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News

June Quarter Report

Aug 10, 2011

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Teranga Gold Corporation (TSX:TGZ)(ASX:TGZ)

Operating / Exploration highlights

--  Exploration budget for 2011 expanded to 17 drill rigs and $33 million
    due to encouraging exploration results up from the earlier budget of $25
    million
    --  Mining Licence ("ML") drilling results increase potential for open
        pit reserve expansion at Sabodala.
    --  Drilling at the high-grade Gora deposit continues to return highly
        mineralized intersections with the deposit remaining open in all
        directions. A ground IP survey completed in June has delivered
        additional anomalies for further follow up drilling.
    --  Reconnaissance drilling has confirmed the potential for a new
        discovery of a second regional deposit at Toumboumba, where drilling
        continues to return ore-grade intersections.
    --  Early drilling at Majiva returned several encouraging intersections
        from the southern extension of the Niakafiri structural
        intersection.
--  Gold production for the three months ended June 30, 2011 was 32,480
    ounces. Gold sold for the three months ended June 30, 2011 total 35,407
    ounces at total cash costs of $879 per ounce sold. Total cash costs were
    higher than previous quarters but on budget as higher fuel and
    maintenance costs were offset by higher than budget sales.
--  For calendar 2011, Sabodala is on track to produce 140,000 ounces of
    gold and sell 144,000 ounces of gold at total cash costs of $750 to $775
    per ounce.
--  For calendar 2012, Sabodala is expected to produce 220,000 ounces of
    gold at total cash costs of $575 to $625 per ounce, primarily due to the
    completion of the mill expansion allowing for higher throughput
    resulting in higher production and lower mining cost per ounce due to a
    decrease in the ore to waste strip ratio.
--  The plant expansion from 2 Mtpa to approximately 4 Mtpa is underway and
    is expected to be completed during the first quarter of 2012. Most of
    our major components are either on site or scheduled for shipment.

Financial highlights

--  Net loss for the three months ended June 30, 2011 totalled $9.7 million
    or $0.04 per share, while net loss for the nine months totalled $3.4
    million or $0.03 per share largely due to accelerated deliveries under
    gold hedge agreements that reduced revenue by $15.6 million and $28
    million for the quarter and nine month periods, respectively as well as
    lowering earnings. As well, higher exploration and stock based
    compensation costs also contributed to the loss for the quarter and nine
    month period.
--  Cash and cash equivalents including short term investments and
    restricted cash total $65.9 million at quarter end.
--  Revenue of $38.3 million for the three months ended June 30, 2011
    represents a shipment of 35,407 ounces of gold, out of which 23,000
    ounces were delivered into gold hedge contracts at $846 per ounce and
    12,407 ounces were sold into the spot market at an average price of
    $1,522 per ounce resulting in an average realized price for the quarter
    of $1,083 per ounce. Higher gold prices allowed the Company to deliver
    65 percent of sales into hedge contracts for the quarter, compared to 52
    percent for the nine month period while still maintaining a high cash
    balance to fund the mill expansion and exploration program.
--  Accelerated deliveries into gold hedge contracts during the quarter
    ended June 30, 2011 reduced the balance outstanding to 198,500 ounces of
    gold. The Company's objective is to eliminate the hedge book entirely as
    quickly and prudently as possible.
--  On June 30, 2011, the Company entered into an equipment supply contract
    for the purchase of mining equipment for a total of $14.4 million, which
    is expected to be used primarily for the development of the Gora
    deposit. The purchase of this mining equipment is expected to be largely
    financed by expansion of the mobile equipment loan with Societe
    Generale.
--  Capital expenditures for the quarter ended June 30, 2011 were $15.3
    million. Capital expenditures for the balance of calendar 2011 are
    expected to total $52.8 million, primarily for the mill expansion,
    mining equipment and ML exploration costs.
--  The Company passed a resolution changing the fiscal year from June 30 to
    December 31.

Review of Operations

Gold production for the Sabodala gold mine for the three-and-nine months ended June 30, 2011 was 32,480 ounces and 102,530 ounces, respectively. Gold sold for the three months ended June 30, 2011 total 35,407 ounces at total cash costs of $879 per ounce, in line with budget, while gold sold for the nine months ended June 30, 2011 was 108,353 ounces of gold at total cash costs of $766 per ounce. The higher cost reflects a number of one time maintenance items in the mine and mill. Gold production for the twelve months from July 1, 2010 to June 30, 2011, was 137,633 ounces of gold, 5 percent higher than our guidance, at total cash costs of $722 per ounce which was 11 percent lower than our guidance during the Company's initial public offering. The lower cash costs were due to higher production and lower mining costs. The higher cash costs in calendar 2011 reflect higher mining costs related to additional stripping required as part of the mill expansion that adds approximately $120 per ounce to cash costs. Mining cost per ounce is expected to decline from $390 per ounce in 2011 to $270 per ounce in 2012 once the mill expansion is complete. As a result, total cash cost per ounce is expected to decrease from $750 to $775 in 2011 to $575 to $625 in 2012.

Gold production for the period from November 23, 2010, the date of Demerger from MDL, to June 30, 2011 was 85,802 ounces at total cash costs of $737 per ounce.

"Our operations are performing well and are on track to meet our production and cost guidance for the year and our mill expansion is progressing smoothly, providing us with a solid base to build on as we focus on growing our reserves and production" said Alan R. Hill, Chairman and CEO.

Mining

Total tonnes mined were 7 percent lower than budget for the June quarter due to an 8 percent decrease in waste tonnes mined partially offset by an increase in ore tonnes mined as compared to budget. The decrease in the waste tonnes mined was due to difficult mining in the last two ore benches located in the bottom of the pit that contained the bulk of the ore mined during the quarter.

Total tonnes mined for the nine months ended June 30, 2011 were 4 percent lower than budget due to a 7 percent decrease in waste tonnes mined partially offset by an increase in ore tonnes mined as compared to budget. The increase in ore tonnes mined reflects a change to the mine plan during the March quarter to provide earlier access to higher grade ore, which lead to higher production guidance for 2011 and 2012.

