RANDGOLD RESOURCES LIMITED

Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD

7 August 2006

RANDGOLD RESOURCES UPDATE


LOULO PLANT SUBSTANTIALLY COMPLETE

A herculean effort from the Randgold Resources team at Loulo has completed the
plant, as originally designed, with only a few loose ends remaining to be tied
up.

Chief executive Mark Bristow says that when the company made the difficult
decision to take back the project from the defaulting contractor, it appeared
that the job was some 65% complete. As the team got to grips with the task,
however, it became increasingly evident that it had only been half done.

"We faced two challenges. The first was to complete the hard-rock crushing
circuit as quickly as possible, while using mobile crushers as an interim
measure. The second was to address various critical operational issues, such as
the tailings facility and the water storage and pumping systems, which were not
up to our standards. And at the same time, of course, we had to settle down a
new mine and a new operating team," he said.

Unfinished or not started by the contractor, but now completed by the team, are:
the hard-rock crushing circuit, except for the stockpiling system,
the Garra water storage facility and diversion canal weir,
the tailings storage facility and return water pumping system,
the water pipelines to the Garra and from the Garra to the plant,
the CIL expansion tank bases,
the woodchip dewatering screens and disposal systems,
the plant spillage pumping systems,
the plant dust suppression systems,
the plant fire-fighting systems,
the lime pneumatic handling system,
the steel ball handling system,
the acid wash tank,
the cyanide store, plant workshops, village shop and other buildings,
the fencing around the plant and the tailings storage facility, and
the carbon regeneration system.

Still being buttoned up are the main fuel farms, where three out of five tanks
have been finished i.e. the installation of some of the final steelwork and
supports around the stockpile and the completion of the punch list for Phase 2.

YALEA UNDERGROUND CONTRACT AWARDED

The contract for the development of the Yalea underground mine at the Loulo
complex has been awarded to Shaft Sinkers, a mining contractor with a proven
track record in Africa. Site preparation for the twin decline system has already
started and the boxcut and portal construction will soon commence with shaft
sinking scheduled to begin in the last quarter of this year. The office and
workshop complex has been prefabricated in South Africa and is expected to
arrive in Mali in August.

Meanwhile, the supply contract for the underground heavy vehicle fleet -
consisting of Atlas Copco drill rigs backed by Elphinstone/CAT loaders and
trucks - has been awarded to JA Delmas, the principal Caterpillar dealer in West
Africa.


Underground manager Thinus Strydom says the Loulo 0 underground plan is
currently being updated and integrated with the open pit plan. Additional areas
of synergy between the open pit and underground operations are also being
investigated. These include the introduction of an overland conveyor system
which will transport both underground and open pit ore from Yalea to the plant
instead of trucking it.

TACTICAL DRILLING UNDER WAY IN COTE D'IVOIRE

CEO Mark Bristow, GM:Mali Mahamadou Samake and exploration manager Paul Harbidge
recently completed a very successful trip to the Cote d'Ivoire. Productive
meetings were held in Abidjan, prior to a field visit to Randgold Resources' 75%
owned Nielle permit, which accommodates the Tongon project. They were
accompanied by Soro Guillaume, the leader of the Forces Nouvelles and Minister
of State; representatives from the ministries of mines and defence; N'golo
Coulibaly, the president of the general council for the Korhogo region; and
Sidiki Konate, the director of the cabinet, together with the media.

The government and the Forces Nouvelles both approved Randgold Resources' plan
to resume exploration activities and granted a temporary lifting of the 'Force
Majeure' which has been in place since the start of the conflict in September
2002. A 10-hole, 2 000 metre tactical drilling programme is underway to provide
a broad framework for the final feasibility drilling programme, due to start
after a return to stability. The next detailed drilling programme will form part
of the final feasibility study which should take about 24 months to complete.

Resources at Tongon currently fall within the inferred category: 35.96Mt at
2.68g/t for 3.11Mozs.

"Randgold Resources believes in the gold prospectivity of the Cote d'Ivoire and
the resolve of its people and leaders to find a lasting solution for the
country. When compared with other countries that are emerging from political and
military conflict and are prospective for new gold discoveries, Cote d'Ivoire
stands out as one of the better ones and we will continue to support the peace
process as a business partner to the country," Bristow said.

INFLATION PRESSURES INCREASE BREAKEVEN COSTS

The depreciating dollar, rising oil prices and inflation concerns have driven
the gold price upward - but for the mining industry these same factors also have
a steep downside: their impact on capital and operating costs.

