1. Nature Of Operations

The company and its subsidiaries (the ‘group’) together with its joint ventures carry out exploration and gold mining activities. Currently there are two operating mines in Mali, West Africa: The Morila gold mine, which commenced production in October 2000, and the Loulo mine complex, which commenced production in November 2005. The group also has a portfolio of exploration projects in West and Central Africa.

The interests of the group in its operating mines are held through Morila SA (‘Morila’) which owns the Morila mine and Somilo SA (‘Somilo’) which owns the Loulo mine. Randgold holds an effective 40% interest in Morila, following the sale to AngloGold Ashanti Limited on 3 July 2000 of one-half of Randgold’s subsidiary, Morila Limited. Management of Morila Limited, the 80% shareholder of Morila SA, is effected through a joint venture committee, with Randgold and AngloGold Ashanti each appointing one-half of the members of the committee. During 2007 AngloGold Services Mali SA (‘Anser’), a subsidiary of AngloGold Ashanti, was the operator of Morila. On 15 February 2008 Randgold assumed responsibility for the operatorship.

Randgold holds an effective 80% interest in Loulo. The remaining 20% interest is held by the Malian government. Randgold is the operator of Loulo.

A third mine, Tongon in Côte d’Ivoire is in the main construction phase. Progress has been made regarding the approval of the mining convention, with the Tongon Mining Licence having being approved by the COMINE (interministerial commission).

Following the acquisition by the company of a joint venture interest in Moto Goldmines Limited on 15 October 2009, in conjunction with AngloGold Ashanti Limited and the acquisition of a further effective 10% interest in the Kibali gold project on 22 December 2009, the group now holds an effective interest of 45% in the Kibali gold project in the Democratic Republic of the Congo. Further details of these acquisitions are set out in note 30.

The group has various exploration programmes ranging from substantial to early stage in Mali, Senegal, Burkina Faso, Côte d’Ivoire and the Democratic Republic of the Congo.