Teranga Gold Reports New Discovery at Golden Hill and Widespread High-Grade, Near-Surface Gold

TORONTO, Jan. 22, 2020 - Teranga Gold Corp. ("Teranga" or the "Company") (TSX: TGZ, OTCQX:TGCDF) is pleased to announce strong results from its ongoing drilling program at Golden Hill, located within the central part of the Houndé Greenstone Belt, a highly mineralized gold region that hosts three operating gold mines in southwest Burkina Faso, West Africa. Golden Hill, which is 100% owned by Teranga, is an advanced-stage exploration project that has delivered multiple high-grade gold discoveries over the last two years.

The 20,000 metres drilled as part of the current 27,000-metre program have returned high-grade gold intercepts from near surface to depth at several existing targets and encouraging gold grades in numerous step-out holes. The campaign has also uncovered a new discovery: The Ma Jonction prospect, located between Ma Main and Ma North.

Ma Jonction’s highlights include:

• 8 m @ 6.40 g/t gold, including 1 m @ 15.49 and 3 m @ 10.09 g/t gold from10 m DHD (GHDD-574)
• 3 m @ 44.11 g/t gold (uncut) from 33 m DHD (GHDD-572) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-572)

“We are excited about the results we are seeing from the current drill program, which is intended to increase resources as we move the project through a preliminary economic assessment and into feasibility,” stated Paul Chawrun, Chief Operating Officer. “In addition to another high-grade, near-surface discovery, the drill results reported today demonstrate positive continuity, grade, width and extended mineralization in several zones. Based on these results, we remain on track to update the initial resource estimate we published in February 2019⁽¹⁾ and apply for a mine license in the third quarter of this year.”

Golden Hill Drilling Highlights

Ma Main Prospect

• 7 m @ 17.75 g/t gold, including 3 m @ 40.12 g/t gold (uncut) from 164 m down hole depth (DHD) (GHRC-153) (see Table 1 in Appendix A for uncut and cut grade intervals for GHRC-153)
• 4 m @ 16.15 g/t gold (uncut) from 24 m DHD (GHRC-148) (see Table 1 in Appendix A for uncut and cut grade intervals for GHRC-148)
• 11 m @ 6.38 g/t gold, including 4 m @ 11.58 g/t gold from 168 m DHD (GHDD-602)
• 21 m @ 3.70 g/t gold, including 5 m @ 7.77 g/t gold from 137 m DHD (GHDD-600)

Ma North Prospect

• 4 m @ 46.05 g/t gold, including 1 m @ 180.5 g/t gold (uncut) from 37 m DHD (GHDD-501) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-501)
• 5 m @ 3.09 g/t gold from 11 m DHD and 5 m @ 4.64 g/t gold from 19 m DHD (GHRC-133)
• 7 m @ 2.67 g/t gold from 10 m DHD and 4 m @ 2.97 g/t gold from 81 m DHD (GHDD-137)

C-Zone Prospect

• 7 m @ 32.67 g/t gold, including 1 m @ 196.6 g/t gold (uncut) from 46 m DHD (GHDD-517) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-517)
• 11 m @ 2.60 g/t gold, including 5 m @ 5.03 g/t gold from 22 m DHD (GHDD-558)
• 6 m @ 4.87 g/t gold, including 1 m @ 27.10 g/t gold from 100 m DHD (GHDD-563)

A-Zone Prospect

• 38 m @ 1.58 g/t gold, including 7 m @ 2.43 g/t gold from 0 m DHD and 1 m @ 30.83 g/t gold (uncut) from 51 m DHD (GHDD-546) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-546)
• 5 m @ 12.13 g/t gold (uncut) from 33 m DHD and 3 m @ 9.67 g/t gold from 63 m DHD (GHDD-547) (see Table 1 in Appendix A for uncut and cut grade intervals for GHDD-547)
• 15 m @ 2.03 g/t gold, including 4 m @ 3.96 g/t gold from 1 m DHD (GHDD-552)

Ongoing Drill Program Targets New Zones and Prospects

The drill program, started in the second half of 2019, has partially evaluated nine separate targets including four portions of the Ma Structural Complex (Main, North, East and Jonction), C-Zone, A-Zone, Peksou Basin, Copper and Gogoba West (refer to Figures 1, 2, 3 and 4 in Appendix B). The Company expects to continue drilling at most of these targets during the first half of 2020, and anticipates targeting at least five additional zones including Gogoba North, Ma South, Nahiri, Peksou North and Pourey.

