K.TO · 2018-05-08 12:00:00

Kinross reports 2018 first-quarter results Significantly increased cash flow and reduced all-in sustaining cost per ounce year-over-year On track to meet production and cost guidance

Corporate Updates

Kinross reports 2018 first-quarter results

Significantly increased cash flow and reduced all-in sustaining cost per ounce year-over-year

On track to meet production and cost guidance

TORONTO, May 08, 2018 -- Kinross Gold Corporation (TSX:K) (NYSE:KGC) today announced its results for the first-quarter ended March 31, 2018.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks

and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 18 of this release. All dollar amounts are expressed in U.S.

dollars, unless otherwise noted.)

2018 first-quarter highlights:

• Production1: 653,937 gold equivalent ounces (Au eq. oz.), compared with 671,956 Au eq. oz. in Q1 2017.

• Revenue: $897.2 million, compared with $796.1 million in Q1 2017.

• Production cost of sales2: $658 per Au eq. oz., compared with $701 in Q1 2017.

• All-in sustaining cost2: $846 per Au eq. oz. sold, compared with $953 in Q1 2017. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis

was $835 in Q1 2018, compared with $945 in Q1 2017.

• Operating cash flow: $293.5 million, compared with $207.8 million in Q1 2017.

• Adjusted operating cash flow 2: $363.7 million, compared with $250.9 million in Q1 2017.

• Reported net earnings 3: net earnings of $106.1 million, or $0.09 per share, compared with net earnings of $134.6 million, or $0.11 per share, in Q1 2017.

• Adjusted net earnings 2,3: adjusted net earnings of $125.2 million, or $0.10 per share, compared with adjusted net earnings of $23.4 million, or $0.02 per

share, in Q1 2017.

• Organic projects and development opportunities:

◦ The Tasiast Phase One expansion is near completion, on schedule and on budget, and expected to achieve 12,000 t/d throughput by the end of June

2018. The Company is assessing the Government of Mauritania’s request to enter into mutually beneficial discussions respecting all of Kinross’

activities in Mauritania with a view to improving economic benefits to the country, including the potential impact on the Phase Two expansion.

◦ Construction of the Round Mountain Phase W project is progressing according to schedule, with engineering 90% complete and initial low-grade ore

expected in mid-2019.

◦ At the Bald Mountain Vantage Complex engineering is now 90% complete with commissioning of the heap leach pad and processing facilities

expected to commence in Q1 2019.

◦ In Russia, the Moroshka project located near Kupol remains on schedule and on budget, with mining of high grade ore expected to begin in the second

half of the year.

◦ The Fort Knox Gilmore project feasibility study in Alaska is on schedule for completion in June 2018.

◦ At the La Coipa Restart project, the Company expects to initiate a feasibility study at mid-year.

• Outlook unchanged: Kinross expects to produce 2.5 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. of $730 (+/- 5%) and all-in

sustaining cost of $975 (+/- 5%) per ounce sold on both a gold equivalent and by-product basis for 2018. Total capital expenditures are forecast to be

approximately $1,075 million (+/- 5%).

• Balance sheet strength: As of March 31, 2018, Kinross had cash and cash equivalents of $997.9 million and available credit of $1,566.5 million, for total

liquidity of approximately $2.6 billion, and no debt maturities until 2021. S&P Global Ratings upgraded Kinross’ credit rating to investment grade during the

quarter, noting the Company’s long track record of maintaining low leverage.

CEO Commentary

J. Paul Rollinson, President and CEO, made the following comments in relation to 2018 first-quarter results:

“We are pleased with the strong operational start to 2018, as our portfolio of mines performed well, achieving solid production and significantly lower all-in sustaining

costs compared with last quarter and Q1 2017. We generated strong cash flow and ended the quarter with approximately $1 billion of cash on the balance sheet,

relatively unchanged from year-end 2017.

“Our portfolio of development projects is progressing well. The Tasiast Phase One expansion is now near completion, on budget and on schedule to reach its 12,000

t/d throughput capacity by the end of June. The Company is assessing the Government of Mauritania’s request to enter into mutually beneficial discussions

respecting all of Kinross’ activities in Mauritania with a view to improving economic benefits to the country, including the potential impact on the Phase Two

expansion.

“Our Nevada projects at Round Mountain and Bald Mountain are continuing to proceed on schedule. In June, we expect to announce the feasibility study results for

the Fort Knox Gilmore project, an opportunity to potentially extend mine life at one of our best performing operations. In Chile, we expect to commence a feasibility

study for the La Coipa Restart project at mid-year. Finally, we also expect to begin mining high grade ore at the Moroshka satellite deposit near Kupol in the second

half of 2018.

