Kinross Announces Q2 Results

Market Wire, August, 2008

Kinross Gold Corporation (TSX: K)(NYSE: KGC) today announced its unaudited results for the six months ended June 30, 2008.

(This news release contains forward-looking information that is subject to the risk factors and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 16 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

- Gold equivalent production(1) was 406,032 gold equivalent ounces in the second quarter of 2008, in line with plan, compared with 439,783 ounces for the same period last year. Production is expected to increase during the third and fourth quarters as the Company's three growth projects proceed through commissioning and ramp-up. Taking into account the impact of the sale of the Julietta operation and the projected commissioning and ramp-up schedule at Paracatu, Kinross expects 2008 production to be approximately 1.8 -1.9 million gold equivalent ounces, slightly below the previously stated forecast.

- Kupol poured its first gold on schedule. Kinross' share of Kupol production for the quarter was 51,487 gold equivalent ounces, at an average ore grade of over 36 gold g/tonne and 427 silver g/tonne.

- Revenue was $298.7 million in the second quarter, an increase of 3% over the same period last year, and $628.9 million for the six months ended June 30, a year-over-year increase of 17%. The average realized gold price was $903 per ounce sold, compared with an average realized gold price of $662 per ounce in the second quarter of 2007. Second quarter production exceeded sales by 75,399 gold equivalent ounces, 51,487(1) ounces of which represented June production from Kupol which was sold in the third quarter.

- Cost of sales per gold equivalent ounce(2) was $466 in the second quarter, compared to $348 per ounce in the second quarter of 2007. Cost of sales per gold equivalent ounce is expected to be approximately $425-445 for the full year 2008 compared to the previous forecast of $385-$395. Approximately half of this increase results from updating actual and forecast gold and oil prices and foreign exchange rates, and half from other cost and operating factors.

- Kinross' margin per ounce sold was $437 in the second quarter, compared with $314 for the second quarter of 2007, an increase of 39%.

- Adjusted net earnings(3) for the second quarter were $55.8 million, or $0.09 per share, compared with $47.6 million, or $0.08 per share, in the second quarter of 2007. Reported net earnings, in accordance with GAAP, were $26.0 million, or $0.04 per share, in the second quarter compared with $53.0 million, or $0.09 per share, in the second quarter of 2007.

- Cash flow from operating activities before changes in working capital was $110.8 million in the second quarter, compared to $98.9 million in the same period last year. Changes in working capital in the second quarter reduced cash flow provided from operating activities by $150.5 million.

- Commissioning of the Paracatu expansion has begun, with first gold production expected in September and full production expected in December. Surface construction at Buckhorn is complete and the project remains on schedule for first production in October.

- Kinross has launched a friendly bid to acquire 100% of the common shares of Aurelian Resources and combine both companies to advance responsible development of the Fruta del Norte (FDN) deposit in Ecuador. Kinross' bid expires on September 3, 2008.

- Kinross has agreed to the sale of its 90% interest in the Julietta operation in the Russian Federation for proceeds of $20.0 million, plus other consideration detailed below, as part of the Company's strategy to streamline its portfolio and to focus on core assets.

(1) Unless otherwise indicated, production figures in this release are based on Kinross' share of Kupol production (75%)

(2) Cost of sales per ounce is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold.

(3) Adjusted net earnings is a non-GAAP measure and represents net earnings before foreign currency losses on future income taxes and unrealized non-hedge derivatives losses, and other items such as the write-off of fair value adjustments in respect of purchase accounting.

CEO commentary

Tye Burt, Kinross President and CEO, made the following comments in relation to the second quarter 2008 results:

"The major story for Kinross in 2008 continues to be the successful development of our three growth projects. We are proud of our teams for delivering these projects on schedule and within a reasonable budget range, considering the inflationary pressures affecting new mine development projects around the world.

"The start-up at Kupol has gone as planned, with strong initial production and excellent grades. Commissioning of our Paracatu expansion is now underway, and we expect first gold production at the end of September and full production by year-end. At Buckhorn, we remain on schedule for first production from the mine in October.