February 5, 1998.

Toronto, Ontario - KINROSS GOLD CORPORATION (TSE-K; NYSE-KGC) announced today that results

for the three months and year ended December 31, 1997 are as follows:

Financial Tables

All results are expressed in United States Dollars unless otherwise stated.

Kinross is pleased to provide the following detail regarding the Company’s significantly improved

operating performance in the fourth quarter, 1997. Although the average spot price of gold in the

fourth quarter was $307 per ounce compared to $324 in the third quarter, operating income for the

fourth quarter improved to $3,383,000 compared to an operating loss of $769,000 in the third quarter.

This improvement was a result of record quarterly gold equivalent production of 145,204 ounces at a

cash operating cost of $226 per gold equivalent ounce. Despite lower gold prices, operating cash flow

before changes in non-cash working capital improved to $8,621,000 in the fourth quarter compared to

$7,305,000 in the third quarter. The operating results validate the position stated in the third quarter

interim statement that Kinross is a low cost gold producer and is financially strong.

However, in light of the current low gold price, the Company’s annual review of carrying values for its

mining assets has resulted in the decision to write-down a number of its non-producing and/or

depleting assets. Specifically, during the fourth quarter the Company provided additional write-downs

totaling $44,718,000 against the carrying values of the Goldbanks project $22,500,000, the Q.R. mine

$13,516,000, certain exploration assets $6,600,000, and various other assets totaling $2,102,000. The

life of mine analysis for producing mines was performed using an undiscounted cash flow and a $350

per ounce gold price assumption. In addition, in the fourth quarter the Company wrote down certain

investments in junior companies by $7,385,000 and recorded a foreign exchange loss of $2,500,000 on

the disposal of the Golden Kopje mine. As previously announced in the 1997 second quarter interim

statement, the Company provided for a $35,719,000 pre-tax write-down ($24,000,000 after tax) of the

Macassa mine as a result of the series of rockbursts in April.

Net (Loss) Income

As a result of the write-downs, the net loss for the year ended December 31, 1997 was $83,731,000,

or 71 cents per share on revenues of $183,506,000. This compares with the previous year’s earnings

of $10,449,000, or 9 cents per share on revenues of $208,492,000 and earnings of $12,552,000, or 12

cents per share on revenues of $137,887,000 for 1995. Operating cash flow before changes in non-

cash working capital was $30,592,000 in 1997, compared to $57,900,000 in 1996 and $38,503,000 in

1995. The 1997 results include a pre-tax write-down of $80,437,000 ($68,718,000 net of applicable

income taxes) as a result of the review of the carrying value of our mines while the 1996 results

included a write-down of $5,221,000 ($3,693,000 net of applicable income taxes) primarily a result of

the impairment in value of the Golden Kopje mine.

Revenues

Gold and Silver Sales



The Company’s primary source of revenue is from the sale of its gold and silver production. The

Company produced 499,025 ounces of gold equivalent in 1997 which compares to 524,795 ounces last

year and 342,365 ounces in 1995. In 1997, higher gold equivalent production was achieved at Hoyle

Pond, DeLamar and the Blanket mine, while lower gold equivalent production was achieved at Denton-

Rawhide, Macassa, Candelaria, Q.R. and the Golden Kopje mine, when compared to the previous year.

Revenue from the sale of 428,973 ounces of gold and 4,730,000 ounces of silver was $173,190,000,

15% lower than the $204,759,000 revenue reported in 1996 from the sale of 450,102 ounces of gold

and 5,568,000 ounces of silver and significantly higher than the revenue reported in 1995 of

$133,254,000 from the sale of 274,355 ounces of gold and 5,024,000 ounces of silver

Summary Information

Gold production

Gold revenues

Average realized gold price per ounce

Average gold spot prices

Silver production

Silver revenues

Average realized silver price per ounce

Average silver spot prices

Gold and Silver Hedging

The Company, under its gold and silver hedging program, realized $344 per ounce on gold sales and

$5.42 on silver sales in 1997 compared with average spot prices of $331 for gold and $4.90 per ounce

for silver. The $13 per ounce of gold premium and fifty two cent per ounce of silver premium over spot

prices equates to $8,036,000 in additional revenue for the Company in 1997. In 1996, the Company

realized $388 per ounce on gold sales and $5.42 on silver sales, which compares to average spot prices

of $388 and $5.20 respectively. In 1995, the Company realized $388 per ounce on gold sales and

