Q2 results and updates

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

RANDGOLD PROJECTS SUSTAINED PROFITABILITY AT LOWER GOLD PRICE LEVELS

London, 7 August 2013 - Increased production and reduced costs should enable Randgold Resources to remain profitable in the face of a decreased gold price, the company said today.

Speaking at a presentation on Randgold's quarterly results, chief executive Mark Bristow noted that the company's business model had been designed to deliver returns at lower gold prices, and it had therefore not been forced to write down its reserves as these had been calculated at US$1 000/oz. Randgold had, however, reviewed all its business plans at the beginning of the year and where necessary aligned them to the drop in the gold price.

"Our giant Kibali project is scheduled to start gold production in October, Loulo and Gounkoto are both accessing higher grade sections in their orebodies, Tongon is continuing its turnaround and improved efficiencies across the group have already cut our total cash cost per ounce by 5% this past quarter. In addition, projects are underway across the group to increase throughput and recoveries and reduce unit costs further," he said.

Randgold was therefore well placed to sustain its profitability, he said, albeit not at the levels achieved during the peak in the gold price.

Reflecting the turndown, the reduction of 17% in the average gold price received during the quarter to June impacted on profit for the period, which came down from US$81.6 million in Q1 to US$54.1 million. Production of 196 207 ounces was in line with that of the previous quarter.

Cash and cash equivalents on hand at the end of the quarter amounted to US$44.8 million which, together with the recently negotiated revolving credit facility of US$200 million secured by the company, meant it remained strongly positioned to fund its growth projects, Bristow said.

Bristow noted that while Kibali was now heading steadily to first production, continued drilling had increased the total resources there by 13% to 21.5 million ounces. At the Gounkoto underground project, drilling had identified a high grade intersection which could expand the project. Incorporation of the new data in the geological model would push the planned completion of the feasibility study out to 2014.

RANDGOLD ENQUIRIES:

Website: www.randgoldresources.com

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REPORT FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2013

Change in accounting policy impacting results in this report

As previously reported, following the introduction and adoption of IFRS 11 Joint Arrangements, the group changed its accounting policy on joint ventures from 1 January 2013, with comparative IFRS results restated accordingly. As such, the group's share of joint ventures (primarily Morila and Kibali) have been accounted for using the equity method, rather than proportionately consolidated, from 1 January 2011 as required by IFRS 11. The group's share of its joint ventures are now disclosed as a single line item as 'total investments in joint ventures' on the consolidated statement of financial position, as 'share of profits of equity accounted joint ventures' in the statement of comprehensive income and the group's cash flows from the joint ventures have been disclosed separately in the consolidated cash flow statement. Previously, our share of assets, liabilities, income, costs and cash flows were proportionately consolidated on a line by line basis. A full reconciliation of the effect of the changes resulting from the adoption of IFRS 11 is provided under 'Change in accounting policy - Accounting for investments in equity accounted joint ventures', including results under the previous accounting policy, which reflects how Randgold reports internally.

^ Cash and cash equivalents excludes US$26.9 million at 30 June 2013 (US$37.4 million at 31 March 2013 and US$13.0 million at 30 June 2012) that relates to the group's attributable cash held in Morila, Kibali and the group's asset leasing companies which are now equity accounted, following the introduction and adoption of IFRS 11 Joint Arrangements.

* Refer to explanation of non-GAAP measures provided. Historically, Randgold consolidated 100% of Loulo, Gounkoto and Tongon and 40% of Morila and non-GAAP measures remain on this basis and are not affected by the change in accounting policy detailed above.

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

+ The group changed its treatment of consolidated non-GAAP measures in Q4 2012, which has resulted in changes to the group level non-GAAP measures for the quarter ended 30 June 2012 as explained in the 2012 annual report.

~ Results impacted by change in accounting policy as detailed above.

The results in this report have been neither reviewed nor audited.

Gold sales decreased by 18% from the previous quarter largely due to a 17% drop in the average gold price received during the current quarter to US$1 363/oz from US$1 638/oz in the previous quarter. Gold sales decreased by 27% compared to the corresponding quarter in 2012, principally due to a 15% drop in the average gold price received from US$1 606/oz in the June 2012 quarter, as well as a 14% decrease in the ounces sold following lower grades and recoveries achieved at the Loulo-Gounkoto complex during the quarter. Gold sales were also negatively affected by the higher gold on hand, particularly at Tongon, following a temporary change in the export approval process at quarter end which resulted in a higher level of gold produced but unsold. All of the gold has been sold following quarter end.

Total cash costs for the group were 7% lower than the previous quarter and in line with the corresponding quarter in 2012. The decrease quarter on quarter reflects the lower cost of production across the group, but in particular at the Loulo-Gounkoto complex, due to cost saving initiatives implemented.

Profit from mining decreased by 30% to US$105.3 million in the current quarter from US$150.4 million in the previous quarter, mainly attributable to the lower gold price received. Profit from mining was down 47% from US$197.7 million in the corresponding quarter of 2012, resulting from a lower gold price as well as a reduction in gold sales.

As previously reported, following the introduction and adoption of IFRS 11 Joint Arrangements, the group changed its accounting policy on equity accounted joint ventures from 1 January 2013 with comparative periods restated accordingly. Refer to "Change in accounting policy - Accounting for investments in equity accounted joint ventures' in this report for details of the effect on IFRS measures.

