1st Quarter Results

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

RANDGOLD RESOURCES MAKES STRONG START TO YEAR

London, 3 May 2012 - Randgold Resources has posted a robust performance for the first quarter of 2012 despite the challenges presented by a coup in Mali, the expansion of its Loulo complex and the stabilising of its new Tongon mine in Côte d'Ivoire.

Profit of US$104 million was up 126% on the corresponding quarter in 2011 while production of 165 443 ounces increased by 19% year on year. However, in line with guidance, both figures were down by 28% and 13% respectively on the previous quarter's record results. Group operating costs of US$667/oz were in line with those of the previous year, and the cash on the balance sheet of US$457 million remained substantial despite significant capital expenditure during the quarter.

Flagship operation Loulo, where a third mill was successfully commissioned, showed the benefit of its plant expansion programme in improved throughput and recoveries. Throughput was ramped up steadily to 330 000 tonnes per month, in line with plan, and a phased expansion to 450 000 tonnes per month is being considered. Gounkoto, which operationally is part of the same complex, has been established as a separate corporate entity in terms of a new convention granted by the state of Mali during the quarter. The one-year-old Gounkoto has now recouped its capital.

Tongon had to contend with moving through transitional ore, stabilising the link to the Ivorian national power grid and dealing with industrial relations issues, but was trending positively at the end of the quarter. The Morila joint venture again produced a solid set of results.

In the Democratic Republic of Congo, construction started on schedule at the Kibali project which, when completed, will be one of the largest gold mines in Africa. Randgold owns 45% of the project, which it is developing. Randgold will also operate the mine which is scheduled to produce its first gold at the end of next year.

The company recently reported attributable reserves of 16.28 million ounces of gold compared to 16.39 million a year ago, despite a 58% increase in production last year. The overall reserve grade increased from 3.78g/t to 3.84g/t in line with Randgold's emphasis on quality over quantity.

Chief executive Mark Bristow says despite the company's full operational and developmental load, it is still maintaining its aggressive exploration programmes.

"There is a significant potential for finding additional ounces at the Loulo-Gounkoto complex, Tongon and Kibali, as well as for converting their substantial resources to reserves. In addition, our greenfields teams are evaluating the promising Boundiali and Dioala permits in Côte d'Ivoire and developing a new footprint around the Kampti permit in Burkina Faso. They are also looking beyond the known deposits on the enormous Kibali lease area as well as further afield in the DRC," he said.

RANDGOLD RESOURCES ENQUIRIES:

Website: www.randgoldresources.com

------------------------------------------------------------------------------

REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2012

Gold sales revenue decreased by 13% compared to the previous quarter largely due to a 15% reduction in ounces sold. This is the result of a decline in sales from the Loulo-Gounkoto complex reflecting lower grades achieved during the quarter in line with the guidance given at the start of the year. The average gold price received increased by 2% quarter on quarter to US$1 707/oz, partially offsetting the effect of the decrease in ounces sold. Gold sales rose 46% above the corresponding quarter in 2011, principally due to the current quarter's average gold price received being 25% higher than the same quarter in 2011, and a 17% increase in ounces sold.

Total cash costs for the group were 7% lower than the previous quarter, mainly as a result of the timing of gold shipments and subsequent deferral of associated production costs: 10 958 ounces (valued at US$18.2 million using a spot gold price of US$1 663/oz) remained unsold at the Loulo-Gounkoto complex at quarter end. Compared to the corresponding 2011 quarter, total cash costs increased by 18% as a result of the start of mining at Gounkoto in June 2011. Group total cash costs per ounce increased by 10% compared to the previous quarter but were in line with the corresponding quarter of 2011. The increase over the prior quarter reflects the drop in grade of the ore processed and subsequent 15% reduction in ounces sold. As indicated in the previous quarterly report, following a change in International Financial Reporting Standards (IFRS), the group changed its accounting policy on production-phase stripping costs with effect from 1 January 2012 and the 2011 results have been restated (refer to the change in accounting policy section for further details).

Profit from mining decreased by 18% to US$152.2 million, from US$185.2 million in the previous quarter, but were up 79% on the corresponding 2011 quarter for the reasons stated above.

