Kinross Gold Corporation

40 King Street West, 52

nd

Floor

Toronto, ON M5H 3Y2

T:416.365.5123 | F: 416.363.6622

Toll free: 1.866.561.3636

www.kinross.com

N

EWS

R

ELEASE

May 4, 2006

Kinross announces 2006 first quarter revenue growth

and earnings of $8.9 million

Paracatu project scope expanding

Toronto, Ontario

–

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

announced today its unaudited results for the first quarter ended March 31, 2006.

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

First Quarter Highlights

•

•

Kinross sold 371,818 gold equivalent ounces in the first quarter of 2006. The Company remains

on track to produce approximately 1.44 million gold equivalent ounces in 2006.

Revenue was $198.3 million in the first quarter, a 10% increase over the same period last year.

The increase was mainly due to the quarter-over-quarter increase in the average realized price of

gold, partially offset by fewer ounces sold.

The Company realized $532 per ounce of gold sold, an increase of 24% over the same period

last year, at a cost of sales

1

of $327 per ounce, an increase of 20% over the first quarter of 2005,

primarily as a result of higher costs at Porcupine and Musselwhite, the high cost of producing the

final low-grade stockpiles at Kubaka as well as industry-wide cost pressures and the

strengthening Canadian dollar and Brazilian real relative to the U.S. dollar. Kinross now expects

cost per ounce of gold equivalent sold to be in the range of $305 - $315 for 2006.

Net earnings of $8.9 million, or $0.03 per share, compared with a net loss of $0.9 million in the

same period last year. Earnings include an expense of $9.4 million relating primarily to non-cash

foreign currency translation losses on deferred tax liabilities.

Cash flow from operating activities was $20.1 million in the first quarter.

Capital expenditures were $34.7 million for the first quarter 2006 and the cash position was $84.1

million as at March 31, 2006 compared with $97.6 million at year end 2005.

The Paracatu engineering study is currently being optimized and the scope of the project is

increasing with higher production and lower operating costs than originally expected. Capital

costs are expected to be at the high end of the previously announced range of $400 - $500

million. Details are expected to be released in mid-June subsequent to a Board meeting to

review the project and optimization study.

The Company moved forward with the Crown Resources transaction by filing a registration

statement with the SEC.

Kinross added to its management team with Tim Baker joining as Executive Vice President and

Chief Operating Officer, Thomas Boehlert joining as Executive Vice President & Chief Financial

Officer and Geoffrey Gold joining as Senior Vice President & Chief Legal Officer.

•

•

•

•

•

•

•

1

Cost of sales per ounce is calculated by dividing cost of sales as per the financial statements by the number of gold

equivalent ounces sold.



“Kinross is making substantial progress toward realizing our potential,” said Tye Burt, President and

Chief Executive Officer of Kinross. “Our revenue has risen more than our costs this quarter, leading

to a higher cash margin. We have seen increased costs at two of our non-operated joint ventures, but

expect that these costs will improve through the end of the year. Costs are also higher at the Kubaka

mine as it is winding down operations. We have also experienced industry-wide cost pressures and

the strengthening of the Canadian and Brazilian currencies. We will continue to focus efforts on our

continuous improvement program in order to control costs. We are extremely pleased that the scope

of the Paracatu expansion is expanding beyond our original expectations.”

Summary of financial and operating results

First Quarter

(dollars in millions, except per share and per ounce amounts)

2006

362,395

371,818

$

198.3

$

$

$

$

$

$

$

$

$

121.5

3.0

29.2

22.4

8.9

0.03

20.1

532

327

2005

410,480

415,768

$ 179.8

$

$

$

$

$

$

$

$

$

113.1

3.3

44.3

-

(0.9)

-

26.8

429

272

Gold equivalent ounces - produced

(a)

Gold equivalent ounces - sold

Metal sales

Cost of sales (excludes accretion and reclamation

expense, depreciation depletion and amortization)

Accretion and reclamation expense

Depreciation, depletion and amortization

Operating earnings

Net earnings (loss)

Basic and diluted earnings (loss) per common share

Cash flow from operating activities

Realized gold price

(b)

Cost of sales per equivalent ounce sold

(a)

(b)

(a)

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

commodities for each year. This ratio for the first quarter of 2006 was 57.03:1, compared with 61.31:1 for the first quarter of 2005.

Cost of sales per ounce is calculated by dividing cost of sales as per the financial statements with gold equivalent ounces sold.

