August 4, 2006

Kinross Gold announces 45 percent revenue growth and

record earnings of $65.6 million in second quarter

Production on target and operating cash flow up 210 percent

$470 million Paracatu expansion enhances future gold production

Toronto, Ontario

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

or the “Company”), today announced its unaudited results for the three and six

months ended June 30, 2006.

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

Second Quarter Highlights

•

Kinross produced 385,514 gold equivalent ounces in the second quarter of 2006. The

Company remains on track to produce approximately 1.44 million gold equivalent

ounces for the year.

•

The Company’s revenue was $252.3 million in the second quarter, a 45 percent

increase over the same period last year while realizing $625 per ounce of gold sold, an

increase of 48 percent over the same period last year. The cost of sales

1

of $311 per

ounce on sales of 403,507 gold equivalent ounces remains on track to meet the

forecast of $305 - $315 per ounce for the full year.

•

Kinross achieved net earnings of $65.6 million, or $0.19 per share, compared with a net

loss of $16.4 million in the same period last year. These results include a $2.9 million pre-

tax gain on disposal of assets in the second quarter of 2006, contributing less than

$0.01 per share.

•

Kinross’ cash flow from operating activities in the second quarter was $94.9 million, a

210 percent increase compared to the $30.6 million generated in the second quarter

of 2005. The cash position rose to $149.0 million as at June 30, 2006 compared with

$84.1 million at March 31, 2006.

•

Kinross has further strengthened its management team with the addition of James

Toccacelli as Senior Vice President, Communications.

Updates

•

Kinross’ Board of Directors has approved an investment estimated at $470 million in its

wholly owned Brazilian subsidiary’s Paracatu expansion project in Brazil, which is

expected to start up in 2008. Average annual production at Paracatu is expected to

be approximately 557,000 ounces of gold per year from 2009 through 2013 at an

average cost of sales of approximately $230 per ounce. Proven and Probable Mineral

Reserves as at December 31, 2005 were 15.2 million gold ounces.

2

•

As previously disclosed, the Company’s registration statement in respect of the Crown

transaction was declared effective as of July 28, 2006 and a proxy

statement/prospectus has been mailed to Crown shareholders. Crown will hold a

shareholders meeting on August 31, 2006, where its shareholders will vote on the

transaction.

•

As previously disclosed, Kinross undertook various divestitures of non-core assets

consistent with our four-point plan including the George/Goose Lake property, the

Aquarius project, the Lupin site and the Blanket mine.

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.

2. This news release contains forward looking information that is subject to risk factors and assumptions set out in the

project summary on pages 10 & 11 and the cautionary note on page 12 of this news release.



“Our quarterly earnings are a record for Kinross and highlight the Company’s ability to generate

operating cash flow, earnings and ultimately value for shareholders,” said Tye Burt, Kinross’ President

and Chief Executive Officer. “The Company’s cash flow from operating activities increased more than

200 percent in the quarter compared to 2005, while the average realized gold price increased 48

percent compared to the same period.”

“Paracatu’s expansion is a key element in our commitment to ‘growth from core operations’, a pillar

of Kinross’ four-point strategic plan. We continue to drive forward with other initiatives in that plan,”

said Burt.

“Outstanding performance such as this is never the result of one single variable. Our policy against

gold hedging allowed us to enjoy the full benefit of a robust gold price. Our cash balances are

growing, giving us a strong balance sheet in support of our capital program. Our teams hard work,

cost control and achievement in meeting production and operating targets have all combined to

give these results,” added Burt. “I’d like to thank our employees for their ongoing dedication and

commitment to building a great company.”

On August 3, 2006, Kinross’ Board of Directors approved an investment of approximately $470 million in

Rio Paracatu Mineraçao, Kinross’ Brazilian operating subsidiary, for the expansion of the Paracatu mine

in Brazil. The project is anticipated to begin production in 2008. During the period from 2009 to 2013

the project is expected to have average annual throughput of 58 million tonnes with an average

annual output of approximately 557,000 ounces of gold at an average cost of sales of approximately

$230 per ounce. As a result, total Kinross production for 2009 is expected to aggregate 1.8 – 1.9 million

ounces of gold equivalent. For the years 2009 through 2019, average annual output at Paracatu is

expected to be approximately 490,000 ounces at an average cost of sales of $259 per ounce. The

current mine plan indicates a mine life of approximately 30 years, based on 15.2 million ounces of

current Proven and Probable Mineral Reserves. Over the life of the mine from 2009 onwards, average

annual production is expected to be approximately 418,000 ounces at an average cost of sales of

approximately $307 per ounce. For further technical information regarding the Paracatu expansion,

please refer to the technical report to be filed with SEDAR shortly, which, once filed, will be accessible

at

www.sedar.com

or on our website at

www.kinross.com.