“We continue to maintain our robust liquidity position, and with our strong commitment to deliver consistent results, we are firmly on track to meet our annual

production and cost guidance and are on plan with the development projects that will shape our future.”

Financial results

Summary of financial and operating results

Three months ended

March 31,

(in millions, except ounces, per share amounts, and per ounce amounts) 2018 2017

Operating Highlights

Total gold equivalent ounces(a)

Produced(c) 659,955 677,781

Sold(c) 674,661 652,516

Attributable gold equivalent ounces(a)

Produced(c) 653,937 671,956

Sold(c) 668,217 645,946

Financial Highlights

Metal sales $ 897.2 $ 796.1

Production cost of sales $ 444.6 $ 458.8

Depreciation, depletion and amortization $ 193.1 $ 217.5

Operating earnings $ 177.9 $ 48.6

Net earnings attributable to common shareholders $ 106.1 $ 134.6

Basic earnings per share attributable to common shareholders $ 0.09 $ 0.11

Diluted earnings per share attributable to common shareholders $ 0.08 $ 0.11

Adjusted net earnings attributable to common shareholders(b) $ 125.2 $ 23.4

Adjusted net earnings per share(b) $ 0.10 $ 0.02

Net cash flow provided from operating activities $ 293.5 $ 207.8

Adjusted operating cash flow(b) $ 363.7 $ 250.9

Average realized gold price per ounce(d) $ 1,330 $ 1,220

Consolidated production cost of sales per equivalent ounce(c) sold(b) $ 659 $ 703

Attributable(a) production cost of sales per equivalent ounce(c) sold(b) $ 658 $ 701

Attributable(a) production cost of sales per ounce sold on a by-product basis (b) $ 644 $ 686

Attributable(a) all-in sustaining cost per ounce sold on a by-product basis (b) $ 835 $ 945

Attributable(a) all-in sustaining cost per equivalent ounce(c) sold(b) $ 846 $ 953

Attributable(a) all-in cost per ounce sold on a by-product basis (b) $ 1,124 $ 1,101

Attributable(a) all-in cost per equivalent ounce(c) sold(b) $ 1,128 $ 1,104

(a) "Total" includes 100% of Chirano production. "Attributable" includes Kinross' share of Chirano (90%) production.

(b) The definition and reconciliation of these non-GAAP financial measures is included on page 13 to 17 of this news release.

(c) "Gold equivalent ounces" include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the

commodities for each period. The ratio for the first quarter of 2018 was 79.25:1 (first quarter of 2017 - 69.99:1).

(d) The definition of this non-GAAP financial measure is included on page 17 of this news release.

The following operating and financial results are based on first quarter 2018 gold equivalent production. Production and cost measures are on an attributable basis:

Production: Kinross produced 653,937 attributable Au eq. oz. in the first quarter of 2018, compared with 671,956 Au eq. oz. in the first quarter of 2017.

Production cost of sales: Production cost of sales per Au eq. oz. 2 decreased to $658 for the first quarter of 2018, compared with $701 for the first quarter of 2017.

Production cost of sales per Au oz. on a by-product basis 2 was $644 in Q1 2018, compared with $686 in Q1 2017, based on Q1 2018 attributable gold sales of

654,451 ounces and attributable silver sales of 1,091,061 ounces.

All-in sustaining cost: All-in sustaining cost per Au eq. oz. sold 2 decreased to a record low of $846 in Q1 2018, compared with $953 in Q1 2017. All-in sustaining

cost per Au oz. sold on a by-product basis 2 decreased to $835 in Q1 2018, compared with $945 in Q1 2017.

Revenue : Revenue from metal sales increased 13% to $897.2 million in the first quarter of 2018, compared with $796.1 million during the same period in 2017, due

to an increase in gold equivalent ounces sold and a higher realized gold price.

Average realized gold price 4: The average realized gold price in Q1 2018 increased to $1,330 per ounce, compared with $1,220 per ounce in Q1 2017.

Margins: Kinross’ attributable margin per Au eq. oz. sold 5 was $672 per Au eq. oz. for the first quarter of 2018, compared with the Q1 2017 margin of $519 per Au

eq. oz.

Operating cash flow : Adjusted operating cash flow2 increased by 45% to $363.7 million for the first quarter of 2018, compared with $250.9 million for Q1 2017.

Net operating cash flow was $293.5 million for the first quarter of 2018, compared with $207.8 million for Q1 2017.

Earnings: Adjusted net earnings 2,3 increased to $125.2 million, or $0.10 per share, for Q1 2018, compared with adjusted net earnings of $23.4 million, or $0.02 per

share, for Q1 2017. The increase was mainly due to higher margins and a decrease in depreciation, depletion and amortization.

