N

EWS

R

ELEASE

Kinross Gold records strong first quarter results; earnings

per share of $0.16

CLOSED ACQUISITION OF BEMA

Toronto, Ontario, May 7, 2007

– Kinross Gold Corporation (TSX-K; NYSE-KGC) (“Kinross”,

“Kinross Gold” or the “Company”), today announced its unaudited results for the first quarter

ended March 31, 2007. Kinross completed the acquisition of Bema Gold Corporation (“Bema”) on

February 27, 2007. Results for Bema assets are consolidated into Kinross for the month of March

only.

(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 12 of this news release. All dollar amounts in this news release are

expressed in U.S. dollars, unless otherwise noted.)

Highlights

•

Production was 389,394 gold equivalent ounces in the first quarter of 2007, 7% above Q1 2006

and in line with our full year guidance for 2007 of 1.65 million gold equivalent ounces.

•

Revenue was $245.7 million in the first quarter, a 24% increase over the same period last year,

and the average realized gold price was $650 per ounce of gold sold.

•

Cost of sales per ounce

1

was $328 in the first quarter on sales of 378,167 gold equivalent

ounces compared with cost of sales per ounce of $327 on sales of 371,818 gold equivalent

ounces in the first quarter of 2006, in line with our full year guidance of $330 - $340 per ounce.

Cost of sales per ounce would have been $319 before factoring in the impact of fair value

accounting on the acquired bullion inventory of the Bema properties.

•

Net earnings for the first quarter were $68.5 million, or $0.16 per share, compared to net

earnings of $8.9 million, or $0.03 per share, in same period last year. Earnings include net

income of approximately $23.2 million, or $0.05 per share, relating to non-cash foreign

currency translation losses, gains on non-hedge derivatives, the sale of the Lupin mine and the

impact of fair value accounting on the inventory of the Bema properties.

•

Cash flow from operating activities was $90.2 million in the first quarter compared to $20.1

million for the corresponding period in 2006. The cash position was $221.6 million at March 31,

2007 compared to $154.1 million at December 31, 2006 and total debt was $397.2 million at

March 31, 2007 compared to $89.9 million at December 31, 2006.

•

Capital expenditures totaled $69.7 million in the first quarter, primarily at the Paracatu

expansion and Kettle River – Buckhorn projects which is in-line with our full-year guidance of

$450 million (excluding Kupol).

•

The acquisition of Bema closed on February 27, 2007.

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



“Our last four quarters at Kinross have been the best in the Company’s history,” said Tye Burt,

President and CEO of Kinross. “Kinross generated excellent revenues, cash flow and earnings in

the first quarter of 2007. I am especially proud of the efforts of our team in controlling costs.”

Summary of financial and operating results

Three months ended

March 31,

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

2007

389,394

378,167

$

$

$

$

$

$

$

$

$

$

$

245.7

124.1

3.0

30.3

65.6

68.5

0.16

0.15

90.2

650

328

$

$

$

$

$

$

$

$

$

$

$

2006

362,395

371,818

198.3

121.5

3.0

29.2

22.4

8.9

0.03

0.03

20.1

532

327

Gold equivalent ounces - produced (a)

Gold equivalent ounces - sold (a)

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

Basic earnings per common share

Diluted earnings per common share

Cash flow from operating activities

Average realized gold price

Cost of sales per equivalent ounce sold (b)

(a)

(b)

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 2007 was 48.89:1, compared with 57.03:1 for the first quarter of 2006.

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.

Revenue from metal sales increased 24% in Q1 2007 over Q1 2006 from $198.3 million to

$245.7 million, primarily as a result of the 22% increase in the realized gold price and a 2%

increase in the number of ounces sold. The average realized gold price in Q1 2007 was $650 per

ounce, compared with $532 per ounce in Q1 2006. The average spot price in Q1 2007 was $650

per ounce, compared with $554 per ounce in the corresponding period in 2006.

In the first quarter of 2007, Kinross produced 389,394 gold equivalent ounces, which was on

target and slightly higher than the comparable quarter in 2006. This includes 18,748 ounces of

gold equivalent production from the acquired Bema properties. The increase year-over-year can

be primarily attributed to increased production at La Coipa and Maricunga (formerly known as

Refugio) in Chile and the Porcupine Joint Venture (“PJV”) in Canada.