Depreciation and amortisation of US$31.3 million decreased by US$18.5 million from the previous quarter and increased by US$5.1 million compared to the corresponding quarter of 2012. The drop from the previous quarter mainly reflects the change in mill feed where no ore from the Yalea South pushback was processed at Loulo during the quarter. The increase from the corresponding quarter in 2012 is due to increased assets brought into use at the Loulo-Gounkoto complex and at Tongon.

Exploration and corporate expenditure of US$15.4 million increased by US$2.4 million compared to the previous quarter's US$13.0 million and by US$1.6 million compared to the corresponding quarter of 2012. The increase during the current quarter is due to increased share-based payment charges during the quarter due to new share grants.

Other income of US$4.3 million compares to other income of US$7.7 million in the previous quarter and US$3.4 million in the 30 June 2012 quarter and the movement is largely a result of the amount of operational exchange gains accounted for in the relevant 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. Other income also includes management fees received from Morila and Kibali.

Share of profits of equity accounted joint ventures reflect our share of Morila's profits for the quarter of US$7.5 million (Q2 2013: US$7.9 million), as well as our share of Kibali losses of US$1.0 million (Q2 2013: US$0.9 million), together with profits from the group's asset leasing joint ventures.

Income tax for the quarter of US$6.6 million was up by 75% from the prior quarter and in line with the corresponding quarter in 2012. The increase from the prior quarter is a result of the cessation of the tax holiday at Gounkoto at the end of May 2013.

Profit for the quarter of US$54.1 million decreased by 34% from US$81.6 million in the previous quarter and decreased by 62% from the corresponding quarter of 2012. Similarly, basic earnings per share decreased to 50 US cents, down 34% from the prior quarter and down 61% on the corresponding quarter of 2012.

LOULO-GOUNKOTO COMPLEX

The combined Loulo-Gounkoto gold production for the current quarter was 121 162 ounces (Loulo 54 967 ouncesand Gounkoto 66 195 ounces).

This reflects a 3% drop in production from the previous quarter, largely as a result of a small decrease in the average grade of the ore processed to 4.0g/t (Q1 2013: 4.1g/t), in line with the revised mining plan to feed the ore mined without stockpiling lower grade ore. The back calculated ore grade milled was also impacted by an increase in the gold locked up in the processing circuit, following an increase in higher grade ore fed at the end of the quarter. Recoveries were impacted by increased high grade scats rejects (ore fractions rejected from the mill due to the ore hardness), which are expected to be addressed in Q3 following the commissioning of the milling circuit recycle crusher in July as well as the installation of a new oxygen plant in Q2. Improved operating efficiencies across the complex resulted in a 10% drop in the total cash cost per ounce to US$799/oz (Q1 2013: US$886/oz).

Overall good progress has been realised with regards to the three more pertinent capital projects at Loulo.

§ Paste backfill

All seven tanks at the tank farm area are at maximum height and awaiting tank top steelwork, prior to placing mechanicals. Erection of the cyclone building as well as the 30 metre diameter thickener is progressing well with 80% of the thickener bottom platework erected. The majority of the civils at both the Yalea and Gara backfill sites are complete with essentially the surface beds outstanding (excluding the bunker construction) and the mine is awaiting the arrival of steelwork from the fabricators for erection. All major process equipment has been ordered and is in the process of being delivered to site. Estimated completion still remains end of this year for the Yalea paste fill plant.

§ HFO conversion

The first four of eight CM32 Caterpillar engines will convert to HFO early in Q3 2013, thus realising an operating cost saving for the Loulo complex. All that is currently outstanding is painting, lagging and the installation of the fire fighting suppression and deluge system.

§ CIL plant extension

The four 2 500 cubic metre CIL tanks are at final height. The erection of the tank-top steelwork is being carried out in preparation for mechanicals (eg agitators, interstage screens, carbon transfer pumps) and the additional four tanks are scheduled to come on line in Q3 2013.

* 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

Two lost time injuries were recorded during the quarter.  The Lost Time Injury Frequency Rate (LTIFR)was 0.95 per million hours worked versus nil for the previous quarter. In line with the KPIs identified by the mine at the start of the year, the Loulo mine has been recommended for OHSAS 18001 safety certification and maintained its ISO 14001environmental certification.

On a standalone basis, Loulo produced 54 967 ounces of goldduring the quarter (Q1 2013: 87 963 ounces) at a total cash cost per ounce of US$886/oz (Q1 2013: US$860/oz). The drop in the gold production from Q1 2013 was due to 27% less tonnes processed, with more tonnes processed from Gounkoto, and lower head grade, partially offset by the small increase in recovery.

Increases to plant and ROM stockpiles of 40kt at 4.6g/t account for the difference between ore mined and processed and occurred due to the timing of the ore production underground. The back calculated ore grade milled was also impacted by an increase in the gold locked up in the processing circuit, following an increase in higher grade ore fed at the end of the quarter.  

Recoveries were impacted by increased high grade scats, which are planned to be addressed in Q3 following the commissioning of the milling circuit recycle crusher in July as well as the installation of a new oxygen plant in Q2. The reduction in tonnes processed and grade impacted negatively on the total cash cost per ounce produced, but were well contained due to operating efficiency improvements across the mine.

Profit from mining of US$25.3 million was down on the previous quarter's US$65.9 million, reflecting the lower tonnes and grade processed as well as the lower average gold price received.

Randgold owns 80% of Loulo with the State of Mali owning 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.

Loulo underground progress

Production

During Q2, Loulo underground continued to improve its production profile, built on a solid development strategy.

