1st Quarter Results

RANDGOLD RESOURCES LIMITEDIncorporated in Jersey, Channel Islands Reg. No. 62686LSE Trading Symbol: RRSNASDAQ Trading Symbol: GOLD

ROBUST Q1 PERFORMANCE SETS PACE AS RANDGOLD CHASES DOWN 2014 TARGET

London, 8 May 2014 - A robust first quarter performance got Randgold Resources off to a strong start as it set out to crack the million-ounce production mark for the year.

Results for the three months to 31 March, published today, show the company produced a record 283 763 ounces, boosted by an increased contribution from Kibali. Kibali began commercial production in October last year and started commissioning its second sulphide mill circuit during the past quarter. The mine was officially opened by Democratic Republic of Congo's Minister of Mines Martin Kabwelulu last week.

Gold sales of $363 million were up quarter on quarter, following a 3% increase in the average gold price received, and on the corresponding prior year quarter despite a 21% drop in the average gold price received. Total cash cost per ounce of $685 was up 9% quarter on quarter but down 19% on the corresponding prior year quarter on the back of the ramp-up of production at Kibali and significantly higher grades and recovery at the Loulo-Gounkoto complex in Mali. Profit from mining decreased by 4% quarter on quarter to $171 million, due to the increase in costs, but was up 14% on the corresponding quarter in 2013.

Operationally Loulo's underground mines sustained their increasing delivery with another record output by both Yalea and Gara. Production and development at Kibali were on target. Tongon in Côte d'Ivoire again struggled with a below par throughput rate as the Vibrocone crushers, intended to address this issue, continued to experience mechanical failures.

Chief executive Mark Bristow said overall Randgold's operations and development projects had both performed well and the company's total cash cost and production guidance for the year remained intact.

"We have looked closely at our mines to ensure that they will still be profitable at $1 000/oz and we'll continue to review all operations against a range of gold price scenarios. We have a solid 2014 budget in place and we have effectively banked our five-year plan. Our focus is now on rolling this out over a 10-year period," he said.

"Kibali's reserve base will take it beyond the 10 years at around 600 000 ounces per year. At the Loulo-Gounkoto complex, the potential for resource conversion at Yalea and Gara and the high grade underground project at Gounkoto should also enable it to deliver 600 000 ounces and more per year over 10 years, however, there is still work to do to optimise production in the last 4 years of the 10 year plan. Together with the Tongon Life of Mine extension plan, these potential reserve extensions should give us time to deliver a new world class discovery from our portfolio of quality greenfields prospects."

Bristow said to improve the chances of such a discovery the turnover of targets was being accelerated, with 45 marginal targets having been rejected to reduce the total to 115. Key hunting grounds for a new discovery were Côte d'Ivoire, the Loulo district and neighbouring Senegal, and the northeast DRC which hosts Kibali as well as Randgold's Kilogold joint venture.

RANDGOLD ENQUIRIES:

Website: www.randgoldresources.com

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REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2014

+ Cash and cash equivalents excludes $10.9 million at 31 March 2014 ($6.1 million at 31 December 2013 and $37.4 million at 31 March 2013) that relates to the group's attributable cash held in Morila, Kibali and the group's asset leasing companies which are equity accounted.

* Refer to explanation of non-GAAP measures provided. Randgold consolidates 100% of Loulo, Gounkoto and Tongon, 40% of Morila and 45% of Kibali in the consolidated non-GAAP measures.

# Gold on hand represents gold in doré at the mines (attributable share) multiplied by the prevailing spot gold price at the end of the period.

The results in this report have been neither reviewed nor audited. All financial numbers are in US dollars ($) unless otherwise stated.

Gold sales for the quarter of $362.9 million increased by 2% compared to the previous quarter due to a 3% increase in the average gold price received of $1 296/oz (Q4 2013: $1 257/oz), offset by a 1% decrease in ounces sold. Compared to the corresponding quarter in 2013, gold sales were up by 17% as a result of a 48% increase in ounces sold, offset by a 21% decrease in the average gold price received (Q1 2013: $1 638/oz). The group produced a record 283 763oz during the quarter, boosted by Kibali's increased contribution up 1% on the previous quarter and 43% on the prior year corresponding quarter.

Total cash costs for the quarter under review of $191.9 million were 8% higher than the previous quarter, reflecting the increase in production and throughput at Kibali which began commercial production at the start of October 2013 and started commissioning the second phase sulphide mill stream during the current quarter. Total cash cost per ounce increased by 9% quarter on quarter to $685/oz but was 19% lower when compared to Q1 2013. The increase in cash cost per ounce for the quarter compared to the previous quarter was the result of lower production at Tongon on the back of a drop in throughput and head grades as well as lower recoveries at the Loulo-Gounkoto complex. The drop in cash cost per ounce for the quarter compared to the corresponding quarter of 2013 reflects the production at Kibali, as well as significantly higher grades and recovery at Loulo-Gounkoto.

Profit from mining decreased by 4% to $171.0 million from the previous quarter, due to the increase in costs as mentioned above but increased by 14% on the corresponding quarter of the previous year (Q1 2013: $150.4 million), mainly due to the ramp up of production at Kibali.

Exploration and corporate expenditure of $10.8 million for the current quarter increased by 27% on the previous quarter due to an increase in corporate staff expenditure, partially offset by a reduction in exploration costs during the quarter. Exploration and corporate expenditure decreased by 17% on the corresponding quarter of 2013 due to lower exploration expenditure.