Depreciation and amortisation of US$23.9 million rose US$16.7 million from the previous quarter, mainly as a result of year end adjustments in the prior quarter which led to unusually low charges for that quarter, and an increase in depreciation at Tongon and the Loulo/Gounkoto complex in the current quarter. Traditionally, adjustments are made to the depreciation charge at the end of each year to bring it in line with the group's tonnes milled basis, as opposed to the straight line Life of Mine (LOM) basis used by the operating subsidiaries during the first three quarters of the year. The depreciation charge in the previous quarter was therefore very low given the adjustments that were made at year end, which reflected the lower tonnes milled during the year.

Exploration and corporate expenditure of US$10.9 million was down 10% on the previous quarter's US$12.1 million and in line with the corresponding quarter of 2011. This is the result of savings in corporate costs.

Other expenditure of US$4.2 million includes operational exchange losses and compares to similar operational exchange losses of US$8.1 million included in other expenses in the December 2011 quarter. This is due to the settling 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 Euro to the closing US Dollar rate, and reflect the movements in these currencies during the quarter.

Income tax for the quarter of US$12.3 million was down 26% due to the reduction in profits quarter on quarter, as well as a result of the change in the corporate tax rate in Mali. The corporation tax rate in Mali was reduced in 2012 from 35% to 30% and affects both the Morila and Loulo mines. Gounkoto is currently operating within a tax holiday period following the signing of the mining convention in March 2012.

Profit for the quarter of US$104.0 million decreased by 28% from US$144.7 million in the December 2011 quarter but rose 126% from the corresponding quarter last year. Similarly, basic earnings per share decreased to 97 US cents, down 27% from the prior quarter but increased 111% on the corresponding quarter of 2011.

LOULO-GOUNKOTO COMPLEX

The combined Loulo-Gounkoto gold production for the current quarter was 96 450 ounces (Loulo 24 800 ounces; Gounkoto 71 650 ounces), down 18% on the previous quarter. This was largely due to the reduced average grade of the ore mined and processed and was partially offset by an increase in tonnes milled and recoveries. The average grade of the ore processed decreased to 3.4g/t (Q4 2011: 4.5g/t). The reduction in grade was mostly due to the lower grade coming from Gounkoto, in line with the lower grade blocks which were scheduled to be mined during the quarter. This short term fall in production caused a 29% increase in cash operating costs per ounce compared to the previous quarter.

Construction of the third mill has been completed and it has been successfully commissioned. Together with the improved engineering maintenance implemented in the previous quarter, this has resulted in an increase in tonnes milled to 987kt (Q4 2011: 914kt) and recoveries improving to 89.7% (Q4 2011: 88.7%). With the additional mill in hand, the mine is now examining the potential opportunities to further increase throughput up to 450ktpm. The current plant can deliver approximately 330ktpm and with an upgrade of the cyclone and feed pumps to mills 1 and 2 should achieve a throughput of around 350ktpm (US$3 million estimated capital cost).

A preliminary economic assessment of the expansion option to take production up to 450ktpm has been completed. Currently the Loulo complex contains a total of 18.68Mt at 2.53g/t within the open pit and stockpile resources, declared at US$1 500/oz that are outside of the open pit reserves, declared at a US$1 000/oz. This is sufficient material to support an expansion to 450ktpm for 11 years, following an upgrade of the crushing, CIL and elution circuits (US$120 million estimated capital cost) and will allow the mine to bring lower grade resources into the life of mine plan.

The following key assumptions were used in the assessment:

§ Mining costs: US$3.65/t mined

§ Strip ratio: 7:1

§ Processing cost: US$23/t milled (includes US$3/t milled for ore transport since most of the deposits are satellites and will incur a crush and haul cost)

§ G&A: no additional G&A cost is associated with the expansion

§ Metallurgical recovery: 90%

§ Capital: US$120 million

§ Royalty: 6%

§ Company tax: 30%.

The results of the preliminary economic assessment of the incremental plant expansion from 300ktpm to 450ktpm are set out below:

Completion of a scoping study including trade-off between the different options available is targeted for year end. During the quarter, five lost time injuries (LTIs) were recorded at Loulo. The Lost Time Injury Frequency Rate (LTIFR) was 3.68 per million hours worked compared to 2.87 for the previous quarter. Management has continued and intensified its focus on health and safety following the completion of the Occupational Health and Safety Management System (OH&S-MS) legal compliance audit in Q4 2011. The OHSAS 18001 is fully implemented and certification is scheduled to be completed this year.

