N

EWS

R

ELEASE

Kupol begins processing ore

Margins increase despite cost pressures

Projects on schedule; Buckhorn appeals dismissed

Toronto, Ontario, May 6, 2008

– Kinross Gold Corporation (TSX-K; NYSE-KGC) today announced its

unaudited results for the three months ended March 31, 2008.

(This news release contains forward-looking information that is subject to the risk factors and assumptions set out in our Cautionary Statement on Forward-Looking

Information located on page 15 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

2008 First Quarter Highlights

•

Gold equivalent production was 331,784 gold equivalent ounces in the first quarter of 2008, compared with

389,394 ounces for the same period last year. Consistent with previously disclosed quidance, the Company

remains on track to produce approximately 1.9 – 2.0 million gold equivalent ounces in 2008.

Revenue was $330.2 million in the first quarter, a 34% increase over the same period last year, and the

average realized gold price was $929 per ounce sold, compared with an average realized gold price of

$650 per ounce in the first quarter of 2007.

Cost of sales per gold equivalent ounce

1

was $455 in the first quarter, before an incremental fair value

inventory charge of $6.1 million relating to the La Coipa acquisition, on sales of 356,864 gold equivalent

ounces. Reported cost of sales per ounce including the inventory charge ($17 per ounce) totaled $472.

This compares with a cost of sales of $328 per ounce on sales of 378,167 gold equivalent ounces in the

first quarter of 2007. A further $20 of the increase over previously disclosed cost of sales per ounce

guidance relates to changes in currency exchange rates, oil prices, and higher royalty payments resulting

from higher gold prices. This variance is consistent with sensitivity information previously disclosed. The

remaining variance relates primarily to mine operating factors and higher consumable costs.

Based on reported cost of sales per gold equivalent ounce of $472, Kinross’ margin per ounce sold was

$457 in the first quarter, compared with $322 for the first quarter 2007, an increase of 42%.

Incorporating first quarter actual results and based on the price assumptions outlined in our previous

guidance for the remainder of the year, the Company expects its average 2008 cost of sales will be $385-

395 per gold equivalent ounce versus the previously announced forecast of $365-375. Approximately 65%

of this increase relates to first quarter actual results and the remainder to an expected increase in

maintenance and repair costs at Maricunga, and pit wall repair costs at La Coipa. The Company expects

that the cost of sales per ounce will be impacted positively over the course of the year as the Paracatu,

Kupol and Buckhorn projects are commissioned and total production increases.

Net earnings for the first quarter were $70.9 million, or $0.12 per share, compared with net earnings of

$68.5 million, or $0.16 per share, for the same period last year. Earnings for the first quarter included a

gain of $11.5 million, or $0.02 per share, related to the sale of Kubaka. The year-over-year decrease in

earnings per share is largely due to a 39% increase in the average number of shares outstanding.

Cash flow from operating activities was $76.3 million in the first quarter of 2008, compared with $90.2

million for the corresponding period in 2007. Cash and short-term investment balances were $889.5 million

at March 31, 2008 compared with $561.2 million at December 31, 2007.

Capital expenditures totaled $190.5 million in the first quarter. The Company expects 2008 capital

expenditures to increase to approximately $752 million versus the previous forecast of $685 million.

This increase relates to several investment initiatives including moving $35 million in capital forward

from 2009 to accelerate the Fort Knox project, $12 million for Cerro Casale feasibility work, and $20

million to advance the purchase of mobile equipment at Paracatu and to purchase a fuel transport

fleet at Kupol.

The Kupol mill is now processing ore and first gold and silver production is expected during May. Paracatu

is on schedule to begin commissioning in July. Buckhorn is on schedule to begin commissioning in

October. All permit appeals at Buckhorn have been settled and dismissed.

•

•

•

•

•

•

•

•

1. Cost of sales per ounce is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold.

KINROSS GOLD CORPORATION

www.kinross.com

40 King Street West, 52nd Floor

Toronto, Ontario, Canada

M5H 3Y2

TEL: 416-365-5123

FAX: 416-363-6622

TOLL FREE: 866-561-3636



CEO commentary

Tye Burt, Kinross President and CEO, made the following comments in relation to the first quarter

2008 results:

“The significant growth we expect in 2008 is becoming a reality at our three projects. We have

reached a major milestone at Kupol, as mining continues and milling is now underway. Initial

production is expected on schedule during May. Paracatu and Buckhorn remain on schedule to

begin commissioning in July and October, respectively. We recently settled Buckhorn’s

outstanding permit and authorization appeals, reaching an agreement with a group which

opposed development of the mine for many years.

