Mr. Richard Young reports

TERANGA GOLD HEDGES ~50% OF SABODALA PRODUCTION AT $1,336 PER OUNCE THROUGH 2018, PROVIDING GREATER CASH FLOW CERTAINTY DURING BANFORA PROJECT CONSTRUCTION

Teranga Gold Corp. has entered into forward gold sales contracts with Macquarie Bank Ltd. for a total of 131,000 ounces of gold commencing Oct. 1, 2017, through Dec. 31, 2018, at a gold price of $1,336 (U.S.) per ounce. All amounts are in U.S. dollars unless otherwise stated.

As outlined in the updated technical report for its Sabodala operation in Senegal filed on Aug. 30, 2017, the company anticipates production of up to 111,000 ounces in the second half of 2017 and 213,000 ounces in 2018. The forward sales contracts represent approximately 50 per cent of the production expected over the five quarters to the end of 2018.

"Our objective is to put an optimal financing plan in place that eliminates or at least minimizes the requirement to issue new equity to fund the development of our Banfora project in Burkina Faso, as well as, our other growth initiatives. A key component of the financing plan is the anticipated cash flows from our flagship Sabodala mine during the construction of the Banfora project, anticipated to commence in the second quarter of 2018. The execution of the forward sales contracts provides greater cash flow certainty from Sabodala through to the end of 2018, moving us one step closer to an optimal financing plan," stated Richard Young, president and chief executive officer of Teranga.

The forward sale contracts can be settled either in cash or by physical delivery at the option of Teranga. As part of the forward sales program, 25,000 ounces are due during the fourth quarter of 2017, with 26,500 ounces due in each of the four quarters of 2018 for a total of 131,000 ounces.

Added Mr. Young, "Looking ahead, depending on gold prices, we may extend the hedging program into 2019 to add further certainty of Sabodala cash flows during construction of the Banfora project."

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. Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of June 30, 2017, had a reserve base of 2.7 million ounces of gold.

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