OPERATIONS

LOULO

A very satisfactory performance was achieved by the Loulo operation with record gold production of 70 660 ounces as a result of steady throughput at slightly higher grade and recovery rates. This was despite mining operations being adversely affected during the quarter by prolonged breakdowns experienced by the mining contractor with their Liebherr 994B excavators, resulting in lower than planned mined tonnages.

Total gold sales revenue increased significantly due to higher ounces sold and an improvement in the average gold price received, resulting in higher profit from mining activity. This was due to 42% less ounces being delivered into the hedge during the quarter compared to the previous quarter, as a result of the roll forward of hedged ounces into 2010 and an increase in the spot price received (refer to forward commodity contracts section for more detail). This was partly offset by increased costs resulting from higher diesel prices and the weaker dollar as well as stockpile movements as a result of the lower ore tons mined. Due to the lack of excavator availability, mill feed had to be supplemented with ore taken from stockpiles with a resultant increase in accounting charges.

The carbon in leach expansion project was completed and commissioned during the quarter which should ensure sustained recovery levels. Work on the tailings thickener and clarifier project progressed according to schedule with all the major equipment having arrived on site and it is expected to be complete by year end. Development of the Yalea twin underground declines by Shaft Sinkers reached a vertical depth of 75 metres and 400 metres from the surface by the end of the quarter and it is anticipated that the first ore from the underground mine will be delivered to the plant during the last quarter of this year.

Production statistics are:

LOULO RESULTS	Quarter	Quarter	Quarter	6 months	6 months
	ended	ended	ended	ended	ended
	30 Jun	31 Mar	30 Jun	30 Jun	30 Jun
	2007	2007	2006	2007	2006
Mining
Tonnes mined (000)	3 616	5 707	3 934	9 323	7 975
Ore tonnes mined (000)	517	657	724	1 174	1 103
Milling
Tonnes processed (000)	683	687	630	1 370	1 352
Head grade milled (g/t)	3.3	3.2	2.8	3.2	2.9
Recovery (%)	94.6	93.8	91.9	94.2	92.4
Ounces produced	70 660	67 908	51 233	138 568	115 910
Average price received (US$/oz) +	605	543	577	575	565
Cash operating costs * (US$/oz)	304	287	277	296	283
Total cash costs * (US$/oz)	340	320	313	330	319
Profit from mining activity (US$000) *	18 711	15 337	14 416	34 048	31 141
Gold sales (US$000) *+	42 755	37 034	30 445	79 789	68 063

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 19 247 ounces for the quarter (quarter ended 31 March 2007: 33 081 ounces) delivered into the hedge at US433/oz (quarter ended 31 March 2007: US$ 434/oz).

MORILA

Morila produced 86 832 ounces of gold during the quarter at a total cash cost of US$403/ounce. Production was down on the previous quarter due to the advance of the mining faces available not being sufficient to expose the planned higher grade blocks. While the plant throughput was again satisfactory, lower recoveries negatively affected production. The increase in total cash costs and operating cash costs per ounce is mainly due to the lower ounces produced. Unit costs were similar to last quarter with some escalation caused by unfavourable dollar to euro exchange rate fluctuations and higher oil prices.

MORILA RESULTS	Quarter	Quarter	Quarter	6 months	6 months
	ended	ended	ended	ended	ended
	30 Jun	31 Mar	30 Jun	30 Jun	30 Jun
	2007	2007	2006	2007	2006
Mining
Tonnes mined (000)	5 379	5 015	6 006	10 394	12 065
Ore tonnes mined (000)	791	935	1 591	1 726	3 069
Milling
Tonnes processed (000)	1 052	1 055	998	2 107	2 046
Head grade milled (g/t)	2.8	3.4	4.6	3.3	4.5
Recovery (%)	91.3	92.2	92.3	91.8	92.2
Ounces produced	86 832	103 224	135 387	190 056	271 166
Average price received (US$/oz)	668	652	628	659	594
Cash operating costs * (US$/oz)	355	278	187	313	190
Total cash costs * (US$/oz)	403	322	229	359	230
Profit from mining activity (US$000) *	23 700	31 803	51 443	55 503	94 073
Attributable (40% proportionately consolidated)
Gold sales (US$000)	23 465	26 031	32 996	49 496	62 620
Ounces produced	34 733	41 290	54 155	76 023	108 467
Profit from mining activity (US$000) *	9 480	12 721	20 577	22 201	37 629

* Refer to explanation of non-GAAP measures provided.

Mine management is confident that they will meet the planned production scheduled for the second half of the year and is pursuing strategies to recover the production shortfall incurred during the first half of the year.

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