Teranga Gold Files Updated Technical Report for Sabodala

Extends Mine Life to 14 Years

Increases Gold Production for Next Five Years by 20% to More Than 1 Million Ounces,
an Average of More Than 200,000 Ounces per Year Through 2022

(All amounts are in U.S. dollars unless otherwise stated)

TORONTO, Aug.30, 2017(GLOBE NEWSWIRE) -- Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ) (ASX:TGZ) announces the filing of a technical report pursuant to National Instrument Standards of Disclosure for Mineral Projects 43-101 ("NI 43-101") for its Sabodala gold mine in Senegal, West Africa (the "Sabodala Technical Report"). The Sabodala Technical Report, which was prepared by Teranga and Roscoe Postle Associates Inc., conforms to NI 43-101 and supports the updated mineral reserves estimate and life of mine plan released on July 19, 2017. A copy of the Sabodala Technical Report has been filed on SEDAR at www.sedar.com and posted on the Company's website at www.terangagold.com.

As previously announced, the Company's proven and probable reserves at Sabodala increased to 2.7 million ounces of gold representing an increase of more than 400,000 ounces over the previous mineral reserves estimate.The majority of the new reserves come from the Niakafiri deposit, which is located less than five kilometres from the Sabodala process plant. The Sabodala mine plan has accordingly been re-sequenced to bring forward the development of the Niakafiri open pit deposits and defer underground development, improving Teranga's five-year production and cash flow profile.

"We're pleased with the update to Sabodala's life of mine plan," stated Richard Young, President and Chief Executive Officer of Teranga. "We have extended our mine life to 14 years and improved our five-year profile.Between 2018 and 2022, Sabodala's gold production is expected to increase by 20% to more than one million ounces¹ and generate a total of $230 million in free cash flow², approximately two times the amount anticipated in the previous plan filed eighteen months ago."

Mr. Young continued, "We will continue with our multi-year drilling program intended to further define near surface resources and reserves on the prospective Niakafiri trend."

Highlights of the Sabodala Technical Report

*See Non-IFRS Performance Measures section of this release.

Non-IFRS Financial Performance Measures

The Company has included non-IFRS measures in this document, including "free cash flow", "total cash cost per ounce of gold sold" and "all-in sustaining costs per ounce".The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Total cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measure of other companies. The World Gold Council ("WGC") definition of all-in sustaining costs seeks to extend the definition of total cash costs by adding corporate general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. All-in sustaining cost excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company's overall profitability. Life of mine total cash costs and all-in sustaining costs figures used in this press release are before cash/non-cash inventory movements and amortized advanced royalty costs, and exclude any allocation of corporate overheads.Other companies may calculate this measure differently. The Company calculates free cash flow as net cash flow provided by operating activities less sustaining capital expenditures.The Company believes this to be a useful indicator of its ability to generate cash for growth initiatives.Other companies may calculate this measure differently.

For more information regarding these measures, please refer to the Company's 2016 Management's Discussion and Analysis accessible on the Company's website at www.terangagold.com.

Endnotes

1. This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as disclosed in the NI 43-101 filed on www.sedar.com on August 30, 2017 and also accessible on the Company's website at www.terangagold.com.
2. For Teranga, free cash flow for the next five years are derived from the Company's NI 43-101 Technical Report filed on SEDAR as of August 30, 2017 and are determined as follows: Forecasted revenues from production over 2018 to 2022 total $1,329 million, less all-in sustaining costs of $941 million, less the costs of the Franco-Nevada gold stream of $83 million, less taxes, interest and other of $75 million for free cash flows of $230 million (See Table 6 herein).
3. Mineral Reserves and Mineral Resources estimates as at June 30, 2017 as per Company disclosure. M&I resources are inclusive of reserves. For more information regarding Teranga Gold's Mineral Reserves and Resources, please refer to Teranga Gold's 2017 Second Quarter Report accessible on the Company's website at www.terangagold.com.
4. This forecast financial information is based on the following material assumptions: gold price: $1,250 per ounce; light fuel oil price $0.81/L; heavy fuel oil price $0.46/L; Euro:USD exchange rate of 1:10.1.
5. Community resettlement activities are ongoing alongside the drilling evaluation program, with community site selection activities and household and land survey team mobilization in progress.

Competent and Qualified Persons Statement

The information contained in this document that relates to Minerals Resources Estimates and Mineral Reserves Estimates has been extracted from the announcement dated 19 July 2017 "Teranga Gold Increases Sabodala's Reserve Base to 2.7 Million Ounces: Adds More than 400,000 Ounces of Gold and Improves Five-Year Production and Cash Flow Profile". The announcement is available to be viewed on the Company's website at www.terangagold.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources and Mineral Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcement.

