January 26, 1999

Toronto, Ontario -

KINROSS GOLD CORPORATION (TSE-K; NYSE-KGC)

announced today that

results for the three months and year ended December 31, 1998 are as follows:

Finanacial Tables

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

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

performance in 1998. Although the average spot price of gold was $294 per ounce compared to $331

in 1997, operating cash flow before non-cash working capital changes was $54,538,000, compared to

$30,592,000 in 1997. This improvement was a result of record gold equivalent production of 874,447

ounces at average total cash costs of $214 per ounce.

For the fourth quarter of 1998, operating cash flow before non-cash working capital changes was

$17,440,000 as compared to $8,621,000 in the fourth quarter of 1997 even though average spot gold

prices for the quarter were $294 per ounce compared to $307 in 1997. Gold equivalent production for

the quarter was a record 287,033 ounces at record low total cash costs of $208 per ounce.

"This record performance from operations in the fourth quarter is indicative of what we set out to

accomplish in 1998" said Bob Buchan, Chairman and Chief Executive Officer. "Kinross operations

recently began implementation of a Continuous Improvement Program which will foster further

improvements in operating results in 1999 and beyond"

Net Loss

As a result of the non-cash write-downs previously announced, the net loss for the year ended

December 31, 1998 was $245,394,000, or $1.08 per share on revenues of $286,597,000. This

compares with the previous year’s loss of $83,731,000, or 71 cents per share on revenues of

$183,506,000. The 1998 results include non-cash after tax write-downs totalling $220,022,000, on

certain mining assets and marketable securities. The 1997 results included non-cash pre-tax write-

downs totalling $87,822,000 ($76,103,000 net of applicable income tax recoveries), on certain mining

assets and long-term investments. Excluding these write-downs the loss per share for 1998 would have

been 13 cents as compared to 10 cents in 1997.

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 874,447 ounces of gold equivalent in 1998, which compares to 499,025 ounces the

previous year. Revenue from the sale of 823,721 ounces of gold and 2,697,000 ounces of silver was

$269,212,000, 55% higher than the $173,190,000 revenue reported in 1997 from the sale of 428,973

ounces of gold and 4,730,000 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

Operating Performance

1998

823,721

$254,221,000

$309

$294

2,697,000

$14,991,000

$5.56

$5.53

1997

428,973

$147,554,000

$344

$331

4,730,000

$25,636,000

$5.42

$4.90

The 75% increase in gold equivalent production resulted in higher production costs of $196,298,000 in

1998, as compared to $137,145,000 in 1997. On a per ounce basis, cash operating costs improved

dramatically in 1998 to $205 per equivalent ounce of gold as compared to $265 in 1997, while total

cash costs (including royalties and production taxes) improved by $54 per ounce in 1998.

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

1998

$205

9

-

214

8

93

$315

1997

$265

2

1

268

7

65

$340

Cash operating costs per ounce of gold equivalent improved in 1998 as a result of the low cost mines

added to the portfolio upon completion of the merger with Amax Gold Inc., improved operating

performance at the Denton-Rawhide and Macassa mines and the impact of lower Canadian and

Zimbabwean dollar exchange rates. Average cash operating costs improved throughout the year and

declined to $197 per ounce of gold equivalent in the fourth quarter to average $205 per ounce for the

year, while total cash costs declined to $208 per ounce in the fourth quarter to average $214 per ounce

for the year.

Royalty costs per ounce of gold equivalent increased to $9 per ounce from $2 per ounce in 1997. The

most significant royalties that the Company incurs are royalty based taxes on production from the

Kubaka mine in Russia.

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

ounce of gold production increased to $8 in 1998 from $7 in 1997. Reclamation costs are expected to

decrease on a per ounce of gold equivalent basis as additional reserves are added over time and the

full annual effect of the assets acquired pursuant to the Amax Gold merger is recognized.