Reported net earnings3 was $106.1 million, or $0.09 per share, for Q1 2018, compared with earnings of $134.6 million, or $0.11 per share, in Q1 2017.

Capital expenditures : Capital expenditures increased to $246.9 million for Q1 2018, compared with $178.9 million for the same period last year, mainly due to

increased spending at Tasiast and Round Mountain, partially offset by lower spending at Fort Knox, Paracatu and Chirano.

Operating results

Mine-by-mine summaries for 2018 first-quarter operating results may be found on pages eight and 12 of this news release. Highlights include the following:

Americas

At Fort Knox, production decreased compared with the previous quarter and year-over-year mainly due a decrease in grades. In addition, the lower production relative

to Q4 2017 was due to the seasonal slowdown resulting in fewer ounces recovered from the heap leach. Cost of sales per ounce sold was significantly lower quarter-

over-quarter and year-over-year primarily as a result of the timing of ounces processed through the mill. In late March, the Fort Knox pit experienced a minor pit wall

slide, which, along with anticipated lower grades, are expected to have a slight impact on the mine’s production and costs for the remainder of the year.

At Round Mountain, production was in line with the previous quarter and lower year-over-year mainly due to lower recoveries from the heap leach pad, partially offset

by higher mill production due to an increase in mill grades and recoveries. Cost of sales per ounce sold was lower quarter-over-quarter and year-over-year mainly due

to a decrease in operating waste mined and higher mill grades.

Bald Mountain continued its strong performance during the quarter. While production decreased compared with Q4 2017, mainly due to lower grades, it increased

significantly year-over-year due to the timing of ounces recovered from the heap leach pads as more tonnes were placed on the pads in 2017. Cost of sales per ounce

sold was largely in line versus last quarter and significantly lower year-over-year primarily due to lower operating waste mined and an increase in gold produced from

the heap leach.

Paracatu performed well in Q1 2018, with production increasing significantly compared with the previous quarter due to the temporary curtailment of mining during

Q4 2017 as a result of lower than average rainfall in the area. Production also increased compared with Q1 2017 primarily due to increases in ore processed,

recoveries and timing of ounces processed through the mill. The higher production contributed to the lower cost of sales per ounce sold quarter-over-quarter and year-

over-year. Lower contractor as well as favourable foreign exchange movements also led to the year-over-year decrease in cost of sales per ounce sold.

At Maricunga , gold production was better than expected, as rinsing of heap materials placed on the pads prior to the suspension of mining activities continued

during the quarter. Cost of sales per ounce sold increased compared with Q4 2017 largely as a result of less ounces produced from the heap leach. Cost of sales per

ounce sold increased compared with Q4 2017 mainly as a result of the timing of ounces recovered.

Russia

At Kupol and Dvoinoye , production decreased compared with the previous quarter and Q1 2017 mainly as a result of the planned mining of lower grade ore. Grades

are expected to remain at around this level for the remainder of the year. Cost of sales per ounce sold was largely in line with the previous quarter and increased

compared with Q1 2017 mainly as a result of lower grades and unfavourable foreign exchange movements.

West Africa

At Tasiast, production was largely in line with the previous quarter and decreased year-over-year mainly as a result of lower mill grades. Cost of sales per ounce sold

was largely in line compared with the previous quarter and higher compared with Q1 2017 mainly due to lower grades and an increase in operating waste mined.

At Chirano, production was slightly lower quarter-over-quarter mainly due to a decrease in grades and largely in line with Q1 2017. Cost of sales per ounce sold

increased compared with Q4 2017 mainly due to lower grades, and decreased year-over-year primarily due to the completion of open pit mining in Q2 2017 and lower

overhead.

Organic development projects and opportunities

Tasiast two-phased expansion

The Tasiast Phase One project is on schedule and on budget, and is now near completion and in the final stages of development. The plant remains on track to

achieve a throughput capacity of 12,000 t/d by the end of June, with the mine also on track to achieve 2018 gold production estimates as contemplated in the project

feasibility study.

The tailings storage facility, power supply upgrades and several ancillary facilities have been commissioned successfully and handed over to the operation team. The

primary crusher is in advanced stages of commissioning and has been run at its design throughput. Construction is complete for the new components of the CIL

plant, including the ball mill cyclones, additional leach tanks, elution circuit and intensive leach reactor. These new elements have been successfully tied into the

existing mill, and commissioning is progressing well.

The SAG mill is 97% complete and while it is being commissioned, a by-pass circuit, using the new primary crusher and CIL plant in conjunction with the secondary

crushers, is being ramped up on a temporary basis to achieve the 12,000 t/d throughput capacity and 2018 gold production estimates as contemplated in the

feasibility study. During initial test runs in the past week, the plant reached throughput of 12,000 t/d. In addition, using the new primary crusher and existing crushers,

a cumulative total of approximately 50,000 tonnes of ore have been pre-crushed and await processing through the CIL plant.

