Randgold Resources Loulo Under Construction and Syama Sold as Randgold Consolidates


JERSEY, Channel Islands, April 28, 2004 (PRIMEZONE) -- London (LSE:RRS) and Nasdaq (Nasdaq:GOLD) listed Randgold Resources sold one gold mine and started building another in the first quarter of this year as it continued to consolidate its project development and exploration presence in Africa.

The Company today reported a profit from mining of US$7.8 million for the three months to March, down from the previous quarter's US$12.7 million as a result of lower production at its Morila joint venture. Production at Morila was impacted negatively by downtime related to the commissioning of a plant expansion programme. While mining costs were up with new contract prices coming into effect, total cash costs of US$185/oz were below forecast. The net loss for the quarter of US$4.9 million is mainly attributable to a non-cash loss of US$5.8 million on the mark-to-market valuation on the last day of the quarter on the forward sales taken out as part of Loulo's project financing.

Results for the quarter do not include the US$10 million plus royalties netted by the recently announced sale of Randgold's 80% stake in the dormant Syama mine to Resolute. Completion of the sale transaction is expected by mid-May.

Randgold has kept Syama on care and maintenance since 2002, when the collapse of the gold price made it unprofitable.

At Morila, the expansion programme has been mostly completed after a series of delays due mainly to supply logistics. The programme has been designed to offset the anticipated reduction in the grade by boosting plant throughput from 250 000 tons per month to 350 000 tons. Since the commissioning of the secondary crusher installation on 17 March there has been a marked improvement in mill throughput and if the upward trend is sustained, the Company believes that the mine will still meet its production target for the year of 535 000 ounces.

In the meantime, the search for more ounces at Morila is continuing, with the first of nine new targets around the mine being drill-tested.

Construction is under way and on track at Randgold's new mine at Loulo, with the basic infrastructure scheduled for completion before the onset of the rainy season in July. The mine is due to go into production in mid-2005.

Loulo's resource base was increased from 4.26 million ounces to 5.32 million ounces during the quarter as a result of a deep drilling programme which continues to prove the extensions of the orebodies at depths below the two open pits. A prefeasibility study has been commissioned to investigate the potential for two new underground mines at Loulo in addition to the two opencast mines currently being developed.

During the quarter, exploration work was accelerated on Randgold's properties in West and East Africa. Aggressive drilling programmes are continuing at Morila and Loulo, and site preparation is well advanced for drilling to start in the Morila region as well as Senegal. Holdings in Tanzania have been consolidated and new targets developed, and a new permit has been granted in Burkina Faso.

Following its recent establishment of a presence in Ghana, Randgold has entered into a joint venture agreement with local miner Adansi Asaasi to explore a licence covering prime ground bordering on Ashanti's Obuasi mine. It has also concluded a partnership deal with longtime associate Inter-Afrique to identify and exploit opportunities in Ghana's gold mining sector.

"Apart from the Morila expansion programme delays, it's been a rewarding and productive quarter," chief executive Dr Mark Bristow said today.

"Our excitement about the new mine at Loulo is being heightened by the great results coming out of the deep-drilling there. The prospect of an underground operation, which will lift Loulo into a much bigger league, is becoming increasingly tangible. The Syama story has had a happy ending: we preserved a national asset for Mali, found a new owner to operate it, and realised some value for ourselves. At Morila, we're working with our joint-venture partners to ensure that the mine meets its targets.

"In line with our belief that value creation in the mining industry can best be achieved through discovery and development, we've stepped up our exploration programmes, and we're investigating some very interesting opportunities in our existing areas of operation as well as in Ghana, which is a new front for us."

At the Company's annual general meeting earlier this week, shareholders approved a motion, subsequently approved by the court, which clears the way for dividend payments to start by expunging accumulated losses through the share premium account. A move to improve the tradability of Randgold Resources' stock further through a two-for-one share split also got the green light.

*********FORMAL ANNOUNCEMENT***********

RANDGOLD RESOURCES LIMITED

Incorporated in Jersey, Channel Islands

Reg. No. 62686

LSE Trading Symbol: RRS

Nasdaq Trading Symbol: GOLD

REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2004

* Sale of Syama to net US$10 million plus royalties (before fees)

* Morila expansion nears completion and shows signs of improved throughput

* Construction of Loulo mine on schedule

* Successful drilling programme leads to resource upgrade at Loulo

* Exploration budget increased following significant exploration success

* New Ghana JV secures prime ground next to Obuasi Mine

* New targets identified in Senegal, Morila region and Burkina Faso

* Exploration produces positive results in Tanzania

Randgold Resources Limited has 29.3 million shares in issue as at 31 March 2004

CONSOLIDATED INCOME STATEMENT



                  Unaudited   Unaudited   Unaudited
                    quarter     quarter     quarter
                      ended       ended       ended
                     31 Mar      31 Dec      31 Mar