Unit mining costs for the quarter were higher than budget. The increase in unit mining costs for the quarter compared to budget and the nine month period reflect the impact of higher fuel costs, one off maintenance costs and lower tonnes mined.

Milling

Mill throughput for the three months ended June 30, 2011 was 10 percent higher than budget due to the softer nature of the ore, optimized blending and the implementation of an automated control system. The higher throughput for the June quarter was partially offset by the lower grade of ore processed compared to budget. The recovery rate for June quarter was marginally lower than budget due to higher throughput and lower gold grades processed.

Unit processing costs for the quarter were higher than budget. The increase in unit processing costs for the quarter compared to budget and the nine month period reflect the impact of higher fuel costs and higher maintenance costs related to two mill relines partially offset by higher tonnes milled.

Average Realized Gold Price

The lower average realized gold price for the quarter ended June 30, 2011 compared to the nine month period relates to an increase in gold sold into hedge contracts compared to the nine month period, partially offset by higher gold prices during the June quarter. In total, 65 percent of gold sales during the June quarter were delivered against gold hedge contracts at $846 per ounce, while for the nine month period 52 percent of gold sales were delivered against gold hedge contracts at $846 per ounce. The average spot price for the quarter was $1,522 compared to $1,429 for the nine month period partially offset the higher percentage of sales into hedge contracts. Higher gold prices permit the Company to deliver additional ounces into hedge contracts to reduce the obligation while maintaining adequate cash balances required to fund ongoing exploration and expansion activity.

Total Cash Costs

Total cash costs (including royalties) of $879 per ounce for the quarter were marginally lower than budget primarily due to an increase in ounces sold during the quarter, offset by $3.6 million higher operating costs mainly due to higher fuel prices and maintenance costs. Total cash costs (including royalties) of $766 per ounce for the nine months were 11 percent lower than budget mainly due to a 14 percent increase in ounces sold during the period. Total cash costs (including royalties) for the period from November 23, 2010, the date of Demerger from MDL, were $737 per ounce.

Plant Expansion

The plant expansion is expected to be completed early in the first quarter of calendar 2012. The estimated capital costs for the plant expansion total $55.9 million.

The plant expansion expenditures for the three-and-nine months ended June 30, 2011 were $9.5 and $14.7 million respectively. The capital expenditures for the balance of calendar 2011 are expected to total $33 million.

Mine License Exploration

The Company believes there is potential to expand proven and probable reserves from 1.5 million ounces of gold to 2 to 3 million ounces of gold, at similar grade to the current reserve (1.5gpt) from the ML over the next 12 to 24 months. This would increase the mine life to approximately 10 to 15 years at a run rate of about 200,000 ounces of gold produced annually and provide a solid production base to build on through the Regional Exploration Program. In order to increase reserves on the ML it is anticipated that a total of 5 drill rigs will be testing new targets as well as converting existing resources to reserves at an estimated cost of $8 million in 2011 as part of the Company's expanded $33 million exploration program for the calendar year.

During the quarter, the focus was on the Main Flat Extension which extends out of the north section of the Sabodala pit, on "the Corridor" which is the northerly extension of the structural system that defines the limits of the Sabodala gold deposit, and on the down dip extension of the Masato deposit positioned less than one kilometre east from the Sabodala mine.

June quarter drilling results increase potential for open pit reserve expansion at Sabodala in 2011

Main Flat Extension

The Main Flat is the principal gold host in the Sabodala deposit. In the southern part of the deposit this structure dips shallowly to the west, rolls flat and then rolls to a moderate northerly dip as it exits the ultimate pit. The Main Flat Extension drill program is designed to test the continuity of this structure to the north beginning with in-filling holes in the deepest part of the current mine design then stepping out to the north.

Drilling targeting the Main Flat Extension immediately adjacent to the current ultimate pit at a depth of 300 metres (about 50 metres below the current design pit bottom and accessible to open pit mining) confirms the continuation of the mineralized zone with further drilling planned. Gold grades intersected are typical of the Sabodala deposit. The Main Flat Extension remains open down plunge to the northwest.

"The Corridor"

Drilling continued in the structural corridor progressing outward and north from the Sabodala open pit. It produced ore grade near surface results along Ayoub's Thrust, a structural feature that defines the western limit of the Corridor. Mineralization has been traced more than 200 metres north of the existing Sabodala open pit along trend and remains open to the north and west. The orientation of the mineralization is understood to be flat and shear related, stacked in multiple zones to a depth of 150 metres from surface.

The results of drilling these two target areas are the delineation of two separate ore zones that have the potential to add reserve ounces to the Sabodala pit in 2011. The lower grade upper ore zone is anticipated to reduce waste stripping to the higher grade lower ore zone and may provide additional near surface ore feed for the Sabodala mill.

Masato

Initial drilling confirms high-grade mineralization at depth along the Masato down dip extension. Most of the assays are pending.

Management believes that all new ounces found on the ML can be converted to production as they can be fed directly through the mill without any further permitting requirements. Permitting ounces found on the Regional Land Package should also move relatively quickly as these ounces are expected to be processed through the existing Sabodala mill.

Regional Exploration

During the three months ended June 30, 2011 the Company achieved the $3.5 million expenditure commitment threshold on exploration work associated with its three joint venture properties with Axmin Inc., thereby meeting the required expenditure threshold to achieve an 80 percent interest in each of the concessions.

In addition to the exploration program on the Company's 33km(2)Sabodala Mine License, Management believes that the Regional Land Package has significant prospective potential for satellite high-grade deposits similar to Gora as we know it today, as well as the potential for world-class (+ 5 million ounces) discoveries similar to those found on the same gold belt in Mali, approximately 90km from the Sabodala mine. Therefore, Management is pursuing an extensive multi-year exploration program designed to test a number of targets that have already been identified as requiring additional analysis, as well as identify new targets for testing.