The primary goal of this detailed drilling campaign is to facilitate an update to the Golden Hill initial resource estimation published in February 2019. Drilling is focused along trend and at depth to extend components of the initial resource estimation, and to initiate evaluation of numerous additional target areas.

Drill results to date have demonstrated positive continuity and extensions of mineralization at A-Zone, C-Zone and many components at the Ma structural complex (refer to Table 1 in Appendix A). In addition, early-stage scout drilling programs justify a follow-up drilling phase at Copper, Peksou Basin and Gogoba West. Presently, two diamond core drills and one reverse circulation drill are working at Golden Hill. The current exploration and drilling program, scheduled for completion by the end of February 2020, has been budgeted at $5.0 million and is being financed by the Golden Hill tranche of the Taurus debt facility.

“Teranga is developing our strong organic growth pipeline through this and other drill programs planned for 2020 at Golden Hill and across our sites in Burkina Faso, Senegal and Côte d’Ivoire,” said Richard Young, President and CEO. “With our second mine in production at Wahgnion, we have proven our ability to identify, finance and build projects from early-stage exploration to commercial production in just a few short years.”

Cumulative drill results from all prospects within the Golden Hill project are included on the Company’s website www.terangagold.com under Exploration.

Next Steps for Golden Hill

• Complete current 27,000-metre drill program.
• Commence new $8.5 million exploration and drilling program to continue to evaluate the numerous prospects and deposits identified to date and expand drilling outward to new areas of interest.
• Continue with early-stage engineering studies, metallurgical test work, environmental and social assessments as we move toward a preliminary economic assessment “PEA.”
• Submit a request to the Burkina Faso government for the conversion of the Golden Hill exploration license to a mine license in 2020 based on a PEA level technical study.

Qualified Persons Statement

Teranga's Burkina Faso exploration programs, corresponding to the drill holes being reported herein, were managed by Peter Mann, FAusIMM. Mr. Mann was a full-time employee of Teranga who recently retired, and is not “independent" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 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 "Qualified Person" under NI 43-101. The technical information contained in this news release relating to exploration results is based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the technical information disclosed in this release, including the sampling, analytical and test data underlying such information in the form and context in which it appears herein. The reverse circulation and diamond core samples are assayed at the BIGS Global Laboratory in Ouagadougou, Burkina Faso.

Endnote

⁽¹⁾ Golden Hill Mineral Resource estimate as at November 30, 2018. For more information regarding the Golden Hill Mineral Resource and related notes, please refer to the press release dated February 21, 2019 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.

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 and business prospects and opportunities. Forward-looking statements include, without limitation, all disclosure regarding possible events, conditions or results of operations, future economic conditions expectations 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, such forward-looking statements are based upon assumptions, opinions and analysis that management believes to be reasonable and relevant but that may prove to be incorrect. Teranga cautions you not to place undue reliance upon any such forward-looking statements.

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 amended and restated Annual Information Form dated July 31, 2019, and in other filings of Teranga with securities and regulatory authorities which are available on SEDAR 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 document 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 approximately 5,500 km² of land located on prospective gold belts. Since its initial public offering in 2010, Teranga has produced more than 2 million ounces of gold at its Sabodala operation in Senegal. Focused on diversification and growth towards its vision of becoming a mid-tier producer, the Company recently announced commercial production at its second gold mine, Wahgnion, which is located in Burkina Faso, and is carrying out exploration programs in three West African countries: Burkina Faso, Côte d’Ivoire and Senegal. Teranga applies a rigorous capital allocation framework for its investment decisions.

Steadfast in its commitment to set the benchmark for responsible mining, Teranga operates in accordance with 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 participant 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.

Contact Information

Appendix A

Table 1: Selected Drill Highlights (Minimum 3.0 m and 2.00 g/t Au intervals included)

Appendix B

Figure 1: Golden Hill Property – Prospect Location Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/ab5f0a2d-fa64-4185-a91b-b0d6d67c54af

Figure 2: Golden Hill Property – Ma Structural Complex Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/f1d394e8-f6e5-4eb7-942d-d0c615020ee0

Figure 3: Golden Hill Property – C-Zone / Peksou Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/75ac90b4-f7c7-47da-8e0f-bd67e3b1da25

Figure 4: Golden Hill Property – A-Zone Plan Map

https://www.globenewswire.com/NewsRoom/AttachmentNg/1d363990-d6d2-4020-acc0-8be656d949c1