“At current operations, production was slightly below our plan in the first quarter due to

operational issues at Fort Knox, Round Mountain and La Coipa, which deferred some production

and negatively impacted costs. These issues were short-term and were somewhat offset by solid

production from Paracatu and Maricunga. We remain on track to produce 1.9 – 2.0 million gold

equivalent ounces in 2008.

“We are subject to the same cost pressures as other producers, including rising costs of

consumables, unfavourable currency exchange rates, and higher royalties resulting from a higher

gold price. We also experienced higher than expected costs at certain key mines, but we have

taken steps to manage and mitigate these costs through the remainder of the year.

“Due to a higher gold price, our margins increased in the quarter. Through the course of 2008, we

expect our cost of sales per ounce to be impacted positively in each subsequent quarter as the

new projects proceed through commissioning and reach full production.”

Summary of financial and operating results

Three months ended

March 31

(dollars in millions, except per share and per ounce

amounts)

2008

331,784

356,864

$

330.2

$

2007

389,394

378,167

245.7

Gold equivalent ounces - produced

(a)

Gold equivalent ounces - sold

Metal sales

(a)

Cost of sales (excludes accretion and reclamation

expense, depreciation, depletion and

amortization)

$

Accretion and reclamation expense

Depreciation, depletion and amortization

Operating earnings

Net earnings

Basic earnings per share

Diluted earnings per share

Cash flow from operating activities

Average realized gold price per ounce

Cost of sales per equivalent ounce sold

(a)

168.3

4.2

37.8

81.8

70.9

0.12

0.11

76.3

929

472

$

$

$

$

$

$

$

$

$

$

124.1

3.0

30.3

59.0

68.5

0.16

0.15

90.2

650

328

$

$

$

$

$

$

$

$

(b)

$

Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based

on the ratio of the average spot market prices for the commodities for each year. This ratio for the first

quarter of 2008 was 52.57:1 compared with 48.89:1 for the first quarter of 2007.

Cost of sales per ounce is defined as cost of sales as per the financial statements divided by the

number of gold equivalent ounces sold.

(b)

KINROSS GOLD CORPORATION

2008 First Quarter Results

Page 2



Kinross produced 331,784 gold equivalent ounces in the first quarter of 2008, compared

with 389,394 gold equivalent ounces in the first quarter of 2007. The year-over-year

expected decrease in production was due to a net reduction in ounces produced as a result of the

asset swap transaction with Goldcorp, and also to short-term operational issues at Fort Knox,

Round Mountain, and La Coipa, described in “Operations review and update” below. The Company

remains on track to produce 1.9 – 2.0 million gold equivalent ounces in 2008, in accordance with

previously stated guidance.

Revenue from metal sales increased 34% in the first quarter of 2008 over the first quarter of

2007, from $245.7 million to $330.2 million, as a result of a higher realized gold price, partially

offset by a decrease in ounces sold. The average realized gold price for the first quarter of 2008

was $929 per ounce, compared with $650 per ounce in the first quarter of 2007. The average

spot price of gold in the first quarter of 2008 was $925 per ounce, compared with $650 per

ounce in the first quarter of 2007.

Cost of sales per gold equivalent ounce was $455 in the first quarter on sales of 356,864 gold

equivalent ounces, before a $6.1 million incremental charge resulting from a purchase accounting

adjustment related to the asset swap with Goldcorp, whereby the value of the bullion inventory of

La Coipa was increased to reflect fair value as of the acquisition date. This charge increased first

quarter cost of sales per gold equivalent ounce by $17 to $472. By comparison, the cost of sales

per gold equivalent ounce for the first quarter of 2007 was $328. The year-over-year increase can

be attributed primarily to: higher consumable costs at most operations; the impact of

strengthening currencies, most significantly the appreciation of the Chilean peso and the Brazilian

real against the U.S. dollar; increased maintenance-related costs at Maricunga; reduced

production at Fort Knox, Round Mountain, and La Coipa; and increased price-based royalties at

Round Mountain and Fort Knox.

