Kinross Gold Corporation

Kinross Gold Corporation

January 07, 2005 08:15 ET

Kinross Extends Crown Transaction Deadline, Invests $1 Million into Crown Resources Corporation


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KINROSS GOLD CORPORATION

TSX SYMBOL: K
NYSE SYMBOL: KGC

JANUARY 7, 2005 - 08:15 ET

Kinross Extends Crown Transaction Deadline, Invests $1
Million into Crown Resources Corporation

TORONTO, ONTARIO--(CCNMatthews - Jan. 7, 2005) - Kinross Gold
Corporation (TSX:K) (NYSE:KGC) ("Kinross") and Crown Resources
Corporation (OTCBB-CRCE) ("Crown") announced that they have signed an
amendment to extend the termination date of the previously announced
(November 20, 2003) definitive acquisition agreement (the "Agreement")
whereby Kinross will acquire Crown and its 100%-owned Buckhorn Mountain
gold deposit located in north central Washington State, USA,
approximately 67 kilometers by road from Kinross' Kettle River gold
milling facility.

With this amendment, the Agreement has been extended to May 31, 2005.
The Agreement was due to expire on December 31, 2004, but additional
time is necessary for Kinross to file with the Securities and Exchange
Commission ("SEC") a definitive registration statement.

Kinross has also agreed to fund a US$1.0 million private placement into
Crown. The private placement calls for Kinross to purchase 511,640
common shares of Crown for $1.9545 per share. Crown currently has
approximately 40.0 million shares outstanding. This private placement by
Kinross will not affect the exchange ratio of .2911 shares of Kinross
common stock for each share of Crown that was set in the Agreement.

On December 21, 2004 the U.S. Department of the Interior / Bureau of
Land Management ("BLM") issued Crown patents for nine mining claims at
the Buckhorn Mountain Project in Okanogan County, WA. Issuance of these
patents ends a 12 year long BLM review process of Crown's patent
application. The patents, which cover about 154 acres of land, transfer
the ownership of the surface of the mining claims from the federal
government to Crown Resources. Crown already owns the minerals on the
claims, which they have held since 1988.

Work continues to obtain permits for the Buckhorn Mountain Project. As
part of the permitting process, the U.S. Forest Service / Okanogan -
Wenatchee National Forest, and the Washington Department of Ecology are
preparing a Supplemental Environmental Impact Statement for the project.
Current estimates are to start construction of the mine in late 2005.

This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements
regarding potential mineralization and reserves, exploration results and
future plans and objectives of Kinross Gold Corporation, are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from Kinross' expectations are
disclosed under the heading "Risk Factors" and elsewhere in Kinross'
documents filed from time to time with the Toronto Stock Exchange, the
United States Securities and Exchange Commission and other regulatory
authorities.

Where to Find Additional Information about the Transaction:

This press release is not, and is not intended to be, a solicitation of
proxies or an offer of securities. Investors and security holders of
Kinross and Crown are urged to read the proxy statement/prospectus and
other relevant materials, when they become available, as they will
contain important information about Kinross, Crown and the proposed
acquisition. Kinross has filed a registration statement with the SEC
that contains a preliminary version of the proxy statement/prospectus
and other relevant materials, all of which is subject to completion and
change. This registration statement and any other documents filed by
Kinross or Crown with the SEC, are available free of charge at the SEC's
website at http://www.sec.gov. A copy of the final proxy
statement/prospectus will be mailed to all shareholders of Crown as of
the record date fixed for the Crown shareholders' meeting to approve the
transaction and a free copy of the joint proxy statement/prospectus and
other relevant materials may also be obtained from Kinross.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Kinross Gold Corporation
    Robert M. Buchan
    President and Chief Executive Officer
    (416) 365-5650
    or
    Kinross Gold Corporation
    Lars-Eric Johannson
    Executive Vice President and Chief Financial Officer
    (416) 365-2605
    or
    Kinross Gold Corporation
    Christopher T. Hill
    Vice President Investor Relations
    (416) 365-7254
    or
    Kinross Gold Corporation
    Tracey M. Thom
    Manager Investor Relations
    (416) 365-1362
    Email: info@kinross.com