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Kinross Gold records strong first quarter results; earnings per share of $0.16

May 7, 2007

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.)


• 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.

"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."

Please download the PDF for the full version of this news release.

Click here to download the Q1 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) 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; (5) 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; (6) certain price assumptions for gold and silver; (7) prices for natural gas, fuel oil, electricity and other key supplies remaining consistent with current levels; (8) production forecasts meet expectations; (9) 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 and those made in the “Risk Factors” section hereof. 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.