Depreciation and amortisation of $36.6 million increased by 95% against the previous quarter and was down 27% from Q1 2013, following an adjustment in Q4 2013. Traditionally adjustments are made to the depreciation charge at the end of each year to align it with the group's tonnes milled basis, as opposed to the straight line Life of Mine (LOM) base used by the operations during the first three quarters of the year. The tonnes milled basis calculation is now being performed on a quarterly basis, therefore no significant adjustments are expected at year end to align the cumulative quarterly depreciation charge with the tonnes milled policy.

Other income of $3.6 million compares to $1.5 million during the prior quarter and to $7.7 million in the corresponding quarter of 2013. Other income includes management fees received from Morila and Kibali. The quarter ended 31 December 2013 also included other expenses of $11.1 million. The movements are also a result of operational exchange gains accounted for in the current quarter compared to exchange losses in the previous quarter arising from the settlement of invoices in currencies other than the US dollar, as well as the translation of balances denominated in currencies such as South African rand, Canadian dollar and the euro to the US dollar rate and reflects movements in these currencies during the quarter.

Share of profits from equity joint ventures decreased by $2.3 million from the previous quarter and increased by $18.0 million on the corresponding quarter in 2013. The decrease quarter on quarter is the result of reduced production at Morila during the quarter. The increase from the corresponding quarter in 2013 is due to Kibali starting production in Q4 2013. Share of profits of equity joint ventures include profits from Morila, Kibali and the group's asset leasing joint ventures.

Income tax expenses of $22.9 million decreased by 38% quarter on quarter and increased by 510% from the corresponding quarter in 2013. The decrease from the prior quarter was due to deferred tax adjustments made in the previous quarter which relates to the year end depreciation charges as discussed earlier. The increase from the corresponding quarter in 2013 is the result of the end of Gounkoto's corporate tax holiday in June 2013.

Basic earnings per share decreased by 9% to $0.80 (Q4 2013: $0.88) and increased by 5% from Q1 2013, following the movements in profit described above.

LOULO-GOUNKOTO COMPLEX

The combined Loulo-Gounkoto gold production for the quarter was 168 752oz (Loulo 92 852oz and Gounkoto 75 900oz), in line with the previous quarter (Q4 2013: 168 965oz). During the quarter 1 104Kt ore tonnes were processed (Q4 2013: 1 113Kt) at a grade of 5.3g/t (Q4 2013: 5.1g/t). However, recoveries decreased to 90.2%, from 92.7% in the previous quarter, due to the higher sulphide content of the ore fed from Yalea.

Total cash cost per ounce increased to $649/oz (Q4 2013: $605/oz) mainly due to the decrease in recovery, movements in the gold inventory and an increase in the open pit strip ratio, in line with plan.

LOULO-GOUNKOTO COMPLEX RESULTS

* Refer to explanation of non-GAAP measures provided.

# Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

LOULO

No Lost Time Injuries (LTIs) were recorded during the quarter and the Lost Time Injury Frequency Rate (LTIFR) decreased from 1.29 in Q4 2013 to zero in Q1 2014.

On a standalone basis, Loulo produced 92 852oz of gold (Q4 2013: 89 232oz) at a total cash cost of $685/oz (Q4 2013: $660/oz). The increase in production was due to a 3% increase in tonnes processed together with the increase in the head grade to 5.1g/t, in line with plan, partially offset by lower recoveries from feeding a higher proportion of the Yalea ore. Costs were negatively impacted by movements in the gold inventory. Profit from mining of $55.4 million was up on the previous quarter's $54.8 million, reflecting the increased production and sales, partially offset by higher cost of production.

Loulo underground production increased again during Q1, resulting in record production ounces from both Yalea and Gara, having enhanced the Cement Aggregate Fill (CAF) capacity prior to the introduction of the Paste Fill which is expected in the second quarter. Ore tonnes mined increased to 677 392t, a 13% improvement on the previous record quarter of 598 643t.

Development metres decreased by 8% from 5 086m in Q4 2013 to 4 744m in Q1 2014, in line with plan to reduce the development profile as the CAF capacity builds up. The development profile and backfill system were optimised to sustain the production profile.

LOULO STANDALONE RESULTS

Randgold owns 80% of Loulo and the State of Mali 20%. Randgold has funded the whole 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.

# Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

Yalea underground mine

During Q1, a total of 2 572m of development was completed and 409 721t of ore at 6.1g/t was hauled to surface. The Yalea project has completed 49 670m of development to date. The Yalea declines have advanced to 3 699m from surface at a vertical depth of 458m.

The improvement in total ore tonnes mined was the result of the positive impact of waste filling in the mined out stopes increasing ore handling capacity via the conveyor system, which also resulted in power savings.

YALEA UNDERGROUND RESULTS

Gara underground mine

During this quarter a total of 2 172m of development and 267 671t at 4.6g/t were hauled to surface. The project has completed 29 514m of development to date. The Gara declines have advanced to 2 937m from surface at a vertical depth of 393m.

Record production of 267 671t was achieved during the quarter, an improvement of 15% from 232 321 tonnes in Q4, due to the commissioning of the conveyor system and completion of the stockpiles as well as improvement in ventilation system and increase in backfill capacity.

GARA UNDERGROUND RESULTS

Loulo mineral resource and reserve update

Mineral resources are in line with last year's numbers. However, reserves decreased due to depletion and changes to the mine plan to ensure profitability at $1 000/oz. This resulted in a reduction of capital development metres and reserves at Gara. The underground mines are now depleting high grade ounces from the reserve inventory but the mine is optimistic that these reserves can be replenished in the coming years.

