Loulo Gold Mine

Société des Mines de Loulo (SOMILO) S.A. which owns the 372km² Loulo mining lease in western Mali, is the 80% owned subsidiary of Randgold Resources Limited. The remaining 20% is owned by the Government of Mali. The project is being developed as both an open pit and underground operation by Randgold Resources to exploit two main orebodies; Gara and Yalea, as well as a number of satellite deposits. The initial open pit mine was financed, developed and then commissioned by Randgold Resources in September 2005. The development of the underground phase is expected to be financed from internal cashflow and by Randgold. The original Gara orebody, was discovered by Syndicate d'Or in 1981 and the Yalea orebody, the principal orebody, by Randgold Resources in 1996/1997. The mining lease still boasts a significant portfolio of prospective targets which are being explored and evaluated through an ongoing exploration programme.

Project Update to 31 March 2009...

LOULO

Loulo produced 70 826 ounces of gold during the quarter, at a total cash cost of US$501/oz compared to 60 495 ounces in the previous quarter at US$523/oz. The increase in production was mainly attributable to higher ore grades at 3.7g/t (Q4 2008: 3.1g/t) plus slightly higher throughput offset by the effect of lower recoveries. Tonnes processed from the higher grade Yalea underground mine of 101 922 tonnes at 5.4g/t during the current quarter (Q4 2008: 60 140 tonnes at 4.4g/t) impacted positively on the overall recovered grade from the mine. Throughput was maintained despite an extended planned shutdown of nine days in March for the crusher expansion project which is anticipated to significantly increase throughput going forward as the mine ramps up to 300 000 tpm. This was achieved by utilising the stockpile created during the last quarter in 2008 for this purpose. The commissioning of the additional oxygen plant and Aachen reactors was delayed due to shipping problems and impacted negatively on the recovery, but has now been completed.

Total tonnes mined were higher than the previous quarter but in line with the plan. The decrease in total cash cost per ounce is mainly attributable to higher ounces produced. This was partially offset by an increase in the consumables used in the metallurgical process resulting from the change in the mix of ore processed through the plant and an increase in waste tonnes mined. 

LOULO RESULTS	Quarter	Quarter	Quarter	12 months
	ended	ended	ended	ended
	31 Mar	31 Dec	31 Mar	31 Dec
	2009	2008	2008	2008
Mining
Tonnes mined (000)	5 728	5 434	7 846	26 231
Ore tonnes mined (000)	633	978	869	3 403
Milling
Tonnes processed (000)	685	676	701	2 721
Head grade milled (g/t)	3.7	3.1	3.1	3.2
Recovery (%)	87.1	90.5	90.9	91.2
Ounces produced	70 826	60 495	63 249	258 095
Average price received+ (US$/oz)	765	669	787	738
Cash operating costs* (US$/oz)	459	484	429	469
Total cash costs* (US$/oz)	501	523	470	511
Profit from mining activity* (US$000)	16 137	8 853	19 876	58 521
Gold sales*+ (US$000)	51 648	40 464	49 589	190 336

* Refer to explanation of non-GAAP measures provided.

+ Includes the impact of 23 748 ounces delivered at US$441/oz in the quarter ended 31 March 2009 and 22 749 ounces delivered at US$429/oz in the quarter ended 31 December 2008. Also includes the impact of 17 499 ounces for the quarter ended 31 March 2008 at US$429/oz and 80 496 ounces delivered at US$429/oz for the year ended 31 December 2008.

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 non-controlling interest separately.

Reserve Update

During the quarter, the group released its annual resource and reserve declaration and the relevant extract relating to the Loulo reserves is shown in the table below, including a comparison with 2007 figures:

LOULO ORE RESERVES							Attributable
							gold
	Tonnes	Tonnes	Grade	Grade	Gold	Gold	(80%)
	(Mt)	(Mt)	(g/t)	(g/t)	(Moz)	(Moz)	(Moz)
Category	2008	2007	2008	2007	2008	2007	2008
Proved	7.08	8.95	3.38	3.36	0.77	0.97	0.62
Probable	43.51	45.47	4.60	4.40	6.43	6.43	5.14
Total	50.59	54.42	4.42	4.23	7.20	7.40	5.76