Revenue grows 48%, margins increase 33% year-over-year

Cost of sales continues downward trend in fourth quarter

Toronto, Ontario, February 18, 2009 - Kinross Gold Corporation (TSX-K; NYSE-KGC) today announced its unaudited results for the fourth quarter and year ended December 31, 2008.

(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 17 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

• Gold equivalent production was 550,221 gold equivalent ounces in the fourth quarter 2008, an increase of 43% over the fourth quarter 2007. For full-year 2008, gold equivalent production was in line with previously-announced guidance at 1,838,038 gold equivalent ounces, an increase of 16% over 2007.

• Revenue was $484.4 million in the fourth quarter, an increase of 72% over the same period last year, with an average realized gold price of $794 per ounce sold compared to $796 per ounce sold in the fourth quarter of 2007. Full-year 2008 revenue was a record $1,617.0 million, a 48% increase over full-year 2007 revenue. The average realized gold price for the full year was $857 per ounce sold.

• Cost of sales per gold equivalent ounce was $375 in the fourth quarter, a decrease of 11% compared to the same period last year, on sales of 534,945 gold equivalent ounces. Cost of sales per ounce for full-year 2008 was slightly below previously stated guidance at $421, on sales of 1,756,056 gold equivalent ounces. Fourth quarter cost of sales per gold equivalent ounce decreased 8% over the third quarter of 2008.

• Kinross' attributable margin per ounce sold was $419 in the fourth quarter, an increase of 11% year-over-year. For full-year 2008, the attributable margin per ounce sold was $436, an increase of 33% over full-year 2007.

• Kinross recorded a net loss of $968.8 million, or $1.47 per share, for the fourth quarter 2008, and a net loss of $807.2 million, or $1.28 per share, for full-year 2008. Net earnings for the fourth quarter and full-year were reduced by a net $1,025.6 million ($1.56 per share) and $1,056.0 million ($1.68 per share) respectively, by a goodwill impairment accounting charge of $994.1 million primarily related to goodwill recorded in the 2007 Bema acquisition, plus additional items detailed on page three of this news release. Excluding these items, fourth quarter earnings would have been $56.8 million, or $0.09 per share, and full-year earnings would have been $248.8 million, or $0.40 per share.

• Cash flow from operating activities before changes in working capital was $222.4 million in the fourth quarter, or $0.34 per share, an increase of 240% per share over the same period last year, and $634.6 million for the full year, or $1.01 per share, an increase of 80% per share over full-year 2007. Cash and short-term investment balances were $525.1 million at December 31, 2008 compared with $561.2 million at December 31, 2007.

• On February 5, 2009 Kinross completed an offering of common shares at a price of US$17.25 per share. The underwriters chose to exercise their over-allotment option in full, resulting in a total of approximately 24 million shares being issued for gross proceeds of approximately $415 million.

• The Paracatu expansion and Kettle River-Buckhorn commenced production in the fourth quarter of 2008.

• On January 8, 2009 Kinross completed its acquisition of the Lobo-Marte project in Chile. The Company will undertake a drilling, design, engineering, and metallurgical testing program with the expectation of upgrading the resource base to an NI 43-101 compliant reserve.

• On January 29, 2009 a new mining law officially came into effect in Ecuador, allowing Kinross to begin the permitting process to recommence advanced exploration work on its Fruta del Norte (FDN) project.

• The Board of Directors declared a dividend of $0.04 per share payable on March 31, 2009 to shareholders of record on March 24, 2009.

(1) Unless otherwise stated, 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, both reduced for Kupol sales attributable to a third-party 25% shareholder.

(3) Attributable margin per ounce sold is defined as average realized gold price per ounce less attributable cost of sales per gold equivalent ounce sold.

(4) Cash flow before changes in working capital is a non-GAAP measure and is defined as cash flow provided from operating activities before changes in operating assets and liabilities.

