SOURCE: Randgold Resources Ld

December 23, 2010 13:35 ET

Randgold Resources performance update

JERSEY, CHANNEL ISLANDS--(Marketwire - December 23, 2010) -



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

OPERATIONAL AND POLITICAL ISSUES IMPACT RANDGOLD RESOURCES Q4
PRODUCTION

London, 23 December 2010- Randgold Resources said today the effect
of the continuing political impasse in Cote d'Ivoire on its Tongon mine
and a below-target contribution from its Loulo complex would have a
negative impact on its fourth quarter performance and its year end
results.

Chief executive Mark Bristow said Tongon was continuing to operate,
albeit on a curtailed basis, and under the circumstances the team was
doing a great job. Following the commissioning of the first stream in
October, the second mill was commissioned on time at the end of
November. However, the completion of the second stream has been
delayed by the non delivery of a number of key components which have
been held up in the Abidjan port and by the shipping delays caused by
the political crisis in the south of the country. While security at
and around the mine has not been affected by post-election
developments, Tongon's main supply route from Abidjan has been impeded
and although there are alternate routes, they are more complex and not
without challenges.

Given the ongoing political situation in the country and the possible
further deterioration of the supply chains in the short term, the mine
will continue to operate on one stream. Although the capital programme
is now behind schedule, construction of the final phases and
commissioning will continue, albeit with a smaller team. On this
basis, the company has revised its production guidance for Tongon and
stated that assuming the supply chains could be managed and the
situation on site remained as it is today, the mine was planning to
process approximately 350 000 tonnes of oxide ore at a grade of 3.4g/t
to produce approximately 35 000 ounces for the year. Bristow added
that given the current situation and the resultant delays, gold sales
were expected to differ to production.

He also updated the market on the progress at its Loulo mine complex:
In addition to the ongoing improvements at the Yalea underground mine
and continued good delivery at the Gara underground development, the
processing plant was settling down well and the last upgrade on the
power plant had been effected. Throughput had however been impacted by
some overruns on mill relining and extended downtime for the upgrade of
the switchgear following power interruptions earlier in the year. He
also cautioned that access to the higher grade ore in Loulo 3 and Gara
which was the basis of the expected strong finish to the year had only
been achieved in December instead of mid November and this would impact
Loulo's fourth quarter production negatively. Accordingly, the company
revised its production guidance for Loulo for the quarter to 80 to 85
000 ounces. Bristow pointed out that the delay was largely due to
limitations on mining equipment availability which were being addressed
by the two contractors on site."We knew that 2010 was going to be a
challenging year and the fourth
quarter is turning out to be even tougher than anticipated," Bristow
said."However, in addition to the continued progress being made at Loulo
there were also some additional and significant positives. The
Gounkoto final feasibility is on track for completion by year end, site
establishment has commenced and mining is planned to start next
quarter. The high grade Gounkoto project is forecast to substantially
enhance the Loulo mine operations and transform it into a megamine
complex." He also confirmed that the world class Kibali gold project
in the Democratic Republic of Congo continued to make excellent
progress and the construction start-up target of mid 2011 was still
very achievable."As far as the situation in Cote d'Ivoire is concerned,
it is encouraging to note that its West African neighbours, the African
Union and the international community are all committed to helping the
country find a permanent political solution." Bristow said.

The company will continue to monitor the political and security
situation in Cote d'Ivoire. Tongon is situated in the north of the
Cote d'Ivoire, 55 kilometres south of the border with Mali.

RANDGOLD RESOURCES ENQUIRIES:

Chief Executive   Financial Director   Investor & Media Relations
Mark Bristow      Graham Shuttleworth  Kathy du Plessis
+44 788 071 1386  +44 1534 735 333     +44 20 7557 7738
+44 779 775 2288  +44 779 771 1338     Email: randgoldresources@dpapr.com

Website: www.randgoldresources.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the
historical information contained herein, the matters discussed in this
news release are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934, and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the estimation
of mineral reserves and resources, the realisation of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as "will", "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Assumptions upon
which such forward-looking statements are based are in turn based on
factors and events that are not within the control of Randgold and
there is no assurance they will prove to be correct. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different from
those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
Randgold and Moto, risks related to mining operations, including
political risks and instability and risks related to international
operations, actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, as well as those factors discussed in the
section entitled "Risk Factors" in Randgold's annual report on Form
20-F for the year ended 31 December 2009 which was filed with the US
Securities and Exchange Commission (the "SEC") on 31 March 2010.
Although Randgold has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not
undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws.
CAUTIONARY NOTE TO US INVESTORS: the SEC permits companies, in their
filings with the SEC, to disclose only proven and probable ore
reserves. We use certain terms in this release, such as "resources",
that the SEC does not recognise and strictly prohibits us from
including in our filings with the SEC. Investors are cautioned not to
assume that all or any parts of our resources will ever be converted
into reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contact Information