$5.34 on silver sales, which compares to average spot prices of $384 and $5.20 respectively. In August

of 1996, the Company reviewed each mine on a stand alone basis and entered into hedging contracts,

in addition to the contracts outstanding at that time, to provide price protection on the higher cost gold

and silver production over the next five years. In addition, the Company established various lines of

credit which will mitigate negative mark to market adjustments. The main hedging tools employed by

the Company at that time were fixed forward sales contracts, spot deferred contracts, no-cost

minimum / maximum option strategies and gold loan repayments. The fixed forward sales contracts

and spot deferred contracts earn a premium, or contango, in the forward market. No-cost minimum/

maximum option strategies ensure a minimum floor price by buying a put option, which is financed by

selling a call option for a fixed ceiling price. In late 1997, due to low gold spot prices the Company had

a substantial unrealized gain on these contracts. As a result of this, the Company adjusted its gold

position by repurchasing certain spot deferred forward sales contracts and fixed forward sales contracts

which realized a $22,244,000 gain in December. The realized gain will be brought into income on the

production dates originally designated, of which $18,927,000 has been recorded as deferred revenue

on the balance sheet. In January 1998, the Company further adjusted its gold position by repurchasing

certain spot deferred forward sales contracts, fixed forward sales contracts and put options which

realized a $14,376,000 gain. This gain will have the same accounting treatment as indicated above. As

a result of the hedging transactions in December, 1997 and January, 1998, Kinross’ total gold hedge

1997

428,973

$147,554,000

$344

$331

4,730,000

$25,636,000

$5.42

$4.90

1996

450,102

$174,557,000

$388

$388

5,568,000

$30,202,000

$5.42

$5.20

1995

274,355

$106,402,000

$388

$384

5,024,000

$26,852,000

$5.34

$5.20



position currently consists of the recently purchased 1998 put options for 80,400 ounces at an average

strike price of $283 per ounce plus a total of 50,400 ounces of calls sold previously for the years 1998

to 2001 at strike prices ranging from $383 to $400 per ounce. The Company’s total silver hedge

position consists of 500,000 ounces of fixed forwards in 1998 at $5.32 plus 500,000 ounces of calls in

1998 at a strike price of $6.01, leaving approximately 2,600,000 ounces of expected 1998 silver

production unhedged.

Interest and Other Income

The Company invests its surplus cash in high quality, short-term investments which earned interest

during the year. Interest and other income totaled $10,316,000 as compared to $3,733,000 in 1996

and 4,633,000 in 1995. Interest and other income increased substantially in 1997 as a result of higher

cash balances due to the convertible debenture financing which occurred in December of 1996.

Costs and Expenses

Operating Costs

Total gold equivalent production was 499,025 equivalent ounces as compared to 524,795 in 1996 and

342,365 in 1995. Lower production resulted in lower production costs of $137,145,000 in 1997, as

compared to $138,347,000 in 1996 and $89,938,000 in 1995. On a per ounce basis, cash operating

costs were $265 per equivalent ounce of gold as compared to $255 in 1996, and $250 in 1995.

Consolidated Production Costs

($ per Ounce of Gold Equivalent)

For the year ended December 31,

Cash operating costs

Royalties

Production taxes

Total cash costs

Reclamation

Depreciation and amortization

Total production costs

1997

$265

2

1

268

7

65

$340

1996

$255

2

1

258

6

57

$321

1995

$250

3

1

254

8

55

$317

Cash operating costs per ounce of gold equivalent were higher than anticipated during 1997 as a result

of certain operating problems incurred in the first nine months of the year but declined substantially

during the fourth quarter. Average cash operating costs were $281 per ounce of gold equivalent during

the first nine months but declined to $226 in the fourth quarter to average $265 per ounce for the year.

Royalty costs per ounce remained unchanged from 1996 at $2 per equivalent ounce of gold as

compared to $3 in 1995. The mines in Canada and the United States are subject to various royalties

with the most significant being a tonnage royalty on certain optioned properties at Hoyle Pond.

