SOURCE: Randgold Resources

August 02, 2006 13:41 ET

Randgold Resources announces former contractor liquidated

Jersey, Channel Islands -- (MARKET WIRE) -- August 2, 2006 --

Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD

Pretoria, 2 August 2006 - The Pretoria High Court today granted a final order of liquidation against MDM Ferroman (Pty) Limited ("MDM"), formerly the main contractor for the plant at Randgold Resources' (LSE:RRS) (Nasdaq: GOLD) new mine at Loulo in Mali. The application for the order had been brought by Randgold Resources' subsidiary, Societe des Mines de Loulo ("Somilo").

In December last year Somilo took back the Loulo project from MDM on the grounds that MDM had defaulted on the contract. The plant has since been substantially completed by a Randgold Resources team.

Dr Mark Bristow, chief executive of Randgold Resources and chairman of Somilo welcomed today's judgment and said the granting of the final liquidation order opened the way for the company to proceed with additional claims against MDM for amounts owed. He said as MDM's chief creditor, Somilo would request the liquidators to convene a full enquiry into MDM's financial affairs and the conduct of its directors.


Chief Executive    Financial Director  Investor & Media Relations
Dr Mark Bristow    Roger Williams      Kathy du Plessis
+44 779 775 2288   +44 791 709 8939    +27 11 728 4701
+223 675 0122                          Fax: +27 11 728 2547
                                       Cell: +27 83 266 5847

DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The 2005 annual report notes that the financial statements do not reflect any provisions or other adjustments that might arise from the claims and legal process initiated by Loulo against MDM. Other potential risks and uncertainties include risks associated with: fluctuations in the market price of gold, gold production at Morila, the development of Loulo and estimates of resources, reserves and mine life. For a discussion on such other risk factors refer to the annual report on Form 20-F for the year ended 31 December 2005 which was filed with the United States Securities and Exchange Commission (the 'SEC') on 29 June 2006. Randgold Resources assumes no obligation to update information in this release.

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