Primary Operations



Hoyle Pond Mine

The Company acquired the Hoyle Pond mine, located in Timmins, Ontario, in 1993. Gold production in

1998 was 158,953 ounces, which compares to 174,317 ounces in 1997. Total cash costs were $171 per

ounce of gold as compared to $186 in 1997. Cash operating costs per ounce of gold decreased in 1998

due to lower unit costs of mining and a weaker Canadian dollar. Estimated gold production for 1999 is

approximately 165,000 ounces.

Kubaka Mine

On June 1, 1998, the Company acquired a 50% ownership interest in the Kubaka mine, located in the

Magadan Oblast in Far Eastern Russia pursuant to the merger with Amax Gold. Gold equivalent

production for the Company’s 50% interest for the seven months of ownership in 1998 was 154,350

ounces. Total cash costs for the seven month period were $149 per gold equivalent ounce. The Kubaka

mine continues to perform very well, having achieved the Company’s lowest cash operating costs per

ounce. As a result of the continued success at the Kubaka operations, the Company increased its

ownership interest to 53% in late December of 1998. Estimated gold equivalent production for the

Company’s ownership interest in 1999 is approximately 210,000 ounces.

Fort Knox Mine

On June 1, 1998, the Company acquired the Fort Knox mine, located near Fairbanks, Alaska pursuant

to the merger with Amax Gold. Gold production for the seven months of ownership in 1998 was

203,010 ounces. Total cash costs for the seven month period were $199 per ounce of gold. Total cash

costs increased to $210 per ounce of gold during the fourth quarter due to mining a lower grade

portion of the reserves. With the recently expanded mill capacity and slightly improved grades, the

mine is expected to return to total cash costs per ounce of gold similar to what was achieved in the

first four months of Kinross’ ownership. Estimated gold production for 1999 is approximately 370,000

ounces.

Refugio Mine

On June 1, 1998, the Company acquired a 50% interest in the Refugio mine, located in Chile pursuant

to the merger with Amax Gold. Kinross’ share of gold equivalent production for the seven months of

ownership in 1998 was 42,446 ounces. Total cash costs for the seven month period were $338 per gold

equivalent ounce. Total cash costs decreased to $272 per equivalent ounce of gold during the fourth

quarter primarily due to improvements in the reliability of the overland conveyance system. Estimated

gold equivalent production attributable to Kinross’ 50% interest for 1999 is approximately 110,000

ounces.

Macassa Mine

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

1998 was 78,034 ounces, which compares to 56,709 in 1997. Total cash costs were $257 per ounce as

compared to $370 in 1997. Total cash costs per ounce of gold improved dramatically in 1998 due to

improvements in underground mining of the upper levels and a successful crown pillar recover program

at the Lakeshore tailing basin. Estimated production for 1999 is approximately 80,000 ounces of gold.

Denton-Rawhide Mine

The 49% owned Denton-Rawhide mine is located near Fallon, Nevada. The Company’s share of

production in 1998 was 69,015 ounces of gold equivalent, which compares to 66,402 in 1997. Total

cash costs were $235 per ounce of gold equivalent as compared to $247 in 1997. Total cash costs

decreased in 1998 as a result of higher than budgeted run of mine low-grade production, which



increased ounces recovered from the leachpads. Estimated production for 1999 to Kinross’ 49%

interest is approximately 60,000 ounces of gold equivalent.

Blanket Mine

The Blanket mine, located in Zimbabwe, was acquired in 1993. Gold production in 1998 was 35,266

ounces, compared to 35,237 ounces in 1997. Total cash costs were $193 per ounce of gold as

compared to $262 in 1997. Total cash costs per ounce of gold decreased primarily as a result of a

lower Zimbabwean dollar. Estimated production for 1998 is approximately 40,000 ounces of gold.

Other Operations

In addition to its primary operating mines, the Company has five locations in various stages of residual

production or closure. Gold equivalent production from these mines for the year was 133,373 ounces at

average total cash costs of $298 per ounce. Residual production from some of these mines is expected

to contribute approximately 35,000 ounces in 1999. For a summary of ounces produced and total cash

costs refer to the production tables later in this press release.