There are currently 27 targets that have been identified on the Company's 1,455km(2)Regional Land Package, all within trucking distance of the mill that are expected to be drill tested through the end of 2011. Exploration drilling on the regional land holding commenced during the December quarter.

By the end of the June quarter the Company completed approximately 50,000 metres of Diamond Drilling (DD) and Reverse Circulation (RC) and 98,000 metres of Rotary Air Blast (RAB) drilling. A total of 10 drill rigs are currently on the Regional Land Package and two additional drill rigs are expected to be added to the program during the September quarter. In total, 12 drill rigs are expected to be active on the regional land package in the second half of 2011 at a total estimated drilling cost of approximately $25 million.

Extensive RAB drilling completed to date has confirmed that a large proportion of the surface gold anomalies can be traced back to gold bearing structures in the bedrock. Thorough testing evaluation of these structures requires RC and DD. During 2011 first pass RC and DD testing has commenced on nine of the twenty-seven target areas identified on the Regional Land Package. Strategic road upgrades and repair of river and creek crossings was undertaken so that the exploration filed work and drilling could continue during the wet season. During the September quarter the Company is also aiming to continue its resource and exploration drilling program at Gora deposit.

Gora

Initial exploration results from the Gora Project, located 22km from the Company's Sabodala gold mine confirmed a high-grade gold deposit. As a result of the exploration success to date, the Company increased its exploration budget for the Gora Project for 2011 to complete exploration drilling at depth as well as along strike as the deposit remains open in all directions. High-grade drill intersections continue to expand the potential footprint of the deposit, while a recently completed IP survey has revealed additional anomalies along strike of the current resource which are targeted for follow up drilling. The Company is running a number of processes in parallel to efficiently develop Gora as quickly as possible, including the ongoing exploration program, permitting and feasibility level economic analysis with the objective of having production as early as late 2012.

Drilling on the Gora deposit, where the Company has already (May 2, 2011) identified an inferred resource of 100,000+ ounces of gold at 6 gpt, continues to return very high grade results. See below for the selected latest results:

June 13, 2011 - press release            July 11, 2011 - press release
5m @ 33.7 g/t from 111m (Vein 1)                2m @ 20.6 g/t from 88m
2m @ 61.3 g/t from 126 m (Vein 1)              2m @ 27.3 g/t from 108m
3m @ 26.7 g/t from 154 m (Vein 1)               2m @ 20.7 g/t from 79m
3m @ 47.7 g/t from 164 m (Vein 5)              4m @ 23.2 g/t from 132m
1m @ 33.0 g/t from 156m (Vein 4)               3m @ 24.1 g/t from 155m
4m @ 10.7 g/t from 145m (Vein 2)               4m @ 34.1 g/t from 155m
1m @ 51.8 g/t from 112m (Vein 2
9m @ 3.2 g/t from 87m (Vein 1)

           Recent results
    1m @ 9.5 g/t from 23m
    1m @ 3.6 g/t from 79m
    1m @ 5.8 g/t from 28m





For full drill results to date please see the Company's website at http://terangagold2014.q4web.com/investor- relations/news-releases/.

Since February a total of 144 RC and DD holes were completed for a total of 24,705 metres. Assay results are pending for 17 holes. The current phase drill program of approximately 25,000 metres of RC and DD drilling is expected to be completed at the end of August. This program is designed to evaluate the resource of the deposit to a vertical depth of about 130 metres along its known strike extent.

Step out exploration drilling, beyond the current systematic program described above, aims to test key structural intersections located down dip where mineralized structures are expected to intersect a major intrusive body. Step out drilling has commenced with a minimum 2,400 metre DD drill program. The initial nine hole program has been expanded to eleven planned holes, eight of which have been completed (SKRCDD0012, 67, 68, 69, 70, 85, 90, and 101). Geological logging of these holes has confirmed the presence of the mineralized structure in all eight holes to date with true widths of up to 12 metres. Results from holes SKRCDD0067, 68 and 69 have been received and indicate zones of gold anomalism. Data integration is in progress. Results for the remaining holes are still pending.

Recent gradient array IP surveying at Gora showed that the main resource is associated with a well defined geophysical response (chargeability high). This chargeability trend continues for at least an additional 700 metres to the north east, although on a lower response level, which may be due to the mineralised system plunging away with depth. Two additional chargeability anomalies of interest have been identified to the south and south-east of the Gora resource. One of these is 1200 metres in length and has the same orientation as the Gora mineralisation. The second one extends for at least 400 metres and is located almost along strike to the south east of the Gora resource.

For the exploration of the immediate north and south strike extensions of the Gora vein system, a 6,200 metre program of mainly RC drilling has commenced with two RC rigs in late July and may continue through September, depending on rig availability and performance.

Beyond this, a further 10,000 metres of RC drilling and 5,000 metres of DD drilling will be required to test the entire strike extent of the Gora mineralized trend and nearby parallel IP anomalies. This program may commence as early as October 2011, or before if additional rigs can be sourced.

A program of extending the IP grid to the north and south is currently underway to complete the tracking of the along strike geophysical responses to the north, south and west. Some additional lines of IP will be run across the current anomalies with a different equipment configuration (dipole-dipole) which may allow tracing of the key responses up to 300 metres in depth. If successful this will allow better targeted step out exploration drilling.

"The mineralization at Gora can be tracked well beyond the boundaries used in the last resource model and consequently we are working on an updated model and resource estimate" said Mr. Hill. "Currently, grades from Gora are at least four times our reserve grade, which may have a significant impact on the near term mill feed, potentially increasing production significantly."

Toumboumba

Toumboumba, located 10km from the Sabodala mill, is the Company's latest discovery with potential to become the second regional deposit processed through the Sabodala Mill. The new discovery, located on the Sabodala North West permit, is largely covered by a laterite plateau with little to no outcrop. The RAB program, which began in April, has been expanded to encompass the entire structural domain that may host similar styles of mineralization to the Gora deposit. The expanded program also provides additional lines that are optimized to the mineralized structural trends. To date, 1,113 RAB holes for 47,584 metres have been completed on nominal 100 x 50 metre grid.

