K.TO · 2012-02-15

Financial Statements and MD&A Kinross reports 2011 fourth quarter and year-end results Achieves record production, revenue, margins, cash flow in 2011 Dividend increased by 33%

Production Results Financials Corporate Actions

For more information, please see Kinross’ 2011 year-end Financial Statements and MD&A at www.kinross.com NEWS RELEASE Kinross reports 2011 fourth quarter and year-end results Achieves record production, revenue, margins, cash flow in 2011 Dividend increased by 33%

Toronto, Ontario – February 15, 2012 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the fourth quarter and year ended December 31, 2011.

(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.)

Financial and operating highlights:

Production¹: 643,288 gold equivalent ounces, a 5% decrease over Q4 2010. Full-year production was 2,610,373 gold equivalent ounces, in line with guidance and a 12% increase over full-year 2010.

 Revenue: $949.3 million, a 3% increase over Q4 2010. Full-year revenue was a record $3,943.3 million, a 31% increase over full-year 2010.

Production cost of sales²: $636 per gold equivalent ounce, versus $549 per gold equivalent ounce in Q4 2010. Full- year production cost of sales was in line with guidance at $596 per gold equivalent ounce, versus $506 per gold equivalent ounce for full-year 2010.
Attributable margin³: $965 per ounce sold, a 23% increase over Q4 2010. Full-year attributable margin was $906 per ounce sold, a 32% increase over full-year 2010.

Adjusted operating cash flow⁴: $367.3 million, or $0.32 per share, versus $357.0 million, or $0.32 per share, in Q4  2010. Full-year adjusted operating cash flow was $1,598.7 million, or $1.41 per share, versus $1,109.6 million, or $1.35 per share, for full-year 2010.

Adjusted net earnings^{4, 5}: $196.6 million, a 24% increase over Q4 2010. Adjusted net earnings per share were $0.17, compared with $0.14 in Q4 2010. Full-year adjusted net earnings were $871.8 million, a 79% increase over the previous year. Full-year adjusted net earnings per share were $0.77, versus $0.59 per share for full-year 2010.
Reported net earnings/loss⁵: A reported net loss of $2,783.7 million, or $2.45 per share (which includes the charge noted below), versus a loss of $72.9 million, or $0.06 per share, for Q4 2010. Full-year reported net loss was $2,073.6 million, or $1.83 per share, versus earnings of $759.7 million, or $0.92 per share, for 2010.
Non-cash goodwill impairment charge: The reported net loss for 2011 included a non-cash goodwill impairment charge of $2,937.6 million. The Tasiast project represents $2,490.1 million or 85% of this charge.

 Reserves and resources: Proven and probable mineral reserves at year-end 2011 were 62.6 million ounces of gold. Measured and indicated (M&I) mineral resources at year-end were 25.4 million ounces of gold, an increase of 7.7 million ounces, or 44%. M&I mineral resources at Tasiast increased compared with the update provided on August 10, 2011, as 2.1 million gold ounces were converted from inferred mineral resources. Overall M&I mineral resources at Tasiast increased by 9.0 million gold ounces compared with year-end 2010.

Growth projects:

Progress continues on the Company’s capital and project optimization process. Tasiast and Dvoinoye remain key development priorities, while the Company has established new parameters for project spending and timelines.

Dividend:

As a result of strong operational performance and cash flow the Company is increasing its semi-annual dividend from $0.06 to $0.08 per common share, an increase of 33%.

1 Unless otherwise stated, production figures in this release are based on Kinross’ share of Kupol (75% up to April 27, 2011, 100% thereafter) and 90% of Chirano production.

2 “Production cost of sales per gold equivalent ounce” is a non-GAAP measure defined as production cost of sales per the financial statements divided by the attributable number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third-party shareholder (75% Kinross ownership up to April 27, 2011) and Chirano sales to a 10% minority interest holder. Production cost of sales is equivalent to total cost of sales (per the financial statements), less depreciation, depletion, amortization, reclamation expense, and impairment charges, and is generally consistent with cost of sales as reported under Canadian GAAP prior to the adoption of IFRS.

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

4 Reconciliation of non-GAAP measures is located on page 16 of this news release.

5 “Net earnings” figures in this release represent “net earnings attributed to common shareholders.”

CEO Commentary

Tye Burt, President and CEO, made the following comments in relation to fourth quarter and year-end 2011 results:

“Our ten operating mines are generating strong cash flow. Tasiast remains our first development priority in a measured and prudent plan for capital allocation and growth designed for long-term value and financial strength. “In 2011, we set new records for production, revenue, and margins, and generated $1.6 billion in adjusted operating cash flow. At year-end, our liquidity position was approximately $2.9 billion, including cash and undrawn bank lines. As a result of this strong performance, and our expectation of continued robust cash flow from operations, we are increasing our semi-annual dividend by 33%. Our recorded net loss was the result of a noncash goodwill impairment charge of $2.9 billion.

“We are making good progress on our capital and project optimization process. Recognizing today’s challenging cost environment, we are taking a conservative approach to project development and capital allocation, and are prioritizing our projects based on investment returns and long-term value creation, not just top-line production growth. Tasiast’s expanding current production and long-term potential confirms its status as our first growth priority, as we continue to advance Lobo-Marte and FDN while extending the timelines for both projects.”

