Building Pipelines For Continuing Growth

Using the wealth of experience gained in shepherding three major gold projects from planning and permitting, through engineering and construction, and into production, Kinross Gold Corporation is preparing for its next major wave of growth — both through organic expansion at existing mines and new developments. The following is a quick look at some of the projects the company has on the drawing board to help ensure it maintains its position as a world leader in gold mining and production.

1 -United States: New Life At Fort Knox

In the fourth quarter of 2007, Kinross approved the construction of a heap leach facility and expansion of the pit at its Fort Knox mine in Alaska, already the largest operating gold mine in the state.

Construction is well advanced on the project, and placement on the leach pads is scheduled to begin in the third quarter of 2009, with first gold production in the fourth quarter. Overall, the project is expected to increase production to an average of 370,000 gold ounces per year, beginning in 2010. The new heap leach will accommodate up to 160 million tonnes of rock, and the expansion will enlarge the pit by 500 to 600 feet.

The project is expected to extend mine life at Fort Knox to 2018 and double life-of-mine production to 2.9 million gold ounces. Fort Knox began operations in 1996, and it has already surpassed its original 12-year mine life. Employment at the mine has increased from 250 people in 1996 to 455 people at the end of 2008.

An aggressive 29,000-m drilling program is also underway to further expand reserves and extend mine life.

2 -Expanding In Chile: Lobo-Marte

In November 2008, Kinross announced the acquisition of a 100% interest in Minera Santa Rosa SCM, which owns 100% of the Lobo-Marte gold project in the Maricunga district of northern Chile, roughly midway between the company’s Maricunga and La Coipa mines. Lobo-Marte contains indicated resources of approximately 5.4 million ounces of gold and inferred resources of 0.5 million ounces.

The acquisition added a well-advanced project which was previously an operating mine to the front of Kinross’ pipeline, and capitalizes on Kinross’ resources and expertise in the area. The project is contemplating a heap leach process of 40,000-50,000 tonnes per day, similar to that being used at the nearby Maricunga mine. Kinross is also evaluating opportunities to truck high-grade material to its La Coipa mill, just 67 kms away.

Kinross is finishing a scoping study and a pre-feasibility study is expected to be completed by the end of the year. Preparations for permitting are underway at Lobo-Marte, targeting shipping of ore to La Coipa in 2011.

3 -Maricunga

As part of its organic growth strategy in a core operating region, Kinross is exploring the potential to double gold production at its Maricunga mine in northern Chile. A pre-feasibility study is expected to be completed by year-end, which will examine building an additional plant to substantially increase crushing and leaching, as well as increasing throughput at the current plant.

Maricunga has a mineral resource base of 6.5 million ounces of proven and probable gold reserves, and 2.3 million ounces of measured and indicated resources. In the first quarter of 2009, Maricunga produced 56,765 gold equivalent ounces at a grade of 0.87 grams per tonne.

4 -Cerro Casale

With reserves of 23 million ounces of gold and 6 billion pounds of copper, the Cerro Casale deposit in northern Chile is one of the largest undeveloped gold-copper deposits in the world. A joint venture between Kinross and Barrick Gold, Cerro Casale currently contemplates a heap leach facility and a mill with a throughput of 150,000 tonnes per day. Kinross’ share of average annual production for the first ten years of full heap leach and milling operations would be approximately 430,000 ounces of gold plus 118 million pounds of copper.

In March 2009, Kinross issued a technical report on Cerro Casale based on a pre-feasibility study completed in 2008. The capital cost estimate of $3.65 billion for 100% of the project was based on mid-2008 costs, a high water mark for construction and material prices in the industry. A final feasibility study that includes project optimizations and costs reflective of the current environment will be completed in the third quarter of this year, and will allow Kinross and Barrick to decide on how to proceed.

5 -Ecuador: Fruta Del Norte

Kinross took a bold step into a new country in Latin America with the acquisition of Aurelian Resources in late 2008. Aurelian holds 95,000 hectares of exploration concessions in Ecuador, including the spectacular Fruta del Norte (FDN) deposit located in the southeastern region of the country. FDN has been referred to as one of the largest gold discoveries of the past decade, with inferred mineral resources of 13.7 million ounces of gold and 22.4 million ounces of silver.

With a new constitution and a new mining law that establishes a framework for responsible mining now in effect in Ecuador, Kinross is working with government and local communities to advance the FDN project. By mid-year Kinross expects to receive all necessary permits to proceed with a 12,000 metre infill drilling program using two drills already onsite. The program will take about three months to complete and will support completion of a pre-feasibility study early next year. A revised Environmental Management Plan has also been submitted to the government.

Initial production at FDN is targeted for 2013.

All in all, Kinross Gold Corporation continues to demonstrate its leadership in the world of gold exploration and development and it’s through efforts, devotion and projects like the ones featured on the previous pages that the company has earned such a strong international reputation for sound and respectful mining around the world.

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