The overall underground production increased to 585 764 tonnes in Q2 2013 from 282 497 tonnes in the corresponding quarter of 2012 (107% increase year on year).

The overall development continued at a good pace with 5 558 metres developed in Q2 2013 (Q2 2012: 4 853 metres).

The improvement in production and development during the last 15 months isattributable to the following factors:

§ The team has developed an optimal mine design and backfill strategy;

§ Introduction of Cemented Aggregate Fill (CAF) to improve the availability of mining blocks and stability of mined out areas;

§ The consistent development profile has increased mineable ore reserves, allowing the achieved build-up of underground production;

§ A new type of emulsionexplosive for up-holes, introduced to the mine in Q4 2012, together with a second charging unit added in Q1 2013, have proven successful;

§ The hoisting system has been optimised by installing an additional orepass and a two waste passes at Yalea;

§ The introduction of larger loaders and trucks has also improved the fleet optimisation; and

§ Cost control has improved by introducing a cost control education process to the team.

YALEA

During this quarter, a total of 2 914 metres of development was completed and a record 368 220 tonnes of ore at 4.36g/t was hauled to surface which represents a 32% increase on the previous quarter. The project has completed 41 047 metres of development to date.

The Yalea declines have advanced to 3 398 metres from surface at a vertical depth of 417 metres.

The introduction of the optimal ore and waste handling system from 88L/113L has now allowed the conveyor hoisting of all mined materials to surface.

Yalea underground mine

GARA

During this quarter a total of 2 644 metres of development was completed and a record 217 544 tonnes at 4.43g/t were hauled to surface. The flat stopes are now being successfully mined and CAF has commenced. The project has completed 22 925 metres of development to date. The Gara declines have advanced to 2 557 metres from surface at a vertical depth of 339 metres.

The overall developmentatGara continues to improve with major infrastructure excavations for the conveyor and crusher areas being developed during Q2. The Gara conveyor project is scheduled for completion in Q3.

Gara underground mine

GOUNKOTO

No LTIs were recorded during the quarter, in line with the previous quarter, and the mine recently achieved 360 LTI free days. The Gounkoto mine achieved its ISO 14001 environmental management system certification.

On a standalone basis, Gounkoto produced 66 195 ounces of gold (Q1 2013: 37 128 ounces). The 78% increase in ounces produced reflected a 51% increase in tonnes milled, a 17% increase in the ore grade processed to 4.2g/t and a slight increase in recovery. Total cash cost per ounce decreased by 24% to US$722/oz (Q1 2013: US$948/oz), reflecting an increase in the grade mined and recovery, as well as improved operating efficiencies across the Loulo-Gounkoto complex.

Profit from mining of US$38.5 million was up on the previous quarter's US$24.0 million, as a result of the significant increase in gold sold and lower cash cost per ounce, offset by the lower average gold price received.

Randgold owns 80% of Gounkoto with the State of Mali owning 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

Geotechnical drilling was completed during the quarter to update the rockmass classification model for determination of stope design and production capacities as well as ground support requirements. The geotechnical hole DSGT007, drilled to confirm the geotechnical condition of the decline intersected a new orezone MZ4, located to the north west of the current Jog Zone, between the current pit and P64, which returned 25 metres at 9g/t. This requires a revision of the geological model since the opportunity exists to expand the project based on confirmation of the new lode and the possible incorporation of P64 into a single project, which will delay the completion of the underground feasibility into 2014.

Geotechnical modelling will continue on the Main Zone, together with hydrogeological modelling of the Main Zone stoping, to be incorporated into a prefeasibility study planned for completion by the end of 2013.

Petrological studies were completed on the Main Zone underground samples which identified no issues, with gold deportment similar to open pit ore with 30% gravity recoverable gold and expected total recovery of plus 90% assuming gravity and cyanide leaching.

MORILA

No LTIs were recorded during this quarter, in line with the previous quarter, with 460 894 LTI free hours achieved. 

During the quarter, Morila produced 42 473 ounces of gold, 10% higher than the previous quarter (Q1 2013: 38 547 ounces), as a result of higher grade ore processed and improved recoveries. Tonnes treated decreased from 1 078kt to 1 068kt, due to the planned primary crusher repair and new crushing system installation, in line with the strategy to switch over to 3 stage crushing and ball milling and phasing out the lower power efficient SAG mill at the end of the quarter. Profit from mining of US$28.3 million was 13% lower than the previous quarter principally as a result of the 16% lower average gold price received.

Total cash cost per ounce of US$719/oz was 5% lower than the previous quarter, mainly as a result of higher grades and ounces produced as well as improved operating efficiencies in the plant.

Mining of the Pit 4S pushback was successfully started during the quarter with 754kt of waste material mined.

Evaluation continues on the feasibility of reprocessing the Tailings Storage Facility (TSF) on completion of the Pit 4S pushback and mineralised waste. A hydraulic reclamation schedule will be completed, based on the TSF grade block model, to provide the plant feed schedule above the cut-off grade with the balance of the material for in-pit disposal.

Work on the agribusinesses pilot projects continued including:

§ The newpoultry rearing shed to receive 6 000 chicks was completed to start production in Q3, targeting 5 000 layer production in Q4 and 10 000 in Q1 2014;

§ The firstfish pond wasstocked with 6 000 fingerlings with harvest expected in Q4;

§ An 8.6ha high density mango project was prepared with planting to begin in Q3;

§ 750 bee hives produced a harvest of 480 kilogrammes of raw honeyand are being monitoredfor the next production cycle in Q3; and

§ Five tonnes ofpickled mangos have been deliveredto site to begin market testing in Q3.

