Welcome to the Randgold Resources Limited conference. (Operator Instructions). At this time, I would like to turn the conference over to Dr. Mark Bristow and Philippe Lietard. Please go ahead.

Hello, this is Philippe Lietard, and I’m sitting today in Washington DC. Good morning to our participants in North America and good afternoon to those in Europe and the U.K. and thank you again for joining us for this teleconference of the past quarter’s result. I am glad to be with you all again this quarter, and hear your queries and comments, measure your interest in our Company, and to keep us abreast of what interests and concerns you. I’ll be handing over shortly to Mark Bristow, who will take you the results in detail, but I’d like to set the scene by saying it has been a really outstanding performance by the team in the face of very challenging circumstances. If you look at quarter over the quarter, you will see that though we were rigorously tested, we still managed to tick all the right boxes. At Loulo, completion of the second phase of the plan progressed rapidly, and the mine produced a robust operational performance in its first quarter. At the same time, plans for the underground operation at Yalea were finalized, and work for this development will start shortly. Morila was back on track as a prolific cash generator, and we moved back into the Cote D’Ivoire with a view of revitalizing our Tongon project. Also, our operation teams are active across the broad spectrum of East and West Africa’s gold fields. Of course, the bottom line for the quarter is a healthy one, at a time when many gold companies are not making profit, despite the high gold price. All in all, then, a very good showing by the team, who have again demonstrated their capacity for dealing successfully with the demands of a dynamic business in a very complex industry. With that, I’ll hand you over to Mark.

Thank you, Philippe, and again, good morning to both Americas and good afternoon to Europe and the U.K. We will be posting the script, the script that I presented to the market this morning on our website. We have a live webcast currently on the website. So anyone who wants to go to the detail, I’ll refer you to our website, and I will try and stick to the highlights of my presentation this afternoon. For those of you who have access to a computer, we will be following the slides which are posted on the website. The first set of slides are on our highlights. The key is just to reinforce what Philippe said, and that is in many ways, we did much better than expected. The past quarter was a challenging quarter, but as the results have shown, the team did a great job all round. Particularly at Loulo, we managed to ameliorate against the lower grades which we had indicated would have to be processed this quarter by getting the throughput up on the mines. We’ve made excellent progress with the work towards commissioning the crusher circuit and we have tidied up just about everything that was outstanding on Phase I. So we are really comfortable that Phase I now is substantially complete. In addition to that, we made excellent progress with the underground work, and we expect to start excavating the portal during July. The target of reaching all in the underground development towards the end of the year still stands. Morila is solidly back on track; for the first time it reached its designed throughput. We also, as Philippe said, went back into the Cote D’Ivoire. We have re-established our offices in the northern part of the country. We’ve always had offices in Abbiegen and…

(Operator Instructions) Our first question comes from Steve Sheppard of JP Morgan.

Thank you, good afternoon Mark, gentlemen. I’m always reminded that it was barely two years ago you hosted a visit to the Loulo site which was nothing more than an exploration camp. I think you have done rather well. Having said that, could I ask you, Mark, please, if you could just refresh some guidance for us? Could you just remind us what you expect Loulo’s cash costs to level out at once you’ve reached steady state? Maybe talk to us a little bit about the production guidance as far as the next couple of quarters is concerned, and perhaps update us on your CapEx expectations for the Group. Finally, would you like to just look into the crystal ball and tell us where you’d like to see your production three years down the track?

Sure, no problem. Just to remind you of our guidance. Our guidance at the beginning of the year was 400,000 attributable ounces at $270 an ounce. That meant 250,000 ounces from Loulo, and 540,000 or thereabouts; 500,000 ounces from Morila. We’re ahead of that guidance already. We’re on line at Loulo, that’s 65,000 ounces for the first quarter, and we have as our target to get to 125,000 at mid-year. We should do between 60,000 and 65,000 this next quarter. That really will be dependent on how quickly we can get the crusher, the main crusher working, but that’s all holding up. We’re forced to feed slowly lower ore grade because we have to stick to the softer ore. We expect that the second half of the year will be better than the first half, and so we have no reason to change our guidance to the market for the year’s production there. In fact, if everything goes according to the plan, and we can deliver on the higher throughputs that the management has achieved this first quarter, we run the risk of being a little better. Morila again the recoveries are encouraging. We gave the guidance of at least 500,000 ounces. We’re certainly doing that at this stage. We’ll have an average quarter this quarter. We’re going to have slightly better quarters later on in the year. At this stage it looks as though we could go a little bit more, not as much as 10% but maybe 5%, above the 500,000 and we’re happy with the cost. The cost has come down nicely. So on balance, we’re still comfortable that we’ll get, on a consolidated basis within our guidance, and if we carry on and get through this quarter, this is the challenging quarter, we run the risk of beating it, Steve.