Assays for a large number of drill holes are currently pending. However, results to date have identified a series of north-south trending targets that are related to quartz veining and alteration hosted within a granitic intrusive body. As results are received additional target trends are being identified, expanding the exploration potential at Toumboumba. Of the latest assay results, most of which were released in two press releases during the quarter, 58 RAB holes returned significant intersections over 0.5 gpt Au including:

June 13, 2011 - press release              July 11, 2011 - press release
-early RAB results                                          -RAB results
3m @ 6.13 g/t, including 1m @ 15.44 g/t           2m @ 6.65 g/t from 16m
3m @ 11.99 g/t, including 1m @ 25.2 g/t            4m @ 6.06 g/t from 8m
6m @ 18.85 g/t, including 4m @ 27.7 g/t          2m @ 32.87 g/t from 38m
                                                  2m @ 3.57 g/t from 12m
                                                  3m @ 6.34 g/t from 30m

         Recent results
           -RAB results
 4m @ 3.31 g/t from 26m
 2m @ 2.79 g/t from 20m



For full drill results to date please see the Company's website at http://terangagold2014.q4web.com/investor- relations/news-releases/.

In addition, 140 RAB holes returned intersections in the gold anomalous range (0.1 gpt Au to 0.5 gpt Au). The targets identified by the RAB program are the subject of the current RC drilling program.

To date, 49 RC holes for 8,748 metres have been completed, testing five north-south trending target zones defined by RAB drilling and historic surface gold geochemistry. RC drilling continues to return wide auriferous zones associated with hematite-carbonate-quartz alteration. Some of the most significant results, most of which were released in two press releases during the quarter, include:

June 13, 2011 - press release
 -early RC results
10m @ 2.35 g/t, including 2m @ 9.69 g/t
8m @ 5.45 g/t, including 2m @ 17.75 g/t



                         July 11, 2011 - press release
                                           -RC results
        6m @ 1.91 g/t from 17m including 1m @ 8.07 g/t
         3m @ 17.15 g/t from 39m including 1m @ 50 g/t
        6m @ 2.68 g/t from 56m including 1m @ 8.79 g/t
       3m @ 11.85 g/t from 36m including 1m @ 30.5 g/t

Recent results
-RC results - Aqua Regia
11m@5.18g/t from 37m including 1m@37.6g/t and 4m@6.23g/t from 52m including
1m@21.8g/t from SNWRC016
6m@1.24g/t from 125m from SNWRC017
4m@4.46g/t from 21m from SNWRC023
11m@1.29g/t from 52m from SNWRC027
3m@4.24g/t from 180m from SNWRC029

For full drill results to date please see the Company's website at http://terangagold2014.q4web.com/investor- relations/news-releases/.

Four diamond core holes, for a total of 1000 drill metres, are initially planned to test the tenor of mineralization at depth, and to better constrain the geometry and orientation of the targeted mineralized zones. These diamond core holes are designed to intersect gold mineralization at depths in excess of 150 vertical metres from surface. The drill core will yield valuable and detailed information on the styles of gold mineralization and associated hydrothermal alteration assemblages present at Toumboumba. This information will be used to optimize further sub-surface exploration of the area, and contribute to the Company's exploration approach in the immediate region.

The Company believes that at a minimum, Toumboumba could contain a near surface oxide resource, that may have potential for heap leach gold extraction. Significant upside remains at depth, which requires deeper drilling so that the oxide mineralization can be better traced into fresh bedrock. If the near surface mineralization continues at depth and can be confirmed in the other target zones, Toumboumba could become a significant deposit for the Company. A DD rig as well as improved RC drill capacity are scheduled to arrive for further evaluation of this new discovery.

"Toumboumba is a very exciting target with high grade veins within low-grade haloes" said Mr. Hill. "The Company has currently identified 14 areas with multiple shear zones yet to be tested."

Majiva

The Makana permit hosts the Majiva target, one of several prospects located along a twelve kilometre strike length between Majiva and Niakafiri on the ML. To date, a 5 kilometre strike length of gold- mineralized structure has been identified at Majiva.

Two diamond drill holes drilled in 2008 intersected a shear zone up to 80 metres wide with intense carbonate-silica-pyrite alteration, but at the time failed to intersect significant gold mineralization. RAB drilling in 2010 further evaluated this shear structure and identified a 2 kilometre long gold anomaly.

The Company has encountered encouraging early stage results from the first nine RC holes completed at Majiva, for a total of 1,800 metres. In total, 5,000 metres of RC drilling is planned for first pass exploration of the 5 kilometre target strike length which should be completed this fall. These holes are targeting a sub-surface gold anomaly defined by RAB drilling. The RC holes have intersected up to 50 metres of intense carbonate-silia-pyrite-albite alteration developed in basalts and felsic intrusive rocks. The alteration type is similar to what can be observed at the Niakafiri deposit on the ML, a lower grade but softer ore that can be processed through the Sabodala mill at a higher throughput rate than the harder ore from Sabodala.

The mineralization encountered requires further drilling at depth and along strike to confirm its potential.

Tourokhoto

A 23,416 metres RAB drill program has been completed with a total of 1,006 holes on the Tourokhoto target located 33km from the Sabodala mill. A total of 106 holes returned intervals above 0.5 grams per tonne ("g/t") Au and further 340 holes returned values in the range of 0.1 to 0.5 g/t Au. Results are pending for a further 54 holes.

Interpretation of the systematic RAB drilling to date identified eight coherent zones of gold anomalism. Early scout DD completed in the first quarter of 2011 identified significant structural zones which host auriferous alteration zones some of which coincide with these RAB gold trends. The targets are up to 700 metres in strike length, and are associated with the gold bearing structures identified in the early DD. Additional follow up with ground geophysical surveys, RC and DD testing is required to fully evaluate these zones.

RAB results for 54 holes are still outstanding and these are from an area which has been identified as the most prospective, based on termite mound gold geochemistry and structural interpretation of the regional aeromagnetics. RAB drilling in this area was only completed in the June quarter as the area was not accessible in late 2010 when the RAB program at Tourokhoto first started.