Financial results Summary of financial and operating results

Three months ended Twelve months ended

December 31, December 31,

(dollars in millions, except per share and per ounce amounts)	2011	2010(i)	2011	2010(i)
Total(a)gold equivalent ounces(b)- produced	650,643	734,126	2,702,573	2,527,695
Total(a)gold equivalent ounces(b)- sold	607,948	696,355	2,701,358	2,537,175
Attributable(c)gold equivalent ounces - produced	643,288	676,635	2,610,373	2,334,104
Attributable(c)gold equivalent ounces - sold	601,159	647,494	2,611,287	2,343,505

- Metal sales $ 949.3 $ 920.4 $ 3,943.3 $ 3,010.1 Production cost of sales^(d) $ 386.7 $ 372.6 $ 1,596.4 $ 1,249.0 Depreciation, depletion and amortization $ 131.0 $ 179.1 $ 577.4 $ 551.5 Impairment charges $ - Operating earnings (loss) $ (2,648.3) $ (29.8) $ (1,542.5) $ 648.9 Net earnings (loss) attributed to common shareholders $ (2,783.7) $ (72.9) $ (2,073.6) $ 759.7 Basic earnings (loss) per share $ (2.45) $ (0.06) $ (1.83) $ 0.92 Diluted earnings (loss) per share $ (2.45) $ (0.06) $ (1.83) $ 0.92 Adjusted net earnings attributed to common shareholders^(e) $ 196.6 $ 158.5 $ 871.8 $ 486.4 Adjusted net earnings per share^(e) $ 0.17 $ 0.14 $ 0.77 $ 0.59 Net cash flow provided from operating activities $ 418.1 $ 294.6 $ 1,416.9 $ 1,002.2 Adjusted operating cash flow ^(e) $ 367.3 $ 357.0 $ 1,598.7 $ 1,109.6 Adjusted operating cash flow per share^(e) $ 0.32 $ 0.32 $ 1.41 $ 1.35 Average realized gold price per ounce $ 1,601 $ 1,333 $ 1,502 $ 1,191 Consolidated production cost of sales per equivalent ounce sold^(f) $ 636 $ 535 $ 591 $ Attributable^(c) production cost of sales per equivalent ounce sold^(g) $ 636 $ 549 $ 596 $ Attributable production cost of sales per ounce sold on a byproduct basis^(h) $ 593 $ 491 $ 542 $

(a) "Total" includes 100% of Kupol and Chirano production.

(b)

"Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratio for the fourth quarter of 2011 was 52.64 , compared with 51.93:1 for the fourth quarter of 2010; year to date 2011 was 44.65:1, compared with 60.87:1 for 2010.

(c) "Attributable" includes Kinross' share of Kupol (75% up to April 27, 2011, 100% thereafter) and Chirano (90%) production.

(d) "Production cost of sales" is equivalent to "Total cost of sales" per the consolidated financial statements less depreciation, depletion and amortization and impairment charges and is generally consistent with "Cost of sales" as reported under CDN GAAP prior to the adoption of IFRS.

(e) "Adjusted net earnings attributed to common shareholders", "Adjusted net earnings per share", "Adjusted operating cash flow" and "Adjusted operating cash flow per share" are non-GAAP measures. The reconciliation of these non-GAAP financial measures is located on page 16 of this news release.

(f ) "Consolidated production cost of sales per ounce" is a non-GAAP measure and is defined as production cost of sales per the consolidated financial statements divided by the total number of gold equivalent ounces sold.

(g) "Attributable production cost of sales per ounce" is a non-GAAP measure and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold.

(h)

"Attributable production cost of sales per ounce on a by-product basis" is a non-GAAP measure and is defined as production costs less attributable ^(c) silver revenue divided by the total number of attributable^(c) gold ounces sold.

(i ) Prior year figures have been restated to conform to IFRS.

p. 2 Kinross reports 2011 fourth quarter and year-end results www.kinross.com Kinross produced 643,288 attributable gold equivalent ounces in the fourth quarter of 2011, a 5% decrease over the fourth quarter of 2010, mainly due to the expected reduction in grades at several mines. Full-year production was 2,610,373 gold equivalent ounces, in line with previously stated guidance and a 12% increase over full-year 2010 mainly due to a full-year of production from the Tasiast and Chirano mines, and additional production from Kupol, as the Company increased its ownership to 100% in the second quarter of 2011.

Production cost of sales per gold equivalent ounce² was $636 compared with $549 for the fourth quarter of 2010, an increase of 16%, mainly due to increases in labour costs, diesel and power costs, and royalties. Production cost of sales per gold equivalent ounce for full-year 2011 was $596, in line with previously stated guidance, compared with $506 for full-year 2010. Production cost of sales per gold ounce on a by-product basis was $593 in the fourth quarter of 2011, compared with $491 in Q4 2010, and based on Q4 2011 attributable gold sales of 550,943 ounces and attributable silver sales of 2,643,385 ounces. Production cost of sales per gold ounce on a by-product basis was $542 for the full year, compared with $460 for full-year 2010.

Revenue from metal sales was $949.3 million in the fourth quarter of 2011, versus $920.4 million during the same period in 2010, an increase of 3%, due to a higher average realized gold price. The average realized gold price was $1,601 per ounce in Q4 2011, compared with $1,333 per ounce for Q4 2010, an increase of 20%. 2011 fullyear revenue was a record $3,943.3 million, compared with $3,010.1 million for full-year 2010, an increase of 31%. The average realized gold price per ounce was $1,502 for full-year 2011, versus $1,191 per ounce for fullyear 2010, an increase of 26%.

Kinross’ margin per gold equivalent ounce sold³ was $965 for the fourth quarter, an increase of 23% compared with the Q4 2010, due mainly to a higher realized gold price. Full-year margin per gold equivalent ounce sold was $906 compared with $685 for full-year 2010, a 32% increase.

Adjusted operating cash flow⁴ was $367.3 million for the quarter, or $0.32 per share, compared with $357.0 million, or $0.32 per share, for Q4 2010. Adjusted operating cash flow for full-year 2011 was $1,598.7 million, or $1.41 per share, compared with $1,109.6 million, or $1.35 per share, for full-year 2010. Cash and cash equivalents were $1,766.0 million as at December 31, 2011, compared with $1,466.6 million as at December 31, 2010.

