Teranga Gold Files Technical Report for Sabodala

TORONTO, ONTARIO--(Marketwired - March 23, 2016) -

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

Teranga Gold Corporation ("Teranga" or the "Company") (TGZ.TO)(TGZ.TO) announces the filing of a National Instrument 43-101 Technical Report (the "Technical Report"), supporting the Company's updated life of mine ("LOM") plan released on January 29, 2016. The Technical Report titled "Technical Report on the Sabodala Project, Senegal, West Africa", which was prepared by Teranga and RPA Inc. and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects, has been filed on SEDAR at www.sedar.com and on the Company's website at www.terangagold.com.

"A long-life, low-cost reserve base and strong cash flow underpin our new updated life of mine plan which projects undiscounted cash flows of $549 million⁽¹⁾," said Richard Young, President and Chief Executive Officer. "We believe the upside potential on this base case plan is significant. With the only operating mill in Senegal and a large land package on an emerging world-class gold belt, we are focused on continuing to convert resources to reserves and to make new discoveries. Since our IPO at the end of 2010, we have increased our reserve base net of five years' production, by 80 per cent, through acquisition and exploration."

Highlights of the Technical Report

• Large, 13.5-year mine life

Open pit and underground mineral resources and reserves summary			Au		Grade
(December 31, 2015)(2)			(Moz)		(g/t Au)
Proven and Probable Reserves (2P) at $1,100/oz Au			2.63		1.38
	Open Pit*		1.90		1.41
	Underground*		0.35		5.01
	Stockpiles		0.39		0.79
Measured and Indicated Resources (inclusive of Reserves)			4.44		1.62
Inferred Resources			0.94		1.92
*Average mined grade is 1.59 g/t Au for both open pit and underground reserves.
Note: Refer to Appendix 1 and Appendix 2 for full Mineral Reserve and Resource tables.

• Solid LOM production profile with gold production expected to average over 200,000 ounces per annum through 2024. Sequencing of multiple open pits designed to maximize annual cash flow at an $1,100 gold price per ounce⁽³⁾.

• LOM all-in sustaining costs of $887 per ounce⁽⁴⁾ and, when including the cost of the Franco-Nevada gold stream, $960 per ounce⁽⁴⁾. Low sustaining capex of less than $10 million per annum over LOM.

• Strong cash flow of $240 per ounce⁽⁵⁾ at a $1,200 per ounce gold price.

• Significant organic growth potential on emerging world-class gold belt where more than 50 million ounces have been identified⁽⁶⁾.

Endnotes

1. For Teranga, life of mine cash flows from the Sabodala project are derived from the Company's NI 43-101 Technical Report filed on Sedar as of March 23, 2016 and are determined as follows: Forecasted revenues from production over the life of mine total $2,830 million (See Appendix 3 - Life of Mine Plan - 215,000 ounces at $1,100 per ounce and 2,154,000 ounces at $1,200 per ounce, see also Table 16-8 of the Technical Report on page 16-14) less anticipated life of mine all-in sustaining cash costs of $2,281 million (See Appendix 5 herein and Table 21-8 on page 21-15 of the Technical Report) for undiscounted cash flows totalling $549 million before interest payments, income tax payments, repayment of debt, working capital, closure costs and dividends. On a discounted basis the present value of these life of mine cash flows would be $376 million at 5% and $307 million at 8%. Using an exchange rate of 0.7USD:1CAD, undiscounted life of mine cash flows total C$784 million, and on a discounted basis, C$537 million at 5% and C$439 million at 8%.
   
   

2. Mineral Reserves and Mineral Resources estimates as at December 31, 2015 as per Company disclosure. For more information regarding Teranga Gold's Mineral Reserves and Resources, please refer to Teranga Gold's December Quarter and Year-end 2015 Report accessible on the Company's website at www.terangagold.com.
   
   

3. This production guidance is based on existing proven and probable reserves only from the Sabodala mining license as disclosed in Teranga Gold's December Quarter and Year-end 2015 Report accessible on the Company's website at www.terangagold.com.
   
