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Growth projects advance as Kinross third-quarter revenue increases 23 per cent

November 07, 2007

Toronto, Ontario, November 7, 2007 - Kinross Gold Corporation (TSX-K; NYSE-KGC) ("Kinross", "Kinross Gold" or the "Company"), today announced its unaudited results for the three and nine months ended September 30, 2007.

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

Third Quarter Highlights

• Production was 375,546 gold equivalent ounces in the third quarter of 2007, compared with 365,555 gold equivalent ounces for the same period last year. The Company expects 2007 annual production will be 1.6 million gold equivalent ounces versus the previously announced forecast of 1.65 million ounces.

• Revenue was $275.8 million in the third quarter, a 23% increase over the same period last year. The average realized gold price was $686 per ounce sold, as compared to an average realized gold price of $621 per ounce sold in the third quarter of 2006.

• Cost of sales per ounce(1) was $383 in the third quarter on sales of 402,895 gold equivalent ounces compared with cost of sales per ounce of $321 on sales of 359,827 gold equivalent ounces in the third quarter of 2006. The increase is due largely to industry-wide inflation in the cost of energy and other consumables, production and cost challenges at the Porcupine and Musselwhite operations, a production shutdown due to severe weather at the Maricunga operation, unfavourable currency exchange impacts, and increased price-based royalties at Round Mountain and Fort Knox. The Company expects the full-year cost of sales per ounce will be $355-365 versus the previously announced full-year forecast of $330-340 per ounce.

• Net earnings for the third quarter were $39.4 million, or $0.07 per share, compared with net earnings of $50.3 million, or $0.14 per share, in the same period last year. The year-over-year decrease in earnings per share is due largely to a 68% increase in the average number of shares outstanding.

• Cash flow from operating activities was $83.7 million in the third quarter of 2007 compared to $85.8 million for the corresponding period in 2006. The cash position was $292.5 million at September 30, 2007 compared to $154.1 million at December 31, 2006.

• Capital expenditures totaled $185.2 million in the third quarter.

• On September 25, 2007, Kinross announced an asset swap agreement with Goldcorp Inc., which will substantially increase the Company's ownership and control of its core mines, strengthen its strategic position in Chile, and reduce its overall cost of sales.

• Construction progressed well at Kupol and Paracatu, which remain on schedule to commence production in mid-2008, and at Buckhorn, which remains on schedule to begin production in the second half of 2008.

(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.

CEO commentary

Tye Burt, Kinross President and CEO, made the following comments in relation to the third-quarter 2007 results:

"We are pleased to record continued growth in production, revenue and earnings through the first nine months of 2007. Overall, our operations continue to perform well in a strong gold price environment. However, we are not immune to the cost pressures that affect our entire industry. Several factors had a negative impact on our costs and earnings in the third quarter, including production challenges at our Canadian joint ventures, weather and operating delays at our Maricunga mine in Chile, currency-related cost increases, and higher royalties due to a higher gold price.

"Going forward, our asset swap agreement with Goldcorp removes two of the higher cost operations from our portfolio and will significantly improve our cost profile, while increasing our ownership and operating control of our core mines.

"Most importantly, we made excellent progress at all projects during the quarter at our Paracatu, Kupol and Buckhorn projects, all of which remain on schedule. Together, these projects will increase Kinross' production 60 per cent by 2009, the fastest growth rate of any major gold producer, while substantially lowering our costs and improving our overall margins.

"Our existing operations remain firmly focused on managing the industry-wide cost pressures we face today, with initiatives aimed at maximizing efficiencies and controlling costs, reducing energy consumption, and extending mine life.

"As shown by our recent agreement with Linear Gold to partner on the promising Ixhuatan exploration project, we continue to work aggressively to build on our growing reserve base to ensure future development and growth, both on our own and with joint venture partners."

Pleas e download the PDF for the full version of this news release.

Click here to downloadthe Q3 2007 report (PDF).

Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of Kinross, constitute “forward-looking statements” within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, statements with respect to the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production, expected capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words “plans,” “expects,” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” or “will be taken,” “occur” or “be achieved” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Kinross contained in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our management’s discussion and analysis as well as: (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment or otherwise; (2) permitting development and expansion at Paracatu proceeding on a basis consistent with our current expectations; (3) permitting and development at the Kettle River - Buckhorn project proceeding on a basis consistent with Kinross’ current expectations; (4) permitting and development of the Phase 7 pit expansion and the heap leach project at Fort Knox proceeding on a basis consistent with Kinross’ current expectations; (5) that a long-term lease replacing the short term lease for the Kupol gold and silver project lands, and construction permits required from time to time, will be obtained from the Russian authorities on a basis consistent with our current expectations; (6) that the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian ruble and the U.S. dollar will be approximately consistent with current levels; (7) certain price assumptions for gold and silver; (8) prices for natural gas, fuel oil, electricity and other key supplies remaining consistent with current levels; (9) production forecasts meet expectations; (10) the accuracy of our current mineral reserve and mineral resource estimates. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates or gold lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Chile, Brazil, Russia or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions, including the Bema acquisition; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect Kinross’ actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking statements made in this news release are qualified by these cautionary statements, those made in the “Risk Analysis” section of our Management’s Discussion and Analysis, and those made in the “Risk Factors” section of our most recent Annual Information Form and other filings with the securities regulators of Canada and the U.S . These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. The technical information about the Company’s material mineral properties contained in this news release has been prepared under the supervision of Mr. Rob Henderson an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101.

Key sensitivities
Approximately 55%-60% of our costs are denominated in U.S. dollars. A 10% change in foreign exchange could result in an approximate $13 impact in cost of sales per ounce. A $10 change in the price of oil could result in an approximate $4 impact on cost of sales per ounce.