K.TO · 2011-02-16

Financial Statements and MD&A Kinross reports 2010 fourth quarter and year-end results 2010 revenue exceeds $3 billion, up 25%; adjusted net earnings per share up 32% Total gold reserves increase by 23%; Tasiast reserves and resources grow significantly

Drill Results Resource Estimates Financials

For more information, please see Kinross’ 2010 year-end Financial Statements and MD&A at www.kinross.com NEWS RELEASE Kinross reports 2010 fourth quarter and year-end results 2010 revenue exceeds $3 billion, up 25%; adjusted net earnings per share up 32% Total gold reserves increase by 23%; Tasiast reserves and resources grow significantly

Toronto, Ontario – February 16, 2011 – Kinross Gold Corporation (TSX: K, NYSE: KGC) today announced its results for the fourth quarter and year ended December 31, 2010.

(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 13 of this news release. All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

Highlights

Production¹ in the fourth quarter of 2010 was 676,635 gold equivalent ounces, a 10% increase over Q4 2009. For full-year 2010, gold equivalent production was 2,334,104 ounces, in line with previously announced guidance.
Revenue for the quarter was a record $920.4 million, compared with $699.0 million in the fourth quarter of 2009, an increase of 32%, with an average realized gold price of $1,333 per ounce sold compared with $1,094 per ounce sold in Q4 2009. Revenue for the full-year 2010 was a record $3,010.1 million, a 25% increase over full-year 2009.
Cost of sales per gold equivalent ounce² was $551 for Q4, which includes a Red Back Mining purchase accounting increase of $13, compared with $437 for Q4 2009. Cost of sales per ounce sold for full-year 2010 was $508, inclusive of a full year Red Back purchase accounting increase of $5, compared with $437 for full-year 2009. Full-year cost of sales per ounce was in line with previously stated guidance. Kinross’ attributable margin per ounce sold³ was a record $782 in Q4, a year-over-year increase of 19%. The attributable margin per ounce sold for full-year 2010 was $683, a 29% increase over 2009.
Adjusted operating cash flow⁴ for Q4 was $332.7 million, a 14% increase over Q4 2009, and $1,091.2 million for the full year, a 16% increase over full-year 2009. Adjusted operating cash flow per share was $0.29 in Q4, versus $0.42 Q4 2009, and $1.32 per share for full-year 2010, compared with $1.36 for full-year 2009.
Adjusted net earnings⁴ were $144.7 million, or $0.13 per share, in Q4, compared with $148.6 million, or $0.21 per share, for Q4 2009. Adjusted net earnings for full-year 2010 were $478.8 million, or $0.58 per share, compared with $304.9 million, or $0.44 per share, for full-year 2009. Reported net earnings were $210.3 million, or $0.19 per share in Q4, compared with $235.6 million, or $0.34 per share, for Q4 2009. Full year reported net earnings were $771.6 million, or $0.94 per share, compared with $309.9 million, or $0.45 per share for full-year 2009. Earnings were reduced by additional exploration expenditures of approximately $23 million at Tasiast, and by the timing of year-end metal shipments, which deferred sales of approximately 30,000 ounces of Q4 2010 gold production to Q1 2011.
Kinross forecasts 2011 production of 2.5-2.6 million gold equivalent ounces at an average cost of sales per gold equivalent ounce of $565 - 610.
Proven and probable mineral reserves as of December 31, 2010 were 62.4 million gold ounces, an 11.5 million ounce, or 23% increase year-over-year.
Proven and probable mineral reserves at Tasiast increased to 7.6 million gold ounces, measured and indicated mineral resources were 2.1 million gold ounces and inferred mineral resources increased to 8.6 million gold ounces. The Company has completed a scoping study for the Tasiast expansion project based on a 16-year life for the expanded project with average annual production of approximately 1.5 million ounces at an average gold grade of approximately 2 g/t for the first eight full years of the expanded project.
Kinross has declared its first proven and probable gold reserves of 6.8 million ounces at Fruta del Norte (FDN). The Company has prepared a pre-feasibility study and technical report for FDN that estimates average annual production of 410,000 gold ounces over the 16-year life-of-mine. FDN permitting is on schedule to support the project development timeline.
The Company has completed a scoping study for Dvoinoye that contemplates processing higher-grade Dvoinoye ore at the Kupol mill, and an increase in Kupol throughput from 3,000 to 4,000 tonnes per day.
The Board of Directors declared a dividend of $0.05 per share payable on March 31, 2011 to shareholders of record on March 24, 2011.

1 Unless otherwise stated, production figures in this release are based on Kinross‟ 75% share of Kupol production and 90% of Chirano production.

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 and Chirano sales to a 10% minority interest holder.