The technical information contained in the original market announcement and this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101.However, he is a "Qualified Person" as defined in NI 43-101. Mr. Ling has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code"). Mr. Ling is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.Mr. Ling has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.

The technical information contained in the original market announcement and this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this document of the matters based on her compiled information in the form and context in which it appears in this document.

The technical information contained in the original market announcement and this document relating to mineral processing, metallurgical testing and recovery methods is based on, and fairly represents, information compiled by Dr. Kathleen Ann Altman. Kathleen Ann Altman, Ph.D., P.E., is a Licensed Professional Engineer in the State of Colorado and a Qualified Professional Member of the Mining and Metallurgical Society of America, which are currently included as "Recognized Overseas Professional Organizations" in a list promulgated by the ASX from time to time. Ms. Altman is independent of Teranga and is a "Qualified Person" as defined in NI 43-101 and a "competent person" as defined in the 2012 Edition of the JORC Code. Ms. Altman has sufficient experience relevant to the mineralization and type of process under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms. Altman has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.

Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Mr. Mann has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr. Mann is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this news release relating exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The core and RC samples are prepared and assayed by atomic absorption analysis at the SGS laboratory located at the Sabodala site. A portion of samples is submitted for check fire assay analysis at the ALS Chemex laboratory in Johannesburg, South Africa. Quality assurance and quality control ("QA/QC") procedures include the systematic insertion of blanks, standards and duplicates into the sample stream. Mr. Mann has consented to the inclusion in this news release of the matters based on his compiled information in the form and context in which it appears herein.

The technical information contained in the original market announcement and this document relating to mineral processing, metallurgical testing and recovery methods is based on, and fairly represents, information compiled by Dr. Kathleen Ann Altman. Kathleen Ann Altman, Ph.D., P.E., is a Licensed Professional Engineer in the State of Colorado and a Qualified Professional Member of the Mining and Metallurgical Society of America, which are currently included as "Recognized Overseas Professional Organizations" in a list promulgated by the ASX from time to time. Ms. Altman is independent of Teranga and is a "Qualified Person" as defined in NI 43-101 and a "competent person" as defined in the 2012 Edition of the JORC Code. Ms. Altman has sufficient experience relevant to the mineralization and type of process under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms. Altman has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.

Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves. See the Appendix for the JORC Code explanations relating to the results in this press release.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), which reflects management's expectations regarding Teranga's future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as "potential", "belief", "believe", "expects", "estimates", "plans", "anticipated", "ability" and similar expressions or statements that certain actions, events or results "may", "should", "work to" or "will" have been used to identify such forward looking information. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and anticipated courses of action. Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking statements. Such forward-looking statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserves and mineral resources estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, community resettlement within anticipated timeline, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements.

The forward-looking statements and forward-looking information in this news release include without limitation, statements regarding (i) potential upside and improved economics for Sabodala; (ii) anticipated rates of conversion of inferred resources into reserves; (iii) objective to increase the mine life beyond 14 years; and (iv) anticipated free cash flows of $230 million from Sabodala over the period 2018 to 2022 and total LOM free cash flows.

In addition, all of the results of the Sabodala Technical Report constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Sabodala Technical Report.These include statements regarding (i) estimated all-in sustaining costs; (ii) capital cost estimates; (iii) proposed mining plans and methods; and (iv) a mine life estimate of 14 years.

Readers are cautioned that actual results may vary from those presented.

The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold 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, as well as other risks and uncertainties which are more fully described in Teranga's Annual Information Form dated March 30, 2017, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise.

About Teranga

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of more than 5,000km² of land located on prospective gold belts.Since its initial public offering in 2010, Teranga has produced more than 1.2 million ounces of gold from its operations in Senegal, which as of June 30, 2017 had a reserve base of 2.7 million ounces of gold.Focused on diversification and growth, the Company is advancing its Banfora development project and conducting extensive exploration programs in three countries: Burkina Faso, Senegal and C??te d'Ivoire.Teranga has a strong balance sheet and the financial flexibility to grow its business.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with the highest international standards and aims to act as a catalyst for sustainable economic, environmental, and community development as it strives to create value for all of its stakeholders.Teranga is a member of the United Nations Global Compact and a leading member of the multi-stakeholder group responsible for the submission of the first Senegalese Extractive Industries Transparency Initiative revenue report. The Company's responsibility report, is available at www.terangagold.com/responsibilityreport and is prepared in accordance with its commitments under the United Nations Global Compact and in alignment with the Global Reporting Initiative guidelines.