 US$000                2004        2003        2003

 Gold sales revenue  15 274      18 054      31 586

 Cost of sales

 Production costs     8 768       6 035       6 521

 Transport and
 refinery costs          52          76         115

 Transfer to deferred
 stripping           (2 388)     (2 062)       (373)

 Cash operating
 costs*               6 432       4 049       6 263

 Royalties            1 079       1 261       2 207

 Total cash costs*    7 511       5 310       8 470

 Profit from mining
 activity*            7 763      12 744      23 116

 Depreciation and
 amortisation         2 421       3 570       2 313

 Merger transaction
 costs+                   -       2 401           -

 Exploration and corporate
 expenditure          3 016       3 077       2 810

 Profit from
 operations*          2 326       3 696      17 993

 Interest received      292         229          71

 Interest expense      (465)       (445)       (542)

 (Loss) on financial
 instruments**       (5 847)     (1 996)       (276)

 Other expenses      (1 174)     (1 265)       (219)

 (Loss)/profit on
 ordinary activities before
 taxes and minority
 interests           (4 868)        219      17 027

 Income tax               -           -           -

 Minority shareholders'
 interest                 -           -          79

 Net (loss)/profit   (4 868)        219      17 106

 Basic earnings per
 share (US$)          (0.17)       0.01        0.61

 Fully diluted
 earnings per
 share (US$)          (0.17)       0.01        0.61

 Average shares
 in issue (000)      29 262      29 099      27 821

The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

* Refer to pro forma information provided on page 3.

+ Expenses incurred on the Ashanti Goldfields proposal.

** Based on a gold price of US$420/oz at 31 March 2004

CONSOLIDATED CASH FLOW STATEMENTS



                       Unaudited           Unaudited
                        3 months            3 months
                           ended               ended
                          31 Mar              31 Mar

 US$000                     2004                2003

 Net cash generated
 from operations             564              21 134

 Net cash utilised in
 investing activities     (8 479)             (1 285)

 Net cash generated by
 financing activities

 Ordinary shares issued       13               1 712

 Movement on financial
 instruments              (1 308)                  -

 Decrease in long-term
 borrowings                 (381)               (556)

 Increase in bank
 overdraft                   185                 167

 Net (decrease)/increase
 in cash and cash
 equivalents              (9 406)             21 172

 Cash and cash equivalents
 at beginning of period  105 475              59 631

 Cash and cash
 equivalents at end
 of period                96 069              80 803


 CONSOLIDATED BALANCE SHEET

                   Unaudited    Unaudited    Audited
                          at           at         at
                      31 Mar       31 Mar     31 Dec
 US$000                 2004         2003       2003

 Assets

 Cash and cash
 equivalents          96 069       80 803    105 475

 Restricted cash**     3 888        4 533      3 882

 Receivables          14 219       10 079     15 196

 Inventories          16 544       11 809     17 165

 Total current
 assets              130 720      107 224    141 718

 Property, plant
 and equipment

 Cost                183 668      169 818    175 195

 Accumulated
 depreciation       (104 794)     (94 417)  (102 373)

 Net property,
 plant and equipment  78 874       75 401     72 822

 Other long-term
 assets               13 090        7 775     10 885

 Total assets        222 684      190 400    225 425

 Bank overdraft        1 735        1 337      1 550

 Accounts payable
 and accrued
 liabilities          21 199       18 239     23 557

 Total current
 liabilities          22 934       19 576     25 107

 Provision for
 environmental
 rehabilitation        5 946        5 044      5 962

 Liabilities on
 financial
 instruments          13 027        5 777      8 488

 Long-term loans       7 487       18 890      7 723

 Loans from outside
 shareholders in
 subsidiaries            958        1 251        958

 Total long-term
 liabilities          27 418       30 962     23 131

 Total liabilities    50 352       50 538     48 238

 Shareholders'
 equity              172 332      139 862    177 187

 Total liabilities
 and shareholders'
 equity              222 684      190 400    225 425

** Note: This is the amount relating to the N.M. Rothschild & Sons Limited debt service reserve account. The amount is held in escrow for the partial repayment of the Morila project loan.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



                            Number
                                of    Share     Share
                          ordinary   capital  premium
                            shares    US$000   US$000