During the quarter political upheaval in Mali temporarily caused the closure of its borders and interruptions to the mine's supply chain. Capable handling by the Randgold management team resulted in its operations being largely unaffected. The group strategy of preferentially employing and developing a national management team was once again more than vindicated during this period.

Loulo

On a standalone basis Loulo produced 24 800 ounces of gold at a total cash cost of US$912/oz compared to 29 618 ounces at US$966/oz in the previous quarter. The ore mined and processed was exclusively from the two underground mines. The average grade of the ore was lower than anticipated as a result of some dilution resulting from an ore drive being undertaken out of the orebody, which has subsequently been addressed. Notwithstanding the lower grade and production, Loulo's cash costs per ounce were reduced as a result of improved cost control in the plant and across the mine.

Total tonnes mined includes the open pit mining in the Yalea pit as part of the pushback, which is ahead of schedule and should give the mine more flexibility to achieve its targeted annual production. Loulo's production is expected to increase over the year, and total gold production from Loulo and Gounkoto are forecast to be approximately equal in 2012.

Change in Accounting Policy - Production Phase Stripping Costs

As previously mentioned, the group changed its accounting policy on stripping costs in the production-phase of opencast miningeffective 1 January 2012. As such, all eligible production-phase deferred stripping (the process of removing waste from a surface mine in order to gain access to mineral deposits) costs associated with a stripping campaign are capitalised and depreciated over the life of the relevant section of the orebody on a tonnes milled basis. This is in line with the recently issued IFRIC 20 which endeavours to standardise reporting across the mining industry. IFRIC 20 requires that, to the extent that the benefit from the stripping activity is realised in the form of inventory produced, the directly attributable costs of that activity should be treated as ore stockpile inventory.  To the extent that the benefit is the improved access to ore, the directly attributable costs should be treated as a non-current 'stripping activity asset'. All stripping costs incurred since 1 January 2010 are capitalised to the related asset in the relevant year. IFRIC 20 includes transitional provisions which permit the group to capitalise eligible costs incurred from the start of the earliest period presented, which will be 1 January 2010 within US 20-F filings for 2012. Total eligible production-phase stripping costs of US$12.1 million were incurred in Q4 2011, relating to the Yalea South pushback, and have now been capitalised. The capitalised stripping costs will be depreciated on a unit of production basis, over the expected useful life of the Yalea orebody and depreciation is expected to start in July 2012, in line with the mine plan. No other production-phase stripping costs have been incurred since 1 January 2010 and the effect of costs prior to this date is immaterial. Loulo (and therefore the Loulo-Gounkoto complex as well) was the only mine affected by the restatement. We note that IFRIC 20 is yet to be endorsed by the EU but has been applied as it is expected to be endorsed during 2012.

In line with IFRIC 20, our 2012 results now include a restatement of the 2011 year, as well as for the quarter ended 31 December 2011, the impact of which is set out below:

Loulo mineral resource and reserve update

See extract from annual mineral resource and mineral reserve declaration published 30 March 2012.

Yalea underground mine

During the quarter, 2 206 metres of development was completed and 127 620 tonnes of ore at 4.24g/t was hauled to surface. The progressive development to date is 26 082 metres.

The Yalea decline has advanced 2 228 metres from surface to a vertical depth of 376.5 metres. Overall development has increased 24% from 1 779 metres last quarter to 2 206 metres this quarter. The critical rehabilitation in the vehicle decline servicing the bottom of the 'purple patch' was successfully completed and development has recommenced.

The 88L-108L ore pass was commissioned during the quarter, reducing the amount of material hauled to surface and improving the amount of ore hoisted on the belt system.

Ore production for the quarter came primarily from 63L blocks 1, 2 and 3 and was up 42% on the last quarter, from 90 179 tonnes to 127 620 tonnes at 4.24g/t.

Gara underground mine development

During the quarter, 1 961 metres of development was completed and 132 340 tonnes of ore at 4.65g/t was hauled to surface.

The Gara declines have advanced 1 781 metres from surface to a vertical depth of 268 metres. Overall development showed a 9% improvement, increasing from 1 791 metres last quarter to 1 961 metres this quarter.

Ore production for the quarter, coming primarily from strike drives, development and stoping on 65 and 85 Levels, was up 120% on the last quarter, from 60 204 tonnes to 132 340 tonnes. The decline development has exposed 135 Level.

