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nd

PRESS RELEASE

March 30, 2006

Kinross announces fourth quarter and year end 2005 results

2005 marked by strong revenues and completion of comprehensive review resulting in

non-cash charges and investment in future growth

Toronto, Ontario

–

Kinross Gold Corporation (TSX-K; NYSE-KGC) (“Kinross” or the “Company”),

announced today its unaudited results for the fourth quarter and year ended December 31, 2005.

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

Highlights as at year end 2005

•

Kinross achieved its planned production of 378,533 gold equivalent ounces for the fourth quarter

and 1,608,805 gold equivalent ounces for the year. Gold equivalent sales were 389,037 ounces in

the fourth quarter and 1,627,675 ounces for the year at a cost of sales per ounce

1

of $285 per

ounce for the fourth quarter and $275 per ounce for the year.

Net loss of $154.3 million, or $0.45 per share in the fourth quarter and net loss for the year of

$216.0 million or $0.63 per share. Contributing to the net loss in the fourth quarter were non-cash

impairment charges of $147.2 million (which included a charge of $141.8 related to the Fort Knox

operations in Alaska), or $184.7 million for the year (which also includes the previously reported

impairment charge of $36.8 million related to the Aquarius project). Also included were accruals for

future reclamation obligations of $47.0 million for the fourth quarter and $56.0 million for the year.

Revenue in the fourth quarter was $190.0 million and $725.5 million for the year. At year end,

revenue was 9% higher year-over-year mainly due to increased gold prices.

Cash flow from operating activities in the fourth quarter was $23.8 million and $133.7 million for the

year down from $161.2 million in 2004 primarily due to higher operating costs and changes in

working capital.

Kinross’ cash position was $97.6 million at year end, up from $47.9 million at year end last year.

Capital expenditures were $32.9 million in the fourth quarter and $142.4 million for the year.

Gold reserves increased 27% year-over-year to 24.7 million ounces.

Strengthened management team and completed a comprehensive strategic review of Kinross’

assets and investments. Disposed of non-core assets and prioritized exploration and acquisition

targets.

Steps commenced to increase future production through successful refurbishment and restart of

the Refugio mine in Chile and Crown Resources agreement extended with amended terms.

•

•

•

•

•

•

•

•

1

Cost of sales per ounce is computed by dividing cost of sales by gold equivalent ounces sold.



Summary of financial and operating results

Fourth Quarter

(dollars in millions, except per share amounts)

2005

378,533

389,037

$

190.0

$

$

$

$

$

$

$

$

$

$

110.9

47.0

2.0

141.8

(176.4)

(154.3)

(0.45)

23.8

491

285

2004

424,484

413,966

$ 179.2

$

$

$

$

$

$

$

$

$

$

104.2

14.8

12.4

46.1

(81.4)

(88.0)

(0.25)

57.9

434

252

Years ended December

31,

2004

2005

1,608,805

1,627,675

$

725.5

$

$

$

$

$

$

$

$

$

$

448.1

56.0

8.7

171.9

(211.2)

(216.0)

(0.63)

133.7

445

275

1,653,784

1,654,617

$

666.8

$

$

$

$

$

$

$

$

$

$

402.4

21.4

12.4

46.1

(67.9)

(63.1)

(0.18)

161.2

404

243

Gold equivalent ounces - produced

Gold equivalent ounces - sold

Metal sales

Cost of sales (excludes accretion and reclamation

expense, depreciation depletion and amortization)

Accretion and reclamation expenses

Impairment of goodwill

Impairment of property, plant and equipment

Operating loss

Net loss

Basic and diluted loss per common share

Cash flow from operating activities

Realized gold price

Cost of sale per ounce sold

(a)

(a) 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 2005-60.79:1 and 2004-61.46:1.

Revenue from metal sales increased by 9% year-over-year to $725.5 million in 2005 from $666.8

million in 2004. The increase was primarily as a result of a higher realized gold price. During 2005, the

Company realized an average price of $445 per ounce on the sale of its gold against an average spot

price of gold for the year of $444 per ounce. During 2004, the Company realized an average gold price

of $404 per ounce versus an average spot price of $409 per ounce.

“In 2005, Kinross operations delivered strong results in terms of production and cost of sales. We

completed a comprehensive review of our assets, investments and reserves and as a result took a

number of non-cash charges which negatively impacted our earnings.”