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 measures is located on page 14 of this news release.

www.kinross.com

CEO Commentary

Tye Burt, President and CEO, made the following comments in relation to fourth quarter and year-end 2010 results:

“Our aggressive exploration and technical work since acquiring Tasiast confirms our view of its potential to become one of the world’s great gold mines. Gold grades are higher than expected in the early years of production, the deposit continues to be open, reserves and resources have grown significantly, and we’ve completed a scoping study that helps to define the project’s impressive magnitude. Tasiast will be a cornerstone asset for Kinross as its production expands to 1.5 million ounces, while averaging down company-wide production costs.

“In 2010, Kinross’ proven and probable gold reserves increased by 23%. Our production reached a new record with strong performance from our mines, and for the first time, annual revenue exceeded $3 billion while adjusted operating cash flow⁴ exceeded $1 billion. Margins averaged $683 per ounce in 2010, an increase of 29% yearover-year, compared with a 23% year-over-year increase in the average realized gold price per ounce.

“In 2011, with a full year of output from our West African mines, we forecast production will increase to 2.5–2.6 million gold equivalent ounces, while we also expect higher costs as a result of increased energy and labour costs, and lower average grades. By 2015, we expect production to grow to 4.5-4.9 million ounces, as our suite of new projects start up in 2013 and 2014. With new studies completed at Tasiast, FDN, Lobo-Marte, and Dvoinoye, we are making significant and steady progress advancing the projects that give Kinross the best growth profile among senior gold producers.”

Financial results

Summary of financial and operating results

Three months ended Year ended

December 31, December 31,

(dollars in millions, except per share and per ounce amounts)	2010	2009	2010	2009
Total(a)gold equivalent ounces(b)- produced	734,126	668,761	2,527,695	2,470,042
Total gold equivalent ounces - sold	696,355	636,601	2,537,175	2,487,076
Attributable(c)gold equivalent ounces - produced	676,635	613,858	2,334,104	2,238,665
Attributable(c)gold equivalent ounces - sold	647,494	586,543	2,343,505	2,251,189

Metal sales $ 920.4 $ 699.0 $ 3,010.1 $ 2,412.1 Cost of sales (excludes accretion and reclamation expense, depreciation, depletion and amortization) $ 374.3 $ 271.0 $ 1,255.4 $ 1,047.1 Accretion and reclamation expense $ 13.4 $ 5.4 $ 29.0 $ 19.3 Depreciation, depletion and amortization $ 159.2 $ 109.4 $ 517.5 $ 447.3 Operating earnings $ 240.2 $ 226.2 $ 867.2 $ 645.9 Net earnings (loss) $ 210.3 $ 235.6 $ 771.6 $ 309.9 Basic earnings (loss) per share $ 0.19 $ 0.34 $ 0.94 $ 0.45 Diluted earnings (loss) per share $ 0.18 $ 0.34 $ 0.93 $ 0.44 Adjusted net earnings ^(d) $ 144.7 $ 148.6 $ 478.8 $ 304.9 Adjusted net earnings per share^(d) $ 0.13 $ 0.21 $ 0.58 $ 0.44 Cash flow provided from (used for) operating activities $ 268.3 $ 306.5 $ 968.4 $ 785.6 Adjusted operating cash flow ^(d) $ 332.7 $ 292.2 $ 1,091.2 $ 937.2 Adjusted operating cash flow per share ^(d) $ 0.29 $ 0.42 $ 1.32 $ 1.36 Average realized gold price per ounce $ 1,333 $ 1,094 $ 1,191 $ 967 Consolidated cost of sales per equivalent ounce sold ^(e) $ 537 $ 426 $ 495 $ 421 Attributable^(c) cost of sales per equivalent ounce sold ^(f) $ 551 $ 437 $ 508 $ 437 Attributable cost of sales per ounce sold on a by-product basis ^(g) $ 494 $ 383 $ 462 $ 388

(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 2010 was 51.93:1, compared with 62.54:1 for the fourth quarter of 2009; year to date 2010 was 60.87:1, compared with 66.97:1 for 2009.

(d) "Adjusted net earnings", "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 in this news release.

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

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

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

p. 2 Kinross reports 2010 fourth quarter and year-end results www.kinross.com Kinross produced 676,635 attributable gold equivalent ounces in the fourth quarter of 2010, a 10% increase over the fourth quarter of 2009, mainly due to improved performance at the Paracatu expansion plant, and the addition of new production from Tasiast and Chirano. Full year production was 2,334,104 gold equivalent ounces, in line with previously stated guidance, and a 4% increase over full-year 2009.

Cost of sales per gold equivalent ounce for Kinross operations was $551, compared with $437 for the fourth quarter of 2009, an increase of 26%. Cost of sales per gold equivalent ounce for full-year 2010 was $508, in line with previously stated guidance, compared with $437 for full-year 2009. Cost of sales per gold equivalent ounce on a by-product basis was $494 in Q4, compared with $383 in Q4 2009. Cost of sales per gold equivalent ounce on a by-product basis was $462 for the full year, compared with $388 for full-year 2009.

