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Teranga Gold Corporation: Exploration on the Mine License Produces 130 Metres at 1.2 gpt Gold and 45 Metres at 1.6 gpt Gold

Nov 23, 2011

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2011) - Teranga Gold Corporation (TSX:TGZ)(ASX:TGZ) ("Teranga" or "the Company") is pleased to provide the most recent exploration results on its Mine License.

Highlight:

--  Exploration north of the Sabodala Pit confirms the potential to expand
    the pit to depth and to the north - drilling intersected significant
    widths of mineralization, including hole SBDH150DD of 130 metres at 1.2
    grams of gold per tonne ("gpt") and SBDH153D of 45 metres at 1.6 gpt
    included in multiple mineralized zones, on the Main Flat Extension just
    outside the current pit design - the zones remain open down plunge and
    to the northwest. These grades are consistent with the average reserve
    grade of 1.5 gpt at Sabodala.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/teranga_f1.jpg

"We are very encouraged with the significant widths of mineralization seen in our latest drill results which make us very confident that we will be able to double our reserves on the Mine License in the next 12-18 months. Beyond this, we expect to add ounces from our Regional Land Package where we are conducting an aggressive $25million exploration program," said Mr. Alan R. Hill , Chairman and Chief Executive Officer.

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      MAIN FLAT EXTENSION: RC & DIAMOND DRILLING, AQUA REGIA RESULTS
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       Intercept with cut-off 0.2g/t Au and max 2m internal dilution
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HOLE ID                                     FROM (m)       INTERSECTION(1)
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SBDH150DD                                       331m        130m @ 1.2 g/t
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                                          Including:
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                                                373m          4m @ 7.2 g/t
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                                                433m          3m @ 5.7 g/t
                              --------------------------------------------
                                                459m          2m @ 8.4 g/t
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SBDH153D(i)                                     246m         45m @ 1.6 g/t
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                                          Including:
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                                                263m          3m @ 6.8 g/t
                              --------------------------------------------
                                                276m          9m @ 3.1 g/t
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SBRC1082D(iii)                                  443m        160m @ 1.1 g/t
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SBRC1081D(iii)                                  509m         67m @ 1.2 g/t
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SBRC308D(iii)                                   334m         80m @ 1.3 g/t
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SBRC895D(iii)                                   371m         36m @ 1.6 g/t
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(1) True widths to be determined
(i) waiting diamond tail
(iii) previously released

All assays are determined using aqua regia in the on-site SGS lab at Sabodala. Pulps are being systematically sent to Kayes, Mali for fire assay as confirmation of the Sabodala lab results.

Mine License Exploration (1)

Exploration results in 2011 support management's belief of the potential to expand proven (approx. 1Moz) and probable (approx. 0.5Moz) reserves from 1.5 million ounces of gold to between 2.5 to 3.5 million ounces of gold from the Sabodala Mining License ("ML") over the next 12 to 18 months. This exploration target assumes the identification of an additional 25-30 million tonnes of gold mineralization at grades of between 1.5 to 1.9gpt. The larger reserve base is expected to result from the success of deepening the Sabodala pit to the north along the Main Flat Extension, extension of the Masato pit onto the ML, conversion of Niakafiri resources to reserves as well as adding reserves below these three large open pits. On the ML alone, this would increase the mine life to approximately 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 a minimum of 6 drill rigs will be testing new targets as well as converting existing resources to reserves at an estimated cost of $10 million in 2011 and at least an additional $10 million in 2012.

Main Flat Extension ("MFE") - Figure 1

The Main Flat Extension is one of the principal gold hosts in the Sabodala deposit. The MFE 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 MFE immediately adjacent to the current ultimate pit, at a depth of 400 metres (about 100 metres below the current design pit bottom and accessible to open pit mining), confirms the continuation of the mineralized zone with further drilling planned. The MFE remains open down plunge and to the northwest.

An additional 10,000 metres of drilling is planned on the MFE. Latest results include drill hole SBDH150DD, a vertical diamond hole collared on section 20810N at Sabodala has intersected 130m of 1.2 gpt from 331metres down the hole. Drill hole SBDH153RC, a vertical hole collared on section 20730N at Sabodala has intersected 45metres of 1.6 gpt from 246metres down the hole, this hole is currently being diamond tailed to depth. These results continue to in-fill a broad zone of mineralization related to the Main Flat Extension. Higher grade zones are cut within these broad ore zones.

The goal of the MFE program is to add 250,000 to 500,000 ounces of gold to the open pit mineable reserves, as well as potentially a similar amount to underground reserves, in 2012.(2)

This update is part of the Company's $35 - $40 million exploration program planned for 2011, covering both the Mine License and Regional Land Package, representing the first phase of a multi-year exploration program to test the approximate 100 geochemical anomalies contained in 38 drill targets (10 on the Mine License and 28 on the Regional Land Package) identified to date as well as to identify new targets.

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 the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa. 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.

Forward Looking Statements

Certain information contained in this report, including any information on Teranga's plans or anticipated future results, future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. Teranga cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Teranga to be materially different from the company's estimated future results, performance or achievements expressed or implied by those forward-looking statements. These factors include the inherent risks involved in exploration, development and operations of mineral properties, changes in economic conditions, changes in the worldwide price of gold, silver fuel, electricity and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga.

Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.

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 information in this release that relates to exploration results, targets, mineral resources or ore reserves within the SGO Mining License is based on information compiled by Mr. Bruce Van Brunt , who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and he is non-independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves". Mr. Van Brunt consents to the inclusion of this information in the form and context in which it appears in this presentation.

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.

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(1) While management has confidence in its projections based on exploration
work done to date, the potential quantity and grade disclosed herein is
conceptual in nature, and there has been insufficient exploration to define
a mineral resource, therefore it is uncertain if further exploration will
result in the targets being delineated as a mineral resource.

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(2) While management has confidence in its projections based on exploration
work done to date, the potential quantity and grade disclosed herein is
conceptual in nature, and there has been insufficient exploration to define
a mineral resource, therefore it is uncertain if further exploration will
result in the targets being delineated as a mineral resource.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Teranga Gold Corporation
        Kathy Sipos
        Vice-President of Investor Relations
        +1 416-594-0000
        ksipos@terangagold.com
        terangagold2014.q4web.com

Source: Teranga Gold Corporation