 Balance -
 31 Dec 2002            27 663 740    2 766   190 618
 Jan - Mar 2003

 Net profit                               -         -

 Movement on cash
 flow hedges                              -         -

 Share options
 exercised                 471 926       47     1 665

 Balance -
 31 March 2003          28 135 666    2 813   192 283

 Balance -
 31 Dec 2003            29 260 385    2 926   200 244
 Jan - Mar 2004

 Net loss                                 -         -

 Movement on cash
 flow hedges                     -        -         -

 Share options
 exercised                   3 000        -        13

 Balance -
 31 Mar 2004            29 263 385    2 926   200 257


                                    Accu-
                        Other     mulated       Total
                     Reserves      losses      equity
                       US$000      US$000      US$000

 Balance -
 31 Dec 2002          (8 293)    (66 106)     118 985
 Jan - Mar 2003

 Net profit                -      17 106       17 106

 Movement on cash
 flow hedges           2 059           -        2 059

 Share options
 exercised                 -           -        1 712

 Balance -
 31 March 2003        (6 234)   (49 000)      139 862

 Balance -
 31 Dec 2003          (7 403)   (18 580)      177 187
 Jan - Mar 2004

 Net loss                  -     (4 868)       (4 868)

 Movement on cash
 flow hedges               -           -            -

 Share options
 exercised                 -           -           13

 Balance -
 31 Mar 2004          (7 403)    (23 448)     172 332

PRO FORMA INFORMATION

The Company uses the following pro forma disclosures:

* Total cash costs per ounce are calculated by dividing total cash costs, as determined using the Gold Institute Industry Standard, by gold ounces produced for all periods presented.

* Total cash costs as defined in the Gold Institute Industry Standard, includes mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpile, transfers to and from deferred stripping and royalties. Total cash cost per ounce should not be considered by investors as an alternative to operating profit or net profit attributable to shareholders, as an alternative to other IFRS or US GAAP measures or an indicator of the Company's performance. The Company believes that total cash cost per ounce is a useful indicator to investors and management of a mining company's performance as it provides an indication of a company's profitability and efficiency, the trends in costs as the company's operations mature, a measure of a company's gross margin per ounce, by comparison of total cash cost per ounce to the spot price of gold, and a benchmark of performance to allow for comparison against other companies.

* Cash operating costs are defined as total cash costs excluding royalties.

* Total cash operating costs per ounce are calculated by dividing cash operating costs by gold ounces produced for all periods presented.

* Profit from mining activity is calculated by subtracting total cash costs from gold sales revenue for all periods presented.

* Profit from operations is calculated by subtracting depreciation and amortisation charges, merger transactions and exploration and corporate expenditure from profit from mining activity.

RECONCILIATION TO THE US GAAP

The interim condensed financial statements presented in this report have been prepared in accordance with International Financial Reporting Standards (IFRS), which differ in certain significant respects from Generally Accepted Accounting Principles in the United States (US GAAP). The effect of applying US GAAP to net income and shareholders' equity is set out in the following table:



                                 3 months   3 months
                                   31 Mar     31 Mar

 Reconciliation of net income        2004       2003

 (US$000)

 Net (loss)/income under IFRS      (4 868)    17 106

 Share option compensation
 adjustment                         1 022        195

 Provision for rehabilitation           -          -

 Net (loss)/income under US GAAP
 before cumulative effect of change
 in accounting principle           (3 846)         -

 Cumulative effect of change in
 accounting principle*                  -        214

 Net (loss)/income under US GAAP   (3 846)    17 515

 Movement in cash flow hedges
 during the period                      -      2 059

 Comprehensive (loss)/income under
 US GAAP                           (3 846)    19 574

 Basic earnings per share under
 US GAAP (US$)                      (0.13)      0.62

 Fully diluted earnings per share
 under US GAAP (US$)                (0.13)      0.62


 Reconciliation of Shareholders'
 equity (US$000)

 Shareholders' equity under IFRS   172 332   139 862

 Provision for rehabilitation            -         -

 Shareholders' equity under
 US GAAP                           172 332   139 862


 Roll forward of shareholders'
 equity under US GAAP

 Balance as at 1 January 2004      177 187   118 771

 Net income under US GAAP           (3 846)   17 515

 Movement on cash flow hedges            -     2 059

 Share options exercised                13     1 712

 Share option compensation
 adjustment                         (1 022)    (195)

 Shareholders' equity under
 US GAAP
 at 31 Mar 2004                    172 332   139 862

* The cumulative effect of change in accounting principle relates to the implementation of FAS 143 "Accounting for obligations associated with the retirement of long-lived assets" on 1 January 2003 which aligns US GAAP to IFRS.

ACCOUNTING POLICIES

The condensed financial statements in this report have been prepared in accordance with the Group's accounting policies, which comply with International Financial Reporting Standards and are consistent with the prior period.

