Teranga Gold Update to Wahgnion Gold Operation Mine Plan Increases Average Annual Production by 25%

Revised production schedule reflects higher plant throughput capability; raising 2020 guidance 
(All amounts are in U.S. dollars unless otherwise stated)TORONTO, Aug. 06, 2020 (GLOBE NEWSWIRE) — Teranga Gold Corporation (“Teranga” or the “Company”) (TSX: TGZ) (OTCQX: TGCDF) is pleased to report an updated life of mine (“LOM”) plan and new 2020 guidance for its Wahgnion Gold Operation (“Wahgnion”), located in southwest Burkina Faso, West Africa.Since achieving commercial production on November 1, 2019, Wahgnion’s processing plant has performed approximately 25% above nameplate capacity for throughput and gold recovery, resulting in higher than planned production. As such, Teranga has updated the LOM plan to accommodate the higher plant throughput capability, increasing Wahgnion’s average annual production by 25% and reducing the mine life to 10 years. With a goal of extending the mine life to 15 years, Teranga has commenced a multi-year drilling and exploration campaign around three of the existing deposit areas and at more than a dozen promising targets at Wahgnion.Teranga has also increased Wahgnion’s 2020 guidance for gold production to between 150,000 and 165,000 ounces, up from earlier guidance of 130,000 to 140,000 ounces. The higher guidance for 2020 is based on mill throughput of between 3.0Mtpa and 3.2Mtpa and total material movement of between 22Mtpa and 26Mtpa.“The updated life of mine plan is very good news for Wahgnion, and for Teranga overall,” said Richard Young, President and CEO. “With production averaging about 150,000 ounces of gold per year through 2025 at reasonable costs and at current gold prices, we expect to generate significantly more net cash flow from Wahgnion in the coming years, compared to the original feasibility study.”Mr. Young added: “The Wahgnion update further demonstrates our team’s exploration, development and operating expertise, which we will leverage at the newly integrated Sabodala-Massawa complex and across our pipeline of early to advanced stage exploration properties in West Africa.”Updated Wahgnion LOM Highlights* Net cash flow after minority interest“We are extremely pleased with the results of the Wahgnion life of mine plan update, with the confirmation of sustainable higher plant throughput rates and the corresponding increase in production,” said Paul Chawrun, Chief Operating Officer. “We are also confident in Wahgnion’s potential to increase resources and ultimately reserves in the coming years. Our reserve development drill program will focus on Nogbele, Fourkoura and Stinger, which are all near-mill deposits that demonstrate room for expansion, as well as at over a dozen regional prospects that have undergone limited drilling and present further upside.”Wahgnion’s priority exploration prospects demonstrate favourable lithology and structural characteristics with positive geochemical and geophysical signatures similar to the known deposits comprising the current reserve base.Project Return Sensitivity Analysis (2)
(In US$ Millions)

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