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Kinross doubles revenue and operating earnings in Q2

August 12, 2009

Cash flow per share before changes in working capital up by 83%

Margins at record levels

Toronto, Ontario, August 12, 2009 - Kinross Gold Corporation (TSX-K; NYSE-KGC) today announced its unaudited results for the second quarter ended June 30, 2009.

This news release contains forward-looking information that is subject to the risks 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.

• Gold equivalent production(1) was a record 560,479 gold equivalent ounces in the second quarter of 2009, compared with 406,032 ounces for the same period last year, an increase of 38%.

• Revenue doubled to a record $598.1 million in the second quarter, compared to $298.7 million during the same period last year. The average realized gold price was $915 per ounce sold compared to $903 per ounce sold in the second quarter of 2008, an increase of 1%. Total ounces sold were 651,390 gold equivalent ounces, compared with 330,633 ounces for the same period last year, an increase of 97%.

• Cost of sales per gold equivalent ounce(2) was $434 in the second quarter, a decrease of 7% compared with cost of sales per gold equivalent ounce of $466 for the same period last year. Cost of sales per gold ounce on a by-product basis was $382 in the second quarter, compared with $418 the previous year.

• Kinross' attributable margin per ounce sold(3) was a record $481 in the second quarter, an increase of 10% year-over-year.

• Cash flow from operating activities before changes in working capital(4) more than doubled to $227.1 million in the second quarter, or $0.33 per share, compared with $110.8 million, or $0.18 per share, over the same period last year.

• Adjusted net earnings(4) in the second quarter were $84.3 million or $0.12 per share, compared with adjusted net earnings of $49.5 million or $0.08 per share, for the same period last year. Reported net earnings for the second quarter were $19.3 million, or $0.03 per share, compared with net earnings of $26.0 million, or $0.04 per share, for the second quarter of 2008.

• The Company has revised its production guidance slightly and now expects to produce 2.3 - 2.4 million gold equivalent ounces for the full year 2009, primarily due to a longer than expected ramp-up at the Paracatu expansion. Cost of sales per gold equivalent ounce for the full year 2009 is expected to be consistent with previously-stated guidance.

• Throughput at the Paracatu expansion plant reached targeted levels by the end of the second quarter and the focus is now on improving gold recoveries to support full production by the fourth quarter.

• At Lobo-Marte in Chile, a pre-feasibility study is now underway and is expected to be completed by year-end, including a three-month drilling campaign that began in July. At the Fruta del Norte project in Ecuador, the Company has received environmental and water usage approvals and is awaiting final approval from the Ministry of Mines and Petroleum to re-commence infill drilling activities. The Cerro Casale feasibility study remains on track for completion in the third quarter of 2009. Kinross and Barrick Gold have signed a new shareholders agreement to govern the 50-50 joint venture. The agreement is being held in escrow pending completion of a reorganization of the corporate ownership structure.

• On August 1, unionized workers at the La Coipa mine voted to accept a new three-year collective agreement, ending a strike that began on July 8. The strike reduced La Coipa's forecast production for July by approximately 9,400 gold equivalent ounces.

• The Board of Directors has declared a dividend of $0.05 per common share, an increase of 25% over the dividend paid on March 31, 2009, reflecting higher gold prices, strong cash flow and a positive outlook for the Company's performance going forward. The dividend is payable on September 30, 2009 to shareholders of record at the close of business on September 23, 2009.

(1) Unless otherwise stated, production figures in this release are based on Kinross' share of Kupol production (75%).

(2) Cost of sales per ounce is a non-GAAP measure and is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third-party 25% shareholder.

(3) Attributable margin per ounce sold is a non-GAAP measure and is defined as average realized gold price per ounce less attributable cost of sales per gold equivalent ounce sold.

(4) Reconciliation of non-GAAP financial measures is located on pages 12 and 13 of this news release.

CEO commentary

Tye Burt, Kinross President and CEO, made the following comments in relation to the second quarter 2009 results.

"In the second quarter we continued to realize the benefits of our growth strategy. Additional production from our new mines, lower year-over-year cost of sales, and a strong gold price led to a doubling in revenue and cash flow before changes in working capital.4 Operating earnings were also up by 107% year-over-year, and adjusted earnings4 were up by 70% over the previous year.

"We're proud to have reduced costs by $32 per gold equivalent ounce year-over-year and to have increased margins to a new record of $481 per ounce, especially given that we do not benefit from higher base metal prices and by-product credits. Our costs were higher than anticipated at Paracatu during the quarter as we ramped up throughput to targeted levels, but with the mill now running well, we expect costs to come down as we improve recovery and increase production.

"Future growth remains our focus. At our Fort Knox expansion, we're putting ore on the new heap leach pads and are on schedule to produce first gold in the fourth quarter. At Maricunga and Paracatu, we're continuing to explore new opportunities for organic growth. And at Lobo-Marte, Fruta del Norte, and Cerro Casale, we're advancing the pipeline of development projects that will be a major part of our future.

"We are pleased to have increased our dividend, an indication of our confidence going forward and our commitment to continue to provide strong returns for our shareholders."

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

Click here to download the Q2 2009 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, but not limited to, any information as to the future financial or operating performance of Kinross, constitute ‘‘forward-looking information’’ or ‘‘forward-looking statements’’ within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for ‘‘safe harbour’’ under 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, possible events, statements with respect to possible events, 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, development and mining 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’’, ‘‘should’’, ‘‘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 or incorporated by reference 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 most recently filed Annual Information Form, or as otherwise expressly incorporated herein by reference as well as: (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Paracatu (including, without limitation, land acquisitions for and permitting and construction of the new tailings facility) being consistent with our current expectations; (3) development of the Phase 7 pit expansion and the heap leach project at Fort Knox continuing on a basis consistent with Kinross’ current expectations; (4) the viability, permitting and development of the Fruta del Norte deposit being consistent with Kinross’ current expectations; (5) political developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the implementation of Ecuador’s new mining law and related regulations and policies being consistent with Kinross’ current expectations; (6) the new feasibility study to be prepared by the joint venture for Cerro Casale, incorporating updated geological, mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors, and permitting, being consistent with the Company’s current expectations; (7) the viability, permitting and development of the Lobo-Marte project, including, without limitation, the metallurgy and processing of its ore, being consistent with our current expectations; (8) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Russian ruble and the U.S. dollar being approximately consistent with current levels; (9) certain price assumptions for gold and silver; (10) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (11) production and cost of sales forecasts meeting expectations; (12) the accuracy of our current mineral reserve and mineral resource estimates; and (13) labour and materials costs increasing on a basis consistent with Kinross’ current expectations. 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 or silver 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, Ecuador, or other countries in which we do business 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; 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 the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect, and could cause, Kinross’ 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. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the ‘‘Risk Factors’’ section of our most recently filed Annual Information Form. 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 or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities
Approximately 55%-60% of the Company’s costs are denominated in U.S. dollars.
A 10% change in foreign exchange could result in an approximate $5 impact in cost of sales per ounce.
A $10 change in the price of oil could result in an approximate $2 impact on cost of sales per ounce.
The impact on royalties of a $100 change in the gold price could result in an approximate $5 impact on cost of sales per ounce.

Other information

Where we say ‘‘we’’, ‘‘us’’, ‘‘our’’, the ‘‘Company’’, or ‘‘Kinross’’ in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.

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.