Approximately 55% to 60% of the Company’s costs are denominated in U.S. dollars. Cost of sales

per gold equivalent ounce is subject to the following key sensitivities, as previously disclosed:

Sensitivity

10% change in foreign exchange

$10 change in price per barrel of oil

$100 change in gold price (royalty impact)

Approximate impact on cost of sales

$13 per gold equivalent ounce

$4 per gold equivalent ounce

$6 per gold equivalent ounce

Based on reported cost of sales per ounce of $472, Kinross’ margin per gold equivalent ounce sold

was $457 in the first quarter of 2008 compared with $322 for the first quarter of 2007, an

increase of 42% year–over-year, due to a higher realized gold price.

Net earnings for the first quarter of 2008 were $70.9 million or $0.12 per share, compared with

earnings of $68.5 million or $0.16 per share for the same period last year. First quarter 2008

earnings included the sale of the Kubaka mine, which had a net benefit of $11.5 million or $0.02

per share. Earnings also included net non-hedge derivative gains of $22.4 million, $17.4 million of

foreign exchange losses, and the $4.4 million (after tax effect) incremental fair value charge

relating to La Coipa inventory sold in the first quarter. Year-over-year earnings per share were

impacted by a 39% increase in the number of shares outstanding, primarily as a result of the

Bema acquisition.

General and administrative expenses were $23.2 million in the first quarter of 2008,

compared with $14.7 million in the first quarter of 2007. The increase is primarily related to

higher personnel costs.

KINROSS GOLD CORPORATION

2008 First Quarter Results

Page 3



Cash flow from operating activities for the first quarter of 2008 was $76.3 million, compared

with $90.2 million for the first quarter of 2007. The cash and short-term investment position

was $889.5 million at March 31, 2007 compared with $561.2 million at December 31, 2007

and total long-term debt was $947.1 million at March 31, 2008 compared with $564.1

million at December 31, 2007.

Operations review and update

Three months ended March 31,

Gold equivalent ounces

Produced

(in

US$ millions

)

Fort Knox

Round Mountain

Paracatu

La Coipa

Crixas

Julietta

(c)

(a)

(b)

Sold

2007

82,714

84,280

40,732

56,295

41,040

23,740

7,763

35,800

17,030

-

-

389,394

2008

76,954

59,191

42,465

80,654

61,800

19,974

15,826

-

-

-

-

356,864

2007

72,765

83,720

43,984

48,026

37,995

27,503

14,086

33,528

16,560

-

-

378,167

$

Cost of sales

2008

35.3

26.0

19.2

36.1

34.1

5.9

11.7

-

-

-

-

$ 168.3

$

2007

23.8

24.2

16.0

9.7

15.4

6.2

6.9

14.1

7.8

-

-

$ 124.1

$

$

Cost of sales/oz

2008

459

439

452

448

552

295

739

-

-

-

-

472

$

$

2007

327

289

364

202

405

225

490

421

471

-

-

328

2008

65,394

63,604

43,236

60,893

61,379

20,630

16,648

-

-

-

-

331,784

Maricunga

Porcupine JV

Musselwhite

Other operations

Corporate and other

Total

(a) Production and sales for La Coipa reflect Kinross' 50% share for 2006 and from January 1, 2007 through December 21, 2007, and 100% from December 22,

2007 through December 31, 2007. Cost of sales per ounce in 2008 includes $76 related to the increase in inventory volume due to the asset swap transaction.

(b) Production from the Maricunga mine is 100% for March 2007 and beyond. Prior to that Kinross owned 50% of the operation.

(c) Production from the Julietta mine is for March 2007 and beyond.

