MASSAWA GOLD PROJECT. 2.6 Moz 30 % TOTAL RESERVES RANDGOLD RESOURCES

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1 MASSAWA GOLD PROJECT TOTAL RESERVES 2.6 Moz 30 % 74 ANNUAL REPORT 2016

2 Massawa and Sofia are grassroots exploration discoveries located on the Kanoumba permit in eastern Senegal. The project is about 700 kilometres southeast of the capital city of Dakar and approximately 90 kilometres due west of Randgold s Loulo operation in Mali. Randgold owns 83.25% of the project in partnership with a local company which owns 6.75%, after providing for the State of Senegal s right to a noncontributory 10% share of any mine developed on the property. MASSAWA TOTAL MINERAL RESOURCES AND ORE RESERVES 1 Moz Refer to the notes to the annual resources and reserves declaration on page 103 of this annual report Reserves Resources ANNUAL REPORT

3 PROJECTS MASSAWA GOLD PROJECT CONTINUED ACHIEVED IN 2016 Expanded reserves with the inclusion of the Sofia deposit Updated technical and financial study of combined Massawa- Sofia project Completed detailed ore characterisation of the Massawa deposit Completed bio-oxidation test work of Massawa Northern Zone Updated project metallurgical flowsheet FOR 2017 N Mauritania Dakar SENEGAL Mali Massawa Project Guinea Burkina Faso Côte d Ivoire 600km Randgold permits TARGETED FOR 2017 Expand Sofia reserves Complete drill out and metallurgical testwork at Massawa Update environmental and social impact assessments Advance final feasibility study and development timeline of project Continue exploration on the broader Kanoumba permit 76 ANNUAL REPORT 2016

4 GOLD PROJECT MASSAWA MINERAL RESOURCES AND ORE RESERVES Tonnes (Mt) Grade (g/t) Gold (Moz) Attributable gold 3 (Moz) at 31 December Category MINERAL RESOURCES 1 Open pits Measured Indicated Inferred Underground Inferred TOTAL MINERAL RESOURCES Measured and indicated Inferred ORE RESERVES 2 Open pits Probable TOTAL ORE RESERVES Proved and probable Open pit mineral resources are reported as the insitu mineral resources falling within the $1 500/oz pit shell reported at an average cut off of 0.84g/t. Underground mineral resources are those insitu mineral resources below the $1 500/oz pit shell of the North Zone 2 deposit reported at a 2.3g/t cut-off. Mineral resources for Massawa were generated by Simon Bottoms and Rodney Quick, both officers of the company and competent persons. 2 Open pit ore reserves are reported at a gold price of $1 000/oz and at a 1.13g/t cut-off and include dilution and ore loss factors. Open pit ore reserves were generated by Shaun Gillespie, an officer of the company and competent person. 3 Attributable gold (Moz) refers to the quantity attributable to Randgold based on its 83.25% interest in Massawa. Mineral resource and ore reserve numbers are reported as per JORC 2012 and as such are reported to the second significant digit. All mineral resource tabulations are reported inclusive of that material which is then modified to form ore reserves. Refer to the notes to the annual resources and reserves declaration on page 103 of this annual report. The Massawa project is located within the Kedougou- Kenieba erosional inlier, which is underlain by Lower Proterozoic Birimian metasedimentary-volcanic sequences. Regionally it is located on the plus 150km long northeast/southwest trending Main Transcurrent Shear Zone (MTZ) which is a significant transcrustal dislocation between the Mako Supergroup (basaltic flow rocks, minor intercalated volcaniclastics, and ultramafic sub-volcanic intrusions) and the Diale- Dalema Supergroup (volcano-sedimentary to sedimentary rocks) within the Kedougou-Kenieba inlier. Mineralisation at Massawa is located in various lithologies but is structurally controlled within anastomosing shears that converge to the north. Sofia is hosted in a west-dipping mylonitic shear structure with intense silica-albite alteration that contains fine, disseminated pyrite located in an intrusive package in the immediate hangingwall of an early gabbroic sill. The project consists of the main Massawa deposit, which is split into two zones, the Central Zone (CZ) and Northern Zone (NZ), and the Sofia deposit, located 11km west of the Massawa deposit, which was added to the project reserve during the past year. PROJECT UPDATE The development of the Massawa project was delayed in 2011 since it did not pass Randgold s investment hurdle rates, principally due to the high cost of treating the refractory ores. However, evaluation work has continued and a number of fundamental findings have been made over the last two years which, together with the lower cost environment, have reprioritised the project: The non-refractory Sofia deposit has been added to the reserves of the project in the last year. There remains significant potential for the Sofia deposit to be expanded with continued drilling; Orientation reverse circulation (RC) grade control drilling of four portions of the Massawa CZ have allowed the complex geological model of the anastomosing shears to be revised, resulting in a lower tonnage, higher grade geological model; The metallurgical test work on the four orientation grids has indicated that an 80% metallurgical recovery is achievable on the bulk of the CZ deposit with a gravity, flotation, ultra-fine grind and leach circuit; and Bio-oxidation (Biox) batch test work has confirmed the technology is capable of delivering an 89% overall recovery for the NZ refractory ore. These key changes have resulted in the critical mass of the combined Massawa-Sofia project moving away from the high cost refractory ore to one that is dominated by the relatively easy leaching ores of Sofia and the Massawa CZ. The updated geological model of the Massawa CZ has clearly defined two styles of mineralisation consisting of a thin high grade Phase 2, with a significant coarse gold component, surrounded by a lower grade Phase 1 mineralisation. Metallurgical testwork has now identified the transition boundary between the refractory ore of North Zone 2 (NZ2) and the CZ. ANNUAL REPORT