Please refer to pages 10 & 11 of this news

release for a summary of the Paracatu expansion as well as material assumptions and risk factors

associated with the project.

To support this expansion, a five-and-a-half-year term loan in a principal amount of up to $250 million is

being negotiated to provide funding for the project. Also, the existing $295 million revolving credit

facility is being increased to $300 million and the maturity date is being extended from April 2008 to

August 2009.

Permits have been received for the installation of the 30 million tonnes per annum (“mtpa”) plant and

further permits are being obtained to accommodate additional throughput. The Company is

submitting an Environmental Impact Study to the Brazilian authorities for the construction of an

additional tailings pond. Large capital components have been ordered and site construction

preparation is underway. SNC-Lavalin, in conjunction with Minerconsult, has been engaged as the

engineering and procurement construction management group for the Paracatu expansion project.

“In line with our commitment to ‘growth from core operations’, Kinross’ Board of Directors has

approved a substantial investment at Paracatu that is expected to significantly increase production at

attractive costs, especially in the early years. We continue to optimize our assets portfolio, with an

intense focus on the project at Paracatu,” stated Tim Baker, Executive Vice President and Chief

Operating Officer. “Already one of Brazil’s largest gold mines, Paracatu is expected to be one of the

western hemisphere’s largest gold mines and a growing contributor to Kinross’ production profile in

2008 and beyond.”

2006 Second Quarter Results

Page 2

Paracatu expansion



Summary of financial and operating results

Three months ended June

30,

2006

2005

385,514

403,507

$

$

$

$

$

$

$

$

$

$

$

252.3

125.4

2.9

27.0

73.1

65.6

0.19

0.19

94.9

625

311

$

$

$

$

$

$

$

$

$

$

$

413,597

413,306

174.6

111.0

2.6

44.6

(0.7)

(16.4)

(0.05)

(0.05)

30.6

421

269

$

$

$

$

$

$

$

$

$

$

$

Six months ended June

30,

2006

2005

747,909

775,325

450.6

246.9

5.9

56.2

95.5

74.5

0.22

0.21

115.0

581

318

$

$

$

$

$

$

$

$

$

$

$

824,077

829,074

354.4

224.1

5.9

88.9

(0.7)

(17.3)

(0.05)

(0.05)

57.4

425

270

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

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 (loss)

Net earnings (loss)

Basic earnings (loss) per common share

Diluted earnings (loss) per common share

Cash flow from operating activities

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 second quarter of 2006 was 51.26:1, compared with 59.75:1 for the second 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 second quarter of 2006 increased 45 percent year-over-year to $252.3

million from $174.6 million in the same period of 2005, primarily as a result of higher realized gold prices,

partially offset by fewer ounces sold, primarily from Porcupine, Musselwhite and Round Mountain, and

reduced ounces from Kubaka and Kettle River as the mines wind down operations. The average

realized gold price in the second quarter of 2006 was $625 per ounce, compared with $421 per ounce

in the second quarter of 2005. The average spot price for the second quarter was $628 per ounce,

compared with $427 per ounce in the same period of 2005.

Gold equivalent production of 385,514 ounces was consistent with budgeted amounts for the quarter.

In the second quarter of 2006, the Company sold 403,507 gold equivalent ounces, down from the

413,306 ounces sold in 2005, primarily as a result of fewer ounces sold from Porcupine, Musselwhite and

Round Mountain and reduced sales and production from Kubaka as it winds down operations. The

Company remains on track to reach its production target of 1.44 million ounces for the full year 2006.

Cost of sales increased 13 percent in the second quarter of 2006 as compared to the similar period in

2005 largely due to industry-wide factors such as increased fuel, power, labour and other production

costs and the high cost of producing the final low-grade stockpiles at Kubaka. In addition, the

strengthening of the Canadian dollar, Brazilian real and Chilean peso against the weakening U.S.

dollar has increased costs at the Company’s non-U.S. mines. Kinross is committed to its continuous

improvement program, which looks to new systems, methods and technologies to reduce costs and

improve efficiencies.

General and administrative expense increased 37 percent in the second quarter of 2006 to $14.7

million, compared to $10.7 million in the second quarter of 2005. The increase is primarily related to

higher personnel costs, stock-based compensation expense, professional advisory fees and the

Canadian currency strengthening against the U.S. dollar.