Revenue from metal sales was $920.4 million in the fourth quarter of 2010, versus $699.0 million during the same period in 2009, an increase of 32%. The average realized gold price was $1,333 per ounce in Q4, compared with $1,094 per ounce for Q4 2009, an increase of 22%. 2010 full-year revenue was a record $3,010.1 million, compared with $2,412.1 million for full-year 2009, an increase of 25%. The average realized gold price per ounce was $1,191 for full-year 2010, versus $967 per ounce for full-year 2009, an increase of 23%.

Kinross’ margin per gold equivalent ounce sold was a record $782 for the quarter, an increase of 19% compared with the fourth quarter of 2009. Full year margin per gold equivalent ounce sold was $683 compared with $530 for full-year 2009, a 29% increase.

Adjusted operating cash flow⁴ was $332.7 million for the quarter, or $0.29 per share, compared with $292.2 million, or $0.42 per share, for Q4 2009. Adjusted operating cash flow for full-year 2010 was $1,091.2, or $1.32 per share, compared with $937.2 million, or $1.36 per share, for full-year 2009. Cash, cash equivalents and short term investments were $1,466.6 million at December 31, 2010 compared with $632.4 million at December 31, 2009.

Adjusted net earnings⁴were $144.7 million, or $0.13 per share for Q4 2010, compared with $148.6 million, or $0.21 per share, for Q4 2009. Adjusted net earnings were $478.8 million, or $0.58 per share, for full-year 2010, compared with $304.9 million, or $0.44 per share, for full-year 2009.

Reported net earnings were $210.3 million, or $0.19 per share, for Q4 2010, compared with $235.6 million, or $0.34 per share, for Q4 2009. Reported net earnings were $771.6 million, or $0.94 per share, for full-year 2010, compared with $309.9 million, or $0.45 per share, for full-year 2009.

Capital expenditures were $236.5 million for Q4 2010, compared with $137.5 million for the same period last year. Capital expenditures totalled $563.7 million for full-year 2010, slightly below guidance, compared with $481.2 million the previous year.

Operating results

Mine-by-mine summaries of fourth quarter and full-year 2010 operating results may be found on pages 16 and 20 of this news release. Highlights include the following:

Full-year production at Paracatu was approximately 482,000 gold equivalent ounces, a 36% increase over  2009, largely due to significantly improved performance of Plant 2. Fourth quarter 2010 production at Paracatu was slightly lower than in the third quarter of 2010, but full-year production remained well ahead of guidance.

At Kupol, fourth quarter and full year production were lower compared to 2009 due to the expected year-  over-year decline in grades. However, mine and mill performance were strong during the quarter and production for the full year was ahead of guidance. Gold equivalent ounces sold during the fourth quarter were lower than ounces produced due to the timing of shipments.

In Chile, fourth quarter 2010 mine production was slightly higher and per ounce cost of sales was lower than  in the previous quarter, due largely to improved performance at La Coipa, where enhancements to the filter

p. 3 Kinross reports 2010 fourth quarter and year-end results www.kinross.com plant began to show results in the fourth quarter. As a result, the full-year cost of sales per ounce for Chile was lower than the revised Chile guidance provided in the third quarter 2010 news release.

Fourth quarter production and costs at Maricunga were negatively impacted by performance issues related to slower than expected gold release, but by year-end, heap leach performance was showing improvement, which has carried over into significantly improved performance in January 2011.

Full-year production at Fort Knox was approximately 350,000 gold equivalent ounces, a 33% increase over  2009, due to additional production from the new heap leach. Fourth quarter production was lower than third quarter production, as less ore is stacked on the heap during winter months, which is also expected to affect production in the first quarter of 2011. As planned, production for the full-year 2011 at Fort Knox is expected to be less than 2010 due to lower grades, as most of the mining activity will be focused on capitalized stripping, and as a result, the majority of ore processed will be sourced from stockpiles.

Fourth quarter production at Tasiast was approximately 48,000 gold equivalent ounces. Production was  impacted negatively during the quarter by leaks in one of the two water supply lines, but this situation was resolved in early 2011 and full water supply to the site has been restored.

Chirano had a strong fourth quarter, with production of approximately 77,000 ounces.

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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 13 of this news release.

Kinross expects to increase its annual production from current levels to approximately 4.5-4.9 million ounces by 2015 through its suite of growth projects at existing mines and new development projects.

Growth projects at sites

Tasiast expansion project

Kinross ramped up drilling activities at the Tasiast site in Mauritania through the fourth quarter 2010. As at December 31, 2010, proven and probable mineral reserves at Tasiast were 7.6 million ounces, measured and indicated mineral resources were 2.1 million ounces, and inferred mineral resources were 8.6 million ounces.⁵ With a total of 25 drills currently active, the Company is continuing its aggressive exploration and engineering drilling campaign at Tasiast in 2011.