Adjusted net earnings^{4, 5} were $196.6 million, or $0.17 per share, for Q4 2011, compared with $158.5 million, or $0.14 per share, for Q4 2010. Adjusted net earnings were $871.8 million, or $0.77 per share, for full-year 2011, compared with $486.4 million, or $0.59 per share, for full-year 2010.

Reported net loss⁵ was $2,783.7 million, or $2.45 per share, for Q4 2011, compared with a loss of $72.9 million, or $0.06 per share, for Q4 2010. Reported net loss was $2,073.6 million, or $1.83 per share, for full-year 2011, compared with reported net earnings of $759.7 million, or $0.92 per share, for full-year 2010.

Reported net earnings included a non-cash goodwill impairment charge of $2,937.6 million, as outlined on page 12 of this news release. The impairment charge was a result of changes in market conditions, including industrywide increases in capital and operating costs, a decline in industry-wide valuations as at year-end, and the Company’s growing understanding of the Tasiast project parameters, including its analysis of a draft mine plan. The Tasiast project represents $2,490.1 million, and Chirano $447.5 million, of the non-cash goodwill impairment charge recorded.

Capital expenditures were $585.0 million for Q4 2011, compared with $263.0 million for the same period last year, an increase due mainly to project-related expenditures at Paracatu, Tasiast and Chirano. Capital expenditures for the full-year 2011 were $1,651.5 million, compared with $628.3 million in 2010, an increase due mainly to projectrelated expenditures at Paracatu, Tasiast, Dvoinoye, and Chirano.

Operating results

Mine-by-mine summaries of fourth quarter and year-end 2011 operating results may be found on pages 19 and 23 of this news release. Highlights include the following:

p. 3 Kinross reports 2011 fourth quarter and year-end results www.kinross.com

North America: With fourth quarter results remaining strong across North American operations, full-year production exceeded 2011 regional guidance, while full-year cost of sales were below regional guidance levels. Increased ore processing levels for the full year offset the expected reduction in grades at Fort Knox and Kettle River.
Russia: At Kupol, full-year production was above 2011 regional guidance, primarily as a result of record ore processing levels due to improved mill throughput. Production cost of sales for the full year was $378 per gold equivalent ounce, below the regional guidance range, as strong production and improved input costs offset the decline in grades.
West Africa: Full-year production was slightly below 2011 regional guidance, while full-year production cost of sales was in line with the regional guidance range. At Tasiast, production increased to 54,800 gold equivalent ounces in Q4, a quarterly record, mainly due to higher mill throughput, improved grades, and the ramp-up of the ADR (Adsorption, Desorption and Refining) plant during the quarter. Q4 production cost of sales per ounce was lower compared with Q4 2010 due to higher production. At Chirano, high grades at the Akwaaba underground mine resulted in the strongest quarterly production for the year.
South America: Full-year production was below the 2011 regional guidance mainly due to a shortfall at Paracatu, while full-year production cost of sales remained within the regional guidance range. Paracatu’s Q4 production was lower than expected as a result of a temporary shutdown of the SAG mill in October, as previously disclosed, and lower throughput at Plant 1. At Maricunga, full-year production increased by 51% compared with 2010 due to higher tonnes processed and higher gold grades, which also contributed to significantly lower full-year cost of sales per ounce compared with 2010. At La Coipa, Q4 production and cost of sales were negatively impacted by lower grades and higher energy costs, as the operation processed an increased amount of low grade stockpile material during the quarter.

Project update and new developments

The forward-looking information contained in this section of the release is subject to the risks and assumptions contained in the Cautionary Statement on Forward- Looking Information on page 14 of this news release.

Capital and project optimization process

On January 16, 2012, Kinross announced that it had begun a comprehensive capital and project optimization process with the aim of improving capital efficiency and investment returns while re-sequencing its three major growth projects at Tasiast, Lobo-Marte, and Fruta del Norte (FDN). The following is an update on this process:

Capital allocation framework: Given the significant capital requirements to develop the Company’s growth pipeline, and in light of industry-wide cost escalation in materials, labour, energy, engineering, and equipment, the Company is establishing more stringent parameters for capital allocation and project development.

The framework for total annual capital spending will be based on a conservative estimate of existing liquidity, cash flow availability, and gold price. The Company intends to focus on Tasiast as its top development priority, and extend the development timelines for FDN and Lobo-Marte. This is expected to result in lower capital expenditures than previously anticipated over the next several years.

Applying this framework to capital allocation in 2012, using current forecasts for production, cash flow, and gold price, the Company expects the following breakdown for capital expenditures and shareholder returns: approximately $1.2 billion for sustaining and development capital at existing operations, including several expansion projects; approximately $180 million for direct shareholder returns, in the form of dividend payments; and approximately $1.0 billion for growth projects, compared with the previous guidance of $1.3 billion. Approximately $765 million of capital spending on growth projects in 2012 will be allocated to Tasiast.

Annual capital allocations for growth projects in future years may increase or decrease depending on gold price, projected cash flow, sustaining capital requirements, and projected dividend payments. Based on current forecasts and assumptions, the expected annual allocation for growth capital would be $1.0-1.5 billion for the next two to three years. In determining capital allocations, key objectives will continue to be maintaining liquidity and

p. 4 Kinross reports 2011 fourth quarter and year-end results www.kinross.com debt leverage at a level commensurate with an investment grade rating, and providing an appropriate return of capital to shareholders relative to the Company’s growth profile.

Project sequencing and scheduling: Based on the parameters outlined above, the Company is continuing to analyze various development scenarios.

