African countries may harm own economies

JERSEY, CHANNEL ISLANDS — (Marketwire) — 10/16/12 —

AFRICAN COUNTRIES MAY HARM OWN ECONOMIES BY SEEKING SHORT-TERM GAINS
FROM MINING INDUSTRY

Kinshasa, DRC, 16 October 2012 – Randgold Resources chief executive
Mark Bristow today warned African governments that they risked damage
to their economies by trying to squeeze quick returns from the mining
companies in their countries. Randgold has gold mines in Mali and Cote
d-Ivoire and is currently developing the giant Kibali gold project in
the Democratic Republic of Congo.

Speaking at the DRC-s Mining and Energy Indaba, Bristow said current
moves in a number of African countries to amend mining codes on terms
less favourable to the mining companies were dangerously short-sighted
as they did not take into account the increased risk this might present
to the long-term sustainability of the resources industry and its
ability to contribute to job creation and economic development.

Bristow noted that when the Kibali gold mine pours its first gold
scheduled for the end of next year, it would rank as one of the largest
gold mines in Africa and would be an economic boom to the whole of the
DRC.“To achieve that, we need the support of all our stakeholders in the
DRC, including the government, as well as of our international
investors,“ he said.“Over a projected lifetime of 16 years, it is
anticipated that more
than 50% of the net pre-tax value generated by the project will be
distributed to the State in the form of taxes, royalties and
dividends. The DRC state will in fact receive more than the other
shareholders who are financing 100% of the project. This figure does
not reflect the jobs it will create or the money it will spend with
local businesses. What-s important to note is that the estimates from
our feasibility study are based on the DRC-s current mining code and
fiscal parameters. Any drastic changes to these will have a negative
impact on costs, profits and even the life of the mine.“

He said that increasing the tax burden on those who had taken the risk
of investing in the DRC would not only damage the country-s fledgling
mining industry, it would also discourage future investors from
developing new operations which would make profits, pay taxes and
provide employment. „I need hardly tell you how damaging that would be
to the growth of the DRC and its economy,“ he said.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the
historical information contained herein, the matters discussed in this
news release are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934, and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the estimation
of mineral reserves and resources, the realisation of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as -will-, -plans-, -expects-
or -does not expect-, -is expected-, -budget-, -scheduled-,-estimates-,
-forecasts-, -intends-, -anticipates- or -does not
anticipate-, or -believes-, or variations of such words and phrases or
state that certain actions, events or results -may-, -could-,
-would-,-might- or -will be taken-, -occur- or -be achieved-. Assumptions
upon
which such forward-looking statements are based are in turn based on
factors and events that are not within the control of Randgold and
there is no assurance they will prove to be correct. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different from
those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
Randgold and Moto, risks related to mining operations, including
political risks and instability and risks related to international
operations, actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, as well as those factors discussed in the
section entitled -Risk Factors- in Randgold-s annual report on Form
20-F for the year ended 31 December 2011 which was filed with the US
Securities and Exchange Commission (the -SEC-) on 31 March 2012.
Although Randgold has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not
undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws.

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.

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