The mineral resource and reserve base for Loulo at the end of 2013, along with a comparison to figures at the end of 2012, is tabulated below:

LOULO RESOURCES AND RESERVES

* Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at an average cut-off of 0.5g/t. Underground mineral resources are those insitu mineral resources of the Yalea and Gara deposits that fall below the design pits and are reported at a cut-off of 1.7g/t for Yalea and 1.6g/t for Gara. Mineral resources for Gara and Yalea were generated z Abdoulaye Ngom, 

an officer of the company, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person.

** Open pit mineral reserves are reported at a gold price of $1 000/oz and an average cut-off of 1.1g/t and include dilution and ore loss factors. Open pit mineral reserves were calculated by Mr Shaun Gillespie, an independent consultant and competent person.  Underground mineral reserves are reported at agold price of $1 000/oz and a cut-off of 2.5g/t for Yalea underground and 2.4g/t for Gara 

underground, and include dilution and ore loss factors. Underground mineral reserves were calculated by Mr Andrew Fox, an 

independent consultant and competent person.

*** Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Loulo.

Mineral resource and mineral reserve numbers are reported as per JORC 2012 and as such are reported to the second significant digit.

See comments and US disclaimer in this report.

GOUNKOTO

No LTIs were recorded during the quarter in the line with the previous quarter.

On a standalone basis, Gounkoto produced 75 900oz of gold (Q4 2013: 79 733oz) at a total cash cost of $604/oz (Q4 2013: $543/oz). The 5% decrease in ounces produced reflects the company's strategy to increase the feed from Loulo, in line with the mines' respective reserves. The increase in costs mainly reflects an increase in the strip ratio, in line with plan to increase waste mining during the quarter.

Profit from mining of $51.1 million for the quarter was lower than the $58.3 million in Q4 2013, as a result of the decrease in ounces produced and higher cost of production.

A further dividend of $26.2 million was declared and paid to shareholders in February 2014.

GOUNKOTO STANDALONE RESULTS

Randgold owns 80% of Gounkoto and the State of Mali 20%. Randgold consolidates 100% of Gounkoto and shows the non-controlling interest separately.

* Refer to explanation of non-GAAP measures provided.

# Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

Gounkoto underground project

Drilling continued on the Gounkoto underground project during the quarter, focussed on the MZ3 extension, which is described in detail under the exploration section of this report.

Hydrogeological feasibility work continued with analysis of the deep piezometer holes. This has shown that the current pit dewatering system has not impacted the groundwater flow regime beyond the immediate boundary of the open pit. Instead, the relatively large groundwater level fluctuations (between 10m and 20m) are related to seasonal changes in recharge. Drainage of high pressure fractures and fault zones that the mine development will intersect will be a priority. Numerical models are currently being developed to evaluate the underground drainage requirements and quantify the mining induced impacts on the surrounding water flow regime.

Mine design continued using the September 2013 block model which was used in the reserve declaration. Comparisons with previous models based on the same cut-off grade and stope geometry parameters, show that there are now low grade areas that exist in the centre of the orebody. These will be used as pillars where appropriate. Overall metal content is similar to the December 2012 model with local variation (level to level). There are some poor ground conditions in the deeper parts of the MZ2 lode associated with a brittle fault, which may result in the loss of ore material and therefore the exploration and geotechnical focus is on the extension to MZ3 where high grade intersections have been returned.

The future work programme for the feasibility study include:

§ Update resource model with latest drilling information and drill out MZ3 lode during Q2 2014.

§ Complete open pit underground interface study.

§ Complete trade-off to define higher gold price open pit scenario vs low gold price underground scenario.

§ Progress geotechnical rock mass model to extend and cover MZ3.

§ Generate a 3D hydrological model and integrate with the above mine design to generate pump test rates for the mine scheduled during Q2 2014.

§ Update mining schedule on resource model.

Gounkoto mineral resource and reserve update

Mineral resources and reserves have changed due to depletion and changes to the orebody model. Infill grade control drilling has shown that the Gounkoto geology is more complex than originally modelled with the mineralisation comprising of a principal east dipping zone and lower grade footwall mineralisation that dips steeply to the west, resulting in lower grade and tonnage. New data drilled to test this model have recently yielded higher grade intersections with the potential to improve on the current estimates.

The mineral resource and reserve base for Gounkoto at the end of 2013, with a comparison to figures at the end of 2012, is tabulated below:

GOUNKOTO MINERAL RESOURCES AND RESERVES

* Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at a 0.5g/t cut-off. Underground mineral resources are those insitu mineral resources within the Jog Zone below the $1 500/oz pit shell reported at 2.0g/t cut-off. Mineral resources were generated by Mr Abdoulaye Ngom, an officer of the company, under the supervision of Jonathan Kleynhans, an officer of the company and competent person.

** Open pit mineral reserves are reported at a gold price of $1 000/oz and 1.38g/t cut-off and include dilution and ore loss factors. Open pit mineral reserves were calculated by Mr Shaun Gillespie, an officer of the company and competent person.

*** Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 80% interest in Gounkoto.

Mineral resource and mineral reserve numbers are reported as per JORC 2012 and as such are reported to the second significant digit.

See comments and US disclaimer in this report.

MORILA

1 LTI was recorded during this quarter compared to zero LTIs during the previous quarter and the LTIFR was 1.55% compared to zero during the previous quarter.