Rising inflation has caused industry analysts to increase their cost projections
sharply. Nesbitt Burns, for example, has increased its senior producer average
total cash cost forecasts of US$220/oz and US$223/oz for 2007 and 2008, made in
2004, to US$276 and US$286. For intermediate producers, the forecast has moved
up from US$191 and US$183 to US$235 and US$231. Senior producer breakeven costs
have also risen significantly, from an actual US$310/oz in 2003 to an actual
US$381/oz in 2005. Current expectations for 2006 and 2007 are US$426/oz and
US$415/oz. For intermediate producers, breakeven costs have increased from
US$281/oz in 2003 to US$394/oz in 2005 and forecasts for 2006 and 2007 are
US$384/oz and US$358/oz respectively. Breakeven costs measure total cash costs
plus depreciation, exploration and interest expenses.

In its third annual review of global mining trends, published in June,
PriceWaterhouseCoopers notes that mining company CEOs are increasingly concerned
about cost pressures, notably of energy, more aggressive pricing by contractors
and the additional strain imposed by governments reviewing royalties, taxes and
the level of foreign ownership.

Energy costs are a particularly big issue for those companies, such as Randgold
Resources, which operate in remote regions and therefore have to generate their
own power as well as to transport all their requirements over long distances.
Diesel fuel for power generation typically accounts for some 20% of the total
operating costs of such mines. Driven by the fear of shortages due to
geopolitical instability, and increasing demand from China, the oil price
increased by 36% in 2004 and 33% in 2005.

For producers in areas where costs are not primarily denominated in dollars,
inflationary pressures have been exacerbated by the decline in the US currency,
which has weakened by some 20% in the protracted bear market which started in
2002.


Randgold Resources chief financial officer Roger Williams says the company has
risen to the challenge of increased input costs by continuously striving to
improve its own efficiency as well as that of its suppliers. It has been able to
mitigate some of the inflationary and currency cost pressures by sourcing
cheaper input materials and embedding a culture of cost-consciousness.

"Under the current cost regime we like to see our mines produce at a cash cost
of below US$350 per ounce. In the longer run, therefore, our fundamental
response to the cost challenges we face is to invest aggressively in the hunt
for more high-quality lower-cost ounces," he said.

EXPLORATION: ARE THE JUNIORS GETTING DISTRACTED?

With the junior companies increasingly opting for development over exploration,
the gold industry is in danger of losing its traditional trail blazers and
entrepreneurs, says Randgold Resources chief executive Mark Bristow.

Speaking at the African Junior Mining Conference in Johannesburg, Bristow said
juniors should be the industry's replacement engines, driving reserve and
production growth. They were supported in this historical role by relative ease
of access to equity risk capital, a generally flexible and entrepreneurial
approach, and a higher capacity for risk, which allowed them early entry into
new regions.

"It's the speculative junior sector and those companies which offer the
potential for bonanza discoveries that have always attracted the risk capital at
times like these. The problem at this point in the cycle is that many of the
speculative investors don't understand the industry and its risks. Is
exploration a value proposition? Definitely - but you can't just switch it on to
coincide with a move in the market. It's a business which requires constant
planning and investment ahead of the curve," Bristow said.

One of the underlying causes of the shift away from exploration, said Bristow,
was the fact that many of the juniors were listed on the Aim market of the
London Stock Exchange.

"This market's hunger for instant rewards has focused them on trying to become
producers by developing those smaller projects that didn't make it through the
last cycle. History shows that unless one can add substantially to marginal
projects, they remain marginal in the long run," he said.

"New discoveries are the only way to replace production and create value. If the
industry is to maintain, let alone raise, its production profile, the majors
need to re-establish their exploration businesses. Even more important, the
juniors need to invest their venture capital in making discoveries. Juniors,
like seniors, need business strategies that focus on sustainable profitability,
and that recognise that building an integrated gold business requires a solid
exploration base."

NURTURING OUR INTELLECTUAL CAPITAL

Since the start it has been Randgold Resources' policy to build a strong
intellectual capital base by attracting, developing, retaining and motivating
the best people, with a particular emphasis on the citizens of the countries in
which it operates. The immense intellectual capital it has amassed has provided
it with a keen competitive edge and a potent operational engine, as the
company's performance record shows. Equally importantly, its decision to employ
and empower locals has considerably enhanced its productive partnerships with
its host countries.

These are some of the people who make up our intellectual capital base:

EXECUTIVE MANAGEMENT

Mahamadou Samake - executive manager of the Randgold Resources Mali operational
centre; resident member of the Randgold Resources executive in Mali and a
director of Morila SA and SOMILO.

EXPLORATION

Felix Kiemde - manages all exploration projects in Burkina Faso; was closely
involved in the delineation of the Tongon and Yalea orebodies.