Kinross has completed a scoping study for the Tasiast expansion project, based on a 16-year mine plan for the expanded project. During the first eight full years of operation, average annual production is expected to be approximately 1.5 million gold equivalent ounces at an average cost of sales per ounce of approximately $480- 520, with an expected average gold grade of approximately 2 g/t, and expected average recoveries of 93%.

The proposed open pit mine will feed both the existing 8,000 tonne per day plant and an expansion plant. The proposed expansion plant is a conventional gold cyanidation plant, consisting of primary crushing, grinding, gravity separation, carbon-in-leach cyanidation and cyanide destruction, with a design throughput of approximately 60,000 tonnes per day.

5 In its mineral reserves and mineral resources estimates, Kinross reports mineralization that is above a set cut-off grade and confined within a defined mining shape, using the assumptions outlined on page 26 of this news release. Red Back Mining’s historical mineral reserves and mineral resource estimates for the Tasiast resource included all qualifying mineralization that appeared above a set cut-off grade, but was not confined to a defined mining shape. For comparative purposes, applying this Red Back methodology to current drill results and mineral resource estimates at Tasiast would result in an additional of 64,734 K tonnes of inferred mineral resource with a grade of 1.16 grams per tonne, for an additional 2.412 million ounces of gold.

p. 4 Kinross reports 2010 fourth quarter and year-end results www.kinross.com The scoping level pre-commissioning capital cost estimate for the process plant, initial mine fleet equipment and associated infrastructure is approximately $1.8 billion, plus a contingency of approximately $400 million. Post start-up capital is expected to include an estimated $500 million in additional fleet purchases to sustain full mining and stripping activity. The project team continues to refine its estimates for operating costs, which are expected to be included in the project feasibility study, scheduled for completion in mid-2011.

An international Engineering, Procurement, Construction Management (EPCM) joint venture firm has been retained and is proceeding with the project feasibility study and basic engineering . Kinross has appointed a Regional Vice-President for its West Africa region and a Project Director for the Tasiast project.

Key processing equipment for the expanded plant has now been ordered, including one SAG mill and two ball mills, wrap-around motors for the mills, and three crushers. The Company is currently in advanced negotiations regarding the purchase of trucks and shovels for the expanded mining fleet.

The Company has had initial meetings with key government ministries concerning project permitting, and a permitting strategy has been developed to support the project timeline. Pending approval of necessary Environmental Impact Assessments for the expansion project, construction is expected to start in mid-2012, with operations expected to commence early in 2014.

Dvoinoye development

A scoping study on the Dvoinoye project was completed in January 2011. The scoping study is based on developing Dvoinoye as an underground mine with a mine life of at least eight years, with an average output of approximately 900 tonnes per day from 2013 through 2020. Dvoinoye feed will be processed at the Kupol mill and is expected to allow an increase in mill throughput to approximately 4,000 tonnes per day, requiring only minor modifications to the mill. Batch processing is proposed, using one week of Dvoinoye feed and three weeks of Kupol feed per month. The average gold grade of Dvoinoye feed is expected to be approximately 17.5 g/tonne. Initial capex for the project is estimated to be approximately $300 million. Processing of Dvoinoye ore at Kupol is targeted to commence in the second half of 2013.

Permitting is proceeding as planned, and as previously disclosed, the five-year exploration plan for Dvoinoye, including an exploration decline, has been approved by government authorities. Exploration drilling is expected to continue at Dvoinoye in 2011 to further define resources and reserves and assist with engineering and hydrology studies in support of a pre-feasibility study, scheduled for completion in the third quarter of 2011, and a feasibility study, scheduled for completion in the first quarter of 2012. Key project development milestones for 2011 include construction of the mine portal, exploration decline development, and construction of additional facilities and infrastructure.

Paracatu third ball mill

Construction for the third Paracatu ball mill is proceeding on schedule and on budget, with construction 75% complete and the project at 82% completion. The ball mill has been mounted on its foundations, structural steel is substantially erected, and electrical equipment installation is well advanced. The project remains on target for commissioning in the first half of 2011.

Paracatu fourth ball mill

An EPCM contract is being finalized for the fourth Paracatu ball mill with the same firm completing the third ball mill. Engineering on the project is well advanced. The fourth ball mill has been ordered and is expected to be delivered by mid-year, and an additional shovel and mine truck have been purchased. Construction activities are expected to commence mid-2011. The project remains on target to be operational in the first half of 2012.

