Investor PresentationJanuary 2018

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Forward Looking Information

This presentation includes certain forward-looking statements that are made as of the date hereof and are based upon current expectations, whichinvolve risks and uncertainties associated with our business and the economic environment in which the business operates. All such statementsare made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under applicable Canadian securitieslaws. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. For example,the words anticipate, believe, plan, estimate, expect, intend, should, may, could, objective and similar expressions are intended to identify forward-looking statements. This presentation includes, but is not limited to, forward looking statements relating to TeraGo’s growth strategy and growthimperatives, reducing churn and creating up-sell opportunities, investing in sales organization to accelerate growth, capturing market share,reinvesting to drive growth in EBITDA and the Company’s target operating model. By their nature, forward-looking statements require us to makeassumptions and are subject to inherent risks and uncertainties. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets,expectations, estimates or intentions expressed with the forward-looking statements. When relying on forward-looking statements, whether writtenor oral, to make decisions with respect to the Company, investors and others should carefully consider the risks, uncertainties and assumptions,including the risk that there will be delays in new product launches impacting sales, retention and churn reduction efforts decreasing profitmargins, the Company not being able to realize the anticipated benefits from execution of its growth strategy, TeraGo’s “go-to-market” strategymay not materialize, trends in the global cloud and data centre sectors may not be accurately projected, the outcome of the ISED 5G Consultationmay not be favourable to the Company, the partnership with AWS not resulting in a favourable outcome, a lack of capital to take advantage ofcertain opportunities, the Company not being able to achieve the target operating model metrics set out in this presentation and those risks setforth in the “Risk Factors” section in our annual MD&A for the year ended December 31, 2016 available on www.sedar.com and otheruncertainties and potential events. In particular, if any of the risks materialize, the expectations, and the predictions based on them, of theCompany may need to be re-evaluated. Consequently, all of the forward-looking statements in this presentation are expressly qualified by thesecautionary statements and other cautionary statements or factors, contained herein, and there can be no assurance that the actual results ordevelopments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences for theCompany.

Except as may be required by applicable Canadian securities laws the Company does not intend, and disclaims any obligation to update or reviseany forward-looking statements, whether oral or written as a result of new information, future events or otherwise.

For Non-GAAP Measures referenced in this presentation such as “Adjusted EBITDA”, please refer to the Company’s MD&A for the three monthsended September 30, 2017 and 2016 for additional commentary which should be read in conjunction with this presentation, and includes itsdefinition and a reconciliation of such measure back to a GAAP measure. In addition, the term “ARPU” refers to the Company’s average revenueper customer and “churn” is a measure, expressed as a percentage, of customer cancellations in a particular month. The Company believes thatARPU is a useful supplemental information as it provides an indication of our revenue from an individual customer on a per month basis. TheCompany believes that churn is useful information as it represents the number of customer cancellations per month as a percentage of totalnumber of customers during the month. Readers are cautioned that the Company’s method of calculating “Adjusted EBITDA”, “ARPU” and “churn”may differ from other issuers and, accordingly, may not be comparable to similar measures presented by other issuers.

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TeraGo at a Glance

Leading Canadian Provider of Enterprise Class Managed Cloud and

Connectivity Solutions Tailored to Mid-sized Businesses

200Employees

~3,400Customers

NATIONALWireless and Fibre

Network

38/24 GHzSpectrum covering

~8.5 billion MHz/Pops

5Data Centres

Standard Tier

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TeraGo at a Glance

WHO HOW

WHAT

Managed Cloudand Connectivity

Solutions company

ResilientHybrid Cloud

Solutions

Managed PrivateInterconnection &

Public Internet

Operate DataCentres and AWS

National Wireless &Fibre Network

WHAT

Leading Canadian Provider of Enterprise Class Managed Cloud and

Connectivity Solutions Tailored to Mid-sized Businesses

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TeraGo Infrastructure

Redundant nationwide network integrated with our colocation and cloud facilities.

KelownaVictoria

Montreal

Calgary

Winnipeg

Edmonton

Windsor

Toronto

Vancouver

Barrie

VancouverBurnaby

Delta

Red Deer

Edmonton

SherwoodPark

Nisku

Laval

West Island

Surrey

EastLaval

23 OntarioMarkets

New Westminster

Richmond

Brossard

Montreal

Abbotsford

Ottawa

Longueuil

London

TeraGo Data Centre (5 facilities)

TeraGo 24/7 Operations Centres (2 facilities)

National Redundant Fibre Network (10Gbps)

Network Service Area

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Hybrid IT Framework

Enterprise-classSolutions

Putting the right workloads in the right place, with the right management framework.