Revenue from metal sales in the first quarter increased 10% quarter-over-quarter to $198.3 million in

2006 from $179.8 million in 2005, primarily as a result of higher realized gold prices, partially offset by

fewer ounces sold. The realized gold price in the first quarter of 2006 was $532, compared with $429

per ounce in 2005. The average spot price for the first quarter was $554 per ounce, compared with

$427 per ounce in the same period of 2005. The difference between realized gold price and the

average spot gold price is primarily due to a reduction in metal sales of $6.9 million resulting from the

net settlement of 155,000 gold call options during the quarter. The Company maintains its no-gold

hedging policy.

Gold equivalent ounces sold and produced were consistent with budgeted amounts for the quarter. In

the first quarter 2006, the Company sold 371,818 gold equivalent ounces, down from the 415,768

ounces sold in 2005, primarily as a result of fewer ounces sold at Porcupine, Musselwhite and Fort

Knox as well as planned shutdowns at Kettle River and Lupin and reduced production from Kubaka as

it winds down operations. Gold equivalent production was also lower in the quarter, but consistent

with our annual production target of 1.44 million ounces.

Between the first quarter of 2005 and 2006, cost of sales increased largely due to industry-wide

factors such as increased costs of fuel, power, labor and other production costs. Higher costs were

also a result of lower than expected grades at Porcupine and Musselwhite and the high cost of

producing the final low-grade stockpiles at Kubaka. In addition, the strengthening of the Canadian

dollar and Brazilian real against the weakening U.S. dollar has increased costs at the Company’s

mines not located in the United States. Kinross is committed to its continuous improvement program,

which looks to new systems, methods and technologies to improve costs and efficiencies.

2006 First Quarter Results

Page 2



General and administrative expense in the first quarter of 2006 of $10.1 million was essentially the

same as the first quarter of 2005. General and administrative expense was adversely affected by

personnel costs, increased costs in South America to prepare for the Paracatu expansion and the

strengthening Canadian dollar in 2006. General and administrative expense in 2005 was adversely

affected by costs incurred for the financial statement review.

Cash flow from operating activities during the first quarter of 2006 decreased by $6.7 million to $20.1

million, compared with the first quarter of 2005. The decrease in operating cash flow in 2006 was the

result of higher operating costs, other expenses and larger working capital requirements, partially

offset by higher gold prices.

Operations review and update

Quarter ended March 31, 2006:

Gold equivalent ounces

Produced

(in

US$ millions

)

Sold

Cost of sales

Cost/oz

2006

2005

2006

2005

2006

2005

2006

2005

Fort Knox

79,677

73,953

67,608

70,998

$ 21.5

$ 17.5

$

318 $

246

85,091

94,067

27.6

293 $

260

Round Mountain

95,393

92,820

24.1

$

La Coipa

38,627

34,024

40,066

37,988

11.3

12.5

$

282 $

329

Crixas

24,121

24,192

23,938

24,156

4.5

3.5

$

188 $

145

Paracatu

42,900

40,609

46,127

43,482

15.1

12.3

$

327 $

283

Musselwhite

16,168

21,544

16,860

20,340

7.2

6.4

$

427 $

315

Porcupine Joint Venture

30,132

52,891

32,153

50,060

14.1

13.3

$

439 $

266

Refugio

(a)

32,214

2,947

31,948

3,116

10.7

0.6

$

335 $

193

Other operations

(b)

13,465

64,927

15,599

58,835

8.6

18.4

$

551 $

313

Corporate and other

(c)

-

-

3,452

13,973

0.9

4.5

$

261 $

322

Total

362,395

410,480

371,818

415,768

$ 121.5

$ 113.1

$

327

$

272

(a) Refugio was included in other operations during 2005 as the mine was recommissioned in the second half of 2005.

(b) Other operations include ounces produced and sold from Kubaka and Kettle River.

(c) Corporate and other includes ounces sold from Lupin and New Britannia, although production is not included since the properties are in

closure.

At the

Paracatu

mine in Brazil, gold equivalent production increased by 6% between 2005 and 2006

resulting from higher throughput and improved recoveries as the mine processed softer ore which was

partially offset by lower grades. Cost of sales in 2006 increased 23% over the same quarter of 2005

primarily due to increased energy and consumable costs, and appreciation of the Brazilian real

against the U.S. dollar.

The Paracatu engineering study and investment capital plan is currently being finalized. The project

team is analyzing the project configuration and mine plan to optimize capital spending, operating

costs, production and mine sequencing. It is expected that Board approval will be sought for the

project at a Board meeting in June. Scope of the expansion has increased including a higher

throughput rate and production profile with lower operating costs in the first ten years of operations.