   

4. 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 release are before stockpile inventory value adjustments and government waiver accruals. For more information regarding these measures, please refer to the Company's 2015 Annual Management's Discussion and Analysis accessible on the Company's website at www.terangagold.com.
   
   

5. Cash flow per ounce is based on the Company's life of mine average all-in sustaining costs as set out in the Company's most recent NI 43-101 Technical Report before income tax payments, interest payments, debt repayments, closure costs, dividends and working capital deducted against a forecast gold price of $1,200 per ounce for 2017 and beyond.
   
   

6. Identified ounces on the Birimian greenstone belt, which straddles the border of Senegal and Mali, West Africa, refers to gold ounces historically mined in addition to gold ounces currently reported as Measured and Indicated Resources, as available on GFMS Thomson Reuters and the latest company reserve and resource statements as of March 23, 2016.
   
   

Competent and Qualified Persons Statement

The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. William Paul Chawrun, 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. Chawrun 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. Chawrun has sufficient experience which is relevant to the style of mineralization 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". Mr. Chawrun is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Chawrun has consented to the inclusion in this Report of the matters based on his compiled information in the form and context in which it appears in this Report.

The technical information contained in this Report 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 mineralization 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 "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". 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 Report of the matters based on her compiled information in the form and context in which it appears in this Report.

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 mineralization 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". 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 RC samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. 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 this document relating to the underground mineral reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, 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. Sepp 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 "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Sepp has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity 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". Mr. Sepp has consented to the inclusion in this Report of the matters based on his compiled information in the form and context in which it appears in the Technical Report.

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 2012 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 2012 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.

Forward Looking Statements

This release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan, anticipated 2016 results, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results, and the completion of construction of the Gora deposit related thereto. Such 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. These assumptions include, among other things, the ability to obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. 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 the revised Company's Annual Information Form dated September 1, 2015, and in other company filings 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.

About Teranga

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

Teranga'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 Senegal and 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. For more information, please refer to www.terangagold.com.

APPENDICES

APPENDIX 1: Open Pit and Underground Mineral Resources Summary as at December 31, 2015

