Toronto, Ontario, October 26, 2007 -- Kinross
Gold Corporation (TSX: K; NYSE: KGC) announced today that its
wholly-owned subsidiary, Kinam Magadan Gold Corporation, has
entered into a Memorandum of Understanding with OAO Polymetal under
which Polymetal has agreed to purchase all of the shares held by
Kinam Magadan in OAO Omolon Gold Mining Company (representing
approximately a 98.1% interest) for a purchase price of US
$15,000,000, plus a variable royalty on future production from the
Kubaka gold mine properties, subject to certain terms and
conditions.
OAO Omolon's assets include the Kubaka gold mine and related
mining licences, located in the Magadan Region in the Far East of
the Russian Federation. The Kubaka gold mine began commercial
production in 1997 and ceased mining operations in 2005.
"Kubaka made a significant contribution to Kinross over the
years and has given us invaluable experience in Russia for more
than a decade, which has served us well as we proceed with
development of our Kupol project," said Tye Burt, President and CEO
of Kinross. "I want to acknowledge our current and former Kubaka
employees for their efforts and many contributions."