Capital Expenditures

Capital expenditures declined by 15% in 1998 as $33,840,000 was spent on additions, which compares

to $39,913,000 in 1997. The 1998 capital expenditures focused primarily on the Hoyle Pond and Fort

Knox operations with 80% of total capital expenditures incurred at these two mines. Capital spending

at the Hoyle Pond mine totalled $16,895,000 for exploration drilling, underground development,

additions to the underground mobile fleet and construction of a new mine office and dry complex, while

at the Fort Knox mine $10,234,000 was spent on the tailings dam expansion, the pebble crusher

addition and exploration.

Liquidity and Financial Resources

Cash flow provided from operating activities before changes in non-cash working capital increased by

78% to $54,538,000 as compared to $30,592,000 in 1997. The 1998 cash flow before changes in non-

cash working capital was negatively affected by lower realized gold prices but positively affected by

lower total cash costs per ounce of gold equivalent and increased output.

As at December 31, 1998, the Company’s long-term debt consists of, $49,000,000 relating to the

Kubaka project financing, $8,900,000 on the Kubaka subordinated debt, $71,000,000 on the Alaskan

Industrial Revenue Bonds and various capital leases totalling $22,040,000. The current portion of the

long-term debt is $25,086,000. The current balance sheet reflects the acquisition of a further 3% of

Kubaka; thus the consolidated debt as at December 31, 1998 includes 53% of the Kubaka amounts

outstanding.

During the fourth quarter the Company repaid $6,250,000 of the Kubaka project financing debt,

$7,500,000 of Kubaka working capital debt with funds generated in Russia. In addition, various capital

lease obligations were repaid by $1,258,000.

Outlook

As at December 31, 1998, the Company has $153,413,000 of cash and operating working capital of

$30,779,000 for total working capital of $184,192,000. This combined with low cost production, and a

manageable debt repayment schedule, provides the Company with a solid platform for future growth

when opportunities present themselves.

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.

-30-

For further information:

Robert M. Buchan

Chairman and Chief Executive

Officer

Tel: (416) 365-5650

Gordon A. McCreary

Brian W. Penny

Vice President,

Vice President, Finance and

Investor Relations and Corporate Financial Officer

Development

Tel. (416) 365-5132

Tel: (416) 365-5662

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Index



Kinross Gold: News Archive 1998 Year End Financials

Page 1 of 3

BACK

1998 Year End Financials, Kinross Gold Corporation

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Changes in Financial Position

Kinross Gold Corporation

Consolidated Balance Sheets

(expressed in thousands of U.S. dollars)

As at

December 31

1998

Assets

Current assets

Cash and cash equivalents

Bullion settlements and other accounts receivable

Inventories

Marketable securities

Mineral properties, plant and equipment

Long - term investments

Deferred charges and other assets

As at

December 31

1997

$ 153,413

55,350

54,610

1,248

264,621

809,843

24,953

15,364

$ 1,114,781

$ 190,328

15,707

21,778

18,711

246,524

196,912

16,006

1,598

$ 461,040

Liabilities

Current liabilities

Accounts payable and accrued liabilities

Current portion of long - term debt

Current portion of site restoration cost accruals

$ 49,455

25,086

5,888

80,429

51,952

6,891

28,990

125,854

42,705

3,077

339,898

$ 15,562

1,435

-

16,997

10,011

7,713

18,927

3,805

46,853

3,077

107,383

-

312,406

3,422

96,935

(45,070)

(14,036)

353,657

$ 461,040

Site restoration cost accruals

Deferred income and mining taxes

Deferred revenue

Long-term debt

Debt component of convertible debentures

Redeemable retractable preferred shares

Convertible preferred shares of subsidiary company

Common shareholders' equity

Common share capital

Contributed surplus

Equity component of convertible debentures

Deficit

Foreign currency translation adjustment

88,338

904,212

3,583

103,064

(296,413)