"This is an exciting new development at Tourokhoto, illustrating the effectiveness of our strategy of systematic RAB drilling to delineating focussed targets in the bedrock within large prospective zones of favourable geology and geochemistry" said Alan R. Hill, Chairman and CEO.

Diegoun North ("the Donut") - Cinnamon

A 19,000 metre RAB drill program at Cinnamon on the northern portion of the Diegoun target area (approximately 28 kilometres from the Sabodala mill) has been completed with 663 holes for 9,844 metres. Based on recent results received, 143 holes returned aufriferous intersections above 0.5 g/t Au. A further 95 RAB holes returned auriferous intersections in the range of 0.1 to 0.5 g/t Au. These results indicate three well defined, north east trending target zones on the eastern side of the Cinnamon area. These target zones have a strike length of up to 300 metres. IP surveying and follow up RC drill testing are planned for this area as soon as access conditions and rig availability permit.

Diegoun North ("the Donut") - Jam and Honey

The first pass RC program at Jam and Honey has been completed with 51 holes for just under 8,800 metres. In total, 40 of the 51 holes returned anomalous levels of gold above 0.5 g/t Au and the remainder returned values in the anomalous range of 0.1 to 0.5 g/t Au.

The selected intersections from Jam include:

SKRC204 2m @ 18.9 g/t Au from 26m
SKRC207 13m @ 1.65 g/t Au from 2m
SKRC216 4m @ 1.74 g/t Au from 13m

For full drill results to date please see the Company's website at http://terangagold2014.q4web.com/investor- relations/news-releases/.

The mineralisation at Jam is closely related to silica-pyrite-carbonate-albite alteration in granodiorite and is controlled by a series of north east trending structures interpreted from the aeromagnetics. These structures trend for several kilometres to the north-east where they connect up with the newly RAB- defined gold anomalies at Cinnamon.

An IP survey completed at Jam confirms the presence of a north-east trending structure and is awaiting final interpretation by the geophysical contractors. The RC drilling at Jam has been of a wide spaced, reconnaissance nature with lines 200 to 400 metres apart. Significant mineralised strike length between and along the mineralised structures remains untested. Data integration and refining of the structural understanding is in progress to define a follow up program of drilling for the coming dry season.

The selected intersections from Honey include:

SKRC225 11m @ 0.56 g/t Au from 193m
SKRC226 1m @ 9.64 g/t Au from 182m
SKRC227 5m @ 2.23 g/t Au from 70m
SKRC228 7m @ 0.65 g/t Au from 11m

For full drill results to date please see the Company's website at http://terangagold2014.q4web.com/investor-relations/news-releases/.

The mineralisation at Honey is largely associated with narrow intervals of quartz veining and minor carbonate alteration hosted in sediments. The mineralisation there also aligns with north east trending structures.

RAB and RC drilling completed on the large prospective complex at Diegoun North has led to the recognition of a well developed, auriferous north east trending structure on the eastern side of the target area. This structure trends for at least 4.5 kilometres from the Jam anomaly to the newly defined RAB gold anomalies at Cinnamon. Further drilling is required to thoroughly explore this extensive gold- bearing structure. Data review and interpretation will take place over the wet season which will lead to definition of follow-up drilling programs for the coming dry season.

There are eight other targets that are currently being explored, these targets, though early days and at various stages of the exploration process are returning encouraging results. In many cases assays are pending and some IP surveys are planned prior to planning further follow up drilling.

For further details on the geology, mineral occurrences and nature of mineralization found within the Corporations Mine License and Regional exploration programs please refer to Teranga's Prospectus filed on SEDAR November 11, 2010 as part of its initial public offering (the "Prospectus").

Review of Financial Results

Loss for the Period

For the three months ended June 30, 2011, the consolidated loss of the Company was $9.7 million, while for the nine months ended June 30, 2011 the consolidated loss totalled $3.4 million. The loss for the quarter and nine months are largely due to deliveries into the Company's hedge book reducing revenue and earnings by $15.6 million and $28 million, respectively. The loss for the quarter as compared to the two previous quarters increased as a result of an increased percentage of production delivered into hedge contracts in the June quarter rather than sold into the higher spot market. Overall, 65 percent of production in the June quarter was delivered into hedge contracts as compared to 45 percent in the prior two quarters. The loss for the three and nine month periods was also impacted by high exploration costs and stock based compensation expense.

Revenue

During the quarter ended June 30, 2011, 23,000 ounces were delivered into gold hedge contracts at $846 per ounce, representing 65 percent of gold sales for the quarter, and 12,407 ounces of gold were sold into the spot market at an average price of $1,522 per ounce resulting in an average realized price for the quarter of $1,083 per ounce. During the nine months ended June 30, 2011, 48,000 ounces were delivered into gold hedge contracts at $846 per ounce, representing 52 percent of gold sales for the period, and 43,489 ounces of gold were sold into the spot market at an average price of $1,429 per ounce resulting in an average realized price for the nine months of $1,123 per ounce. Overall, revenues were reduced by $15.6 million for the quarter and $28 million for the nine month period due to deliveries into hedge contracts. The hedge contracts were requirement as part of the project finance facility with Macquarie Bank Limited (the "Project Finance Facility") that was put in place to construct the Sabodala Mine. The Project Finance Facility was fully repaid on September 30, 2010 and the only remaining obligation under the Project Finance Facility are these hedge contracts. The obligations under the hedge contracts is expected to be extinguished by August 2013 or earlier if the Company chooses to accelerate deliveries. Higher spot gold prices during the June quarter allowed the Company to deliver a higher percentage of production into hedge contracts while still maintaining a high cash balance to fund the mill expansion and exploration program.

Cost of Sales

Cost of sales for the three-and-nine months ended June 30, 2011 totalled $33.2 million and $78.5(1)million respectively, consisting of mine production costs, realized gains on oil hedge contracts, depreciation and amortization, royalties, rehabilitation costs and inventory costs.