Deposit		Domain		Measured						Indicated						Measured and Indicated						Inferred
				Tonnes		Grade		Au		Tonnes		Grade		Au		Tonnes		Grade		Au		Tonnes		Grade		Au
				('000s)		(g/t Au)		('000s)		('000s)		(g/t Au)		('000s)		('000s)		(g/t Au)		('000s)		('000s)		(g/t Au)		('000s)
Sabodala		Open Pit		13,742		1.13		497		6,488		1.59		332		20,230		1.28		829		2,525		1.23		100
		Underground								1,631		3.65		191		1,631		3.65		191		460		3.60		53
		Combined		13,742		1.13		497		8,119		2.01		524		21,861		1.45		1,021		2,985		1.60		153
Gora		Open Pit		466		4.55		68		1,083		6.11		213		1,549		5.64		281		53		4.95		8
		Underground								315		5.14		52		315		5.14		52		59		4.83		9
		Combined		466		4.55		68		1,398		5.89		265		1,864		5.56		333		113		4.88		18
Niakafiri Main		Open Pit		4,909		1.33		210		7,222		0.98		228		12,131		1.12		438		2,472		1.09		87
		Underground																				184		2.51		15
		Combined		4,909		1.33		210		7,222		0.98		228		12,131		1.12		438		2,656		1.19		102
Niakafiri West		Open Pit																				2,566		1.29		107
		Underground																				90		2.82		8
		Combined																				2,656		1.34		115
Soukhoto		Open Pit																				550		1.46		26
		Underground
		Combined																				550		1.46		26
Diadiako		Open Pit																				178		1.27		7
		Underground																				663		2.89		61
		Combined																				841		2.54		69
Subtotal Sabodala ML		Open Pit		19,117		1.26		776		14,793		1.62		773		33,910		1.42		1,548		8,344		1.25		335
		Underground								1,947		3.89		243		1,947		3.89		243		1,456		3.14		147
		Combined		19,117		1.26		776		16,740		1.89		1,016		35,857		1.55		1,792		9,800		1.53		482
Masato		Open Pit		5,894		0.79		150		22,617		1.16		844		28,511		1.08		994
		Underground								1,163		2.75		103		1,163		2.75		103		1,984		2.85		182
		Combined		5,894		0.79		150		23,780		1.24		947		29,674		1.15		1,097		1,984		2.85		182
Golouma		Open Pit								6,800		2.98		653		6,800		2.98		653		88		2.46		7
		Underground								2,134		4.09		280		2,134		4.09		280		854		3.66		100
		Combined								8,934		3.25		933		8,934		3.25		933		942		3.55		107
Kerekounda		Open Pit								1,255		4.28		173		1,255		4.28		173
		Underground								499		4.88		78		499		4.88		78		235		5.70		43
		Combined								1,755		4.45		251		1,755		4.45		251		235		5.70		43
Maki Medina		Open Pit								2,112		1.22		83		2,112		1.22		83		114		0.81		3
		Underground								109		2.71		10		109		2.71		10		85		2.54		7
		Combined								2,221		1.30		93		2,221		1.30		93		199		1.55		10
Niakafiri SW		Open Pit								770		0.81		20		770		0.81		20		30		0.67		1
		Underground
		Combined								770		0.81		20		770		0.81		20		30		0.67		1
Niakafiri SE		Open Pit								4,439		0.98		140		4,439		0.98		140		162		0.96		5
		Underground								73		2.60		6		73		2.60		6		16		2.64		1
		Combined								4,512		1.01		146		4,512		1.01		146		177		1.11		6
Kinemba		Open Pit								24		1.06		1		24		1.06		1		91		0.95		3
		Underground																				56		2.52		5
		Combined								24		1.06		1		24		1.06		1		147		1.55		7
Kobokoto		Open Pit								842		1.02		28		842		1.02		28		335		0.86		9
		Underground
		Combined								842		1.02		28		842		1.02		28		335		0.86		9
Koulouqwinde		Open Pit																				230		1.42		11
		Underground																				60		2.67		5
		Combined																				290		1.68		16
Kourouloulou		Open Pit								96		11.51		36		96		11.51		36		22		6.71		5
		Underground								59		9.15		18		59		9.15		18		86		13.58		38
		Combined								156		10.61		53		156		10.61		53		108		12.18		42
Kouroundi		Open Pit								67		0.93		2		67		0.93		2		42		0.74		1
		Underground
		Combined								67		0.93		2		67		0.93		2		42		0.74		1
Koutouniokolla		Open Pit																				85		1.58		4
		Underground																				22		2.54		2
		Combined																				108		1.78		6
Mamasato		Open Pit								560		1.45		26		560		1.45		26		305		1.25		12
		Underground																				42		2.32		3
		Combined								560		1.45		26		560		1.45		26		347		1.38		15
Sekoto		Open Pit																				485		0.89		14
		Underground																				25		2.11		2
		Combined																				510		0.95		16
Subtotal Somigol ML		Open Pit		5,894		0.79		150		39,584		1.58		2,005		45,478		1.47		2,155		1,989		1.16		74
		Underground								4,038		3.81		495		4,038		3.81		495		3,465		3.48		387
		Combined		5,894		0.79		150		43,622		1.78		2,500		49,516		1.66		2,650		5,454		2.63		462
Total Sabodala + Somigol		Open Pit		25,011		1.15		926		54,377		1.59		2,777		79,388		1.45		3,703		10,333		1.23		409
		Underground								5,985		3.84		738		5,985		3.84		738		4,921		3.38		534
		Combined		25,011		1.15		926		60,362		1.81		3,516		85,373		1.62		4,441		15,254		1.92		944

Notes for Mineral Resources Summary:

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 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 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 9.2 Mt at 0.77 g/t Au for 229,000 oz.

