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Thursday, August 7, 2014

Rangold Quarterly Highlights...Revenue up 40% Year over Year

Gold sales for the quarter of $355.2 million decreased by 2% compared to the previous quarter as the result of a 2%
decrease in the number of ounces sold and a marginally lower average gold price received of $1 290/oz (Q1 2014:
$1 296/oz). Compared to the corresponding quarter of 2013, gold sales were up 41% as a result of a 48% increase in the
number of ounces sold offset by a 5% decrease in the average gold price received (Q2 2013: $1 363/oz). The additional
gold sales were a result of the strong performance from Loulo-Gounkoto during the quarter, as well as the contribution
from Kibali which started commercial production in Q4 2013.

Total cash costs for the quarter under review of $193.0 million were well contained and in line with the previous quarter
and up 31% from the corresponding quarter of 2013 as a result of the start of production at Kibali during Q4 of 2013.
Total cash cost per ounce increased by 2% quarter on quarter to $701/oz, but dropped by 12% compared to the
corresponding quarter of 2013. The increase in cost per ounce for the quarter compared to the previous quarter was the
result of lower production at Kibali on the back of a drop in throughput and recoveries as well as decreased grade and
higher mining costs at Morila offset by higher production and lower costs at the Loulo-Gounkoto complex. The decrease
in cash cost per ounce for the quarter compared to the corresponding quarter of 2013 reflects the increased production at
the Loulo-Gounkoto complex through higher grade and recoveries coupled with the production at Kibali, offset by lower
production and higher costs at both Morila and Tongon.

Profit from mining decreased by 5% to $162.3 million from the previous quarter due to the decrease in revenues and
increase in costs as mentioned above. Profit from mining increased by 54% on the corresponding quarter of 2013 (Q2
2013: $105.3 million) mainly due to the ramp-up of production at Kibali and increased production at the Loulo-Gounkoto
complex, offset by decreased production and higher costs at both Morila and Tongon.

Exploration and corporate expenditure of $13.6 million for the current quarter increased by 25% on the previous quarter
mainly due to an increase in exploration activity during the quarter, in advance of the rainy season in West Africa in the
third quarter. Exploration and corporate expenditure decreased by 12% on the corresponding quarter of 2013 due to
lower exploration expenditure.

Depreciation and amortisation of $31.7 million decreased by 13% against the previous quarter reflecting revisions to
estimates associated with the unit of production calculations to depreciate the assets over current life of mine.
Depreciation and amortisation was in line with the corresponding quarter of 2013.

Other income of $1.5 million decreased by 60% from the previous quarter of $3.6 million and 66% from the corresponding
quarter of 2013 of $4.3 million. Other income includes management fees from Morila and Kibali as well as operational
exchange gains accounted for in the previous quarter within other income compared to exchange losses in the current
quarter accounted for in other expenses. These arise from the settlement of invoices in currencies other than the US
dollar, as well as the translation of balances denominated in currencies such as South African rand, Canadian dollar and
the euro to the US dollar rate and reflect movements in these currencies during the quarter.

Share of profits from equity joint ventures decreased by $26.3 million from the previous quarter and $8.0 million on the
corresponding quarter in 2013 to $0.6 million. The decrease quarter on quarter is the result of reduced production and
higher costs at Kibali and Morila during the quarter. Earnings from Kibali were also impacted by increased depreciation,
as more assets were brought into production with the commissioning of the second mill stream, as well as increased
deferred taxation for the year to date. Share of equity joint ventures also includes profits from the group’s asset leasing
joint ventures which remained in line with the prior quarter.

Income tax expenses of $26.4 million increased by 15% quarter on quarter and increased by 302% from the
corresponding quarter in 2013. The increase from the prior quarter was due to increased production from the Loulo-
Gounkoto complex in the current quarter compared to the previous quarter. The increase from the corresponding quarter
in 2013 is the result of the end of Gounkoto’s tax holiday in June 2013.

Basic earnings per share decreased by 29% to $0.57 (Q1 2014: $0.80) compared to the prior quarter and increased by
14% from Q2 2013.

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