Click here for video highlighting the Tasiast Phase One development: https://youtu.be/1oMQYTdw2iE

As previously disclosed, in 2017 a Mauritanian subsidiary of Kinross, Société d’Extraction de Tamaya S.A. (“SETSA”), filed an application to convert the Tasiast Sud

exploration permit into an exploitation permit. This conversion is necessary to allow exploitation of Tasiast Sud. SETSA was recently informed by the Minister of

Petroleum, Energy and Mines (“Minister”) that its conversion application has been rejected for failure to meet feasibility criteria. The Company disagrees with this

decision and believes the decision lacks legal justification and that all requirements for conversion have been met. The Company requested reconsideration of the

decision and has been negotiating with the Government of the Islamic Republic of Mauritania (“Government”) on this matter to find a mutually acceptable resolution.

Earlier today, following a May 4, 2018 meeting with the Minister, SETSA received a letter from the Government reaffirming its earlier rejection of the Tasiast Sud

conversion application and stating a desire to enter into mutually beneficial discussions with respect to all of the Company’s activities in Mauritania. The Company

understands the Government’s position to be that any discussions are to be initiated by a proposal from Kinross that would provide greater overall economic benefits

to the country. Kinross is currently assessing the situation, including the potential impact of the request on the Phase Two expansion.

Round Mountain Phase W

The Round Mountain Phase W project continues to progress on schedule, with initial low grade Phase W ore expected to be encountered in mid-2019. Pre-grading

of the heap leach pad has now commenced, along with earthworks in the new infrastructure area. The commissioning of two new electric rope shovels has been

completed and stripping is progressing on schedule. Detailed engineering is now approximately 90% complete and procurement and contracting are well underway.

Bald Mountain Vantage Complex

The Bald Mountain Vantage Complex project is proceeding on schedule, with commissioning for the heap leach pad and processing facilities expected to

commence in Q1 2019. Earthworks are well underway and engineering is now approximately 90% complete. The majority of procurement packages and construction

contracts have been awarded and all major permits have now been received.

Russia satellite deposits

Development of the Russian satellite deposits continues to progress well, with development of the twin declines at the Moroshka project continuing as planned.

Mining of high grade ore at Moroshka, which is located approximately four kilometres east of Kupol, is expected to commence in the second half of the year. At the

Dvoinoye Zone 1 deposit, which was added to estimated mineral reserve and resource estimates at year-end 2017, mine development has commenced, including

earthworks and construction of the portal entrances.

Fort Knox Gilmore project

At the Fort Knox Gilmore project, feasibility study activities are progressing as planned and the Company is expected to announce results of the completed study

in June. The feasibility study is contemplating a multi-phase layback of the Fort Knox pit and the construction of a new heap leach pad. Kinross gained mineral rights

to the adjacent Gilmore land in December 2017, which resulted in a net 1.8 million ounce addition to measured and indicated resource estimates.

La Coipa Restart project

The Company is evaluating the potential for a return to long-term production in Chile, which includes the La Coipa Restart project and the Lobo Marte project,

which is located approximately 80 kilometres from La Coipa. At the La Coipa Restart project, which includes the Phase 7 and Puren deposits, the Company

completed the previously disclosed transaction to acquire the remaining 50% interest in the Phase 7 deposit on March 19, 2018. The Company now has the Phase 7

mining rights contemplated in the project PFS completed in 2015 and fully owns the Phase 7 deposit. A feasibility study is expected to be initiated for the La Coipa

Restart at mid-year. Permitting has progressed, and the remaining two sectoral permits are expected in the second half of the year.

The Company also expects to initiate a scoping study for Lobo Marte at mid-year to assess the potential for a production start at the end of the La Coipa Restart

mine life. Lobo Marte has more than 7 million Au oz. of estimated measured and indicated mineral resources with a grade of 1.2 g/t. The parallel studies are

expected to determine the degree to which resources such as personnel, water, energy and capital equipment can be shared and leveraged for synergies and

efficiencies between the two potential projects.

Balance sheet and financial flexibility

As of March 31, 2018, Kinross had cash and cash equivalents of $997.9 million, compared with $1,025.8 million at December 31, 2017. The Company also had

available credit of $1,566.5 million, for total liquidity of approximately $2.6 billion, and no debt maturities until 2021.

During the first quarter, S&P Global Ratings upgraded Kinross’ credit rating to investment grade, noting the Company’s long track record of maintaining low leverage,

along with its lower cash costs, strong liquidity and meaningful growth opportunities.