As noted above, the Tasiast expansion remains the Company’s immediate strategic priority for growth and capital allocation. Kinross continues to assess the economics of a “mill-only” processing option for the Tasiast expansion as its base case, using updated mineral resource information from the 2011 infill drilling campaign. The Company is also studying alternative processing scenarios, including heap leaching, which requires additional column testing and analysis. Kinross expects to make a preliminary selection of a processing option at the end of the second quarter of 2012, and is targeting commencement of construction in mid-2013. Construction of a 60,000 tonne-per-day mill would be expected to take 25 to 28 months. Construction of a heap leach facility would be expected to take 18 to 20 months. In either case, the Company is targeting ramp-up of a new production facility at Tasiast in 2015. The construction timetable and production start dates are expected to be confirmed following completion of the expansion project feasibility study, expected in the first half of 2013.

Dvoinoye is the Company’s next priority for development. The Dvoinoye project remains on schedule and on budget, with ore processing expected to commence in the second half of 2013.

Given the prioritization of Tasiast and Dvoinoye for capital allocation, Kinross is extending the project timelines for Lobo-Marte and FDN. At Lobo-Marte, the Company will use this additional time to complete permitting, further drilling at the Valy deposit, and study opportunities for project optimization. Approval of the Environmental Impact Assessment is targeted for the end of 2012, and completion of the project feasibility study is targeted for 2013.

At FDN, the Company is continuing its feasibility study work and has recommenced negotiations with the government of Ecuador on an enhanced economic package for developing the project. The Company expects to proceed with the project only when it is satisfied with the terms of the final exploitation and investment protection agreements and has made a positive decision to construct the mine following the completion of its feasibility study work. Kinross has advised the government that the Company will be exploring other options to lower future capital commitments to the project, including project financing, potential strategic partnerships, and lower-cost processing alternatives. The timing of the FDN feasibility study will depend on the successful conclusion of these negotiations.

Further development and timing decisions for Lobo-Marte and FDN will depend on a range of factors, including progress on development at Tasiast, projected capital and operating costs based on project feasibility studies, and market variables such as gold price.

Project organization and construction management: Building on the regionalization effort that has been implemented over the past year, the Projects and Operations teams have been consolidated under the leadership of Brant Hinze, Chief Operating Officer. The new structure unites Projects and Operations into a single team, and leverages the increased project management capacity which the Company has built at a regional level in order to improve efficiency and alignment in project management, and reduce the cost of outsourced engineering services. As part of this re-organization, Ken Thomas is transitioning from his position as Senior Vice-President, Projects, into a senior advisory role.

The project updates below contain details on additional activities underway on specific projects as part of the capital and project optimization process.

Growth projects at sites⁶,⁹

Tasiast expansion project

Results from 2011 drilling continue to confirm Kinross’ confidence in Tasiast as a world-class gold deposit. M&I mineral resources at Tasiast increased compared with the update provided on August 10, 2011, as 2.1 million

6 The technical information about the Company’s material mineral properties contained in this news release (other than exploration activities) has been prepared under the supervision of, and verified and approved by, Mr. Rob Henderson, an officer of the Company who is a qualified person within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Properties (“NI 43-101”). The Company’s normal data verification procedures have been used in collecting, compiling, interpreting and processing the data presented.

p. 5 Kinross reports 2011 fourth quarter and year-end results www.kinross.com ounces were converted from inferred mineral resources. Overall M&I mineral resources at Tasiast increased by 9.0 million ounces compared with year-end 2010. As at year end 2011, proven and probable mineral reserves at Tasiast were 7.5 million gold ounces, measured and indicated mineral resources were 11.1 million gold ounces, and inferred mineral resources were 1.9 million gold ounces.

The initial phase of the expansion project at Tasiast is now complete, following construction of the West Branch dump leach and ADR (Adsorption, Desorption and Refining) facilities. Regarding the next phase of expansion, the Company continues to explore processing options at Tasiast with the objective of improving project economics and reducing overall project execution risk. In parallel with the project optimization process, work continues on basic infrastructure and pre-production development at Tasiast, which will be required regardless of the final mining and processing configuration at an expanded operation.

Exploration in 2012 will continue to apply Kinross’ increasing knowledge of the geology of the Tasiast mineral resource to target new discoveries near the mine and in the district. To this end, Kinross commenced 2012 with 15 drill rigs, 12 of which are deployed for exploration along the mine corridor and to test high-quality geological, geochemical, and geophysical targets throughout the 80 kilometre greenstone belt. Three core rigs remain at West Branch to continue a metallurgical drilling program.

Review of 2011 drilling campaign: Drilling continued with nine core and eight reverse circulation (“RC”) rigs in operation (264 holes for 105,315 metres) throughout the quarter. An aggregate total of 3,074 holes for 442,779 metres were drilled on the Tasiast properties in 2011. Mineral resource definition drilling was completed in Q4 2011.

Deep drilling continued between West Branch (Greenschist Zone) and Piment Sud Sud with five holes completed for 11,405 metres. No assays are currently available for the new drilling as the Superlab, commissioned in Q4 2011, was occupied to full capacity with samples from drill holes included in the year-end mineral resource update. It is expected to take approximately three to four months to receive results for the 100,000 exploration samples that remain in the analytical pipeline.

Fourth quarter drilling advanced at the C67 (11,813 metres), C69 (10,609 metres), and C6.12 (9,683 metres) targets. Near-surface sulfide mineralization has been identified over 1,200 strike metres at C67. Further drilling is being designed to test continuity of mineralized zones along strike and to target possible extensions at depth. Full results of drilling from the three target areas were not available at the time of this news release.

Overview of Tasiast ore body: Kinross’ technical understanding of the Tasiast gold deposit has increased substantially as a result of the previous 15 months of drilling.