Construction of the primary pump station was completed during the quarter and construction of the underground conveyor has begun.

Gounkoto

On a standalone basis, Gounkoto produced 71 650 ounces of gold at a total cash cost of US$744/oz compared to 87 703 ounces at US$522/oz in the previous quarter. The decrease in ounces resulted in an increase in the total cash cost per ounce, largely attributable to the fall in the average grade of ore mined and processed from 5.1g/t in the previous quarter to 3.5g/t as per the mine plan. Cash costs per ounce were also negatively impacted by an increase in waste stripping and higher rebuild costs.

Hauled tonnes for the current quarter increased to 720kt from 600kt in the previous quarter, as a result of three additional trucks being mobilised in February 2012.

Construction work continued on the houses for employees and on water drainage systems. The haul road quality was also upgraded to prevent stoppages during the wet season and to increase the efficiency of ore transportation.

No LTIs were recorded during the current quarter, reflecting an improved performance consistent on the previous quarter.

As part of the stakeholders engagement process, two village associations were established to manage the haul road safety issues. They will be registered and will constitute a source of employment and income for the local community.

The mining convention for Societé des Mines de Gounkoto SA (Gounkoto) was signed on 21 March 2012. The convention includes an initial two year corporate tax holiday starting from first production and a further tax holiday, up to a maximum of five years in total, in the event of further capital investment, such as an underground mine. It also provides for Mali State royalties of 6% of revenues and a 10% priority dividend payment to the State.

Gounkoto mineral resource and reserve update

See extract from annual mineral resource and mineral reserve declaration published 30 March 2012. With the Gounkoto convention being signed, the Faraba and P64 mineral resources located within the Gounkoto permit are now reported in the Gounkoto declaration.

MORILA

During the quarter, Morila produced 54 631 ounces of gold, down 22% on the previous quarter (Q4 2011: 69 737 ounces). The decrease in production follows the drop in the average grade of the ore processed from 2.1g/t in the previous quarter to 1.6g/t in the current quarter and is in line with the LOM plan, which includes the processing of mineralised waste. Profit from mining of US$56.1 million was down on the previous quarter's US$63.8 million due to the decrease in production which was partially offset by the higher average gold price received but exceeded the mine plan because of the higher than scheduled grades.

Notwithstanding the decline in ounces produced and sold, total cash costs of US$669/oz were down 11% on the previous quarter's US$753/oz as a result of the processing of mineralised waste, which carries no cost of mining (and was previously excluded from reserves).

No LTIs were recorded during this quarter, as in the previous quarter, reflecting another excellent performance. The mine has celebrated its safety performance, marking more than 1 500 000 LTI-free hours achieved in Q4 2011. As part of the mine's environmental rehabilitation, a total of 10 400 indigenous trees were planted during this quarter.

Morila mineral resource and reserve update

See extract from annual mineral resource and mineral reserve declaration published 30 March 2012.

TONGON

During the quarter, Tongon produced 47 141 ounces compared to 44 332 ounces in the previous quarter. The higher production reflects an increase in mill throughput, partially offset by a reduction in grade and recovery. The drop in grade during the quarter from 2.7g/t in the previous quarter to 2.4g/t is largely attributable to the short term mining schedule as well as work stoppages experienced during the quarter.

A combination of poor oxygen supply, related to power outages and low product delivery pressure, and the feeding of multiple ore types with the treatment of transitional ore, resulted in a lower recovery during the quarter. Addressing the issue, a third oxygen production plant has since been procured to supplement the existing circuit. This should ensure additional oxygen availability and back-up supply, and is expected to be operational early in Q3 2012. In addition to the above, optimisation work has been carried out on the oxygen dispersion systems, being a combination of Aachen reactors and MMS spargers/nozzles, which is expected to improve leach kinetics and recovery within the CIL circuit.

Throughput for the quarter was still low although there has been an improvement in tonnage treated through the mills toward the end of the first quarter and continuing positively into Q2. The lower tonnages achieved in the beginning of the quarter were due to a number of issues including the treatment of transitional ore, power availability as a result of marrying the grid supply with the diesel/standby supply and industrial action.

During the quarter, mining was carried out in Southern Zone pit and a total of 4 066kt was mined, 13% below the mined tonnes of Q4 2011, of which 844kt was ore at a grade of 2.4g/t, 11% below the fourth quarter of 2011. The lower tonnes mined were mainly as a result of employee industrial action, power cuts and reduced equipment availability.

