RANDGOLD RESOURCES LIMITED Incorporated in Jersey, Channel Islands Reg. No. 62686 LSE Trading Symbol: RRS Nasdaq Trading Symbol: GOLD FOUR NEW MINES ON HORIZON London, 10 November 2009 - Randgold Resources is to fast-track its Gounkoto project after a scoping study and first resource declaration confirmed robust economics well in excess of the company's hurdle rates. A prefeasibility study on the project, situated just 25 kilometres south of the company's flagship Loulo complex in Mali, has been scheduled for completion by the end of the first quarter of 2010. The scoping study estimated an inferred mineral resource of 2.65 million ounces at a grade of 6.3g/t, with pit optimisations at gold prices of USD650/oz and USD850/oz both showing internal rates of return in excess of 60%. Gounkoto joins a project line-up which also includes the Tongon mine in Cote d'Ivoire, currently being built and due for first production in the fourth quarter of 2010; Massawa in Senegal, where a prefeasibility study will be completed before the end of this year; and Kibali (formerly known as Moto) in the Democratic Republic of Congo, recently acquired in partnership with AngloGold Ashanti. Chief executive Mark Bristow said that while 2009 was, as expected, proving to be a tough operating year for the company - which is substantially expanding its flagship Loulo complex and has converted the Morila joint venture into a stockpile treatment operation - it was also producing some very significant rewards thanks to outstanding delivery from its exploration and project teams and success on the new business front. The company today reported gold sales of USD103.5 million for the third quarter, in line with the figure for the second quarter and up 32% on the corresponding period for 2008. However, with total cash costs rising 17% to USD68.2 million, profit for the quarter was USD13.6 million against the previous quarter's USD18.9 million and a loss of USD684 000 for the corresponding period in 2008. Costs for the quarter were impacted by higher open pit and underground mining costs at Loulo and by Morila's full transition from mining to stockpile processing. Loulo produced 86 940 ounces of gold at a total cash cost of USD591/oz (Q2: 87 261 ounces at USD483/oz). The cost increase was mainly attributable to the mobilisation of a second mining contractor and the mining of additional lower-grade volumes from the open pit as a result of the slower than expected ramp-up in tonnage from the Yalea underground operation. During the quarter Loulo produced its millionth ounce of gold. Water control and ventilation issues hampered the development and operating performance of Loulo's Yalea underground mine but remedial steps have been taken to correct this. During the quarter, work started on the boxcut for Gara, which will be Loulo's second underground mine. In its first full quarter as a pure stockpile processor, Morila produced 79 963 ounces of gold at a total cash cost of USD525/oz (Q2: 86 061 ounces at USD463/oz). The operation is maintaining its drive to contain costs and to ensure that it remains a strong cash generator until its closure, currently scheduled for 2013. The mine also continues to work on a feasibility study to establish a sustainable agribusiness for the local community. In Cote d'Ivoire, the development of the Tongon mine is ahead of schedule. During the quarter the government's interministerial commission approved the mining licence, clearing the way for the formalisation of the mining convention. Since the end of the quarter, Randgold and AngloGold Ashanti have completed their acquisition of Moto Goldmines. They have since announced an agreement to purchase an additional 20% stake in the Moto project from the Congolese parastatal OKIMO. Following this, the two companies will together own 90% of the project. The transaction is subject to certain closing conditions, including the approval of Randgold's shareholders. Also since the quarter-end, Randgold has announced that it has sold its interest in the Kiaka project in Burkina Faso to Volta Resources for CANUSD4 million in cash and 20 million common shares in Volta. It will retain an interest in the upside of the project through its equity holding in Volta. RANDGOLD RESOURCES ENQUIRIES: Chief Executive Financial Director Investor & Media Relations Dr Mark Bristow Graham Shuttleworth Kathy du Plessis +44 788 071 1386 +44 779 614 4438 +44 20 7557 7738 +44 779 775 2288 +44 1534 735 333 Email: randgoldresources@dpapr.com Website: www.randgoldresources.com ------------------------------------------------------------------------ REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2009 Q3 HIGHLIGHTS * Gounkoto scoping study confirms robust project economics * Massawa prefeasibility study and resource update on track for completion in Q4 * Business combination with Moto completed after quarter end * Strong market support for successful equity placement and Moto acquisition * Higher mining costs and stockpile adjustments impact on total cash costs * Delivery of long lead items ahead of schedule at Tongon * Loulo reaches 1 million oz production mark * Agreed sale of Kiaka with upside retained through equity Randgold Resources Limited ("Randgold") had 82.9 million shares in issue as at 30 September 2009 Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1826C_1-2009-11-9.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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