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


DEVELOPMENT OF NEW UNDERGROUND MINE FORMALLY UNDERWAY

BAMAKO, MALI, 17 OCTOBER 2006 (LSE:RRS)(NASDAQ:GOLD) - The development of
Randgold Resources' new Yalea underground mine at its Loulo project in Mali was
officially launched today with the turning of the first sod by the Minister of
Mines, Energy and Water, Hamed D Semega.

The two open-cast mines at Loulo went into production late last year and to June
2006 had already poured 184 000 ounces of gold. The Yalea development will raise
the project's production from 250 000 ounces per year to in excess of 400 000
ounces per year and reduce its cost profile over the next five years. It is
expected to remain in production beyond 2020. The boxcut and portal construction
at Yalea is now well advanced and excavation of the declines is scheduled to
begin before the end of the year. Randgold Resources expects to access the first
development ore in late 2007.

A second underground mine - Loulo 0 - is currently at the final planning stage.
To distinguish it clearly from the overall project, Loulo 0 is being renamed
Gara after a nearby stream.

Speaking at the sod-turning ceremony, Randgold Resources chief executive Mark
Bristow said Loulo's systematic transformation into a four-mine complex
underlined the project's enormous brownfields potential.

"Randgold Resources is known for its commitment to organic growth driven by
exploration and it was our discovery of the Yalea deposit that made Loulo a
viable project in the first place. Further exploration showed that underground
mines could be developed to complement the open-cast operations on which the
project was initially based. These will significantly extend the life and
enhance the value of the project and have elevated it to true world-class
status," he said.

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        +223 675 0109        Fax: +27 11 728 2547
                                             Cell: +27 83 266 5847
                                             Email: randgoldresources@dpapr.com
                                                    ---------------------------

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.