“When I joined Kinross a year ago, we knew that 2005 would be a year of strengthening and refocusing

Kinross for the future and resolving accounting matters,” said Tye Burt, President and Chief Executive

Officer of Kinross. “We are now driving ahead with a strategic blueprint for growth in net assets and

cash flow for shareholders guided by our four point plan. Key aspects include growth from core

operations, expanding our systems and operational capacity, attracting and retaining the industry’s

best people and seeking new acquisitions and exploration opportunities.”

“Kinross’ investments will serve the Company well in 2006 and beyond. Historically strong gold prices,

turning the corner on merger and accounting matters and implementing the four point plan have

created a strong platform for the Company,” added Burt. “Our pipeline of in-house projects provides an

exciting opportunity to create further shareholder value.”

In 2005, gold equivalent ounces sold were similar to sales in 2004. Production and ounces sold

decreased at Fort Knox, Round Mountain, Lupin, New Britannia and La Coipa. This was partially offset

by increases at Kubaka, Musselwhite and attributable production at Paracatu due to the purchase of

the remaining 51% at the end of 2004.

Financial results for the quarter and year ended December 31, 2005

Page 2



Between 2004 and 2005, cost of sales increased largely due to industry-wide factors such as higher

costs of fuel, power, labour and other production costs. In addition, the weakening of the U.S. dollar

has increased costs at the Company’s mines not located in the United States. Approximately half of

Kinross’ production and over 60% of our costs are based in U.S. dollars which have helped to insulate

the Company from rising costs related to foreign exchange.

“Kinross is committed to continuous improvement and cost control,” said Burt. “As a non-hedged

producer, we benefit from the full upside of higher gold prices. These factors contribute to a

competitive cash margin per ounce.”

Accretion and reclamation expenses increased to $56.0 million in 2005, from $21.4 million in 2004.

Accretion and reclamation expenses are comprised of $46.0 million related to increased long-term cost

estimates of reclamation costs at mines no longer in production resulting from reclamation plan

changes and increased cost estimates mainly due to higher costs for fuel and contractors and $10.0

million of annual charges.

Non-cash impairment charges of $184.7 million in 2005 included a charge at the Fort Knox operation of

$141.8 million and a $30.1 million asset impairment charge related to the Aquarius project recorded in

the third quarter of 2005.

During 2005, Kinross conducted a comprehensive review of its assets and investments. This review

included an assessment of the Fort Knox operation to examine the impact of higher operating costs as

result of electricity costs, increased fuel prices and lower grade ore at the True North deposit. As

previously disclosed, True North and Gil deposits were reclassified from reserves to resources and

Kinross elected to withdraw from the Ryan Lode project. These factors contributed to the $141.8 million

non-cash impairment charge relating to the Fort Knox operation. Kinross utilized the same impairment

methodology as in 2004, using nominal prices and cost assumptions reflecting inflation and currency

impacts. The gold price assumptions utilized were based on gold price forecasts by an independent

external research firm as well as other external market data.

Analysis of operating loss

(for the year ended December 31, 2005)

As reported

per GAAP

$

725.5

448.1

56.0

167.7

53.7

14.3

26.6

45.3

8.7

171.9

4.1

(6.0)

(211.2) $

Adjusted

earnings

1

$

725.5

448.1

10.0

167.7

99.7

14.3

26.6

35.3

-

-

-

-

23.5

in US$ millions

Metal sales

Cost of sales (excludes accretion and reclamation

expense, depreciation, depletion and amortization)

Accretion and reclamation expense

Depreciation, depletion and amortization

Other operating costs

Exploration and business development

General and administrative

Impairment charges:

Goodwill

Property, plant and equipment

Investments

Gain on disposal of assets

Operating (loss) earnings

Adjustments

$

-

-

(46.0)

-

46.0

-

-

(10.0)

$

(8.7)

(171.9)

(4.1)

6.0

234.7 $

1.

Adjusted earnings shown in the table above is a non-GAAP measure and is provided to give a breakdown of the operating loss.

Financial results for the quarter and year ended December 31, 2005

Page 3



General and administrative expenses increased to $45.3 million, from $36.4 million in 2004. The

increase was largely due to costs related to the regulatory review of the Company’s accounting for

goodwill and subsequent restatement and other one-time charges. Other general and administrative

costs of approximately $10.0 million related primarily to the review of Kinross’ financial statements and

organizational changes.