Cash flow from operating activities during the second quarter of 2006 increased by $64.3 million to

$94.9 million, compared to $30.6 million in the second quarter of 2005. The increase in cash flow from

operating activities in 2006 was the result of increased earnings, largely due to the higher realized gold

price and changes in working capital requirements in 2006 versus 2005.

2006 Second Quarter Results

Page 3



Operations review and update

Three months ended June 30,

Gold equivalent ounces

Produced

Sold

(in

US$ millions

)

Fort Knox

Round Mountain

La Coipa

Crixas

Paracatu

Musselwhite

Porcupine Joint Venture

Refugio

(a)

Cost of sales

2005

87,632

93,647

33,251

24,895

40,831

21,300

52,600

2,048

55,826

1,276

413,306

$

$

2006

29.5

$

23.4

10.8

5.2

14.6

7.8

15.9

10.2

7.9

0.1

125.4

$

2005

23.1

22.9

11.6

3.7

11.3

6.9

13.4

0.7

17.0

0.4

111.0

$

$

Cost of sales/oz

2006

267

270

324

202

335

415

367

379

542

352

311

$

$

2005

264

245

349

149

277

324

255

342

305

313

269

2006

99,437

88,469

32,519

24,424

44,465

17,631

39,713

26,711

12,145

(c)

2005

86,426

100,745

30,352

24,153

43,252

19,403

51,474

1,948

55,844

-

413,597

2006

110,308

86,555

33,366

25,779

43,620

18,801

43,299

26,925

14,570

284

403,507

Other operations

(b)

Corporate and other

Total

-

385,514

Six months ended June 30,

Gold equivalent ounces

Produced

(in

US$ millions

)

Fort Knox

Round Mountain

La Coipa

Crixas

Paracatu

Musselwhite

Porcupine Joint Venture

Refugio

(a)

(b)

(c)

Sold

2006

177,916

180,622

73,432

49,717

89,747

35,661

75,452

58,873

30,169

3,736

775,325

2005

158,508

186,491

74,710

49,049

84,315

41,640

102,660

5,164

113,782

12,755

829,074

$

$

Cost of sales

2006

51.0

$

51.0

22.1

9.7

29.7

15.0

30.0

20.9

16.5

1.0

246.9

$

2005

40.6

47.0

24.1

7.2

23.6

13.3

26.7

1.3

35.4

4.9

224.1

$

$

Cost of sales/oz

2006

287

282

301

195

331

421

398

355

547

268

318

$

$

2005

256

252

323

147

280

319

260

252

311

384

270

2006

179,114

173,560

71,146

48,545

87,365

33,799

69,845

58,925

25,610

-

747,909

2005

160,379

196,138

64,376

48,345

83,861

40,947

104,365

4,895

120,771

-

824,077

Other operations

Corporate and other

Total

(a)

(b)

(c)

The Refugio mine commenced production in late 2005.

Other operations include ounces produced and sold from Kubaka and Kettle River for 2005 and Kubaka in 2006.

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 was higher in the second quarter of 2006

when compared with the same quarter in 2005 resulting from higher throughput and recoveries,

partially offset by lower grades. The decrease in throughput in the second quarter of 2005 as

compared to second quarter 2006 occurred due to planned mill repairs reducing availability. Cost of

sales in 2006 increased 29 percent over the same quarter of 2005 primarily due to increased energy

and consumable costs, and the 13 percent appreciation of the Brazilian real against the U.S. dollar.

At

Round Mountain

in the United States, production declined 12 percent in the second quarter of 2006

relative to the same period in the prior year due to lower throughput resulting from a mill liner change,

unscheduled maintenance, loader availability and the processing of lower grade stockpiles. Cost of

sales increased 2 percent due to increased input commodity costs. Royalties also increased as a

direct result of higher gold prices.

2006 Second Quarter Results

Page 4



Production at the

Fort Knox

mine in the United States increased 15 percent in the second quarter of

2006 when compared to the same period in 2005 as a result of increased tonnage and a higher

grade, partially offset by a lower recovery as the mine processed a zone of metallurgically complex

ore. Cost of sales increased 28 percent due to the higher number of ounces sold partially offset by the

increased tonnage processed. Increases in fuel and power costs continue to negatively impact cost

of sales.

At the

Porcupine Joint Venture

in Canada, gold production in the second quarter of 2006 was 23

percent lower than the second quarter of 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 due to delayed access to the higher grade east end of the pit pending road

construction. Metallurgical recovery was 2 percent lower, which again reflected the lower grade

Pamour ore. Cost of sales increased 19 percent through the impact of higher energy and commodity