Maricunga projects

Engineering on the Maricunga SART (Sulphidization, Acidification, Recycling and Thickening) plant is complete and construction commenced late in the fourth quarter of 2010. The plant remains on schedule to be operational

p. 5 Kinross reports 2010 fourth quarter and year-end results www.kinross.com in late 2011. Once the SART plant begins operation, additional copper production at Maricunga is expected to result in a cost of sales credit of approximately $40 per ounce.

Major work on upgrades to the ADR (Adsorption, Desorption and Refining) plant at Maricunga has been completed on schedule, with commissioning of the new kiln in December 2010. Additional modifications to the adsorption and elution sections are expected to be completed early in the second quarter of 2011.

New Developments

Lobo-Marte

Kinross has completed an update to its earlier pre-feasibility study on Lobo-Marte. The updated study is based on a mine life of approximately 10 years and confirms the viability of a 47,000 tonne per day open pit heap leach operation incorporating SART technology.

The updated study estimates an average annual production of approximately 350,000 ounces per year, with average operating costs of $11.00-11.50 per tonne. The average gold grade over the life of mine is estimated to be 1.17 g/t and average recovery 60-70%. The average cost of sales is estimated to be approximately $500 per ounce, or approximately $450 per ounce net of a copper credit of approximately $50 per ounce, based on a copper price of $2.50 per pound. Capital expenditures are estimated to be approximately $700 million, versus the earlier pre-feasibility estimate of $575-650 million. The increase is due to enhancements to the site layout and facilities, including installation of an overland conveyor and a conveyer loading system for the leach pad, which optimizes layout and allows for potential future expansion.

Kinross received approval for an additional 20,000 metres of drilling at Lobo-Marte late in the fourth quarter of 2010. The Company is proceeding with further infill and geotechnical drilling in support of the project feasibility study, which is scheduled for completion in mid-2011. Hydrogeological, geotechnical and infill drilling associated with the previous permit was completed in the fourth quarter, with condemnation drilling expected to be completed in the second quarter of 2011. The Company expects to complete an Environmental Impact Assessment (EIA) for the project in mid-2011. The project remains on target to commence commissioning in 2014.

Fruta del Norte

Kinross has prepared a pre-feasibility study and technical report for Fruta del Norte (FDN), incorporating reserve and resource information as of year-end 2010. Proven and probable mineral reserves are estimated at 6.8 million ounces of gold and 9.1 million ounces of silver. The study is based on a mine life of approximately 16 years, with life of mine gold production of 6.3 million ounces and silver production of 6.7 million ounces.

Annual production is expected to average approximately 410,000 gold equivalent ounces per annum over the life of mine. The average gold grade is expected to be 8.07 g/t, and the average silver grade is expected to be 10.89 g/t, with an expected average recovery rate of 93% for gold and 74% for silver. The average cost of sales is estimated to be approximately $370 per gold equivalent ounce.

Plant commissioning is expected to begin at a rate of approximately 2,500 tonnes per day, processing nonrefractory ore, and is expected to ramp up over a period of three years to a rate of 5,000 tonnes per day with the addition of a pressure oxidation (POX) circuit, 18 months after commissioning, which will allow the processing of refractory ore. The initial capital cost for Phase I is expected to be approximately $700 million, with additional capital expenditures of approximately $400 million expected in Phase 2 with the addition of the POX circuit.

The Company obtained a number of permits to advance work on FDN in 2010. In addition, in early January 2011, Kinross obtained its environmental licence to construct the underground exploration decline at La Zarza, the location of the FDN orebody. Construction of the decline is expected to commence in the second quarter of 2011 with surface preparatory work commencing in the first quarter. Future drilling at FDN will target an extension of the ore body at depth and along strike and upgrading existing resources.

The Company expects to submit EIAs to build and operate the mine and processing facilities by mid-2011. Kinross expects to complete a feasibility study in the second half of 2011, and is targeting start up in late 2014.

p. 6 Kinross reports 2010 fourth quarter and year-end results www.kinross.com Throughout 2010, the Company maintained informal dialogue with the Ecuadorian government authorities respecting the negotiation process for the FDN exploitation contract. Formal contract negotiations are expected to begin in the first half of 2011, following the agreement of the Company and government to enter into the economic evaluation phase of the project.

Cerro Casale

Barrick Gold Corporation will provide an update on the Cerro Casale project in its Q4 and year-end release, scheduled to be issued on February 17.

2010 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 2010 increased by 11.5 million ounces to 62.4 million ounces of gold, a 23% increase over year-end 2009. The net increase is due to the acquisition of Red Back Mining which added 10.0 million ounces to mineral reserves through the addition of the Tasiast (7.6 million ounces) and Chirano (2.4 million ounces) properties. Mineral reserves of 6.8 million ounces were also reported for the first time at the Fruta del Norte development property upon completion of the pre-feasibility study. This addition offset the 5.8 million ounce decrease at Cerro Casale from the sale of 25% of the project.