The capital required to implement this two-phased expansion is expected to be at the high end of the

previously announced capital cost guidance of $400 - $500 million. Phase one will include the

installation of a 38 foot semi-autogenous grinding mill, a ball mill and flotation circuit. The second

phase will involve reconditioning the existing plant and expanding refining capacity.

“We are very pleased with the expansion opportunity at Paracatu as this project will be amongst

largest gold mines in the western hemisphere,” said Burt.

2006 First Quarter Results

Page 3



At

Round Mountain

in the United States, production declined 11% in the first quarter of 2006 relative

to the prior year due to lower throughput and grades. Tonnes processed decreased during the quarter

due to reduced loader availability, crusher downtime and weather related delays. Cost of sales

increased by 15% due to increased commodity related costs, higher costs on replacement parts,

increased contractor costs on equipment maintenance as well as higher royalties and taxes due to a

stronger gold price.

Production at the

Fort Knox

mine in the United States increased 8% reflecting an increase in tonnes

processed and higher grades, partially offset by lower recoveries. Production in the first quarter of

2005 was impacted by slope stability issues. Cost of sales, on a per ounce basis, increased 23% due

to increases in fuel, power and other operating costs.

At the non-operated

Porcupine Joint Venture

in Canada, gold production in the first quarter of 2006

was 43% lower than 2005. This decrease in production was largely due to lower grades as mining in

the higher grade Dome pit was completed in the fourth quarter of 2005. While a decrease in average

grade was budgeted, the actual mined grade at Pamour was lower than anticipated as a result of

geological and mining factors that increased dilution. Review of the geological model and improved

mining practice will reduce dilution at Pamour. Gold production was further impacted by an unplanned

mill shutdown which reduced mill throughput. Cost of sales increased 6% as the operation processed

a similar number of tonnes compared to the first quarter of 2005, though at lower grades. The

increase was also impacted by higher energy and commodity costs, and a 6% increase in value of the

Canadian dollar against the U.S. dollar quarter-over-quarter.

At the non-operated

La Coipa

operation in Chile, gold equivalent production increased 14% during

the first quarter of 2006 mainly due to higher gold and silver grades. The lower grades in 2005 were

the result of changes to the mine plan due to pit slope failures. Cost of sales decreased by 10%

between the first quarter of 2005 and the first quarter of 2006 due to increased costs in the first

quarter of 2005 resulting from the pit slope failures. This was partially offset by higher power costs

and a 9% appreciation of the Chilean peso against the U.S. dollar between the first quarter of 2005

and the first quarter of 2006.

At the non-operated

Crixas

mine in Brazil, gold production was comparable during the first quarters of

2006 and 2005. Costs of sales increased quarter-over-quarter by 29% due to the mining of additional

tonnes of ore at lower grades along with the 18% appreciation of the Brazilian real against the U.S.

dollar.

Recommissioning of the expanded facilities at the

Refugio

mine in Chile was completed and the mine

went into commercial production in the fourth quarter of 2005. During the first quarter of 2006, gold

equivalent production of 32,214 ounces was as expected with a cost of sales of $10.7 million.

Gold equivalent production at the non-operated

Musselwhite

mine in Canada was 25% lower due to

localized ground conditions that delayed access to higher-grade ore blocks. As a result, mill feed for

the quarter was limited to lower-grade ore from underground and stockpiles. Average grade for the

quarter was 22% lower than the first quarter of 2005. A re-engineered mining sequence to access and

mine the high-grade blocks has been completed and is currently being reviewed. Cost of sales

increased by 13% due to increased energy and commodity costs and a 6% appreciation in the

Canadian dollar against the U.S. dollar in the first quarter of 2006, compared with the first quarter of

2005.

At Kinross’ other operations production of 13,465 gold equivalent ounces relates primarily to residual

production from stockpiles at

Kubaka

as the mine is winding down. Cost of sales includes the costs

for processing those residual ounces as well as other fixed costs associated with the Kubaka

operation.

2006 First Quarter Results

Page 4



2006 Outlook

Kinross expects to meet the previously forecasted annual gold equivalent production of 1.44 million

ounces. It is expected that higher commodity and energy costs, along with a weakened U.S. dollar will

continue to negatively impact cost of sales, now expected to be in the range of $305 - $315 per ounce

for 2006, 7% higher than previous guidance.