Production taxes have remained constant over the last three years at $1 per ounce of gold equivalent

production. Production taxes represent the Nevada Net Proceeds tax on production from the Denton

Rawhide and Candelaria mines.

The Company accrues reclamation costs on a unit of production basis. Reclamation costs per equivalent

ounce of gold production increased to $7 in 1997 from $6 in 1996 and $8 in 1995. Reclamation costs



are expected to remain at these levels or decrease on a per ounce of gold equivalent basis as

additional reserves are added over time.

Canadian Operations

Hoyle Pond Mine

The Hoyle Pond mine, which is located in Timmins, Ontario, was acquired by the Company in 1993.

Gold production in 1997 was 174,317 ounces, which compares to 161,669 ounces in 1996 and 91,611

ounces in 1995. Cash operating costs were $184 per ounce of gold as compared to $156 in 1996 and

$182 in 1995. Cash operating costs per ounce of gold increased in 1997 primarily as a result of

processing higher tonnage at the Bell Creek mill at a lower grade than in 1996. Fourth quarter gold

production rose to 61,757 from 39,027 ounces in the third quarter and cash operating costs declined

from $219 to $139 per ounce. The third quarter at Hoyle Pond had been adversely impacted by certain

technical problems that were rectified by the end of the third quarter. Estimated gold production for

1998 is 165,000 ounces.

Macassa Mine

The Macassa mine, which is located in Kirkland Lake, Ontario, was acquired in 1995. Gold production in

1997 was 56,709 ounces which compares to 80,952 in 1996 and 44,677 for the period of ownership in

1995. Cash operating costs were $370 per ounce as compared to $276 in 1996 and $268 in 1995. Cash

operating costs per ounce of gold were higher than expected in 1997 primarily as a result of the series

of rockbursts on April 12, 1997, which suspended underground operations for the balance of the

second quarter and the majority of the third quarter. As a result of the uncertainty about the viability

of mining at depth, the Company recorded a pre-tax write-down totaling $35,719,000 in the second

quarter of the year. The mine resumed modified underground production, from the upper levels during

the third quarter of 1997 and during the fourth quarter produced 18,935 ounces at cash operating

costs of $310 per ounce. Estimated production for 1998 is 75,000 ounces of gold.

Q.R. Mine

The Q.R. mine is located 70 kilometers south of Quesnel, British Columbia. In July of 1995 construction

of the mine and mill infrastructure was completed. Gold production was 41,115 ounces in 1997 which

compares to 43,629 in 1996 and 21,215 for the six months of operations in 1995. Cash operating costs

were $358 per ounce which compares to $267 per ounce in 1996 and $231 in 1995. Cash operating

costs per ounce of gold were higher than expected in 1997 as a result of lower than expected mine and

consequently mill tonnage as a result of a pit wall failure in the main zone pit and lower than expected

underground tonnage. During the fourth quarter the Company conducted a detailed review of the

operations which resulted in the announcement that the operations would be placed on care and

maintenance once existing stockpiles and readily available underground reserves have been mined. As

a result of this detailed review the Company recorded a pre-tax write-down of $13,516,000. Estimated

production for 1998 of the stockpiles and readily available underground reserves is 10,000 ounces of

gold.

U.S. Operations

Denton-Rawhide Mine

The Denton-Rawhide mine, is located near Fallon, Nevada. On June 30, 1995, the Company increased

its ownership interest in this mine to 49%. The Company’s share of production in 1997 was 66,402

ounces of gold equivalent, which compares to 69,325 in 1996 and 51,163 in 1995. Cash operating

costs were $243 per ounce of gold equivalent as compared to $236 in 1996 and $219 in 1995. Cash

operating costs increased in 1997 as the mine continues to mature and haulage distances from the pit

to the crusher and waste dumps continue to increase. Estimated production for 1998 is 58,000 ounces



of gold and 400,000 ounces of silver.

DeLamar Mine

The DeLamar mine, located in Idaho was acquired by the Company in 1993. Gold equivalent production

in 1997 was 64,380 ounces, which compares to 59,713 in 1996 and 50,768 in 1995. Cash operating

costs were $305 per ounce of gold equivalent as compared to $305 in 1996 and $299 in 1995. Cash

operating costs per equivalent ounce in 1997 was unchanged from 1996. This milling operations

processed higher tonnages at nominally higher gold grades which was offset by higher operating costs

due to increased haulage costs as more production came from the Florida Mountain and Stone Cabin

pits. Estimated production for 1998 is 54,000 ounces of gold and 1,700,000 ounces of silver.