* Refer to explanation of non-GAAP measures provided.

** The stockpile adjustment per ounce reflects the charge expensed in respect of stockpile movements during the period divided by the number of ounces sold. Total cash cost per ounce includes non-cash stockpile adjustments.

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

TONGON

The mine incurred one LTI in Q2 compared to zero in Q1. Measures have been implemented to reduce the number of incidents, to report near misses and hazards and to prevent occurrences before safety risks develop into incidents or accidents. Tongon, to date, has achieved 710 452 LTI free hours since the last LTI. The mine successfully completed phase 1 of the OHSAS 18001 certification audit. Phase 2 is planned for the beginning of Q4.

Tongon's quarter on quarter performance showed a significant improvement with respect to total volumes and ore tonnes mined.

Tongon produced 58 056 ounces of gold in Q2, in line with the previous quarter despite a decrease in mill availability and consequently mill throughput due to downtime associated with plant upgrade tie-ins. Process plant stability is steadily improving due to a reduction in plant stoppages and improved performance of the concentrate fine grind and treatment sections. Additional testwork and optimisation of the flotation and gravity recovery circuits undertaken by the mine, together with key suppliers and consultants is continuing. Gold production is expected to improve with the planned increase of mill throughput following the completion of the new gravity recovery circuit.

Mill throughput decreased by 3% to 912kt compared to 944kt in the previous quarter, following a number of planned stoppages which impacted mill availability. These included the complete reline of both mills, the installation of the first of four Vibrocone crushers and the installation of self-disengaging barring gear couplings on both mills. Mill availability was restored to 90% by the end of the quarter, on par with Q1. The gradual positive trend in mill availability reflects the continued improvement in planned maintenance and fewer unplanned mechanical breakdowns.

The planned ramp-up in mill throughput is on track for Q4 with the changeout of four of the existing tertiary Hydrocone crushers with four Vibrocone crushers. The first of these Vibrocone units seized during commissioning on ore in July and is being replaced by Sandvik. The new crushing circuit upgrade will produce a finer crushed product and enable an increase in the milling throughput. In addition, the mill classification circuit is being upgraded to treat the forecast increase in mill throughput arising from the finer mill feed.

Gold recovery remained in line with the previous quarter at 78.3%. Plans to improve recovery are on track for completion in Q3 with the successful procurement and installation of additional residence pump-cells in the concentrate treatment circuit and installation of a gravity recovery circuit, inclusive of two Knelson Gravity Concentrators and an Intensive Leach Reactor, currently underway.

The mine continued to improve and stabilise the mining operations in the South Zone (SZ) pit resulting in an 12% increase in mined volumes and a 21% increase in ore tonnes mined quarter on quarter, mainly due to continuous improvement in metres drilled, ore fragmentation and excavator productivities. A total of 7 660kt was mined compared to the previous quarter's 6 845kt.

Total cash cost per ounce increased to US$863/oz from US$817/oz in the previous quarter, reflecting the slightly lower production, resulting from the decreased throughput, while the previous quarter's costs also benefited from stockpile adjustments. Gold sold for the quarter was 50 593 ounces, lower than the ounces produced and the 54 386 ounces sold in Q1, following a temporary change in the export approval process at quarter end which resulted in a higher level of gold unsold. Consequently, the profit from mining activity quarter on quarter decreased by 37%, reflecting the lower gold price received, lower sales and the higher cost of production.

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.

KIBALI MINE DEVELOPMENT

Safety continued to improve quarter on quarter, with four LTIs recorded.  The LTFIR reduced from 1.25 in Q1 to 0.81 in Q2. The project also recorded its first 3 million LTI free man-hours during the quarter.

The Kibali project remained on track during Q2 2013.  The strategy to get early gold production from mill stream 1 was advanced as planned and Kibali is nowprojecting first gold production in October, with mill stream 1 expected to commissionin September 2013.  Initial ore sources will be Durba tailings material and gold bearing concrete and soil from the old Durba mill, prior to switching over to KCD oxide ore.

Kibali mineral resource update

Following the acquisition of the Kibali gold project in 2009, Randgold has been able to increase the reserves from 5.5Moz to 10.9Moz by completing a geological model of the KCD deposit. Over the past three years, a lot of work has been completed, not only on the KCD deposit, but also the entire resource inventory: field mapping, relogging core and RC drill chips; and the generation of geological models, updated resource models and economic assessments. This had the effect of reducing the overall mineral inventory on acquisition from 21.0Moz to 18.99Moz. At the same time, drilling continued on the main KCD deposit targeting both infill drilling and extensions to known mineralised lodes. This work has now been integrated into a new geological model and resulted in a significant increase in the resource base for the deposit of 2.5Moz to 21.5 million ounces, net of the Kibali South deposit which has been dealt to SOKIMO. This data is now being used to prepare a new mining reserve which is expected in September. There is still a lot of upside and opportunity at Kibali from the main KCD deposit, the known satellites deposits and greenfield targets which is discussed further in the exploration section of this report.

* Open pit mineral resources are the insitu mineral resources falling within the US$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 5 685 metre 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.

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

See comments and US disclaimer on page 72 of the 2012 annual report.

Metallurgical facility and associated infrastructure

During the quarter, Kibali focused on renegotiating the main contracts associated with the metallurgical facility as well as the related infrastructure (tailings dams and Nzoro 2 hydro facility) to align these contracts with an earlier oxide commissioning date, as well as managing all contractor activities on site in line with an earlier start-up schedule.