Fousseyni Diakite - exploration administration manager Mali exploration;
involved in company exploration activities in Mali since Randgold Resources
first entered the country; has the distinction of being its first employee in
West Africa.




Emmanuel Badini - currently exploration manager at Loulo; has worked for
Randgold Resources in Burkina Faso, at Syama and Morila.

Aziz Sy - manages all exploration projects in Senegal; as a senior geologist was
closely involved in the delineation of the Morila orebody; recently completed an
MBA.

Babacar Diouf - responsible for the evaluation of orebodies and currently
working at Tongon; has worked for the company in Senegal, Loulo, and at
exploration sites throughout West Africa and Tanzania; currently studying for a
graduate diploma at Wits University.

Mamadou Diallo - heads the company's generative geological function in Mali; has
the reputation as the geologist involved in an exercise that indicated the
presence of gold at Sadiola Hill, Syama, Morila and Loulo.

Sounkalo Kone - a Randgold Resources employee since 1996 and currently working
in Mali West; was one of four senior geologists on the team which discovered the
Morila orebody; played a pivotal role in preparing the local villages
surrounding Morila for the change from an exploration site to a mine site.

Mamadou Bathily - a Randgold Resources employee since 1996 and currently in
charge of exploration at Mali South; one of four senior geologists on the team
which discovered the Morila orebody.

David Mbaye - manages some exploration projects in Senegal; was closely involved
in the delineation of the Yalea orebody.

Kezia Aaron - administrative manager in Tanzania and has worked with the company
throughout its time in Tanzania; in charge of all administrative aspects related
to exploration projects, including government liaison.

Bodiel N'Diaye - administration manager in Cote d'Ivoire and in charge of all
administrative aspects related to exploration projects, including government
liaison.

LOULO GOLD MINE

Amadou Konta - the first Malian national to be appointed general manager of a
large gold mine in Mali; was previously manager mining of the Syama mine in
Mali, and has been with the company since it took over Syama in 1996.

Tahiro Ballo - manager mining designate at Loulo; in charge of openpit mining;
was the mining production superintendent at Syama.

Mamadou Kanoute - manager engineering designate at Loulo; currently responsible
for engineering maintenance in the metallurgical processing plant; joined
Randgold Resources at Syama and worked at Morila before taking up his current
post.

Abdoulaye Cisse - plant superintendent at the metallurgical processing plant;
developed his managerial skills at Syama; recently attended a management course
at the University of Cape Town.

Amadou Maiga - head of management accounts department at Loulo; been at the mine
since construction started.

Ibrahima Diane - manager human resources; joined the company after completing a
long and distinguished career in the Department of Labour.

Chiaka Berthe - currently responsible for grade control at one of the open pits;
as an exploration geologist was part of the team that discovered Yalea; recently
attended a management course at the University of Cape Town's Business School.

Amadou Famanta - currently responsible for grade control at one of the open
pits; as an exploration geologist was part of the team that discovered Yalea; in
2006 completed an MBA through the University of Quebec; played an important role
in preparing the communities in the Loulo area for the change of the Loulo
exploration project to an operating mine.

BAMAKO OFFICE

N'golo Sanogo - operational centre financial manager responsible for financial
accounting on all company Malian operations; has worked for Randgold Resources
since it took over Syama; was a stores accounts and a cost control manager at
Syama before moving to the Bamako office.

Mamadou Djire - head of financial accountants at Bamako office.

Seydio Dagnon - group payroll controller in Mali, responsible for exploration,
Bamako office and SOMILO payrolls; recently attained a management accounting and
economics diploma.

RANDGOLD RESOURCES ENQUIRIES:
-------------------- ---------------------- ------------------------------------
Chief Executive      Financial Director     Investor & Media Relations
Dr Mark Bristow      Roger Williams         Kathy du Plessis
+44 779 775 2288     +44 791 709 8939       +27 11 728 4701
+223 675 0122                               Fax: +27 11 728 2547
                                            Cell: +27 83 266 5847
                                            Email: randgoldresources@dpapr.com
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Website:  www.randgoldresources.com
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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 2005 annual report notes that the financial statements do not reflect
any provisions or other adjustments that might arise from the claims and legal
process initiated by Loulo against MDM. Other potential risks and uncertainties
include risks associated with: fluctuations in the market price of gold, gold
production at Morila, the development of Loulo and estimates of resources,
reserves and mine life. For a discussion on such other risk factors refer to the
annual report on Form 20-F for the year ended 31 December 2005 which was filed
with the United States Securities and Exchange Commission (the 'SEC') on 29 June
2006. Randgold Resources assumes no obligation to update information in this
release. Cautionary note to US investors: 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'. Investors are cautioned not to assume that all or any parts 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.