Kinross Gold Corporation
TSX : K
NYSE : KGC

Kinross Gold Corporation

August 10, 2011 16:15 ET

Kinross Reports 2011 Second Quarter Results

Record Production, Revenue and Margins; Adjusted Operating Cash Flow(5) Up 46%

Adjusted Net Earnings(1), (5) More Than Double

Tasiast Drill Results Increase Resource Size and Confidence, Suggest Significant New Opportunities

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Kinross Gold Corporation (TSX:K)(NYSE:KGC) today announced its results for the second quarter ended June 30, 2011.

(This news release contains forward-looking information that is subject to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 11 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

Highlights


--  Production(2) in the second quarter of 2011 was a record 676,245 gold
    equivalent ounces, a 26% increase over Q2 2010. The Company remains on
    track to produce 2.6 - 2.7 million attributable gold equivalent ounces
    in 2011. 
--  Revenue for the quarter was $987.8 million, compared with $696.6 million
    in the second quarter of 2010, an increase of 42%, with an average
    realized gold price of $1,449 per ounce sold compared with $1,158 per
    ounce sold in Q2 2010. 
--  Production cost of sales per gold equivalent ounce(3) was $576 for Q2,
    compared with $494 for Q2 2010. The full-year production cost of sales
    per ounce forecast is expected to be toward the lower end of the
    previously-stated guidance range of $565 - 610. Production cost 
    of sales per gold ounce on a by-product basis was $513 in Q2, 
    compared with $456 in Q2 2010. 
--  Kinross' attributable margin per ounce sold(4) was $873 in Q2, 
    compared with $664 in Q2 2010, an increase of 31%. 
--  Adjusted operating cash flow(5) for Q2 was $413.1 million, a 46% 
    increase over Q2 2010. Adjusted operating cash flow per share was $0.36
    in Q2, versus $0.40 for Q2 2010. 
--  Adjusted net earnings(1), (5) more than doubled to $226.5 million,
    compared with $111.4 million in Q2 2010. Adjusted net earnings per share
    were $0.20 in Q2, versus $0.16 per share for Q2 2010. Reported net
    earnings(1) were $247.4 million, or $0.22 per share in Q2, compared with
    $110.4 million, or $0.16 per share, for Q2 2010. 
--  Drilling at Tasiast has upgraded 6.4 million gold ounces of inferred
    resource to measured and indicated mineral resource categories, and
    added approximately 2.9 million gold ounces to the total mineral
    resource inventory. Recent drill results from within the West Branch and
    Piment zones also indicate significant new opportunities beyond those
    incorporated in the initial project scoping study, including potential
    for supplemental heap leach production and a potential new zone of
    mineralization that, if fully delineated, may result in an expansion to
    the proposed pit. 
--  The Company is extending its Tasiast feasibility study to analyze and
    incorporate this new drill data into the project scope, while exploring
    infrastructure development options to reduce project capital costs,
    which have been subject to industry-wide cost pressures. The feasibility
    study extension is not expected to impact the project's development
    schedule, which remains as previously disclosed, with construction
    expected to commence mid-2012 and production start-up targeted for early
    2014. 
--  Kinross' other growth projects remain on track. At Fruta del Norte
    (FDN), the underground exploration decline is advancing on schedule and
    negotiations with the Ecuadorian government for an exploitation contract
    continue. At Lobo-Marte, approximately 70% of the 20,000 metre drilling
    is now complete and the feasibility study remains on schedule. At
    Dvoinoye, development of the exploration decline and the construction of
    surface facilities are advancing as planned. At Paracatu, the third
    ball mill was successfully commissioned and construction of the fourth
    ball mill is proceeding as planned. 
--  Recent exploration results have been highly encouraging, including
    positive results at Pompeya and Puren West at La Coipa; continued
    positive results at Valy (Lobo-Marte); and indications of deep
    mineralization beneath the Obra pit at Chirano. 
--  Kinross has received binding commitments for a $200 million non-recourse
    loan further to the previously-announced financing in connection with
    increasing the Company's ownership of Kupol to 100%. 
--  The Board of Directors declared a dividend of $0.06 per share payable
    on September 30, 2011 to shareholders of record at the close of business
    on September 23, 2011, a 20% increase from the previous dividend paid 
    on March 31, 2011. 

CEO Commentary

Tye Burt, President and CEO, made the following comments in relation to second quarter 2011 results:

"Solid performance from our operations - notably Kupol, Maricunga, and Fort Knox - helped Kinross to deliver record production, revenue, and margins in the second quarter amid continuing strong gold prices. Despite industry-wide cost pressures, our second quarter cost of sales remained at the low end of our guidance range.

"We continue to believe that Tasiast is one of the world's great gold projects and a long-term foundation asset for Kinross. Our drilling campaign at Tasiast is yielding exciting results which not only increase our confidence in the resource, but suggest significant new opportunities and potential project expansions which warrant further study. We continue to make good progress advancing our other growth projects at Dvoinoye, Fruta del Norte, and Lobo-Marte, though like the rest of the industry, we are experiencing pressure on capital costs. Meanwhile, our strategic focus on building a high-quality exploration pipeline is delivering highly encouraging results at a number of targets across the company.

"We have decided to increase our dividend by 20%, reflecting our confidence in the long-term prospects for the gold price and in our industry-leading growth profile."

Financial results

Summary of financial and operating results


----------------------------------------------------------------------------
                                Three months ended          Six months ended
                                          June 30,                  June 30,
                        ----------------------------------------------------
(dollars in millions,                                                       
 except per share and                                                       
 per ounce amounts)              2011      2010(i)         2011      2010(i)
----------------------------------------------------------------------------
Total(a) gold equivalent                                                    
 ounces(b) - produced         696,631      585,027    1,397,110    1,177,391
Total gold equivalent                                                       
 ounces - sold                704,447      603,376    1,423,024    1,222,122
Attributable(c) gold                                                        
 equivalent ounces -                                                        
 produced                     676,245      538,270    1,319,102    1,082,404
Attributable(c) gold                                                        
 equivalent ounces -                                                        
 sold                         685,823      551,958    1,346,611    1,119,056
Metal sales               $     987.8  $     696.6  $   1,924.8  $   1,354.2
Production cost of                                                          
 sales(d)                 $     402.6  $     288.4  $     784.2  $     563.2
Depreciation, depletion                                                     
 and amortization         $     149.9  $     116.9  $     303.0  $     247.5
Operating earnings        $     358.0  $     239.6  $     688.9  $     450.3
Net earnings attributed                                                     
 to common shareholders   $     247.4  $     110.4  $     497.5  $     291.7
Basic earnings per share  $      0.22  $      0.16  $      0.44  $      0.42
Diluted earnings per                                                        
 share                    $      0.22  $      0.16  $      0.44  $      0.42
Adjusted net earnings                                                       
 attributed to common                                                       
 shareholders (e)         $     226.5  $     111.4  $     401.8  $     211.1
Adjusted net earnings                                                       
 per share (e)            $      0.20  $      0.16  $      0.35  $      0.30
Cash flow provided from                                                     
 operating activities     $     361.3  $     229.9  $     696.4  $     458.6
Adjusted operating cash                                                     
 flow (e)                 $     413.1  $     282.5  $     809.8  $     521.0
Adjusted operating cash                                                     
 flow per share (e)       $      0.36  $      0.40  $      0.71  $      0.75
Average realized gold                                                       
 price per ounce          $     1,449  $     1,158  $     1,388  $     1,111
Consolidated production                                                     
 cost of sales per                                                          
 equivalent ounce sold                                                      
 (f)                      $       572  $       478  $       551  $       461
Attributable(c)                                                             
 production cost of                                                         
 sales per equivalent                                                       
 ounce sold (g)           $       576  $       494  $       560  $       475
Attributable production                                                     
 cost of sales per ounce                                                    
 sold on a by-product                                                       
 basis (h)                $       513  $       456  $       493  $       434

(a)  "Total" includes 100% of Kupol and Chirano production.                 
(b)  "Gold equivalent ounces" include silver ounces produced and sold       
     converted to a gold equivalent based on the ratio of the average spot  
     market prices for the commodities for each period. The ratio for the   
     second quarter of 2011 was 39.67:1, compared with 65.31:1 for the      
     second quarter of 2010 and for the first six months of 2011 was        
     41.47:1, compared with 65.49:1 for the first six months of 2010.       
(c)  "Attributable" includes Kinross' share of Kupol (75% up to April 27,   
     2011, 100% thereafter) and Chirano (90%) production.                   
(d)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the consolidated financial statements less " depreciation, depletion   
     and amortization", and is generally consistent with " Cost of sales" as
     reported under CDN GAAP prior to the adoption of IFRS.                 
(e)  "Adjusted net earnings attributed to common shareholders", "Adjusted   
     net earnings per share", "Adjusted operating cash flow" and "Adjusted  
     operating cash flow per share" are non-GAAP measures. The              
     reconciliation of these non-GAAP financial measures is located in this 
     news release.                                                          
(f)  "Consolidated production cost of sales per ounce" is a non-GAAP measure
     and is defined as production costs as per the consolidated financial   
     statements divided by the total number of gold equivalent ounces sold. 
(g)  "Attributable production cost of sales per ounce" is a non-GAAP measure
     and is defined as attributable production cost of sales divided by the 
     attributable number of gold equivalent ounces sold.                    
(h)  "Attributable production cost of sales per ounce on a by-product basis"
     is a non-GAAP measure and is defined as production costs as per the    
     consolidated financial statements less attributable(c) silver revenue  
     divided by the total number of attributable(c) gold ounces sold.       
(i)  Prior quarter figures have been restated to conform to IFRS.           
----------------------------------------------------------------------------

Kinross produced 676,245 attributable gold equivalent ounces in the second quarter of 2011, a 26% increase over the second quarter of 2010, mainly due to additional production from Kupol, as the Company increased its ownership to 100% on April 27, 2011, and from the West Africa operations, which the Company acquired on September 17, 2010.

Production cost of sales per gold equivalent ounce was $576 compared with $494 for the second quarter of 2010, an increase of 17%, mainly due to increases in labour costs, diesel and power costs, and royalties. Production cost of sales per ounce for the full year are expected to be toward the lower end of the previously-stated guidance range of $565 - 610. Production cost of sales per gold ounce on a by-product basis was $513 in the second quarter of 2011, compared with $456 in Q2 2010, and based on Q2 2011 attributable gold sales of 606,896 ounces and attributable silver sales of 3,147,457 ounces.