By 2020, 90% oforganizations willadopt HybridInfrastructureManagementcapabilities –Gartner (April 2017)

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Millimetre Wave Spectrum for 5G

UNITEDSTATES

CANADA

TeraGo’s 38/24 GHz Spectrum covers ~8.5 billion MHz/Pops in Canada

ISED 24/38 GHzSpectrum Auction:

TeraGo acquires 70licenses

ISED issuesconsultation on

28/37-40 GHzspectrum use for 5G

ISED consultationcomments received

FCC allocates~11GHz of

spectrum above24 GHz for 5G

AT&T bidsUS$1.6b forStraight Path

Communications28/39 GHz

spectrum at avaluation of

US$0.0075 perMHz Pop

May 2017 Nov 2017

Dish acquires28 GHz

spectrum inasset swap with

Echostar

Verizoncompletes XO

Communicationsacquisition with

an option toacquire 28/39GHz spectrum

AT&T acquiresFiberTower 24/39

GHz spectrumassets

Jul 2016 Jan 2017 Apr 2017Feb 2017

FCC adds 24GHzband to flexible usespectrum allocated

for 5G services

Verizon to acquireStraight Path

Communicationsfor US$3.1b, or a

valuation of

US$0.0145 perMHz Pop

Nov 1999 Jun 2017 Nov 2017Sep 2010

TeraGo purchases a setof 24 GHz band spectrumlicenses for service areas

in Canada’s six largestcities from Mobilexchange

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A SHARPENEDFOCUS FOR GROWTH

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Clear Market Opportunity

$290

$1,118$616

$943

2017 2020

Cloud Colocation

Canadian Cloud andColocation Market(US$ Millions)

$906

$2,061

Source: Structure Research (2017)

32%

15%

57%

CAGR

Canada is hometo approximately

6,000organizations withrevenues between

$50 and $500million

These organizationscollectively employclose to 2 million

Canadians, and produce

almost 32% of

Canada’sGDP

Yet, this segment is

UNDERSERVED

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Capturing Market Share

Mid-sizedenterprises

Smallenterprises

Mid-sizedenterprises

Smallenterprises

2018-2020

• 1/3 of applications moving to the Cloudin the next 3 years

• 85% of new applications will be cloudnative

• Cloud spending in the mid-market is3x to 4x higher than the small businesssegment

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BUILDING THEGROWTH ENGINE

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Our Growth Imperatives

To be recognized by the mid-market as the one partner who understands

their specific needs, and delivers the right offerings with the right support.

Stabilize the Connectivity Business

Leverage Assets to Unlock Hidden Value

1

2

3

Growth from Cloud and Colocation

• Improve the Customer Experience

• Up-sell our existing customer base

• Enhance our Offer and Simplify our Portfolio

• Invest in Enhanced Go-to-market Effectiveness

• Drive Operating Leverage through higher Data Centre Utilization

• Maximize Value from Spectrum Assets

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Stabilize the Connectivity Business

Exceptional customerSUPPORT

• New customer lifecyclemanagement framework

• Scheduled touchpoints• Proactive account

management

Reduce Churn and Create Up-sell Opportunities in Our Customer Base

Focus on processesand systems to driveorganizationalEFFICIENCY andeffectiveness

Drive LOYALTYthrough bundledofferings to increasemultiproductcustomers

Q4/16 Q1/17 Q2/17 Q3/17

Churn Rate %

Q4/16 Q1/17 Q2/17 Q3/17

ARPU %ChangeQoQ

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Growth from Cloud and Colocation:Enhance our Offer and Simplify our Portfolio

STREAMLINED and relaunchedour entire portfolio

• Reduced SKUs by 60% and launchednew packages for popular Cloud andColocation configurations

• Launched Connectivity and Cloudservices bundles to deliver enhancedvalue

• Joined AWS Partner Network andestablished our AWS Practice.

Revamped our Offering with New and Enhanced Solutions that Meetthe Specific Needs of Our Customers

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Growth from Cloud and Colocation :Invest in Enhanced Go-to-Market Effectiveness

Sales and MarketingInvestments to ACCELERATEgrowth

• New CRM-driven demand andsales-generation programs

• Increased sales force by 25%• New agency• Revamped lead generation• Launched new website

Investing in our Sales Organization to Accelerate Growth andTarget the Right Customers

Q4/16 Q1/17 Q2/17 Q3/17

Cloud & Colocation Bookings

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Leverage Assets to Unlock Hidden Value

• Significant cross-sell and up-sell opportunities in ourcustomer base

• Connectivity services thatincrease return on assets

• Data centres with capacityand the room to scalewithout new CAPEX

Strategically use our 38/24 GHzspectrum bandwidth to enhancecompetitiveness and maximize

shareholder value

Focus on Value Creation

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TeraGo: Q3/17 Strategy Update