Administrative Expenses

Administration expenses of $2.7 million for the three months ended June 30, 2011 comprise $0.9 million for corporate employee costs, $0.1 million for audit and legal fees and $1.7 million for other administration costs. For the nine months ended June 30, 2011 corporate administration costs of $6.3 million represent mainly $1.9 million for corporate employee costs, $0.9 million for audit and legal fees, and $3.5 million for other administration costs. Corporate administration expenses are expected to average about $2.5 million per quarter.

Stock Based Compensation

During the three months ended June 30, 2011 a total of 760,000 common share stock options were granted to employees and consultants of the Company. For the nine months ended June 30, 2011 a total of 15,290,000 common share stock options were granted to directors, officers, employees and consultants. During the three months ended June 30, 2011 a total of 64,444 options were cancelled while during the nine months ended June, 2011, a total of 224,444 options were cancelled. No stock options were exercised during the three-and-nine month period ended June 30, 2011.

The estimated fair value of stock options is amortized over the period in which the options vest which is normally three years, however under IFRS the accelerated method of amortization is applied to stock based compensation which results in about 75 percent of the cost of the stock options being expensed in the first year of grant.

Net Foreign Exchange Gains

The Company generated foreign exchange gains of $1.5 million for the quarter ended June 30, 2011 and of $1.0 million for the nine months ended June 30, 2011 primarily related to realized gains from the Sabodala gold mine operating costs recorded in the local currency and translated into the US dollar functional currency.

Gold Hedging Unrealized Loss

The unrealized non-cash loss on gold hedge contracts of $0.6 million for the quarter ended June 30, 2011 resulted from an increase in the spot price of gold by $61 per ounce from the previous quarter end partially offset by 23,000 ounces delivered into gold hedge contracts during the quarter. As a result, the total mark-to-market loss of the remaining 198,500 ounces of gold under gold hedge contracts increased to $133.4 million as the average forward price of the remaining contracts of $831 per ounce is marked to the period end spot price of $1,500 per ounce. The unrealized non-cash loss of $2.1 million for the nine months ended June 30, 2011 resulted from an increase in the spot price of gold from the previous period end of $141 per ounce which was partially offset by 48,000 ounces delivered under gold hedge contracts.

Oil Hedging Unrealized Gain/ Loss

Unrealized oil hedge losses totalled $1.7 million for the three months ended June 30, 2011 resulted from a decrease in the spot price of oil by $11.3 per barrel from the previous quarter end over the remaining 140,000 barrels of fuel oil outstanding. The unrealized oil hedge gains of $1.2 million for the nine months ended June 30, 2011 resulted from an increase of $14 per barrel over the previous period end spot price of oil. The overall non-cash mark-to-market gain of the remaining 140,000 barrels of fuel oil outstanding at a hedge price of $70 per barrel compared to a $95.4 per barrel spot price at quarter end totalled $4.1 million at the end of the quarter.

Exploration and Evaluation Expenditures

Exploration and evaluation expenditures for the three-and-nine months ended June 30, 2011 totalled $8.3 million and $12.6 million respectively reflecting regional exploration costs incurred during the periods related to drill programs as well as target identification work underway.

Outlook

Gold production for the 2011 calendar year is on track to total 140,000 ounces of gold at total cash costs of $750 to $775 per ounce. Production and gross cash costs for the September quarter are expected to be lower than the June quarter, however the lower production should result in a higher cash cost on a per ounce basis. The December quarter is expected to result in significantly higher production and lower costs as mining of a higher grade zone occurs. Gold production for 2012 is expected to total 220,000 ounces of gold at total cash costs of $575 to $625 per ounce due to the completion of the mill expansion.

For 2011, capital expenditures are expected to total approximately $75 million, primarily for the mill expansion, mining equipment and capitalized mine site exploration costs. The increase from the previous guidance is due to a supply equipment contract in the amount of $14.4 million which was finalized on June 30, 2011. The equipment will be used primarily for the development of the Gora deposit. The regional exploration budget for calendar 2011 is expected to total approximately $25 million, an increase of $8 million from earlier guidance due to success at certain exploration targets that necessitated the need to increase the number of drill rigs. In total, between capitalized mine site exploration and regional exploration expenditures, the Company expects to spend approximately $33 million in calendar 2011. The mine site and regional exploration budgets could increase further if results warrant additional activities. For calendar 2011, corporate overheads, including setting up a Dakar, Senegal office are expected to total $10 million, up from earlier estimate of $8 million.

KEY STATISTICS
----------------------------------------------------------------------------
                                             3 months ended   9 months ended
                                              June 30, 2011    June 30, 2011
----------------------------------------------------------------------------
Operating results (1)
Ore mined                             ('000t)           759            2,216
Waste mined                           ('000t)         5,538           16,155
Total mined                           ('000t)         6,297           18,371
Strip ratio                        waste/ore            7.3              7.3
Ore processed                         ('000t)           650            1,845
Head grade                              (g/t)          1.81             1.93
Recovery rate                              %           89.0             90.3
Gold produced (1)                        (oz)        32,480          102,530
Gold sold                                (oz)        35,407          108,353

Average price received                  $/oz          1,083            1,156
Total cash cost (incl. royalties)       $/oz            879              766

Mining (cost/t mined)                                   2.4              2.2
Milling (cost/t milled)                                16.6             15.9
G&A (cost/t milled)                                     5.4              5.0

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Financial results (US$'000) (1)
Revenue                                              38,487          103,160
Gross profit                                          5,253           24,719
Operating cash flow                                 (10,071)           9,441
Loss per share                                        (0.04)            0.03

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                              As at June 30,
Financial position (US$'000)                                            2011
Cash and cash equivalents (2)                                         65,871
Net assets                                                           327,191
Borrowings                                                            20,106


(1) The financial results reflect results from November 23, 2010, the date
the demerger was completed while productions statistics reflect operating
results for the full three-and-nine month periods ended June 30, 2011