The deposit consists of a number of ore bodies hosted along eight strike kilometres of the Tasiast Shear Zone (Figure 1: http://www.kinross.com/media/225648/q4%20year%20end%202011%20figure%201.pdf). Two main styles of mineralization are evident, each distinguished by the rocks hosting the gold mineralization. The low grade, Piment ore bodies (Sud-Sud, Sud-North, Central, North and Prolongation) are hosted by iron formation rocks weathered to variable depths that have created an undulating oxidation surface. The oxide mineral resource occurs above this surface and transitions to individual shoots of low grade sulfide ore below. A number of these shoots are open at depth.

The second style of gold mineralization, known as the Greenschist Zone, constitutes the bulk of mineral resources at Tasiast. This style of mineralization is characterized by sheeted gold-bearing quartz veins hosted by mafic rocks in the core of the Tasiast antiform. The core of the Greenschist Zone contains the highest density of quartz veins where the rocks are most brittle. The more ductile rocks on the edge of the Greenschist Zone contain fewer veins. A close correlation between vein density and gold grades has been established by drilling and explains the presence of a high grade core surrounded by an envelope of lower grade gold mineralization.

Update on Tasiast project optimization: Analysis of data from infill drilling completed as of year-end 2011 at Tasiast indicates that lower-grade material may potentially be developed more economically with less capital by using heap leaching in combination with carbon-in-leach (CIL) milling. The Company continues to analyze the

p. 6 Kinross reports 2011 fourth quarter and year-end results www.kinross.com existing Tasiast mineral resource estimate (inclusive of mineral reserves) according to a potential split between CIL, dump leach and heap leach processing options, as illustrated by the estimates⁷ below:

				Measured and Indicated			Inferred Mineral Resource
				Mineral Resource (includes
				Mineral Reserves)
	Material	Process	Gold
	Type	Option	cut-off
				Tonnes	Gold	Gold	Tonnes	Gold	Gold
			grade
				(kt)	grade	ounces	(kt)	grade	ounces
			(g/t)
					(g/t)	(koz)		(g/t)	(koz)
Oxide Dump Leach8 >0.1 59,304 0.47 898 8,954 0.33 94 Primary Heap Leach 0.25-0.6 196,508 0.40 2,520 37,000 0.40 472 Primary CIL >0.6 276,287 1.71 15,146 32,263 1.25 1,294 Total 532,099 1.09 18,564 78,217 0.74 1,860

In determining reasonable prospects of economic extraction, the following criteria were used:

Assessment of geological and grade continuity of mineralized material;
Block classification into appropriate categories of measured, indicated and inferred mineral resources;
Confinement of mineralized blocks within an optimized pit shell based on a gold price of US$1,400/oz less 5% gross royalty. Total volume of material within the pit is 3.2 billion tonnes;
Conventional truck and shovel open pit mining with an average unit mining cost of $1.92/t mined;
Processing with a combination of dump leaching, heap leaching and CIL milling;
Geotechnical, metallurgical and mine design parameters based on test work and studies conducted in 2011.

A mineral resource reported cut-off grade of 0.1 g/t for the oxide dump leach is based on estimated dump leach process operating costs of $2.50/t, a general and administrative (G&A) plus sustaining cost estimate of $0.90/t and expected dump leach gold recoveries of 70% to 75%, depending on lithology, in accordance with current mine operating budgets. A mineral resource reported cut-off grade of 0.25 g/t for a fine crush sulphide heap leach is based on current estimates for process operating costs of $4.70/t, a G&A plus sustaining cost estimate of $1.40/t and expected greenschist heap leach gold recovery of 62%. A mineral resource reported cut-over grade of 0.6 g/t for a new CIL plant is based on current estimates for process operating costs of $12.50/t, a G&A plus sustaining cost estimate of $4.60/t and expected CIL gold recovery of 90% to 93%, depending on head grade. A higher cut-over grade would result in more tonnage reporting to the heap leach and less tonnage, but a higher grade, reporting to the CIL plant.

In 2011, SGS Lakefield and other testing organizations completed a confirmatory phase of metallurgical test work for grinding and CIL milling of the West Branch deposit. A total of 54 drill holes representing the main ore types up to 700 metres deep were sampled to provide 85 test composites. The test work confirmed low variability in the deposit, and a conventional CIL process using sea water is estimated to recover 90% to 93% of the gold for a typical range of feed grades. Process design criteria and equipment sizing have been established by standard metallurgical test work for grindability and abrasion, grind size, gold recovery, leaching kinetics and carbon loading, reagent consumption, slurry rheology and thickener sizing.

Heap leach metallurgical test work on Tasiast sulphide ores commenced in 2009 and a second phase of test work in 2010 confirmed that fine crushing with high pressure grinding rolls (HPGRs) were beneficial for heap leaching. A third phase of heap leach test work was completed in 2011 on West Branch drill core samples totalling 6.8 tonnes and representing the main ore types up to 150 metres deep. The samples were crushed via

7 Mineral resources in the table are reported inclusive of mineral reserves and have an effective date of December 31, 2011. Mineral resources were classified in accordance with the 2010 CIM Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into NI 43-101, and have reasonable prospects of economic extraction as required by and defined in the CIM Standards. See also the applicable notes on pages 27-28 of this news release.

8 Includes CIL >1 g/t Au.

p. 7 Kinross reports 2011 fourth quarter and year-end results www.kinross.com HPGR and tested in 57 heap leach columns. Average gold recovery for all of the samples was 63%. A fourth phase of column test work, which will use up to 15 tonnes of new samples, is continuing to test deeper material and low grade areas of the deposit, with emphasis on finalizing the optimum crush size, reagent consumption and recovery from each zone.

