Mr. Paul Chawrun reports

TERANGA GOLD REPORTS RECORD Q2 AND H1 PRODUCTION, RAISES 2018 GUIDANCE

Teranga Gold Corp. has released its operating, financial and development results for the three and six months ended June 30, 2018. All amounts are in U.S. dollars unless otherwise stated.

"There is a lot of positive momentum across our operating mine, development and exploration properties," said Paul Chawrun, chief operating officer. "In Senegal, we achieved record second quarter and half-year production at Sabodala and increased our full-year 2018 production guidance to at least 230,000 ounces of gold. In Burkina Faso, construction of our second mine at Wahgnion is on track for first pour before the end of next year and we continue to see positive exploration results at Golden Hill, our most advanced exploration property."

"We are on the road to achieving our vision of becoming a multiasset, mid-tier gold producer in West Africa," added Richard Young, president and chief executive officer. "By the end of 2019, we expect to increase our annualized gold production by about 50 per cent to between 300,000 and 350,000 ounces, diversifying our production base and adding significant scale with a second long-life mine -- Wahgnion. Additionally, we are prioritizing Golden Hill within our exploration portfolio given it has the potential to be our third mine and move us into the mid-tier producer category."

                          OPERATING AND FINANCIAL HIGHLIGHTS

                                                      Three months      Six months
                                                    ended June 30,  ended June 30,
Operating data                                         2018   2017    2018    2017

Gold produced                                   (oz) 65,381 57,557 129,412 114,460
Gold sold                                       (oz) 66,256 57,167 131,490 114,438
Average realized gold price               ($ per oz) $1,301 $1,260  $1,313  $1,243
Cost of sales per ounce              ($ per oz sold)    906    950     909     950
Total cash costs                     ($ per oz sold)    629    710     644     716
All-in sustaining costs (excluding
non-cash inventory movements and
amortized advanced royalty costs)    ($ per oz sold)    847    933     867     934

                                                           Three months          Six months
                                                         ended June 30,      ended June 30,   
Financial data                                            2018     2017      2018      2017

Revenue                                        ($000)  $86,050  $72,040  $172,292  $142,362
(Cost) of sales                                ($000)  (59,997) (54,281) (119,467) (108,739)
Gross profit                                   ($000)   26,053   17,759    52,825    33,623
Net profit attributable
to shareholders of Teranga                     ($000)   11,586    9,640    14,567    15,803
Per share                                         ($)     0.11     0.09      0.14      0.15
Adjusted net profit attributable to
shareholders of Teranga                        ($000)    6,192    9,723    16,095    16,195
Per share                                         ($)     0.06     0.09      0.15      0.15
EBITDA                                         ($000)   44,949   23,827    69,314    45,701
Operating cash flow excluding
changes in working capital other
than inventories                               ($000)   26,105   22,191    50,971    46,018
Operating cash flow                            ($000)   19,181    7,434    32,900    28,692
Sustaining capital
expenditures (excluding deferred stripping)    ($000)    4,150    9,611     7,307    14,928
Capitalized deferred stripping -- sustaining   ($000)    8,157    4,704    18,254    16,304
Growth capital expenditures                    ($000)   22,830    6,932    44,849     9,130

• Record second quarter and half-year production resulted in an increase in full-year 2018 production guidance to at least 230,000 ounces (original guidance 210,000 to 225,000 ounces).
• Per-ounce metrics, including cost of sales, total cash costs, all-in sustaining costs and all-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs) were all lower than the prior-year quarter and below the full-year guidance ranges, mainly due to higher grades mined and processed.
• For the three and six months ended June 30, 2018, net profit attributable to Teranga shareholders benefited from realized and unrealized gains on gold forward sales contracts and an increase in gross profit as a result of higher revenue, partially offset by an increase in income tax expense and a non-cash adjustment as a result of the adoption of international financial reporting standards 15.
• Cash and cash equivalents totalled $91.7-million, up $31.4-million from the first quarter 2018 balance of $60.3-million.
• During the second quarter, the company drew down $70-million under a secured development facility with Taurus Funds Management Pty. Ltd. and fully repaid its $15-million revolving credit facility.

Organic growth highlights:

• Wahgnion measured and indicated resources increased significantly.
• Wahgnion's M&I resources increased by 33 per cent from 1.8 million ounces to 2.4 million ounces. The company is targeting a conversion rate of more than 50 per cent of the 600,000 ounces of additional mineral resources into reserves.

Wahgnion construction is on track and progressing well:

• Completed plant design;
• Detailed engineering on schedule to support site construction;
• The development of site infrastructure moving forward on schedule;
• Major plant construction commenced with pouring of structural concrete.

Golden Hill: the company's most advanced exploration property:

• The number of prospects at Golden Hill now stands at nine, a twofold increase from one year ago.
• Positive drill results during the quarter progressing toward an initial resource estimate by year-end.
• Teranga has secured $25-million for the future advancement of Golden Hill to a feasibility study.

Key milestones in 2018

Teranga's operations, development and exploration teams are expecting to deliver on a number of key milestones through the remainder of 2018. They include:

• Sabodala: achieve increased 2018 production guidance of at least 230,000 ounces of gold and generate strong free cash flows; advance Niakafiri resettlement to pave way for drilling in 2019;
• Wahgnion: update mineral reserve estimate, mine plan and National Instrument 43-101 technical report in the third quarter of 2018;
• Golden Hill: provide further exploration updates and issue an initial resource estimation by year-end;
• Ivory Coast: provide updates on exploration and development activities.

Consolidated financial statements

A copy of Teranga's consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2018, is available on the company's website, SEDAR and on the OTC Markets' website.

Second quarter 2018 conference call and webcast

Teranga will host a conference call/audio webcast today at 8:30 a.m. Eastern Time, during which management will review the highlights for the quarter. Those wishing to listen can access the live conference call and webcast as follows:

Date and time:  Thursday, Aug. 2, 2018, at 8:30 a.m. Eastern Time

Telephone:  toll-free 1-877-291-4570; local of international 1-647-788-4919; please allow 10 minutes to be connected to the conference call

Webcast:  the webcast can be accessed on Teranga's website

Replay:   the conference call replay will be available for two weeks after the call by dialling 1-416-621-4642 or toll-free at 1-800-585-8367 and entering the conference ID 3675279

Note:  the slide presentation will be available for download for simultaneous viewing during the call

 
                                              FINANCIAL HIGHLIGHTS
                                                (in thousands)

                                                   Three months ended June 30,    Six months ended June 30,
                                                         2018             2017          2018           2017

Net profit attributable to shareholders               $11,586           $9,640       $14,567        $15,803
Adjustments (net of tax) for
(Gains) on derivative instruments                     (10,942)               -        (7,881)             -
Accretion expense                                       2,465              141         5,004            293
Acquisition                                                 -               32             -             52
Net foreign exchange (gains) losses                      (124)           2,024         1,945          2,937
Impact (loss) of foreign exchange
on deferred taxes                                       3,218           (2,114)        2,471         (2,890)
Change (loss) in fair value of
share warrant liability                                   (11)               -           (11)             -
Adjusted net profit attributable
to shareholders                                         6,192            9,723        16,095         16,195
Basic earnings per share                                 0.11             0.09          0.14           0.15
Adjusted basic earnings per share                        0.06             0.09          0.15           0.15

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