40 King Street West, 52 Floor

Toronto, ON M5H 3Y2

www.kinross.com

Tel: 416 365 5123

Fax: 416 363 6622

Toll Free: 866-561-3636

nd

Kinross Announces Preliminary 2004 Results and

Preliminary Restated 2003 Results

October 20, 2005… Toronto, Ontario – Kinross Gold Corporation (“Kinross” or the “Company”)

(TSX-K; NYSE-KGC) is providing preliminary financial information for 2004 and preliminary restated

financial information for 2003. This financial information has not been audited and is subject to

change as a result of the audit process. Investors should not place undue reliance on these

preliminary numbers.

Following discussions with regulators Kinross has adopted a new methodology for accounting for the

assets acquired in the merger with TVX Gold Inc. and Echo Bay Mines Ltd. (the “merger”) completed

on January 31, 2003. Kinross will file its audited 2004 financial statements and restated 2003

financial statements in the next few weeks, after its auditors have concluded their work. Kinross will

also file its restated quarterly financial statements for 2004 and quarterly financial statements for 2005

and other regulatory filings as soon as practicable. An amended registration statement for the

transaction with Crown Resources Corporation (“Crown”) will be filed thereafter. The regulators may

have comments on these filings.

All dollar amounts in this press release are expressed in US dollars, unless otherwise stated

2004 HIGHLIGHTS

(unaudited)

•

•

•

•

Gold equivalent production of 1,653,784 ounces.

Cash flow provided from operating activities of $161.2 million for the year.

Capital expenditures of $169.5 million for the year.

Net loss of $55.9 million ($0.16 per share) for 2004, which includes impairment charges totaling

$59.9 million ($0.17 per share) primarily relating to properties that were closed in 2004 or were

nearing the end of their mine life at year end 2004.

Completed the acquisition of the 51% share of Paracatu from Rio Tinto Plc. for $261.2 million on

December 31, 2004.

Net additions to proven and probable reserves of 5.3 million ounces to total 19.4 million ounces at

year end 2004.

The previously recorded goodwill impairment charge of $143.0 million in the third quarter of 2004

has been reversed as part of the 2003 restatement.

•

•

•

2003 RESTATEMENT

(unaudited)

•

As a result of the independent valuation of the assets acquired in the merger, the value of the

acquired mineral interests on the date of the merger has increased by $304.4 million, the future

income tax liability has increased by $83.5 million and the amount recorded as goodwill was

reduced by $175.5 million. Annual depreciation, depletion and amortization charges for 2003

increased by $31.8 million over previously released results due to this restatement.

Impairment charges for the year ended December 31, 2003 included $400.1 million for goodwill,

$14.7 million for property, plant and equipment and $1.9 million for investments.

•

Page 1



“I’m pleased that we are able to provide our investors with financial information and start the process

of updating our regulatory filings. I would like to emphasize that the impairment charges to earnings in

2003 resulting from this restatement are non-cash items,” said Tye Burt, President and Chief

Executive Officer of Kinross. “With this progress, we can hold our annual shareholders’ meeting,

complete the filing for the Crown transaction, and continue to drive our business forward.”

2004 and 2003 Consolidated Financial and Operating Highlights

(unaudited)

(all dollars amounts are expressed in millions, except per share amounts)

Year ended

December 31

(a)

2003

2004

1,653,784

1,654,617

$

$

$

$

$

$

$

$

$

$

$

$

$

666.8

(449.6)

(170.1)

47.1

(59.9)

(55.9)

(55.9)

161.2

1,834.9

333.2

410

401

$

$

$

$

$

$

$

$

$

$

$

$

1,620,410

1,600,246

571.9

(387.5)

(172.7)

11.7

(416.7)

(416.0)

(406.0)

89.5

1,789.7

248.5

364

357

(1.32)

308.6

Operating Highlights:

(b)

Gold equivalent ounces - produced

Gold equivalent ounces - sold

Financial Highlights:

Revenue

Cost of sales

Depreciation, depletion and amortization

Impairment charges

Net loss

Net loss attributable to common shares

Cash flow from operating activities

Total assets

(c)

Long-term financial liabilities

Per Ounce Data:

Average spot gold price

Average realized gold price

Per Share Data:

Loss per share - basic and diluted

Weighted average common shares outstanding - basic

(millions)

(a)

(b)

(c)

(0.16)

$

346.0

2003 revenues associated with TVX and Echo Bay properties include only 11 months from February to December.

