Toronto, Canada
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October 16, 2002
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Kinross Gold Corporation (TSX-K; Amex-KGC)
is pleased
to announce that its 54.7%-owned Russian subsidiary, Omolon Gold Mining Company, has reached
agreement in principle with the Magadan Administration representing itself and a majority of the
Russian shareholders of Omolon. Under the agreement in principle, Omolon will offer to purchase the
outstanding shares currently held by all the Russian shareholders for the Ruble equivalent of US$ 45.4
million and the Administration will ensure that all of these shares will be tendered to this offer. This
arrangement will allow the debt owed to the local Administration by the Russian shareholders to be
repaid. After consummation of the transaction, Omolon would become a 100%-owned Kinross
subsidiary. Following implementation of the agreement in principle, Kinross expects that all pending
lawsuits commenced by the Russian shareholders will be terminated in the process of completing this
transaction. This transaction is expected to close by mid November 2002, and funds to complete this
transaction will be paid out of Omolon’s cash on hand. This agreement was facilitated by participation
of representatives from the Ministry of Finance of the Russian Federation, who will continue to play a
role in implementing the transaction.
While the process of purchasing these shareholdings has taken a great deal of time, Kinross believes
that the decision to buy out the Russian shareholders and resolve the outstanding lawsuits is in the
best interests of both Kinross and the Russian Government and we look forward to working with the
local Administration to develop a plan to put Birkachan into production in 2004. In the meantime, the
open pit mining phase of the high grade Kubaka deposit concluded on October 7, 2002 and the mill will
continue to process stockpiled ore supplemented with ore from the residual mining of Kubaka by
underground methods in 2003. Resumption of exploration at Birkachan and other nearby targets is
expected to restart in November.
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of
the United States Securities Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and objectives of Kinross Gold
Corporation (“Kinross”), are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from Kinross’ expectations are disclosed under the heading
“Risk Factors” and elsewhere in Kinross’ documents filed from time to time with the Toronto Stock
Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
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For further information:
Robert M. Buchan
President and Chief Executive Officer
Tel. (416) 365-5650
Gordon A. McCreary
Vice President, Investor Relations and Corporate
Development
Tel. (416) 365-5132