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"As we eliminate the hedge book by mid-year, we anticipate that the increased cash margins and cash flows will provide us with a stronger balance sheet that should be able to fund our organic growth through our extensive exploration program, while at the same time minimizing shareholder dilution," said Richard Young, President and CEO.

--  Capital expenditures for 2012, excluding reserve development    expenditures, were $52.9 million, higher than the revised guidance of    $50 million, and $9.2 million lower than the fifteen months ended    December 31, 2011. Capitalized reserve development costs for the year    were $30.4 million, higher than the revised guidance of $25 million, and    $16.0 million higher than the fifteen months ended December 31, 2011.    The increase over 2011 was the result of a focus on expanding resources    within the Sabodala pit and converting resources to reserves.--  Total cash costs for 2012 were within guidance, of $600 - $650 per    ounce, at $627 per ounce sold compared to $782 per ounce for the twelve    months ended December 31, 2011, a reduction of 20 percent. The decrease    in cash costs were mainly due to higher ounces produced.--  Total production costs, comprised of total cash costs including total    depreciation and amortization, for the year were $850 per ounce sold,    down from $1,031 per ounce sold for the twelve months ended December 31,    2011.--  Realized gold price for 2012 was $1,422 per ounce sold compared to    $1,236 per ounce sold for the twelve months ended December 31, 2011. The    higher realized gold price for 2012 reflects a lower percentage of gold    delivered into forward sales contracts due to the buyback of 52,105    ounces during the second quarter of 2012, as well as higher gold prices    in 2012.

--  Total tonnes mined for 2012 were 12 percent higher than the twelve    months ended December 31, 2011 and 4 percent higher than planned. Ore    tonnes mined were lower than plan but at better grades resulting in    similar ounces mined compared to plan.--  Mill throughput for the twelve months ended December 31, 2012 was    similar to the same prior year period as an increase in the milling    capacity with the completion of the mill expansion in the third quarter    2012, was offset by lower throughput rates from harder ore processed in    2012 compared to the softer material that was available in 2011.    Compared to budget, mill throughput for 2012 was approximately 20    percent lower than plan due to delays in commissioning the crushing    circuit as part of the mill expansion.--  In the third quarter of 2012, the Company added depth to its management    team to focus on growth. Alan Hill was appointed Executive Chairman,    formerly Chairman and Chief Executive Officer and Richard Young was    appointed President and Chief Executive Officer, formerly President and    Chief Financial Officer. Mark English was also promoted to Vice    President, Sabodala Operations, formerly Manager, Sabodala Gold    Operations. In addition, Navin Dyal and Paul Chawrun were appointed Vice    President and Chief Financial Officer and Vice President, Technical    Services, respectively.

--  The Sabodala Pit optimization work completed in the first quarter of    2012, based on the high grade drill results from the fourth quarter of    2011, defined a projected pit shell that included the Lower Flat Zone    ("LFZ") at depth.--  Conversion of a large portion of these resources to open pit reserves    will likely require higher gold prices as the orientation of both the    Main Flat Extension ("MFE") and LFZ appear to be more steeply dipping    than originally anticipated, negatively affecting the economics of an    enlarged pit shell.--  The 2013 drill program for Sabodala is expected to be completed in the    first quarter of 2013. At that time Management will assess the economics    of both a larger open pit as well as evaluate an underground development    option in the LFZ.--  Drilling in 2012 successfully extended the Masato mineralized limits to    the south and down dip onto Teranga's mine licence ("ML") defining    approximately 700,000 ounces of Inferred Resource.--  In 2012, we drilled 104,400 metres at a cost of $26 million on the ML.    The original ML budget was $20 million but was expanded during the year    to follow up on positive drill results at Sabodala.--  Within the regional land package ("RLP") we completed 62,500 metres of    RAB drilling, 42,300 metres of RC and 2,400 metres of diamond drilling    on 25 of our anomalies and targets, at a cost of $20 million, including    Gora.--  The program for 2013 has been budgeted and will focus on fast-tracking    work on our current priority targets at Nienyenko, Soreto, Diabougou,    Tourokhoto-Marougou and Saiensoutou. Other targets will be followed up    as work progresses on the RLP. A minimum budget of $20 million is    allocated for the combined exploration programs on the RLP and ML.    Additional funding is available and will be allocated on a priority    basis for prospects with clear potential for reserves definition.