The consolidated financial information includes the quarterly financial statements of the Company, its subsidiaries and the Morila joint venture.

Joint ventures are those investments in which the Group has joint control and are accounted for under the proportional consolidation method. Under this method, the proportion of assets, liabilities, income and expenses and cash flows of each joint venture attributable to the Group are incorporated in the consolidated financial statements under appropriate headings. Inter-company accounts and transactions are eliminated on consolidation.

No segmental information has been provided, as the source and nature of the enterprise's risks and returns are not governed by more than one segment.

FINANCIAL INSTRUMENTS

Morila

The financial instruments at 31 March 2004 held by the Morila company are the remainder of derivatives taken out as part of the project finance arrangements. Randgold Resources' attributable share is as follows:

* 38 956 ounces sold forward at a fixed price of US$275/oz over the period April 2004 to December 2004

* 13 788 ounces of call options purchased at a price of US$360/oz over the same period.

At present prices, the percentage of attributable production which is hedged is approximately 15% for the next nine months. After 2004, 100% of Morila's production will be exposed to spot gold prices.

Corporate/Loulo

As part of the Company's financing arrangements for the development of Loulo, Randgold Resources has secured some price protection. At 31 March 2004, 300 000 ounces had been sold forward at an average spot price of US$409/oz. The Loulo price protection has been done at a Randgold Resources level, short dated, and will be rolled down, longer dated, into the Loulo company once the project financing has been put in place, planned for completion at the beginning of the third quarter 2004. At that time, the longer contango will become effective which will enhance the spot price.

In addition to the above, the Company carried out a Forward Rate Agreement (FRA) as part of the hedge to fix the 4 year gold lease rate. An average rate of 1.67% for the four years was achieved.

Marked-to-market Valuation

Movements in marked-to-market valuations of financial instruments can be accounted for in two ways, either through the income statement or directly to reserves, depending on the nature of the instrument. The Morila instruments are accounted for mainly on a hedge basis i.e. are matched to production and movements on the marked-to-market valuation are therefore accounted for in reserves. The Loulo instruments are currently deemed speculative for accounting purposes and any marked-to-market movements have to be accounted for through the income statement. Once the instruments are rolled out in the third quarter of 2004, the instruments can then be deemed hedges and can be accounted for through reserves. The current negative impacts on the Company's income statement will then be reversed.

COMMENTS

Profit from mining activity* for the quarter of US$7.8 million was lower than the previous quarter's US$12.7 million. Ounces produced were 107 115 compared to 119 637 in the previous quarter. This is partly due to the mine plan which scheduled lower production this quarter and partly due to a decrease in throughput as the plant expansion was commissioned. In addition, mining costs were higher as the new contract prices became effective. Nevertheless, total cash costs were US$185/oz which was lower than the forecast given last quarter for the year of US$190/oz.

Production levels are scheduled to pick up later in the year with higher grade ore being accessed and higher plant throughput. Production for the year is still expected to be 535 000 ounces, as forecast last quarter.

After exploration and corporate expenditure of US$3 million, and depreciation of US$2.4 million, profit from operations for the quarter was US$2.3 million.

The loss on financial instruments of US$5.8 million is a non-cash item resulting from the mark-to-market valuation on the forward sales taken out as part of the Loulo Project financing. These have been taken out at the corporate level and are therefore currently classified as speculative for accounting purposes and as such are accounted for wholly through the income statement. More details are given in the Financial Instruments section.

The net loss for the quarter of US$4.9 million compared to the previous quarter net profit of US$0.2 million and the corresponding quarter in 2003 of US$17.1 million profit is mainly attributable to the lower revenue and negative adjustments on the value of financial instruments on the last day of the quarter.

The figures do not include profits from the sale of Syama which will be accounted for in the second quarter of 2004.

The main movements on the balance sheet are a decrease in the cash and cash equivalents mostly attributable to the financing of the Loulo capital project and an increase in liabilities on financial instruments which results from the mark-to-market valuation. The long-term loans are mainly the attributable share of Morila's project financing which will be repaid in June 2004. It is planned that the Loulo construction will be substantially financed by bank loans, with the Company's equity portion being spent first. The project financing creates gearing for the shareholders and allows the Company to preserve cash to finance its future growth.