In 2010, depletion from production at all operations totaled 2.4 million ounces.

The chart below summarizes changes to proven and probable gold reserves at year-end 2010 compared to yearend 2009.

Proven and probable silver reserves at year-end 2010 decreased by 12.0 million ounces, or 12% to 91.0 million ounces, versus 103 million ounces at year-end 2009 as a result of depletion at La Coipa and Kupol.

p. 7 Kinross reports 2010 fourth quarter and year-end results www.kinross.com Proven and probable copper reserves at year-end 2010 decreased to 1.4 billion pounds primarily due to the sale of half our interest in the Cerro Casale project.

Measured and Indicated Mineral Resources

Kinross’ total measured and indicated (M&I) mineral resources at year-end 2010 increased by 1.1 million ounces of gold, or 7%, to 17.7 million ounces versus 16.6 million ounces at year-end 2009. Silver measured and indicated resources increased marginally by 0.2 million ounces, or 1%, to 25.6 million ounces versus 25.4 million ounces at year-end 2009.

Inferred Mineral Resources

Kinross’ total inferred mineral resources at year-end 2010 increased by 7.8 million ounces of gold, or 48%, to 24.0 million ounces versus 16.2 million ounces at year-end 2009. The net increase in inferred mineral resources is due primarily to the addition of 8.6 million gold ounces at the Tasiast project.

Assumptions for Mineral Reserves and Resources

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. 2009 year-end reserves were estimated using an $800 per ounce gold price, $12.50 per ounce silver price, and a $1.75 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. 2009 year-end resources were estimated using an $875 per ounce gold price, a $13.75 per ounce silver price, and a $2.25 per pound copper price.

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.

Exploration update

Exploration and business development expenses for full-year 2010 were $142.7 million, compared with $72.5 million for full-year 2009. Of the total exploration and business development expense, expenditures on exploration totalled $54.9 million and $120.1 million for the quarter and year, respectively. Capitalized exploration expenses totalled $7.1 million in 2010.

Kinross was active on 44 mine site, near-mine and greenfields projects in 2010 with a total of 375,084 metres drilled (353,547 metres expensed and 21,537 metres capitalized). Gold reserves increased by 11.5 million ounces during the year. Details are outlined in the 2010 Mineral Reserves and Resources update above. Highlights of the 2010 exploration program include the following:

 Tasiast: Eleven drills were added to the project in Q4 2010. Three additional drills were contracted at the beginning of 2011 bringing the total number of drills at Tasiast to 25. Approximately 64,000 metres were drilled in the West Branch area targeting deeper extensions of the Greenschist Zone. Drilling also focused on extending Greenschist-style mineralization closer to surface. A further 22,000 metres of shallow reverse circulation drilling was completed on regional geochemical and geophysical targets. A sample preparation facility was installed in the Mauritanian capital of Nouakchott to expedite sample analytical timelines.

Dvoinoye: Three core rigs were active during the fourth quarter, resulting in the completion of over 15,000  metres of drilling since work that commenced in the summer. Drilling successfully added 1.1 million ounces of NI 43-101 compliant indicated mineral resources and 0.4 million ounces of NI 43-101 compliant inferred mineral resources.

Chirano: Five core rigs were active at Chirano in Q4 2010 completing 12,088 metres. Drilling was focused at  Akoti North, Tano and on a regional target called Kolua. Three drills continued testing extensions of

p. 8 Kinross reports 2010 fourth quarter and year-end results www.kinross.com mineralized intercepts encountered in earlier drilling at Akoti. A single drill was deployed to Kolua, 4 km south of the plant, to test the size potential of mineralization encountered in previous drilling. A further 2,000 metres are planned to fully evaluate the target.

La Coipa: Over 27,000 metres of drilling was completed for the year at La Coipa. Part of the drilling focused  on the Can Can and Portezuelo targets to upgrade resource classification. Drilling encountered encouraging silver results at Puren Sur, Pompeya and Puren West, warranting follow-up early in the summer of 2011.

Lobo-Marte: Three holes (1,532 metres) were completed at the Valy target five kilometres south of Lobo.  Porphyry-style gold mineralization characteristic of Lobo-Marte grades was encountered in the first hole. Drilling is continuing in 2011 with results awaited for other completed holes.

Fruta del Norte/Condor Project: Over 22,000 metres of infill drilling was completed and resulted in the  conversion of 6.8 million ounces to mineral reserves by year-end. A number of environmental permits were granted on exploration licenses surrounding FDN, allowing exploration work to recommence. Reinterpretation of the geologic model at FDN generated a number of new targets in the vicinity of the main FDN ore body.

Kupol: One hundred and fifty-three holes were drilled at Kupol in 2010 for 49,270 metres. Definition drilling at  the 650 and North Extension zones converted 0.4 million ounces of gold resources to gold reserves, replacing the majority of attributable 2010 production.