APPENDIX

Table 1: Open Pit and Underground Mineral Resources Summary as at June 30, 2017

Notes for Mineral Resources Estimates

1. CIM definitions were followed for Mineral Resources.
2. Open pit oxide Mineral Resources are estimated at a cut-off grade of 0.35 g/t Au, except for Gora and Marougou at 0.48 g/t Au.
3. Open pit transition and fresh rock Mineral Resources are estimated at a cut-off grade of 0.40 g/t Au, except for Gora and Marougou at 0.55 g/t Au.
4. Underground Mineral Resources are estimated at a cut-off grade of 2.00 g/t Au.
5. Measured Resources at Sabodala include stockpiles which total 7.2 Mt at 0.75 g/t Au for 174,000 oz.
6. Measured Resources at Masato include stockpiles which total 4.2 Mt at 0.68 g/t Au for 92,000 oz.
7. Measured Resources at Gora include stockpiles which total 0.4 Mt at 1.28 g/t Au for 15,000 oz.
8. Measured Resources at Golouma include stockpiles which total 0.04 Mt at 1.38 g/t Au for 2,000 oz.
9. Measured Resources at Kerekounda include stockpiles which total 0.03 Mt at 3.30 g/t Au for 3,000 oz.
10. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au.
11. Mineral Resources are inclusive of Mineral Reserves.
12. Open pit shells were used to constrain open pit resources.
13. Mineral Resources are estimated using a gold price of US$1,450 per ounce.
14. Sum of individual amounts may not equal due to rounding.

Table 2: Open Pit and Underground Mineral Reserves Summary as at June 30, 2017

Notes for Mineral Reserves Estimates

1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserve cut-off grades range from 0.38 g/t to 0.57 g/t Au for oxide and 0.44 g/t to 0.63 g/t Au for fresh rock based on a $1,200/oz gold price.
3. Underground Mineral Reserve cut-off grades range from 2.3 g/t to 2.6 g/t Au based on a $1,200/oz gold price.
4. Mineral Reserves account for mining dilution and mining ore loss.
5. Proven Mineral Reserves are based on Measured Mineral Resources only.
6. Probable Mineral Reserves are based on Indicated Mineral Resources only.
7. Sum of individual amounts may not equal due to rounding.
8. The Niakafiri East and West deposits are adjacent to the Sabodala Village and relocation of at least some portion of the village will be required which will necessitate a negotiated resettlement program with the affected community members.

Table 3: Life of Mine Plan (July 1, 2017 TO H1 2031)

Notes to Life of Mine:

1. Sum of individual amounts may not equal due to rounding.
2. This production guidance is based on existing proven and probable ore reserves from the Sabodala mining license as at June 30, 2017.
3. Stockpile balances at June 30, 2017 included 11.8 Mt at 0.75 g/t for 0.28 million contained ounces.

Table 4: Life of Mine Capital Expenditures

Table 5: Life of Mine Operating Costs

Notes to Life of Mine Operating Costs:

1. Excludes any deferred stripping adjustments beyond 2017.
2. Royalties include Government of Senegal royalties on total production and the NSR royalty due to Axmin on Gora production.
3. Total cash costs per ounce and all-in sustaining costs per ounce are non-IFRS financial measures and do not have a standard meaning under IFRS.Total cash costs per ounce and all-in sustaining costs per ounce are before cash/non-cash inventory movements and amortized advanced royalty costs, and excludes allocation of corporate overheads. Please refer to non-IFRS Performance Measures.

This production guidance is based on existing proven and probable reserves only from the Sabodala mining licence as disclosed in the Reserves and Resources section of the NI 43-101 Sabodala Project Technical Report filed on www.SEDAR.com on August 30, 2017.

Key assumptions: Gold spot price/ounce - US$1,250, Light fuel oil - US$0.81/litre, Heavy fuel oil - US$0.46/litre, US/Euro exchange rate - $1.10.

Table 6: Life of Mine Cash Flows*

Notes to Life of Mine Cash Flows:

* Excludes any allocation of corporate overheads.

1. Other items include working capital, advanced royalty costs, government social fund, value added tax refunds, closure costs, plant residual value, regional office costs, CSR costs, and regional exploration costs.

Contact Information 
Richard Young						
President & CEO 					
T: +1 416-594-0000 | E: ryoung@terangagold.com

Trish Moran
Head of Investor Relations
T: +1 416-607-4507 | E: tmoran@terangagold.com