Exploration and business development

Exploration and business development expense for the first quarter of 2006 was $7.5 million,

compared with $4.9 million for the corresponding period in 2005, an increase of 53%. Aggregate

exploration and business development is expected to be approximately $30 million for the year. The

focus of the Company’s exploration program is to replace and increase mineral reserves at existing

mines and increase mineral reserves at its development projects.

Other income (expense) – net

in US$ millions

Three months ended

March 31,

2006

2005

$

1.7 $

(2.5)

(9.4)

(2.5)

(12.7) $

1.9

(1.9)

1.7

-

1.7

Interest and other income

Interest expense

Foreign exchange gains (losses)

Non-hedge derivative losses

Other income (expense) - net

$

Non-hedge derivative losses

At December 31, 2005, the Company had 255,000 written gold call options outstanding that had a

mark-to-market liability of $6.2 million, based on the year end gold price of $513 per ounce. The

written call options had an average strike price of $522 per ounce. During the first quarter of 2006, net

positions on 155,000 call options were closed out with total cash payments of $9.7 million, resulting in

a realized loss of $6.9 million. The realized loss was recorded as a reduction to metal sales. At March

31, 2006, the remaining 100,000 written call options outstanding had a strike price of $530 per ounce

with expiry dates in the second quarter of 2006 and had a mark-to-market liability of $6.2 million. This

liability will be credited to income when the options are settled.

Foreign exchange gains (losses)

A net foreign exchange loss of $9.4 million was recorded during the first quarter of 2006, compared

with a net gain of $1.7 million for the comparative period in 2005. The loss on foreign exchange in the

first quarter of 2006 was largely the result of the impact of strengthening Brazilian real on Brazilian

deferred tax liabilities.

Income and mining taxes

During the first quarter of 2006, the Company recorded a provision for income and mining taxes of

$0.6 million on earnings before tax of $9.7 million. During the corresponding period in 2005, the

Company recorded a provision for income and mining taxes of $2.6 million on earnings before tax of

$1.7 million.

2006 First Quarter Results

Page 5



Liquidity and Capital Resources

The following table summarizes Kinross’ cash flow activity for the three months ended March 31, 2006

and 2005:

in US$ millions

Three months ended

March 31,

2006

2005

$

20.1 $

(35.1)

0.2

1.3

(13.5)

97.6

84.1

26.8

(38.8)

16.6

-

4.6

47.9

52.5

Cash flow:

Provided from operating activities

Used in investing activities

Provided from financing acitvities

Effect of exchange rate changes on cash

Increase (decrease) in cash and

cash equivalents

Cash and cash equivalents:

Beginning of period

End of period

$

$

Operating Activities

Cash flow provided by operating activities was $20.1 million in the first quarter of 2006, compared with

$26.8 million in the corresponding period in 2005. The increase in cash provided by higher revenue

was offset by higher operating costs, other expenses and larger working capital requirements during

the quarter.

Investing Activities

Net cash used in investing activities was $35.1 million in the first quarter of 2006, versus $38.8 million

during the same period in 2005. Cash used included additions to property, plant and equipment of

$34.7 million and $38.1 million in the first quarters of 2006 and 2005, respectively. The following table

provides a breakdown of capital expenditures:

in US$ millions

T hree m onths ended

M arch 31,

2006

2005

$

8.9

2.9

3.0

1.7

8.4

1.1

4.7

2.3

0.6

1.1

34.7

$

10.5

1.0

1.0

1.4

3.9

1.2

6.1

12.6

0.1

0.3

38.1

O perating Segm ents

Fort Knox

R ound M ountain

La Coipa

C rixas

Paracatu

M usselwhite

Porcupine Joint Venture

R efugio

O ther operations

Corporate & other

$

$

Capital expenditures in the first quarter of 2006 included costs related to accessing the phase six ore

zone at Fort Knox, development of the Pamour pit at the Porcupine Joint Venture and costs at

Paracatu related to the mine and mill expansion.

2006 First Quarter Results

Page 6



Financing Activities

Net cash of $0.2 million was provided by financing activities in the first quarter of 2006, versus $16.6

million in the first quarter of 2005. Proceeds from the issue of common shares of $0.7 million were

partially offset by a $0.5 million net repayment of debt. Cash provided in the first quarter of 2005 was

primarily from the net issuance of debt of $16.1 million, which related largely to a $15.0 million

increase to the LIBOR loan drawn on the Company’s revolving credit facility.

Balance Sheet

in US$ millions

As at: