Teranga Gold Drill Results Reveal More High-Grade Gold and Strong Correlation at Multiple Golden Hill Prospects

TORONTO, Dec. 04, 2018 - Teranga Gold Corp. ("Teranga" or the "Company") (TSX:TGZ; OTCQX:TGCDF) is pleased to announce that the most recent drill program on its Golden Hill property in Burkina Faso, West Africa has returned dozens of encouraging gold intersections from surface and strong, widespread mineralization along trend and to depth at three advanced prospects.

The latest step-out drill results from the Ma Main, Ma North and Jackhammer Hill prospects also outline excellent continuity of multiple gold zones within each of the highest priority prospects at Golden Hill. These drill results will be included in the initial resource estimate for Golden Hill to be released in early 2019. Teranga has a 100% interest in Golden Hill following the purchase of its previous joint venture partners’ interest.

HIGHLIGHT RESULTS

Ma Main Prospect

• 8 m @ 14.23 g/t gold, including 1 m @ 94.05 g/t gold (uncut) from 120 m down hole depth (DHD) and 11 m @ 3.05 g/t gold, including 3 m @ 5.68 g/t gold from 131 m DHD (GHDD-460) (see Table 1 in Appendix 1 for uncut and cut grade intervals for GHDD-460)

• 3 m @ 10.20 g/t gold, including 1 m @ 28.33 g/t gold from 45 m DHD and 9 m @ 4.05 g/t gold from 117 m DHD (GHRC-126)

• 8 m @ 9.44 g/t gold, including 1 m @ 68.00 g/t gold (uncut) from 62 m DHD (GHDD-445) (see Table 1 in Appendix 1 for uncut and cut grade intervals for GHDD-445)

• 3 m @ 6.55 g/t gold, including 1 m @ 18.39 g/t gold from 126 m DHD and 9 m @ 3.55 g/t gold from 136 m DHD (GHDD-467)

Ma North Prospect

• 13 m @ 2.25 g/t gold, including 6 m @ 3.57 g/t gold from 88 m DHD (GHDD-418)

• 15 m @ 2.28 g/t gold, including 5 m @ 4.49 g/t gold from 110 m DHD (GHDD-455)

• 13 m @ 4.38 g/t gold, including 5 m @ 7.69 g/t gold from 118 m DHD (GHDD-456)

Jackhammer Hill Prospect

• 12 m @ 5.63 g/t gold, including 1 m @ 35.02 g/t gold (uncut) from 30 m DHD (GHRC-086) (see Table 3 in Appendix 1 for uncut and cut grade intervals for GHRC-086)

• 15 m @ 8.82 g/t gold, including 3 m @ 32.89 g/t gold (uncut) from 35 m DHD (GHRC-094) (see Table 3 in Appendix 1 for uncut and cut grade intervals for GHRC-094)

• 8 m @ 4.37 g/t gold, including 3 m @ 9.60 g/t gold from 152 m DHD (GHDD-422)

“We are very encouraged by these drill results, both the along-trend and to-depth correlation of gold mineralization that we are seeing at multiple prospects throughout the Golden Hill property,” said Paul Chawrun, Chief Operating Officer. “With approximately 70,000 metres drilled to date, along with the geologic modelling and metallurgical test work underway, the project continues to build momentum and support our confidence that Golden Hill could be Teranga’s third gold mine in West Africa.”

Golden Hill includes nine advanced exploration prospects all within a 7.5-kilometre radius (see Figure 1 in Appendix 2) which would be conducive to a centralized processing facility. Recent results from Ma Main, Ma North and Jackhammer Hill add to the strong drill results announced to date at these and the other prospects at the Golden Hill project.

Over the remainder of the year, drilling will continue on a number of the advanced prospects, including Ma Main, Ma North and C-Zone.

“We are moving forward rapidly with our aggressive exploration program at Golden Hill,” stated David Mallo, Vice President, Exploration. “A busy year of resource definition drilling is drawing to a close at the project. Geologic modeling, preliminary metallurgical test work programs, and base line environmental and social studies are underway in advance of our initial resource estimation early next year. Exploration activities are progressing well, and we are excited to see where it leads us.”

Upon satisfaction of conditions precedent relating to the project’s initial preliminary economic assessment, Teranga has secured $25 million in debt financing to advance the Golden Hill project through to feasibility.

GOLDEN HILL PROPERTY

The Golden Hill property is comprised of three adjacent exploration permits covering 470 km² in southwest Burkina Faso in the central part of the Houndé Greenstone Belt. This belt hosts a number of high-grade gold discoveries, including the Siou, Yaramoko and Houndé deposits, the latter being contiguous with Golden Hill.

This news release provides an update on exploration drilling results from a number of prospects recently evaluated as part of ongoing advanced exploration programs at Golden Hill.

Recent drilling was undertaken at Ma Main, Ma North and Jackhammer Hill prospects as part of a property-wide resource evaluation program. Please refer to Appendix 1 for significant results (Tables 1-3) and Appendix 2 for plan maps and representative sections related to this phase of our exploration drilling program. Cumulative results from all Golden Hill drilling are available on the Company’s website www.terangagold.com under Exploration.