Concrete production delays have been largely rectified and contractors are now regularly meeting their weekly targets.

Some key developments during the quarter are:

§ Nzoro 2 civil works are progressing according to plan with commissioning scheduled for Q1 2014;

§ The millmotor has been placed in position and the base plate and grouting completed;

§ 96% of all plant steel (oxide and sulphide streams) has now been shipped to site;

§ 93% of all piping fabrication (for oxide and sulphide streams) has been completed, and shipping to site is ongoing;

§ 99% of all platework (oxide and sulphide stream) has been shipped to site; 

§ Three CIL tanks have been hydro tested.  The remaining tanks are being painted and internals were being completed at the end of the quarter;

§ 1 kilometre out of the 1.8 kilometrestormwater diversion completed;

§ Fuel farm materially completed with full completion projected for Q3 2013;

§ First generator commissioning started; and

§ Consumer substation completed and ready for commissioning.

Mining

Open pit

The open pit mining contractor performed well against plan, exceeding the monthly target of 1 million BCMs per month for the quarter.  Mining conditions were favourable in the quarter mainly due to the lower rainfall as well as haul roads improved by effective sheeting.

A total of 1 003 394 tonnes of ore at 2.27g/t was mined during the quarter.

The total stockpile content at the end of Q2 was 2 112 148 tonnes at an average grade of 2.13g/t, including 1.08Mt of ore at 3.17g/t on medium and high grade stockpiles.

Declines

From January to June, the decline advance rate ramped up from around 100 metres per month to more than 300 metres per month, with the addition of a second Jumbo rig.  At the end of June, each decline had reached a project to date length of 550 metres, exceeding the planned advance by 33%. Some water intersection occurred in the decline with no adverse impact on the development.

Vertical shaft

At the end of June 2013, the presink was at -73 metres.  The main activities on the shaft currently are the headgear erection and winder installation. The full mobilisation and procurement of plant and equipment is 94% complete and full sink is scheduled to start in Q4 2013.

Relocation Action Plan (RAP)

RAP maintained momentum during the quarter with a total of 863 houses completedand over 1 000 families resettled making a total of 3 400 families resettled to date.  The Catholic Church Complex is in an advanced stage of completion.  To date 11 schools, six clinics and 25 places of prayer have been completed and handed over to the community. The RAP programme is scheduled to be completed by the end of August 2013.

Capital expenditure

Project expenditure ramped up in line with construction activities with a total spend of US$250.1 million (100%) during the quarter.  Capital spent for the year to date amounted to US$449.3 million. The capital estimate for phases 1 and 2 of the project has been updated and is now estimated at US$1.69 billion, a 1.8% increase on the previous estimate.

Operational readiness

Kibali progressed in preparing for production by sending local residents for training at Randgold's Morila and Tongon mines in West Africa.  The training is progressing well with knowledge and skills transfer to the attendees being in line with expectation.

Key operational management are in place and integrated in the startup and commissioning plan of the metallurgical facility.

MASSAWA GOLD PROJECT

Work continued on the feasibility study during the quarter. The results of the Central Zone grade control orientation study demonstrated that the 15 metres by 5 metres spacing drilling would be optimal for grade control drilling, while 25 metres by 20 metres spacing was recommended for advanced grade control. Consequently, we plan to test a few lines at this wider spacing over the various areas of the orebody, to confirm the depth projection of the lodes and enable a better overall model to be developed. Initial attempts at drilling these lines with RC have proven unsuccessful due to high water intersections. A similar analysis to what was done on the Central Zone progresses.

In the Northern Zone a similar orientation exercise has been initiated and drilling is complete which has identified two ore lodes where previously a single lode was modelled.

As part of the pressure oxidation testwork, a total of 20 tonnes of metallurgical samples have been shipped to Hazen Research in Denver. All metallurgical holes have been logged and photographed. Samples have been geologically selected to represent ore samples from the various parts of the ore body. Each sample will be crushed and a subsample collected for full geochemical analysis.

The testwork is currently underway and has been directed to ensure we:

§ Correctly define the gravity recoverable component of the samples;

§ Investigate an option to concentrate using flotation after gravity and discard float tails; and

§ Determine if it will be possible to blend the float concentrate instead of ROM feed.

This quarter Randgold continued to forge ahead with its exploration projects at a time when the majority of the industry are stopping or severely curtailing exploration activities.  With the drop in the gold price and subsequent decline across the industry this period is viewed as an opportunity for Randgold to acquire new exploration ground while at the same time, rationalising its current portfolio and reinforcing its strategic filters.

Four principal areas of focus have been identified:

§ The Mako Belt of eastern Senegal, which hosts the company's Massawa deposit;

§ The Loulo-Gounkoto mining district (western Mali/eastern Senegal);

§ Northern Côte d'Ivoire; and

§ North eastern DRC.

This plan has resulted in exploration being stopped in both southern Mali and Burkina Faso due to a combination of factors: the lack of access to prospective ground; poor exploration results; and no recent world class discoveries.  Permits in these two areas are in the process of being returned to either our partners or the State. Randgold is fulfilling any active joint venture commitments during this closure and relocating its technical teams within the group.  While on-the-ground physical exploration is being stopped, both areas have been handed to the generative team to reintegrate the data layers, review the regional interpretations and generate new target areas for potential future permitting or joint ventures as the industry slowdown continues to bite.

