Buckhorn Mine Schedule for Production in October

TORONTO, ON - Kinross Gold Corporation reported that construction of surface facilities at the Buckhorn mine project in Okanogan County, Washington is complete. Construction of the access road to the mine is more than 98% complete and is expected to be fully completed, with final inspection and approval from the U.S. Forest Service expected in September. Mine development work has continued, with the focus divided between the upper and main portals. Milling refurbishment activities are on track to initiate operation on schedule in October 2008.
  Ore will be shipped 26 miles to the milling facilities at the Kettle River Mine in Republica Washingtyon. Expected production for 2008 is approximately 20,000-30,000 ounces, at an expected average cost of sales per ounce of $315-335. In the second quarter, three core drills completed 3,656 meters at the Buckhorn and K2 mines. Step-out drilling to expand the SWZ orebody at Buckhorn encountered new, potentially mineralized skarn horizons beneath the main marble ore host.
  Construction of the heap leach project pad is advancing at the Fort Knox mine in Alaska, with construction approximately 57% complete. Delays have been encountered in the placement of the leach pad liner due to unseasonably wet weather conditions. Foundations for the carbon-in-column plant have been poured, with steel and equipment erection work under contract. Scheduled start-up of leaching operations is in the third quarter of 2009. Tonnes of ore mined and processed in the second quarter of 2008 were consistent with the second quarter of 2007. A decline in grade and recovery contributed to a reduction in gold equivalent ounces produced. The decrease in gold equivalent ounces sold during the quarter was primarily due to: 1) the decline in gold equivalent ounces produced and 2) timing, as the last production in June was not shipped until July.
  The Phase 7 pit expansion program neared completion with 7,137 meters completed by three core drills and one reverse circulation drill. Drilling was initiated on the South Wall target testing extensions of mineralized structures beyond the current pit design. Exploration drilling commenced along the Fort Knox trend at the YPS and Johnsons Saddle targets late in the second quarter.
  At the Round Mountain mine in Nye County, Nevada, tonnes of ore mined during the second quarter of 2008 were lower than in the second quarter of 2007, due in part to a planned major rebuild of a shovel. Grades at Round Mountain are decreasing as the pit expansion shells are mined. Gold equivalent ounces produced and sold declined in the second quarter of 2008 as grades were lower and fewer tonnes were processed. Cost of sales increased during the second quarter, primarily due to increases in the cost of diesel fuel and higher personnel costs. The Round Moutain Mine is a joint venture with Barrick Gold Corporation.  Kinross is the operator.
  Kinross reported that gold equivalent production was 406,032 gold equivalent ounces in the second quarter, in line with plan, compared with 439,783 ounces for the same period last year. Production is expected to increase during the third and fourth quarters as the Company's three growth projects proceed through commissioning and ramp-up. Taking into account the impact of the sale of the Julietta operation and the projected commissioning and ramp-up schedule at Paracatu, Kinross expects 2008 production to be approximately 1.8-1.9 million gold equivalent ounces, slightly below the previously stated forecast.
  The Paracatu mine in Brazil, gold equivalent ounces produced during the quarter increased as a result of slightly higher tonnes processed, higher grade and improved recoveries. Sales of gold equivalent ounces increased during the quarter due to higher production and sales of finished goods built up at the end of the first quarter of 2008. Metal sales for the second quarter were $47.3 million, significantly higher than in the second quarter of 2007 due to higher gold prices, as well as the 36% increase in gold equivalent ouinces sold in 2008.
  Commissioning of the Paracatu expansion began on schedule in July. The primary crusher and
overland conveyor have been fully commissioned with ore being crushed and placed in the crushed ore stockpile. Mining equipment is in full operation and the workforce has been fully
trained. The Company's original expectation was that the expansion project would reach full production in October. Based on the current estimate of the commissioning and ramp-up period, Kinross expects to produce first gold in September, and to reach full production in December
2008. The company expects that the expansion project will increase 2008 gold production at Paracatu to approximately 245,000-265,000 ounces at an expected average cost of sales per ounce of $455-475  for 2008, and that cost of sales per ounce will drop to $390-410 once full production is achieved. Work will proceed in September, as originally scheduled, to complete installation of a second ball mill and a second line of flotation cells.
  At the La Coipa mine in Chile, tonnes of ore mined in the second quarter of 2008 were lower compared to the same period of 2007 due to a pit wall failure in January 2008, which restricted access to the Coipa Norte pit. Partial access to the pit was re-established in the second quarter of 2008. The grade declined in the second quarter of 2008 compared to the second quarter of 2007 because in 2008 the primary source of ore was stockpiles, which have a lower grade than the Puren ore which was mined in 2007. Gold equivalent production at La Coipa on a 100% basis was 60,376 ounces for the second quarter of 2008, compared with second quarter 2007 production of 124,440 ounces on a 100% basis (of which Kinross had a 50% share).
 At the Maricunga mine in Chile, both tonnes processed and grades were higher in the second quarter of 2008 compared to the same period last year, however, gold equivalent ounces produced were comparable year-over-year, due to more refractory ore being mined and processed in 2008. Although production volume was similar in the second quarter of 2008 to the second quarter of 2007, ounces sold were lower by 21%, as a substantial shipment was delayed by poor weather and sold early in the third quarter.
 At the Crix‡s joint venture in Brazil, metal sales for the second quarter were $19.3million,an increase of 20% over the same period last year, primarily due to higher gold prices partially ofset by a decline in gold equivalent ounces sold compared to 2007. Cost of sales were comparable to the prior year because general increases associated with higher energy costs and foreign exchange were mostly offset by the lower costs associatedwith lower sales volumes in 2008.
  The Kupol mine in the Russian Federation, ore processing began in May as part of the commissioning process, and the first bar of gold was poured during that month. In June, mill throughput increased more quickly than expected as mill ramp-up proceeded well. Ore grade from the area of the stockpile which was processed was higher than plan, with gold grade averaging 36.55 grams per tonne and silver grade averaging 427.41 grams per tonne. Kinross' share of Kupol production in June was 51,487 gold equivalent ounces, which included 43,367 ounces of gold and 423,584 ounces of silver.
  At the Julietta  mine, in the Russian Federation, gold equivalent ounces produced in the second quarter of 2008 were 16,082 ounces, compared to 21,260 ounces in 2007. Gold equivalent ounces sold in the second quarter of 2008 were 16,909 ounces, compared to 20,025 ounces in the first quarter of 2007.
  Kinross expects to produce approximately 1.8-1.9 million gold equivalen ounces in 2008.This forecast incorporates the impact of the sale of the Julietta mine and the expected impact of the anticipated commissioning and ramp-up period for the Paracatu expansion project. Kinross expects to produce approximately 2.4-2.5 million gold equivalent ounces in 2009, incorporating
the impact of the Julietta sale.
 The company's address is 40 King Street West, 52nd Floor, Toronto, ON M5H 3Y2, (416) 365-5123, fax: (416) 363-6622, email: [email protected].