Revenue from metal sales was a record $987.8 million in the second quarter of 2011, versus $696.6 million during the same period in 2010, an increase of 42%, due to an increase in total ounces produced and a higher average realized gold price. The average realized gold price was $1,449 per ounce in Q2, compared with $1,158 per ounce for Q2 2010, an increase of 25%.

Kinross' margin per gold equivalent ounce sold was a record $873 for the quarter, an increase of 31% compared with the second quarter of 2010, due mainly to a higher realized gold price.

Adjusted operating cash flow(5) was $413.1 million for the quarter, or $0.36 per share, compared with $282.5 million, or $0.40 per share, for Q2 2010. Cash and cash equivalents were $1,080.3 million as at June 30, 2011, compared with $1,466.6 million as at December 31, 2010.

Adjusted net earnings (1), (5) were $226.5 million, or $0.20 per share for Q2 2011, compared with $111.4 million, or $0.16 per share, for Q2 2010.

Reported net earnings(1) were $247.4 million, or $0.22 per share, for Q2 2011, compared with $110.4 million, or $0.16 per share, for Q2 2010.

Capital expenditures were $415.6 million for Q2 2011, compared with $120.5 million for the same period last year, an increase due mainly to project-related expenditures at Tasiast, Chirano, Paracatu, and Maricunga.

Further to Kinross' previously announced financing in connection with the increase in its ownership of Kupol to 100%, the Company has now received binding commitments for the $200 million non-recourse loan from a group of international financial institutions. The commitments are subject to completion of customary due diligence and conditions precedent to closing. Closing is expected to occur in 2011.

Operating results

Mine-by-mine summaries of second quarter 2011 operating results may be found on pages 15 and 19 of this news release. Highlights include the following:


--  North America: Operations in North America had a strong second quarter,
    largely attributable to a year-over- year increase in tonnes processed,
    despite the expected reduction in grades at all three mines. In
    addition, Fort Knox benefitted from earlier stacking onto the heap
    leach.

--  Russia: Performance at Kupol continued to be strong in the second
    quarter. Year-over-year production increased by 21%, largely as a result
    of Kinross' increase in ownership to 100% on April 27, 2011, and more
    tonnes processed. An expected decline in gold grade was offset by a more
    favourable gold/silver ratio due to higher silver prices and strong
    silver recovery levels. Silver accounted for approximately 23% of Kupol
    gold equivalent production in the quarter.

--  South America: The region's production was higher in Q2 2011 compared
    with the same period last year mainly due to significant production
    increases of 63% at Maricunga and 45% at La Coipa. Higher processing
    levels at both sites, along with strong silver production at La Coipa
    and improved heap leach performance at Maricunga were the main drivers
    of the production increase. At Paracatu, production was less than the
    second quarter of the previous year mainly due to mine sequencing,
    maintenance and lower throughput due to a period of processing harder
    ore. However, tonnes processed increased compared to the previous
    quarter. The Company expects Paracatu's production to improve in the
    second half of the year, as the third ball mill reached full capacity in
    June. 

--  West Africa: Production was lower than the previous quarter, mainly due
    to expected lower grades at both Tasiast and Chirano. Grades are
    expected to improve at both operations in the third quarter. Tonnes
    mined at Tasiast in the second quarter increased by approximately 55%
    over the first quarter of 2011, and tonnages are expected to continue to
    increase through the remainder of the year as mining activity continues
    to ramp up as part of the expansion project. 

Project update and new developments

The forward-looking information contained in this section of the release is subject to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information on page 11 of this news release.

Growth projects at sites

Tasiast expansion project

The Company continued its aggressive drilling program at Tasiast in the first half of 2011, gathering a large amount of new drill data beyond that incorporated in the initial project scoping study. Results from the drilling program continue to be very encouraging, increasing geological confidence in the mineral resource estimate, adding to the size of the overall mineral resource estimate, and indicating the potential for additional areas of mineralization beyond those incorporated in the initial project mine plan.

Based on recent drill results and other emerging opportunities, outlined below, Kinross believes there is significant potential to optimize the project and enhance overall economics in a number of key areas. In order to allow proper analysis of these emerging opportunities, and to potentially incorporate them into an optimized project configuration, work on the feasibility study will be extended until the end of the first quarter of 2012. However, this extension is not expected to impact the project's overall development schedule, with construction expected to commence mid-2012 and production start-up targeted for early 2014.

Twenty-three core holes have been drilled outside the current mineral resource area included in the Tasiast mineral resource update as of June 30, 2011 (see Appendix 1 of this news release for detailed summary). Seventeen holes were completed under the Piment area targeting new greenschist-style mineralization and six holes were completed down plunge of mineralization at West Branch. Results have been received for six of the 23 holes. Detailed descriptions of these results may be found in the Exploration update and Appendix 2 of this news release. Results of infill drilling incorporated in the updated mineral resource estimation are not included, nor are results from the latest phases of district drilling north and south of the mine, which were incomplete at the time of preparation of this news release.

Key project highlights are as follows:

Mineral resource update: Infill exploration drilling of greenschist mineralisation at West Branch has significantly increased both the geological confidence and overall size of the mineral resource estimate. Compared to year- end 2010, approximately 6.4 million gold ounces have been upgraded from inferred to measured and indicated categories of mineral resource. Measured and indicated mineral resources now total approximately 9.1 million ounces, a more than fourfold increase since year-end 2010. In addition, approximately 2.9 million gold ounces have been added to the total mineral resource estimates (comprising proven and probable mineral reserves, measured and indicated mineral resources, and inferred mineral resources), an increase of 16% in total mineral resources and reserves since year-end 2010. The extension of the feasibility study will allow incorporation of additional drill results into the project model and economics. A comparison of changes in the Tasiast mineral reserve and mineral resource estimate from December 31, 2010(6) to June 30, 2011, is summarized below:


----------------------------------------------------------------------------
Category                        December 2010              June 2011        
----------------------------------------------------------------------------
                             Tonnes   Grade  Ounces   Tonnes   Grade  Ounces
                               (kt)   (g/t)   (koz)     (kt)   (g/t)   (koz)
                          --------------------------------------------------
Proven and Probable                                                         
 Mineral Reserve            128,916    1.82   7,563  128,916    1.82   7,563

Measured and Indicated                                                      
 Mineral Resource            96,334    0.67   2,088  237,300    1.19   9,050

Inferred Mineral Resource   182,805    1.47   8,615  218,903    0.65   4,590
----------------------------------------------------------------------------

Please refer to the Mineral Reserve and Mineral Resource table and corresponding notes located in Appendix 1 at the end of this news release.

Potential Piment orebody extensions and mine plan expansion: Encouraging results from drill holes beneath the Piment zone indicate the potential for additional mineralization that, if fully delineated, may result in a larger orebody than previously considered. This could provide justification to expand the existing mine plan and pit model. These results warrant further analysis and consideration in the project feasibility study.

Potential heap leach opportunity at West Branch: In addition to the higher grade greenschist mill ore contained in the West Branch mine plan of the project scoping study, recent drilling has confirmed the presence of lower grade sulphide mineralisation enveloping the main West Branch orebody in the existing pit model which may be amenable to crushing and heap leaching. If so, this would potentially improve the strip ratio and project economics by converting material previously considered waste rock into ore. The potential for a supplemental heap leach facility is now being studied as part of the project feasibility study.

Potential deep extension of West Branch orebody: Encouraging results from holes beneath the existing West Branch pit model confirm the potential for an extension to the higher grade greenschist mineral resource.

Drilling encounters further mineralization at targets north and south of the mine: Completion of the next phase of drilling in the Tasiast Sud area 10 kilometres south of the mine yielded further encouraging results at the C69 and Charlize targets. Additional work is required to fully understand the significance of the new data and the Company is planning more drilling to evaluate mineral resource potential at both targets. Drilling continued at C67 (5 kilometres north of Tasiast) during the quarter; however, assay results were not available at the time of preparation of this news release.

Infrastructure opportunities: The Company is exploring new opportunities to optimize Tasiast project economics through infrastructure development options, which will require further detailed analysis as part of the project feasibility study. These include potential strategic partnerships with third parties to supply either natural gas or liquefied natural gas (LNG) to generate power for the mine site. The natural gas options are potentially more attractive than the on-site Heavy Fuel Oil (HFO) option contemplated in the project scoping study, both in terms of initial project capital and ongoing operating costs.

Project cost update: The Company expects upward pressure on capital and operating costs similar to those being experienced in the current economic environment by the mining industry globally. These are due primarily to increased labour, equipment and commodity costs. Based on a preliminary analysis, the Company currently expects higher capital expenditures of $500 million to $1 billion above the original aggregate estimate of approximately $2.7 billion (comprising $2.2 billion in initial capital and contingency, and $500 million in additional fleet purchases) in the project scoping study. Subject to further study and analysis, Kinross believes there is the potential to offset a significant portion of additional capital and operating costs by pursuing the natural gas options described above. The Company will provide a more detailed estimate of project expenditures as part of the project feasibility study.

Process plant development: Basic and detailed engineering has commenced on the 60,000 tpd process plant and associated process infrastructure facilities, which are expected to bring total capacity up to 68,600 tpd. As outlined in the fourth quarter 2010 news release, the proposed expansion plant is a conventional gold cyanidation plant, consisting of primary crushing, grinding, gravity separation, carbon-in-leach cyanidation and cyanide destruction, with a design throughput of approximately 60,000 tonnes per day. The expected capital cost of the plant is approximately $500 million. It is anticipated that construction will begin in the first half of 2012. In addition to mills and crushers that have already been acquired, purchasing of equipment is ongoing.

Procurement and capital spending: As of the end of July, the Company had placed orders for processing and mine equipment including one 40-foot SAG mill; two 27-foot ball mills; a 16 MW power plant; 38 Caterpillar 793 haul trucks (which are expected to bring the site complement up to 50 haul trucks by 2013, the fleet required for the first phase of mining and stripping in the expansion project); five hydraulic shovels; and, eight track dozers and three wheel dozers. Capital commitments to the end of July for mining, processing and power generation equipment total $515 million ($418 million as at June 30, 2011), with commitments expected to be approximately $1.0 billion by year-end. Total actual spending by year-end is expected to be approximately $400 million. This includes expected advance payments to suppliers of approximately $190 million for the full year, compared with the earlier forecast of approximately $130 million in advance payments to suppliers.

Permitting: Permitting in support of the expansion project is proceeding on schedule. Environmental Impact Notices (EINs) for initial on-site improvements have been approved by the Mauritanian government authorities. The Phase 1 Environmental Impact Assessment (EIA) for on-site improvements has been submitted to government authorities for their review.