With Tasiast Phase One development nearing completion, the Company remains well positioned to fund its pipeline of promising development projects.

Outlook

The following section of the news release represents forward-looking information and users are cautioned that actual results may vary. We refer to the risks and

assumptions contained in the Cautionary Statement on Forward-Looking Information on page 18 of this news release.

As previously announced on February 14, 2018, Kinross expects to produce 2.5 million Au eq. oz. (+/- 5%) for the year, and be at or slightly above the same level of

production for 2019 and 2020.

The Company expects production cost of sales per Au eq. oz. to be $730 (+/- 5%) and all-in sustaining cost to be $975 (+/- 5%) per ounce sold on both a gold

equivalent and by-product basis for the year. Kinross expects production cost of sales per Au eq. oz. to decline slightly in 2019 and 2020 as lower cost production

comes online.

Total capital expenditures are forecast to be approximately $1,075 million (+/- 5%) for the year, which include sustaining capital of $355 million and non-sustaining

capital of approximately $680 million to advance the Company’s development projects.

Acquisition of power plants in Brazil

On February 14, 2018, Kinross Brasil Mineração, a subsidiary of the Company, signed an agreement to acquire two hydroelectric power plants in Brazil from a

subsidiary of Gerdau SA for $257.0 million6. The two plants are expected to secure a long ‐term supply of power and lower production costs over the life of the mine at

Paracatu. The transaction has been approved by the Brazilian anti-trust regulatory authority and is expected to close in Q3 2018.

Conference call details

In connection with the release, Kinross will hold a conference call and audio webcast on Wednesday, May 9, 2018 at 7:45 a.m. ET. to discuss the results, followed

by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – (866) 393-4306; Conference ID: 4370519

Outside of Canada & US – +1 (734) 385-2616; Conference ID: 4370519

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

Canada & US toll-free – (855) 859-2056; Conference ID: 4370519

Outside of Canada & US – +1 (404) 537-3406; Conference ID: 4370519

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

www.kinross.com.

Kinross’ Annual and Special Meeting of Shareholders will also be held on Wednesday, May 9, 2018 at 10:00 a.m. ET at the Glenn Gould Studio, 250 Front Street

West, Toronto, Ontario, Canada. A live audio webcast (listen-only mode) of the meeting will be available at www.kinross.com and will also be archived for later

access.

This news release should be read in conjunction with Kinross’ 2018 first-quarter unaudited Financial Statements and Management’s Discussion and Analysis report

at www.kinross.com. Kinross’ 2018 first-quarter unaudited Financial Statements and Management’s Discussion and Analysis have been filed with Canadian

securities regulators (available at www.sedar.com) and furnished to the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders

may obtain a copy of the financial statements free of charge upon request to the Company.

About Kinross Gold Corporation

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Kinross

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

_______________________________

1 Unless otherwise stated, production figures in this news release are based on Kinross’ 90% share of Chirano production.

2 These figures are non-GAAP financial measures and are defined and reconciled on pages 13 to 17 of this news release.

3 Net earnings/loss figures in this release represent “net earnings (loss) from continuing operations attributable to common shareholders”.

4 Average realized gold price is a non-GAAP financial measure and is defined as gold metal sales divided by the total number of gold ounces sold.

5 Attributable margin per equivalent ounce sold is a non-GAAP financial measure defined as “average realized gold price per ounce” less “attributable production

cost of sales per gold equivalent ounce sold.”

6 Assumes foreign exchange rate of 3.25 Brazilian reais to the U.S. dollar.

Review of operations

Three months ended March 31, Gold equivalent ounces

Produced Sold

Production cost of sales

($millions)

Production cost of

sales/equivalent ounce sold

2018 2017 2018 2017 2018 2017 2018 2017

Fort Knox 79,928 93,038 79,611 94,741 $ 42.2 $ 58.5 $ 530 $ 617

Round Mountain 97,083 102,749 97,781 104,098 66.6 75.5 681 725

Bald Mountain 93,440 47,077 98,142 41,647 46.1 33.8 470 812

Kettle River - Buckhorn - 24,566 927 24,895 - 13.7 - 550

Paracatu 128,200 108,096 128,279 103,276 115.9 97.9 903 948

Maricunga 22,166 36,001 22,354 8,571 15.5 3.0 693 350

Americas Total 420,817 411,527 427,094 377,228 286.3 282.4 670 749

Kupol 120,181 143,378 122,624 143,481 64.6 71.8 527 500

Russia Total 120,181 143,378 122,624 143,481 64.6 71.8 527 500

Tasiast 58,778 64,623 60,503 66,112 46.8 47.0 774 711

Chirano (100%) 60,179 58,253 64,440 65,695 46.9 57.6 728 877

West Africa Total 118,957 122,876 124,943 131,807 93.7 104.6 750 794

Operations Total 659,955 677,781 674,661 652,516 444.6 458.8 659 703

Less Chirano non-controlling

interest (10%) (6,018) (5,825) (6,444) (6,570) (4.7) (5.8)