Gold equivalent ounces include silver ounces produced converted to gold based on the ratio of the average spot market prices for the

commodities for each year. The ratios were 2004 - 61.46:1 and 2003 - 74.79:1.

Long-term financial liabilities represents the long-term portions of debt and reclamation and remediation obligations, future income and

mining taxes, redeemable retractable preferred shares and other long-term liabilities.

Consolidated Financial Performance

Increased production and sales and higher average gold prices resulted in increased revenues in

2004 over 2003. Equivalent gold ounces sold increased from 1,600,246 ounces in 2003 to 1,654,617

ounces in 2004. The increase in production from 2003 to 2004 was primarily due to the inclusion of

the TVX and Echo Bay properties for only 11 months in 2003.

The Company’s average realized gold price increased from $357 per ounce in 2003 to $401 per

ounce in 2004, positively impacting earnings and cash flow from operations.

Cost of sales increased from $387.5 million in 2003 to $449.6 million in 2004 as a result of higher

production volumes and increases in the costs of fuel, power, labour and other production costs. In

addition, the appreciation of foreign currencies against the U.S. dollar has increased the Company’s

cost of sales at those mines not located in the United States. Included in cost of sales is a revision to

accretion expense of $12 million, primarily related to the closure of the Lupin mine.

Page 2



General and administrative costs increased by $11.4 million from $25.0 million in 2003 to $36.4 million

in 2004 as a result of increased severance and stock options expense.

The net loss for 2004 was $55.9 million compared with a restated net loss in 2003 of $416.0 million.

The loss in 2003 included restated higher depreciation, depletion and amortization of $172.7 million,

an increase of $31.8 million over previously reported results. The loss in 2003 also included total

impairment charges of $416.7 million. The Company’s financial results in 2004 were negatively

affected by the impairment charges of $59.9 million, primarily related to the write-down of the carrying

value of assets and inventory at Kubaka, Lupin, Gurupi and New Britannia.

Cash flow from operating activities increased in 2004 to $161.2 million from $89.5 million in 2003. At

December 31, 2004, Kinross’ cash and cash equivalents, including restricted cash and short-term

investments, had decreased by $195.9 million from the previous year end to $55.0 million. In

addition, total debt had increased during the year by $92.8 million to $122.9 million. The change

during the year in the Company’s financial position resulted from:

•

•

•

•

•

•

The use of $261.2 million in cash (including preliminary estimates of working capital

adjustments) to acquire the remaining 51% of the Paracatu mine in Brazil;

Capital expenditures of $169.5 million;

Net investment of $11.8 million in long-term investments;

Reclamation expenditures of $17.9 million;

Repurchase of common shares for $8.7 million;

Cash flow from operating activities of $161.2 million, which partially offset the uses of cash.

Operations Update

Paracatu

(Brazil; 100%)

Gold production was slightly higher in 2004 vs. 2003. Grade and recovery rates were similar in both

periods. Higher costs were the result of higher energy costs, increased contracted service costs and

a strengthening of the Brazilian Real against the U.S. dollar of approximately 5%.

Production in 2005 is forecast to be slightly lower on a 100% basis as a result of the refurbishment of

the ball mills in first quarter of 2005.

In February 2005, Kinross' Board of Directors approved funding for basic engineering for a semi-

autogenous grinding (“SAG”) mill expansion project. The mill is planned to be expanded over a four-

year period from its current capacity of 18 million tonnes per year. After basic engineering is

completed in early 2006, a final capital cost estimate will form the basis for a final funding decision by

the Board of Directors in 2006. Exploration drilling is continuing onsite.