Progress on associated project activities: Work continues on other aspects of the expansion project and upgrades to the Tasiast operation, including the following:


--  Camp capacity is being expanded, with 390 beds already completed this
    year, and an additional 720 beds to be completed by year-end, which is
    expected to bring total camp capacity to approximately 2,400. 
--  Construction of the Piment and West Branch dump leach facility is
    approximately 50% complete as of the end of July. The dump leach will
    include five cells, with commissioning of the first cell expected late
    in the third quarter of 2011. 
--  Construction of a new ADR (Adsorption, Desorption and Refining) plant to
    treat gold solution from the Piment and West Branch dump leach facility
    was 74%
    complete as of the end of July. The plant is scheduled for commissioning
    in the fourth quarter of 2011. 
--  The Company has identified a preferred supplier for its mining fleet
    maintenance and replacement parts and the training of maintenance
    mechanics at Tasiast, and is in discussion regarding the potential terms
    of such an arrangement. 
--  The majority of the Tasiast project team has been recruited, including
    an experienced Project Director, four Area Managers, and associated
    support staff. 

Dvoinoye

Key project development activities for 2011 at Dvoinoye are proceeding on schedule. The feasibility study remains on schedule for completion in the first quarter of 2012. Processing of Dvoinoye ore at Kupol remains on target to commence in the second half of 2013.

Exploration and engineering drilling continued throughout the quarter to define further mineral reserves and mineral resources, with 24,900 metres of drilling completed as of the end of the second quarter. Drilling will commence on the surrounding Vodorazdelnaya license in Q3.

Approximately 250 metres of a one kilometre target for underground decline development in 2011 were completed as of the end of the second quarter. Fabrication of the permanent camp is more than 50% complete and awaiting shipment. Fabrication of the truck shop and water storage buildings is complete and also on target for delivery to facilitate the 2011 construction schedule. Other project development activities include commissioning of selected mining equipment and further construction of facilities at the mine portal, and initiation of earthworks at the truck shop, fuel farm, water storage and powerhouse sites. Procurement activities and placement of contracts to facilitate construction of surface facilities and infrastructure are progressing on target. Basic engineering and procurement activities are continuing for other remaining site facilities including the powerhouse, administration building and water treatment facility.

Paracatu ball mills

The Paracatu third ball mill was successfully commissioned in early June and reached full production within one month of commissioning, well in advance of the projected four month ramp-up schedule.

Engineering on the fourth Paracatu ball mill is at 81% as of the end of July. Site excavation commenced in late May, and construction of the ball mill foundation began in early July. Final delivery of all mill components is expected in late August. The project remains on target to be operational in the first half of 2012.

Maricunga SART plant

Construction of the Maricunga SART (Sulphidization, Acidification, Recycling and Thickening) plant is 55% complete as of the end of July. Severe winter storms in the region have resulted in a schedule delay, and the project is now targeted for completion in the first quarter of 2012.

New developments

Lobo-Marte

At Lobo-Marte, approximately 70% of the 20,000 metre drill campaign for 2011 is now complete, and drilling will recommence at the end of the winter season.

The project feasibility study is on schedule for completion in the fourth quarter of 2011. Geotechnical and mine block models in support of the feasibility study are on target to be completed in the third quarter. The updated capital expenditure estimate to be included in the project feasibility study is expected to reflect industry-wide cost pressures, while the Company is seeking opportunities to optimize project economics and offset expected additional costs.

The EIA for the project was submitted at the end of June. The project remains on schedule to commence commissioning in 2014.

Fruta del Norte

Construction of the underground exploration decline at Fruta del Norte (FDN) is well underway, with construction of the high wall for the portal complete and the portal now open. Approximately 70 metres of the decline have been developed as of the end of July, and the Company remains on target to complete approximately 600 metres by year-end 2011, of 1,750 metres in total.

The initial EIAs for building and operating the FDN mine were submitted in May, and the EIA and related Environmental License for advanced exploration at Colibri were approved. The Company remains on schedule to complete a feasibility study in the second half of 2011, and continues to target start-up of the mine in late 2014. Similar to Tasiast and Lobo-Marte the updated capital expenditure estimate in the project feasibility study is expected to reflect industry-wide cost escalation, which the Company is seeking to offset.

Negotiations with the Ecuadorian government on an exploitation contract for FDN are continuing, and the Company expects to commence negotiations on an investment protection agreement by the beginning of the fourth quarter. The Company's goal is to conclude enforceable and balanced agreements that provide a fair share of benefits to the people of Ecuador and Kinross shareholders.

Cerro Casale

Barrick Gold Corporation has provided an update on the Cerro Casale project in its second quarter news release, including a revised capital cost estimate reflecting industry-wide cost escalation. Despite an expected delay in construction and start-up for Cerro Casale, Kinross believes that the project economics remain attractive, given the expected low cash costs.

Exploration update

Total exploration expenditures for the second quarter of 2011 were $48.3 million, including $14.9 million of expensed exploration costs and $33.4 million of capitalized exploration costs. In the second quarter of 2010, expensed exploration costs amounted to $14.2 million, while $9.3 million in exploration costs were capitalized. Year-to-date expenditures total $90.7 million, comprising $35.7 million in expensed exploration costs and $55.0 million in capitalized exploration costs.

Exploration results in the first half of 2011 have been encouraging, reflecting the Company's strategic focus on building a pipeline of quality projects by acquiring the best available land positions in gold districts around the world. To leverage its recent successes, Kinross plans to increase its total aggregate exploration expenditure by approximately $10 to $20 million for the remainder of 2011, above the previously stated forecast of $175 million in total 2011 expensed and capitalized exploration expenditures.

Kinross was active on 30 brownfield and greenfield initiatives in the second quarter of 2011, with drilling across all projects totalling approximately 194,000 metres. Total aggregate drilling year-to-date is approximately 363,000 metres. Highlights of the second quarter exploration program include the following:

- Tasiast: Kinross continued its aggressive drill campaign with 15 core and 8 reverse circulation (RC) rigs in operation. Infill drilling at West Branch was largely completed, with all planned mineral resource upgrade, metallurgical and geotechnical drilling completed by the end of Q2. Condemnation drilling is 85% complete. A total of 124,000 metres were completed in Q2, and 250,000 metres have been completed for the year-to-date.

Assay result turn-around times continue to be slow. Analyses of samples from infill holes were prioritized for inclusion in the resource update described on page 4 of this news release. Assay results of exploration drilling beyond the boundaries of the Tasiast resource area are starting to return, and are presented below. A total of 64,000 samples were waiting to be analyzed at the end of the quarter, representing the majority of exploration drilling not included in the resource update. Completion of the mine-site SGS "Superlab" is anticipated in September and will significantly accelerate turn-around times on assay results.

Results have been received for six of 23 holes targeting down-plunge extensions at West Branch and potential new greenschist-style mineralization along strike of West Branch. Drilling on a section 500 metres north of West Branch intersected greenschist rocks hosting mineralization in a new position along the Tasiast structure (Figure 1 - http://www.kinross.com/media/219621/figure%201%20q2%202011.pdf). The first hole (TA05149DD) returned nine metres grading 4.3 grams per tonne gold (starting 817 metres down hole) within a broad (approx. 30 metre wide) envelope of low grade mineralization. Assay results are awaited for a second hole on the section which intersected the projected position of mineralization 200 metres down dip the first hole. Based on the geologic model developed by Kinross at West Branch, these recent results are significant because the holes are interpreted to have intersected the structure near the edge of a potential new greenschist-style ore shoot.

Drilling 350 metres down-plunge of the deepest holes incorporated in the latest mineral resource update has encountered the following positive results at West Branch (refer to Figure 1 - http://www.kinross.com/media/219621/figure%201%20q2%202011.pdf):


--  61 metres grading 1.8 grams per tonne gold from 1,029 metres, including
    38 metres grading 2.5 grams per tonne gold (hole TA05152RD)  
--  45 metres grading 1.2 grams per tonne gold from 974 metres (hole
    TA05154RD)  
--  32 metres grading 1.6 grams per tonne gold from 1,166 metres (hole
    TA05155RD)  
--  56 metres grading 1.6 grams per tonne gold from 1,038 metres (hole
    TA05162RD) 

The results demonstrate continuity of the Greenschist Zone at West Branch and potential for future deep resource growth.

Complete drill results for exploration drill holes not included in the mineral resource update may be found in Appendix 2 of this news release.

Drilling in the Tasiast Sud area, 10 kilometres south of the mine, focused on testing extensions of mineralization intersected in previous drilling at the C69 and Charlize targets. Approximately 3,500 metres were completed with initial encouraging results requiring follow-up drilling in order to fully evaluate mineral resource potential. Over 3,900 metres of drilling was completed at the C67 target, located five kilometres north of the mine. The Company is awaiting assay results to guide planning of further work.

Additional resource drilling will continue in Q3 to upgrade and expand iron formation-hosted inferred resources. Areas of infill focus include the footwall zone at West Branch and dip extensions of ore bodies at Piment Central, Piment Sud Nord, and Piment Sud Sud.

- La Coipa: Four rigs (two core and two RC) continued drilling, completing 8,722 metres during Q2. Infill and step-out drilling was completed at Portezuelo and Ladera Farellon to upgrade resources and to test potential extensions of mineralization. Encouraging results were returned at Pompeya, located three kilometres south of the Puren pit. Recent drilling has intersected oxide gold mineralization over an area of one km by 0.4 kilometres. Drilling at Puren West, a mixed oxide-sulfide target, one kilometre south of the Puren mine, also returned significant positive results. Mineralization is presently defined over an area of 0.6 km by 0.1 kilometres and is open in both directions along strike. Step-out drilling will continue to evaluate the full extent of mineralization at both targets.

- Chirano: Two drill rigs were active at Chirano throughout the second quarter, completing 4,722 metres of exploration drilling, and a total of 10,200 metres year-to-date. Drilling focused on the Obra, Paboase, and Ekyuiabo targets. Initial positive results at Obra indicate potential deep mineralization beneath the Obra pit. Two drill rigs are now testing for the presence of a high grade trend down-plunge of the current ore body. Two additional drills are currently mobilizing to Chirano from Tasiast. A total of three rigs will continue drilling at Chirano for the remainder of the year.

- Fruta del Norte/Condor Project: The Company continued surface exploration (mapping and geochemical sampling) along the Las Penas fault zone outside of the FDN project area in order to identify new targets in the district.