6. Measured Resources at Gora include stockpiles which total 0.1 Mt at 1.30 g/t Au for 6,000 oz.

7. Measured Resources at Masato include stockpiles which total 5.9 Mt at 0.79 g/t Au for 150,000 oz.

8. High grade assays were capped at grades ranging from 1.5 g/t Au to 110 g/t Au.

9. The figures above are "Total" Mineral Resources and include Mineral Reserves.

10. Open pit shells were used to constrain open pit resources.

11. Mineral Resources are estimated using a gold price of US$1,450 per ounce.

12. Sum of individual amounts may not equal due to rounding.

There have been no revisions to the resource models for 2015, except for adjustments due to mining depletion and minor revisions to Niakafiri Main, Niakafiri SW, Maki Medina and Diadiako. For estimating 2015 Mineral Resources, Teranga has implemented a new reporting procedure, which includes the use of open pit shells to constrain open pit resources and reporting underground resources separately.

For reporting of open pit Mineral Resources, open pit shells were produced for each of the resource models using Whittle open pit optimization software. Only classified blocks greater than or equal to the open pit cut-off grades and within the open pit shells were reported. This is in compliance with the CIM (2014) resource definition requirement of "reasonable prospects for eventual economic extraction".

For reporting of underground Mineral Resources, only classified blocks greater than or equal to the underground cut-off grade outside of the open pit shells were reported. This is in compliance with CIM (2014) resource definition requirements. In addition, Deswik Stope Optimizer software was used to generate wireframe models to constrain blocks satisfying minimum size and continuity criteria, which were used for reporting Sabodala underground Mineral Resources.

The significant change between the Mineral Resources reported for 2014 and 2015 is due to this new reporting procedure, where the 2015 year end Mineral Resources have been constrained using open pit shells along with revised gold cut-off grades for both open pit and underground resources. Previously classified Mineral Resources that do not satisfy the revised reporting criteria for 2015 have been excluded, however, remain in the block models as mineralized material.

APPENDIX 2: Open Pit and Underground Mineral Reserves Summary

Deposits		Proven						Probable						Proven and Probable
		Tonnes (Mt)		Grade (g/t)		Au (Moz)		Tonnes (Mt)		Grade (g/t)		Au (Moz)		Tonnes (Mt)		Grade (g/t)		Au (Moz)
Sabodala		1.57		1.57		0.08		2.33		1.36		0.10		3.90		1.44		0.18
Gora		0.31		4.94		0.05		1.15		4.74		0.17		1.46		4.78		0.22
Niakafiri Main		4.06		1.23		0.16		3.41		0.94		0.10		7.47		1.10		0.26
Subtotal ML		5.95		1.52		0.29		6.88		1.71		0.38		12.83		1.62		0.67
Masato		-		-		-		21.41		1.06		0.73		21.41		1.06		0.73
Golouma West		-		-		-		3.23		1.96		0.20		3.23		1.96		0.20
Golouma South		-		-		-		1.27		3.09		0.13		1.27		3.09		0.13
Kerekounda		-		-		-		0.79		3.44		0.09		0.79		3.44		0.09
Maki Medina		-		-		-		0.90		1.17		0.03		0.90		1.17		0.03
Niakafiri SE		-		-		-		1.12		1.09		0.04		1.12		1.09		0.04
Niakafiri SW		-		-		-		0.37		0.92		0.01		0.37		0.92		0.01
Subtotal SOMIGOL		-		-		-		29.08		1.32		1.23		29.08		1.32		1.23
Subtotal Open Pit		5.95		1.52		0.29		35.96		1.39		1.61		41.92		1.41		1.90
Golouma West 1		-		-		-		0.62		6.07		0.12		0.62		6.07		0.12
Golouma West 2		-		-		-		0.45		4.39		0.06		0.45		4.39		0.06
Golouma South		-		-		-		0.47		4.28		0.06		0.47		4.28		0.06
Kerekounda		-		-		-		0.61		4.95		0.10		0.61		4.95		0.10
Subtotal Underground		0.00		0.00		-		2.15		5.01		0.35		2.15		5.01		0.35
Total		5.95		1.52		0.29		38.11		1.60		1.96		44.07		1.59		2.25
Stockpiles		15.27		0.79		0.39		0.00		0.00		0.00		15.27		0.79		0.39
Total Including Stockpile		21.23		0.99		0.68		38.11		1.60		1.96		59.34		1.38		2.63