 White Gold: Compilation and interpretation of final results from the 2010 field season continued during the fourth quarter. Planning for the 2011 field season was well underway by year-end with field work scheduled to commence in May.

Generative projects: New joint venture agreements completed in 2010 include Laurentian Goldfields



(Goldpines, western Ontario), Millrock Resources (Humble project, Alaska), Quebrada Valiente (Codelco) and the Camacho and Pirelli projects in Mexico (Fortunate Sun Mining).

In 2011, the Company’s exploration efforts will focus on pursuing a strategy of upgrading the asset portfolio through organic growth. Key initiatives include expansion and upgrading of mineral resources and mineral reserves at Tasiast, Dvoinoye and White Gold, along with advancing exploration work at key brownfields targets in the Lobo- Marte, Vodorazdelnaya, La Coipa, Fruta del Norte, Kupol and Buckhorn districts. Greenfields and generative exploration will continue to focus in West Africa, Alaska, Yukon Territory, Mexico and Chukotka.

Exploration expenditures in 2011 are forecast to be $175 million, with expensed exploration costs forecast to be $110 million, and capitalized exploration costs forecast to be $65 million. Just under half the budget ($75 million) will be invested in Africa with $55 million allocated to Tasiast. Work will focus on infill and mineral resource expansion drilling of the Greenschist zone at West Branch (130,000 metres) which remains open down-plunge, targeting extension of mineralization beneath the open pits (84,000 metres) and drilling district targets (100,000 metres) along the 70 km greenstone trend beyond the mine corridor.

At Kupol, the Company has budgeted $12 million to continue definition drilling at the North Extension target and to test new targets on the mine licenses and adjacent Kupol East and West exploration licenses. A total of 35,000 metres is planned for the year. Exploration will continue at Dvoinoye with the aim of expanding mineral resources beyond the current footprint of drilling. Approximately $7 million has been budgeted for 33,000 metres drilling.

Other key initiatives in 2011 include Fort Knox ($8 million), Chirano ($8 million) and White Gold ($7 million). Over 14,000 metres of drilling is planned at White Gold focusing on key targets at Golden Saddle, Arc and McKinnon. Continuation of district wide geochemical sampling and mapping is planned to identify new targets and to better understand the potential scale of the mineralized system.

p. 9 Kinross reports 2010 fourth quarter and year-end results www.kinross.com

Recent transactions

Sale of interest in Osisko

On December 13, 2010, the Company completed the sale of its 1.8% interest in Osisko Mining Corporation, consisting of approximately 6.8 million Osisko common shares, on an underwritten block trade basis, at a gross price of CDN$14.70 per share, for net proceeds of $97.5 million. The transaction resulted in a gain of $74.1 million.

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 13 of this news release.

In 2011, Kinross expects to produce approximately 2.5–2.6 million gold equivalent ounces, an increase of 10% compared to 2010 production. Cost of sales per gold equivalent ounce is expected to be in the range of $565 – 610 for the full-year 2011. The Company has prepared forecasts for 2011 production and average cost of sales on both a gold equivalent and by-product accounting basis, as summarized in the table below:

	Accounting basis	2011 (forecast)
Gold equivalent basis Production (gold equivalent ounces) 2.5-2.6 million Average cost of sales per gold equivalent ounce $565-610 By-product basis Gold ounces 2.3-2.4 million Silver ounces 10.9-11.3 million Average cost of sales per gold ounce $520-570

Material assumptions used to forecast 2011 cost of sales are: a gold price of $1,300 per ounce, a silver price of $24 per ounce, an oil price of $85 per barrel, and foreign exchange rates of 1.75 Brazilian reais to the U.S. dollar, 1.02 Canadian dollars to the U.S. dollar, 32 Russian roubles to the U.S. dollar, 500 Chilean pesos to the U.S. dollar, 1.45 Ghanaian cedi to the U.S. dollar and 275 Mauritanian ouguiya to the U.S. dollar. Taking into account existing currency and oil hedges, respectively, a 10% change in foreign currency exchange rates would be expected to result in an approximate $7 impact on our cost of sales per ounce⁶, a $10 per barrel change in the price of oil would be expected to result in an approximate $3 impact on our cost of sales per ounce, and a $100 change in the price of gold would be expected to result in an approximate $3 impact on our cost of sales per ounce as a result of a change in royalties.

Overall, production is expected to be positively impacted in 2011 by a full year of production at the Tasiast and Chirano mines and higher forecast South American production, offset by lower production in Russia and the U.S. due to a planned decline in grades. The 2011 forecast for cost of sales per gold equivalent ounce is expected to increase due to a decline in grades at our existing mines and higher consumable and labour costs.