Update on site infrastructure and mine enhancements: Expansion of the existing camp continues to support an increasing operations and construction workforce, with a build-out to 3,000 beds scheduled for completion in the first quarter of 2012. Construction of Phase 1 and 2 of the permanent camp has been initiated, including accommodation for 3,500, which is expected to be completed in the second half of 2012. Work has been initiated on expanding site utilities to accommodate the large construction effort. Development of an interim water pipeline and wellfield is now underway, with contractors mobilized for both pipeline construction and well drilling. Additions to the site-based power supply totaling 20 megawatts have been purchased, with installation at site expected in the fourth quarter of 2012. Infrastructure to support an expanding mining operation, including a truck shop, training centre, additional fuel storage and warehousing are all planned to proceed in 2012. All required permits are in place to support these ongoing activities.

Commissioning of the initial phase of the Tasiast mine expansion -- the expansion of the dump leaching facilities and construction of the ADR plant -- is now complete. The new facilities are expected to have a positive impact on 2012 production, with a total of 17 million tonnes of ore expected to be placed on the dump leach pads, compared with the 8.8 million tonnes mined and placed on pads in 2011. Gold production from dump leach operations is expected to increase by 280%, from 48,000 ounces in 2011 to approximately 134,000 ounces in 2012. The ADR plant will also serve the expanded processing operation.

Update on procurement: Procurement of equipment for the expanding mining operation is continuing. Tasiast has taken delivery of 12 Caterpillar 793 haul trucks, three Caterpillar 6060 hydraulic shovels and four SKF-12 Reedrill blasthole drills to support the expanding pre-production development activities at West Branch. Tasiast is scheduled to take delivery of additional fleet components in 2012, including 12 Caterpillar 793 trucks, two Caterpillar 6060 hydraulic shovels, and a second grouping of four SKF-12 Reedrill blasthole drills. Support equipment for the truck and shovel fleet are also scheduled for delivery in 2012. The increase in equipment will be supported by hiring and training efforts to support an increase in annual mine production from the 50 Mt mined in 2011 to a forecast of 96 Mt in 2012.

In 2012, capital expenditures for equipment procurement, site development, pre-production mining and continued engineering are forecast to be approximately $765 million, focused on infrastructure which is expected to support any of the processing options currently being assessed.

Dvoinoye

Key project development activities at Dvoinoye continue to proceed on schedule. The processing of Dvoinoye ore remains on target to commence in the second half of 2013.

Approximately 1,320 metres of underground development have been completed as of the end of the fourth quarter 2011, versus 1,200 metres planned for the year. The second entry point to the mine, the West Portal, has been collared and additional mining equipment is being transported to site to meet the accelerated rate of development for 2012.

The truck shop and water storage buildings have been delivered to site. The permanent camp, key equipment and supplies for the 2012 construction program are currently being assembled in the port of Pevek for delivery to site during the 2012 winter road campaign. Earthworks and roads for site facilities, including the permanent camp, are largely complete. Concrete foundation work for the truck shop and water storage building are complete. Concrete foundations are in progress for the permanent camp and the diesel fuel tank farm. The administration and warehouse building has been procured and fuel and water storage tanks have been fabricated. The temporary man camp is being expanded in order to satisfy accommodation requirements during the construction period. Construction of the all-season road between Dvoinoye and Kupol has commenced and is progressing well.

p. 8 Kinross reports 2011 fourth quarter and year-end results www.kinross.com

Paracatu ball mills

Engineering on the fourth Paracatu ball mill was 99% complete and procurement was at 98% as of the end of the fourth quarter 2011. Construction progress was 41%, with both concrete and structural steel approximately 90% and 75% complete, respectively. Pre-assembly of the mill was complete, and ball mill installation commenced in January. The project is expected to be operational in the third quarter of 2012.

The new flash flotation gold recovery process for the first two ball mills and the desulphurization process at Paracatu have been commissioned, and both plants are now ramping up.

Maricunga SART plant

Construction of the Maricunga SART (Sulphidization, Acidification, Recycling and Thickening) plant was re-started in late November. The SART project is targeted for completion in the first half of 2012.

New developments

Fruta del Norte

Negotiations with the Ecuadorean government on an enhanced economic package at FDN continue, as described above. Permitting and development work at site will continue in 2012, including construction of the site access road, upgrading of the existing camp, advancing work on the exploration decline, and exploration drilling.

Lobo-Marte

As outlined above, as part of the capital optimization process, the timeline for the Lobo-Marte feasibility study is being extended, and is now targeted for completion in 2013. During this time, the Company will work on project optimization, including a reevaluation of various project configurations, flowsheets, execution strategies and development scenarios. This will include a review of opportunities to optimize development of the project as part of the Company’s suite of assets in the Maricunga district, including opportunities for logistical efficiencies and consolidation of resources between operations. Permitting activities for Lobo-Marte continue, and approval of the Environmental Impact Assessment is targeted for the end of 2012. The Company is also viewing development of the Pompeya deposit at La Coipa as an important objective in the context of its Chilean development opportunities.

2011 Mineral Reserves and Mineral Resources Update

Please refer to the Mineral Reserve and Mineral Resource tables and corresponding notes located at the end of this news release.

Proven and Probable Mineral Reserves

Kinross’ total estimated proven and probable mineral reserves at year-end 2011 were 62.6 million ounces of gold, a net increase of 0.2 million ounces compared with year-end 2010, net of 2011 production. Notable changes by site included additions of 1.1 million ounces at Dvoinoye; 0.7 million ounces at Fort Knox, due to the addition of heap leach production; and 0.5 million ounces at Kupol, due to the 25% increase in Kinross ownership. At Tasiast, there was no material change in mineral reserves, as a feasibility study for the expansion project has not yet been completed.