Thank you. And the CapEx, Mark?

The capital, we have spent some money. We’re still chalking up all the expenditure on Loulo, completing the MDM work. But the underground capital at the moment, the authorized capital is $20 million for the year, and we’re on track with that. The variability in that is a couple of million either way is for any additional reserve drilling that we might want to do, and we’re pretty excited about some of the work that’s coming out at Loulo. So that might increase the expenditure. We’ve gone about $10 million Roger, do you just want to catch up with the Loulo work?

Yes, we estimate we’ve got about $10 million left to spend on getting the rest of the plant, and that includes the Phase II crushing circuit at Loulo.

And that would include the extra tankage as well? There’s some expansion coming through.

The extra tankage, and that also includes the change we’re doing to the tailings.

And that last question you have, what would you like to be producing in three years time?

Yes, we know exactly what we’d like to be doing. In our current plan, strategic plan, we get up towards the 500,000, 480,000 ounces. Steve, the exciting thing is that our work on Yalea, we’ve upgraded the throughput out of Yalea, and that’s why we gave a profile of ounces last quarter which shows that target. The indications are that Yalea can sustain at much higher feed than we originally planned. We want to now finish the work on Loulo underground, and on that basis, if we can jack up -- because all our plans have been worked on 200,000 tons a month. If we can lift Loulo up to 300,000 tons a month, it has a material impact on ounces produced, and it would certainly ameliorate the drop-off currently planned for Morila. There’s upside in that, as I indicated, if we decide to push back a little bit and take a slightly bigger cut in the Morila mine. Then if we’re able to keep the Tongon on track, that has a positive impact as well. So clearly it would be really nice for us to beat $500 an ounce. The very exciting position we have at the moment is changing the gold price in planning in Morila changes the reserve ounces. Changing the gold price planning in Loulo currently, because we have underground extension, doesn’t change the reserves because our underground actually, it gets rapidly to the point where the underground is cheaper or lower cost than the open pit, but it makes more money. We've always focused on profitability and that's our intention, is to keep that focus and to deliver the profitability that we've been talking about for 10 years.

Thank you very much.

Thank you Sir. Our next question comes from Victor Flores of the HSBC. Please go ahead.

Yes thank you. Hi Mark. Could you give us sense of whether you'll continued to produce at this higher level at Loulo during quarter and whether you actually have enough soft ore to make it? What kind of a cushion do you have on the soft ores perhaps is the better question?

Vic we've got now two mobile crushers crushing the transition ore. Today a third one should arrive because you've seen that we've beaten our throughput designs and so. That's the big thing, is we've taken probably 25% of hard ore over the last two months in the feed and we've maintained very high throughput. Going forward the real issue, as you've rightly picked up, is the ability to feed material. What we're doing at the moment is with the third crusher we can be sure about the size. We're looking at bypassing the oxide roll crusher because we've already crushed it to the right size, and feeding it straight on to the belts in to the mill which will allow us to stay at a fairly high speed rate and stop the stoppages that we get which is impacting on our throughput. Going forward after that we're starting to believe that we might be able to plan on a 220,000 tons a month throughput; even after the hard rock circuit is commissioned because they are things that really work very well. That's why we've said we'll have a wait and see. We've made some changes to some of these processes. We've had to pick up on some bad design points that we've had to fix. We've been busy fixing those. Once we've seen the performance we will then make a decision on expansion; taking it above that. The cost of doing that is somewhere between $10 million and $20 million That's something that certainly pays handsomely if you do it. You've just got to be comfortable you've got long-term feed.

Okay thanks. So essentially what you're saying is that with the supplemental crushing you have already plus what's coming on the site, you should be able to carry on without interruption?

Yes, we're shooting for 60,000 ounces, which will take us to 125. With a bit of luck we'll duplicate this quarter, and it's really throughput.

Second question goes to this supplemental crushing that you have on site. How much is that adding to your profits and costs on a per ton basis?

We've been working on that Vic. It's between $3 and $4 a ton. Over the last two quarters we haven't used -- and we're going to have about a 100,000 tons a month crushed, so the rest we can see. So, you're looking on that basis it's $5 for that 100,000 and you work it out. So, it's a bit variable at this stage. We've got one crusher we own. We are paying $5 a ton for another crusher. We've got some rehandle costs.

Okay and then just finally, if a decision is made to expand the plant when do you think that decision will be made and how long would that take to bring on line?