The following table provides a summary of the 2011 production and cost of sales forecast by region:

6 Refers to all of the currencies in the countries where the Company has mining operations, fluctuating simultaneously by 10% in the same direction, either appreciating, or depreciating, taking into consideration the impact of hedging and the weighting of each currency within our consolidated cost structure.

p. 10 Kinross reports 2010 fourth quarter and year-end results www.kinross.com

			Percentage of total production7	Cost of sales ($ per Au equivalent oz)
	Region	Forecast 2011 production
		(gold equivalent oz)
South America 1,000,000-1,070,000 41% 585-650 North America 590,000-630,000 24% 625-685 West Africa (attributable) 440,000-500,000 18% 595-655 Russia (attributable) 435,000-455,000 17% 395-435 Total 2.5-2.6 million 100% 565-610

Capital expenditures for the full-year 2011 are forecast to total approximately $1.5 billion, including $70 million which was budgeted for 2010, but unspent, and carried over to 2011. Subsequent to the sale of half its interest in Cerro Casale, Kinross accounts for its remaining investment in the project under the equity method. As a result, the $90 million which the Company expects to spend on the project this year is excluded from the 2011 capital expenditure forecast. The following table provides a summary of the 2011 capital expenditure forecast:

	Region	Maintenance	Mine and processing	New projects ($ mm)	Total ($ mm)
		($ mm)	development
			($ mm)
South America 130 505 95 730 North America 10 155 - 165 West Africa 50 180 210 440 Russia 15 30 110 155 Corporate 10 - - 10 Total CAPEX 215 870 415 1,500

Maintenance includes $80 million for site infrastructure and $65 million for plant sustaining capital. Mine and processing development includes $280 million for processing facility improvements (including the third and fourth ball mills, desulphurization units, and flash flotation cells at Paracatu, the SART plant at Maricunga and the ADR plant at Tasiast), $210 million for capitalized mine development, $125 million for mine equipment, $130 million for tailings facilities, and $45 million for heap leach expansions.

New project capital expenditures include $210 million for Tasiast, $110 million for Dvoinoye, $60 million for Fruta del Norte, and $35 million for Lobo-Marte. Not included in the 2011 capital forecast is approximately $130 million in expected advance payments to suppliers for the Tasiast expansion project.

The 2011 forecast for exploration and business development expenses is approximately $146 million, of which $110 million is for exploration expenses. Capitalized exploration is forecast to be $65 million, for total 2011 forecast exploration expenditures of $175 million.

Other operating costs are forecast to be $25 million. General and administrative expense is forecast to be approximately $170 million, which includes approximately $20 million for additional resources related to newly acquired West African operations. General and administrative expense includes approximately $35 million relating to equity-based compensation. The Company’s tax rate in 2011 is forecast to be in the range of 34% to 39% and depreciation, depletion and amortization is forecast to be approximately $651 million.

As a result of gold forward purchase contracts entered into during the year and subsequent to December 31, the Company has de-designated 96% of Kupol gold forward sales contracts maturing in 2011 and 100% of such contracts maturing in 2012. As a result, Kinross expects the net impact of locked-in Kupol gold hedges to be a $155 million reduction in revenue in 2011. Kupol silver hedges are expected to reduce revenue by $40 million in 2011, based on a budgeted silver price of $24 per ounce.

7 The percentages are calculated based on the mid-point of regional 2011 forecast production.

p. 11 Kinross reports 2010 fourth quarter and year-end results www.kinross.com

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on Thursday, February 17, 2011 at 8:00 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – 1-800-319-4610 Outside of Canada & US – 1-604-638-5340

Replay (available up to 14 days after the call):

Canada & US toll-free – 1-800-319-6413; Passcode – 3310 followed by #.

Outside of Canada & US – 1-604-638-9010; Passcode – 3310 followed by #.

You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on our website at www.kinross.com.

This release should be read in conjunction with Kinross’ 2010 year-end Financial Statements and Management’s Discussion and Analysis report at www.kinross.com.

Kinross’ audited annual statements have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the statements free of charge upon request to the Company.

About Kinross Gold Corporation

Kinross is a Canadian-based gold mining company with mines and projects in Canada, the United States, Brazil, Chile, Ecuador, Russia, Ghana and Mauritania, employing approximately 7,000 people worldwide.

Kinross’ strategic focus is to maximize net asset value and cash flow per share through a four-point plan built on: delivering mine and financial performance; attracting and retaining the best people in the industry; achieving operating excellence through the “Kinross Way”; and delivering future value through profitable growth opportunities.

Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Media Contact

Steve Mitchell Vice-President, Corporate Communications phone: 416-365-2726 [email protected]

Investor Relations Contact

Erwyn Naidoo Vice-President, Investor Relations phone: 416-365-2744 [email protected]

p. 12 Kinross reports 2010 fourth quarter and year-end results www.kinross.com

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