Attributable Total 653,937 671,956 668,217 645,946 $ 439.9 $ 453.0 $ 658 $ 701

Consolidated balance sheets

(unaudited expressed in millions of United States dollars, except share amounts)

As at

March 31, December 31,

2018 2017

Assets

Current assets

Cash and cash equivalents $ 997.9 $ 1,025.8

Restricted cash 12.8 12.1

Accounts receivable and other assets 92.9 91.3

Current income tax recoverable 42.0 43.9

Inventories 1,093.9 1,094.3

Unrealized fair value of derivative assets 16.3 17.0

2,255.8 2,284.4

Non-current assets

Property, plant and equipment 4,986.8 4,887.2

Goodwill 162.7 162.7

Long-term investments 165.6 188.0

Investments in joint ventures 23.6 23.7

Unrealized fair value of derivative assets 5.5 3.9

Other long-term assets 600.4 574.0

Deferred tax assets 31.1 33.3

Total assets $ 8,231.5 $ 8,157.2

Liabilities

Current liabilities

Accounts payable and accrued liabilities $ 403.6 $ 482.6

Current income tax payable 52.5 35.1

Current portion of provisions 54.2 66.5

Current portion of unrealized fair value of derivative liabilities 5.4 1.1

Deferred payment obligation 30.0 -

545.7 585.3

Non-current liabilities

Long-term debt 1,733.2 1,732.6

Provisions 836.4 830.5

Other long-term liabilities 148.8 134.0

Deferred tax liabilities 264.5 255.6

Total liabilities 3,528.6 3,538.0

Equity

Common shareholders' equity

Common share capital $ 14,912.5 $ 14,902.5

Contributed surplus 230.6 240.7

Accumulated deficit (10,418.3) (10,580.7)

Accumulated other comprehensive income (loss) (57.6) 21.1

Total common shareholders' equity 4,667.2 4,583.6

Non-controlling interest 35.7 35.6

Total equity 4,702.9 4,619.2

Total liabilities and equity $ 8,231.5 $ 8,157.2

Common shares

Authorized Unlimited Unlimited

Issued and outstanding 1,249,941,828 1,247,003,940

Consolidated statements of operations

(unaudited expressed in millions of United States dollars, except share and per share amounts)

Three months ended

March 31, March 31,

2018 2017

Revenue

Metal sales $ 897.2 $ 796.1

Cost of sales

Production cost of sales 444.6 458.8

Depreciation, depletion and amortization 193.1 217.5

Total cost of sales 637.7 676.3

Gross profit 259.5 119.8

Other operating expense 25.4 15.0

Exploration and business development 20.5 21.0

General and administrative 35.7 35.2

Operating earnings 177.9 48.6

Other income (expense) - net 5.9 114.0

Equity in losses of joint ventures (0.1) (0.4)

Finance income 3.4 3.5

Finance expense (26.9) (29.0)

Earnings before tax 160.2 136.7

Income tax expense - net (54.0) (2.9)

Net earnings $ 106.2 $ 133.8

Net earnings (loss) attributable to:

Non-controlling interest $ 0.1 $ (0.8)

Common shareholders $ 106.1 $ 134.6

Earnings per share attributable to common shareholders

Basic $ 0.09 $ 0.11

Diluted $ 0.08 $ 0.11

Weighted average number of common shares outstanding (millions)

Basic 1,247.5 1,245.6

Diluted 1,258.3 1,255.1

Consolidated statements of cash flows

(unaudited expressed in millions of United States dollars)

Three months ended

March 31, March 31,

2018 2017

Net inflow (outflow) of cash related to the following activities:

Operating:

Net earnings $ 106.2 $ 133.8

Adjustments to reconcile net earnings to net cash provided from

operating activities:

Depreciation, depletion and amortization 193.1 217.5

Reversal of impairment charges - (97.0)

Equity in losses of joint ventures 0.1 0.4

Share-based compensation expense 4.0 3.3

Finance expense 26.9 29.0

Deferred tax expense (recovery) 11.4 (13.1)

Foreign exchange losses (gains) and other 22.0 (23.0)

Changes in operating assets and liabilities:

Accounts receivable and other assets (2.4) 50.2

Inventories (23.0) 5.7

Accounts payable and accrued liabilities (23.2) (74.8)

Cash flow provided from operating activities 315.1 232.0

Income taxes paid (21.6) (24.2)