As part of our long term strategy in western Mali a JV agreement has been signed with Taurus Gold on the Bakolobi permit which is contiguously along strike to the north of Papillon's Fekola project and to the south of Gounkoto. Randgold is to fund all costs up to and including the completion of a prefeasibility study for the project as well as minimum annual work commitments to acquire 51% in the project.  Thereafter, Randgold may earn up to a 65% interest in the JV by funding the preparation of a feasibility study if Taurus elects not to, or fails to fund its proportionate share of these costs. Following the completion of the feasibility study, each party will be required to fund its proportionate share of all development and mining costs, failing which its participating interest will be subject to dilution.

In Q2 Randgold had eight rigs drilling on four different project sites in three countries: Gounkotoin Mali, Massawa and the Sangola JV in Senegal and Kibali in the DRC.

MALI

Loulo-Gounkoto district

The Loulo district continues to present real opportunity for the addition of quality ounces which are above the current reserve grade as extensions to known deposits as well as hosted within new deposits. As exploration continues and the area matures, the nature of the mineralisation becomes more complex. This in itself is an opportunity as areas previously thought to be evaluated become prospective with the development of alternative models.

Gounkoto

At Gounkoto, work continued to focus on drilling for the underground feasibility study in the Jog Zone, while at the same time a full review of the entire deposit is underway to identify new targets as well as to update geological models based on pit mapping and grade control drilling.

Infill drilling in the Jog Zone continued with the completion of 17 holes for 7 210 metres, six of which were additional resource holes and 11 were geotechnical holes to test the location of possible infrastructure associated with an underground operation. Gold assay results, while confirming the geological model, continue to highlight the variable nature of the grade distribution in this area. Drilling has also intersected a new high grade lode of mineralisation (DSGT07: 25.7 metres at 9g/t, from 65 metres, including 8 metres at 20.96g/t) in the footwall of MZ3, below a package of younger sediments, including conglomerates, which may have been thrust over the Gounkoto stratigraphy. This hole was originally testing a potential decline location. The host rocks, alteration, mineralisation and structural control are all analogous with Gounkoto and therefore this new zone has been termed MZ4. This zone and the potential link to P64 could significantly change the size and economics of an underground operation and therefore we are delaying the completion of the feasibility study until 2014 in order to further explore this additional target area. Recent studies are also indicating that the high grade intersections within the Jog Zone are controlled by fold hinges and further opportunity exists to test the continuity of these folds along strike where mineralisation remains open.

Gounkoto Jog Zone: Diamond drill results received during Q2

There is a shallow plunge to high grade mineralisation (plus 8g/t) within MZ1 in the southern part of the pit, which is open down plunge. Work is concentrating on the geological controls to this plunge and the design of a programme to test the potential extensions to this plunge.

The hangingwall mineralisation at Gounkoto locates in a poorly defined structure 200 metres above and to the east of the main Gounkoto lodes and extends the full length of the Gounkoto orebody. The most prospective part of this structure occurs over a 500 metre length where the main zone of Gounkoto (MZ1) is at its narrowest, in the pinch zone, which may be exploitable either by open pit, or an underground extension from the Jog Zone. Work has identified a 500 metre long continuous zone of mineralisation which averages plus 3g/t over a true thickness of 25 metres and depth of 150 metres from 80 metres below the surface. Four diamond holes were completed this quarter and confirm the geological continuity of this zone. The mineralised zone is in an area of moderate to strong albite, carbonate and silica alteration with sericite in a fine to medium grained quartzite.

Gounkoto hangingwall zone: Diamond drill results received during Q2

A review of the entire Gounkoto deposit is underway, including a full re-log of the core and integration of pit mapping and grade control data, to identify further upside opportunities including extensions to high grade mineralisation and new lodes, particularly in the footwall.

Loulo

At Loulo, work has continued on two promising, but structurally complex targets, which have the potential to host quality ounces within close proximity to the Loulo mill, namely Gara South and Yalea Ridge South. Interpretations have been updated following ground geophysical surveys, field mapping, trenching and pitting. At Gara South folded limestones and greywackes are intersected by north east structures. There are also a number of intrusive rocks seen in the area and strongly ferruginous shears have returned encouraging mineralised intersections in trenches: GST01 - 15 metres at 5.46g/t; and GST02 - 17.9 metres at 2.91g/t including 10.25 metres at 4.55g/t. The majority of the area is overlain by at least three metres of transported alluvial gravels. At Yalea Ridge South, 19 lithosamples averaged 5g/t and recent trenching has returned: YSRT04A - 21 metres at 4.9g/t associated with strong albite alteration, folding with an indication of southerly plunges and a northeast trending shear zone.

Deep drilling programmes below the current ore models at both the Gara and Yalea deposits have highlighted the potential for extensions to high grade mineralisation. Intersections include: Gara - 8.8 metres at 4.75g/t from 1 082.2 metres; and Yalea - 10.72 metres at 4.67g/t from 1 310.13 metres. These targets provide the mining operations with additional options. Further infill drilling at depth in Gara as well as in the 'purple patch' at Yalea are upgrading the model ahead of mining.

Underground exploration

Yalea underground

At Yalea, a total of 11 holes for 3 299 metres were drilled to infill and probe the lower margins of the 'purple patch' and gaps in the 'purple patch' adjacent to an east-west dextral fault to the south. This work has confirmed the potential to extend the 'purple patch' with seven holes returning a weighted average of 4.89 metres 9.65g/t.

