Toronto, Ontario, July
23, 2010 - Kinross Gold
Corporation (TSX: K, NYSE: KGC) announced today that it has reached
an agreement in principle with Harry Winston Diamond Corporation
(TSX: HW; NYSE-HWD) ("Harry Winston"), pursuant to which Kinross
will sell its 22.5% interest in the partnership holding Harry
Winston's 40% interest in the Diavik Diamond Mines joint venture to
Harry Winston for US$220 million, comprised of US$50 million cash,
approximately 7.1 million Harry Winston common shares with a value
of approximately US$100 million, and a note payable in the amount
of US$70 million. The completion of the transaction is subject to
execution of definitive binding documentation, as well as the
approval of the boards of both Harry Winston and Kinross, the
receipt of all required third party consents, the receipt of
required regulatory approvals (including the approval of the
Toronto Stock Exchange) and other customary conditions of
closing.
Kinross previously announced an agreement to sell to third
parties its current approximate 19.9% equity interest in Harry
Winston, which Kinross acquired in March 2009. As a result of
the sale of such equity interest, Kinross' rights to nominate a
member of the Harry Winston board and to maintain its proportionate
equity interest in Harry Winston have been terminated.
Other than the shares issuable as a result of the completion of
the transactions contemplated by the agreement in principle,
Kinross will hold no equity securities of Harry Winston following
the sale, and has no current intention to acquire any further
securities of Harry Winston.