Gold sold for the quarter was 48 887 ounces (Q4 2011: 45 864 ounces). The increase in ounces produced and sold resulted in a decrease in the total cash costs per ounce to US$735/oz (Q4 2011: US$780/oz) but remains high reflecting the lower productivity highlighted above.

No Category 1 environmental incidents and no LTIs occurred this quarter, in line with the previous quarter. Tongon Mine has achieved 446 LTI free days. Extensive environmental aspect identification and risk-based assessments continued towards the mine's goal to achieve its ISO 14001 environmental and OHSAS 18001 safety accreditation this year.

Tongon mineral resource and reserve update

See extract from annual mineral resource and mineral reserve declaration published 30 March 2012.

KIBALI PROJECT

The focus of the Kibali project team during Q1 was to convert from feasibility driven activity to that of construction and mining while maintaining the relocation action plan (RAP) process on the critical path. This conversion was characterised by critical appointments of key individuals in both the mining and construction teams, as well as the implementation of systems and processes to manage the various construction and mining activities.

The RAP programme had to cater for storm damage to houses of some of the resettled families, following unusually strong winds, and included rebuilding and repairing damaged houses which enhanced the goodwill that exists between the various affected communities and the project.

Q1 construction highlights include:

§ Earthworks and civils contractor (GPS) mobilised to site as scheduled.

§ Earthworks for the metallurgical facility began in February as planned and 200 000m³ of a total 2 000 000m³ were excavated by the end of March - completion planned in December 2012. First structural steel drawings were issued for shop detailing and over 1 000 tonnes of steel were in fabrication by the end of March, ahead of schedule.

§ Crushing plant, batch plants and drill rigs for aggregate production were mobilised for bulk concrete works.

§ Earthworks for laydown and stores area started as per schedule.

§ Construction of the mine assay laboratory has begun.

§ Open pit mining contractor (KMS) has started site establishment.

§ Bush clearing has started and the access road to weir/intake for Nzoro 2 hydropower station has been completed.

§ All Nzoro 2 designs for powerhouse, penstock and generators were completed on schedule.

§ Manufacture of generators for Nzoro 2 hydropower station is 40% complete.

Optimised feasibility

An updated costing and feasibility study was completed at the end of 2011, based on a revised underground mining plan which incorporated the combination of a twin decline and vertical ore hoisting shaft targeting the deeper 5000 lode, as a priority. This was then integrated into a final mining plan including multi open pit and underground schedules. The study was put through internal and external reviews, and optimisation of the mining and processing rates, capital estimate scheduling and the final design was approved by the Randgold board in January 2012 and is awaiting approval by the AngloGold Ashanti board.

The revised open pit and underground mining designs and schedules support a 6Mtpa operation, planned for commissioning in the last quarter of 2013 and extending to 2031. The prospectivity of the area suggests the mine life could be extended with further exploration and conversion of these new discoveries and extension of mineral reserves.

Updated processing and general administration (G&A) costs were determined based on the larger plant throughput and higher power load demand of the underground mine. A standard crushing, milling and CIL processing plant is expected to be commissioned on plant start-up, planned for late 2013. Full flotation and flash flotation circuits will be incorporated to recover the sulphide for an overall increase in gold recovery.

The underground mine design consists of a twin decline accessing the ore beneath the KCD pit and then connecting with a vertical shaft ore hoisting system to exploit the high tonnage stopes planned for the 5000 lode and deeper 9000 lode. The aim is to target access to the large 5000 lode from a mid-level access off the shaft and declines, thus bringing the large longhole open stopes of this lode into production quicker. RSV Perth completed the feasibility study for the shaft and electrical reticulation of the underground mine, while Mine RP in Perth (previously Gijima) has completed the underground mine design and schedule.

The feasibility was based on 2010 reserves and anticipates:

§ Total open pit ore mined of 37.2Mt containing 3.2Moz of gold at a strip ratio of 4.7:1

§ Total underground ore mined of 36.2Mt containing 6.8Moz of gold, giving combined total ounces mined of 10.0Moz

§ Open pit mining costs average US$3.98/tonne mined over the LOM

§ Underground mining costs including ore development of US$51.45/ore tonne

§ Mill throughput of 6Mt per year

§ Plant costs average US$14.33/tonne milled

§ G&A cost of US$6.37/tonne milled over the LOM, including outside engineering costs and Aru Road maintenance.