• Stabilize the Connectivitybusiness

Focused on reducing rate ofchurn

Two large customer renewalsin Q3’17

• Invest to accelerate growthin Cloud and Colocation

Signed our largest multi-year,multi-million dollar colocationservices agreement

• Increase data centreutilization

• Cross-sell and up-sell toour large existing customerbase

• Leverage wireless networkand spectrum

• Focus on managing costsin Connectivity to providemargin and predictablecash flow to fund growthinitiatives in Cloud andColocation

REVENUE GROWTH PROFITABILITY LEVERAGE PLATFORM

RECORD SALESBOOKINGS FOR CLOUD

AND COLOCATION

ADJUSTED EBITDAGROWTH FROM

Q2 TO Q3

SUBMITTEDCOMMENTS TO ISED

ON 5G SPECTRUMCONSULTATION

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FINANCIALHIGHLIGHTS

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Growth Investment Backed byStrong Financial Position

Profitablebusiness andpositive FCFgeneration

1 2 3Growth to driveoperating leverageand ROIC

Strong BalanceSheet withFinancialFlexibility toExecute GrowthPlan

$57.3 million TTMRevenue

25.8% TTM AdjustedEBITDA margin

$8.0 TTM Capex or14.3% of Revenue

Current sales bookingssupport increased datacentre utilization to~40% in 2018

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Revenue Streams Shifting to Cloud

$3.4$13.2

$18.3 $19.0

$47.8

$44.6$40.8 $38.3

51.2

57.7 59.1 57.3

2014 2015 2016 TTM

Connectivity

Cloud and Colocation

All $ figures in CAD millions

33%

67%

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EBITDA: Reinvesting to Drive Growth

$16.2$18.4 $18.9

$14.8

31.6% 31.9% 32.1%

25.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

2014 2015 2016 TTM

Adjusted EBITDA Adjusted EBITDA Margin

All $ figures in CAD millions

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Strong Balance Sheet

All $ figures in CAD millions as at September 30st, 2017(1) Excludes $655k of letters of credit issued in favour of certain third parties.

Cash and cash equivalents $7.1

Unused operating line of credit(1) $10.0

Available acquisition facility $25.0

Total cash and access to credit(1) $42.1

Long-term debt $37.2

Operating Leverage 2.55x

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Target Operating Model

Connectivity Revenue (0-5%) Y/Y

Cloud and Colocation Revenue 10-15% Y/Y

Adjusted EBITDA Margin 30-35%

Operating Leverage 2-3x

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Experienced Leadership TeamStrong Track Record

Christine GauthierVice President, Sales

Ron PerrottaVice President,

Marketing & Strategy

Antonio (Tony) CicirettoPresident & CEO

• Christine joined in September 2017 and has led and repeatedly builtsales teams for rapidly scaling businesses in technology organizations.Previously she served as Country Managing Director at Check PointSoftware, and has held senior roles at HP and Cisco Systems.

• Ron has 30 years experience building businesses, strong teams andshareholder value in consumer goods and technology. Prior rolesinclude SVP Marketing at Rogers, VP marketing & Strategy at Cogecoand marketing roles at Johnson & Johnson, Tropicana and Pfizer.

• President and CEO of Cogeco Peer 1 and Cogeco Data Services forover six years, where he was responsible for leading their marketgrowth and development. Previously held executive leadership roles atRogers and Bell over a 20 year period.

Duncan McGregorVice President, Engineering &

Operations

• Duncan is a seasoned executive with 20 years of global experience inthe technology sector. Prior to joining TeraGo, Duncan served as theGlobal Vice President of Engineering Operations for Cogeco Peer 1,and held various senior roles at OpenText Corporation.

David CharronChief Financial Officer

• David has more than 20 years of financial leadership and experience inthe IT services industry. Prior to joining TeraGo, David was CFO andCorporate Secretary at Redknee Solutions Inc. He has also held seniorfinance positions at Nortel Networks and Descartes Systems Group.

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Summary

Enterprise-Class Cloud, Colocation, and Connectivity

A Clear Growth Opportunity

A Focused Plan for Profitable Growth

Financial Strength to Fund Our Growth Strategy

Experienced Management Team Committed to Value Creation

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Shareholder Base

Others54%

Second Alpha23%

Columbia PacificAdvisors

8%

PenderFund14%

PenderFund14%

SecondAlpha23%

Others55%

ColumbiaPacific

Advisors8%

Based on publicly available information as at September 30st, 2017.

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Capital Markets Snapshot

Stock symbol TSX: TGO

Shares outstanding 14.3 million

Price at Jan 2, 2018 $4.35

52-week low / high $3.60 / $5.16

Enterprise Value (“EV”) $92.3 million

EV / Adjusted TTM EBITDA 6.2x

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