London, 8 February 2010 - Randgold Resources (LSE: RRS) (Nasdaq: GOLD) crowned a year in which it expanded its flagship Loulo operation, progressed the development of a new mine at Tongon, advanced two major new discoveries and completed the Moto acquisition by posting a 79% year-on-year profit increase on the back of record production at Loulo.

Results for 2009, published today, show a profit of US$84.3 million (2008: US$47 million) for the year. The fourth quarter profit of US$38.7 million was up 185% quarter-on-quarter and 315% up on the corresponding quarter in 2008. Given the profit increase, the board increased the annual dividend by 30% to 17 US cents per share. The company’s balance sheet remains strong, with US$590 million in cash and no net debt.

Attributable group gold production for the year was up 14% at 488 255 ounces, boosted by a strong fourth quarter performance from Loulo, where the recently completed plant expansion significantly increased throughput. Loulo’s production for the year was 351 591 ounces (2008: 258 095 ounces), of which 106 564 ounces came in the last quarter. The Morila joint venture - successfully converted to a stockpile retreatment operation at the beginning of 2009 - produced 341 661 ounces, slightly higher than forecast due to better than planned recoveries and grade.

The prefeasibility study on the Massawa project in Senegal was completed, delivering a reserve of 1.5 million ounces at a grade of 4.6g/t and pointing to more upside. The board approved the study which demonstrated that even without the underground resources it meets the company’s investment hurdle rates. It has now moved into the feasibility phase, while the prefeasibility study on the Gounkoto project near Loulo in Mali is on track for completion in the first quarter of 2010. The initial scoping study on Gounkoto defined a robust resource at a significant grade.

The new projects, combined with a resource conversion drive, have increased attributable group reserves by an estimated 60%. An updated reserve and resource statement will be published with the company’s annual report in March.

In the meantime, the development of the Tongon project in Côte d’Ivoire has continued to make good progress and the new mine is on track to start production in the fourth quarter of this year. At Loulo, the Yalea underground mine is still being developed but contributed a record 57 000 tonnes of ore in the December month. Work on Gara, the second underground mine at Loulo, is scheduled to start during the first half of 2010.

The company today also announced that it was moving the target date for first production at the recently acquired Kibali project in the Democratic Republic of Congo ahead to January 2014. Randgold will manage the project - a joint venture with AngloGold Ashanti - in which it has a 45% interest, with the DRC parastatal OKIMO holding the remaining 10%.

An update of the existing data on Kibali has produced a 23% increase in the indicated resource, which now stands at 13.93 million ounces, while the reserves have grown by 67% to 9.2 million ounces. The company is now focusing on the relocation programme, the environmental and social impact baseline studies, and the optimisation of the development schedule.

Chief executive Mark Bristow said the year had been an extremely challenging one, in which the Randgold team had to meet ambitious production targets while expanding Loulo, building Tongon, moving ahead on Massawa and Gounkoto, and swiftly completing the contested acquisition of Moto - one of the gold mining industry’s more complex M&A transactions in recent years - before acquiring an additional 20% of the Kibali project on behalf of the joint venture.

“The team rose to the challenge and, as our results show, we did very well in every sphere of the business, once again creating real value for all our stakeholders,” he said.

“The year ahead is going to be another testing one, in which we aim to increase production at Loulo further, pour first gold at Tongon and progress the Kibali, Massawa and Gounkoto projects. We’ll also be maintaining our strong focus on the exploration programmes which have already delivered so much and will continue to be the main driver of our organic growth.”