Notes for Mineral Reserves Summary:

1. CIM definitions were followed for Mineral Reserves.

2. Mineral Reserve cut off grades for range from are 0.35 g/t to 0.63 g/t Au for oxide and 0.42 g/t to 0.73 g/t Au for fresh based on a $1,100/oz gold price

3. Mineral Reserve cut off grades for Sabodala 0.45 g/t for oxide and 0.55 g/t for fresh based on a $1,100/oz gold price

4. Underground reserves cut-off grades ranged from 2.3-2.6 g/t based on $1,200/oz gold price

5. Sum of individual amounts may not equal due to rounding.

6. The Niakafiri Main deposit is 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.

APPENDIX 3: Life of Mine (2016 to 2029)

				Unit		LOM		2016-2020 AVG		2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		2026		2027		2028		2029
Sabodala		Ore Mined		Mt		3.9						0.3		1.5		2.0
		Ore Grade		g/t		1.44						1.11		1.33		1.58
		Contained Oz		Moz		0.18						0.01		0.07		0.10
		Waste		Mt		31.0						11.1		15.0		5.0
Masato		Ore Mined		Mt		21.4				0.5				0.7		0.4		1.1		2.8		5.0		4.3		6.7
		Ore Grade		g/t		1.06				1.10				0.74		0.70		0.86		0.93		1.00		1.02		1.27
		Contained Oz		Moz		0.73				0.02				0.02		0.01		0.03		0.09		0.16		0.14		0.27
		Waste		Mt		110.2				0.2				16.2		5.8		19.4		27.2		21.5		11.6		8.2
Gora		Ore Mined		Mt		1.5				0.7		0.7		0.1
		Ore Grade		g/t		4.78				4.00		5.15		7.90
		Contained Oz		Moz		0.22				0.08		0.12		0.02
		Waste		Mt		32.2				17.9		14.1		0.2
Kerekounda		Ore Mined		Mt		0.8				0.0		0.5		0.3
		Ore Grade		g/t		3.44				0.99		3.39		3.74
		Contained Oz		Moz		0.09				0.00		0.06		0.03
		Waste		Mt		18.2				3.6		13.0		1.6
Golouma		Ore Mined		Mt		4.5				1.2						0.9		2.4		0.1
		Ore Grade		g/t		2.28				3.08						1.98		1.99		2.24
		Contained Oz		Moz		0.33				0.12						0.06		0.15		0.00
		Waste		Mt		49.6				14.8						18.4		16.4		0.0
Niakafiri1		Ore Mined		Mt		9.0										1.5								4.0		3.5
		Ore Grade		g/t		1.09										1.05								1.10		1.10
		Contained Oz		Moz		0.31										0.05								0.14		0.12
		Waste		Mt		26.6										6.2								12.5		7.9
Maki Medina		Ore Mined		Mt		0.9								0.9
		Ore Grade		g/t		1.17								1.17
		Contained Oz		Moz		0.03								0.03
		Waste		Mt		2.9								2.9
Underground		Ore Mined		Mt		2.1														0.1		0.3		0.3		0.3		0.1		0.2		0.4		0.4		0.2
		Ore Grade		g/t		5.01														5.00		4.95		4.63		4.33		4.39		5.55		5.36		5.52		4.76
		Contained Oz		Moz		0.35														0.02		0.05		0.05		0.04		0.01		0.03		0.06		0.07		0.02
Summary		Ore Mined		Mt		44.1		3.1		2.3		1.6		3.4		4.7		3.5		3.0		5.3		8.6		10.4		0.1		0.2		0.4		0.4		0.2
		Ore Grade		g/t		1.59		1.94		2.91		3.74		1.51		1.42		1.63		1.09		1.22		1.20		1.29		4.39		5.55		5.36		5.52		4.76
		Contained Oz		Moz		2.25		0.20		0.22		0.19		0.17		0.22		0.19		0.10		0.21		0.33		0.43		0.01		0.03		0.06		0.07		0.02
		Waste		Mt		270.7		36.3		36.4		38.2		35.9		35.4		35.8		27.2		21.5		24.2		16.1
		Movement		Mt		314.7		39.5		38.7		39.8		39.3		40.1		39.4		30.2		26.8		32.8		26.5		0.1		0.2		0.4		0.4		0.2
		Stockpile Ore Balance		Mt						13.7		11.1		10.1		10.4		9.4		7.9		8.7		12.9		18.9		14.5		10.2		6.2		2.1
		Stockpile Grade		g/t						0.82		0.84		0.76		0.73		0.70		0.68		0.67		0.66		0.68		0.66		0.66		0.66		0.66
		Contained Oz		Moz						0.36		0.30		0.25		0.24		0.21		0.17		0.19		0.27		0.41		0.31		0.22		0.13		0.04
		Ore Milled		Mt		59.3		4.3		3.9		4.2		4.5		4.5		4.5		4.5		4.4		4.5		4.4		4.4		4.4		4.4		4.4		2.3
		Head Grade		g/t		1.38		1.66		1.93		1.85		1.56		1.54		1.46		0.99		1.35		1.73		2.06		0.82		0.85		1.06		1.09		0.94
		Oxide		%		21%		27%		37%		25%		26%		31%		19%		28%		16%		29%		0%		17%		19%		18%		18%		18%
		Produced Oz		Moz		2.376		0.207		0.215		0.229		0.202		0.200		0.190		0.128		0.173		0.225		0.263		0.104		0.109		0.135		0.139		0.063
Notes: 1 The schedule summarized Niakafiri from "Niakafiri Main" and "Niakafiri SE". The portion of Niakafiri SE to be mined lies outside of the Sabodala Village area and assumes relocation is not required. Sum of individual amounts may not equal due to rounding. The estimated ore reserves underpinning the production targets (as defined in the ASX Listing Rules) set out in Appendix 1 above, have been prepared by Mr. Paul Chawrun, who is a Competent Person, in accordance with the requirements of the 2012 JORC Code. This production guidance is based on existing proven and probable ore reserves from the Sabodala mining license as at December 31, 2015. Stockpile balances at January 1, 2016 included 15.3 Mt at 0.79 g/t for 0.39 million contained ounces