It will definitely be this quarter. We've already committed to expanding the tankage. We talked about that awhile ago, just that MDM doesn't get around to effecting it and we're busy with that now. The capacity of the plant milling, tankage, all that sort of stuff can handle the 300,000 tons. It's really managing the front end of the plant which is always the bottleneck. That's the way we design our plants. And it needs to be tied in with our decisions on how we're going to crush the underground ore. As soon as we are comfortable that the underground design will allow that feed to be long term or at least medium term, we'll make the decision, because certainly the open pits can handle it. We just don't want to run out of ore too quickly and have a big gap. So we'll make it this year. Whether it's next quarter or the following quarter is something that we'll tell you next quarter. I guess we’ll tell you next time we meet. We've already done the numbers, Vic and the options are we put in more crushers at Yalea and so that Loulo feed can go to the crusher on the site. We are going to be putting in an overland conveyer from Yalea so that's the one option. The other option is that we put an extra crusher, secondary and tertiary crusher in the current circuit. The third option is that we introduce a fourth phase of crushing in the current circuit and that is I think the preferred route at the moment. It's easier, it's a little more expensive but it's really reliable. The others, it's all a bit of test work we have to do. I don't know if that's making sense but it's very dynamic. We all are quite comfortable about that decision. We really need to wait for the final detailed designs of the Loulo 0, which then we'll tick off our box as far as long term feed goes.

Okay, great. Thank you, Mark.

Our next question comes from Patrick Chidley of BJM. Please go ahead.

Hi Mark. Just following up from Victor's question on the plant expansion. To go to 300,000 tons a month I just wanted to confirm that you're saying the open pits can handle that. Is that something that can be turned on pretty quickly? Could we see that rate next year if you decide to go ahead, if you decide that the underground will allow that to continue long term?

I think even if we could sign off on 200,000 tons consistently out of the underground and the schedules show the buildup would support that, we could at any time step on the gas from the open pit. But you don't want to step on the gas on the open pit and then run out of ore because you haven't got the buildup in the underground. So, the indications are Patrick that we should do 220 through the hard circuit which is 10% above our current plans, comfortably. You know we might well get higher because just to explain to everyone, currently we're not running the twin stream. We're running one belt with the series and we're achieving 250. when we bring in the hand rock we commission both stages, both streams and we run the three stages of crushing and the mules in parallel. So we're certainly expecting to do better than design and we need to see exactly how that settles down. That will also govern our decision. That we should see early in the next quarter.

Right, but you wouldn't need to wait for the underground production to actually begin?

No, no, no, we've made that decision. At this stage we are very comfortable on the 200,000 ton a month profile. We've staggered the Loulo 0 yearly build up because Yalea is a lot bigger than our original feasibility. If we wanted to we could bring Loulo a little forward and increase the build up in the underground ore feed, because we're consuming the open pit.

But you could actually put more trucks coming through out of the open pit?

Of course we made that decision. We'll start implementing it at the end of the year.

Okay then, so that's potentially a big boost in earnings next year and onwards?

Yes.

I just wanted to ask about the nature of this Loulo intersection you've got there, Loulo 0, 23 meters, 8lb per ton.

I'll tell you about it. If you've been to the site, Loulo's got a couple of flexures in it, in the main ore body that we've drilled out and you'll see there's folds of hard grade material. In fact we've drilled a deep hole that's aimed to test just one of those folds at depth. So we're busy with that now. The big intersection is certainly a duplicated reef, it's the folded ore body of 22 meters of consistent mineralization. We've now got to understand exactly the structure around it. We'll drill it out. So what's exciting for us is this is a potentially another one of these phases that we see regularly in the known area that we've drilled out. If you go to the northern one, the one that's 300 meters north, or 250 meters north, the interesting thing there is that the intersections nearer surface have been very poor in formalization. You can see the whole body, but it's not formalized and the grades are low. This intersection is much more tourmaline, very significant sulfides and it's high grade. So again, as we saw in Yalea, there are phases and you can't write off an area because you get one low grade and I think that's the real attraction here. The thing about Loulo, awhile back I think it was two years I said, the thing about Loulo is its structure, you just get on the structure and you walk down and drill a couple of holes. What we've learnt here is you have to drill these structures. As soon as you get a structure that's got gold mineralization, even if it's one or two grams, it's important to get some holes in and you can't just drill one hole. So we've got Loulo 1, Loulo 2, Loulo 3. We've got 40 odd targets and we've systematically been working through those. P64 is part of our ones that are really split up, but there are others that have very good intersections. Loulo 3, for instance, has got some very good intersections and we've drilled a couple of holes there, but we really haven't gone and exhausted it. So we're not short on targets.

The last question relates to one of those targets, Faraba reports another pretty good bunch of holes that show wide width of mineralization. Are these in-fill holes or are these on the same lines that you had previously?