Cash flow from operating activities during 2005 decreased by $27.5 million to $133.7 million. The

decrease in operating cash flow in 2005 was the result of higher operating costs and changes in

working capital requirements, partially offset by higher gold prices.

Kinross has pursued a growth strategy to increase its reserves and future production capabilities and

as a result the capital expenditures on additions to property, plant and equipment was $142.4 million in

2005 and $169.5 million in 2004.

Outlook

K

inross plans to produce 1.44 million ounces of gold equivalent in 2006 at cost of sales per ounce of

approximately $285 - $295 per ounce. Capital spending is expected to be approximately $115.0 million

for sustaining capital and $170.0 million in capital expansions, primarily at Paracatu, Kettle River and

Round Mountain.

Based on the average gold price to date in 2006

2

, it is expected that the Company’s existing cash

balances, cash flow from operations and existing credit facility will be sufficient to fund the exploration,

capital and reclamation programs budgeted for 2006. The Company is reviewing financing alternatives

and is in negotiations to secure additional debt financing for the Paracatu expansion project.

These increases in capital expenditure are expected to contribute to an increase in production to 1.65

to 1.75 million ounces in 2009.

In 2006, general and administrative expenses are expected to decline somewhat from 2005 levels. In

addition, the Company currently does not anticipate any scope changes or costs to increase above the

2005 year end reclamation and remediation estimates. As a result, accretion expense in 2006 is

expected to be lower at approximately $12.0 million, reflecting only the change related to the interest

element of the discounted liability.

Planned exploration and business development spending will increase in 2006 to $30.7 million.

Exploration will focus on Kinross’ core assets with a goal of replacing reserves at existing locations and

adding new projects and investment opportunities.

“2006 represents the transition year in our operational profile,” said Burt. “We have sold or closed non-

core operations. We are focusing our capital expenditure program on low risk additions to core

operations which will drive production and margin growth in 2007 and beyond. We are bullish on the

gold price and, with a no gold hedging policy, will reap the benefits of increasing gold prices.”

2

Average gold price from January 1 to March 30, 2006 has been $553 per ounce

Financial results for the quarter and year ended December 31, 2005

Page 4



Operations review and update

At

Paracatu,

Brazil, gold equivalent production increased by 95% between 2004 and 2005. The

increase was due to the increase in Kinross’ ownership of Paracatu from 49% in 2004 to 100% in 2005.

On a 100% basis, gold equivalent production decreased by 4% year-over-year. The decrease was due

to lower grade ore and the processing of fewer tonnes, partially offset by a higher recovery rate.

Revenue increased by 107%, or approximately 1% on a 100% basis. Revenue, on a 100% basis,

increased despite fewer ounces being sold as a result of a higher realized gold price. Cost of sales

during 2005 increased by 19% against 2004, on a 100% basis. The increase was due to increased

energy and consumable costs, and appreciation of the Brazilian real against the U.S. dollar, year-over-

year, of approximately 20%. Gold equivalent production in 2006 is expected to increase slightly from

2005 due to more tonnes being processed and a marginally higher recovery rate.

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

grinding mill expansion project at the Paracatu mine. The mill is planned to be expanded over a four-

year period from its current capacity of 17 million tonnes per year. Upon completion of the basic

engineering, expected in April 2006, a complete capital cost estimate will form the basis for a final

decision by Kinross’ Board of Directors. Management currently anticipates a two stage expansion from

the current throughput rate of 17 million tonnes per annum (“mtpa”) to 30 mtpa and from 30 mtpa to 50

mtpa over a 3 to 4 year period. Total costs associated with both expansions are expected to be

between $400.0 million and $500.0 million.

At

Round Mountain

in the United States, production was 4% lower in 2005 than in the prior year due

to fewer tonnes delivered to the dedicated pads. Tonnes processed were lower during the year due to

pit phasing and pit slope failures. Despite fewer ounces being sold, revenues were up by 6% as a result

of higher realized gold prices. Cost of sales increased by 14% due to increased commodity related

costs, higher costs on replacement parts, increased contractor costs on equipment maintenance and

higher royalties and taxes due to a stronger gold price. Production in 2006 is expected to be

approximately 10% lower than in 2005. Expenditures on a new layback program began in 2005 in order

to expand the pit. Ore from this layback is expected to benefit production in late 2006.