Proven and probable silver reserves at year-end 2011 were estimated at 84.9 million ounces, a net decrease of 6.1 million ounces compared with year-end 2010, as a result of depletion of 12.9 million ounces at La Coipa, partially offset by an addition of 5.6 million ounces at Kupol due to the 25% increase in Kinross ownership.

Proven and probable copper reserves at year-end 2011 were estimated at 1.4 billion pounds, unchanged from year-end 2010.

p. 9 Kinross reports 2011 fourth quarter and year-end results www.kinross.com

Measured and Indicated Mineral Resources

Kinross’ total estimated measured and indicated mineral resources at year-end 2011 were 25.4 million ounces of gold, an increase of 7.7 million ounces compared with year-end 2010. The increase was primarily at Tasiast as a result of the conversion of 6.8 million ounces from inferred mineral resources to M&I mineral resources, and the addition of 2.2 million ounces directly to M&I mineral resources. These additions were offset somewhat by the upgrading of 1.1 million ounces at Dvoinoye from M&I mineral resources to proven and probable mineral reserves, and the upgrading of 0.7 million ounces at Fort Knox from M&I mineral resources to proven and probable mineral reserves. At Lobo-Marte, there was no change in mineral reserves and mineral resources, as a feasibility study for the project has not yet been completed.

Estimated measured and indicated silver resources decreased by 2.0 million ounces, to 23.6 million ounces, versus 25.6 million ounces at year-end 2010.

Inferred Mineral Resources

Kinross’ total estimated inferred gold resources at year-end 2011 were 20.1 million ounces, a reduction of 3.9 million ounces compared with year-end 2010. The net decrease in inferred mineral resources is primarily due to the conversion of 6.8 million gold ounces at the Tasiast project to M&I mineral resources, offset by the addition at Maricunga of 2.7 million ounces to inferred mineral resources.

Assumptions for Mineral Reserves and Resources

2011 year-end mineral reserves were estimated using a $1,200 per ounce gold price, a $30.00 per ounce silver price, and a $3.00 per pound copper price. 2010 year-end mineral reserves were estimated using a $900 per ounce gold price, a $14.00 per ounce silver price, and a $2.00 per pound copper price. 2011 year-end mineral resources were estimated using a $1,400 per ounce gold price, a $33.00 per ounce silver price, and a $3.75 per pound copper price. 2010 year-end mineral resources were estimated using a $1,000 per ounce gold price, a $15.00 per ounce silver price, and a $2.50 per pound copper price.

Exploration update⁹

Total exploration expenditures for the fourth quarter of 2011 were $67.3 million, including $37.5 million for expensed exploration and $29.8 million for capitalized exploration. Exploration expenditures for full-year 2011 totaled $217.0 million. Total exploration expenditures for 2011 included $104.7 million in expensed costs and $112.3 million in capitalized costs.

Kinross was active on more than 30 mine site, near-mine and greenfields initiatives in the fourth quarter of 2011, with drilling across all projects totalling 169,499 metres, for a full-year total of 792,030 metres. Highlights of the fourth quarter exploration program include:

Tasiast: A summary of activity at Tasiast is included in the Project update section of this news release.
La Coipa: 8,515 metres of drilling were completed at La Coipa during the fourth quarter, with the majority of work concentrated on the CMLC Joint Venture property. Full-year drilling totaled 33,959 metres. The new discovery at Pompeya is being aggressively explored with two diamond and two RC drills, all in operation at year-end. Positive results continue to expand the currently defined zone of mineralization. Gold bearing zones continue to be observed in oxidised, high sulfidation-style, vuggy quartz ledges, similar to those at the nearby Ladera Farellon deposit. Drilling in 2012 will continue to focus on strike extensions, with a shift towards infill drilling during the second quarter in support of an initial mineral resource estimation.

9 The technical information about the Company’s exploration activities contained in this news release has been prepared under the supervision of, and verified and approved by, Dr. Glen Masterman, an officer of the Company who is a qualified person within the meaning of NI 43-101. The Company’s normal data verification procedures have been used in collecting, compiling, interpreting and processing the data presented. Independent data verification has not been performed.

