Kupol Project (currently under construction) – 75% Far Eastern Russian

Kinross acquired the Kupol project in Far Eastern Russia on February 28, 2007 through the acquisition of Bema Gold. The Kupol project is located in the Chukotka region, approximately 220 kilometres southeast of the town of Bilibino, the nearest major city. The remaining 25% interest is held by the Chukotka government.

• Kupol Technical Report (PDF)

The Kupol project consists of a high-grade gold and silver vein which remains open along strike. Development of the high-grade Kupol orebody includes a the construction of a 3,000 tonne per day mill and will employ both open pit and underground mining methods. Development and construction of the $705 million project commenced in 2006 and is expected to begin production in mid-2008.

The mine is expected to produce an average of 413,000 ounces of gold equivalent annually (Kinross's share) over the initial 6.5 years of mine life at a cost of sales of approximately $205 per ounce on a co-product basis using a gold price of $400 per ounce and a silver price of $6.00 per ounce. Kupol will become one of the lowest cost gold and silver mines in the world.

Kupol remains on track to begin operations in mid-2008. Progress continues on target with physical construction approximately 78% complete. Capital committed or spent to date is approximately 85% of budget. All major equipment has been installed, piping and electrical work is in progress, and leach tank installation is well advanced. Both underground and open pit development are progressing well, and some 230,000 tonnes of ore have been stockpiled.

Kinross’ share as at December 31, 2007