Production at the

Fort Knox

mine in the United States decreased by 3% due to lower grade and mill

throughput, which was partially offset by a higher recovery. The lower grade in 2005 was the result of

the suspension of production at the True North deposit in 2004. The lower mill throughput was the

result of processing the harder Fort Knox ore compared with the blended ore from True North and Fort

Knox for much of the prior year. Despite selling 9% fewer gold equivalent ounces in 2005, revenues

remained largely unchanged, due to a higher realized gold price. The decrease in cost of sales reflects

lower gold ounces sold. The cost of sales per ounce of gold sold increased as a result of higher energy

costs partially offset by improved cost efficiencies as a result of the continuous improvement program.

In 2005, the Company recorded an impairment charge against the Fort Knox mine totaling $141.8

million. Production for 2006 is forecast to be lower than 2005, with improved recovery rates expected to

be offset by lower grades.

At the

Porcupine Joint Venture

in Canada, gold production in 2005 was 5% lower than 2004.

Production was positively impacted by higher recoveries and increased mill throughput; however, this

was offset by lower grade. Mill throughput was higher as a result of a mill expansion undertaken to

ensure the harder ores originating from the Pamour pit could be processed through the Dome mill.

Feed grade was lower due to localized highwall instability in the Dome pit, no production from the

Dome underground mine and the commencement of mining at the Pamour pit which has a lower

average grade than the Dome pit. Revenue increased by 3% despite a 6% drop in ounces sold as a

result of higher realized gold prices. Operating costs were also up despite selling fewer ounces due to

higher energy and commodity costs, and a 7% increase in value of the Canadian dollar against the U.S.

Financial results for the quarter and year ended December 31, 2005

Page 5



dollar year-over-year. During the year, the Company’s portion of the estimated reclamation and

remediation obligation relating to areas of the joint venture no longer in production amounting to $10.9

million were expensed and have been included as part of accretion and reclamation expenses. Due to

lower than expected grades in the Pamour pit, production is expected to be lower in 2006 than 2005.

At the

La Coipa

operation in Chile, tonnes mined and milled, along with grade and recoveries were

lower than 2004 due to changes in the mine plan caused by pit slope failures during the year. As a

result, production was down 16%. Geotechnical studies are being conducted in order to assess the

current situation. While gold equivalent ounces sold were 13% lower in 2005, due to lower production, a

higher realized gold price resulted in a 2% increase in revenue. Operating costs were 14% higher year-

over-year as a result of increased stripping costs. The increase was also due to higher power and

other consumable costs, in addition to the strengthening of the Chilean peso, against the U.S. dollar, of

approximately 9% year-over-year. There was no significant change during the year to the average ratio

for conversion of silver into equivalent gold ounces. Production at La Coipa in 2006 is now expected to

be higher than 2005, with an increase in the tonnes of ore processed partially offset by lower grade and

recovery rates.

At the

Crixas

mine in Brazil, gold production was 3% higher in 2005, compared with 2004, due to

higher grade and increased mill throughput. Revenue increased by 9% as a result of a higher realized

gold price. Costs of sales increased year-over-year by 16% due to the appreciation of the Brazilian real

against the U.S. dollar, and higher energy, service and consumable costs. The average exchange rate

of the Brazilian real against the U.S. dollar increased, year-over-year, by approximately 20%.

Production for 2006 is expected to be similar to 2005, with lower grade being offset by an increased in

the number of tonnes processed.

Commissioning of the expanded facilities at the

Refugio

mine in Chile was completed in 2005. The

mine has achieved its continuous production rate of 40,000 tonnes per day by year end 2005. The

plant has processed in excess of 40,000 tonnes on a number of days during the quarter. Total capital

costs for the recommissioning was $100.0 million, plus $34.0 million for the lease of a new mining fleet

(these costs reflect 100% of the costs, and Kinross is responsible for 50%).

Gold equivalent production at the

Musselwhite

mine in Canada increased by 4% in 2005 due to a 3%

increase in grade year-over-year and an increase in tonnes processed. The increased grade was the

result of increased tonnage from underground sources which replaced low grade stockpile feed.