OPERATIONS - MORILA



 Morila results

                   Quarter       Quarter       Quarter
                     Ended         ended         ended
                    31 Mar        31 Dec        31 Mar
                      2004          2003          2003

 Mining

 Tons mined (000)    6 605         5 955         5 957

 Ore tons

 mined (000)           887           956         1 223

 Milling

 Tons processed

 (000)                 795           842           830

 Head grade milled

 (g/t)                 4.9           5.0           9.8

 Recovery (%)         86.0          87.4          93.7

 Ounces produced   107 115       119 537       238 421

 Average price
 received (US$/ounce)  369           367           338

 Cash operating
 costs* (US$/ounce)    160            85            65

 Total cash costs*

 (US$/ounce)           185           111            88

 Cash profit

 (US$000)           19 408        31 860        57 790

 Attributable (40%)

 Ounces produced    42 846        47 815        95 368

 Cash profit

 (US$000)            7 763        12 744        23 116

* Refer pro forma information provided above

A new contract was concluded in the quarter with the mining contractor DTP who performed well achieving a 10% increase in tons mined compared to the previous period. The mine is also in discussion with the Union and the Government departments of Labour and Mining on questions relating to a productivity bonus.

As reported last quarter, the plant expansion commissioning was delayed into the quarter under review. Production throughput was down due to down time related to tying in the new sections of the plant which impacted on gold production. Recoveries were also impacted by the commissioning. Ounces produced were 107 115 compared to 119 637 in the previous quarter. The decrease is also partly due to the mine plan which scheduled lower production this quarter. Production levels are planned to pick up later in the year with higher grade ore being accessed and higher plant throughput forecast as a result of plant expansion. Production for the year is still targeted at 535 000 ounces as forecast last quarter.

The secondary crushing and cyclone cluster sections of the plant upgrades have now been commissioned and are starting to show increasing throughputs. The CIL tank commissioning is currently in progress, the purpose of which is to provide longer residence time to improve recoveries.

With the commissioning largely completed, production is expected to build up to budget levels. Costs were reasonably well controlled in the quarter, although increased to US$185/ounce due to lower throughput, higher contract mining costs and the write down of certain store items.

DISCONTINUED OPERATIONS - SYAMA

On 5 April Resolute Mining exercised its option to buy Randgold Resources' 80% interest in the Syama Mine, which has been on care and maintenance since 2002. In terms of the option, Resolute will pay Randgold Resources US$6 million and assume liabilities of US$7 million of which US$4 million is payable to Randgold Resources. At a gold price of more than US$350 per ounce, Randgold Resources will also receive a royalty of US$10 per ounce on the first million ounces of production from Syama and US$5 per ounce on the next three million ounces based on the attributable ounces acquired by Resolute. The closure of the transaction is subject to the finalisation of documentation in accordance with the Option Agreement. Completion is expected by mid-May and will incorporate a structured hand-over. Resolute has paid a non-refundable deposit of US$1.3 million. The balance will be paid on closure in mid-May.



 Syama income statement

                  Quarter        Quarter     Quarter
                    Ended          ended       ended
                   31 Mar         31 Dec      31 Mar

 US$000              2004           2003        2003

 Other expenses      (659)        (1 127)       (335)

 Loss on ordinary
 activities before
 taxes               (659)        (1 127)       (335)

 Income tax             -              -           -

 Net loss            (659)        (1 127)       (335)

The costs for the quarter represent on-going care and maintenance, overdraft interest and staff costs. Following the sale to Resolute, Randgold Resources income statement will no longer be impacted by Syama's costs. The assets of Syama have been largely written down to nil and therefore the sale will result in an accounting profit. The sale will be accounted for in the second quarter of 2004 when the profit on sale will be recognised.

CONSTRUCTION PROJECT

Loulo Mine

All aspects of the construction and development of the mine were advanced in the quarter.

SRK has carried out pit optimisation studies based on a gold price of US$350/oz. The pit scheduling is based on an initial mining rate of 90 000 tons of ore per month from each of the two pits. The mining will be contracted out and a tender process has been initiated. Submission of tenders is due by 7 May. After completion of the tender process, the pits will be re-optimised and tested at a US$375/oz and US$400/oz gold price. Pre-stripping is scheduled to commence in the last quarter of 2004.

Treatment of the ore will be by a crushing and ball milling circuit. An interim contract has been agreed with MDM for the initial plant work and final design for the process plant and infrastructure has been completed and approved. Tender documentation has been issued to selected contractors, including MDM, for the main contract for construction of the plant.

Power will be supplied by a diesel-generated power plant. Tenders have been received and the contract will be awarded in the second quarter of 2004.

Construction is underway on roads, construction camp and water supply. The site is being cleared in preparation for the laying of foundations. The critical path remains the completion of the initial civil engineering work before the rainy season commences in July. Agreement in principle has been reached with the Government of Mali for the construction of 90 kilometres of national road between Sadiola and Kenieti will greatly facilitate access to site. Randgold Resources will carry out the construction and will be re-imbursed by the State from future production royalties.

