Consolidated Statement of Financial Position

These results are presented as the fourth quarter report and a preliminary announcement of the annual results for the year ended 31 December 2009. They have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS).  The same accounting policies, estimates, presentation and methods of computation are followed in the quarterly report and preliminary announcement as applied by the group in its audited consolidated financial statements for the year ended 31 December 2008, with the exception of the adoption of the amendments to IAS 1 (Revised) Presentation of Financial Statements, and which will form the basis of the 2009 annual report.

This announcement has been prepared in accordance with the guidance set out in the Listing Rules of the London Stock Exchange for preliminary announcements and is also in compliance with IAS 34 - Interim Financial Reporting.’

Property, plant and equipment for the year ended 31 December 2009 increased by US$199.6 million. This was mainly due to capital expenditure of US$74 million incurred on the underground developments and purchase of equipment at Yalea and Gara as well as the crusher plant upgrade, stockpile reclaim facility, overland conveyer expenditure, power plant expansion and the oxygen plant expansion at Loulo. Capital expenditure at Tongon included costs related to earthworks, site establishment, infrastructure, design and engineering, as well as progress payments on the mills, crushers and fleet amounting to US$120 million. It also includes our share (US$2 million) of the assets owned through a joint venture asset leasing company with DTP Terrassement. The company owns the mining equipment which it leases to Randgold operations. Property, plant and equipment also includes US$0.5 million related to the Moto group that was acquired in October 2009. Refer to the acquisitions table for details of the net assets acquired.

The decrease in the deferred tax asset, as well as the decrease in long term ore stockpiles is due to the decrease in stockpiles at Morila following the transitioning at Morila from open pit mining to stockpile processing.

The decrease in non-current receivables from December 2008 to December 2009 is the result of the continued decrease in TVA and fuel duty balances at Morila.

Mineral properties arose as a result of the acquisition of 50% of the Moto group in October 2009 and the additional acquisition of an effective 10% of the issued share capital in Kibali Goldmines SPRL.

Non-current available-for-sale financial assets consist of auction rate securities ("ARS") with a par value of US$49 million. The carrying value of these investments is US$29 million, following an additional provision of US$9.6 million which was made during the year ended 31 December 2009, as well as provisions made against these ARS during the latter part of 2008. The provisions have been made as a result of the deterioration of the underlying credit ratings of the collateral of certain of the ARS. Management estimates the fair value of these investments at each reporting period using a mark to model valuation method.

Current available-for-sale financial assets represent an investment in 20 million Volta Resources Inc shares valued at US$16 million and our 50% share of 7.9 million shares in Kilo Goldmines Ltd valued at US$1.8 million. The shares in Volta Resources were acquired as part of the consideration received for the sale of the Kiaka project in Burkina Faso to Volta Resources while the shares in Kilo Goldmines were acquired as part of the Moto acquisition.

The increase in current inventories and ore stockpiles is due to an increase in supplies and insurance spares at Loulo, due to increased demand for mining strategic stocks, reagents and grinding media resulting from the development of the underground mines, as well as an increase in stockpiles at Loulo during the year in line with the mine plan.

The increase in short term receivables is due to an increase in TVA balances at Loulo following the end of the exoneration period on 8 November 2008 (US$36.8 million increase), as well as advances made to contractors at Loulo. The gold receivable at Loulo at 31 December 2009 also increased by US$8.5 million from the previous year, due to timing of the receipt of funds from the sale of gold. The increase in receivables also include an amount owed by Anglogold Ashanti Limited of US$5 million at year end following the Moto acquisition in October 2009 and subsequent additional 20% Kibali acquisition in December. US$3.7 million of deferred cash consideration in respect of the sale of the Kiaka project is also included in receivables.

The increase in cash and cash equivalents is the result of the successful equity raising in August 2009 where 5.75 million shares were issued to shareholders, raising US$329.7 million after underwriting commission and expenses. The acquisition of the Moto group in October 2009 lead to a net cash increase of US$171 million (see table below for details of the acquisition). The acquisition of a further 10% of the issued share capital in Kibali partially offset these with a net cash outflow of US$57 million. The group also produced strong cashflows from operations (US$56.9 million) which were offset by significant investments in property, plant and equipment, mostly related to the development of the Loulo underground and Tongon mines.

The financial instruments liability decreased from US$53.1 million at 31 December 2008 to US$25.3 million at the end of December 2009, calculated at the gold price as at 31 December 2009 of US$1 096/oz (31 December 2008: US$865/oz), due to the company delivering 84 996 ounces into its hedge positions during the year ended 31 December 2009.

The increase in accounts payable and accrued liabilities is mainly as a result of the timing of payments of creditors and closer management of trade creditors at Loulo and Morila (US$15 million increase year on year). The increase is further due to an US$8 million accrual as a result of the acquisition of an additional 5% interest in the Tongon gold project in Côte d’Ivoire. Accounts payable also include an amount of US$5 million relating to our share of the new joint venture asset leasing company’s payables as at 31 December 2009.

The current tax payable balance at 31 December 2009 is lower than the balance at 31 December 2008 as a result of the lower profits from mining at Morila during the current year, following the transitioning of the mine to a stockpile treatment operation as detailed earlier in this report.


ACQUISITION OF JOINT VENTURE INTEREST IN MOTO GOLDMINES LIMITED (“Moto”)

On 15 October 2009 the acquisition of 100% of Moto, as announced on 5 August 2009, was completed. Randgold and AngloGold Ashanti, through their indirect jointly owned subsidiary, now control Moto, having acquired all 111 085 009 outstanding Moto common shares.

The acquisition had the following effect on the Group’s assets and liabilities :

MOTO ACQUISITION

The fair value adjustments arise in respect of under-provided taxation liabilities and payments due to the DRC Government.

The excess of fair value of consideration paid over the fair value of the net assets acquired is wholly attributed to mineral properties as it represents the gold resources of the Kibali gold project; Moto owns a 70% interest in the Kibali project and therefore following the acquisition of the joint venture interest in Moto, Randgold had an indirect 35% interest in Kibali Goldmines SPRL. which holds the licence in respect of the Kibali gold project.

We therefore proportionally consolidated our 50% share in Moto from 15 October 2009 and recognised a 15% non-controlling interest in Kibali Goldmines SPRL.

The fair value of the consideration paid by Randgold comprises:

ACQUISITION OF FURTHER INTEREST IN THE KIBALI PROJECT

On 22 December 2009 Randgold, in conjunction with its joint venture partner AngloGold Ashanti completed the acquisition of 20% of Kibali Goldmines SPRL, through their indirect jointly owned subsidiary Kibali (Jersey) Limited. The cash consideration paid was US$113.6 million and therefore each company paid US$56.8 million for their respective 10% shareholding. Randgold also incurred US$1.2 million of transaction costs and therefore the total consideration for Randgold’s 10% interest was US$58 million.

The fair value of the net assets acquired was US$14.5 million. The excess of the fair value of the consideration paid over the fair value of the net assets acquired of US$43.5 million has been wholly attributed to mineral properties as it represent the increase in Randgold’s interest in the gold resources of the Kibali Gold Project.

As a result of this further acquisition Randgold has a 45% interest in Kibali Goldmines SPRL; 35% is held indirectly through its joint venture interest in Moto Goldmines Limited and 10% indirectly through its joint venture interest in Kibali (Jersey) Limited. As a result we reduced the non-controlling interest recognised in respect of Kibali Goldmines SPRL from 15% to 5% from 22 December 2009.