Candelaria Mine

The Candelaria mine, located near Hawthorne, Nevada was acquired by the Company in 1993. Gold

equivalent production in 1997 was 53,142 ounces, which compares to 66,846 ounces in 1996 and

49,162 ounces in 1995. Cash operating costs were $302 per ounce of gold equivalent as compared to

$403 in 1996 and $322 in 1995. Cash operating costs per ounce of gold equivalent decreased in 1997

as a result of higher gold and silver grades of mined ore and the termination of mining in the second

quarter. Residual leaching operations are expected to continue to the year 2000. Estimated production

for 1998 is 4,000 ounces of gold and 1,500,000 ounces of silver.

Zimbabwean Operations

Blanket Mine

The Blanket mine, which is located in Zimbabwe, was acquired in 1993. Gold production in 1997 was

35,237 ounces, which compares to 33,007 ounces in 1996 and 19,736 ounces in 1995. Cash operating

costs were $262 per ounce of gold as compared to $257 in 1996 and $272 in 1995. Cash operating

costs per ounce of gold increased nominally in 1997 as a result higher labor and power costs which was

partially offset by a lower Zimbabwean dollar. Estimated production for 1998 is 42,000 ounces of gold.

The Golden Kopje mine, which is located in Zimbabwe, was acquired in 1993. Gold production in 1997

was 7,723 ounces, which compares to 9,654 ounces in 1996 and 14,033 ounces in 1995. Cash

operating costs were $429 per ounce of gold as compared to $416 in 1995 and $321 in 1995. During

the fourth quarter of 1997, the Company sold its interest in the Golden Kopje mine and recorded a loss

on disposal totaling $1,675,000. In addition, the Company reduced its foreign currency translation

adjustment on the balance sheet by realizing $2,500,000 of foreign currency losses associated with its

investment in the Golden Kopje mine.

General and Administrative

General and administrative expenditures include corporate office expenses related to the overall

management of the business which are not part of direct mine operating costs. The Company has three

offices included in general and administrative costs. These offices are the corporate office in Toronto,

the United States office in Salt Lake City and the Zimbabwean office located in Harare. General and

administrative expenditures totaled $5,912,000 in 1997 as compared to $5,406,000 in 1996 and

$5,776,000 in 1995. General and administrative expenditures increased in 1997 as a result of

increased activities and remains relatively low on a per ounce of gold equivalent basis. General and

administrative expenditures per ounce of gold equivalent was $12 in 1997 as compared to $10 in 1996

and $17 in 1995.

Exploration and Business Development

In 1997 total exploration and business development expenditures were $14,627,000 of which

$4,693,000 were expensed. This represents a 15% increase over 1996 when $12,754,000 were



incurred, of which $3,487,000 were expensed and a substantial increase over 1995 when $6,759,000

were incurred, of which

$2,254,000 was expensed. This reflects the Company’s continued commitment to further expand and

develop the Hoyle Pond property while continuing to focus on future acquisitions and developments.

Depreciation and Amortization

Depreciation and amortization totaled $32,508,000 in 1997 as compared to $30,080,000 in 1996 and

$18,788,000 in 1995. Depreciation and amortization have increased on a per equivalent ounce of gold

basis to $65 per ounce from $57 in 1996 and $55 in 1995. Depreciation and amortization cost per

equivalent ounce of gold increased in 1997 as a result of a larger depreciable basis on the Hoyle Pond

assets as most of these assets are now in production. Depreciation and amortization per equivalent

ounce is expected remain at these levels over the foreseeable future.

Interest Expense

Interest expense totaled $5,346,000 in 1997 as compared to $1,232,000 in 1996 and $439,000 in

1995. The primary component of interest expense is the interest on the convertible debenture debt

component, the preferred share dividends and the interest on the capital leases. Interest expense

increased during 1997 as a result of the interest accrued on the convertible debentures issued in

December of 1996.