The construction capital (excluding contingencies or escalation) was split into two phases:

§ Phase 1 capital programme to bring the mine into production at the end of 2013 was estimated at US$920 million (in 2011 real terms) and will run over a two year period and cover the metallurgical facility, one hydropower station and back-up thermal power facility, construction of the tailings storage facility, relocation of villages, open pit mining and all shared infrastructure.

§ Phase 2 capital programme was estimated at US$650 million (in 2011 real terms) and will run concurrently with Phase 1 but will extend over four years, is focused primarily on the underground development and includes a twin decline, single vertical shaft system as well as three hydropower stations. This is expected to bring the underground into first production by the end of 2014, with steady state production targeted for the end of 2015.

The LOM financial model used a US$1 400/oz gold price and indicated the following returns, and total cash cost:

§ Internal rate of return (IRR) 22%

§ Total cash cost per ounce US$515/oz

§ Assuming a gold price of US$1 500/oz, peak funding of US$1.2 billion was expected during 2014.

Kibali mineral resource and reserve update

See extract from annual mineral resource and mineral reserve declaration published 30 March 2012.

MASSAWA

During the quarter, work at Massawa focused on exploration on the permit. Details are included in the exploration section of this report.

Massawa mineral resource and reserve update

The initial prefeasibility study completed on the open pit mineral reserves in 2010 has been updated using a reserve gold price of US$1 000/oz, a resource price of US$1 500/oz and revised input costs. See extract from annual mineral resource and mineral reserve declaration published 30 March 2012.

In the first quarter of 2012 we continued to advance our projects in line with our strategic plan. After several years of continuous drilling in Mali and Senegal, it has been a time for consolidation, to review of all data layers and clean-up the resource triangle to prioritise work programmes. In Côte d'Ivoire we are slightly more advanced, with drill programmes being defined on targets across our permit portfolio as well as the conversion of inferred resources in the Southern Zone orebody. At Kibali it was all about the evaluation of the potential mineral inventory and in Kalimva we have a new target which could deliver the next discovery.

MALI

Gounkoto

As part of the ongoing underground prefeasibility study at Gounkoto, an additional eight holes were drilled beneath the reserve pit to further delineate the high grade in the Jog Zone and to test for new areas of high grade mineralisation to increase the projects potential. This work included the drilling of three twin holes within the Jog Zone which all confirmed the location and high grade of the mineralisation in both MZ2 and MZ3. However they also confirmed the variable nature of the coarse, high grade gold content of this mineralisation and on average were 56.6% higher in grade than the original holes.

Three holes were drilled outside of the Jog Zone, beyond the limits of the block model. However no mineralisation was intersected, although the holes did confirm the continuity of the geological units as well as the structures hosting mineralisation. Drilling has now stopped and a detailed review is being completed.

Gounkoto/Bambadji regional exploration

In the Gounkoto and Bambadji region the emphasis has been on generating conceptual targets beneath the extensive transported material around the Falémé River. The regional gravity and electromagnetic geophysical data highlights a major structural north-south break which runs from Gounkoto to Yalea and is a significant regional target for exploration.

Due to the fact that the Falémé River runs along this structure (or adjacent to it) any near surface mineralisation may be masked at surface. In addition, the geological complexity of an orogenic belt featuring blind mineralisation due to features such as folds, thrusts and faults in line with what is recognised from our deposits across the Loulo district clarify the reasons for testing deeper concepts beneath transported material. A number of regional cross sections have been constructed across the district, and drilling will focus on the Yalea/Gounkoto structure where no historical work has been carried out. This includes drill lines on both the Gounkoto and Bambadji permits. In Bambadji, pitting on a Gounkoto lookalike target at West Kach has returned anomalous results: 0.4g/t, 0.3g/t and 1.52g/t; and at Beyanord historical diamond drill hole results of 40 metres at 1.12g/t and 16 metres at 1.48g/t on the Yalea/Gounkoto structure are deemed very significant, while to the southwest of Gounkoto rock chips in the river returned 4g/t.