During the quarter, 24 631oz of gold were produced, 18% lower than the previous quarter (Q4 2013: 30 008oz), following the decrease in head grade from 1.4g/t to 1.3g/t, and a decrease in throughput from 722kt to 665kt. The main reason for the reduction in throughput is the increase in larger boulders encountered in the marginal ore stockpile and the reduced quantity of finer material encountered in this stockpile. A trommel reject conveyor is currently being installed to feed the pebble crusher with scats in order to increase the throughput rate.

Total cash costs of $952/oz was 12% higher than the previous quarter's $851/oz as result of the lower throughput and lower head grade and consequential lower gold production. Profit from mining of $8.7 million was 29% lower than the previous quarter's $12.2 million as a result of the reduced ounces produced and sold.

The Pit4S push back project continued during the first quarter with total tonnes mined of 4 430Kt, including 76 674t of ore at 2.4g/t, compared to 3 353Kt of waste material mined in the previous quarter.

The agribusiness projects progressed during the quarter as a second batch of rearing chicks were introduced in early February and a far better survival rate was experienced. The 4 Community Out Growers each received 150 Layers in November and December and have to date produced a total of 27 742 eggs.

MORILA RESULTS

Randgold owns 40% of Morila with the State of Mali and joint venture partner owning 20% and 40% respectively. The group equity accounts for its 40% joint venture holding in Morila.

* Refer to explanation of non-GAAP measures provided.

# Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

Morila mineral resource and reserve update

Mineral resources currently consist of the remaining stockpile material, open pittable ore made available through a pushback in the south of the pit and portion of the Tailings Storage Facility (TSF). The ore reserve consists of marginal stockpiles, open pit material and the higher grade portion of the TSF.

The mineral resource and reserve base for Morila at the end of 2013, with a comparison to figures at the end of 2012, is tabulated below:

MORILA MINERAL RESOURCES AND RESERVES

* Open pit mineral resources are those located within the $1 300/oz pit shell reported at $1 500/oz cut-off of 0.58g/t. Stockpile mineral resources are also reported at a $1 500/oz gold price and reported at a 0.57g/t cut-off. TSF mineral resources are reported at a $1 500/oz gold price and reported at a 0.33g/t cut-off. Open pit mineral resources were generated by Miss Paula Ogilvie, independent consultant, under the supervision of Jonathan Kleynhans, an officer of the company and competent person. TSF mineral resources were generated by BMRE independent consultants, under the supervision of Jonathan Kleynhans, an officer of the company and competent person.

** Open pit mineral reserves are located within the $1 300/oz pit shell, but reported at $1 000/oz cut-off grade of 0.87g/t. Stockpile mineral reserves are reported at a $1 000/oz cut-off grade of 0.85g/t. TSF mineral reserves are reported at a $1 000/oz cut-off grade of 0.50g/t. Mineral reserves were calculated by Mr Shaun Gillespie, an officer of the company and competent person.

*** Attributable gold (Moz) refers to the quantity attributed to Randgold based on its 40% interest in Morila.

Mineral resource and mineral reserves are quoted as per JORC 2012 and thus reported to the second significant digit.

See comments and US disclaimer in this report.

TONGON

No LTIs were recorded in Q1. The LTIFR decreased from 0.9 in Q4 2013 to zero in Q1 2014.

Tongon produced 54 512oz of gold in Q1 (Q4 2013: 60 819oz) at total cash cost of $958/oz (Q4 2013: $830/oz). The decrease in production is due to a 4% drop in mill throughput and a 8% drop in the head grade milled. Operating costs were mainly impacted by an increase in powerhouse fuel consumption stemming from the failure of the grid power transformer in December 2013 which was subsequently repaired in February. Total cash cost per ounce was also negatively impacted by the drop in the head grade milled.

Total tonnes mined increased by 3% while ore tonnes mined decreased by 8% compared to the previous quarter, in line with planned cut-backs and hanging wall waste mining in the Southern Zone pit. The planned ramp-up of mill throughput into 2014 did not occur as a result of repeated mechanical failures of key components of the newly installed Vibrocone crushers. All actions taken to date to engineer out these Vibrocone crusher defects have not resulted in any significant benefit in increasing throughput or quality of the crushed product, as was originally specified and designed. As such the mine and the crusher supplier, Sandvik, have mutually agreed to change out all the existing Vibrocone crushers with conventional Sandvik CH660 cone crushers and to combine the replacement with an upgraded flowsheet, including additional equipment and circuits, to achieve the required capacity. The cost of the change out, removal and circuit modification will be carried out by Sandvik.

Profit from mining activity of $18.6 million decreased from the previous quarter's $26.4 million reflecting the decrease in ounces sold andhigher cost of production, partially offset by a 4% higher average gold price received.    

TONGON RESULTS

Randgold owns 89% of Tongon with the State of Côte d'Ivoire and outside shareholders owning 10% and 1% respectively. Randgold has funded the whole investment in Tongon by way of shareholder loans and therefore controls 100% of the cash flows from Tongon until the shareholder loans are repaid. Randgold consolidates 100% of Tongon and shows the non-controlling interest separately.

* Refer to explanation of non-GAAP measures provided.

# Gold on hand represents gold in doré at the mines multiplied by the prevailing spot gold price at the end of the period.

Tongon mineral resource and reserve update

Only the SZ geological model was updated in 2013 due to new data from infill grade control drilling, advanced grade control drilling and exploration data, whilst the NZ model remains unchanged from 2011 resource update. Changes to the mineral resource and reserves are due to depletions from mining activities and model changes. Model changes have resulted in a drop in the resource and reserve grades. Grades increase near the base of the pits and drilling is planned to test the extent of this potential.