Fort Knox

(USA; 100%)

Gold equivalent ounces produced declined by 14% as a result of the decision to defer production from

the higher grade True North deposit for the first half of 2004, which resulted in lower ore grade and

fewer tonnes of ore processed. The decrease in ore milled in 2004 was also the result of harder ore

from the Fort Knox pit being processed through the mill for the first six months, compared with the

blended ore from True North and Fort Knox for the full year in 2003. A slight decrease in operating

costs reflects the suspension of mining at True North for the latter half of 2004. The decrease in costs

was offset by higher reagent costs and higher labour costs, as increased manpower was required to

operate a larger fleet, which included the addition of larger capacity mining equipment.

Production for 2005 is forecast to be slightly lower compared to 2004 as a result of lower grades,

partially offset by improved recovery rates.

Page 3



Round Mountain

(USA; 50%, operator)

An increase in production and operating costs in 2004 was due to the inclusion of only 11 months of

operations in 2003. Production and costs were also affected by the failure of an electrical transformer

in the second half of 2003. As a result, the focus shifted to accelerating ore placement on the leach

pads, to help offset milling and crushing limitations due to power constraints. A feasibility study has

been completed on the possibility of a pit expansion to extend the mine life beyond its current limit

and will be reviewed by the joint venture partners, Kinross and Barrick. In addition, an underground

exploration program has begun to evaluate a known target with preliminary results expected in 2006.

Production in 2005 is expected to be lower due to lower forecasted grades and recovery rates.

La Coipa

(Chile; 50%)

Gold equivalent production was higher in 2004 due to the inclusion of only 11 months in 2003. On a

full year basis, production was 4% lower due to lower grade, lower recovery rates and fewer tonnes.

Production, on a gold equivalent basis, is expected to be slightly lower in 2005 due to the mining of

lower grade ore.

Porcupine JV

(Canada; 49%)

Production in 2004, as compared with 2003, was lower due to lower grades and fewer tonnes

processed resulting from the planned closure of the Dome underground mine in late May 2004.

Mining continued at the Dome open pit and Hoyle underground mines. Costs, on a per ounce basis,

were higher due to lower production, rising operating costs and a stronger Canadian dollar.

Production for 2005 is expected to be slightly lower than 2004. The closure of the Dome open pit later

in 2005 is expected to be offset by the commencement of production from the Pamour open pit.

Refugio

(Chile; 50%, operator)

In 2001, due to low gold prices and operational difficulties, mining activities were suspended and the

operation was placed on care and maintenance. In late 2002, a multi-phase exploration program

commenced and in 2003 it was determined that the mine would be recommissioned.

Production in 2005 is forecast to be significantly higher as a result of the restart of mining in the

second half of 2005.

The recommissioning is going well, with a production rate of 40,000 tonnes per day being achieved

during the third quarter of 2005. The Company’s share of the capital costs totaled approximately $67

million. The increased costs as compared to the original plan were due to unexpected delays and

higher input costs. The recommissioned mine is capable of producing approximately 115,000 to

130,000 ounces annually to Kinross’ account.

Crixas

(Brazil; 50%)

Gold production was higher in 2004 due to the inclusion of only 11 months in 2003. While grade and

recovery rates were similar, operating costs increased due to higher labour and power costs and the

appreciation of the Brazilian Real against the U.S. dollar.

Production in 2005 is expected to be similar to 2004.

Musselwhite

(Canada; 32%)

Gold production was up 18% in 2004 due to the inclusion of only 11 months in 2003, but also due to

more ore being processed (up by 13%), as a result of improved equipment utilization. With the

Page 4



increased production along with higher realized gold prices. Operating costs were up 32% during the

year as a result of increased mining activity along with increased labour and consumable costs, and a

stronger Canadian dollar.

During 2005, grade, recovery rate and production are expected to be similar to 2004.