- Kupol: Drilling at Kupol continued with mineral resource conversion at the Northern Extension Zone as well as exploration drilling for deeper ore positions. Drilling was also undertaken at the TB-2 (four kilometres northwest of the mine), Moroshka (four kilometres east of the mine), and Fevral targets (two kilometres south of the mine). A total of 11,162 metres of drilling was completed during Q2.

- Dvoinoye: Sixteen drill holes for a total of 13,700 metres were completed during the quarter. Drilling focused on upgrading inferred mineral resources to indicated classification at Zone 37. Preparation for the summer field season was completed at Vodorazdelnaya with drilling scheduled to commence in Q3.

- Lobo-Marte: Eleven holes were completed at Lobo-Marte for a total of 4,448 metres. Drilling was suspended for the winter and will resume in September. Drilling at Valy continued to encounter strong mineralization. Well mineralized intervals start from surface and returned values characteristic of porphyry gold deposits known elsewhere in the Maricunga district.

- Fort Knox, Kettle River and Round Mountain: Two RC and one core drill continued on Phase 8 drilling at Fort Knox (13,000 metres); two core drills continued at Kettle River (9,384 metres); and drilling at Round Mountain has completed 17 pre-collard core holes (13,100 metres) at the NW deep extension.

- White Gold/Ross: Core drilling commenced on the Ross project in early May and 3,346 metres were completed by early July. The drill was mobilized to White Gold after quarter end.

New appointment to Board of Directors

The Board of Directors of Kinross has appointed Kenneth Irving as a Director. Mr. Irving was CEO of Irving Oil for more than 10 years, leading the company's operations and business development initiatives, including expansion of the refining and trading business; entering the electric power and LNG terminal business; becoming the largest exporter of petroleum products into the United States; and leading the industry with many environmental performance improvements.

Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the Cautionary Statement on Forward-Looking Information located on page 11 of this news release.

Kinross expects to be within its previously stated full-year production guidance of 2.6 - 2.7 million gold equivalent ounces for 2011, and toward the lower end of its previously stated full-year cost guidance of $565 - 610 per gold equivalent ounce.

Kinross expects its capital expenditures for the full year to be within the previously stated guidance of $1.5 billion. The Company also expects to make approximately $190 million in advance payments to suppliers, compared to previous guidance of $130 million, primarily as a result of accelerated purchases for the Tasiast expansion project.

The Company plans to increase its total aggregate exploration expenditure by approximately $10 to $20 million for the remainder of 2011, above the previously stated forecast of $175 million in total expensed and capitalized 2011 exploration expenditures.

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, August 11, 2011 at 8 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:


Canada & US toll-free - 1-800-319-4610                                      
Outside of Canada & US - 1-604-638-5340                                     

Replay (available up to 14 days after the call):


Canada & US toll-free - 1-800-319-6413; Passcode - 3310 followed by #.      
Outside of Canada & US - 1-604-638-9010; Passcode - 3310 followed by #.     

You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on our website at www.kinross.com.

This release should be read in conjunction with Kinross' second quarter 2011 Financial Statements and Management's Discussion and Analysis report at www.kinross.com.

Kinross' unaudited second quarter 2011 statements have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the statements free of charge upon request to the Company.

About Kinross Gold Corporation

Kinross is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and the United States, employing approximately 7,500 people worldwide.

Kinross' strategic focus is to maximize net asset value and cash flow per share through a four-point plan built on: delivering mine and financial performance; attracting and retaining the best people in the industry; achieving operating excellence through the "Kinross Way"; and delivering future value through profitable growth opportunities.

Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Cautionary statement on forward-looking information

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, but not limited to, any information as to the future financial or operating performance of Kinross, constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for "safe harbour" under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, statements with respect to: possible events, the future price of gold and silver, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, permitting timelines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words "plans", "proposes", "expects" or "does not expect", "is expected", "budget", "scheduled", "envision", "estimates", "forecasts", "guidance", "opportunity", "potential", "targets", "models", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might", or "will be taken", "occur" or "be achieved" and similar expressions identify forward-looking statements.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our most recently filed Annual Information Form and our most recently filed Management's Discussion and Analysis as well as: (1) there being no significant disruptions affecting the operations of the Company or any entity in which it now or hereafter directly or indirectly holds an investment, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Paracatu (including, without limitation, land acquisitions for and permitting and construction of the new tailings facility) being consistent with our current expectations; (3) development of and production from the Phase 7 pit expansion and heap leach project at Fort Knox continuing on a basis consistent with Kinross' current expectations; (4) the viability, permitting and development of the Fruta del Norte deposit being consistent with Kinross' current expectations; (5) political and legal developments in any jurisdiction in which the Company, or any entity in which it now or hereafter directly or indirectly holds an investment, operates being consistent with its current expectations including, without limitation, the implementation of Ecuador's new mining and investment laws and related regulations and policies, and negotiation of an exploitation contract and an investment protection contract with the government, being consistent with Kinross' current expectations;

(6) permitting, construction, development and production at Cerro Casale being consistent with the Company's current expectations; (7) the viability, permitting and development of the Lobo-Marte project, including, without limitation, the metallurgy and processing of its ore, being consistent with our current expectations; (8) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian rouble, Mauritanian ouguiya, Ghanaian cedi and the U.S. dollar being approximately consistent with current levels; (9) certain price assumptions for gold and silver; (10) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (11) production and cost of sales forecasts for the Company, and entities in which it now or hereafter directly or indirectly holds an investment, meeting expectations; (12) the accuracy of the current mineral reserve and mineral resource estimates of the Company and any entity in which it now or hereafter directly or indirectly holds an investment; (13) labour and materials costs increasing on a basis consistent with Kinross' current expectations; (14) the development of the Dvoinoye and Vodorazdelnaya deposits being consistent with Kinross' expectations; (15) the viability of the Tasiast and Chirano mines, and the permitting, development and expansion of the Tasiast and Chirano mines on a basis consistent with Kinross' current expectations;

and (16) access to capital markets, including but not limited to securing partial project financing for the Dvoinoye, Fruta del Norte and the Tasiast expansion projects, being consistent with the Company's current expectations. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates or gold or silver lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation, controls, policies and regulations; the security of personnel and assets; political or economic developments in Canada, the United States, Chile, Brazil, Russia, Ecuador, Mauritania, Ghana, or other countries in which Kinross, or entities in which it now or hereafter directly or indirectly holds an interest, do business or may carry on business; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions and complete divestitures; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development including, but not limited to, the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties.

In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the "Risk Factors" section of our most recently filed Annual Information Form and Management Discussion and Analysis for the 2010 fiscal year. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities

Approximately 60%-70% of the Company's costs are denominated in US dollars.

A 10% change in foreign exchange could result in an approximate $7 impact in cost of sales per ounce.(7) A $10 change in the price of oil could result in an approximate $3 impact on cost of sales per ounce.

The impact on royalties of a $100 change in the gold price could result in an approximate $3 impact on cost of sales per ounce.

Other information

Where we say "we", "us", "our", the "Company", or "Kinross" in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.

The technical information about the Company's material mineral properties (other than drilling and other exploration activities) contained in this news release has been prepared under the supervision of Mr. Rob Henderson, an officer of the Company who is a "qualified person" within the meaning of National Instrument 43-101.The technical information about the Company's drilling and exploration activities contained in this news release has been prepared under the supervision of Dr. Glen Masterman, an officer with the Company who is a "qualified person" within the meaning of National Instrument 43-101.

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. The Company believes that these measures, together with measures determined in accordance with GAAP, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. These measures are not necessarily standard and therefore may not be comparable to other issuers.

Adjusted net earnings attributed to common shareholders and adjusted net earnings per share are non-GAAP measures which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company's underlying performance, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and non-hedge derivative gains and losses. Management believes that these measures, which are also used internally, provide investors with the ability to better evaluate underlying performance particularly since the excluded items are typically not included in public guidance. The following table provides a reconciliation of consolidated net earnings to adjusted net earnings for the periods presented:


----------------------------------------------------------------------------
                                GAAP to Adjusted Earnings Reconciliation    
                             -----------------------------------------------
(in US$ millions)                Three months ended        Six months ended 
                                            June 30                 June 30 
                             -----------------------------------------------
                                   2011     2010(1)        2011     2010(1) 
                             -----------------------------------------------

Net earnings attributed to                                                  
 common shareholders - as                                                   
 reported                     $   247.4   $   110.4   $   497.5   $   291.7 
                             -----------------------------------------------
Adjusting items:                                                            
 Foreign exchange (gains)                                                   
  losses                           (6.7)        9.9       (21.5)        9.5 
 Non-hedged derivatives gains                                               
  - net of tax                     (7.6)      (12.2)      (48.6)      (47.1)
 (Gains) losses on sale of                                                  
  assets and investments -                                                  
  net of tax                       (0.4)        0.3       (31.2)      (51.5)
 Inventory fair value                                                       
  adjustment - net of tax           4.3           -         7.0           - 
 FX (gain) loss on                                                          
  translation of tax basis                                                  
  and FX on deferred income                                                 
  taxes within income tax                                                   
  expense                         (10.5)        3.0        (1.4)        8.5 
                             -----------------------------------------------
                                  (20.9)        1.0       (95.7)      (80.6)
                             -----------------------------------------------
Net earnings attributed to                                                  
 common shareholders -                                                      
 Adjusted                     $   226.5   $   111.4   $   401.8   $   211.1 
                             -----------------------------------------------
Weighted average number of                                                  
 common shares outstanding -                                                
 Basic                          1,135.8       698.8     1,134.9       697.6 
                             -----------------------------------------------
Net earnings per share -                                                    
 Adjusted                     $    0.20   $    0.16   $    0.35   $    0.30 
----------------------------------------------------------------------------
(1)  Prior quarter figures have been restated to conform to IFRS.           

The Company makes reference to a non-GAAP measure for adjusted operating cash flow and adjusted operating cash flow per share. Adjusted operating cash flow is defined as cash flow from operations excluding certain impacts which the Company believes are not reflective of the Company's regular operating cash flow, and excluding changes in working capital. Working capital can be volatile due to numerous factors, including the timing of tax payments, and in the case of Kupol, a build-up of inventory due to transportation logistics. Management believes that, by excluding these items from operating cash flow, this non-GAAP measure provides investors with the ability to better evaluate the cash flow performance of the Company.