p. 10 Kinross reports 2011 fourth quarter and year-end results www.kinross.com

Chirano: A total of 22 exploration holes and 14 resource holes (7,048 metres) were drilled at Akwaaba, Akoti South, Tano-Paboase, Obra, Mamnao South and Mamnao Central. Four drill rigs were active at quarter-end, completing a total of 27,619 metres for the year. Drilling in 2012 will continue to expand upon encouraging results received in 2011.
Fruta del Norte/Condor Project: Surface sampling and prospecting continued in the Condor district in Q4, with a focus on the Rio Blanco target and adjacent satellite anomalies on the Princesa concession, nine kilometres and 10 kilometres from FDN, respectively. An airborne geophysical survey was initiated during December 2011 and is currently in the final stages of completion. Three holes were drilled at FDN north to obtain clearer definition of the northern limits of the ore body. Results of the drilling will be incorporated in the 3D geological model.
Kupol: Fourth quarter drilling totaled 10,449 metres at Kupol, for a total of 41,673 metres in 2011. Exploration continued with resource conversion at the Northern Extension Zone, as well as deep drilling at the 650 Zone, testing for possible mineralization on the southern end of known mineralization. Results from the 2011 programs were modeled throughout the quarter, and 0.25 million ounces were converted to proven and probable mineral reserves. Other targets tested included the TB2, Star trend (RAB drilling: 3,286 metres), Fevral West and Avgusteishiy North.
Dvoinoye: Infill drilling was completed on Zone 37 during the fourth quarter of 2011, as well as the continued mineral resource upgrade program, for a total of 2,972 metres drilled in Q4 and 32,869 metres in the full year of 2011. Geological modelling and mineral resource estimation were completed to support the feasibility study and resulted in 1.1 million ounces of gold upgraded to proven and probable mineral reserves. Additional targets have been generated parallel to Zone 37 as indicated by the new geologic model that will be tested in 2012. Results from the surface exploration program at Vodorazdelnaya continued to be received and analyzed throughout the quarter.
Lobo-Marte: No drilling was completed at Lobo-Marte in the fourth quarter. Construction of a supplemental exploration camp was completed to support exploration activities on various district targets. Drilling commenced in January with a primary focus on the Valy prospect, following up on positive drill results returned from Q2 2011 drill programs.
Fort Knox, Kettle River-Buckhorn and Round Mountain: Phase 8 drilling at Fort Knox was completed early in the fourth quarter, along with year-end mineral resource estimation resulting in a 0.7 million ounce upgrade to proven and probable mineral reserves. Rotary Air Blast drilling on the Gil-Sourdough project was completed during the quarter, with 985 metres and an additional nine holes drilled by quarter-end. Drilling at Fort Knox totaled 24,625 metres for the year. A total of 1,915 metres of core drilling was completed at Kettle River in the fourth quarter (21,568 metres for the year), and all 2011 drill results have been received. Round Mountain exploration continued through quarter-end, with 10,250 metres of RC and core drilling completed (42,813 metres for the year). Large step-out holes are in progress to test the lateral extent of the Western Extension Zone, and the potential for high grade feeder mineralization.
White Gold/Ross: A total of 940 metres of drilling was completed at the White Gold project throughout Q4 before the field season came to an end. Year-end drilling totaled 13,237 metres for both the White and Ross projects for 2011. Encouraging geochemistry and trenching results on regional targets have indicated further district potential, and current targeting and geologic modeling of the property will assess the scope of the 2012 exploration program.

In 2012, the Company’s exploration efforts will focus on delivering mineral resource growth at Kinross’ development projects (Tasiast, Lobo-Marte, Fruta del Norte and Dvoinoye) and expanding mineral reserves with particular emphasis at La Coipa, Kupol and Kettle River. Kinross will continue its strategy of upgrading its exploration portfolio, focusing on discovery of high value resource opportunities throughout the Americas, Russia and West Africa.

Total 2012 budgeted exploration expenditure is approximately $220 million, of which approximately $35 million is expected to be capitalized and approximately $185 million is expected to be expensed. Approximately $80 million is expected to be allocated to Tasiast, with work focusing on seeking out new ore shoots along the eight kilometre

p. 11 Kinross reports 2011 fourth quarter and year-end results www.kinross.com mine corridor, and on satellite ore bodies in the Tasiast district.

Dividend

Based on the Company’s solid operating performance and strong cash flow in 2011, the Board of Directors has declared a dividend of $0.08 per common share, a 33% increase from the previous dividend paid on September 30, 2011.The dividend is payable on March 31, 2012 to shareholders of record at the close of business on March 23, 2012. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes.

Goodwill impairment

As required by International Financial Reporting Standards (IFRS), the Company has completed its annual assessment of the carrying value of goodwill for all properties. The Company’s goodwill impairment testing methodology is described in Note 3(ix) of the December 31, 2011 financial statements. As a result of this review, as disclosed in Note 8 to the December 31, 2011 financial statements and in the 2011 MD&A, an aggregate noncash goodwill impairment charge of $2,937.6 million was recorded for the Tasiast and Chirano assets acquired in the Red Back acquisition. The impairment charge was a result of changes in market conditions, including industry-wide increases in capital and operating costs, a decline in industry-wide valuations as at year-end, and the Company’s growing understanding of the Tasiast project parameters, including its analysis of a draft mine plan.

The Tasiast project represents $2,490.1 million and Chirano $447.5 million of the non-cash goodwill impairment charge recorded. A number of market factors are taken into account in determining fair value, including gold price. The Company has used a long-term gold price estimate of $1,250 per ounce as at December 31, 2011.

The Company acquired Red Back Mining Inc. in an all-share transaction in which the Company issued 416.4 million common shares, 25.8 million common share purchase warrants, and 8.7 million fully-vested replacement options. Under IFRS, the Company is required to value the acquisition based on the Company’s share price on the date the transaction closes, and not the share price on the announcement date. The Company’s share price increased $2.71, from $15.73 to $18.44 per share, during the period between the announcement date and the closing date, thereby substantially increasing the goodwill value that was recorded on finalization of the purchase price allocation under IFRS. However, the share exchange ratio upon which the transaction was negotiated and approved did not change as a result of the finalization of the purchase price allocation, and, accordingly, the number of Kinross shares issued also did not change.

Completion of Kupol financing

On December 22, 2011, Kinross announced that the $200 million non-recourse loan to Chukotka Mining and Geological Company (CMGC) from a group of international financial institutions has been funded. The nonrecourse loan carries a term of five years, with annual interest of LIBOR plus 2.5%.

Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the Cautionary Statement on Forward-Looking Information located on page 14 of this news release.

As previously announced on January 16, 2012, Kinross expects to produce approximately 2.6-2.8 million gold equivalent ounces in 2012. Production cost of sales per gold equivalent ounce is expected to be in the range of $670-715 for 2012.

Capital expenditures related to growth projects in 2012 are now forecast to be approximately $1.0 billion, compared with the previous forecast of $1.3 billion, with approximately $765 million related to Tasiast, $130 million to Dvoinoye, $50 million to Lobo-Marte, and $80 million to FDN. At Tasiast, major forecast expenditures include approximately $155 million for mining equipment and stripping, $80 million for infrastructure, $70 million for tailings dam construction, $60 million for the Phase 2 power plant, $70 million for construction of the permanent camp, and $80 million for contract services.

p. 12 Kinross reports 2011 fourth quarter and year-end results www.kinross.com

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