(2) Cash and cash equivalents includes also short term investments over 90
days and restricted cash
----------------------------------------------------------------------------


PRODUCTION AND COST SUMMARY
----------------------------------------------------------------------------
                               3 months ended June Period from Nov 23, 2010
                                          30, 2011         to June 30, 2011
----------------------------------------------------------------------------
Gold produced            oz                 32,480                   85,802
Gold sold                oz                 35,407                   91,489

Cost of sales        ($'000)                33,234                   78,441
Less: depreciation
 and amortization    ($'000)               (10,912)                 (25,313)
Less:
 rehabilitation      ($'000)                  (120)                    (316)
Add: inventory
 movement                                    9,253                   15,331
Other adjustments    ($'000)                  (330)                    (830)
                            ------------------------------------------------
                            ------------------------------------------------
Total cash cost of
 sales               ($'000)                31,125                   67,313
Total cash cost of
 sales per ounce
 sold              U.S.$/oz                    879                      737

----------------------------------------------------------------------------

CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF COMPREHENSIVE LOSS
For the three and nine months ended 30 June, 2011
(Unaudited and in US$'000 except per share amounts)

----------------------------------------------------------------------------
                                          3 months ended     9 months ended
                                           June 30, 2011      June 30, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue (1)                                       38,487            103,160
Cost of sales                                    (33,234)           (78,441)
                                      --------------------------------------
                                      --------------------------------------
Gross profit                                       5,253             24,719

Other income                                         351                648
Stock-based compensation                          (2,763)            (8,395)
Finance costs                                       (559)            (1,636)
Exploration and evaluation
 expenditures                                     (8,325)           (12,620)
Administration expenses                           (2,739)            (6,320)
Net foreign exchange gains                         1,494                985
Gold hedge unrealized losses                        (624)            (2,092)
Oil hedge unrealized (losses) / gains             (1,691)             1,173
                                      --------------------------------------
                                      --------------------------------------
                                                 (14,856)           (28,257)
Loss before tax                                   (9,603)            (3,538)
Income tax (expense) / benefit                      (127)                92
                                      --------------------------------------
                                      --------------------------------------

Loss for the period                               (9,730)            (3,446)
                                      --------------------------------------
                                      --------------------------------------

Other comprehensive loss:
Exchange differences arising on
 translation of foreign
operations                                          (451)             3,009

Loss on valuation of available for
 sale financial asset, net of tax                 (5,540)            (4,942)
                                      --------------------------------------
                                      --------------------------------------
Other comprehensive loss for the
 period                                           (5,991)            (1,933)

Total comprehensive loss for the
 period                                          (15,721)            (5,379)
                                      --------------------------------------
                                      --------------------------------------

Profit / (Loss) attributable to:
- owners of the parent                           (10,057)            (5,526)
- non-controlling interests                          327              2,080
                                      --------------------------------------
                                      --------------------------------------

Loss for the period                               (9,730)            (3,446)

Total comprehensive loss attributable
 to:
- owners of the parent                           (16,048)            (7,459)
- non-controlling interests                          327              2,080

Loss per share from operations
 attributable to the
equity holders of the Company during
 the period

- basic loss per share                             (0.04)             (0.03)
- diluted loss per share                           (0.04)             (0.03)
----------------------------------------------------------------------------

CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF FINANCIAL POSITION As at 30 June 2011
(Unaudited and in US$'000)

----------------------------------------------------------------------------
                                                        As at June 30, 2011

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current assets
Cash and cash equivalents                                            55,699
Short-term investments                                                3,172
Restricted cash                                                       7,000
Trade and other receivables                                           9,480
Inventories                                                          49,382
Financial derivative assets                                           2,275
Other assets                                                          7,833
Available for sale financial asset                                   17,038
                                                       ---------------------
                                                       ---------------------
Total current assets                                                151,879
                                                       ---------------------
                                                       ---------------------

Non-current assets
Inventories                                                          56,065
Financial derivative assets                                           1,830
Property, plant and equipment                                       209,337
Mine development expenditure                                         94,227
Intangible assets                                                       731
                                                       ---------------------
                                                       ---------------------
Total non-current assets                                            362,190
                                                       ---------------------
                                                       ---------------------

Total assets                                                        514,069
                                                       ---------------------
                                                       ---------------------

Current liabilities
Trade and other payables                                             28,878
Borrowings                                                           10,984
Financial derivative liabilities                                     52,360
Current tax liabilities                                                 283
Provisions                                                            1,889
                                                       ---------------------
                                                       ---------------------
Total current liabilities                                            94,394
                                                       ---------------------
                                                       ---------------------

Non-current liabilities
Financial derivative liabilities                                     81,080
Provisions                                                            2,569
Borrowings                                                            8,835
                                                       ---------------------
                                                       ---------------------
Total non-current liabilities                                        92,484
                                                       ---------------------
                                                       ---------------------

Total liabilities                                                   186,878
                                                       ---------------------
                                                       ---------------------

Net assets                                                          327,191
                                                       ---------------------
                                                       ---------------------

Equity
Issued capital                                                      352,881
Foreign currency translation reserve                                  3,009
Contributed surplus                                                   8,588
Investment revaluation reserve                                       (4,942)
Accumulated losses                                                  (32,862)
                                                       ---------------------
                                                       ---------------------
Equity attributable to equity holders of the parent                 326,674
Non-controlling interests                                               517
                                                       ---------------------
                                                       ---------------------

Total equity                                                        327,191
-------------------------------------------------------=====================

CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
STATEMENTS OF CHANGES IN EQUITY For the nine months ended 30 June 2011
(Unaudited and in US$'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the nine months ended June 30, 2011