Net cash flow provided from operating activities 293.5 207.8

Investing:

Additions to property, plant and equipment (246.9) (178.9)

Acquisition (35.1) -

Net additions to long-term investments and other assets (14.3) (9.6)

Net proceeds from the sale of property, plant and equipment 3.0 1.1

Increase in restricted cash (0.7) (0.8)

Interest received and other 2.6 2.1

Net cash flow used in investing activities (291.4) (186.1)

Financing:

Issuance of common shares on exercise of options 0.4 0.1

Interest paid (30.0) (31.7)

Net cash flow used in financing activities (29.6) (31.6)

Effect of exchange rate changes on cash and cash equivalents (0.4) 1.9

Decrease in cash and cash equivalents (27.9) (8.0)

Cash and cash equivalents, beginning of period 1,025.8 827.0

Cash and cash equivalents, end of period $ 997.9 $ 819.0

Operating

Summary

Mine Period Ownership

Tonnes

Ore

Mined

(1)

Ore

Processed

(Milled) (1)

Ore

Processed

(Heap

Leach) (1)

Grade

(Mill)

Grade

(Heap

Leach)

Recovery

(2)

Gold Eq

Production

(5)

Gold Eq

Sales (5)

Production

cost of

sales

Production

cost of

sales/oz Cap Ex (7) DD&A

(%) ('000

tonnes)

('000

tonnes)

('000

tonnes) (g/t) (g/t) (%) (ounces) (ounces) ($

millions) ($/ounce) ($

millions) ($

millions)

Americas

Fort Knox

2018 100 9,075 3,110 5,839 0.70 0.20 82% 79,928 79,611$ 42.2$ 530$ 9.6$ 23.0

2017 100 8,276 3,239 4,464 0.96 0.23 82% 95,182 94,724 58.7 620 27.3 23.6

2017 100 7,490 3,228 6,088 0.78 0.26 81% 101,047 101,077 64.8 641 25.4 20.5

2017 100 5,353 3,069 5,830 0.86 0.26 84% 91,848 91,237 57.9 635 21.4 20.0

2017 100 5,242 2,933 3,885 0.75 0.23 83% 93,038 94,741 58.5 617 28.0 22.5

Round

Mountain

2018 100 7,893 832 8,175 1.62 0.28 86% 97,083 97,781$ 66.6$ 681$ 26.4$ 14.8

2017 100 5,429 864 4,201 1.46 0.46 84% 98,249 104,198 81.6 783 66.2 15.3

2017 100 6,906 865 5,177 1.73 0.50 81% 120,743 120,944 75.7 626 14.7 34.9

2017 100 8,136 979 5,685 1.35 0.52 78% 115,191 108,811 69.7 641 8.6 28.3

2017 100 5,947 951 4,548 1.14 0.51 82% 102,749 104,098 75.5 725 6.3 28.9

Bald

Mountain

(8)

2018 100 5,333 - 5,333 - 0.38 nm 93,440 98,142$ 46.1$ 470$ 20.4$ 27.2

2017 100 5,691 - 5,691 - 0.72 nm 105,080 99,363 47.0 473 46.6 28.6

2017 100 7,090 - 7,105 - 1.09 nm 80,677 67,598 46.7 691 12.6 24.6

2017 100 5,174 - 5,159 - 0.58 nm 49,881 54,308 41.4 762 15.6 16.2

2017 100 3,660 - 3,660 - 0.69 nm 47,077 41,647 33.8 812 15.7 14.1

Kettle

River-

Buckhorn

2018 100 - - - - - - - 927$ - $ - $ - $ -

2017 100 - - - - - - 3,906 3,949 0.4 101 - -

2017 100 - 43 - 4.36 - 67% 17,132 17,385 10.3 592 - 0.1

2017 100 91 95 - 11.45 - 90% 30,966 30,858 12.4 402 - 0.1

2017 100 98 96 - 9.95 - 93% 24,566 24,895 13.7 550 - 0.4

Paracatu

2018 100 11,988 13,041 - 0.36 - 77% 128,200 128,279$ 115.9$ 903$ 15.5$ 34.2

2017 100 6,895 8,331 - 0.40 - 75% 66,023 62,843 59.8 952 32.5 26.2

2017 100 227 4,067 - 0.42 - 69% 46,971 53,076 53.0 999 32.6 30.6

2017 100 10,422 13,333 - 0.43 - 77% 138,869 137,056 99.5 726 31.4 36.7

2017 100 10,226 11,892 - 0.38 - 73% 108,096 103,276 97.9 948 25.9 33.5

Maricunga

(8)