Good progress has been made on the project financing. The banks' independent engineers RSG are currently performing their due diligence work and final loan documentation is nearing completion. The target date for finalisation of the project financing is July 2004.

A significant upgrade in the mineral resource base was declared during the quarter as a result of the deep drilling programme which continues to prove the extensions of orebodies at depths below the Loulo 0 and Yalea open pits. In total, resources increased at Loulo from 4.26 million ounces to 5.32 million ounces. Fuller details of the drilling results are given in the exploration section.

A total of US$7.7 million was spent in the quarter on the project. This was mainly spent on securing long lead-time items, site construction materials, particularly steel ahead of the recent steel price increases and on drilling costs.

Based on an initial scoping study and following the success of the deep drilling exploration programme, Randgold Resources is investigating the potential for two new underground mines at Loulo. The study will look into the feasibility of exploiting the depth extensions below the open pits at Loulo 0 and Yalea which would significantly extend the projected six-year life of the project.

SRK Consulting will complete the underground prefeasibility study on both the Loulo 0 and Yalea orebodies by July this year and if positive this will lead to the completion of the full feasibility study by year-end. The optimum open pit to underground interface will also be established.

Tongon Project

The situation in the Cote d'Ivoire is being monitored. UN peacekeeping troops have been deployed to make a new beginning in areas of the peace process where there has been regression. The Company has maintained its presence in the country and is capable of recommencing feasibility and exploration work without delay once the political and security environment returns to acceptable levels.

EXPLORATION ACTIVITIES

During the quarter, exploration work was accelerated on the Company's projects in West and East Africa:

* An aggressive drilling programme was carried out at Loulo.

* Drilling continued within the Morila lease.

* Focus on drill site preparation for commencement of drilling programmes in the Morila Region and Senegal.

* Good progress was made in Ghana with the establishment of an office and the generation of new targets.

* New targets were developed and ground holdings were consolidated in Tanzania

* A new exploration permit was granted in Burkina Faso.

The corporate exploration budget was increased by US$2.4 million. US$2.0 million of the increase has been allocated to Loulo to fund the work required to achieve the strategic objective of advancing the deeper Yalea and Loulo 0 resources to indicated status. The remainder of the increase will be spent on establishing new projects in Ghana and Burkina Faso and in drilling new targets.

At the Yalea deposit within the Loulo project area, a further 18 deep holes were drilled. These confirmed the continuity of known high grade pay shoots down to vertical depths of 510 metres and discovered new ones that do not come to surface. The ore zone is becoming wider with depth without diminution of grade and a number of high grade intercepts have been made. These include high grade intercepts of 23 metres @ 12.5 g/t, 18 metres @ 33.0 g/t and 14 metres @ 26.9 g/ t (including 6 metres @ 42.5 g/t). Drilling also closed the gap with the P125 deposit and confirmed continuous mineralisation over a 2.7 kilometre north-south direction, which has only been tested at depth over 2.3 kilometres. Reconnaissance exploration south of the Yalea orezone has confirmed that the footwall mylonite structure, which controls the mineralisation, can be traced south of the current drill coverage for a further 1 600 meters. Drill testing is currently in progress along this target zone. A 15 000 metre drilling programme has been designed to take the Loulo 0 and Yalea resources to indicated status down to depths of up to 500 metres below surface. Finally, generative and regional programmes clearly confirm the three main structural corridors covering the lease area and follow up soil sampling has defined four new, untested, gold in soil anomalies with values of up to 1.2 g/t which locate within a 10 kilometre radius of the plant site.

Table 1: Deep drilling results along the Yalea structure (2.3 kilometre strike length)



 Hole ID     From    To    Width   Grade
               (m)    (m)     (m)   (g/t)    Including

 YDH122     317.0   349.0   32.0    10.9    23m @ 12.5

 YDH123     329.0   351.0   22.0     3.5      5m @ 7.4

 YDH124     268.0   278.5   10.5     7.4             -

 YDH125     336.0   344.0    8.0     4.1             -

 YDH126     368.0   394.0   26.0     2.6      6m @ 6.5

 YDH127     357.0   372.0   15.0     5.2             -

 YDH128     293.0   302.3    9.3     4.8             -

 YDH129     329.0   349.0   20.0     2.6     10m @ 3.9

 YDH130     408.0   411.0    3.0     1.1             -

 YDH131     278.0   297.0   19.0     5.4             -

 YDH132     487.0   539.0   52.0    10.7    14m @ 26.9
                                    (incl 6m @ 42.5g/t)