At the

Fort Knox

mine in Alaska, U.S.A., gold equivalent production for the first quarter of

2008 was 65,394 ounces, a decrease of 21% compared with the first quarter of 2007. The

decrease year-over-year is due primarily to mining lower grades and harder ore as a result

of mine sequencing. Total sales for the quarter were 76,954 ounces, which included a late

shipment of approximately 12,000 ounces at year-end that was recognized in first quarter

2008 sales rather than fourth quarter 2007 sales. Revenue for the quarter was $71.2

million, an increase of 50% over the first quarter of 2007, due to a higher gold price and an

increase in ounces sold. Cost of sales per ounce was $459 for the first quarter of 2008

compared with $327 for the first quarter of 2007, primarily as a result of higher consumable

costs, particularly energy costs, and an increase in revenue-based royalties due to a higher

gold price.

Gold equivalent production at

Round Mountain

in Nevada, U.S.A. was 63,604 ounces in

the first quarter of 2008, a decrease of 25% compared with the first quarter of 2007. The

year-over-year decline was mostly anticipated in the mine plan, but was compounded by a

26-day shutdown of the primary crusher due to electrical issues in the first quarter. Low-

grade stockpile material was substituted for regular ore production, resulting in reduced

gold production. Revenue was largely unchanged year-over-year, as the reduction in ounces

sold was largely offset by a higher gold price. Cost of sales per ounce was $439 for the first

quarter of 2008, compared with $289 for the first quarter of 2007, primarily as a result of

the reduction in ounces sold due to lower grade and mill recovery, an increase in revenue-

based royalties due to a higher gold price, and higher consumable costs.

KINROSS GOLD CORPORATION

2008 First Quarter Results

Page 4



At the

Paracatu

mine in Brazil, gold equivalent production was 43,236 ounces in the first

quarter of 2008, an increase of 6% compared with the first quarter of 2007. The increase

year-over-year is primarily due to higher grade ore, a higher recovery rate, and an increase

in tonnes processed. Revenue for the quarter was $39.5 million, an increase of 38% over

the first quarter of 2007, due to a higher average gold price, which was offset slightly by a

reduction in ounces sold. Cost of sales per ounce was $452 for the first quarter of 2008,

compared with $364 for the first quarter of 2007, primarily due to higher consumable costs

and the appreciation of the Brazilian real against the U.S. dollar.

Gold equivalent production at

La Coipa

on a 100% basis was 60,893 ounces for the first

quarter of 2008, a decrease of 46% compared with first quarter 2007 production of 112,590

ounces on a 100% basis (of which Kinross had a 50% share). Gold equivalent production for

the first quarter of 2008 included 1,862,223 ounces of silver. First quarter production was

negatively affected by a pit wall failure in the Coipa Norte pit in January, as a result of which

Coipa Norte ore was replaced by lower grade stockpiled material. This accounted for a

production loss of approximately 10,000 ounces, which the operation expects substantially

to recover in subsequent quarters now that mining at Coipa Norte has been re-established.

Sales for the quarter of 80,654 gold equivalent ounces included a draw-down of year-end

inventories of approximately 19,000 ounces. Revenue for the quarter was $73.3 million.

Cost of sales per gold equivalent ounce was $448 in the first quarter of 2008, compared

with $202 in the first quarter of 2007. This includes a $6.1 million incremental fair value

inventory charge related to the Goldcorp swap. Without this charge, cost of sales per gold

equivalent ounce would have been $372, compared with $202 in the first quarter of 2007.

The year-over-year increase is due primarily to the fair value inventory charge, and

increases in fuel and grinding materials and other consumables.

Gold equivalent production at

Maricunga

was 61,379 ounces for the first quarter of 2008,

compared with 41,040 ounces in the first quarter of 2007. The year-over-year increase in

production reflects the increase in Kinross’ ownership from 50% per cent to 100% upon the

acquisition of Bema in February 2007. On a 100% basis, production was relatively constant

with an increase of 2% over the same period. Sales for the first quarter 2008 were 61,800

gold equivalent ounces, resulting in revenue of $57.6 million. Cost of sales per ounce was

$552 in the first quarter of 2008, compared with $405 in the first quarter of 2007. The

increase was primarily due to the impact of the appreciation of the Chilean peso against the

U.S. dollar, an increase in the price of consumables, and costs associated with unplanned

maintenance and repairs to the crusher motors and conveyor belt. A large portion of these

maintenance costs were related to outside contractors’ fees, and the operation is planning

to reduce these costs in the future by hiring additional crew members to perform

maintenance and repairs currently handled by external contractors.