Revenue from metal sales increased by 9% due to a higher realized gold price and a 2% increase in

the number of ounces sold. Cost of sales increased 25% due to the increased tonnage from higher-cost

underground ore, increased underground development costs and higher energy and commodity costs.

Cost of sales was also negatively impacted by a 7% appreciation of the Canadian dollar against the

U.S. dollar year-over-year. Production in 2006 is expected to be approximately 4% lower due to lower

grade ore.

Kinross acquired

Kettle River,

located in the state of Washington, in the acquisition of Echo Bay on

January 31, 2003. At the time of acquisition the mine was shut down. The Company recommenced

operations in December 2003. During 2005, gold equivalent production was 68,146 ounces, which was

30% lower than the 96,789 ounces produced in 2004. The drop in production was expected in 2005

due to fewer tonnes being mined and milled, as mining at Emanuel Creek was completed in November

and the mill temporarily shutdown. Grade and recovery rates were also lower in 2005, compared with

2004. With the mine on care and maintenance beginning in November, the remaining staff focused on

the permitting and engineering of the Buckhorn mine. During 2005, accretion and reclamation expenses

of $6.1 million were recorded as a result of an increase to the estimated reclamation and remediation

liability relating to the operation.

Financial results for the quarter and year ended December 31, 2005

Page 6



All mining activity at the

Kubaka

underground mine and Birkachan open pit mine in Russia was

completed by June 2005, with only stockpiles processed in the second half of the year. Gold equivalent

production increased by 13% in 2005 to 140,195 ounces. The increase was due to a 10% increase in

mill throughput and 7% increase in grades. The change in mill throughput was largely the result of an 8-

week scheduled shutdown in 2004. Revenue from metal sales increased by 27% due to more ounces

being sold and a higher realized gold price. Costs of sales increased as a result of higher throughput

and an increase in the number of ounces sold.

While there is no specific development plans for the Kubaka mine, there are still areas of interest that

management will continue to evaluate. Closure of the mine is expected to take place largely during

2006.

Exploration and business development

Exploration expenditures in 2005 focused primarily on mine exploration. The two highest priorities were

the resource expansion project at Paracatu and the pit expansion at Round Mountain. During 2005, the

Company spent $5.2 million at Paracatu, while $2.4 million was spent at Round Mountain. In addition,

exploration expenditures at the other Company operated mines totaled $3.3 million. The Company’s

share of exploration expenditures at non-operated joint venture properties totaled $6.5 million.

Other expenses – net

in US$ millions

2005

Interest and other incom e

Non-hedge derivative gain (loss)

Interest expense on long-term liabilities

Foreign exchange loss

Other expense - net

$

7.0

$

(3.2)

(6.8)

(14.0)

(17.0)

$

2004

9.1

3.1

(5.1)

(13.3)

(6.2)

$

Other expense was $17.0 million in 2005 compared with $6.2 million in 2004. Interest income was

lower in 2005 due to lower average cash balances throughout the year. A foreign exchange loss of

$14.0 million was recorded in 2005 compared with a loss of $13.3 million in 2004. The loss on foreign

exchange was largely the result of the impact of strengthening foreign currencies on net monetary

liabilities in the Company’s non-U.S. operations. Interest expense increased in 2005, compared with the

prior year, as the Company’s debt has increased. During 2005, the Company capitalized interest

totaling $1.8 million relating to capital expenditures at Fort Knox, the Porcupine Joint Venture, Refugio

and Round Mountain. Interest and other income is expected to be lower in 2006 due to lower cash

balances, while interest expense is expected to increase as a result of higher debt levels and rising

interest rates.

Financial results for the quarter and year ended December 31, 2005

Page 7



Liquidity and capital resources

Cash flow provided from operating activities decreased to $133.7 million in 2005 from $161.2 million in

2004. The decrease was largely the result of fewer ounces sold combined with increased operating

costs, partially offset by higher realized gold prices.

Net cash used in investing activities was $121.1 million in 2005 compared with $442.3 million in 2004.

The decrease in 2005 was largely related to the $261.2 million used in the 2004 acquisition of the

remaining 51% of the Paracatu mine. In 2005, additions to property, plant and equipment were $142.4

million, compared with $169.5 million in 2004.

For the years ended