Morila is owned by a Malian company Société des Mines de Morila SA, (Morila) which in turn is owned 80% by Morila Limited and 20% by the state of Mali.

Morila Limited is jointly owned by Randgold Resources and AngloGold Ashanti Limited and the mine is controlled by a 50:50 joint venture management committee. Responsibility for the day-to-day operations was transferred from AngloGold Ashanti to Randgold Resources with effect from 15 February 2008.

Morila produced its 5 millionth ounce during the year and has distributed an amount in excess of US$1.3 billion to its stakeholders since the mine began production in October 2000.

Drilling of fringe areas during the year within the final pit resulted in model changes and a revised forecast. The mine produced 425 828 ounces at a total cash cost of US$419 per ounce for the year. Morila did well in constraining costs which peaked in the third quarter due to world wide inflationary pressures. Peak prices of fuel, steel and transport declined in the final quarter and cash costs are expected to follow this trend.

1)Morila produced its 5 millionth ounce of gold during 2008.

A summary of the salient production and financial statistics as well as a comparison with the previous year’s results is shown below:

2 & 3)Morila is being prepared for the cessation of mining and the conversion to a stockpile treatment operation.

RESOURCES AND RESERVES
Final in pit grade control drilling was completed during the year and the remaining mineral resources updated. Infill drilling resulted in a decrease in the high grade material being replaced by significant lower grade tonnes. The net result is a gain in overall Life of Mine ounces, but a decrease in available head grade for 2009.

Grade control drilling has confirmed a small tongue of high grade material extending beneath the northern extension of the final pit and a scoping study is underway to determine if it is possible to mine these ounces from underground.

Due to the ore body morphology and the fact that the pit is in its final stages, optimisations at higher gold prices do not affect the pit size - no push backsare warranted. Ore reserves, based on the current ore body model and including depletion from mining to 31 December 2008, are shown below. It is currently estimated that mining activities will cease during April 2009 with processing of stockpiles continuing until 2013, dependent on the achieved gold price and input costs at the time.

Mining operations were carried out under contract by Somadex, a subsidiary of DTP Terrassement, the mining arm of the French construction company Bouygues. A partnership agreement, which incorporates the principle of sharing the potential savings achieved by the contractor, using agreed productivity assumptions and allowing for an agreed return, has been successful particularly in productivity improvements. A planned rightsizing programme has been designed together with Somadex and the union of mineworkers to speedily align the workforce to the operation’s requirements after April 2009.