Jennings Capital Initiates Coverage on Teranga Gold with Buy Recommendation - Video Posted on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - September 16, 2013) - Investment firm Jennings Capital has initiated coverage on Teranga Gold (TSX: TGZ) (ASE: TGZ). Analyst Dan Hrushewsky gives the company a buy recommendation and a 12-month target price of $1.50, a 108% premium to the $0.72 price the day the report was issued.

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Teranga owns and operates the Sabodala gold mine, the only commercial mine and mill in Senegal. The mine, which came into operation in 2009, is located 650 kilometres southeast of the capital of Senegal, within the West African Birimian geological belt, where approximately 10 million ounces of gold resources have been discovered over the past six years. It also lies about 90 kilometres from major gold mines in Mali. Senegal has seen very little modern gold exploration and is underexplored relative to other West African countries.

During 2012, the company produced 214,310 ounces of gold at a total cash cost of $627 per ounce, the lowest of its peer group. The company is currently exploring ten exploration permits encompassing approximately 1,057 square kilometres of land surrounding the Sabodala Mine License.

Through its recent acquisition of Oromin Explorations, the company gained access to Oromin's 43.5% share of the OJVG project, which adjoins its Sabodala Mine Lease. As it is practically impossible to mine and process only the 43.5% of the open pittable reserves, the company is confident it will be able to negotiate a toll milling fee, enabling it to mine and process 100% of the open pittable reserves.

Sabodala's remaining economic material plus Oromin's 43.5% share of the joint venture reserves total 1.5 million ounces grading 2.25 grams per tonne or 2.5 million ounces grading 2.18 grams per tonne if we include 100% of the joint venture.

In addition, the company has a large land position with many identified targets along strike and below the Sabodala pit, more than 50 targets on its regional land package, and at least 14 targets on the Oromin joint venture land package.

Analyst Dan Hrushewsky stated, "We believe the government of Senegal wants a significant and growing mining industry, and that it sees Teranga playing a large part in implementing that strategy. Therefore, we see Teranga benefitting from its "first mover" status by continuing, as it did with Oromin, to be a "consolidator of choice" in the country."

Teranga currently trades at $0.66, well below the $1.50 target price, and with 316.8 million shares outstanding, the company is capitalized at $209 million.

For more information please visit the company's website www.TerangaGold.com or contact Andrew Bradbury at 416-607-4493 or email abradbury@terangagold.com.

For more information about Jennings Capital or to obtain a copy of their research report, contact your nearest Jennings Capital office. Their branches are listed on their website at www.jenningscapital.com.

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