Loulo exploration

At Loulo, extensive drill programmes were completed during 2011 on satellite deposits which resulted in the conversion of resources to reserves at Baboto and at Loulo 3, and the identification of a potential underground target at Loulo 3. In terms of greenfields potential, two highly prospective target areas at Gara North and Yalea South have been selected for follow-up work including RC drilling. In Gara North, two targets which are largely covered by transported colluvial material will be further tested. Geologically, the target is underlain by tourmalised greywackes along strike to the north of PQ10 and has returned: 4.6 metres at 1.93g/t and 2 metres at 7.26g/t in grooves; 14 metres at 1.9g/t and 10 metres at 1.8g/t in RC holes drilled in January; as well as a number of anomalous lithosamples from several small outcrops. At Yalea South, drilling is planned on the north-south Yalea structure where previous RAB drilling did not penetrate transported river gravels. A recent trench result returned 7 metres at 2.88g/t and 3 metres at 3.85g/t, and an old DDH hole intersected 10.5 metres at 1.7g/t.

The latest resource models and pit designs are being reviewed to identify opportunities for additional resource conversion opportunities including those resources which are not in the current five year LOM plan.

Underground exploration

Underground exploration drilling continued throughout the quarter. A total of 38 holes for 5 166 metres was drilled in Yalea underground and Gara underground. Results support the geological model and grade tenure of both deposits. Interestingly, drilling in the 'purple patch' which had previously identified a possible duplication of the orebody has now confirmed thickening due to folding and reverse movement along the main structure.

Exploration has been analysing the Yalea and Gara deposits and the potential for new high grade zones of mineralisation at depth and is planning three approximately 1.8 kilometre deep holes below the current block model, per deposit in order to aid longer term mine development.

Mali South

A year has elapsed since the signing of the Nimisila JV in southern Mali. During this time exploration has completed regional soil surveys and regional and detailed geological and regolith mapping and interpretation. This quarter infill soil grids were completed on 10 of the identified targets of which nine have returned sufficient anomalism to require further follow-up work, including trenching, prior to a decision on whether or not the targets meet the criteria for drilling.

SENEGAL

Randgold's Mako belt permits currently host the Massawa deposit (3.6Moz at 2.76g/t) and the potential for a further 3.9Moz at 0.9g/t contained in six satellite deposits around Massawa. However due to the combination of the refractory nature of the Massawa mineralisation and the low grade of the satellite deposits, the exploration team continues to evaluate targets within the resource triangle to enable the project to move towards development. Following a detailed review of the resource triangle, including the rejection of targets which do not meet Randgold's stringent filters, the team is now evaluating 16 early stage targets.

CÔTE D'IVOIRE

At Tongon, a diamond drilling programme beneath the Southern Zone pit has started with the aim to convert 600 000 inferred ounces to indicated status. By the end of Q1 two holes had been completed, confirming the geology as modelled but with gold assay results pending. Elsewhere in the Nielle permit, exploration is evaluating early stage targets which will lead to the next discovery.

At Diouala, on strike between the Nielle permit and the Banfora project in Burkina Faso, high grade lithosamples have been returned from the Gnelezie target (35.6g/t, 18.6g/t, 12g/t and 1.62g/t) from strongly sheared and altered granite. At Kokoriko, several sub-parallel silicified structures within andesites have returned high grade lithosamples over three kilometres, including: 17g/t, 16.6g/t, 9.36g/t and 3.6g/t. Aircore drilling is planned for Q2 on both of these targets.

At Boundiali, 60 kilometres to the west of Nielle, early stage exploration work has identified four district scale (gold in soil) anomalous corridors up to 30 kilometres in strike length for follow-up work. Detailed mapping is currently in progress to define drill targets for testing later in the year.

DEMOCRATIC REPUBLIC OF CONGO

Kibali

A Phase 1 programme of six diamond holes was drilled over a 1.5 kilometre strike at KCD and confirms a 100 to 200 metre wide extension of the 9000 lode towards Gorumbwa. Results include: DDD545 - 1 metre at 4.53g/t (from 391.6 metres to 392.6 metres); 1.6 metres at 5.6g/t (from 395.8 metres to 397.4 metres); and 23.5 metres at 2.93g/t including 10 metres at 5.46g/t (from 403.5 metres to 427 metres). Mineralisation locates along the limb of an overturned fold. Results are currently being modelled to design a second phase of infill drilling to enable an updated resource calculation.