CEO commentary

Tye Burt, Kinross President and CEO, made the following comments in relation to the fourth quarter and year-end 2008 results:

"We are proud of what Kinross employees achieved in 2008. Our operations delivered strong performance while our project teams successfully brought three new growth projects into production. The result was record production of 1.8 million ounces, a 48% increase in revenue, and a 33% increase in margins over 2007. As expected, our costs also declined as our new projects came into production, with fourth quarter cost of sales per ounce 8% lower than the previous quarter, and 11% lower than fourth quarter 2007. Our higher margins translated into cash flow of $222.4 million or $0.34 per share before changes in working capital in the fourth quarter of 2008, an increase of 240% in cash flow per share over the fourth quarter of 2007.

"With increased production from our growth projects in 2009, we expect to grow production to 2.4 to 2.5 million ounces in 2009. At the same time, we are setting the stage for our next wave of growth. Lobo-Marte remains at the forefront of our project pipeline, with the project expected to benefit from previous mining activity at the site and our own extensive resources and technical experience in the area. The project team has laid out a detailed work program to apply for drilling permits, gather baseline environmental data, and begin a pre-feasibility study which we expect to complete by year-end. In Ecuador, with the new mining law now in effect, we are working closely with government and the local community to advance work on our Fruta del Norte project. We are working to obtain the necessary permits to advance our exploration program, and will commence an 8,000-meter infill drilling program once we have obtained the necessary permits.

"We finished 2008 with $525 million in cash and short-term investments. We recently took advantage of a favourable capital market window to further improve our liquidity position with a public equity offering, resulting in $415 million in total proceeds and leaving Kinross in an even stronger financial position amid turbulent markets."

Please download the PDF for the full version of this news release.

Click here to download the 2008 Annual Report (PDF).

Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, 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, possible events, statements with respect to possible events, the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production, expected capital expenditures, costs and timing of the development of new deposits, success of exploration, development and mining activities, permitting time lines, 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”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “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 and assumptions of Kinross 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 Management’s Discussion and Analysis, our offer and take-over bid circular previously filed in respect of Aurelian Resources Inc. (the "Aurelian Bid Circular") and our final short form prospectus dated and filed on January 29, 2009 (the “January 2009 Prospectus”),or as otherwise expressly incorporated herein by reference as well as: (1) there being no significant disruptions affecting operations, 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) permitting, development and operations at the Kettle River — Buckhorn project continuing on a basis consistent with Kinross’ current expectations; (4) development of the Phase 7 pit expansion and the heap leach project at Fort Knox continuing on a basis consistent with Kinross’ current expectations; (5) permitting, development and operations at the Kupol gold and silver project continuing on a basis consistent with Kinross’ current expectations; (6) the Company’s 75% interest in Kupol remaining grandfathered under the Federal Strategic Investments Law and Amendments to Russian Subsoil Law in the Russian Federation, consistent with the Company’s expectations; (7) the viability, permitting and development of the Fruta del Norte deposit being consistent with Kinross’ current expectations; (8) political developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the repeal of Ecuador’s current mining mandate and the implementation of its new mining law keep consistent with Kinross’ current expectations; (9) the new feasibility study to be prepared by the joint venture for Cerro Casale, incorporating updated geological, mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors, and permitting, being consistent with the Company’s current expectations; (10) 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; (11) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian ruble and the U.S. dollar being approximately consistent with current levels; (12) certain price assumptions for gold and silver; (13) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (14) production and cost of sales forecasts meeting expectations; (15) the accuracy of our current mineral reserve and mineral resource estimates; and (16) labour and materials costs increasing on a basis consistent with Kinross’ 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, regulations and political or economic developments in Canada, the United States, Chile, Brazil, Russia, Ecuador, or other countries in which we do business or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including 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 affect Kinross’ actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. Many of these uncertainties and contingencies can 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, the “Risk Analysis” section of our most recently filed Management’s Discussion and Analysis, the "Risk Factors Related to the Offer" section of the Aurelian Bid Circular and the “Risk Factors” section of the January 2009 Prospectus. 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 55%-60% of the Company’s costs are denominated in U.S. dollars.
A 10% change in foreign exchange could result in an approximate $5 impact in cost of sales per ounce.
A $10 change in the price of oil could result in an approximate $2 impact on cost of sales per ounce.
The impact on royalties of a $100 change in the gold price could result in an approximate $5 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 contained in this presentation 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.