The following table provides a reconciliation of adjusted cash flow from operations:


----------------------------------------------------------------------------
                                       GAAP to Adjusted Operating Cash Flow 
                                     ---------------------------------------
(in US$ millions)                    Three months ended    Six months ended 
                                                June 30             June 30 
                                     ---------------------------------------
                                         2011   2010(1)      2011   2010(1) 
                                     ---------------------------------------

Cash flow provided from operating                                           
 activities - as reported               361.3     229.9     696.4     458.6 
                                     ---------------------------------------

Adjusting items:                                                            
 Working capital changes:                                                   
  Accounts receivable and other                                             
   assets                               126.3      53.7     166.2      62.6 
  Inventories                           (11.2)     12.1       3.9      (4.7)
  Accounts payable and other                                                
   liabilities, including taxes         (63.3)    (13.2)    (56.7)      4.5 
                                     ---------------------------------------
                                         51.8      52.6     113.4      62.4 
                                     ---------------------------------------
Adjusted operating cash flow            413.1     282.5     809.8     521.0 
                                     ---------------------------------------
Weighted average number of common                                           
 shares outstanding - Basic           1,135.8     698.8   1,134.9     697.6 
                                     ---------------------------------------
Adjusted operating cash flow per                                            
 share                                   0.36      0.40      0.71      0.75 
----------------------------------------------------------------------------
(1)     Prior quarter figures have been restated to conform to IFRS.        

Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP measure which calculates the Company's non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this measure, which is also used internally, provides investors with the ability to better evaluate Kinross' production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.

The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:


----------------------------------------------------------------------------
                         Attributable Cost of Sales Per Ounce Sold on a By- 
                                            Product Basis                   
                         ---------------------------------------------------
(in US$ millions)              Three months ended          Six months ended 
                                          June 30                   June 30 
                         ---------------------------------------------------
                                2011      2010(3)         2011      2010(3) 
                         ---------------------------------------------------
Production cost of                                                          
 sales(1)                 $    402.6   $    288.4   $    784.2   $    563.2 
Less: portion                                                               
 attributable to Kupol                                                      
 non-controlling                                                            
 interest(2)                    (4.1)       (15.8)       (21.0)       (32.0)
Less: portion                                                               
 attributable to Chirano                                                    
 non-controlling interest       (3.7)           -         (8.6)           - 
Less: attributable silver                                                   
 sales                         (83.4)       (35.5)      (165.6)       (76.9)
                         ---------------------------------------------------
Attributable production                                                     
 cost of sales net of                                                       
 silver by-product                                                          
 revenue                  $    311.4   $    237.1   $    589.0   $    454.3 
                         ---------------------------------------------------

Gold ounces sold             621,870      564,773    1,256,661    1,136,394 
Less: portion                                                               
 attributable to Kupol                                                      
 non-controlling                                                            
 interest(2)                  (9,349)     (45,139)     (49,299)     (89,946)
Less: portion                                                               
 attributable to Chirano                                                    
 non-controlling interest     (5,625)           -      (12,552)           - 
                         ---------------------------------------------------
Attributable gold ounces                                                    
 sold                        606,896      519,634    1,194,810    1,046,448 
                         ---------------------------------------------------
Attributable production                                                     
 cost of sales per ounce                                                    
 sold on a by-product                                                       
 basis                    $      513   $      456   $      493   $      434 
----------------------------------------------------------------------------

(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the consolidated financial statements less "depreciation, depletion and
     amortization", and is generally consistent with "Cost of sales" as    
     reported under CDN GAAP prior to the adoption of IFRS.                 
(2)  On April 27, 2011, Kinross acquired the remaining 25% of CMGC, and     
     thereby obtained 100% ownership of Kupol. As such, the results up to  
     April 27, 2011 reflect 75% and results thereafter reflect 100%.        
(3)  Prior quarter figures have been restated to conform to IFRS.           

Review of Operations


Three months ended June 30,              Gold equivalent ounces             
                             -----------------------------------------------
                                    Produced                  Sold          
                             -----------------------------------------------
                                   2011        2010        2011        2010 
                             -----------------------------------------------
Fort Knox                        77,727      86,270      77,269      80,999 
Round Mountain                   47,151      46,927      46,941      45,448 
Kettle River - Buckhorn          46,237      50,463      45,442      53,364 
                             -----------------------------------------------
North America Total             171,115     183,660     169,652     179,811 

Kupol (100%)                    184,066     187,025     199,773     205,670 
                             -----------------------------------------------
Russia Total                    184,066     187,025     199,773     205,670 
Paracatu                         99,893     118,101      95,773     119,531 
Crixas                           15,438      18,076      16,165      16,751 
La Coipa                         50,867      35,175      56,906      38,663 
Maricunga                        70,105      42,990      63,407      42,950 
                             -----------------------------------------------
South America Total             236,303     214,342     232,251     217,895 

Tasiast (1)                      47,249           -      46,213           - 
Chirano (100%) (1)               57,898           -      56,558           - 
                             -----------------------------------------------
West Africa Total               105,147           -     102,771           - 
                             -----------------------------------------------

Operations Total                696,631     585,027     704,447     603,376 
Less Kupol non-controlling                                                  
 interest (25%)(2)              (14,596)    (46,757)    (12,968)    (51,418)
Less Chirano non-controlling                                                
 interest (10%)                  (5,790)          -      (5,656)          - 
                             -----------------------------------------------
Attributable                    676,245     538,270     685,823     551,958 
----------------------------------------------------------------------------

Three months ended June 30,                                                 

                                   Production cost of     Production cost of
                                 sales(1) ($millions)            sales(1)/oz
                             -----------------------------------------------
                                     2011        2010        2011       2010
                             -----------------------------------------------
Fort Knox                     $      52.4  $     51.6  $      678 $      637
Round Mountain                       34.7        24.8         739        546
Kettle River - Buckhorn              18.3        16.4         403        307
                             -----------------------------------------------
North America Total                 105.4        92.8         621        516

Kupol (100%)                         69.1        63.0         346        307
                             -----------------------------------------------
Russia Total                         69.1        63.0         346        307
Paracatu                             77.1        62.7         805        525
Crixas                               13.6         8.8         841        525
La Coipa                             40.5        31.8         712        822
Maricunga                            26.2        29.3         413        680
                             -----------------------------------------------
South America Total                 157.4       132.6         678        609

Tasiast (1)                          33.6           -         727          -
Chirano (100%) (1)                   37.1           -         656          -
                             -----------------------------------------------
West Africa Total                    70.7           -         688          -
                             -----------------------------------------------

Operations Total                    402.6       288.4  $      572 $      478
Less Kupol non-controlling                                                  
 interest (25%)(2)                   (4.1)      (15.8)                      
Less Chirano non-controlling                                                
 interest (10%)                      (3.7)          -                       
                             -----------------------------------------------
Attributable                  $     394.8  $    272.6  $      576 $      494
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the consolidated financial statements less "depreciation, depletion and
     amortization", and is generally consistent with "Cost of sales" as     
     reported under CDN GAAP prior to the adoption of IFRS. Prior year      
     figures for production costs have been restated to conform to IFRS.    
(2)  On April 27, 2011, Kinross acquired the remaining 25% of CM GC, and    
     thereby obtained 100% ownership of Kupol. As such, the results up to   
     April 27, 2011 reflect 75% and results thereafter reflect 100%.        
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Six months ended June 30,                Gold equivalent ounces             
                             -----------------------------------------------
                                    Produced                  Sold          
                             -----------------------------------------------
                                   2011        2010        2011        2010 
                             -----------------------------------------------

Fort Knox                       142,774     155,910     141,935     150,815 
Round Mountain                   89,272      92,556      88,496      90,980 
Kettle River - Buckhorn          92,089      98,868      93,071      99,444 
                             -----------------------------------------------
North America Total             324,135     347,334     323,502     341,239 

Kupol (100%)                    389,741     379,946     403,111     412,265 
                             -----------------------------------------------
Russia Total                    389,741     379,946     403,111     412,265 

Paracatu                        200,320     235,573     203,730     240,652 
Crixas                           30,251      36,932      29,784      37,335 
La Coipa                        105,313      82,839     119,837      97,351 
Maricunga                       128,845      94,767     119,250      93,280 
                             -----------------------------------------------
South America Total             464,729     450,111     472,601     468,618 

Tasiast (1)                      98,570           -      97,706           - 
Chirano (100%) (1)              119,935           -     126,104           - 
                             -----------------------------------------------
West Africa Total               218,505           -     223,810           - 
                             -----------------------------------------------

Operations Total              1,397,110   1,177,391   1,423,024   1,222,122 
Less Kupol non-controlling                                                  
 interest (25%)(2)              (66,015)    (94,987)    (63,803)   (103,066)
Less Chirano non-controlling                                                
 interest (10%) (1)             (11,993)          -     (12,610)          - 
                             -----------------------------------------------
Attributable                  1,319,102   1,082,404   1,346,611   1,119,056 
                             -----------------------------------------------


----------------------------------------------------------------------------
Six months ended June 30,                                                   

                                   Production cost of     Production cost of
                                 sales(1) ($millions)            sales(1)/oz
                             -----------------------------------------------
                                     2011        2010        2011       2010
                             -----------------------------------------------

Fort Knox                     $      93.0  $     87.7  $      655 $      582
Round Mountain                       67.6        51.1         764        562
Kettle River - Buckhorn              36.2        29.3         389        295
                             -----------------------------------------------
North America Total                 196.8       168.1         608        467

Kupol (100%)                        134.6       127.9         334        310
                             -----------------------------------------------
Russia Total                        134.6       127.9         334        310

Paracatu                            151.6       129.9         744        540
Crixas                               23.7        17.7         796        474
La Coipa                             78.0        61.8         651        635
Maricunga                            53.1        57.8         445        620
                             -----------------------------------------------
South America Total                 306.4       267.2         648        570

Tasiast (1)                          60.2           -         616          -
Chirano (100%) (1)                   86.2           -         684          -
                             -----------------------------------------------
West Africa Total                   146.4           -         654          -
                             -----------------------------------------------

Operations Total                    784.2       563.2  $      551 $      461
Less Kupol non-controlling                                                  
 interest (25%)(2)                  (21.0)      (32.0)                      
Less Chirano non-controlling                                                
 interest (10%) (1)                  (8.6)          -                       
                             -----------------------------------------------
Attributable                  $     754.6  $    531.2  $      560 $      475
                             -----------------------------------------------
----------------------------------------------------------------------------
(1)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the consolidated financial statements less "depreciation, depletion and
     amortization", and is generally consistent with "Cost of sales" as     
     reported under CDN GAAP prior to the adoption of IFRS. Prior year      
     figures for production costs have been restated to conform to IFRS.    
(2)  On April 27, 2011, Kinross acquired the remaining 25% of CM GC, and    
     thereby obtained 100% ownership of Kupol. As such, the results up to   
     April 27, 2011 reflect 75% and results thereafter reflect 100%.        
----------------------------------------------------------------------------