Gara underground

At Gara, a total of 26 diamond holes for 3 345.5 metres were drilled from CD3, 110L, 140L and stockpile 17 to close the gaps and also investigate lower grade blocks adjacent to high grade zones within the resource model to the north. The majority of these holes returned no surprises and confirmed the model. However, five holes drilled in a high grade zone to the immediate south of the existing development downgraded the model from an average grade of 5.5g/t to an average of 3.6g/t.

SENEGAL

During Q2 work focused on a second grade control orientation study, this time over a 150 metre segment of the North 2 orebody at Massawa, at a 10 metres by 5 metres spacing. Gold assay results have confirmed a high grade lode of mineralisation, previously defined by the resource drilling. Detailed analysis has commenced.

Further analysis of the results from the grade control orientation programme on the Central Zone were also completed with the aim to determine the optimal drilling spacing of the orebody in this zone. Simultaneously follow-up work including trenching has been carried out on greenfields targets around Massawa, although results to date do not warrant pursuit.

An induced polarisation (IP) ground geophysical survey was completed over the KB target to provide a new data layer to define targets for follow-up work in an area with a 25km2 plus 100ppb gold in soil anomaly located in the pressure shadow of a granite intrusion.

Metallurgical samples have now been received by the laboratory for test work to start, both on the gravity recoverable gold from the quartz stibnite veins in the Central Zone, as well as the refractory sulphide ore from the entire orebody.

On the Sangola permit, which was acquired through a joint venture with Goldstone Resources, field mapping, sampling and geological interpretation were completed prior to the commencement of a first phase of RC drilling on the first of four identified targets by quarter end. Gold assay results for this drilling are pending.

COTE D'IVOIRE

Fieldwork commenced on the newly acquired exploration permits of Fapoha North, Fapoha South and Mankono, with soil geochemistry, regolith mapping and geological/structural mapping in order to start generating targets.

At Tongon, phase 1 drilling programmes on targets close to Tongon failed to return results warranting follow-up work and have been rejected from the resource triangle. Mapping and sampling continues on the next set of targets to identify further drill opportunities. The plus 12 kilometre long Oleo North corridor has been soil sampled to generate new targets at the base of the Nielle resource triangle.

At Diaouala, a geological and structural interpretation over the eastern part of the permit has been completed and identified several areas of interest for follow-up programmes. A prospective corridor of plus 7 kilometres, hosting significantly hydrothermal altered and deformed rocks that has returned plus 8g/t has been delineated between Natogo and Soundou. This was prioritised for further infill soil, detail mapping and rock sampling to establish a testable model.

At Boundiali, a first phase of reconnaissance aircore drilling over Fonondara and Katiali has been completed. Gold assay results have returned wide low grade anomalous envelopes. Drilling observations and results are being integrated to decide on further work on these targets. Simultaneously, the next level of targets including the Baya-Kassere corridor and Sani, are being tested with field mapping, pitting and trenching.

DEMOCRATIC REPUBLIC OF CONGO

Kibali

At Kibali exploration work continued to evaluate the upside associated with the KCD deposit as well as trenching and drilling of satellite targets.

KCD

Twelve holes for a total of 6 883.4 metres were drilled during the quarter to further investigate the 9000 lode, which was identified as having high potential for resource to reserve conversion of 0.5Moz at plus 4g/t. Results indicate continuation of high grade mineralisation: DDD577 - 51.7 metres at 6.2g/t including 19 metres at 10.9g/t; DDD578 - 40.6 metres at 9.19g/t including 22.6 metres at 16.05g/t and 20 metres at 5.9g/t (9000 lode FW); DDD580 - 28 metres at 4.52g/t including 8 metres at 12.4g/t; and DDD581 - 27.4 metres at 4.5g/t. A new geological model and estimate will be completed. High grade mineralisation remains open up plunge in the inferred category and new zones of mineralisation in the footwall have been identified and require modelling.

Mengu Hill

At Mengu Hill, three holes drilled down-plunge have intersected strong mineralisation at the base of the pit within inferred categorised resources: MDD058 - 52.2 metres at 5.30g/t from 168 metres including 24 metres at 9.29g/t from 187 metres; MDD063 - 22.5 metres at 3.17g/t from 223 metres; and MDD0064 - 12.2 metres at 11.64g/t from 259 metres. In addition, drilling is being completed to test inferred resources up-plunge at the top of the hill where previous drilling could not be carried out due to steep topography.

Mofu target

Encouraging trench results have been received from a new greenfields target called Mofu over a 400 metre strike length - 26 metres at 13.5g/t, 7 metres at 4.6g/t and 11 metres at 1.2g/t. The target locates three kilometres to the north of Mengu Hill and mineralisation is associated with altered volcaniclastics in contact with ironstone and carbonaceous shale. The results for a further six trenches are pending. On receipt, a geological interpretation will be completed prior to a motivation for a first phase of drilling.

Rhino-Agbarabo

Work continued on the Rhino-Agbarabo area. Drilling has defined a plus 4g/t, 25 metre diameter rod shaped zone of mineralisation at Rhino and reconnaissance work at Agbarabo has identified a further two high grade rods. Mineralisation remains open and will be further tested in Q3.

+ As previously reported, following the introduction and adoption of IFRS 11 Joint Arrangements, the group changed its accounting policy on joint ventures from 1 January 2013 with prior periods restated accordingly. Refer to 'Consolidated statement of comprehensive income (impact of accounting policy change)' for details.

