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http://www.terangagold.com/English/Investors/NewsReleases/NewsReleaseDetails/2012/Teranga-Strengthens-Balance-Sheet1130061/default.aspx

July 3, 2012: Toronto, Canada – Teranga Gold Corporation (“Teranga”) (TSX and ASX:TGZ) today announced that it has entered into a US$60 million 2-Year Loan Facility with Macquarie Bank Limited by way of an amendment to its existing Facility Agreement. Teranga intends to use the proceeds for general working capital purposes and to increase 2012 cash flow. In order to increase cash flow, part of the Facility will be used to buy back certain "out of the money" gold forward sales contracts which will allow
the Company to sell more production in 2012 at spot gold prices. This Facility also provides the Company with the flexibility to ensure that the remaining “out of the money” gold forward contracts, which at June 30, 2012, totaled 122,395 ounces and is expected to total 66,000 ounces at year end, are fully extinguished, on schedule, by the third quarter 2013. The Loan Facility bears interest of LIBOR plus a margin of 10 percent and shall be repaid on or before June 30, 2014.

"As the operations are running smoothly, we are very excited about the potential we see to grow this Company while at the same time minimizing dilution to our shareholders. This Facility strengthens our balance sheet and allows us to expedite our vision of growing annual gold production towards our goal of 400,000 to 500,000 ounces” said Alan R. Hill, Chairman and CEO.

This amended Facility strengthens the Company’s balance sheet and will allow the Company to accelerate reserve definition drilling on the Mine License and purchase additional mobile equipment to increase the mining and production rate. In addition, the Facility could also be used to increase the Regional Exploration budget should a discovery be made.

The debt obligation under the existing Facility Agreement (original Project Financing) entered into in 2008 was fully repaid in 2010, however the Facility Agreement remains in place as a portion of the gold forward sales contracts, which were a precondition to the original Project Financing, remain outstanding. This Agreement also amends certain other provisions of the existing Facility Agreement providing Teranga greater flexibility in running its business, reflecting the strong operating performance of the Sabodala Gold Mine over the past three years. The Company reiterates annual production guidance of 210,000 – 225,000 ounces of gold at a cash cost of $600 - $650 per ounce.