The mineral resource and reserve base for Tongon at the end of 2013, with a comparison to figures at the end of 2012, is tabulated below:

TONGON MINERAL RESOURCES AND RESERVES

* Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at a 0.5g/t cut-off. Underground mineral resources are those insitu mineral resources below the NZ $1 500/oz pit shell reported at a 2.0g/t cut-off. Mineral resources were generated by Mr Babacar Diouf (NZ) and Mr Simon Bottoms (SZ), both officers of the company, and supervised by Mr Jonathan Kleynhans, an officer of the company and competent person.

** Open pit mineral reserves ore reported at a gold price of $1 000/oz and 0.84glt cut off and include dilution and ore loss factors. Open pit mineral reserves were calculated by Mr Shaun Gillespie, an officer of the company and competent person.

*** Attributable gold (Moz) refers to the quantity attributed to Randgold based on its 89% interest in Tongon SA.

Mineral resource and reserve numbers are reported as per JORC 2012 and as such reported to the second significant digit.

See comments and US disclaimer in this report.

KIBALI 

1 LTI was recorded during the quarter compared to 2 in the previous quarter and the LTIFR decreased from 0.43 in Q4 2013 to 0.28 in Q1 2014.

Kibali made good progress with the construction and commissioning of the second (sulphide) metallurgical mill stream and exceeded the gold production target for the quarter. Kibali produced 112 549oz during Q1, an increase of 28% on the previous quarter. Tonnes processed increased by 54% as the second sulphide mill stream was brought online. The head grade milled decreased by 11% to 3.3g/t, in line with plan while recoveries were down as a result of the second mill stream commissioning activity which together with the lower head grade impacted on total cash cost, which increased by 14% to $530/oz (Q4 2013: $464/oz).

Notwithstanding the increase in total cash costs, profit from the mining activity increased by 26% to $86.3 million following the increase in gold production and higher average gold price received.

KIBALI RESULTS

Randgold owns 45% of Kibali with the DRC government and joint venture partner owning 10% and 45% respectively. The group equity accounts for its 45% joint venture holding in Kibali.

* Refer to explanation of non-GAAP measures provided.

Construction of the metallurgical facility and infrastructure

The construction and commissioning of the metallurgical facility and infrastructure remained on plan. The secondary crushing, flotation and concentrate handling facility in respect of the sulphide circuit was handed over from construction for commissioning at the end of Q1.

Work on the Nzoro 2 hydro electrical facility continued and commissioning of the system including the electrical distribution and protection systems will commence at the beginning of Q2 2014.

Construction of the underground mine

Vertical shaft system

By the end of Q1 the main sink passed the halfway mark and reached a depth of 417 vertical metres with a quarterly performance of 221m, slightly ahead of plan.

KIBALI VERTICAL SHAFT RESULTS

Decline shaft system

During the quarter, the decline shaft system again advanced at a rate ahead of the target. An advance of some 1 658m was achieved during the quarter which brings the total decline development since the programme started to 5 605m.

Priority during the quarter was given to a third access to the 5000 lode as well as the main ventilation system which will enable Kibali to start with ore drive development at the beginning of 2014. The new mine schedule is expected to enable first ore stoping to commence at the end of Q4 2014, with the first raisebore and paste plant construction on schedule to support this activity. The mining of the two main substations in C and B1 decline was completed during the quarter and the main pump station was accessed.

KIBALI UNDERGROUND DECLINE RESULTS

Resettlement Action Plan (RAP)

The construction of the Roman Catholic Complex neared completion at the end of Q1 with the steel roof structure of the church being lifted into place. The church building is expected to be completed by the middle of Q2 2014 which will bring to an end the construction phase of the RAP programme.

The community grievance system is operating effectively and an elected Community Forum is in place and functioning.

Capital expenditure

The capital expenditure for the quarter amounted to $107.9 million. The capital estimate for phases 1 and 2 of the project has been updated and is now estimated at $1.81 billion, excluding pre-production mining expenses (previously estimated at $1.77 billion).

Kibali mineral resource and reserve update

Mineral resources increased to 22Moz due to extensions of KCD open pit and underground mineral resources as well as significant increase in Gorumbwa inferred open pit mineral resources. This is after the removal of the Kibali South inferred deposit and depletions from mining activities. Open pit mineral reserves are in line with last year after depletion. Underground mineral reserves have increased to 8Moz due to the increase in the resource as well optimisation of the mine design thereby reducing costs.

The mineral resource and reserve base for Kibali at the end of 2013, with a comparison to figures at the end of 2012, is tabulated below:

KIBALI MINERAL RESOURCES AND ORE RESERVES

* Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at a cut-off of 0.5g/t. Underground mineral resources are those insitu mineral resources at the KCD deposit that fall below the 5 685m RL elevation, reported at a cut-off of 1.5g/t. Mineral resources were generated by Mr Ernest Doh, an officer of the company and competent person.

** Open pit mineral reserves are reported at a gold price of $1 000/oz and an average cut-off of 0.9g/t and include dilution and ore loss factors. Open pit mineral reserves were calculated by Mr Nicholas Coomson, an officer of the company and a competent person. Underground mineral reserves are reported at a gold price of $1 000/oz and a cut-off of 2.4g/t and include dilution and ore loss factors. Underground mineral reserves were calculated by Mr Tim Peters, an independent consultant and a competent person.

*** Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 45% interest in the Kibali gold mine.

Mineral resource and mineral reserves are quoted as per JORC 2012 guidelines and thus reported to the second significant digit.

See comments and US disclaimer in this report.

Q1 has seen the implementation of an exploration strategy based on 2 key components: reserve growth and a new discovery.

The current reserves, which are drilled out and banked at gold price of $1 000/oz support the group's growing production profile and rolling 5 year mine plan. In order to maintain that plan and extend it to a 10 year plan there are key gaps that need to be addressed through the addition of reserves, focused on the following targets:

§ Conversion of 1Moz at +5g/t from the Gounkoto Jog Zone underground project;

§ Conversion of 0.6Moz at +5g/t of inferred ounces at Yalea underground;

§ Conversion of 0.23Moz at +5g/t of inferred ounces at Gara underground;

§ Conversion of 0.35Moz at +3g/t of inferred ounces at Gorumbwa open pit (Kibali); and

§ The evaluation of low grade satellite ounces to the Tongon plant and integration into the mine plan.

In order to improve the opportunity to discover a new world class gold deposit, a critical review of the resource triangle was undertaken and dormant targets, as well as targets that have been in the triangle for more than 2 years, were rejected. This has had the effect of reducing the total number of targets by 45 to 115. Key to effecting this strategy is the acceleration in the turnover of targets within the triangle and the replenishment of permits.

Key areas of focus for a new discovery are:

§ Ivory Coast;

§ The Loulo district and Senegal-Mali shear zone including the Bakolobi joint venture and the new Legend joint venture;

§ Northeast DRC including both Kibali and the Kilogold joint venture; and

§ Senegal both within our permit holding on the Mako Belt and Bambadji on the Senegal-Mali shear zone adjacent to the Loulo District.

MALI

Gounkoto

At Gounkoto, an extensive drill programme has been completed around the deposit with holes testing deep targets in the footwall, down plunge to the south and below the pit on Main Zone 1. Work has continued to define MZ4 and explore its relationship with P64 which has resulted in a new geological model for Gounkoto combining all zones of mineralisation as well as P64, this will result in a new pit optimisation due for completion in Q2. Work continues to explore the northern extensions of the Gounkoto system. In the Jog Zone, work has focused on MZ3 where drilling has confirmed the extension of high grade mineralisation at depth to the north of the existing underground project. Hole 402 intersected 20.6m at 5.21g/t from 535m (including 2.9m at 9.71g/t and 5m at 11.49g/t). This opens up a large area of potential due to the wide spacing of existing drilling and rigs are now infilling this target. Hole 406 designed to test the extension of a south plunge to high grade mineralisation in MZ1 to the south of the deposit returned 2.95m at 2.19g/t from 409m and indicates the structure narrows to the south with less dilation and mineralisation.

Exploration across the Gounkoto lease has been accelerated and new targets have been generated for testing in Q2. Results from the four targets tested in Q1: Sahnou, Djiguibah, Findogoleh and Sanou NW, did not meet expectations and have been rejected from the resource triangle. New high grade results have been returned from Toronto Gap (33g/t and 7g/t) and Bandankoto NW (24g/t).

Loulo

Exploration work at Loulo has been on the evaluation of identified targets within the permit as well as defining drill programmes to convert resources to reserve at both Gara and Yalea. Work on the Gara South and Yalea Ridge South targets this quarter has determined that both targets have limited potential to add significant ounces to the project with only limited surface exposure to mineralisation and no further work will be completed. A new target named Waraba has returned encouraging results from shear hosted mineralisation over a 400m strike in an area of artisanal mining, although it has a narrow width at surface (

A 380 line kilometre induced polarisation (IP) geophysical survey is underway in the northern half of the Loulo permit to provide a new layer of data to aid in mapping the underlying geology as well as the generation of new targets in an area that is underexplored.

Underground exploration

Yalea

A total of 37 diamond holes for 3 610m were drilled at Yalea during the quarter and three key areas were tested:

§ The low grade zone to the north of the Purple Patch in order to test a probable extension of the high grade. The results return grade higher than the block model above the underground cut off and therefore represents an opportunity to provide additional mining blocks. The weighted average intersection of the boreholes returned 28.4m at 3.92g/t versus the block model of 16.3m at 2.73g/t.

§ To test the narrowing of the Purple Patch between the 258L and 283L. The results confirm that the orebody narrows from the currently modelled 8.5m to 2.1m however the grade has increased from 8.5g/t to 19.2g/t. The thinning is due to the hangingwall and footwall structures pinching together and will result in a new mine design for this area.

§ A gap in the drill coverage in the southern part of the Purple Patch close to an EW Fault. The results confirm the orebody is narrower than currently modelled in close proximity to the fault 1.4m versus 6.2m but with a corresponding grade increase from 8g/t to 10.5g/t. This will result to a new mine design for these blocks.

One of the main strategies at Yalea is the conversion of inferred resources to the indicated category and ultimately reserves. There are currently 0.6Moz at 6g/t categorised as inferred at depth, below the Purple Patch. There are additional opportunities in the south of the deposit to increase the grade in an area of poor drill coverage and where ground conditions are poor with strong weathering on the hangingwall structure. A total of 8 980m of drilling has been designed and the programme commenced by quarter end.

Gara

At Gara, a total of 34 holes for 3 239m were drilled during the quarter. Results from Gara North marginal ore returned a narrower intersection but higher grade compared to the model: 11m at 3.17g/t versus 13.45m at 2.92g/t and offer an opportunity to identify additional mining blocks.

