Exploration Activities

The quarter brought to an end a busy and successful year in exploration and put the company in a good position to continue its strategy of development through exploration successes and organic growth. The company has a quality ground holding of 14 311km2 across some of the most prospective gold belts in Africa, from the Democratic Republic of Congo in the east to Senegal in the west, and a resource triangle containing 250 well balanced targets from the regional level to reserve definition.

At Gounkoto, the prefeasibility drilling programme was completed during the quarter with 58 diamond holes for 12 878 metres and 18 RC holes for 1 300 metres drilled, taking the inter hole spacing to 50 by 50 metres, within the US$1 000 pit shell. All results have been received and show a continuation of high grade mineralisation in the southern part of the deposit, which steepens and narrows in the central area before dilating again in the north. The results also highlight an encouraging down-dip potential in the southern part of the deposit: GKDH29 49.6 metres at 13.73g/t. While boreholes to the north (GKDH145: 4.55 metres at 7.48g/t) and south (GKDH18: 18.70 metres at 9.12g/t) indicate mineralisation is open. So far a 1.3 kilometre strike has been evaluated.

GOUNKOTO: DIAMOND DRILL RESULTS RECEIVED IN Q4

Additional exploration in the Gounkoto area will include further assessment and testing of the nearby targets, including P64, Toronto, Bandankoto and Faraba (inferred resources defined: 567 000 at 2.6g/t). Faraba is at a more advanced stage of exploration than the other targets and work here will be primarily focused on re-assessing its economic feasibility in light of Gounkoto. Work at P64, Toronto and Bandankoto will seek to develop these satellites targets further.

At Loulo 3, infill and extension RC drilling was carried out with the completion 43 holes for 3 103 metres and additional ounces continued to be added to this satellite deposit. Mineralisation has been extended a further 650 metres north of the pit limit into the old exploration camp.

LOULO 3: NORTH EXTENSION DRILLING RESULTS RECEIVED DURING Q4

The exploration team has been providing the mine with critical ounces from satellite deposits, which have enabled the mine to meet its budget due to the slower than anticipated underground build up. A range of targets at various stages of development exists around the Loulo plant and exploration will focus on those with the highest potential to deliver surface ounces. Following the completion of the current work at Loulo 3, these include: Loulo 1, PQ10, Bolibanta, Baboto and Yalea Structure/L3-P125 Gap.

On the Bambadji joint venture in Senegal, the team has focused on further mapping and sampling on the priority areas of interest to generate targets for drill testing during this season. The most promising of these are: Kolya and Kabe West, Kabetea-Goldfinger, and Baquata targets. The existing data across the permit (including the results from drilling completed during 2009) were re-interpreted which has led to a new and updated geological map and model across the permit.

The discovery of Gounkoto and the continued success at Loulo 3 demonstrates the potential to add ounces from areas, not only surrounding the mine but also in the Loulo district. Loulo has historically shown the ability to increase the mineral resource base year on year and replace the ounces mined. The company’s efforts have not only been to increase mineral reserves and resources at Loulo but to use it as a centre for regional exploration programmes. Objectives for 2010 at Loulo include the completion of a feasibility study at Gounkoto, the definition of additional mineral resources from satellite deposits and the development of targets in the Bambadji joint venture.

At Massawa in May, Randgold announced an initial inferred resource of 3.39Moz at 2.87g/t and the results of a scoping study which passed all the company’s hurdle rates. The project has since progressed to prefeasibility study stage. In the fourth quarter, 56 diamond holes for 13 995 metres were completed. In the Central Zone the results highlighted an altered envelope within which locates two to three discrete shears, 1 to 20 metres wide, containing coarse visible gold and bonanza style grades. Eleven priority holes were drilled at 25 metre spacing, both on section and between sections to verify the continuity. All holes intersected these shears and the grades confirmed the nugget nature of the coarse gold distribution. One hole returned exceptionally high grade: MWDDH398 - 32.20 metres at 51.60g/t including 5.80 metres at 278.20g/t and 1 metre at 1 568g/t. The shears have been modelled separately and have formed the basis on which the new resources model has been calculated. In North 2, a high grade south plunging shoot has been delineated with an average grade of plus 7g/t within a broader envelope grading 4.33g/t. The up-plunge continuation has been drilled in Lion Extension confirming an additional 255 metres of strike.