Kettle River

(USA; 100%)

At the time Kinross acquired Kettle River in January 2003, the mine was idled. The Company

recommenced operations in December 2003. Operating costs were higher than expected due to

increased fuel and consumable costs. A toll milling agreement between the Company and Crown

Resources has allowed the permitting to proceed at Buckhorn. Permitting should be completed in

2006.

Production in 2005 is forecast to be lower than 2004 as a result of the cessation of mining in the fourth

quarter of 2004 as the mine ran out of ore as expected.

Kubaka

(Russia; 98.1%)

Gold equivalent production in 2004 was approximately 25% lower than in 2003 due to the processing

of lower grade stockpiles and an 8-week scheduled shutdown of the mill. The shutdown was to allow

for more efficient operations of the mill and to eliminate overtime-related labour costs associated with

vacations. The cost increase, despite lower production, reflects lower grades and additional costs to

transport the ore from the Birkachan property to the mill, partially offset by reduced selling costs and

lower property taxes. The lower gold production was partially offset by higher realized gold prices.

Production in 2005 is forecast to increase as a result of the full availability of the Birkachan deposit

and higher grades at Birkachan.

New Britannia

(Canada; 50%, operator)

Development activities at the New Britannia mine were suspended in the first quarter of 2004. In early

2005, after exploration efforts were unable to define extensions to the ore body that could be mined

profitably, the decision was made to place the mine on care and maintenance. As a result of the

suspension of development activities in 2004, production dropped to 23,652 gold equivalent ounces,

compared with 31,627 ounces in 2003.

No production will come from the mine in 2005 as it is shut down.

Lupin

(Canada; 100%)

In August 2003, the Company announced the suspension of operations at Lupin due to lower than

expected gold production and higher costs. Plant and equipment were placed on care and

maintenance pending a review of alternatives for the mine. This review concluded that the

development of a mine plan to extract previously developed remnant ore was appropriate.

Accordingly, the mine recommenced production in March 2004 and produced 66,577 gold equivalent

ounces during the balance of the year, an increase of 19% over 2003.

No production will come from the mine in 2005 as it is shut down.

Reserves & Exploration

Reserves increased from 14.1 million ounces at the end of 2003 to 19.4 million ounces at the end of

2004. The acquisition of the remaining 51% interest in the Paracatu mine in Brazil at the end of 2004

increased reserves by 4.3 million ounces. The remainder of the increase came from net additions to

reserves (after production) at existing operations as well as increases in the gold price used to

Page 5



calculate reserves at the end of 2004 of $350 per ounce compared to $325 per ounce at the end of

2003. Porcupine, Refugio and Fort Knox all had net additions to reserves after production in 2004. A

total of 380,000 meters of drilling was completed at Kinross properties in 2004. The largest programs

were at Porcupine, Musselwhite and Round Mountain.

380,000 meters drilled in 2004

Porcupine

Musselwhite

Round Mountain

Kubaka

Gurupi

La Coipa

Crixas

Kettle River

Back River*

Fort Knox

Other

20,000

40,000

60,000

meters

80,000

100,000

* Back River includes the George/Goose Lake properties in Nunavut.

At

Round Mountain,

drilling was completed to determine the economics of a pit expansion. A total of

183 holes and over 39,000 meters of drilling was completed on this project.

Exploration in and around the current pit at

Fort Knox

continues to indicate that the ore body is open

to the south and northeast. Additional drilling is planned in 2005.

Kinross became operator of the

Paracatu

mine in December 2004. A 30,000-meter drilling campaign

for 2005 was rolled out and commenced in January. Results from this campaign are pending and are

expected to add to reserves.

Investing Activities

Net cash used in investing activities was $442.3 million in 2004 versus $50.1 million in 2003. The

increase in 2004 included $261.2 million used in the acquisition of the remaining 51% of the Paracatu

mine. Additions to property, plant and equipment were $169.5 million in 2004 compared to $73.4

million in 2003. The following unaudited schedule provides a breakdown by mine of the capital

expenditures:

Page 6



(millions )

2004

$

58.7

5.8

8.8

24.5

1.0

3.6

3.9

1.6

43.4

17.5

0.7

169.5

2003

$

(a)

Fort Knox

Paracatu

Round Mountain

Porcupine

La Coipa

Crixás

Musselwhite

Kettle River

Refugio

O ther O perations

Corporate & O ther

Total

(a)

2003 results include TVX and Echo Bay properties for 11 months only.