Similar to Yalea one of the key strategies at Gara is to convert inferred ounces to indicated and ultimately reserves, this amounts to 0.23Moz at 5.9g/t. 7 holes out of a total of 9 holes have been completed and have returned encouraging results with a weighted average intersection of 4.8m at 9.01g/t versus the block model of 8.25m at 5.12g/t. Mineralisation is associated with the hinge of a south plunging anticline, strongly disseminated pyrite and quartz carbonate veining of the quartz tourmaline host rock. High grade mineralisation is open down plunge and additional drill holes have been planned as further follow up. Individual drill results include: LOCP161: 4.7m at 7.71g/t from 332.7m, LOCP162: 4.1m at 22.00g/t from 473.10m and LOCP165: 4.65m at 17.83g/t from 465.85m.

Bakolobi (Taurus JV)

A 236km gradient array induced polarisation (IP) and resistivity, as well as ground magnetic survey has been completed across the northern part of the permit. This together with a detailed soil sampling survey identified eleven targets for follow-up, located within the main N-S trending structural corridor which hosts both the Fekola deposit (Papillon) to the south and Gounkoto to the north.

Work on the main Bakolobi target includes a resampling of old trenches: 27m at 2.23g/t including 9m at 5.67g/t in quartzite, and 10.4m at 1.98g/t including 4.4m at 4.25g/t in porphyry. Auger holes returned BaA221: 15m at 1.28g/t and BaA228: 22m at 2.34g/t in quartzites with silica and albite alteration. A drill motivation for 10 000m of RC drilling is in progress as per the terms of the joint venture agreement to test the priority targets in Q2.

Mali West

As part of our long term strategy in Western Mali we signed a new JV agreement with Legend Gold. Legend Gold which holds the rights to a portfolio of permits which straddle the highly prospective Senegal-Mali shear zone, directly south of the Sadiola gold mine, and which remain under explored. Randgold will fully fund exploration to completion of a prefeasibility study to acquire a 51% interest in the project. Legend has the option to co-fund the feasibility study to retain 49% or dilute to 35% with Randgold increasing its stake to 65%. Both parties fund development.

We have received a comprehensive dataset from Legend over the portfolio of permits including: airborne electromagnetic and magnetic data, geology, regolith, soil geochemistry, drilling (auger, RAB, RC and diamond), pitting and trenching. The results highlight anomalism coincident with the Senegal-Mali shear zone. The aim of the first phase of work is to integrate the various data layers and field mapping to enable a target generation exercise to prioritise targets for follow-up work. Randgold geologists have been mobilised to the project area to commence fieldwork. 

SENEGAL

Massawa

Geological studies continued at Massawa to refine models for the deposit following a surface trenching program in Q1. The current model for the Central Zone is one of broad envelopes of gold mineralisation. The work including grade control orientation studies, trenching and relogging of core is highlighting the potential for multiple narrow high grade lodes, which would result in a reduction in tonnes but a significant increase in grade. This will be captured in a new model and open pit and underground scenarios will also be tested. A recent trench excavated parallel to one of the high grade lodes (Ore Zone 5) to evaluate the continuity and grade distribution along the strike of the lode returned 49m at 42g/t, confirming the high grade, although the results were nuggety in nature with some values exceeding 1 000g/t.

The modelling of 4 satellite deposits (Sofia, Bambara, Tina and Delya) has returned inferred resources of 0.92Moz at 1.74g/t. There are 2 further satellite targets, namely Kawsara and Tombo with a combined geological potential of 1.9Moz at 0.7g/t. Additional exploration work continues to review all data layers and identify new targets and 'gap areas' to test. Results from the TKN target reveal the ocean floor basalt sequence to have highly anomalous back ground levels of gold but no economic source.

The mineral resources have increased due to the inclusion of satellite open pit inferred mineral resource deposits. The mineral reserves have stayed the same as the December 2010 declaration.

The mineral resource and reserve base for Massawa at the end of 2013, with a comparison to figures at the end of 2012, is tabulated below:

MASSAWA MINERAL RESOURCES AND ORE RESERVES

* Open pit mineral resources are the insitu mineral resources falling within the $1 500/oz pit shell reported at a cut-off of 0.5g/t. Underground mineral resources are those insitu mineral resources below the $1500/oz pit shell of the North 2 deposit reported at a 2.0g/t cut-off. Mineral resources were generated by Mr Babacar Diouf (CZ) and Mr Simon Bottoms (NZ and satellites) both officers of the company under the supervision of Jonathan Kleynhans an officer of the company and competent person

** Open pit mineral reserves are reported at a gold price of $1000/oz and 1.1g/t cut-off and include dilution and ore loss factors. Open pit mineral reserves were generated by Shaun Gillespie an officer of the company and competent person.

*** Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 83% interest in the Massawa project.

Mineral resource and mineral reserves are quoted as per JORC 2012 guidelines and thus reported to the second significant digit.

See comments and US disclaimer in this report.

Bambadji

All historical exploration data covering the Bambadji permit was collated and reanalysed. In conclusion there are twelve second and third order soil anomalies which have received no follow-up work but locate within favourable geological and structural settings, however the regolith is complex with transported cover.

COTE D'IVOIRE

Throughout this quarter, exploration activities across the permits have focussed on a re-evaluation of the low grade mineralisation adjacent to the Tongon plant and accelerating field programmes designed on priority targets.

The Tongon mine is a low grade bulk mineable operation and within a 10km radius of the plant there are four targets with a combined geological estimate of 0.4Moz at 1.44g/t. These targets are being re-evaluated with updated geological models and drill programmes are being designed to add them to the future mine plan.