At the

Crixás

joint venture mine in Brazil, gold equivalent production was 20,630 ounces in

the first quarter of 2008, a decrease of 13% compared to the first quarter of 2007, as a

result of a lower grade. Revenue for the quarter was $18.4 million, an increase of 4% over

the first quarter of 2007, due to a higher average gold price, which was largely offset by a

reduction in ounces sold. Cost of sales per ounce was $295 for the first quarter of 2008,

compared with $225 for the first quarter of 2007, due primarily to higher consumable costs

and the appreciation of the Brazilian real against the U.S. dollar.

The

Julietta

mine, in the Magadan region of Russia, was acquired as part of the Bema

acquisition, and only contributed production from February 27, 2007 to March 31, 2007 in

the first quarter of 2007; therefore, year-over-year results are not comparable. Gold

equivalent production at Julietta was 16,648 ounces for the first quarter of 2008. Revenue

during the quarter was $15.1 million and cost of sales was $739 per gold equivalent ounce.

KINROSS GOLD CORPORATION

2008 First Quarter Results

Page 5



Project updates

The forward-looking information contained in this section is subject to the risks and assumptions contained in the

Cautionary Statement on Forward-Looking Information located on page 15 of this release.

Kupol project

Mining continues at Kupol and the mill is now processing ore. The first gold and silver

production is expected this month.

Some 430,000 tonnes of ore were stockpiled as of March 31, which was well ahead of plan.

Based on the current ramp-up schedule, the milling rate is expected to reach 1,500 tonnes

per day in May, and to attain full production capacity of 3,000 tonnes per day by October.

The Kinross share of Kupol production for 2008 is expected to be approximately 365,000-

390,000 gold equivalent ounces, at an expected average cost of sales per gold equivalent

ounce of $235-245

1

for the year. The Kupol cost of sales per gold equivalent ounce is

expected to decrease to an average of approximately $210-220

1

in the fourth quarter of

2008. Capital expenditures for 2008 are expected to increase by approximately $10 million

as a result of the decision to buy the Kupol fuel transport fleet, as opposed to

subcontracting for these services as previously planned. We intend to provide a final capital

amount for the project once commissioning is complete.

Paracatu expansion

Construction on the Paracatu expansion project was 89% complete as of March 31, 2008,

with $476 million of capital spent or committed. The project remains on schedule to begin

commissioning in July 2008. The crushing, conveying, and stockpiling facilities are near

completion, and testing of these facilities is expected to begin in May. All mining equipment

is now on site, the electric shovel is being erected, and training for mobile equipment

operators is in progress.

The project is expected to increase gold production at Paracatu from approximately 175,000

ounces in 2007 to approximately 305,000-335,000 ounces in 2008 at an expected average

cost of sales per ounce of $390-400

1

for 2008. The Paracatu cost of sales per ounce is

expected to decrease to an average of approximately $345-355

1

in the fourth quarter of

2008. Capital expenditures at Paracatu are expected to increase by approximately $10

million as a result of accelerating the purchase of mobile equipment from 2009 to 2008. We

intend to provide a total capital amount for the project once commissioning is complete,

which we expect may be in the range of 5% to 8% in excess of the project budget,

depending on final costs and foreign exchange rates.

Kettle River – Buckhorn project

Construction on the Buckhorn mine project is proceeding on schedule and on budget and

was approximately 90% complete as of March 31, 2008, with $68 million of capital

committed or spent. The mine is expected to commence gold production in October 2008.

The water treatment plant is operating and mine development from the upper and main

portals is progressing.

Crown Resources Corporation, a subsidiary of Kinross, recently completed a settlement with

the project opponents who were appealing certain State and Federal permits and

authorizations required to operate the mine, pursuant to which all appeals were dismissed.

1.

Based on price assumptions outlined in “2008 Outlook” below.

KINROSS GOLD CORPORATION

2008 First Quarter Results

Page 6



The settlement terms primarily focus on environmental monitoring and mitigation measures,

and on the funding of additional wetland, habitat and fisheries restoration and improvement

projects in the Okanogan Highlands.

Expected production for 2008 is approximately 25,000-30,000 ounces, at an expected

average cost of sales per ounce of $290-300

1

. The cost of sales per ounce is expected to be

impac