2018 100 - - - - - nm 22,166 22,354$ 15.5$ 693$ -$ 1.5

2017 100 - - - - - nm 19,039 11,201 6.9 616 1.3 1.1

2017 100 - - - - - nm 20,463 14,129 8.1 573 - 1.7

2017 100 - - - - - nm 15,624 7,415 1.9 256 0.1 0.6

2017 100 - - - - - nm 36,001 8,571 3.0 350 0.1 1.2

Russia Kupol (3)(4)

(6)

2018 100 412 427 - 8.58 - 95% 120,181 122,624$ 64.6$ 527$ 10.8$ 38.4

2017 100 487 425 - 10.38 - 95% 145,301 141,518 73.8 521 19.1 43.3

2017 100 491 451 - 9.69 - 95% 145,759 142,821 74.8 524 14.4 41.4

2017 100 489 440 - 9.78 - 95% 146,013 149,187 80.5 540 15.4 44.5

2017 100 448 417 - 10.23 - 95% 143,378 143,481 71.8 500 5.4 55.0

West

Africa

Tasiast

2018 100 1,786 736 279 2.26 0.36 93% 58,778 60,503$ 46.8$ 774$ 157.8$ 19.0

2017 100 2,534 807 318 2.28 0.69 92% 60,274 54,993 43.0 782 119.3 17.8

2017 100 2,139 764 576 2.42 0.67 93% 62,065 62,448 46.1 738 93.8 16.7

2017 100 975 728 87 2.35 0.59 93% 56,278 52,703 42.1 799 95.2 18.8

2017 100 1,037 746 75 2.41 0.50 92% 64,623 66,112 47.0 711 71.1 25.3

Chirano -

100%

2018 90 523 885 - 2.34 - 92% 60,179 64,440$ 46.9$ 728$ 6.4$ 33.3

2017 90 496 878 - 2.52 - 92% 66,285 61,973 43.3 699 10.9 32.5

2017 90 456 886 - 2.51 - 92% 65,707 65,757 48.0 730 7.7 34.8

2017 90 613 822 - 2.48 - 92% 55,782 57,787 51.2 886 10.1 36.8

2017 90 845 852 - 2.25 - 92% 58,253 65,695 57.6 877 17.9 34.5

Chirano -

90%

2018 90 523 885 - 2.34 - 92% 54,161 57,996$ 42.2$ 728$ 5.8$ 30.0

2017 90 496 878 - 2.52 - 92% 59,656 55,776 39.0 699 9.8 29.3

2017 90 456 886 - 2.51 - 92% 59,136 59,181 43.2 730 6.9 31.3

2017 90 613 822 - 2.48 - 92% 50,204 52,009 46.1 886 9.1 33.1

2017 90 845 852 - 2.25 - 92% 52,428 59,125 51.8 877 16.1 31.1

(1) Tonnes of ore mined and processed represent 100% Kinross for all periods presented.

(2) Due to the nature of heap leach operations, recovery rates at Maricunga and Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates

at Fort Knox, Round Mountain and Tasiast represent mill recovery only.

(3) The Kupol segment includes the Kupol and Dvoinoye mines.

(4) Kupol silver grade and recovery were as follows: Q1 2018: 69.35 g/t, 81.0%; Q4 2017: 81.85 g/t, 82.8%; Q3 2017: 81.50 g/t, 85.8%; Q2 2017: 78.20 g/t, 84.7%;

Q1 2017: 83.03 g/t, 85.4%.

(5) 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 ratios for the quarters presented are as follows: Q1 2018: 79.25:1; Q4 2017: 76.22:1; Q3 2017: 75.91:1; Q2 2017: 73.01:1; Q1

2017: 69.99:1.

(6) Dvoinoye ore processed and grade were as follows: Q1 2018: 103,369, 10.13 g/t; Q4 2017: 127,671 tonnes, 13.44 g/t; Q3 2017: 111,330 tonnes, 15.37 g/t; Q2

2017: 111,664 tonnes, 15.79 g/t; Q1 2017: 120,255 tonnes, 14.67 g/t.

(7) Capital expenditures are presented on a cash basis, consistent with the statement of cash flows.

(8) "nm" means not meaningful.

Reconciliation of non-GAAP financial measures

The Company has included certain non-GAAP financial measures in this document. These measures are not defined under IFRS and should not be considered in

isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to

evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a

substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other

issuers.

Adjusted net earnings attributable to common shareholders and adjusted net earnings per share are non-GAAP measures which determine the performance of the

Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the

impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges

(reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses.

Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are

not necessarily indicative of future operating results. Management believes that these measures, which are used internally to assess performance and in planning

and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically

not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures are not necessarily indicative of net earnings and

earnings per share measures as determined under IFRS.

The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:

Adjusted Net Earnings

(in millions, except per share amounts) Three months ended

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