Consolidated balance sheets

(Unaudited expressed in millions of United States dollars, except share amounts)


----------------------------------------------------------------------------
                                                 As at                      
                                   June 30,    December 31,      January 1, 
                                       2011            2010            2010 
                            ------------------------------------------------
Assets                                                                      
 Current assets                                                             
  Cash and cash equivalents  $      1,080.3  $      1,466.6  $        597.4 
  Restricted cash                      13.3             2.1            24.3 
  Short-term investments                1.3               -            35.0 
  Accounts receivable and                                                   
   other assets                       453.0           329.4           135.5 
  Inventories                         728.9           731.6           554.4 
  Unrealized fair value of                                                  
   derivative assets                  129.9           133.4            44.3 
                            ------------------------------------------------
                                    2,406.7         2,663.1         1,390.9 
 Non-current assets                                                         
  Property, plant and                                                       
   equipment                        8,265.8         7,884.6         4,836.7 
  Goodwill                          6,357.9         6,357.9         1,179.9 
  Long-term investments               104.4           203.8           157.8 
  Investments in associates                                                 
   and Working Interest               486.4           467.5           150.7 
  Unrealized fair value of                                                  
   derivative assets                   12.1             2.6             1.9 
  Deferred charges and other                                                
   long-term assets                   277.3           204.6           158.4 
  Deferred tax assets                  18.1            11.1               - 
                            ------------------------------------------------
                             $     17,928.7  $     17,795.2  $      7,876.3 
                            ------------------------------------------------
Liabilities                                                                 
 Current liabilities                                                        
  Accounts payable and                                                      
   accrued liabilities       $        435.2  $        409.0  $        287.6 
  Current tax payable                  85.0            87.6            24.4 
  Current portion of long-                                                  
   term debt                           50.6            48.4           177.0 
  Current portion of                                                        
   provisions                          20.7            23.4            17.1 
  Current portion of                                                        
   unrealized fair value of                                                 
   derivative liabilities             283.1           407.7           214.6 
                            ------------------------------------------------
                                      874.6           976.1           720.7 
 Non-current liabilities                                                    
  Long-term debt                      415.0           426.0           475.8 
  Provisions                          598.7           577.8           448.5 
  Unrealized fair value of                                                  
   derivative liabilities              12.9            97.0           290.0 
  Other long-term                                                           
   liabilities                        132.4           115.0            50.7 
  Deferred tax liabilities            809.3           810.0           234.3 
                            ------------------------------------------------
                                    2,842.9         3,001.9         2,220.0 
                            ------------------------------------------------
Equity                                                                      
 Common shareholders' equity                                                
  Common share capital and                                                  
   common share purchase                                                    
   warrants                  $     14,627.6  $     14,576.4  $      6,379.3 
  Contributed surplus                  78.5           185.5           107.4 
  Retained earnings                                                         
   (accumulated deficit)              389.2           (51.5)         (740.6)
  Accumulated other                                                         
   comprehensive loss                 (84.0)         (179.3)         (218.4)
                            ------------------------------------------------
                                   15,011.3        14,531.1         5,527.7 
                            ------------------------------------------------
 Non-controlling interest              74.5           262.2           128.6 
                            ------------------------------------------------
                                   15,085.8        14,793.3         5,656.3 
                            ------------------------------------------------
Commitments and                                                             
 contingencies                                                              
Subsequent events                                                           
                            ------------------------------------------------
                             $     17,928.7  $     17,795.2  $      7,876.3 
                            ------------------------------------------------
Common shares                                                               
 Authorized                       Unlimited       Unlimited       Unlimited 
 Issued and outstanding       1,136,150,849   1,133,294,930     696,027,270 
----------------------------------------------------------------------------

Consolidated statements of operations

(Unaudited expressed in millions of United States dollars, except per share and share amounts)


----------------------------------------------------------------------------
                                  Three months ended       Six months ended 
                                            June 30,               June 30, 
                              ----------------------------------------------
                                    2011        2010       2011        2010 
                              ----------------------------------------------
Revenue                                                                     
 Metal sales                   $   987.8   $   696.6  $ 1,924.8   $ 1,354.2 

Cost of sales                                                               
 Production costs                  402.6       288.4      784.2       563.2 
 Depreciation, depletion and                                                
  amortization                     149.9       116.9      303.0       247.5 
Total Cost of sales                552.5       405.3    1,087.2       810.7 
                              ----------------------------------------------
Gross Profit                       435.3       291.3      837.6       543.5 
                              ----------------------------------------------
 Other operating costs                                                      
  (income)                          10.4        (0.5)      14.6        (0.9)
 Exploration and business                                                   
  development                       26.8        19.3       50.7        32.2 
 General and administrative         40.1        32.9       83.4        61.9 
                              ----------------------------------------------
Operating earnings                 358.0       239.6      688.9       450.3 
 Other income (expense) - net       16.3         0.2      104.7       113.8 
 Equity in gains (losses) of                                                
  associates                         0.2        (0.6)         -        (2.1)
 Finance income                      1.7         0.7        4.0         1.4 
 Finance expense                   (16.1)      (16.1)     (32.5)      (32.9)
                              ----------------------------------------------
Earnings before taxes              360.1       223.8      765.1       530.5 
 Income tax expense - net          (98.9)      (82.8)    (212.8)     (183.0)
                              ----------------------------------------------
Net earnings                   $   261.2   $   141.0  $   552.3   $   347.5 
                              ----------------------------------------------
                              ----------------------------------------------
Attributed to non-controlling                                               
 interest                      $    13.8   $    30.6  $    54.8   $    55.8 
                              ----------------------------------------------
                              ----------------------------------------------
Attributed to common                                                        
 shareholders                  $   247.4   $   110.4  $   497.5   $   291.7 
                              ----------------------------------------------
                              ----------------------------------------------
Earnings per share                                                          
 Basic                         $    0.22   $    0.16  $    0.44   $    0.42 
 Diluted                       $    0.22   $    0.16  $    0.44   $    0.42 
Weighted average number of                                                  
 common shares outstanding                                                  
 (millions)                                                                 
 Basic                           1,135.8       698.8    1,134.9       697.6 
 Diluted                         1,141.4       702.6    1,140.7       701.3 
----------------------------------------------------------------------------

Consolidated statements of cash flows

(Unaudited expressed in millions of United States dollars)


                                 Three months ended   Six months ended June 
                                           June 30,                     30, 
                             -----------------------------------------------
                                   2011        2010        2011        2010 
                             -----------------------------------------------
Net inflow (outflow) of cash                                                
 related to the following                                                   
 activities:                                                                
Operating:                                                                  
Net earnings                  $   261.2   $   141.0   $   552.3   $   347.5 

Adjustments to reconcile net                                                
 earnings to net cash                                                       
 provided from (used in)                                                    
 operating activities:                                                      
 Depreciation, depletion and                                                
  amortization                    149.9       116.9       303.0       247.5 
 (Gains) losses on                                                          
  acquisition/disposition of                                                
  assets and investments -                                                  
  net                              (0.6)        0.3       (31.4)      (78.4)
 Equity in (gains) losses of                                                
  associates                       (0.2)        0.6           -         2.1 
 Non-hedge derivative gains -                                               
  net                              (7.1)      (10.2)      (48.1)      (45.1)
 Share-based compensation                                                   
  expense                          10.2         8.2        18.4        17.0 
 Accretion expense                 13.8         7.6        26.6        20.7 
 Deferred tax (recovery)                                                    
  expense                         (18.5)       (3.2)      (12.5)        5.9 
 Foreign exchange losses and                                                
  other                             4.4        21.3         1.5         3.8 
 Changes in operating assets                                                
  and liabilities:                                                          
  Accounts receivable and                                                   
   other assets                  (126.3)      (53.7)     (166.2)      (62.6)
  Inventories                      11.2       (12.1)       (3.9)        4.7 
  Accounts payable and                                                      
   accrued liabilities,                                                     
   excluding interest and                                                   
   taxes                          183.6        80.7       247.6       105.1 
                             -----------------------------------------------
Cash flow provided from                                                     
 operating activities             481.6       297.4       887.3       568.2 
                             -----------------------------------------------
 Income taxes paid               (120.3)      (67.5)     (190.9)     (109.6)
                             -----------------------------------------------
Net cash flow provided from                                                 
 operating activities             361.3       229.9       696.4       458.6 
                             -----------------------------------------------

Investing:
 Additions to property,
  plant and equipment            (415.6)     (120.5)     (671.5)     (214.6)
 Business acquisitions- net
  of cash acquired               (335.4)       10.8      (335.4)       10.8
 Net proceeds from the sale
  of long-term investments
  and other assets                    -           -       101.1       450.6
 Additions to long-term
  investments and other
  assets                          (64.8)     (595.5)      (76.5)     (593.4)
 Net proceeds from the sale
  of property, plant and
  equipment                         0.7         0.4         0.9         0.6
 Disposals (additions) to
  short-term investments           (1.3)       25.0        (1.3)       35.0
 Decrease (increase) to
  restricted cash                 (11.2)       21.2       (11.2)       (0.8)
 Interest received                  0.8         0.7         2.2         1.4
 Other                             (2.7)       (1.4)       (3.0)       (2.2)
                             -----------------------------------------------
Cash flow provided from
 (used in) investing
 activities                      (829.5)     (659.3)     (994.7)     (312.6)
                             -----------------------------------------------
Financing:
 Issuance of common shares
  on exercise of options
  and warrants                      6.0         3.4        14.9         6.4
 Proceeds from issuance of
  debt                             99.6       120.0       192.6       127.5
 Repayment of debt               (111.7)      (53.4)     (216.9)     (117.5)
 Interest paid                     (0.6)       (3.4)       (5.2)       (8.9)
 Dividends paid to common
  shareholders                        -           -       (56.8)      (34.8)
 Dividends paid to
  non-controlling shareholder         -           -           -        (7.2)
 Settlement of derivative
  instruments                      (9.4)       (6.0)      (19.7)      (11.7)
 Other                                -           -        (5.7)          -
                             -----------------------------------------------
Cash flow provided from
 (used in) financing
 activities                       (16.1)       60.6       (96.8)      (46.2)
                             -----------------------------------------------
Effect of exchange rate
 changes on cash                    3.8        (2.5)        8.8        (2.4)
                             -----------------------------------------------
Increase (decrease) in
 cash and cash
 equivalents                     (480.5)     (371.3)     (386.3)       97.4
                             -----------------------------------------------
Cash and cash equivalents,
 beginning of period            1,560.8     1,066.1     1,466.6       597.4
                             -----------------------------------------------
Cash and cash equivalents,
 end of period                $ 1,080.3   $   694.8   $ 1,080.3   $   694.8 
                             -----------------------------------------------