They were just deeper holes, Patrick, and we've got a big gap which we're busy doing a ramp program across. You can see it on the diagram. And then we've finished I think two of the four diamond holes. No, we finished three. The one hole has intersected a fault. The other two have intersected mineralization. We haven't got the results back from that. As we said last time, we've got a frame now, a decent frame. We are busy now, we wanted to put the diamond holes in to understand because they're all RAB up to now. Understand what we're dealing with and then we will go in and really up the ante and do a bit more drilling. We have the same with P64. It's producing some very interesting numbers. It's very complex structurally. We had a gap in the structure. We've drilled a bore hole. Certainly I think we believe that it's explaining the interpretation better. We've got to finish off on that initial diamond hole and then we'll re-look at it and I'm sure we'll have some more information to share with you guys next time we talk.

Do you think these two will potentially be in a resource category by the end of the year? Difficult to say?

I guess if we were listed in Toronto they might well be. But as you know we’re not too big on that sort of thing. We don't like to have to take things off the table. I think if they got their mind around the structure and we were happy with the framework, then we would start telling you that. We've certainly given you an indication that -- the big thing that will make Foraba work is if we're constantly getting this higher grade zones in the big wide zones. It makes a big difference to the economics and we need quite a few more holes to give us that comfort. On P64, it's a very different ore body. It's got very rich and it's got a big iron phase in it. It's very magnetic. We actually got to do an magnetic survey over it, just to try and understand it. But it's very magnetic and that hopefully will help us unravel the structure. And we've got others. We announced a bore holes north east of Yalea last quarter, which is also on a sort of horse tail structure and we've been following that up with some trenching. I think if we wanted to come and give you lots examples of good intersections as you see in our exploration slides, there are lots of those. The big challenge is you got to get it together and we pride ourselves in the fact that even when the market -- we come out and said look we've got a mine at Loulo, the best undeveloped project and we had a few eyebrows raised, we were able to deliver on it. We're pretty serious in keeping that. Right now I think the question that Steve and Vic answered is key to us. That is, all the prospecting in the world is not going to develop extra profits from the current gold price. What we're investing in is our exploration programs the future. The benefits of the current gold price is to get the expansion decision made and get our operations running properly and keep our costs down; we have two different focuses.

Great, okay, well thanks very much Mark.

Our next question comes from Howie Flinker of Flinker and Company.

Hi Mark.

Hi Howie.

First it should be said that Morila would not be operating at proper capacity without you guys. You've done it at the same time as you've tried to chase down a bankrupt supplier; two difficult jobs.

Thank you.

You're welcome. I have two questions. Receivables, are they essentially receivables from the Malian Government and the contractor who stiffed you?

Yes, you've hit it on the nail. $21 million from the Malian Government is VAT refund and fuel duties. We've been working with the Malian Government to have a repayment program and we've recently, because we have started to pay tax, we've actually been able to offset some of that. So we've brought it down this quarter. The other, the $12 million which we've explained from MBM, and the remainder is really about three days of gold in process, or gold shipment, that we haven't been paid for. The fact that we've got two operations is a little more than when we had one.

As to the receivables from the Malian Government, can you continue to offset what they owe you against the taxes you owe them?

Howie, we're working on a written formal agreement with them at the moment and that's exactly the principle we're working on and it looks like we should be able to get something settled this quarter.

Oh good. And second, I see your cash flow for the quarter approximated $21 million give or take if you add back the non-cash portion of the losses mark to market. Shouldn't that cover all that you need to spend at Loulo even if you expanded starting the end of this year?

Yes. As you see our cash flow improved.

It did, by about $5 million or so.

We spent $7.5 million on exploration and we spent some of the capital. So we covered our capital requirements plus the MDM stuff, plus we saw added to our kitty. So, we're in good shape, Howie. I think one thing we're very comfortable about is that we are certainly able to cover the underground capital costs and also Tongon. Even if we started Tongon at the end of the year, we are in good shape.

Well if you started Tongon at the end of the year, you'd probably have to dig in to some of your cash balance would you not?

Yes sure, but we wouldn't go to the market.

No of course not. That $17 million of additions to property, plant and equipment, does that include that $7 million of exploratory expense?

We expense that.

Oh yes, I forgot. That's it. Thanks.

Okay.

Gentlemen we have no further questions would you like to make some closing comments?

Well thank you very much ladies and gentlemen for making the time. As always, we're always at the end of a phone if you'd like to pick up on any specific questions. Rog, I'm sure you've got his details, same with me. I will be going through Europe. I'm in France tomorrow and Switzerland the day after and then we'll be doing a meeting program in London; and then on to the New York Gold Conference over the week-end and we will be in New York Monday, Tuesday and Wednesday, we're having a lunch. If you want to attend and you're in New York you can give Kathy Duplessier a call or just drop an email to our website and we'll pick up on it. Thanks again for your attendance and speak to you next time.

Thank you very much Sir. On behalf of Randgold Resources Limited that concludes this afternoon’s conference. Thank you for joining us. You may now disconnect your lines.