 YDH133     328.0   330.0    2.0      1.2      Faulted

 YDH133 A   310.0   313.0    3.0      1.6      Faulted

 YDH135     347.0   351.0    4.0      3.4

 YDH136     586.4   590.1    3.7     23.9

 YDH140     619.0   631.0   12.0     18.6

 YDH141     547.0   572.0   25.0     13.5

 P125DH09    83.0   103.0   20.0      1.0     4m @ 2.1

 P125DH10   100.0   124.0   24.0      6.2            -

 P125DH11   132.0   154.0   22.0      2.2    10m @ 3.1

 P125DH12   136.0   162.0   25.0      28.7  18m @ 33.0

 P125DH13   200.0   207.0    7.0      3.2     2m @ 7.8

 P125DH14   215.0   224.0    9.0      3.5     6m @ 4.6

 P125DH15   226.0   242.0   16.0      4.9    11m @ 6.5

 P125DH16   218.0   231.0   13.0      6.4            -

At the Morila mine a recently completed generative study has outlined nine new targets with similar structural settings to Morila and drill testing has commenced on the first of these. Following completion of the near mine geological model, several areas around the current pit with the potential to yield continuous flat lying mineralisation have been targeted for further drilling.

Outside of the Morila joint venture, but within the Morila region, three targets have been prioritised for drilling based on encouraging trench and pit results and the geological model. At Sagala a recently completed helicopter borne magnetic survey has delineated a 30 kilometre, north-east striking structural zone traversing the Company's permit, and highlighted two new targets requiring follow-up.

In Senegal, three targets have been outlined for drill testing. These include a well-defined mineralised dilational zone with an 800 metre strike length at Tomboronkoto and a conceptual target with multiple mineralised zones in quartz feldspar porphyry and brecciated gabbro locating within a broad 2.5 kilometre by 1.5 kilometre soil anomaly. Site preparation is currently in progress and, subject to drill rig availability, drilling is planned to commence before the rainy season in July.

The Company has consolidated its position in priority target areas within the Mara and Musoma greenstone Belts in the Lake Victoria goldfields of Tanzania. In the Mara Belt, ground has been secured covering the eastern extension of the structural zones hosting the deposits currently being mined by East African Gold Mines. On the Nyabigena South licence, three auriferous vein sets with grades of 0.5 to 78.3g/t (n=58) cover a 1 000 metre by 800 metre target zone. The veins are associated with silica and carbonate alteration and foliated granites with shallow dips. In the Musoma belt the Company now holds 10 licences covering 695km2 forming a contiguous set over a strike length of 30 kilometres. Regional and reconnaissance exploration has been completed and five target areas have been identified with gold occurrences and intersecting structures which will be the focus of follow up work after the rainy season.

In Burkina Faso, the Company has been granted the Danfora permit which covers 45km2 and locates in the south west region of the country within the Banfora greenstone belt. Reconnaissance work has identified a plus one kilometre zone of gold mineralisation locating on the sheared contact between granodiorite and basalt and returning values of between 0.5 and 72.0g/t from 48 rock samples. The target is ready for drill testing and this will be effected through an RC programme once a rig becomes available. An application for a second permit in Burkina Faso is still pending.

ANNUAL RESOURCES AND RESERVE DECLARATION

Annual ore resources showed a net gain for the year despite the decreases in resources at Morila. The expansion of total attributable resources from 7.67 million ounces to 7.95 million ounces was due mainly to the success of the deep drilling programme at Loulo which continued to prove the extensions to the orebodies at depth.

At Morila, while resources and reserves decreased, the higher confidence measured resources increased from 14% of the total at the end of 2002 to 40% at the end of 2003 and reserves in the proved category increased from 17% to 43%.

Annual Resource and Reserve Declaration as at 31 December 2003:



                                             Attribu-
                                                table
                  Tonnes      Grade     Gold     Gold

 Category           (Mt)      (g/t)    (Mozs)  (Mozs)

 Mineral Resources

 Morila
 Measured and
 Indicated        30.56       3.68      3.62    1.45

 Inferred          2.06       2.96      0.20    0.08

 Sub-total
 Measured,
 Indicated and
 Inferred         32.62       3.63       3.81   1.53

 Loulo

 Measured and
 Indicated        32.80       3.95       4.16   3.33

 Inferred         11.18       3.22       1.16   0.93

 Sub-total
 Measured,
 Indicated
 and Inferred     43.97       3.76       5.32   4.26

 Tongon

 Sub-total
 Inferred         34.00       2.65       2.89   2.17

 Total Resources
 Measured
 and Indicated    63.36       3.82       7.78   4.78

 Inferred         47.23       2.79       4.24   3.17

 Measured,
 Indicated and
 Inferred        110.59       3.38       12.03  7.95


 Ore Reserves

 Morila

 Proved and
 Probable         25.74        3.74       3.09  1.24

 Loulo

 Proved and
 Probable         11.69        3.77       1.42  1.14

 Total Ore
 Reserves
 Proved and
 Probable         37.43        3.75       4.51  2.37

* Randgold Resources reports its Mineral Resources and Ore Reserves in accordance with the JORC code.

