TORONTO, Ontario - Kinross Gold Corporation
("Kinross" or the"Company")(TSX-K; NYSE-KGC). Pursuant to the
alternative information guidelines of theOntario Securities
Commission ("OSC") Policy 57-603 and Canadian Securities
AdministratorsStaff Notice 57-301, Kinross is providing a notice to
the market regarding a restatement of itsprior financial statements
and an update on the process relating to the preparation and filing
ofits financial statements and related matters, until such time as
Kinross is current with its filingobligations under Canadian
securities laws.
During the preparation of its unaudited interim financial
statements for 2005, the Company andits new auditors became aware
that Kinross had not fully accounted for the impact of
foreigncurrency exchange rates on future tax liabilities relating
to the purchase of certain assetsacquired in the acquisition of TVX
Gold and Echo Bay in January 2003. The Company intendsto restate
its financial statements for 2003 and 2004 to fully account for
these changes.Previously issued financial statements for the years
ended 2003 and 2004 and interim periodsand the related auditors'
reports should no longer be relied upon. The Company estimates
thatthe impact of the restatement on its previously reported net
losses for 2003 and 2004 will be toincrease the losses by
approximately $25 million and $15 million, respectively. This
non-cashadjustment will have no impact on operating cash flows or
cash balances previously reported. The changes to the future tax
liabilities are primarily attributable to the Brazilian operations.
The Brazilian real has strengthened by approximately 40% from
January 2003 to September 2005against the U.S. dollar. The
translation to U.S. dollars of the Company's future tax liabilities
willalso have a negative impact on 2005 results.
Kinross is currently working to finalize and file its quarterly
financial statements for 2005 andother required regulatory filings
in order to bring the Company current. This will be done whenthe
restated 2003 and 2004 financial statements are completed which at
this time the Companybelieves will be January 2006.An application
was made to the Ontario Superior Court of Justice to obtain an
extension to theprevious order, which required Kinross to hold its
shareholders meeting by December 31, 2005.
The court has granted Kinross permission to hold its 2004 annual
general meeting anytimebefore February 28, 2006. The date for the
meeting will be set when the financial statementsare finalized.
We are issuing bi-weekly updates as to the status and timing which
can be viewed on ourwebsite at www.kinross.com. The next update is
scheduled for the week of January 2nd, 2006.