Mr. Richard Young reports

TERANGA GOLD LOOKS AHEAD TO GROWTH OPPORTUNITIES IN 2017 FOLLOWING STRONG PERFORMANCE IN 2016

Teranga Gold Corp. has released its financial results for the fourth quarter and full year ended Dec. 31, 2016. All amounts are in U.S. dollars unless otherwise stated.

"In addition to exceeding our full-year production and cost guidance, we undertook strategic actions in 2016 which have opened up significant growth opportunities for us," stated Richard Young, president and chief executive officer of Teranga Gold. "For shareholders, Teranga offers meaningful upside potential, backstopped by a robust production profile, a strong balance sheet and a supportive cornerstone investor. These are exciting times."

2017 catalysts

• Banfora gold project: Following completion of a National Instrument 43-101 technical report targeted in mid-2017, the company's board of directors will assess project economics in advance of a potential construction decision in the second half of 2017.
• Continued strong operational performance at Sabodala: The company's outlook for 2017 production of between 205,000 ounces and 225,000 ounces of gold and all-in sustaining cash costs per ounce of $900 to $975 is enhanced by a derisked profile following the completion of a mill optimization, the implementation of new grade control procedures and the buildup of high-grade inventory.
• Multijurisdictional exploration programs: With $12-million to $15-million earmarked for exploration, Teranga is focused on increasing its reserve and resource base and increasing the likelihood of an exploration discovery in three major gold regions: Burkina Faso, Ivory Coast and Senegal.

                           2016 FINANCIAL AND OPERATING HIGHLIGHTS
  
                                                Three months ended          12 months ended 
                                               Dec. 31,    Dec. 31,     Dec. 31,    Dec. 31, 
                                                  2016        2015         2016        2015
Financial data
Revenue ($000s)                               $ 55,774    $ 58,235    $ 268,850   $ 224,620
Cost of sales ($000s)                          (43,022)    (49,266)    (181,528)   (174,884)
Profit(loss) attributable
to shareholders of Teranga ($000s)              (1,286)    (71,824)      23,109     (50,543)
Per share ($)                                    (0.00)      (0.19)        0.06       (0.14)
EBITDA  ($000s)                                 17,553      16,071       99,173      83,470
Operating cash flow ($000s)                    (13,627)      9,755       44,729      30,434
Sustaining capital expenditures
(before deferred stripping) ($000s)              7,531       9,592       33,012      33,135
Capitalized deferred
stripping -- sustaining ($000s)                  4,822       2,715       18,491      14,547
Growth capital expenditures ($000s)              1,641           -        1,641           -

                                                Three months ended          12 months ended 
                                               Dec. 31,    Dec. 31,     Dec. 31,    Dec. 31, 
                                                  2016        2015         2016        2015
Operating data                                      
Gold produced (ounces)                          43,987      51,292      216,735     182,282
Gold sold (ounces)                              46,523      52,939      217,652     193,218
Average realized gold price ($ per ounce)       $1,197      $1,099      $ 1,234     $ 1,161
Cost of sales per ounce ($ per oz sold)         $  925      $  931      $   834     $   905
Total cash costs ($ per ounce sold)             $  704      $  672      $   622     $   643
All-in sustaining costs ($ per ounce sold)      $1,049      $  973      $   929     $   967

2016 -- the year in review

Financial highlights

• Net income attributable to shareholders for the year increased to $23.1-million, or six cents per share.
• EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $99.2-million.
• The company strengthened its balance sheet by more than doubling its cash position to $95.2-million.

Operating highlights

• The company achieved record production of 216,735 gold ounces, surpassing guidance.
• The company met or beat 2016 unit cost guidance as unit mining and processing costs hit record lows.
• Cost of sales per ounce improved to $834 per ounce.
• Total cash costs and all-in sustaining costs per ounce declined, falling within the lower half of the company's full-year guidance ranges.
• The company extended industry-leading health and safety record to more than three years without a lost-time injury.
• The company earned global recognition for its corporate social responsibility program from the United Nations Global Compact Network Canada and from the Prospectors and Developers Association of Canada.

Growth highlights

• The company improved optionality and opportunity for growth with the acquisitions of Gryphon Minerals and the Ivory Coast land package.
• The company completed the Sabodala mill optimization under budget and ahead of schedule.
• Advanced exploration programs are under way in Senegal, Burkina Faso and Ivory Coast.

Consolidated financial statements

A copy of Teranga's consolidated financial statements and management discussion and analysis for the year ended Dec. 31, 2016, are available on the company's website and on SEDAR.

About Teranga Gold Corp.

Teranga is a multijurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000 square kilometres of land located on prospective gold belts.

We seek Safe Harbor.