The Loulo and Gounkoto mines, known as the Loulo-Gounkoto complex, are located in the west of Mali, bordering Senegal and adjacent to the Falémé River. The complex lies within the Kedougou-Kenieba inlier of Birimian rocks which hosts a number of major gold deposits in Mali, including Gara, Yalea, Gounkoto, Sadiola, Segala and Tabakoto as well as Sabodala across the border in Senegal.

The complex is owned by Randgold (80%) and the State of Mali (20%). In March 2012 the permit was split into the Loulo and Gounkoto permits with a new mining convention for Gounkoto which includes a 2 year corporate tax holiday for Gounkoto starting from the date of first production.

The Loulo permit hosts two main deposits namely Gara and Yalea which have been developed into corresponding open pit and underground mines. Additionally there are a number of other gold deposits and targets which have been discovered on the permit, the most significant to date being Loulo 3. Current mineral resources are at 10.39 million and reserves at 6.48 million ounces.

South of Loulo lies the Gounkoto permit which yielded first the 500 000 ounce Faraba deposit followed by a number of smaller ones and then in 2009, the 5 million ounce Gounkoto deposit. Open pit mining began at Gounkoto at the beginning of 2011 and first gold was delivered to the Loulo plant, where it is toll treated, in June 2011. Mineral resources are now at 5.07 million ounces and reserves at 2.76 million ounces.

 Loulo Resources and Reserves

*  Open pit mineral resources are the insitu mineral resources falling within the US$1 500/oz pit shell reported at an average cut-off of 0.5g/t. Underground mineral resources are those insitu mineral resources of the Yalea and Gara deposits that fall below the design pits and are reported at a cut-off of 1.5g/t for Yalea and 1.39g/t for Gara. Mineral resources were generated by Mr Abdoulaye Ngom, an officer of the company, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person.

**  Open pit mineral reserves are reported at a gold price of US$1 000/oz and an average cut-off of 1.1g/t and includes dilution and ore loss factors. Open pit mineral reserves were calculated by Mr Shaun Gillespie, an independent consultant and competent person. Underground mineral reserves are reported at a gold price of US$1 000/oz and a cut-off of 2.4g/t for Yalea underground and 2.2g/t for Gara underground and includes dilution and ore loss factors. Underground mineral reserves were calculated by Mr Juan Mitchell, an officer of the company, and reviewed by Mr Mark Odell, an independent consultant and competent person.

***  Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Loulo.

Gounkoto Resources and Reserves

*  Open pit mineral resources are the insitu mineral resources falling within the US$1 500/oz pit shell reported at a 0.5g/t cut-off. Underground mineral resources are those insitu mineral resources below the US$1 500/oz pit shell reported at 2.0g/t cut-off. Mineral resources were generated by Mr Abdoulaye Ngom, an officer of the company, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person.

**  Open pit mineral reserves are reported at a gold price of US$1 000/oz and 1.27g/t cut-off and include diluton and ore loss factors. Open pit mineral reserves were calculated by Mr Shaun Gillespie, an external consultant and competent person.

***  Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Gounkoto.