OPERATIONS

LOULO

It was another good production quarter at Loulo with the team sustaining the momentum generated during the last quarter of 2006. The crusher and plant circuit operated well and resulted in a quarterly production of 67 908 ounces at a total cash cost of US$320/oz, fuelled by a slightly higher plant throughput and steady feed grade.

Mining moved a total of 5.7 million tonnes at a strip ratio of 7.7:1 and showed improved fleet availabilities on primary equipment.

A total of 33 081 ounces of gold were delivered against the hedge at US$434/oz which resulted in an overall average received gold price of US$543/oz. While increased mining volumes during the quarter impacted on the overall costs, unit costs were well contained.

Production statistics are:

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 then shows the minority interest separately.

*    Refer to explanation of non-GAAP measures provided.

+    Includes the impact of 33 081 ounces delivered into the hedge at US$434/oz for the quarter ended 31 March 2007 and 66 922 ounces at US$434/oz for the year ended 31 December 2006.


Resource and Reserve Update

Loulo resource and reserve updates to December 2006, incorporating mining depletion were released this quarter in the 2006 annual report. Despite mining depletion of 262 604 ounces, total resources increased by 1.42 million ounces to 11.35 million ounces from extensions to both the Gara and Yalea orebodies as well as the addition of Faraba, which contributed 570 000 inferred ounces. 

The reserves have also seen a significant increase following the conversion of the increased resource ounces to reserves through updated mine designs and optimisations of the open pits and underground sections. Including depletion, reserves increased from 5.6 million ounces to 6.8 million ounces, attributable mostly to the expansion of the Gara the underground reserve. 

Proved and Probable Ore Reserves

MORILA

Morila produced 103 224 ounces of gold in the first quarter of the year at a total cash cost of US$322/oz. Production for the March 2007 quarter was close to expectations as the mine plan indicated that lower grades would be accessed in the pit during the first half of the year. Improvements are expected during the second half of the year as higher grades are planned to be mined and processed. The plant performed satisfactorily and to some extent made up for the shortfall in grade.

*    Refer to explanation of non-GAAP measures provided.

The reserve base for Morila as at end 2006 is tabulated below with a comparison to figures as at the end of 2005.

As a result of the increased gold price more of the marginal stockpile material can now be treated economically.  Therefore, despite depletion, ore reserves have been partially replaced.