APPENDIX 4: Life of Mine Capital Expenditures

Sustaining Capex		Unit		LOM		2016-2020 AVG		2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		2026		2027		2028		2029
Open Pit Mining		USDM		29.9		3.7		4.9		3.5		4.0		1.5		4.7		6.0		3.0		1.5		0.8		-		-		-		-		-
Underground Mining		USDM		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Processing		USDM		18.9		2.1		2.4		2.0		2.0		2.0		2.0		2.0		2.0		1.0		1.0		1.0		0.5		0.5		0.5		-
Admin & Other Sustaining		USDM		8.8		1.3		2.8		1.0		1.0		1.0		0.5		0.5		0.5		0.3		0.3		0.3		0.3		0.3		0.3		-
Community Relations		USDM		25.0		0.2		1.0		-		-		-		-		2.0		15.0		7.0		-		-		-		-		-		-
Total Sustaining Capex		USDM		82.5		7.2		11.0		6.5		7.0		4.5		7.2		10.5		20.5		9.8		2.1		1.3		0.8		0.8		0.8		-
Capital Projects & Development
OJVG & Gora Development		USDM		4.3		0.9		3.3		0.8		0.3		-		-		-		-		-		-		-		-		-		-		-
Underground Equipment & Development		USDM		102.1		4.9		-		-		-		-		24.4		23.4		8.9		2.4		0.8		8.5		18.2		10.4		4.1		0.9
Other Projects & Development		USDM		21.8		2.9		11.3		1.9		1.4		-		-		7.2		-		-		-		-		-		-		-		-
Total Projects & Development		USDM		128.2		8.7		14.6		2.7		1.7		-		24.4		30.6		8.9		2.4		0.8		8.5		18.2		10.4		4.1		0.9
Combined Total (USDM)		USDM		210.8		15.9		25.7		9.2		8.7		4.5		31.6		41.1		29.4		12.2		2.9		9.8		18.9		11.1		4.9		0.9