Operating Summary                                                         
----------------------------------------------------------------------------

                                           Ore                              
                                     Processed         Recovery      Gold Eq
Mine                Period Ownership       (1)   Grade      (2)   Production
----------------------------------------------------------------------------
                                         ('000                              
                                 (%)   tonnes)   (g/t)      (%)     (ounces)
----------------------------------------------------------------------------
                   Q2 2011       100    10,000    0.59       79%      77,727
                   ---------------------------------------------------------
                   Q1 2011       100     3,466    0.66       77%      65,047
Fort Knox(3)       Q4 2010       100     6,350    0.72       77%      85,139
                   Q3 2010       100     7,655    0.96       82%     108,680
                   Q2 2010       100     7,761    0.76       80%      86,270
----------------------------------------------------------------------------
                   Q2 2011        50     8,338    0.46       nm       47,151
                   ---------------------------------------------------------
                   Q1 2011        50     7,130    0.49       nm       42,121
Round Mountain     Q4 2010        50     7,830    0.46       nm       43,521
                   Q3 2010        50     7,196    0.50       nm       48,477
                   Q2 2010        50     7,390    0.50       nm       46,927
----------------------------------------------------------------------------
                   Q2 2011       100       104   14.77       89%      46,237
                   ---------------------------------------------------------
                   Q1 2011       100       106   15.29       88%      45,852
Kettle River       Q4 2010       100       131   14.80       87%      53,255
                   Q3 2010       100       114   13.39       87%      46,687
                   Q2 2010       100        99   18.20       91%      50,463
----------------------------------------------------------------------------
                   Q2 2011       100       305   15.88       94%     184,066
                   ---------------------------------------------------------
                   Q1 2011        75       305   16.56       95%     205,675
Kupol - 100%       Q4 2010        75       321   16.94       95%     199,338
                   Q3 2010        75       269   16.55       94%     159,393
                   Q2 2010        75       290   18.55       94%     187,025
----------------------------------------------------------------------------
                   Q2 2011       100       305   15.88       94%     169,470
                   ---------------------------------------------------------
                   Q1 2011        75       305   16.56       95%     154,257
Kupol (5) (6)      Q4 2010        75       321   16.94       95%     149,504
                   Q3 2010        75       269   16.55       94%     119,545
                   Q2 2010        75       290   18.55       94%     140,268
----------------------------------------------------------------------------
                   Q2 2011       100    10,014    0.41       76%      99,893
                   ---------------------------------------------------------
                   Q1 2011       100     9,738    0.41       78%     100,427
Paracatu           Q4 2010       100    11,225    0.43       76%     117,567
                   Q3 2010       100    11,144    0.45       79%     129,257
                   Q2 2010       100    10,179    0.45       79%     118,101
----------------------------------------------------------------------------
                   Q2 2011        50       312    3.35       93%      15,438
                   ---------------------------------------------------------
                   Q1 2011        50       256    3.85       93%      14,813
Crixas             Q4 2010        50       272    4.38       94%      17,979
                   Q3 2010        50       296    4.51       93%      19,866
                   Q2 2010        50       288    4.26       92%      18,076
----------------------------------------------------------------------------
                   Q2 2011       100     1,131    0.72       81%      50,867
                   ---------------------------------------------------------
                   Q1 2011       100     1,076    0.83       75%      54,446
La Coipa (4)       Q4 2010       100     1,092    1.18       80%      60,020
                   Q3 2010       100     1,124    1.29       79%      53,471
                   Q2 2010       100       998    1.00       80%      35,175
----------------------------------------------------------------------------
                   Q2 2011       100     4,023    0.86       nm       70,105
                   ---------------------------------------------------------
                   Q1 2011       100     3,991    0.85       nm       58,740
Maricunga          Q4 2010       100     4,243    0.77       nm       32,979
                   Q3 2010       100     3,302    0.71       nm       28,844
                   Q2 2010       100     3,118    0.77       nm       42,990
----------------------------------------------------------------------------
                   Q2 2011       100     1,990    1.60       91%      47,249
                   ---------------------------------------------------------
                   Q1 2011       100     2,204    2.10       88%      51,321
Tasiast(8)                                                                  
                   Q4 2010       100     1,942    2.32       87%      47,758
                   Q3 2010       100       117    2.51       94%       8,853
----------------------------------------------------------------------------
                   Q2 2011        90       858    2.28       91%      57,898
                   ---------------------------------------------------------
Chirano - 100%     Q1 2011                                                  
 (7)(8)                           90       848    2.42       91%      62,037
                   Q4 2010        90       930    2.72       91%      76,570
                   Q3 2010        90       212    2.07       90%      12,650
----------------------------------------------------------------------------
                   Q2 2011        90       858    2.28       91%      52,108
                   ---------------------------------------------------------
Chirano (7)(8)     Q1 2011        90       848    2.42       91%      55,833
                   Q4 2010        90       930    2.72       91%      68,913
                   Q3 2010        90       212    2.07       90%      11,385
----------------------------------------------------------------------------

Operating Summary                                                         
----------------------------------------------------------------------------

                                   Production Production                    
                                     costs of    cost of                    
                           Gold Eq  sales (9)  sales (9)       Cap          
Mine                Period   Sales       (10)    (10)/oz   Ex (10)  DD&A(10)
----------------------------------------------------------------------------
                                           ($                   ($        ($
                          (ounces)  millions)  ($/ounce) millions) millions)
----------------------------------------------------------------------------
                   Q2 2011  77,269       52.4        678      26.2      17.2
                   ---------------------------------------------------------
                   Q1 2011  64,666       40.6        628      22.1      15.0
Fort Knox(3)       Q4 2010  85,848       45.4        529      24.9      14.9
                   Q3 2010 112,797       56.5        501      24.5      19.7
                   Q2 2010  80,999       51.7        638      16.8      11.4
----------------------------------------------------------------------------
                   Q2 2011  46,941       34.7        739       7.9       7.2
                   ---------------------------------------------------------
                   Q1 2011  41,555       32.9        792       8.5       6.6
Round Mountain     Q4 2010  43,631       33.1        759       9.5       4.9
                   Q3 2010  49,892       31.2        625       7.7       5.9
                   Q2 2010  45,448       24.8        546       9.2       4.2
----------------------------------------------------------------------------
                   Q2 2011  45,442       18.3        403       3.4      20.0
                   ---------------------------------------------------------
                   Q1 2011  47,629       17.9        375       3.1      21.8
Kettle River       Q4 2010  49,842       19.7        395       2.9      24.3
                   Q3 2010  46,996       17.3        368       1.5      23.2
                   Q2 2010  53,364       16.4        307       2.8      24.6
----------------------------------------------------------------------------
                   Q2 2011 199,773       69.1        346      16.1      37.0
                   ---------------------------------------------------------
                   Q1 2011 203,338       65.5        322       5.8      39.5
Kupol - 100%       Q4 2010 163,909       51.3        313      14.3      34.1
                   Q3 2010 164,392       57.0        347      16.7      34.8
                   Q2 2010 205,670       62.9        306       6.4      42.6
----------------------------------------------------------------------------
                   Q2 2011 186,805       65.0        348      15.2      35.4
                   ---------------------------------------------------------
                   Q1 2011 152,504       48.6        319       4.4      32.4
Kupol (5) (6)      Q4 2010 122,933       38.5        313      10.7      25.6
                   Q3 2010 123,294       42.8        347      12.5      26.1
                   Q2 2010 154,252       47.2        306       4.8      32.0
----------------------------------------------------------------------------
                   Q2 2011  95,773       77.1        805      65.2      14.3
                   ---------------------------------------------------------
                   Q1 2011 107,957       74.5        690      36.7      14.4
Paracatu           Q4 2010 112,523       63.0        560      67.0      12.0
                   Q3 2010 134,702       68.0        505      43.2      18.4
                   Q2 2010 119,531       62.7        525      49.5      16.8
----------------------------------------------------------------------------
                   Q2 2011  16,165       13.6        841       6.9       3.6
                   ---------------------------------------------------------
                   Q1 2011  13,619       10.1        741       2.9       2.4
Crixas             Q4 2010  19,078        9.8        514       8.0       5.0
                   Q3 2010  20,743       10.0        482       6.1       5.3
                   Q2 2010  16,751        8.9        531       5.2       3.6
----------------------------------------------------------------------------
                   Q2 2011  56,906       40.5        712      15.3       8.1
                   ---------------------------------------------------------
                   Q1 2011  62,931       37.5        596       8.7      10.5
La Coipa (4)       Q4 2010  59,528       36.1        606       9.4      12.4
                   Q3 2010  46,747       34.1        729       5.0       8.1
                   Q2 2010  38,663       31.8        822       6.3       8.7
----------------------------------------------------------------------------
                   Q2 2011  63,407       26.2        413      44.3       7.1
                   ---------------------------------------------------------
                   Q1 2011  55,843       26.9        482      41.1       1.8
Maricunga          Q4 2010  30,825       31.0      1,006      29.9       3.1
                   Q3 2010  31,215       27.1        868      18.1       3.5
                   Q2 2010  42,950       29.2        680      12.6       4.1
----------------------------------------------------------------------------
                   Q2 2011  46,213       33.6        727      92.1      14.5
                   ---------------------------------------------------------
                   Q1 2011  51,493       26.6        517      84.2      15.8
Tasiast(8)                                                                  
                   Q4 2010  52,336       39.5        755      50.8      22.9
                   Q3 2010   4,761        5.6      1,176       3.4       1.1
----------------------------------------------------------------------------
                   Q2 2011  56,558       37.1        656      29.0      19.3
                   ---------------------------------------------------------
Chirano - 100%     Q1 2011                                                  
 (7)(8)                     69,546       49.1        706      17.2      24.1
                   Q4 2010  78,835       45.3        575      13.1      44.2
                   Q3 2010   6,453        6.3        976       0.5       3.8
----------------------------------------------------------------------------
                   Q2 2011  50,902       33.4        656      26.1      17.4
                   ---------------------------------------------------------
Chirano (7)(8)     Q1 2011  62,591       44.2        706      15.5      21.7
                   Q4 2010  70,952       40.8        575      11.8      39.8
                   Q3 2010   5,808        5.7        976       0.5       3.4
----------------------------------------------------------------------------