* Total resources are reported without the contribution from Syama. On 5 April 2004, Resolute Mining announced their intention to acquire Randgold Resources interest in the Syama Mine.

* Reserves are calculated at a gold price of US$350/oz.

* Dilution and ore loss are incorporated into the calculation of reserves.

CORPORATE AND NEW BUSINESS

The Company continues to look at a number of opportunities both at a corporate and project level. As has been stated in the past, value creation in the mining industry is best achieved through discovery and development. Notwithstanding the fact that we continue to search for value or strategic leverage in M&A opportunities, Randgold Resources has been consistent in its belief of organic growth through exploration. In the past quarter, we were able to secure a select number of early stage projects/exploration permits in what are considered highly prospective geological terrains. This resulted from detailed investigations by our generative team over the last 12 months. The most significant of these projects is in Ghana.

The Company has entered into a co-operative agreement with Inter-Afrique Holdings to identify and exploit profitable business opportunities in Ghana's gold mining sector and has also signed a joint venture agreement with local Ghanaian company Adansi Asaasi Mining. Randgold's association with Inter-Afrique dates back to the early 1990s and the company was a major advisor to Randgold Resources in its bid to acquire Ashanti last year.

The Company has signed a joint venture agreement in Ghana with local company Adansi Asaasi Mining to effect exploration on a licence located directly north east of the Obuasi mining lease. The Obuasi mine has been operational for more than 100 years and has produced approximately 27 million ounces of gold. Mineralisation is associated with the reactivated Obuasi Shear; within this shear high grade oreshoots plunge to the north east some of which do not come to surface. Mineralisation extends for approximately 8 kilometres along strike, to greater than 1.6 kilometre depth and is open at depth and along strike. The continuation of the Obuasi Shear extends into the Adansi Asaasi permits where previous work has indicated narrow and sporadic mineralisation at surface. No drilling to depth has been completed to test for buried oreshoots.

In addition the Company increased its exploration activities in Tanzania and Burkina Faso.

The following items were tabled for shareholder approval at the Annual General Meeting held on 26 April in Jersey:

* approval to reconstitute the Company's balance sheet so that accumulated losses can be expunged through the share premium account, and pave the way for dividends to be paid;

* sub-division of each ordinary share into two ordinary shares. This will reduce the price payable for individual shares in the Company without affecting the value held by each current shareholder. The intention is to further improve the tradability of the Company's shares.

R A R Kebble D M Bristow R A Williams Chairman Chief Executive Financial Director

28 April 2004

Registered office: La Motte Chambers, La Motte Street, St Helier, Jersey JE1 1BJ, Channel Islands

Web-site: www.randgoldresources.com

Registrars: Computershare Investor Services (Channel Islands) Limited, PO Box 83, Ordnance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands

Transfer agents: Computershare Services plc, PO Box 663, 7th Floor, Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR

Investor and media relations: For further information contact Kathy du Plessis on Telephone +27 (11) 728-4701, Fax +27 (11) 728-2547, e-mail: randgoldresources@dpapr.com

DISCLAIMER: Statements made in this document with respect to Randgold Resources' current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Randgold Resources. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Randgold Resources cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. The potential risks and uncertainties include, among others, risks associated with: fluctuations in the market price of gold, gold production at Morila, the development of Loulo, estimates of reserves and mine life and liabilities arising from the closure of Syama. For a discussion on such risk factors, refer to the annual report on Form 20-F for the year ended 31 December 2002, which was filed with the Securities Exchange Commission on 27 June 2003. Randgold Resources assumes no obligation to update information in this release.

Cautionary Note to US Investors: The United States Securities Exchange Commission (the "SEC") permits companies, in their filings with the SEC, to disclose only proven and probable ore reserves. We use certain terms in this release, such as "resources", that the SEC does not recognise and strictly prohibits us from including in our filings with the SEC. Only those proven and probable reserves which qualify as "proven and probable reserves" for the purposes of the SEC's industry guide number 7 are presented in this release. Investors are cautioned not to assume that all or any part of our resources will ever be converted into reserves which qualify as "proven and probable reserves" for the purposes of the SEC's industry guide number 7.

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

END



            

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