26.5

5.2

5.7

8.3

0.5

3.2

2.7

9.4

1.5

4.0

6.4

73.4

$

$

Capital expenditures increased $96.1 million from $73.4 million in 2003 to $169.5 million in 2004. The

major focus included expenditures at

Fort Knox

on mine development, the tailings dam and

equipment, the recommissioning of

Refugio

and development of the Pamour pit at

Porcupine.

Capital expenditures for 2005 are forecast to be between $160 - $170 million, with the largest

spending at Fort Knox, Paracatu and Refugio.

Restatement of Purchase Price Allocation

The original allocation of the purchase price to the assets acquired in the merger as at January 31,

2003 has been restated as follows:

(unaudited)

(all amounts are expressed in millions, except per share amounts)

Previous

2003

177.8

7.14

1,269.8

48.9

1,318.7

52.8

(213.7)

(283.9)

44.1

918.0

Revised

2003

177.8

7.14

1,269.8

48.9

1,318.7

136.3

(168.3)

(588.3)

44.1

742.5

Change

-

-

-

-

-

83.5

45.4

(304.4)

-

(175.5)

Common shares of Kinross issued to Echo Bay and TVX

shareholders

Value of Kinross common stock per share

Fair value of the Company’s common stock issued

Other items

Total Purchase Price

Add: Future income tax liabilities

(a)

Less: Property, plant and equipment

Mineral interests

Other items

Residual purchase price allocated to goodwill

(a) Reclassification from property, plant and equipment to mineral interests.

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Restatement of 2003 Financial Statements

Following comments from, and discussions with, regulatory authorities, Kinross has adopted a new

methodology to allocate the purchase price in the merger and assess the value of the associated

goodwill. This resulted in the need to restate its consolidated financial statements for the year ended

December 31, 2003 and its interim financial statements for the quarters in 2003 and 2004. Changes

were made to the purchase price allocation, allocation of goodwill to reporting units and subsequent

impairment testing of the assets and liabilities acquired in the TVX and Echo Bay transaction. An

independent valuation firm was engaged to provide valuations of the significant assets and liabilities

acquired as part of the merger. The independent valuations resulted in an increase in the fair value

of the assets acquired and a consequential reduction in goodwill as of the acquisition date. The

Page 7



revised purchase price allocation resulted in $742.5 million of goodwill, down from the $918.0 million

previously recorded. The goodwill was then allocated to reporting units acquired in the merger.

The independent valuation firm also reviewed the impairment testing as at December 31, 2003.

Based on the results of the impairment testing, Kinross has recognized for the 2003 fiscal year an

impairment of long-lived assets of $14.7 million relating to property, plant and equipment, $1.9 million

relating to investments and $400.1 million relating to goodwill. The total impairment of $416.7 million

for the year ended December 31, 2003 compares with an impairment of $9.9 million to long-lived

assets and investments and no impairment to goodwill that had been previously recorded. In addition

to the impairment losses, depreciation, depletion and amortization increased from $140.9 million to

$172.7 million, the provision for income taxes decreased from $13.1 million to $1.3 million and net

earnings attributable to common shareholders of $19.7 million has been restated to a net loss of

$406.0 million. The restatement also reflects the impact of the adoption of CICA Handbook section

3110 “Asset Retirement Obligations”, which was adopted by the Company effective January 1, 2004

and applied retroactively. A more detailed description of the adoption, including the impact on prior

financial results will be provided in the notes to the audited financial statements.

The following table highlights the impact of the restatement on previously reported 2003 results:

(unaudited)

(all amounts are expressed in millions, except per share amounts)

Previous

2003