Loulo produced 106 564 ounces of gold during the quarter at a total cash cost of US$512/oz compared to 86 940 ounces in the previous quarter at US$591/oz. Total cash costs per ounce were reduced by 13% quarter on quarter, attributable to an increase in the ounces produced and reduced unit cost of mining, following an increase in plant throughput. The average gold price received during the quarter was US$984/oz, a 15% increase on the previous quarter (Q3 2009: US$853/oz). Together with the significantly increased production, this resulted in an increase in profits from mining activity of 137% to US$50.4 million (Q3 2009: US$21.3 million).

The increase in production was mainly attributable to an increase in plant throughput following the recently commissioned plant expansion, slightly offset by lower recoveries of 92.8% compared to 93.7% in the previous quarter.

The Yalea underground mine contributed 112 439 tonnes of ore at a grade of 4.08g/t for the quarter and a record 56 634 tonnes for December in spite of interruptions and delays relating to remedial action referred to last quarter and the impact of an early termination of the underground mining contract.

Production for December, however, was a record 56 634 tonnes. Tonnes processed from the higher grade Yalea opencast ore and the Loulo 3 pit impacted positively on the overall recovered grade from the mine. Total tonnes mined were higher than the previous quarter but in line with the plan.

Total cash costs per ounce increased by 2% in the current year to US$522/oz compared to US$511/oz in the prior year mainly as a result of the higher open cast mining cost, stronger Euro and the lower than planned ore tonnes from the Yalea underground which were replaced by open cast ore.

Total gold produced for the year of 351 591 ounces was just 2% lower than the annual forecast set by management at the beginning of the year, which was largely attributable to the slower build up in underground production. The impact of the underground delays was offset by discovery, development and expansion of the Loulo 3 deposit. In this regard, management decided to replace the underground development contractor and to take on this responsibility within the company.

Randgold owns 80% of Loulo with the Government of Mali owning 20%. The Government’s share is not a free carried interest. Randgold 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 consolidates 100% of Loulo and shows the non-controlling interest separately.

* Refer to explanation of non-GAAP measures provided.

+ Includes the impact of 18 750 ounces delivered at US$428/oz in the quarter ended 31 December 2009 and 22 749 ounces delivered at US$429/oz in the quarter ended 31 December 2008. Also includes the impact of 84 996 ounces for the year ended 31 December 2009 (31 December 2008: 80 496 ounces) delivered into the hedge at US$435/oz (year ended 31 December 2008: US$429/oz).