Cost of sales was $328 per ounce for the first quarter of 2007 which was approximately the same

as the corresponding period in 2006 and the Company remains on target to meet full-year

expectations of $330 - $340 per ounce. Cost of sales per ounce includes a non-cash increase of

approximately $9 resulting from purchase accounting related to the Bema transaction, whereby

the bullion inventory of Julietta and the portion of Maricunga acquired was increased to reflect fair

value. The adjusted cost of sales of $319 for comparative purposes is 2% lower then the first

quarter of 2006 due to improvements at the PJV, Musselwhite, Crixás and Fort Knox. We expect

a similar impact in the second quarter of 2007 and an overall impact to cost of sales per ounce for

the year of approximately $5. This impact is reflected in our full-year cost of sales per ounce

guidance of $330 - $340.

Earnings include net income of approximately $23.2 million after tax relating to non-cash foreign

currency translation losses ($7.1 million), net gains on non-hedge derivatives ($26.9 million), the

sale of the Lupin mine ($6.5 million), and the impact on ounces sold of increasing Bema’s

inventory to market value ($2.8 million).

KINROSS GOLD CORPORATION

2007 First Quarter Results

Page 2



General and administrative expense was $14.7 million in Q1 2007, compared to $10.1 million in

Q1 2006. The increase is primarily related to higher personnel and technology costs, professional

and consulting fees and one month of additional costs related to the Bema acquisition.

Cash flow from operating activities for the first quarter of 2007 increased more than threefold to

$90.2 million, compared with $20.1 million for the first quarter of 2006. The increase in cash flow

from operating activities was largely due to the impact of higher gold prices on earnings. Working

capital increased to $193.7 million at March 31, 2007 compared with $85.3 million at December

31, 2006, primarily the result of the acquisition of Bema, thereby increasing cash and accounts

receivable and inventory, which was partially offset by an increase in accounts payable and

accrued liabilities.

Bema Acquisition – Preliminary Purchase Price Allocation

Kinross completed the acquisition of Bema on February 27, 2007. The $2.9 billion acquisition

added to Kinross’ portfolio the remaining 50% interest in the Kinross-operated Maricunga mine in

Chile, a 49% interest in the Cerro Casale project in Chile, a 90% interest in the Julietta mine in

the Magadan region of Russia and a 75% interest in the Kupol gold/silver project in the Chukotka

region of Russia. The preliminary purchase price equation and allocation for the acquisition are

as follows:

(dollars in millions)

Preliminary purchase price equation

Kinross common shares issued (216.0 million common shares)

Cash

Acquisition costs

Fair value of options and warrants issued

Fair value of equity component of convertible debt

Total purchase price

Preliminary purchase price allocation

Total current assets

Property, plant and equipment

Other long-term assets

Total liabilities

Goodwill

Total purchase price

$

$

2,642.1

4.2

38.4

179.8

23.7

2,888.2

$

$

127.5

1,773.4

160.1

(870.2)

1,697.4

2,888.2

“With the smooth integration of Bema as well as the significant increase in our gold reserves, we

have an expanding pipeline of production projects, late-stage, pre-development and greenfields

projects to fuel our future growth,” said Burt.

KINROSS GOLD CORPORATION

2007 First Quarter Results

Page 3



Forward Sales Contracts

Under the terms of the Kupol project loan facilities, the Company is required to enter into gold

and silver hedge contracts over the life of the loans in order to cover a portion of the mine’s future

operating and debt service costs. Also acquired as part of the acquisition of Bema in February

2007, were gold and silver forward and option contracts intended to protect against a decline in

future metal prices at Maricunga and Julietta. Once adjusted for the 25% of the Kupol project

owned by a partner, Kinross has an economic interest in gold forward sales contracts and call

options equivalent to approximately 2% of gold reserves. At March 31, 2007, the following gold

and silver derivative contracts were outstanding:

YEAR OF SETTLEMENT

2008

2009

2010 - 2012

38.8

$ 509

42.8

$ 477

44.8

$ 414

-

$ -

-

$ -

-

$ -

58.5

566

103.6

674

149.2

561

314.7

677

Kupol Julietta &

Project Maricunga

201.3

424.7

629.8

93.7

80.7

89.5

(ounces in thousands)

Gold

Forward contracts (ounces)

Average price per ounce

Call options sold (ounces)

Average price per ounce

Put options purchased (ounces)

Average price per ounce

Silver

Forward contracts (ounces)

Average price per ounce

Call options sold (ounces)

Average price per ounce

Put options purchased (ounces)

Average price per ounce

2007

48.5

$ 431

44.3

$ 462

51.0

$ 405

150.0

$ 7.87

-

$ -

-

$ -

Total

295.0

505.4

719.3

$

$

$

$

160.1

$ 490

900.0

8.20

463.4

$ 489

1,800.0

$ 8.20

5,400.0

$ 13.83

5,400.0

$ 9.67

2,850.0

8,100.0

8,100.0

2,700.0

8,100.0

8,100.0

150.0

-

-

$

2,700.0

$ 13.83

2,700.0

$ 9.67

For the three months ended March 31, 2007, Kinross had unrealized gains on non-hedge gold and

silver derivative contracts of $26.9 million.