Ma Main Prospect: Strong Gold Mineralization Demonstrating Excellent Correlation

The Ma Main prospect remains the largest in size and is the most extensively drilled of those being evaluated currently at Golden Hill, with a current strike length of approximately 1.5 kilometres. The lesser drilled Ma East prospect ties on directly to the Ma Main and adds a further 1.2 kilometres of strike extent to this continuous mineralized system. The primary gold mineralization at Ma is hosted within two extensive brecciated fault zones (BZ-1 and BZ-2) that demonstrate excellent continuity throughout the areas drilled to-date. Of further note is the favorable geometry of both BZ-1 and BZ-2 which are spatially proximal, generally parallel and have moderate dip orientations which are advantageous for a future mining scenario. As drilling has progressed, additional mineralized zones have been intersected, predominantly in the hanging wall of BZ-1, which further enhances the upside potential at this advanced prospect.

Representative sections including some recent drill results are shown in Figures 3, 4 and 5 in Appendix 2.

Recent notable diamond drill results at Ma Main are outlined in Table 1 in Appendix 1.

Ma North Prospect: New Drilling Results Extends Mineralization Further Along Trend and to Depth

Our most recent Ma North diamond drill results continue to confirm that a third and fourth well-mineralized breccia zone (BZ-3 and BZ-4) exist within the Ma Structural Complex where previous drilling had identified BZ-1 and BZ-2 at Ma Main (see Figure 6 in Appendix 2). Comparatively, drilling at Ma North is still at an early-stage when compared to more advanced Ma Main area of the Ma Structural Complex. Similar to Ma Main, hole-to-hole correlation is demonstrating excellent continuity of mineralization both along trend and to drilled depths. Additional drilling is planned to further evaluate Ma North, especially along trend and to depth focusing on the eastern extension area where recent drilling has intersected a series of sub-parallel breccia-hosted mineralized horizons that remain open to further expansion.

A representative section including some recent drill results is shown in Figure 7 in Appendix 2.

Recent notable diamond drill results at Ma North are outlined in Table 2 in Appendix 1.

Jackhammer Hill Prospect: High-Grade Mineralization Hosting Visible Gold

Recent drilling at the Jackhammer Hill prospect has focused on defining along trend expansion potential, depth extensions below previously identified shallow mineralization and confirmation of the geological interpretation.

The gold mineralized zones identified thus far at Jackhammer Hill comprise a series of steep, southeast dipping horizons hosted within an altered and sheared diorite intrusive unit. Drilling has been directed along an approximate 1,350-metre strike extent (Figure 8 in Appendix 2), predominantly to vertical depths of approximately 125 metres. A 200-metre long central portion of the Jackhammer Hill mineralization includes a number of previously announced high-grade intervals hosting visible gold within a broad altered and mineralized zone.

A representative section including some recent drill results are shown in Figure 9 in Appendix 2.

Recent notable diamond drill results at Jackhammer Hill are outlined in Table 3 in Appendix 1.

Competent Persons Statements

Teranga's Burkina Faso exploration programs, corresponding to the drill holes being reported herein, were managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee, recently retired, of Teranga and is not "independent" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 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 "Qualified Person" under NI 43-101. The technical information contained in this news release relating to 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 and diamond core samples are assayed at the BIGS Global Laboratory in Ouagadougou, Burkina Faso. 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.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga's future growth and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “objective to”, “likely”, “intend to”, “potential”, “belief”, “believe”, “expects”, “estimates”, “plans”, “anticipated”, “ability” and similar expressions or statements that certain actions, events or results “should”, or "will" have been used to identify such forward-looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward-looking statements. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of sampling, analytical and test data underlying the exploration results included herein, gold price, exchange rates, fuel and energy costs, future economic conditions, and anticipated future estimates of free cash flow. Teranga cautions you not to place undue reliance upon any such forward-looking statements.

The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Teranga's Annual Information Form dated March 29, 2018, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this document should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.

About Teranga

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 6,400 km² of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 1.5 million ounces of gold at its Sabodala operation in Senegal. Focused on diversification and growth, the Company is advancing construction of its second producing gold mine, Wahgnion, which is located in Burkina Faso, as well as carrying out extensive exploration programs in three West African countries: Burkina Faso, Côte d’Ivoire and Senegal. The Company had more than 4.0 million ounces of gold reserves as of June 30, 2018. Teranga applies a rigorous capital allocation framework for its investment decisions to execute on its growth strategy relying on a combination of cash on the balance sheet, free cash flow from operations and debt.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders. Teranga is a member of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report.

Contact Information

Richard Young
President & CEO
T: +1 416 594 0000 | E: ryoung@terangagold.com

Trish Moran
Head of Investor Relations
T: +1 416 607 4507 | E: tmoran@terangagold.com

APPENDIX 1

Table 1: Ma Main Prospect – Selected Drill Highlights

Table 2: Ma North Prospect – Selected Drill Highlights

Table 3: Jackhammer Hill Prospect – Selected Drill Highlights

APPENDIX 2

Figure 1: Golden Hill Property – Prospect Location Plan Map

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Figure 2: Ma Main - Plan Map

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Figure 3: Ma Main Prospect - Representative Drill Section (A-A’ 0+60 E)

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Figure 4: Ma Main Prospect - Representative Drill Section (B-B’ 2+40 E)

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Figure 5: Ma Main Prospect – Representative Section (C-C’ 6+60 E)

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Figure 6: Ma North Prospect - Plan Map

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Figure 7: Ma North Prospect – Representative Drill Section

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Figure 8: Jackhammer Hill Prospect – Plan Map

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Figure 9: Jackhammer Hill Prospect – Representative Section

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