(1)  Ore processed is to 100%, production and costs are to Kinross' account.
(2)  Due to the nature of heap leach operations at Round Mountain and       
     Maricunga, recovery rates cannot be accurately measured on a quarterly 
     basis. Fort Knox recovery represents mill recovery only and excludes   
     the heap leach.                                                        
(3)  Includes 6,552,000 tonnes placed on the heap leach pad during the      
     second quarter of 2011, and 6,916,000 tonnes for the first six months. 
     Grade and recovery represent mill processing only. Ore placed on the   
     heap leach pad had an average grade of 0.37 grams per tonne for the    
     second quarter of 2011, and 0.37 grams per tonne for the first six     
     months.                                                                
(4)  La Coipa silver grade and recovery were as follows: Q2 (2011) 58.85    
     g/t, 55%; Q1 (2011) 75.64 g/t, 53%; Q4 (2010) 77.70 g/t, 57%; Q3 (2010)
     48.84g/t, 57%; Q2 (2010) 37.56g/t, 59%                                 
(5)  Kupol silver grade and recovery were as follows: Q2 (2011) 215.21 g/t, 
     84%; Q1 (2011) 237.90 g/t, 84%; Q4 (2010) 213.90 g/t, 84%; Q3 (2010)   
     202.27g/t, 85%; Q2 (2010) 209.73g/t, 83%                               
(6)  On April 27, 2011, Kinross acquired the remaining 25% of CM GC, and    
     thereby obtained 100% ownership of Kupol. As such, the results up to   
     April 27, 2011 reflect 75% and results thereafter reflect 100%.        
(7)  Includes Kinross' share of Chirano at 90%.                             
(8)  Certain Q3 2010, Q4 2010 and Q1 2011 results have been recast as a     
     result of finalizing the Red Back purchase price allocation.           
(9)  "Production cost of sales" is equivalent to "Total cost of sales" per  
     the consolidated financial statements less "depreciation, depletion and
     amortization", and is generally consistent with "Cost of sales" as     
     reported under CDN GAAP prior to the adoption of IFRS.                 
(10) Prior quarter figures have been restated to conform to IFRS.           

Appendix 1: Tasiast Mineral Reserve and Resource Summary


----------------------------------------------------------------------------
                 Proven Mineral      Probable Mineral   Proven and Probable 
                    Reserve              Reserve          Mineral Reserve   
----------------------------------------------------------------------------
                         Au                  Au                    Au       
Ore Source    Tonnes  Grade Ounces Tonnes Grade Ounces  Tonnes  Grade Ounces
                  kt    g/t    koz     kt   g/t    koz      kt    g/t    koz
----------------------------------------------------------------------------

Total         68,816   1.65  3,661 60,100  2.02  3,902 128,916   1.82  7,563
----------------------------------------------------------------------------



              Measured Mineral     Indicated Mineral     Inferred Mineral   
                  Resource             Resource              Resource       
                       Au                    Au                    Au       
Ore Source  Tonnes  Grade Ounces  Tonnes  Grade Ounces  Tonnes  Grade Ounces
                kt    g/t    koz      kt    g/t    koz      kt    g/t    koz
----------------------------------------------------------------------------
Total       40,616   0.74    968 196,684   1.28  8,082 218,903   0.65  4,590
----------------------------------------------------------------------------

Notes


--  "CIL" means carbon-in-leach 
--  The above mineral resource estimates for Tasiast as at June 30, 2011 are
    classified in accordance with the Canadian Institute of Mining,
    Metallurgy and Petroleum's "CIM Definition Standards - For Mineral
    Resources and Mineral Reserves" in accordance with the requirements of
    National Instrument 43-101 "Standards of Disclosure for Mineral
    Projects" (the Instrument). Mineral reserves are the same as reported on
    December 31, 2010 and the updated mineral resource estimate is reported
    under the 2010 year-end topography. 
--  Cautionary note to U.S. investors concerning estimates of measured,
    indicated and inferred mineral resources. U.S. investors are advised
    that the terms "measured mineral resource", "indicated mineral resource"
    and "inferred mineral resource" are recognized and required by Canadian
    securities laws. These terms are not recognized by the U.S. Securities
    and Exchange Commission. U.S. investors should not assume that all or
    any part of mineral deposits in these categories will ever be converted
    into mineral reserves and that as compared with measured and indicated
    mineral resources, inferred mineral resources have a greater amount of
    uncertainty as to their existence, and great uncertainty as to their
    economic feasibility. It should not be assumed that any part of an
    inferred mineral resource will ever be upgraded to a higher category. 
--  Mineral resource estimates reflect the Company's reasonable expectation
    that all necessary permits and approvals will be obtained and
    maintained. 
--  The Company's normal data verification procedures have been used in
    collecting, compiling, interpreting and processing the data used to
    estimate mineral reserves and mineral resources. 
--  Mineral resources that are not mineral reserves do not have demonstrated
    economic viability. Mineral resources are subject to infill drilling,
    permitting, mine planning, mining dilution and recovery losses, among
    other things, to be converted into mineral reserves. Due to the
    uncertainty associated with inferred mineral resources, it cannot be
    assumed that all or any part of an inferred mineral resource will ever
    be upgraded to indicated or measured mineral resources, including as a
    result of continued exploration. 
--  The mineral resources for Tasiast are reported on the basis of mining
    cut-off grades that represent reasonable prospects for economic
    extraction. Oxide material is amenable to dump leaching and CIL
    processes and is reported at a cut-off grade of 0.1 g/t. Sulphide
    material is amenable to heap leaching and CIL processes and are reported
    at a 0.3 and 0.45 g/t cut-off's respectively. 
--  The independent mineral resource estimate reported for Tasiast was
    undertaken by Nic Johnson of Hellman and Schofield Pty. Ltd. under the
    supervision of Mr. Rob Henderson, an officer of Kinross who is a
    "qualified person" within the meaning of National Instrument 43-101. Mr.
    Johnson
    is a Member of the Australian Institute of Geoscientists with more than
    five years experience in the use of geostatistics for estimation of
    recoverable resources in gold deposits. For the purpose of reporting
    under National Instrument 43-101 Mr. Johnson is regarded as a ?qualified
    person?.

Appendix 2: Tasiast Drill Results


Hole ID                 From        To  Interval     Grade          Prospect
                    (metres)  (metres)  (metres)  (g/t Au)                  
----------------------------------------------------------------------------
TA05148DD                275       297        22      4.49                  
                                                                Piment Deeps
including                275       279         4     21.35                  
And                      311       324        13      0.95                  
----------------------------------------------------------------------------
TA05149DD                817       826         9      4.32                  
                                                                Piment Deeps
And                      838       850        12      0.41                  
----------------------------------------------------------------------------
TA05152RD               1029      1090        61      1.75                  
                                                             WB south Plunge
including               1052      1090        38      2.48                  
----------------------------------------------------------------------------
TA05154RD                974      1019        45      1.22   WB south Plunge
----------------------------------------------------------------------------
TA05155ARD              1166      1198        32      1.64                  
including               1186      1198        12      2.50   WB south Plunge
----------------------------------------------------------------------------
TA05162RD               1038      1094        56      1.55   WB south Plunge

Notes to drill results

Tasiast Drill Holes

Hole identifiers ending with suffix DD are diamond drill core holes, and suffix RD are reverse circulation pre-collar and diamond drill core tails. Holes were angled to the west in order to cross mineralization at an angle as close as possible to a perpendicular intersection. Mineralization at Tasiast generally dips 50 degrees to 60 degrees east.

Twenty-three core holes have been drilled outside the volume included in the July 2011 mineral resource update at Tasiast. Seventeen holes were completed under Piment Sud Sud, Piment Sud Nord and Piment Central targeting new greenschist-style mineralization. Six holes were completed down plunge of mineralization at West Branch. Results have been received for six of the 23 holes.

Composite assay intervals reported for exploration (non-resource) drilling at Tasiast are calculated by taking a weighted average of all gold fire assay values equal to or above 0.3 gram per tonne gold. No more than six consecutive metres of internal waste (less than 0.5 grams per tonne) is accepted and no top-cuts are applied. All assay intervals are reported as down-hole thicknesses. Intervals are reported as downhole widths. True widths are estimated to be on average greater than 90% of the drilled intercept.

The reader is referred to the Tasiast NI43-101 Technical Reports dated December 31, 2010, available under the Company's profile at www.sedar.com, for a full description of drilling methods and sampling procedures. Samples from Tasiast are prepared and analyzed by fire assay using a 50 gram charge at SGS' facilities at the Tasiast mine site and in Nouakchott, Mauritania and at Kayes in Mali in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other SGS laboratories worldwide.

For more information, please see Kinross' 2011 second quarter Financial Statements and MD&A at www.kinross.com.


(1) "Net earnings" figures in this release represent "net earnings
    attributed to common shareholders".

(2) Unless otherwise stated, production figures in this release are based
    on Kinross' share of Kupol (75% up to April 27, 2011, 100% thereafter)
    and 90% of Chirano production.

(3) "Production cost of sales per gold equivalent ounce" is a non-GAAP
    measure defined as production costs per the financial statements divided
    by the attributable number of gold equivalent ounces sold, both reduced
    for Kupol sales attributable to a third-party shareholder (75% up to
    April 27, 2011) and Chirano sales to a 10% minority interest holder.
    Production cost is equivalent to total cost of sales (per the financial
    statements), less depreciation, depletion and amortization, and is
    generally consistent with cost of sales as reported under Canadian GAAP
    prior to the adaption of IFRS.

(4) "Attributable margin per ounce sold" is a non-GAAP measure and defined
    as "average realized gold price per ounce" less "attributable production
    cost of sales per gold equivalent ounce sold".

(5) Reconciliation of non-GAAP measures is located on page 13 of this news
    release.

(6) For more information regarding Kinross' mineral reserve and mineral
    resources, please refer to Kinross' Annual Mineral Reserve and Mineral
    Resource Statement as at December 31, 2010, contained in the news
    release dated February 16, 2011, available on our website at
    www.kinross.com.

(7) Refers to all of the currencies in the countries where the Company has
    mining operations, fluctuating simultaneously by 10% in the same
    direction, either appreciating or depreciating, taking into
    consideration the impact of hedging and the weighting of each currency
    within our consolidated cost structure.

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