5 PROJECTS MASSAWA GOLD PROJECT CONTINUED KANOUMBA PERMIT - PRIORITY TARGETS N Bambayara 1.2g/t inferred resource Mineralisation associated with quartz-tourmaline veins. Structually complex area folded and faulted Sabodala mine Sofia Main and North Indicated resources 3.77g/t, Inferred resources 1.9g/t Delya 3.6g/t inferred resource Tina 1.1g/t inferred resource Toro gold discovery (Mako) Sabodala Structure Major Au pathways Massawa Measured and indicated resources 4.0g/t Inferred 3.3g/t Kassawa Large Au-As soil anomaly associated with interaction of multiple structures, confirmed by historical drilling MTZ 10km 78 ANNUAL REPORT 2016

6 GOLD PROJECT Sofia Main SFRC g/t from 89m SFRC g/t from 127m SFRC g/t from 86m SFRC g/t from 94m SFRC g/t from 115m NE Drilling Gaps Limit of FWOZ SW 170m VD 3-5g/t OPEN OPEN Step out drill Potential for oz at 3.8g/t (sectional estimate) OPEN 1.5km OPEN Open at depth: Conceptual targeting Sofia Main block model 1km Gold g/t < >8 Massawa block model 2.2Moz proved and probable reserves Line extension Northern Zone 1 89% metallurgical recovery achievable for NZ refractory ore Northern Zone 2 Gold g/t < >8 500m Central Zone 80% metallurgical recovery achievable on the bulk of CZ ANNUAL REPORT

7 PROJECTS MASSAWA GOLD PROJECT CONTINUED

8 GOLD PROJECT The Sofia ore is free leaching and a recovery of 89% is possible with gravity and cyanide leaching. Oxide ores range from 91% recovery in Sofia to 85% recovery in NZ2. The overall recovery over the life of the project is expected to exceed 85%, with the earlier years reporting higher recoveries when the feed schedule is dominated by Massawa oxide material and Sofia ore. Approximately one quarter of the total feed material is from the Sofia deposit and will be hauled to the Massawa plant (5.8Mt), while just less than 30% of the material is from the refractory NZ (6.3Mt), and would be subject to Biox in the latter years of the project. The remaining 5.8Mt of fresh sulphide ore is from the CZ, and would be subjected to the flotation and ultra-fine grind circuit. TECHNICAL AND FINANCIAL ASSESSMENT 1 The technical and financial assessment of the project was updated during the year to include the latest available information. Operating costs have been updated based on HFO power generation on site of 17c/kWh and a total plant throughput of 2.4Mtpa, split into two streams of 1.2Mtpa each. Operating costs range from $18/t milled for Sofia to $36/t for the refractory ore of NZ2. An economic assessment, based on the key parameters summarised below, demonstrated the potential for the project to pass Randgold s investment filters: Total ore mined from Massawa and Sofia Main and North pits of 21.6Mt of ore at an average grade of 3.97g/t containing 2.75Moz of gold; Strip ratio of 7:1 to give total tonnes mined of 172Mt; Mining costs average of $3.28/t mined over the LoM; Haulage costs average of $3.2/ore tonne; Plant costs average of $23.5/ore tonne but include a range of costs dependant on ore feed and process route; G&A costs of $8.0/ore tonne milled over LoM, including outside engineering costs; Capital construction cost of $438 million; Ongoing capital of $38 million over LoM; and A closure cost of $20 million. A financial model was run using a $1000/oz gold price feeding the current mining schedule, together with a 3% royalty on revenue and a 5-year tax holiday, followed by corporate tax at a 25% rate, which produced a total net cash flow after tax of $458 million, and IRR of 18%. PROJECT SENSITIVITY TO GOLD PRICE AND DISCOUNT RATES Discount rate/ gold price $800/oz $1 000/oz $1 200/oz 0% $48 million $458 million $871 million 5% ($50 million) $249 million $550 million 10% ($107 million) $117 million $343 million 1 Technical and financial study completed is equivalent to JORC (2012) prefeasibility study. LOOKING FORWARD As the economic assessment is now approaching Randgold s required hurdle rate for investment, the project is being progressed to a full feasibility study. In 2017, the intention is to continue to drill out and expand the Sofia reserves to increase the portion of free leaching ore in the project, while simultaneously completing infill RC drilling of the Massawa CZ, which it is estimated will take 10 months to complete. In addition to the drilling highlighted above, work will be undertaken on the metallurgical optimisation of the different ore streams, pilot plant test runs of the refractory ore, mining optimisation and dilution versus production trade-offs on the final geological model. Updating the environmental and social impact assessment of the final project will also be undertaken. EXPLORATION The exploration programme at Sofia has revised the geological modelling for the area leading to a better understanding of the control on mineralisation. The Sofia mineralisation is open to the north and the south of the current resource and the new models have highlighted the potential for this mineralised trend to deliver further ounces to the project. The team is currently drilling a proximal step-out programme to expand the current resource as well as trenching along the structure in search of similar style targets. In addition to this, other advanced targets have been identified for follow up investigation, where the strategy will be to create a portfolio of satellite pit resources available for feeding the plant, providing flexibility in the mine plan and extending the LoM. A detailed summary of the exploration work completed during the year can be found in the exploration section of this annual report. ANNUAL REPORT