MASSAWA: DIAMOND DRILL RESULTS RECEIVED IN Q4

In 2010, the principal objective at Massawa will be the completion of the feasibility study together with the evaluation of extensions to the deposit both down dip, along strike to the north in Lion Extension and to the south where only wide spaced (400 to 600 metres) drilling has been completed over 3.8 kilometres. There are a number of potential satellite deposits within a 15 kilometre radius, including: Delaya, Sofia, Bambaraya and the Bakan Corridor, all of which will be further drill tested in 2010.

In Côte d’Ivoire, with construction well underway and the arrival of the first mill at Tongon, exploration’s principal objective for 2010 is the discovery of additional ounces. Following the completion of a generative study, including a prospectivity analysis, soil geochemistry has identified gold in soil anomalies over four new targets and the first trench at Seydou intersected significant mineralisation: 19 metres at 5.32g/t from sheared and silicified volcaniclastics. In addition, at Tongon West, results are defining a small low grade resource. Preparations are currently underway to fly an airborne electromagnetic survey, not only over the Nielle permit which hosts the Tongon deposit, but also the adjacent Diouala and Fapoha permits on the Senoufo Greenstone Belt.

In Burkina Faso, the sale of Kiaka to Volta Resources was completed and the team is now working on the identification of new opportunities. A first pass review has been completed over the Southwest corner of the country and includes the Greenstone Belts of Loumana, Banfora, Hounde and Boromo. A more detailed generative study is being applied, with the integration of our West African models to the geology, to identify areas of interest in order to highlight permit applications and/or joint venture opportunities.

In the Democratic Republic of Congo following the acquisition of Moto Goldmines at the beginning of the quarter, Randgold moved quickly to establish a geological team onsite at Kibali. The primary objective was to complete a detailed geological analysis of the KCD deposit, to ultimately understand the geology, structure, alteration and mineralisation and the construction of a geological model, as well as to look at the possibility of a lateral link, between KCD and the Gorumbwa deposits.

Work focused on:

• resource drilling (44 holes completed, 8 484.3metres);
  
• core review of selective KCD holes (60 holes) and geological modelling;
  
• surface mapping of the KCD - Gorumbwa area;
  
• the completion of two strategic holes (1 556.7 metres) in the KCD - Gorumbwa gap. In DDD456 a 45 metre wide deformed and Si-pyrite altered zone was intersected from 515 to 560 metres, three anomalous intersections, with the best 8.05 metres at 3.43g/t (536.75 to 544.8 metres) which may correlate with Sessenge 150 metres to the southeast. Results for DDD457 are pending;
  
• ongoing soil geochemistry over block 1 west of KCD, 4 new gold anomalies identified;
  
• sampling of the old Durba mill (251 samples);
  
• first pass interpretation of the airborne magnetic data; and
  
• reconnaissance pitting (10) on the ATF concession.

The best intersections (down hole lengths) received during the quarter include:

• DDD353: 30 metres at 4.21g/t from 121 to 151 metres;
  
• DDD366: 38 metres at 3.41 from 95 to 133m, 36 metres at 4.59g/t from 531 to 567 metres;,
  
• DDD413: 24 metres at 5.03g/t from 179 to 203 metres;
  
• DDD416: 16 metres at 6.75g/t from 56 to 72 metres;
  
• DDD418: 10 metres at 11.85g/t from 28 to 38 metres;
  
• DDD421: 18 metres at 7.28g/t from 2 to 20 metres;
  
• DDD422: 27 metres at 5.56g/t from 279 to 306 metres;
  
• DDD423: 30 metres at 12.22g/t from 143 to 173 metres;
  
• DDD424: 36 metres at 7.5g/t from 60 to 96 metres;
  
• DDD425: 28 metres at 12.99g/t from 93 to 121 metres.

Objectives in 2010 at Kibali will include: continued resource conversion work, not only on the KCD deposit but also satellite deposits; the identification of new near mine resources; and generative work on the wider lease area through the completion of soil sampling and the flying of an airborne electro-magnetic survey.