Within a 10 kilometre radius of the main KCD deposit, there are a number of satellite deposits which are in reserve category or have resource potential calculated. Both of these target types are considered to be high priority as they have considerable upside, either having very limited drilling or drilling only to shallow depths of less than 200 metres. Gorumbwa, the Pakaka-Pamao complex and Mengu Hill Village complex have been initially prioritised and form part of the endowment plan for near mine site targets in the resource triangle. Drill programmes are currently underway at Mengu Hill and Pakaka to evaluate the mineral inventory. At Pakaka, hole PDD145 drilled 410 metres down plunge and outside of the current resource model returned 29 metres at 3.19g/t from 394 metres. Mineralisation remains open in all directions. In addition a new target, Tete Bankangwe, has been identified as a potential new mineralised lode plunging below the Pakaka deposit, associated with an anticline fold structure. Previous shallow RC drilling returned promising results including 10 metres at 4.36g/t and 20 metres at 3.05g/t. Phase 1 diamond drilling is in progress.

At Kalimva, a first phase of diamond drilling of six holes over a strike of 1.5 kilometres has been completed. Gold assay results have been received for the first two holes: KVDD001 - 73.7 metres at 3.41g/t including 7.2 metres at 6.83g/t, 6.8 metres at 5.73g/t and 7.8 metres at 7.2g/t; and KVDD0002 - 26.03 metres at 2.57g/t including 11.55 metres at 4.19g/t. These results together with the observations from the other four holes confirm a very significant mineralised system over a 1.5 kilometre strike, comprising a series of stacked lodes which plunge to the northeast at approximately 30 degrees. Geologically the target is underlain by ironstones, a thick package of coarse volcaniclastics, tuff units, and thin carbonaceous shale horizons. Mineralisation is associated with strong silica-carbonate-chlorite-sericite alteration, finely disseminated pyrite and pyrrhotite and the local presence of specular haematite.

At Zambula, results were received from trenches in the central part of the Zambula anomaly: ZBTR19 - 8 metres at 2.5g/t; and ZBTR20 - 34 metres at 1.32g/t including 6 metres at 5.65g/t. A full surface evaluation of the five kilometre target continues prior to planning further reconnaissance diamond drilling.

Property, plant and equipment at cost increased by US$112.1 million for the three months ended 31 March 2012, resulting from the continued capital expenditure across the group's projects and operations. Capital expenditure of US$64.6 million at Loulo related primarily to decline developments at the Gara and Yalea underground mines, as well as to stripping costs being deferred with regards to the Yalea South pushback (refer to change in accounting policy section for further details). US$9.8 million was incurred on capital expenditure at Gounkoto, principally in respect of roads,infrastructure, water and crushing facilities. Capital expenditure at Kibali amounting to US$30.3 million (attributable) was primarily spent on earthworks, civils, structural steel works, RAP and camp construction. Capital expenditure of US$7.4 million was spent at the Tongon mine, primarily on plant engineering. The group's capital commitments at 31 March 2012 amounted to US$158.1 million and mainly related to Kibali (US$111.8 million).

The US$7.1 million rise in inventories and current ore stockpiles is a result of the increase in gold on hand at both Loulo and Gounkoto at quarter end. 10 958 ounces of gold in doré (valued at US$18.2 million using the closing spot price of US$1 663/oz) remained unsold at the Loulo-Gounkoto complex at quarter end, due to the timing of gold shipments.

The increase in current trade and other receivables of US$38.1 million is mainly due to increased gold debtor balances at Loulo as a result of the timing of gold shipments at quarter end (US$29.3 million). Gold shipments resumed at quarter end, following the political upheaval in Mali during March 2012.

The decrease in cash of US$30.7 million reflects the capital expenditure on the group's growth projects during the quarter as well as the increased gold debtors, as detailed above, partially funded by cash generated by operations during the quarter.

The increase in deferred taxation of US$6.1 million relates mainly to the stripping costs that have been deferred at Loulo following the change in accounting policy on 1 January 2012 (refer to change in accounting policy section for further details).

The decrease in trade and other payables of US$18.1 million for the three months ending 31 March 2012 mainly reflects the timing of settling of creditor invoices.

The decrease in current tax payable of US$2.5 million, or 13%, is the result of the reduction in the corporate tax rate in Mali from 35% to 30% in 2012. This affected both the Morila and Loulo mines. Gounkoto is currently operating within a tax holiday period following the signing of the mining convention in March 2012.