An anonymous director reports

TERANGA GOLD RETIRES BALANCE OF LOAN FACILITY, INCREASES CASH BALANCE AND ANNOUNCES SECOND HIGHEST QUARTERLY PRODUCTION

Teranga Gold Corp. has retired the outstanding balance of its loan facility and increased its cash and cash equivalents balance to $35.7-million during the fourth quarter of 2014. Fourth-quarter production totalled 71,278 ounces from its Sabodala gold mine in Senegal, putting full-year 2014 production results at 211,823 ounces.

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

Strengthened balance sheet with retired loan facility and higher cash balance

As expected, Teranga retired the outstanding $15.0-million balance of its loan facility with Macquarie Bank Ltd. on Dec. 31. The company began the year with $60.0-million outstanding under the facility, of which $30.0-million was repaid on Jan. 15, 2014, with the completion of the streaming agreement with Franco-Nevada Corp. as part of the acquisition of the Oromin Joint Venture Group Ltd. The balance of $30.0-million was repaid in three quarterly $5.0-million instalments, with the final outstanding balance of $15.0-million paid on Dec. 31. The company ended the year with $35.7-million in cash and cash equivalents, an increase of $7.7-million over the third-quarter cash and cash equivalents balance (including restricted cash).

Strong quarterly gold production

Production was marginally lower than fourth-quarter guidance primarily due to slightly lower recovery rates than planned. The fourth-quarter saw record quarterly mill throughput of 1,009,038 tonnes milled contributing to the second-highest quarterly production of 71,278 ounces. Ore was sourced from both the Sabodala and Masato pits, with soft ore from the recently developed Masato pit contributing to higher throughput rates. Gold production of 71,278 ounces during the fourth quarter of 2014 was 47 per cent higher than third-quarter production in 2014, and 36 per cent higher compared with the same prior-year period. Full year production of 211,823 ounces represents the second-highest production total in company history.

Fourth-quarter and year-end results release

The company will release its 2014 fourth-quarter and year-end operating results for Australian Securities Exchange listing purposes on Thursday, Jan. 29, 2015, after market close in Toronto. A conference call and webcast will be hosted following the release with access details to be available on the company's website. Full 2014 fourth-quarter and year-end financial results are expected to be released during the week of Feb. 16, 2015.