APPENDIX 5: Life of Mine Operating Costs

Activity		Unit		LOM		2016-2020 AVG		2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		2026		2027		2028		2029
Open Pit Mining		USD/t mined		2.25		2.25		2.24		2.27		2.25		2.20		2.29		2.19		2.31		2.17		2.36		-		-		-		-		-
Underground Mining		USD/t milled		72.23		-		-		-		-		-		-		76.30		74.94		73.32		77.25		79.72		76.46		66.49		64.35		78.11
Processing		USD/t milled		10.33		10.16		10.83		10.02		10.00		9.93		10.09		9.97		10.14		9.95		10.84		10.63		10.60		10.61		10.61		10.60
General & Admin.		USD/t milled		2.56		3.39		3.81		3.47		3.29		3.28		3.15		3.12		3.06		3.08		2.01		1.88		1.43		1.23		1.00		1.81
Mining		USDM		702		88		86		91		89		87		89		66		61		71		62		-		-		-		-		-
Underground Mining		USDM		155		-		-		-		-		-		-		7		22		26		20		7		13		24		25		12
Processing		USDM		613		44		42		43		45		44		45		44		45		44		48		47		47		47		47		25
General & Admin		USDM		144		14		14		14		14		14		14		14		13		13		8		8		6		5		4		4
Refining & Freight		USDM		12		1		1		1		1		1		1		1		1		1		1		1		1		1		1		0
Byproduct Credits		USDM		(4)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)		(0)
Total Operating Costs		USDM		1,622		147		142		148		148		146		148		132		141		154		139		63		66		77		76		41
Deferred Stripping Adjustment		USDM		(129)		(13)		(26)		(6)		-		-		(35)		(35)		(25)		(1)		-		-		-		-		-		-
Royalties1		USDM		145		13		13		16		12		12		11		8		10		14		16		6		7		8		8		4
Total Cash Costs2		USDM		1,639		146		130		158		161		159		124		104		127		167		154		69		73		85		85		45
Total Cash Costs2		USD/oz		690		706		602		691		798		792		655		810		730		741		587		660		668		629		607		711
Capex		USDM		211		16		26		9		9		5		32		41		29		12		3		10		19		11		5		1
Capitalized Deferred Stripping		USDM		129		13		26		6		-		-		35		35		25		1		-		-		-		-		-		-
Capitalized Reserve Development		USDM		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Corporate Admin		USDM		130		14		16		14		14		14		12		10		10		10		6		6		6		5		4		4
All-In Sustaining Cash Costs2		USDM		2,108		189		196		187		183		177		203		190		191		190		163		85		98		101		94		50
All-In Sustaining Cash Costs2		USD/oz		887		914		912		819		908		882		1,072		1,483		1,103		843		621		812		897		748		671		788
Franco Nevada Stream		USDM		173		19		20		22		22		22		11		7		10		13		15		6		6		8		8		4
Franco Nevada Stream		USD/oz		73		92		92		94		107		108		58		58		58		58		58		58		58		58		58		58
All-In Sustaining Cash Costs2 plus stream		USDM		2,281		208		216		209		205		198		214		198		201		203		178		91		104		109		102		53
All-In Sustaining Cash Costs2 plus stream		USD/oz		960		1,006		1,004		914		1,015		990		1,129		1,541		1,161		900		678		870		955		806		729		846
Notes:
1 Royalties include Government of Senegal royalties on total production and the NSR royalty due to Axmin on Gora production.
2 Refer to endnote (4) on page 2 of this press release concerning the definition of total cash costs and all-in sustaining costs.
This production guidance is based on existing proven and probable reserves only from both the Sabodala mining license as disclosed in the Reserves and Resources section of this Report.
Key assumptions: Gold spot price/ounce - US$1,200, Light fuel oil - US$0.72/litre, Heavy fuel oil - US$0.43/litre, US/Euro exchange rate - $1.10