(27,901)

686,545

$ 1,114,781

Kinross Gold Corporation

file://E:\www\kinross\news\arc\990126f.htm

02/06/08



Kinross Gold: News Archive 1998 Year End Financials

Consolidated Statements of Operations

For the years ended December 31

(expressed in thousands of U.S. dollars except per share amounts)

1998

Revenue

Mining revenue

Interest and other income

Expenses

Operating

General and administrative

Exploration and business development

Depreciation, depletion and amortization

$ 269,212

17,385

286,597

196,298

7,279

10,317

81,011

294,905

(8,308)

2,626

-

469

(768)

(11,124)

(3,941)

-

(216,081)

Page 2 of 3

1997

$ 173,190

10,316

183,506

137,145

5,912

4,693

32,508

180,258

3,248

25

-1,675

-2,652

-361

-5,346

-

-7,385

-80,437

(Loss) income before undernoted

Gain on sale of marketable securities

Loss on sale of mineral properties

Foreign exchange gain (loss) and other

Equity loss in associated companies

Interest expense

Writedown of marketable securities

Writedown of long-term investments

Writedown of mineral properties

Loss before taxes and dividends on convertible

preferred

shares of subsidiary company

(Provision for) recovery of income and mining taxes

Loss for the year before dividends on convertible preferred

shares of subsidiary company

Dividends on convertible preferred shares of subsidiary company

Net loss for the year

Increase in equity component of convertible debentures

Net loss for the year attributable to common shareholders

Loss per share

Basic

Fully diluted

Weighted average number of common shares outstanding for the year

(000's)

Total issued and outstanding common shares at December 31

(237,127)

-4,242

(94,583)

10,852

-241,369

(4,025)

(245,394)

(5,949)

($251,343)

-83,731

-

(83,731)

(5,356)

($89,087)

($1.08)

-

233,220

292,596

($0.71)

-

123,874

126,879

Kinross Gold Corporation

Consolidated Statements of Changes in Financial Position

For the years ended December 31

(expressed in thousands of U.S. dollars)

file://E:\www\kinross\news\arc\990126f.htm

02/06/08



Kinross Gold: News Archive 1998 Year End Financials

1998

Net inflow (outflow) of cash related to the following activities:

Operating:

Loss for the year before dividends on convertible preferred

shares of subsidiary company

Items not affecting cash:

Depreciation, depletion and amortization

Writedown of mineral properties

Writedown of long-term investments

Writedown of marketable securities

Loss on sale of marketable securities

Realization of foreign exchange loss on disposal of assets

Deferred income and mining taxes

Deferred revenue realized

Site restoration cost accruals

Other

Page 3 of 3

1997

($241,369)

81,011

216,081

-

3,941

(2,626)

-

(334)

(9,865)

6,911

788

54,538

($83,731)

32,508

80,437

7,385

-

-25

2,500

-11,496

-

2,653

361

30,592

20,726

17,960

7,611

-18,369

-

-8,928

-2,995

46,597

23,424

-195

-2,171

-3,426

-3,155

-

14,477

-39,913

-24,503

-6,931

-

(71,347)

(10,273)

200,601

$ 190,328

Deferred revenue - hedging gains

Changes in non-cash working capital items

Bullion settlements and other accounts receivable

Inventories

Marketable securities

Commodity derivative contracts

Accounts payable and accrued liabilities

Effect of exchange rate changes

Financing:

Issuance of common shares, net

Conversion of preferred shares

Redemption of convertible debentures

Convertible debentures

Repayment of debt

Dividends on convertible preferred shares of subsidiary company

Investing:

Additions to mineral properties, plant and equipment

Business acquisitions, net of cash acquired

Long-term investments and other assets

Proceeds from the sale of equipment

Decrease in cash and cash equivalents

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

BACK

13,885

(227)

10,708

7,615

45,952

-23,122

(7,366)

101,983

591,967

-

-

(4,148)

(361,468)

(4,025)