 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 2012 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 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. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan, anticipated 2016 results, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, and the completion of construction of the Gora deposit related thereto. 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 revised Company's Annual Information Form dated September 1, 2015, 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.

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 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 and 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. For more information, please refer to www.terangagold.com.

APPENDICES

APPENDIX 1: Open Pit and Underground Mineral Resources Summary as at December 31, 2015

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, except for Gora at 0.48 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, except for Gora at 0.55 g/t Au.
4. Underground Mineral Resources are estimated at a cut-off grade of 2.00 g/t Au.
5. Measured Resources at Sabodala include stockpiles which total 9.2 Mt at 0.77 g/t Au for 229,000 oz.
6. Measured Resources at Gora include stockpiles which total 0.1 Mt at 1.30 g/t Au for 6,000 oz.
7. Measured Resources at Masato include stockpiles which total 5.9 Mt at 0.79 g/t Au for 150,000 oz.
8. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au.
9. The figures above are 'Total' Mineral Resources and include Mineral Reserves.
10. Open pit shells were used to constrain open pit resources.
11. Mineral Resources are estimated using a gold price of US$1,450 per ounce.
12. Sum of individual amounts may not equal due to rounding.

There have been no revisions to the resource models for 2015, except for adjustments due to mining depletion and minor revisions to Niakafiri Main, Niakafiri SW, Maki Medina and Diadiako. For estimating 2015 Mineral Resources, Teranga has implemented a new reporting procedure, which includes the use of open pit shells to constrain open pit resources and reporting underground resources separately.

For reporting of open pit Mineral Resources, open pit shells were produced for each of the resource models using Whittle open pit optimization software. Only classified blocks greater than or equal to the open pit cut-off grades and within the open pit shells were reported. This is in compliance with the CIM (2014) resource definition requirement of 'reasonable prospects for eventual economic extraction'.

For reporting of underground Mineral Resources, only classified blocks greater than or equal to the underground cut-off grade outside of the open pit shells were reported. This is in compliance with CIM (2014) resource definition requirements. In addition, Deswik Stope Optimizer software was used to generate wireframe models to constrain blocks satisfying minimum size and continuity criteria, which were used for reporting Sabodala underground Mineral Resources.

The significant change between the Mineral Resources reported for 2014 and 2015 is due to this new reporting procedure, where the 2015 year end Mineral Resources have been constrained using open pit shells along with revised gold cut-off grades for both open pit and underground resources. Previously classified Mineral Resources that do not satisfy the revised reporting criteria for 2015 have been excluded, however, remain in the block models as mineralized material.

APPENDIX 2: Open Pit and Underground Mineral Reserves Summary

Notes for Mineral Reserves Summary:

1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserve cut off grades for range from are 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. Mineral Reserve cut off grades for Sabodala 0.45 g/t for oxide and 0.55 g/t for fresh based on a $1,100/oz gold price
4. Underground reserves cut-off grades ranged from 2.3-2.6 g/t based on $1,200/oz gold price
5. Sum of individual amounts may not equal due to rounding.
6. 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.

APPENDIX 3: Life of Mine (2016 to 2029)

APPENDIX 4: Life of Mine Capital Expenditures

APPENDIX 5: Life of Mine Operating Costs