Results from both the Diaouala and Boundiali permits have failed to return results to support further work at this time.

Mankono permit

Significant progress was made on the geological understanding of the permit through regional mapping in the northern half of the permit and data compilation from regional pitting programmes in the south where outcrops are very rare. This work has demonstrated the existence of a wide sedimentary sequence in contact with volcanic units. Sediments are composed of feldspar-rich greywacke, fine grained siltstone, argillite and a large polymictic conglomerate units; the sedimentary sequence is folded as attested to by younging directions from cross bedding as well as repetition of the different lithologies. These sediments may represent a younger formation comparable to the Tarkwaian.

This volcanic and sedimentary package is intruded by mafic, tonalite and granite intrusions. Late diorite, quartz feldspar porphyries and felsic dykes are also mapped. Quartz with tourmaline veins occur associated with quartz-feldspar porphyry dykes along the fold axis of the folded sediments.

An infill soil sampling program has been completed on the area termed as Priority 1, which is a +21km long regional soil anomaly. Results so far have not only confirmed the regional trend returning a +15k long corridor with a series of significant anomalies of +50 ppb containing very high values of up to 4g/t; 2.25g/t, 1.46g/t and 1.0g/t. The anomalies are structurally controlled by NE and NS regional structures and are located on residual regolith. Furthermore, soil anomalies coincide with a significant geophysical anomaly at the contact between volcanic and sedimentary rocks. 5 individual targets have been generated and follow up work including pitting and trenching has commenced.

Fapoha permit

The geological interpretation completed for the entire permit has revealed a major sheared contact between volcanics and sediments. Volcanics are composed of andesite, tuffs and basalts, whereas sediments are identified as greywacke and argillite. Both volcanics and sediments are intruded by granodiorite, gabbros and late granites. The regional soil sampling programme defined numerous significant soil anomalies extending over +15km principally located along this major lithological boundary. Field traverses have validated the soil anomalies and confirmed an insitu nature. An intensive lithosampling programme has been completed over the anomalies where outcrop was present. 101 lithosamples were collected on chert, argillite, brecciated quartzite, gossan, and felsic intrusive, associated with shearing, folding and common disseminated pyrite. Results are pending. Infill soil sampling has commenced in the southern part of the permit where 4 targets are prioritised around a granodiorite intrusion, with a setting similar to the Tongon deposits.

DEMOCRATIC REPUBLIC OF CONGO

Kibali

At Kibali, we continue to build our knowledge of the geology, styles of mineralisation and structural controls on the mineral inventory. Kibali is a long life mine with over 10 years of reserve already banked and this knowledge building will help drive future resource conversion as well as new discoveries. The main focus in Q1 has been on the conversion of inferred resources at Gorumbwa and the evaluation of identified targets: Memekazi and Aindi Watsa.

Gorumbwa

Gorumbwa was mined open pit and underground via shaft access in the early 1950s and at times in the 1990s. The mine has since been inactive, and flooded. Resource conversion drilling of 32 holes for a total of 6 368m commenced and was completed during the quarter. Gorumbwa has an inferred resource of 7.82Mt at 3.66g/t Au for 0.92Moz within the $1 500/oz gold price pit shell. Drilling objectives were to convert approximately 0.37Moz within the $1 000/oz reserve pit shell.

Assay results for six holes have been received. Drill hole intersections were compared against the current block model for the deposit. The results show considerable variation to the current model with multiple intersections outside of the model as well as significant visible gold in the footwall of the deposit which has not been previously modelled however gold assay results are pending for these holes. Once all the results are returned a new model and optimisation will be completed.

GORUMBWA DRILL RESULTS RECEIVED IN Q1 2014

Memekazi Target

Memekazi is located approximately 1.8km southeast of the plant. It is a 400m long, east-northeast trending low ridge with coincident artisanal miner pits, anomalous gold-in-soil values and anomalous drill intersections from shallow (20m deep) scout RC drilling. Memekazi ridge is the western portion of a larger 2 500m by 1 000m trending gold-in-soil anomaly that extends out towards Renzi village in the east. Pit sampling has returned encouraging results including: 6.83g/t, 3.61g/t, 4.06g/t, 1.85g/t and 2.08g/t from silicified sericitic schist with sugary quartz or brecciated chert. A trenching programme is currently underway prior to RC drilling in planned for the next phase.

Aindi Watsa

The target is 6km to the southwest of the Kibali plant. Reviews of airborne magnetic and electromagnetic data indicate the target locates on a NE trending structure with a subtle kink. Regional scale soil samples highlight a 3km by 400m trending gold-in-soil anomaly (40ppb contour). Reconnaissance work commenced late in Q1 with infill soil sampling, trenching and pitting programmes.

Kilo joint venture

Regional soil sampling has progressed over the Isiro belt and is expected to finish within a month. So far results from Block 1 are weak, highlighting several incoherent line anomalies, however the values increase towards the SE of Block 1 returning a maximum of 130ppb. Block 2 shows similar incoherent line anomalies and with what appears to be increasing anomalism towards the NW of the grid. The maximum value of Block 2 is 130ppb.

On the Ngayu Belt detailed fact mapping and geological interpretation has progressed on the main Yambenda target. The 10km gold-in-soil anomaly appears to be spatially associated with steeply dipping outcrops of banded iron formation and has a coincident arsenic anomaly. Infill soil sampling and follow-up work including pitting and trenching will take place in Q2.