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Common shares
At October 1, 2010                                                        -
  Shares issued on incorporation of the Company                           -
  Shares issued from public and private offerings                   135,005
    Less: Share issue costs                                         (16,258)
  Shares issued on the acquisition of the Sabodala gold mine and a
   regional exploration package                                     234,134
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                    352,881
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Foreign currency translation reserve
At October 1, 2010                                                        -
  Exchange difference arising on translation of foreign operations    3,009
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                      3,009
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Contributed surplus                                                       -
At October 1, 2010                                                        -
  Stock-based compensation                                            8,588
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                      8,588
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Investment revaluation reserve
At October 1, 2010                                                        -
  Change in fair value                                               (4,942)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                     (4,942)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accumulated losses
At October 1, 2010                                                        -
  Loss attributable to owners of the parent                          (5,526)
  Impact of change in accounting policy                             (27,336)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                    (32,862)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-controlling interest
At October 1, 2010                                                        -
  Non-controlling interest arising from demerger - November 23,
   2010                                                              (1,563)
  Non-controlling interest - portion of profit                        2,080
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At June 30, 2011                                                        517
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total shareholders' equity at June 30, 2011                         327,191
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CONSOLIDATED FINANCIAL STATEMENTS OF
TERANGA GOLD CORPORATION
CASH FLOW STATEMENTS
For the three and nine months ended 30 June, 2011
(Unaudited and in US$'000 except per share amounts)
----------------------------------------------------------------------------
                                                     3 months      9 months
                                                        ended         ended
                                                June 30, 2011 June 30, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash flows related to operating activities
Loss for the period                                    (9,730)       (3,446)
Depreciation                                            8,236        18,972
Amortization                                               93           248
Finance costs                                              74           183
Stock-based compensation                                2,763         8,395
Amortization of capitalized mine development
 costs                                                  2,664         6,323
Unrealized loss on gold hedge                             624         2,092
Unrealized loss / (gain) on oil hedge                   1,691        (1,173)
Income tax expense / (benefit)                            127           (92)
Changes in working capital (1)                        (16,613)      (22,061)
                                                ----------------------------
                                                ----------------------------

Net cash (used in) / provided by operating
 activities                                           (10,071)        9,441
                                                ----------------------------
                                                ----------------------------

Cash flows related to investing activities
Increase in restricted cash                                 -        (7,000)
Decrease in short-term investments                     28,728        (2,352)
Payments for purchase of property, plant and
 equipment                                            (12,469)      (19,387)
Payments made on mine development                      (3,108)       (5,117)
Payments for purchase of intangibles                     (306)         (612)
Payment for acquisition of Sabodala gold mine
 and regional land package net of cash acquired
 (2)                                                        -       (34,307)
                                                ----------------------------
                                                ----------------------------
Net cash provided by / (used in) investing
 activities                                            12,845       (68,775)
                                                ----------------------------
                                                ----------------------------


Cash flows related to financing activities
Proceeds from issuance of capital stock, net of
 issue costs                                              (90)      118,747
Payment of borrowings                                  (1,750)       (5,250)
                                                ----------------------------
                                                ----------------------------
Net cash (used in) / provided by financing
 activities                                            (1,840)      113,497
                                                ----------------------------
                                                ----------------------------

Net increase in cash and cash equivalents held            934        54,163
                                                ----------------------------
                                                ----------------------------
Cash and cash equivalents at the beginning of
 financial period                                      54,673             -
Effect of exchange rates on cash holdings in
 foreign currencies                                        92         1,536
Cash and cash equivalent at the end of financial
 period                                                55,699        55,699
------------------------------------------------=============-==============

About TERANGA

Teranga Gold Corporation is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX:TGZ) and Australian Securities Exchange (ASX:TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.

Teranga was created to acquire indirectly the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa, from Mineral Deposits Limited. Management believes the mine operation, together with the Company's prospective 1,488 km2 land package, provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Company's existing mill.

The Sabodala Gold Operation, which came into operation in 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali.

The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.

Quality Control/Assurance Program

Please refer to Teranga's Prospectus for specific details on the Corporation's Quality Control/assurance program as well as data verification procedures.

Forward Looking Statements

Certain information included in this press release, including any information as to the Company's strategy, projects, exploration programs, joint venture ownership positions, plans, future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "believe", "expect", "will", "intend", "anticipate", "project", "plan", "estimate", "on track" and similar expressions identify forward looking statements. Such forward-looking statements are necessarily based upon a number of estimates, assumptions, opinions and analysis made by management in light of its experience that, while considered reasonable, may turn out to be incorrect and involve known and unknown risks, uncertainties and other factors, in each case that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. Such forward-looking statements are not guarantees of future performance.

These assumptions, risks, uncertainties and other factors include, but are not limited to: assumptions regarding general business and economic conditions; conditions in financial markets and the future financial performance of the company; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the supply and demand for, deliveries of, and the level and volatility of the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets, including changes in U.S. dollar and CFA Franc interest rates; risks arising from holding derivative instruments; adverse changes in our credit rating; level of indebtedness and liquidity; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business, as well as other risks and uncertainties which are more fully described in the Company's prospectus dated November 11, 2010 and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

Competent Persons Statement

The scientific and technical information contained in this release relating to exploration activities within the mining license is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow with The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. He is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as defined in NI43- 101. Mr. Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Van Brunt is a full-time employee of Teranga and not independent of Teranga within the meaning of NI43-101.

The scientific and technical information contained in this release relating to the regional exploration is based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a Qualified Person as defined in NI43-101. Mr. Pawlitschek has consented to the inclusion of this information in the form and context in which it appears in this release. Mr. Pawlitschek is a full-time employee of Teranga and not independent of Teranga within the meaning of NI43-101.

The latest grade estimates as presented have been classified as a combination of Measured, Indicated and Inferred Mineral Resources in accordance with CIM Definitions (2005) resource reporting classification guidelines and reconciled to the JORC Code (2004).

Mssrs. Van Brunt and Pawlitschek have reviewed and verified the data contained in this press release, including sampling, analytical and test data underlying the estimates provided. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols.

(1)The amount of cost of sales reflects operating results from November 23, 2010, the date the Demerger was completed.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Teranga Gold Corporation
        Kathy Sipos
        Vice-President of Investor Relations
        +1 416-594-0000
        ksipos@terangagold.com

Source: Teranga Gold Corporation