Operations review and update

(in

US$ millions

)

Gold equivalent ounces

Produced

Sold

2007

2006

2007

2006

82,714

84,280

35,800

40,732

56,295

23,740

17,030

41,040

7,763

-

-

389,394

79,677

85,091

30,132

42,900

38,627

24,121

16,168

32,214

-

13,465

-

362,395

#

#

#

#

#

#

#

#

#

#

72,765

83,720

33,528

43,984

48,026

27,503

16,560

37,995

14,086

-

-

378,167

67,608

94,067

32,153

46,127

40,066

23,938

16,860

31,948

-

15,599

3,452

371,818

#

$

#

#

#

#

#

#

#

Cost of sales

2007

2006

23.8

24.2

14.1

16.0

9.7

6.2

7.8

15.4

6.9

#

-

#

-

#

$ 124.1

21.5

27.6

14.1

15.1

11.3

4.5

7.2

10.7

-

8.6

0.9

$ 121.5

$

Cost of sales/oz

2007

2006

#

$ 327

#

289

#

421

#

364

#

202

#

225

#

471

#

405

490

#

-

#

-

#

$ 328

$ 318

293

439

327

282

188

427

335

-

551

261

$ 327

Fort Knox

Round Mountain

Porcupine JV

Paracatu

La Coipa

Crixas

Musselwhite

Refugio

(a)

Julietta

(b)

Other operations

(c)

Corporate and other

Total

(a)

(b)

(c)

(d)

(d)

Production from the Maricunga mine (formerly known as Refugio) is 100% for March 2007 only. Prior to that Kinross owned 50% of the operation.

Production from the Julietta mine is for March 2007 only.

Other operations include ounces produced and sold from Kubaka.

Corporate and other includes ounces sold from Lupin and New Britannia, although production is not included since the properties were in closure

and have subsequently been sold.

KINROSS GOLD CORPORATION

2007 First Quarter Results

Page 4



At the

Paracatu

mine in Brazil, gold equivalent production in the first quarter 2007 was 5%

lower when compared with Q1 2006, though production was above plan. The decrease year-

over-year is primarily due to an increase in the number of tonnes processed, which was

more than offset by mining lower grade ore at a lower recovery rate. The increase in the

tonnes processed was due to mining softer ore in the first quarter of 2007. Revenue

increased to $28.5 million in Q1 2007 from $25.2 million in the first quarter of 2006 due to

higher gold prices partially offset by fewer ounces sold. Cost of sales increased slightly in Q1

2007 over the same quarter of 2006 primarily due to increased consumable costs as well as

higher production taxes that are directly related to the higher gold prices and the continuing

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

At

Round Mountain

in Nevada, U.S.A., gold production declined slightly in Q1 2007 relative to

Q1 2006 as lower throughput and tonnes placed on the leach pads were largely offset by

higher recoveries from the pads. However, gold equivalent production was slightly above

plan for the quarter. Revenue increased 6% to $55.0 million from $51.7 million as a result

of higher realized gold prices partially offset by fewer ounces sold.

Gold production increased 4% in Q1 2007 at the

Fort Knox

mine in the Alaska, U.S., due to

higher grades and improved recoveries. Revenue increased 28% year-over-year primarily

due to the increased price of gold and an 8% increase in ounces sold compared to Q1 2006.

Cost of sales increased 11% mainly due to increases in commodity and energy costs.

Higher grades and recoveries from the Dome and Hoyle underground mines at the

Porcupine

Joint Venture

in Ontario, Canada, resulted in a 19% improvement in Q1 2007 gold production

when compared with Q1 2006. However, production was slightly below plan due to delayed

stripping at the Pamour pit being impacted by delays in construction of the new highway

and dam. Revenue increased to $22.0 million from $17.8 million in Q1 2006 primarily