Kinross Gold Corporation

Gold and Silver Production

Three Months Ended

December 31,

1997

Gold (Ounces)

Canada

Hoyle Pond

Macassa

Q.R. Mine

United States

Denton Rawhide

DeLamar

Candelaria

Zimbabwe

Blanket

Golden Kopje

8,490

1,060

129,064

8,930

1,683

121,550

35,237

7,723

428,973

33,007

9,654

450,102

13,700

11,688

1,166

15,481

11,903

4,279

58,227

45,675

9,970

62,269

43,884

15,038

61,757

18,935

12,268

45,211

21,240

12,823

174,317

56,709

41,115

161,669

80,952

43,629

1996

1997

Year Ended

December 31,

1996



Silver (000’s Ounces)

United States

Denton Rawhide

DeLamar

Candelaria

104

327

465

896

Total Gold Equivalent Ounces

Kinross Gold Corporation

Cash Operating Costs

( $ Per Ounce of Gold Equivalent)

Three Months Ended

December 31,

1997

Canada

Hoyle Pond

Macassa

Q.R. Mine

United Sates

Denton Rawhide

DeLamar

Candelaria

Zimbabwe

Blanket

Golden Kopje

248

404

226

Kinross Gold Corporation

Total Cash Costs

( $ Per Ounce of Gold Equivalent)

Three Months Ended

December 31,

1997

Canada

Hoyle Pond

Macassa

Q.R. Mine

140

310

281

139

303

258

186

370

358

159

277

267

1996

1997

Year Ended

December 31,

1996

234

782

239

262

429

265

257

416

255

270

300

304

226

294

303

243

305

302

236

305

403

139

310

281

137

302

258

184

370

358

156

276

267

1996

1997

Year Ended

December 31,

1996

145,204

165

341

1,281

1,787

144,975

552

1,263

2,915

4,730

499,025

526

1,180

3,862

5,568

524,795



United Sates

Denton Rawhide

DeLamar

Candelaria

Zimbabwe

Blanket

Golden Kopje

248

403

227

234

782

242

262

429

267

257

416

258

275

305

304

235

301

303

247

313

303

244

313

404

Cash operating costs are costs directly related to the physical activities of producing gold.

Total cash costs include cash operating costs plus royalties and production taxes.

Operating costs per ounce previously reported in 1995 included total cash costs plus accrued

reclamation.

Income Taxes

The effective rate of recovery for income and mining taxes was 11.5% for 1997 compared to an

effective rate of tax of 54.6% in 1996 and 40.9% in 1995. The effective rate of recovery is less than

the statutory rate of 43.5%, primarily, as a consequence of not recognizing a tax benefit on the losses

incurred as a result of the various write-downs. The unrecorded timing differences amount to $26.9

million and will give rise to income tax recoveries, thereby resulting in lower effective tax in 1998 and

future years.

Capital Expenditures

Capital expenditures declined by 45% in 1997 as $40,533,000 was spent on additions, which compares

to $67,343,000 in 1996 and $75,837,000 in 1995. Capital spending at the Timmins operations totaled

$21,090,000 for exploration drilling, underground development, additions to the underground mobile

fleet and further mill modifications. At the Macassa mine, capital expenditures totaled $3,661,000 for

underground development and mill modifications. At the Q.R. mine, capital expenditures totaled

$3,410,000 for underground development, exploration and to complete the overhaul of the power

generating system. At the DeLamar mine, $2,722,000 was spent primarily on the tailings dam

construction and run of mine capital. At the Denton-Rawhide mine, $1,056,000 of capital expenditures

were incurred on exploration and run of mine capital. At the Blanket mine, capital expenditures totaling

$649,000 were used on underground development and exploration. At the Goldbanks property,

$6,099,000 were spent on exploration drilling and permitting activities. At the Aginskoe project,

$542,000 were spent on pre-construction engineering and financing activities.

Long-term Investments and Other

Additions to long-term investments and other totaled $6,931,000 during 1997 which compares to

$8,697,000 in 1996 and $6,264,000 in 1995. Additions to long-term investments in 1997 comprised of

the acquisition of 19.96% of Greystar Resources Ltd. $4,915,000, the acquisition of E-Crete Products

Inc. $840,000 and a further investment in Pentland Firth Ventures Ltd., totaling $1,176,000.

Liquidity and Financial Resources