OPERATIONS

LOULO

At Loulo profit from mining up 44% quarter on quarter and 10% year on year.

The mine produced 68 059 ounces of gold during the quarter at a total cash cost of US$436/oz (cash operating cost of US$399/oz), compared to last quarter's production of 58 020 ounces at US$398/oz (cash operating cost US$363/oz). Year on year, Loulo increased its gold production by 9.6% to 264 647 ounces at a total cash cost of US$372/oz (cash operating cost US$337/oz), compared to the previous year's production of 241 575 ounces at US$328/oz (cash operating cost US$294/oz).

The additional equipment mobilised by the mining contractor at the beginning of the quarter resulted in tonnes mined increasing to 7.5 million from 4.2 million in the previous quarter. While this impacted negatively on the cash operating cost by US$5.1 million for the quarter, it has improved the operational flexibility of the mine. Higher fuel prices and the effect of the weaker US dollar against the euro during the quarter also impacted negatively on the cash operating cost. Lower recoveries in the quarter, which resulted from a higher proportion of Yalea sulphide feed, have now been ameliorated by adjusting the reagents in the plant.

The higher mining costs will continue in the first quarter of 2008 when it is expected that the mining contractor will have eliminated the contractual backlog in the mining volumes, leaving the operation in a position to meet its throughput targets during the 2008 wet season.


 LOULO RESULTS 

Randgold Resources owns 80% of Loulo with the Government of Mali owning 20%. The Government's share is not a free carried interest. Randgold Resources has funded the Government portion of the investment in Loulo by way of shareholder loans and therefore controls 100% of the cash flows from Loulo until the shareholder loans are repaid.

Randgold Resources consolidates 100% of Loulo and shows the minority interest separately.

* Refer to explanation of non-GAAP measures provided.

+ Includes the impact of 19 254 ounces for the quarter (quarter ended 31 December 2006 : 27 158 ounces) delivered into the hedge at US$439/oz (quarter ended 31 December 2006: US$434/oz). Also includes the impact of 90 836 ounces for the year ended 31 December 2007 (31 December 2006 : 66 925 ounces) delivered into the hedge at US$436/oz (year ended 31 December 2006 : US435/oz).



MORILA

At Morila, profit from mining was up 23% to US$63.2 million for the quarter and down 7% to US$169.8 million for the year.

The mine had a difficult quarter completing a disappointing year. In the quarter, 129 193 ounces were produced, only slightly less than in the previous quarter but considerably less than the amount required to attain the recent forecast of 475 000 ounces for the year.

Gold production for 2007 was 449 815 ounces at a total cash cost of US$332/oz. The second half of the year did however significantly improve over the first half, with 259 759 ounces produced from July to December as opposed to 190 056 ounces in the first half of the year. The main reason for the failure to achieve forecast in the last quarter can be attributed to operational problems involving planning, grade control and plant lockup.

These problems contributed to higher costs which were also affected by world-wide inflation in the key inputs of fuel, steel and transport. The mine has taken steps to contain the mining costs by utilising in-pit waste dumping, thereby reducing haul distances.


 MORILA RESULTS  

*  Refer to explanation of non-GAAP measures provided.

 MORILA RESOURCE BASE (as at 31 December 2007) 

Cut-off grade for resources = 1g/t.

Resources are reported within the US$700/oz pit shell.

There has been a considerable drop in the quantity of mineral resource available after depletion as the open pit design is now insensitive to increases in gold price and recent underground scoping studies have indicated that the resource available at present is too small to warrant such underground development at current gold prices and costs.

Morila has received OHSAS 18001 certification following a safety audit carried out near the end of the year.

AngloGold Ashanti has notified Randgold Resources that it is considering the disposal of its 40% interest in Morila. The disposal process to be followed by AngloGold Ashanti will be in accordance with the Morila joint venture agreement. As part of this process the partners have agreed that, given Randgold Resources' ongoing presence in and commitment to the region, it will be in the best interest of all stakeholders for Randgold Resources to assume operatorship of the Morila mine as soon as possible.

AngloGold Ashanti has assured Randgold Resources that in the event of it being unable to realise acceptable value through a sale of its interest in Morila, it will retain its interest as a supportive stakeholder with Randgold Resources as the operator.