+ As previously reported, following the introduction and adoption of IFRS 11 Joint Arrangements, the group changed its accounting policy on joint ventures from 1 January 2013 with prior periods restated accordingly. Refer to 'Consolidated statement of financial position (impact of accounting policy change)' for details.

These results are presented as the second quarter report of 2013. They have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS) on a basis that is consistent with the accounting policies applied by the group in its audited consolidated financial statements for the year ended 31 December 2012 except for the change in accounting policy on joint venture accounting, and which will form the basis of the 2013 annual report. No other new or amended accounting standards effective for 2013 have had a significant impact on the group. This announcement has been prepared in compliance with IAS 34 - Interim Financial Reporting. These results do not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the annual report for the year 31 December 2012, and any public announcements made by the group during the reporting period.  While the information included in this announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The auditors' report for the year ended 31 December 2012 was unqualified and did not include references to any matters which the auditor drew attention to by way of emphasis without qualifying their report.

Following the introduction of IFRS 11 Joint Arrangements, the group was required to change its accounting policy on joint ventures from 1 January 2013, with prior periods restated accordingly. Refer to 'Change in accounting policy - Accounting for investments in equity accounted joint ventures' in this report for details including a reconciliation to the results presented under the previous accounting policy. The group's share of its joint ventures have been disclosed as a single line item as 'total investments in joint ventures' measured at the aggregate of the carrying amounts of the assets and liabilities that had previously been proportionately consolidated (previously shown on each line of the statement of financial position) at 1 January 2011, excluding minorities, together with the group's subsequent share of profits and losses of the joint ventures, its share of other comprehensive income and expense, additional investment funding less joint venture dividends.

Property, plant and equipment at cost increased by US$136.9 million for the year ended 30 June 2013. This can be mainly attributed to capital expenditure at Loulo on decline developments at the Yalea and Gara underground mines. The group's capital commitments for the next year (including its share of its equity accounted joint ventures) at 30 June 2013 amounted to US$131.4 million with the majority relating to Kibali (US$68.0 million) and Loulo (US$56.6 million).

Investments in equity accounted joint ventures reflect the group's share of its equity accounted investments, mainly in Kibali as well as its asset leasing joint ventures. Other investments in joint ventures reflect the group's loans advanced to RAL 1 Limited, one of the group's asset leasing joint ventures. The total investment in joint ventures primarily represents the original cost of acquiring Kibali, subsequent funding of the Kibali capital expenditure and the group's interest in leasing assets. There is no cost attributed to Morila as Morila has repaid its capital and is paying regular dividends. The increase of US$113.5 million in total investments in joint ventures mainly reflects funds advanced to Kibali during the quarter for the construction of the Kibali project which is substantially included within the joint venture's underlying balance sheet as property, plant and equipment and cash.

The increase of US$34.3 million in inventories and current ore stockpiles is primarily a result of the increase in ore stockpiles at Tongon and Gounkoto in line with the mine plans, an increase in stores consumables at Loulo due to increased demand, as well as an increase in gold on hand balances.

The increase in trade and other receivables of US$13.9 million since 31 December 2012 is substantially due to an increase in recoverable VAT balances at Loulo, partially offset by lower gold debtor balances at Loulo compared to 31 December 2012, due to the timing of gold shipments. The group had received claims for various taxes from the State of Mali totalling US$86.2 million, in respect of the Loulo, Gounkoto and Morila mines. Having taken professional advice, the group considers the claim to be wholly without merit or foundation and is strongly defending its position, including following the appropriate legal process for disputes within Mali. Both companies have legally binding mining conventions which guarantee fiscal stability, govern the taxes applicable to the companies and allow for international arbitration in the event a dispute cannot be resolved in the country. Management continues to engage with the Malian authorities at the highest level to resolve this issue. During the quarter, Loulo submitted a request for arbitration at the International Court of the Settlement of Investment Disputes against the State of Mali in relation to certain of the disputed tax claims. It is expected arbitrators will be appointed over the next quarter and whilst a date for the formal hearing is still to be announced it is likely to occur during 2014. No provision is made in respect of the claim amounts.

The decrease in cash of US$329.1 million since 31 December 2012 largely reflects the group's continued investment in capital expenditure in its subsidiaries, additional investments in joint ventures to fund capital expenditure, especially at Kibali, dividends paid to shareholders (US$46.1 million), as well as the State of Mali's portion of the Gounkoto dividends (US$17.0 million) which were paid in March and May 2013 respectively.

The company has entered into a US$200 million unsecured revolving credit facility with HSBC and three other banks. The interest rate is libor plus 1.50% at the lower end of the leverage grid. The facility matures in May 2016. Based on the company's current cash resources and facilities, projected operating cash flows and capital expenditure, the company is confident it will be able to meet its obligations at the prevailing gold price.

The decrease in deferred taxation of US$5.7 million year on year mainly relates to a deferred tax release on the Yalea capitalised stripping cost at Loulo due to mining which occurred during the quarter.

Trade and other payables decreased by US$23.1 million, mainly as a result of the timing of settlement of creditors.

Current tax payable of US$19.0 million increased by US$6.4 million and includes a corporate tax charge of US$3.8 million related to Gounkoto, following the cessation of the tax holiday on 31 May 2013. Tongon benefits from a five year tax holiday from the start of production in December 2010.

+ As previously reported, following the introduction and adoption of IFRS 11 Joint Arrangements, the group changed its accounting policy on joint ventures from 1 January 2013 with prior periods restated accordingly. Refer to 'Consolidated statement of cash flow (impact of accounting policy change)' for details.